2024 Dallas-Fort Worth
Market Trends
Review Dallas-Fort Worth market trends for the first and second quarters of 2024, and CoStar’s projections for the remainder of the year.
COMMERCIAL MARKET TRENDS
Inventory
Office space accounts for nearly 425M SF of inventory in DFW market. Industrial inventory of 1.2B SF reflects the continued growing demand. Retail maintains 472M SF of available space.
Asking Rent / SF
Currently, the average Asking Rent/SF in Dallas-Fort Worth for office space is $30.87. Industrial averages at $9.72 / SF, and retail space is currently at $23.97 / SF in DFW.
Under Construction
Despite fluctuating demand, 7.8M SF of office space is currently under construction. Though construction is predicted to taper by the end of 2024, there is still 22.7M SF of industrial space under construction and 5.1M SF of retail under construction.
Sale Price / SF
Sale prices per square foot range from the low $100s to the upper $200s. Office sale prices average $208 / SF, industrial pricing is at $114 / SF, and retail has an average sale price of $276 / SF.
Commercial Market Summary
The Dallas-Fort Worth market has been holding steady throughout the first half of 2024 among Office, Industrial, and Retail properties. Despite office space continuing to wrestle with fragile demand and elevated availability, the expansion is below the U.S. norm of 440 basis points. More shallow vacancy expansion is supported by continued demographic tailwinds and relatively resilient office-using employment. The DFW industrial market has been delivering new inventory at some of the fastest paces ever seen across the country. The rapid growth has significantly increased vacancies to their highest point in over a decade due to the overbuilding of speculative inventory. As a result, users are still eager to enter space, and owners have been able to maintain positive rent growth. The retail market remains on firm footing in the second quarter of 2024 as strong tenant demand and minimal store closures have kept vacancies at historically tight levels. Deliveries have been picking up to meet demand, with this current quarter seeing the largest wave of project completions in years. The remaining slate of construction deliveries will be more spread out in the upcoming quarters, and steady tenant demand should absorb most of the new space coming to market in the first half of 2024.
Vacancy Rate
Office vacancies sit at 18.2% in the metroplex, which is still below the U.S. norm. Due to high demand and speculative production, industrial vacancies are 9.6% currently. Tenant demand has allowed retail vacancies to remain at 4.5%.
MULTIFAMILY MARKET TRENDS
Inventory
Under Construction
879,073
Units
Vacancy Rate
44,203
Units
Market Asking Rent
10.8%
Market Sale Price
$1,553
/ Unit
$177K
/ Unit
Multifamily Market Summary
Multifamily demand in Dallas-Fort Worth is rebounding, reflecting greater confidence among households to sign leases. Demand has risen across the quality spectrum with fast-growing suburban submarkets in the driver’s seat. Frisco/Prosper, Allen/McKinney, and North Forth Worth, account for a third of the market demand in the past year and serve as a stabilizing force for the market. Rising demand and tapering construction should allow Dallas Fort-Worth’s vacancy rate to stabilize and rent growth to return. Market Asking Rent continues to rise with new constructions being introduced into the market and prospective residents seeking high-end, on-site amenities such as a luxury pool, fitness center, indoor basketball court, dog park, private conference areas, game room, in-unit washer and dryer, elevators, and more. Remote employment has increased the demand to have such amenities within walking distance.
All information related to current market trends in the Dallas-Fort Worth area is provided by CoStar’s market data base.