2025 DFW Market Update & 2024 Year In Review

THANK YOU!

As we embark on the new year, we want to express our sincere appreciation to our clients for their trust and partnership with our team. We are thankful for your confidence in our team and look forward to continuing to support your business success. This book provides an update on the Dallas office real estate market and highlights some of our clients’ achievements over the past year. Key trends in 2024 included rising vacancy, record-high rental rates, a continued flight to high-quality office buildings, a slowdown in new construction, and a challenging lending environment that left many building owners strapped for capital. With tenants “right-sizing” into smaller spaces in higher-quality buildings, both vacancy and office rents increased. DFW asking rents increased 4.9% over the past year, reaching an all-time high of $32.74/SF. Looking ahead to 2025, new office construction is expected to slow due to rising costs, a tough lending climate, and ongoing negative absorption. However, demand for high-quality, highly amenitized, walkable office buildings remains strong, and we anticipate further rental rate growth in Class A assets. We remain optimistic about the future of DFW and look forward to helping our clients navigate the evolving market in 2025.

Sincerely,

ROBBIE BATY

TRAVIS BOOTHE

ALEXANDRA BOURY

HANNA HENLEY