The Dallas-Fort Worth office market remained stable in Q1 2025, with the total vacancy rate down by 10 basis points to 25.1%, though still higher by 30 basis points year over year, according to Partners Real Estate’s Q1 analysis.
Leasing activity increased slightly from 3.8 million square feet to 4 million square feet, with notable leases including Toyota Financial Services’ 241,452 square foot lease at Southstone Yards and GEICO’s 165,107 square foot lease at Galatyn Commons. Total net absorption turned positive for the quarter at 751,040 square feet, which would have been greater if not for the ongoing weakness in Class B properties. In contrast, Class A properties recorded 1.5 million square feet of positive demand.
Construction deliveries for the quarter totaled 36,193 square feet, down significantly from the previous quarter, reflecting a broader decline in the development pipeline, which now stands at 2.8 million square feet, down 50% year over year. Rental rates rose over the quarter and the year, increasing to $31.34 per square feet from $30.85 per square foot in the previous quarter.
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