Dallas Office Market
| Average Asking Rent (Price/SF) | $28.11 |
| Vacancy Rate (%) | 23.7% |
| Net Absorption (SF) | 168,965 |
The Dallas-Fort Worth office market started 2022 with challenging fundamentals, left over from the height of the pandemic. Vacancy in the DFW market is among the highest in the nation, just behind Houston. In the first quarter of 2022, occupiers gave back nearly the same amount of space as they occupied, leading to only 168,965 square feet of positive absorption. To keep pace with inflation, landlords are keeping rental rates elevated, but overall rents in the DFW market remain lower than in other Sun Belt markets. Corporate relocations, which have been plentiful over the past several years, are expected to continue through 2022 but could come at a slower pace. Despite its high vacancy and diminished demand, the Dallas-Fort Worth market remains attractive to investors, as the market ranked #1 in overall CRE investment in 2021.
Dallas Industrial Market
| Average Asking Rent (Price/SF) | $7.27 |
| Vacancy Rate (%) | 5.8% |
| Net Absorption (SF) | 3,390,927 |
The strength of the Dallas-Fort Worth industrial market carried in to the first quarter of 2022 as several fundamentals in the market reached all-time highs. In the first quarter of 2022, absorption dropped significantly to 3.3 million square feet from 11.9 million square feet in the prior quarter. Absorption is down 70.0% from where it was one year ago but should not be a cause for concern as the market tracked its highest annual absorption totals on record in 2021. Net absorption failed to outpace completions in the first quarter of 2022, as 7.3 million square feet of space delivered across the market. Roughly 70% of demand occurred in the North Fort Worth submarket, which accounted for 2.4 million square feet of the market’s total absorption for the quarter. Overall vacancy in the market rose slightly to 5.8%, an increase of 40 basis points quarter-over-quarter. Vacancy is still trending downward and is 120 basis points lower than it was at the same time last year. Rental rates have surpassed $7.00/SF for the first time, ending the quarter at $7.27/SF overall. Rental rates have been steadily increasing since before the pandemic but have jumped up 6.3% in the last year alone and 13.7% since the start of 2020.
Download Dallas Industrial Market Report 1Q22