DFW Doubles Office Construction

A little over 10 million square feet of office space was under construction as of May, according to CommercialEdge data, representing 3.2 percent of stock; on a national level, office space underway as a percentage of stock had reached 2.2 percent. The total was more than double what was recorded in May 2021, when only 4.5 million square feet were underway.

When compared to similar secondary markets, The Metroplex ranked second in terms of pipeline size relative to total stock. A whopping 10 percent brought Austin the number one position, while Atlanta ranked third, with 1.8 percent. The national office pipeline totaled more than 151 million square feet as of May.

Most developments will add traditional office space to inventory. Some 944,000 square feet, or 9.4 percent of the total pipeline, pertain to medical offices, while flex office and life science buildings account for only 3.5 percent. Platinum Corridor North was, once again, the metro’s leading submarket in terms of pipeline size, with office construction reaching 2.7 million square feet. Plano followed, with nearly 2.2 million square feet underway.

More than 3.4 million square feet is expected to enter the metro’s supply by the end of the year. One of developments approaching the finish line is VariSpace, a 180,000-square-foot project in Coppell and one of the few office buildings underway in the Lewisville submarket. Upon completion, the three-story property will serve as global headquarters for flexible workspace solutions company Vari.

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