Dallas Office Market
Annual full-service asking rental rates increased by 0.9% year over year to $30.87/SF, reaching a new historical high. Occupancy decreased this quarter as more new supply entered the market, resulting in overall vacancy rates ticking upwards by 20 basis points quarter over quarter to 24.6%. Under-construction pipeline drops to 2.4 MSF in progress, reflecting the lowest quarterly construction activity since second quarter 2013. Total leasing activity closed the quarter at 3.1 MSF, reflecting slowing leasing activity contributed by fewer deals being done. Yearly leasing activity closed at 17.1 MSF, the second highest in the post-pandemic era. Leases signed averaged 4,598 SF per deal, with average deal size remaining relatively unchanged year over year.
Dallas Industrial Market
The market realized 5.9 MSF of positive absorption in the third quarter of 2024, keeping pace with average quarterly absorption levels reported from 2013 to 2020. Overall rental rates grew 8.8% year over year to $9.89/SF, reaching a new historical high. Construction pipeline recorded 6.0 MSF of deliveries for the quarter, while the under-construction pipeline dwindles for the seventh consecutive quarter to 19.2 MSF. Following quarterly supply outpacing occupancies for the seventh consecutive quarter, as of the end of the third quarter of 2024, vacancy increased by 200 basis points year over year to 9.5%.
Download Dallas Industrial Market Report 3Q24