**Dallas Office Construction Increases While Vacancy Rates Rise**
DFW’s office sector remained steady in 2024, with more than 2.9 million square feet under construction and 2.8 million square feet delivered across 18 properties, according to CommercialEdge data. Additionally, office construction starts in Dallas saw a significant boost last year, with 1.7 million square feet breaking ground—marking a 50 percent increase year over year.
However, the metro continues to face challenges. As of January, the office vacancy rate rose by 330 basis points year-over-year to reach 24 percent. Additionally, as loan delinquencies increased, property owners have increasingly opted to sell underperforming office buildings at discounted prices.
By the end of 2024, Dallas’ office construction pipeline totaled more than 2.9 million square feet, accounting for 1 percent of the metro’s inventory. This figure was 20 basis points higher than the national threshold and surpassed peer markets such as Houston (0.8 percent) and Atlanta (0.5 percent), though it trailed behind Austin, which stood at 3.7 percent.
