Dallas Real Estate Market Reports

Dallas Office Market

Annual full-service asking rental rates increased by 1.0% year over year to $30.60/SF, reflecting a minimal 0.1% decrease from the historical high while rents remain elevated. Occupancy increased this quarter as more new supply entered the market, resulting in overall vacancy rates staying relatively flat at 24.6%, remaining unchanged quarter over quarter. Under-construction pipeline drops to 3.5 MSF in progress, reflecting the lowest construction activity since year-end 2021. Total leasing activity closed the quarter at 3.8 MSF, reflecting slowing leasing activity contributed by fewer deals being done. Leases signed averaged 4,934 SF per deal, increasing in deal size by 22.4% quarter over quarter and 9.4% 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%.