Avison Young has recently published their Third Quarter 2024 Office Market Report for the Dallas-Fort Worth (DFW) area. According to Greg Langston, a representative from Avison Young, it appears that we have finally hit the bottom of this cycle as there was modest improvement in Q3 2024 statistics across all categories.
During this year, DFW’s office market saw a decrease of 2.8 million square feet in availability for both direct and sublet spaces. However, despite this positive change, availability remains high at 67.5 million square feet due to the ongoing impact of remote and hybrid work arrangements. As of Q3, there was a net absorption increase of approximately 700 thousand square feet for the year.
Walter Bialas from Avison Young also noted that while office space availability has improved slightly, it still remains at persistently high levels. Deals are being made but leasing activity is slow and not enough to significantly reduce overall space availability.
In terms of vacancy rates in DFW’s office market during Q3 2024 remained stable with vacancy rates at around26% and an overall availability rate at28%. This trend has been consistent over several quarters now according to Avison Young’s report.
