Office Investment Rises in Dallas-Fort Worth

February brought an uptick in office transactions across Dallas-Fort Worth, according to CommercialEdge. Some 1.8 million square feet of office space changed hands in the metro, marking an 80 percent improvement month-over-month. The traded square footage was also 376 percent higher than in February 2021, when only 378,095 square feet changed hands.

Investors paid nearly $177 million on Metroplex assets year-to-date at an average $137 per square foot, a price that was 51.8 percent lower than the national average of $284 per square foot. The sales amount showed a 24.6 percent drop year-over-year, as the metro’s office sales totaled $235 million at an average $235 per square foot in the first two months of 2021.

Most transactions involved Class B and C assets, with only one Class A building in the sales mix. Nearly 1.6 million square feet, or 88.9 percent of the traded square footage, was traditional office space. As for location, 50 percent of deals closed in urban submarkets.

The 1.1 million-square-foot Bryan Tower was the largest property that changed hands in February. Woods Capital acquired the Dallas CBD asset out of foreclosure, planning to convert the top half of the 40-story building to luxury apartments. The 1973-built tower was one of the first modern reflective glass high-rises constructed in Dallas.

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.