Dallas Real Estate Market Reports

Dallas Office Market

Annual full-service asking rental rates increased by 3.2% quarter over quarter and 4.8% year over year to $31.95/SF, setting a record high. Vacancy improved by 20 basis points quarter over quarter in the third quarter of 2025 to 24.3%, the lowest level reported since the second quarter of 2024, and the third consecutive quarter without an increase. The under-construction pipeline fell to 1.9 MSF following the delivery of 23Springs, marking the lowest level since the first quarter of 2013. Leases signed were larger averaging, 5,420 SF per deal - the highest since the fourth quarter of 2024 – and the 20.2% quarter-over-quarter increase in average deal size signals renewed demand for larger spaces.

Dallas Industrial Market

The market realized 4.2 MSF of positive absorption in the third quarter of 2025, with quarterly demand outpacing supply for just the second time since the beginning of 2023. Overall rental rates have declined by 2.5% from the historical high set in mid-2024 to $9.63/SF. Year over year growth also turned negative, declining by 2.2%, marking the first time since 2017 that annual rents have contracted. The construction pipeline increased by 4.3% quarter over quarter and totaled 34.5 MSF at the end of the third quarter of 2025, marking the fourth consecutive quarter that the amount of space under construction has increased. Additionally, 38.9% of space currently under construction has been preleased, indicating that tenants are aiming to secure space early on to avoid shortages of modern, high-quality product. As of the third quarter of 2025, demand in the Dallas-Fort Worth industrial market is outpacing supply. Should this trend persist through year-end, it would mark the first time since 2021 that annual demand has exceeded new deliveries. This tightening balance between supply and demand has pushed the vacancy rate down to 9.1%, a decline of 10 basis points quarter over quarter and 40 basis points year over year.