{"id":80458,"date":"2025-07-21T11:18:09","date_gmt":"2025-07-21T11:18:09","guid":{"rendered":"https:\/\/www.europesays.com\/us\/80458\/"},"modified":"2025-07-21T11:18:09","modified_gmt":"2025-07-21T11:18:09","slug":"dallas-records-its-first-office-market-uptick-in-five-years-thanks-to-uptown-boom","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/80458\/","title":{"rendered":"Dallas records its first office market uptick in five years thanks to Uptown boom"},"content":{"rendered":"

Vacancies in Dallas\u2019s office market<\/a> have seen their first drop in five years \u2014 and it isn\u2019t because prices are coming down. <\/p>\n

In fact, it\u2019s the opposite. Companies jockeying for top-shelf product in the local office market have brought vacancy rates down by half a percentage point since last year \u2014 the first yearly decline since 2019 \u2014 and down nearly a full percentage point since the record highs they charted at the end of 2024. <\/p>\n

\u201cA clear two-tiered office market is being drawn across the country, with most tenants favoring Class A and trophy assets in neighborhoods that are walkable, and near residential communities,\u201d said Ariel Guerrero, manager for market intelligence with Avison Young, a global commercial real estate brokerage and advisory firm headquartered in Toronto, Canada which published a report tracking Dallas\u2019 office market. <\/p>\n

The markets accruing the most momentum are the ones with the most walkable neighborhoods, with restaurants and retail. Those amenities attract businesses who, in turn, wish to attract and retain top-tier talent, and bring them back into the office, Guerrero said. <\/p>\n

D-FW Real Estate News<\/p>\n

Get the latest real estate news you need to know.<\/p>\n

While vacancy across the office market metrowide still sits at 25.3%, just below the metro\u2019s highest on record in recent years, the decline is an encouraging sign for landlords of Dallas\u2019 highest-valued properties.<\/p>\n

Far and away, Uptown is the center of the conversation when it comes to Dallas\u2019 office market. <\/p>\n

Nearly three-quarters of the metro\u2019s current 2.7-million-square-foot construction pipeline is in Uptown.<\/p>\n

\u201cWalkability and the younger generation are big factors. You\u2019re seeing a lot of the companies in Uptown with a younger workforce, so that walk factor has been a major influence for three to four years now,\u201d said Greg Langston, principal and managing director of Avison Young\u2019s Dallas office.<\/p>\n

The area continues to siphon businesses away from markets like downtown<\/a>, quickly becoming the nucleus of Dallas\u2019 financial industry.<\/p>\n

\u201cTrammel Crow Center is doing really well, but Goldman Sachs has a lot of space occupied there. Once Goldman and their 300,000 square feet move into their new headquarters in Dallas, what will happen there?\u201d Langston asked.<\/p>\n

Related:Downtown Dallas\u2019 Trammell Crow Center skyscraper sells at a towering price<\/a><\/p>\n

The demand for top-tier office space in the Dallas market is so pronounced that a lull in construction fomented by high material and labor costs, as well as the high cost of debt, has caused the supply pipeline to become constricted. <\/p>\n

\u201cThere are 11 buildings under construction citywide, and 69% of those spaces have been pre-leased. Many of those are purpose-built, but there is some spec product,\u201d Guerrero said. \u201cIf you look at the higher-quality buildings, a lot of them are well leased up. We\u2019ve seen construction start to go away and pretty much pause \u2014 what we foresee is a potential supply crunch.\u201d<\/p>\n

The construction slowdown is also pushing rental rates up across the board. Most of the rate growth in the metro\u2019s office market is being driven by Uptown, which commands the highest rents by a wide margin \u2014 a gap that continues to widen.<\/p>\n

\u201cThe tide is rising for everybody \u2014 especially in Uptown,\u201d Langston said.<\/p>\n

Preston Center, another hot office market in the metro<\/a>, is facing the most compressed vacancies in the area at just under 9%, with the prospect of immediate reprieve unlikely given the slowdown in new construction.<\/p>\n

\u201cThere\u2019s a lot of tightness in that market, with not much space for any new tenants,\u201d Guerrero said. \u201cIt\u2019s going to have to trickle down to other nearby markets.\u201d <\/p>\n

Although its office footprint is one-third of Uptown\u2019s, Preston Center is ideal for workers commuting from northern Dallas suburbs, and also offers similar amenities to Uptown, Langston said. <\/p>\n","protected":false},"excerpt":{"rendered":"Vacancies in Dallas\u2019s office market have seen their first drop in five years \u2014 and it isn\u2019t because…\n","protected":false},"author":3,"featured_media":80459,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5135],"tags":[5229,347,12611,1596,7712,4329,358,3187,67,586,132,5230,68,2969],"class_list":{"0":"post-80458","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-dallas","8":"tag-america","9":"tag-article","10":"tag-commercial-real-estate","11":"tag-dallas","12":"tag-dallas-fortworth","13":"tag-real-estate","14":"tag-texas","15":"tag-tx","16":"tag-united-states","17":"tag-united-states-of-america","18":"tag-unitedstates","19":"tag-unitedstatesofamerica","20":"tag-us","21":"tag-usa"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/114890952122390098","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/80458","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=80458"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/80458\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/80459"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=80458"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=80458"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=80458"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}