**DFW Office Market Shows Signs of Stability and Gradual Improvement**
Avison Young has released its first quarter 2025 report on the Dallas-Fort Worth (DFW) office market, and the findings suggest a positive and steady turnaround following several years of increasing office space availability.
From 2019 through 2023, the DFW office market saw a significant rise in available space. However, recent data indicates that those rates have begun consistently declining. In Q1 2025, the total availability for both direct and sublet space dropped by another 700,000 square feet from the end of 2024. Since its peak in late 2023, availability has decreased by a total of 6.8 million square feet.
Vacancy rates are also showing signs of improvement. In the first quarter of 2025, vacancy ticked down to 26.0%, slightly lower than the 26.4% peak recorded late last year.
While these numbers remain elevated, the report emphasizes that consistent quarterly declines point to a return of market predictability—something DFW’s office sector has lacked for several years.
Currently, total office space availability stands at 64 million square feet, down significantly from the 71 million square foot peak in 2023. Though the current level is still higher than the pre-cycle average of 50 to 52 million square feet, the trend signals ongoing recovery. Additionally, the market continues to benefit from positive net absorption, sustaining the momentum that began in the second half of 2023.
These improvements suggest that the DFW office market is stabilizing and may be poised for sustained growth going forward.
