Dallas - Fort Worth Office Summary - 4Q 2021

4Q 2021 Office Market

The market is indicating a healthy rebound with 610,000 SF over the last 12 months. The first quarter of 2022 will mark the fourth consecutive quarter of positive net absorption. Solid leasing activity should carry this trend through the second half of 2022.

Several large build-to-suits accounted for the lion's share of positive absorption, Charles Schwab moving into its 580,000-SF Westlake Campus. Keurig Dr Pepper and the PGA headquarters are building new headquarters facilities in Frisco. JP Morgan Chase moved into its 540,000-SF space in Legacy West. High-quality, recently renovated product in downtown Dallas is performing well. For example, Integrity Marketing Group moved into its 100,000-SF space in the iconic Fountain Place.

The amount of sublet space has put additional stress on the market. Sublet space available has increased by 3.9 million SF since early 2020, eclipsing 10 million SF. In late 2020, the former Braniff Headquarters, a five-building campus that is now home to Thryv, was put on the market when the company announced an indefinite "remote first" policy. The move added 340,000 SF of sublease space. Uber Technologies has just over 100,000 SF of sublease space available in the Epic in Deep Ellum.

Construction activity has been relatively restrained as many developers have held off breaking ground on new projects. There has been 5.4 million SF delivered in the last 12 months and 6.7 million SF of space currently underway. There is a significant amount of spec space underway or recently delivered in the last 12 months. For example, the 215,000-SF The Stack in Deep Ellum was completed in early 2021. In the Victory Park section of Uptown, Hillwood is delivered the 365,000-SF Victory Commons One in late 2021. In Preston Center, the 12-story, 297,000-SF Weir's Plaza is expected to deliver in early 2022. The building is 82% preleased. Law firm Kirkland & Ellis has leased the top three floors, totaling 65,900 SF. It is joined by Fortress Investment, which also signed at 47,850-SF lease.

Annual rent growth is positive at 1.2%. While the majority of submarkets have fallen into negative territory, West LBJ Freeway, East LBJ Freeway, and Stemmons Freeway are holding steady with no growth. The greatest rent losses are found in DFW Freeport/Coppell, Office Ctr/West LBJ Ext, Urban Center/Wingren, and Uptown/Turtle Creek.

Take a look at the individual Submarkets in our DFW Office Market Report:


Corporate relocations and expansions continue to drive office demand in Dallas-Fort Worth. A highly skilled labor force, low business costs relative to coastal markets, and a central location make the metroplex attractive. Add in the accessibility provided by a robust air transportation network that provides global connectivity. Aggressive incentive packages offered by the State of Texas and local municipalities have made the region extremely competitive.

There were just over 5,100 in 2021. Of those, 110 were 20,000 SF or greater. One of the largest was the FDIC signing a 163,000-SF lease in the Plaza of the Americas building. Also in downtown Dallas, Hilltop Securities signed a 95,500-SF lease in 717 Harwood, taking four floors of the 844,000-SF building. 

There is currently 6.7 million SF under construction, with 51% preleased. There are several spec buildings currently underway. These include; Harwood No. 14, Victory Commons One, Weirs Plaza, and The Link. As these projects deliver, they may put increased pressure on the vacancy rate. The current vacancy rate is 17.7%, the highest realized since 2010. It should be noted the vacancy rates in the metroplex are notoriously above what is found in many larger markets. Since 2010, the region has experienced an average vacancy rate between 15% and 17%.

costar logo


The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice.

January 14, 2022

Not sure who to contact?

Looking for Space?