Dallas-Fort Worth Market Update: Signs of Improvement

Dallas-Fort Worth’s office sector started to show signs of recovery in May as the vacancy rate registered the first significant drop this year after a slow and steady buildup. According to CommercialEdge data, the vacancy index reached 18.7 percent, a 50-basis-point decrease month-over-month, and 310 basis points higher than the national average rate of 15.6 percent.

When compared to similar markets, the Metroplex was 110 basis points behind Austin, a metro with a 16.7 percent vacancy rate as of May, while Atlanta had an 19.6 percent vacancy rate.

The metro’s largest submarket, Las Colinas, fared well in terms of office leasing, having recorded a vacancy rate of 17.6 percent, 110 basis points lower than the Metroplex. One of the area’s deals that closed in May pertained to flexible office spaces: Building on an anticipated increased demand, Bridge Commercial Real Estate launched a flex office program that included leasing space at the 243,109-square-foot Tower 1320 in Irving, Texas.

CommercialEdge covers 8M+ property records in the United States. View the latest CommercialEdge national monthly office report here.