Dallas-Fort Worth Market Update: Investments Cool Down

After a strong August, when 2,802,943 square feet of office space changed hands, transaction activity cooled down across Dallas-Fort Worth’s office market in September. According to CommercialEdge data, 14 properties totaling 1,617,148 square feet traded in the Metroplex that month, marking a 42.3 percent drop in traded square footage month-over-month. However, the index was nearly three times higher than the one recorded in September 2020, when 542,156 square feet had sold in the metro.

The metro’s transaction volume year-to-date amounted to an estimate $2 billion at an average price of $235 per square foot, 25.5 percent lower than the national average of $295 per square foot. The figures are nearly identical to the ones recorded in the same period of 2020, when sales added up to $2 billion at an average $235.8 per square foot.

Most transactions pertained to traditional and flex office space, with only one deal involving a medical office building. Once again, investors prioritized Class B/C properties, with only two Class A/A+ assets in the transaction mix. Suburban assets made for 78.6 percent of the total number of investments.

The largest property that traded in September was a four-building, 511,047-square-foot office campus in the metro’s Las Colinas submarket. Menlo Equities purchased the Class A asset in Irving from the joint venture of Partners Group and Accesso. The campus also features a 9-acre parcel of developable land that is already approved for the construction of additional office space.

CommercialEdge covers 8M+ property records in the United States. View the latest CommercialEdge national monthly office report here. We included properties of 25,000+ square feet in our research.