Dallas Real Estate Market Reports

Dallas Office Market

Annual full-service asking rental rates increased by 1.7% year over year to $31.20/SF, reaching a new historical high. Occupancy increased this quarter as new supply remain muted, resulting in overall vacancy rates ticking downwards for the first time since mid-2021 by 20 basis points quarter over quarter to 24.5%. Under-construction pipeline drops to 2.3 MSF in progress, reflecting the lowest quarterly construction activity since the first half of 2013. Total leasing activity closed the quarter at 4.0 MSF, reflecting flattening quarterly leasing activity bolstered by smaller deals signed. Leases signed averaged 4,735 SF per deal, with average deal size decreasing by 10.8% quarter over quarter.

Dallas Industrial Market

The market realized 6.7 MSF of positive absorption in the first quarter of 2025, with quarterly demand outpacing supply for the first time since the beginning of 2023. Overall rental rates declined by 3.0% year over year to $9.35/SF, reflecting a second consecutive quarterly decline. Construction pipeline recorded 2.0 MSF of deliveries for the quarter, while the under-construction pipeline increased for the second consecutive quarter to 26.1 MSF but continued to remain low. As of the end of the first quarter of 2025, vacancy remained unchanged year over year at 9.2% but decreased for the first time since 2022 due to demand outpacing supply.