Dallas Office Towers Struggle as Vacancy Climbs 18%
Vacancy Rate Trends and Office Space Dynamics The Dallas/Fort Worth office market is undergoing a transformation as vacancy rates fluctuate. Professionals remain on high alert due to these changes. Vacancy trends reveal a challenging environment. The rate stands at 17.9% by Q1 2025, surpassing the 10-year average of 15.46%. Developers are now considering the evolution of development strategy as a way to adapt to changing market conditions and consumer demands. Early 2025 saw a modest decline in vacancy rates. However, this contrasts with a significant year-over-year increase. Different office classes paint a stark picture. Stabilized trophy Class A spaces exhibit a 12.7% vacancy rate. In contrast, lower-tier Class A and Class B spaces are experiencing vacancy rates of 28.2% and 22.4%, respectively. Developers are now favoring the construction of high-quality, amenity-rich properties. This market bifurcation draws tenants to newer constructions. Net absorption over the past 12 months r...