Office Vacancy Rises in Dallas-Fort Worth

Dallas-Fort Worth market witnessed an office vacancy rise in May. According to CommercialEdge, the metro’s vacancy rate clocked in at 18 percent, 70 basis points higher month-over-month. The value was also 20 basis points higher than the one recorded in May 2021.

When compared to similar markets, The Metroplex fared better than Atlanta (20 percent vacancy rate), but still remained behind Austin (15.6 percent). The metro’s index was also 260 basis points behind the national average of 15.4 percent.

Asking rents also slightly rose across the metro, although remaining smaller than the national average. The full-service equivalent listing was at $29.17 per square foot, up 1.4 percent month-over-month and 2.2 percent year-over-year. The national rate was at $37.56 per square foot, down 2.1 percent year-over-year.

Two of the submarkets with inventories larger than 10 million square feet witnessed serious vacancy increases on a month-over-month basis. Dallas Central Business District was the most impacted one, with the index rising from 20.4 to 31.3 percent, followed by Plano, with office vacancy up by 530 basis points. Other submarkets, such as Platinum Corridor North and North Dallas, saw vacancies reduce by 200 basis points.

In one of the larger deals of the month, international brokerage firm Newmark signed a 46,350-square-foot lease at Kaizen Development Partners’ The Link at Uptown in Dallas. The company will move its three North Texas offices to floors 15 and 16 of the 301,321-square-foot tower.

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