United States: Dallas office market - 2025
Rental growth continues despite rising vacancy, supported by a combination of targeted corporate expansions and sustained demand for higher quality office environments. Investment declines due to capital market conditions.
Job growth continues in Dallas-Fort Worth
The Dallas–Fort Worth economy maintained its momentum throughout 2025, extending a multi‑year run of strong regional performance. While the broader service sector began to cool, the metro still posted a 0.4% annual increase in service‑industry jobs. This marks a notable step down from the 1.2% growth recorded at the close of 2024, but it remains positive in the face of national moderation. Long-range demographic and employment forecasts continue to point to DFW as one of the country’s most durable growth markets.
Rent Growth Continues Despite Rising Vacancy
In the office sector, fundamentals showed modest improvement over the past year. Market vacancy tightened meaningfully, receding from 19.5% at the end of 2024 to 18.4% by the close of 2025. The shift was supported by a combination of targeted corporate expansions and sustained demand for higher-quality office environments. Overall asking rents advanced 5.0% during the year, reflecting both inflationary pressures and landlords’ increasing leverage in preferred submarkets. Prime office product performed somewhat differently: top-tier rents rose 2.9%, indicating that tenants seeking modern, well-amenitized space remained active even as the broader market recalibrated.
Investment declines due to capital market conditions
Investment activity, started to rise as record setting sales for office arrived in the latter half of 2025. Total commercial real estate investment still reached $13.4 billion through 2025, supported in part by several large institutional transactions. Office assets comprised roughly $3.4 billion of that volume. Prime office cap rates held firm at 6.5% at year‑end 2025, matching the prior year and signaling that pricing expectations have stabilized even as deal flow begins to improve.