Leasing activity remains resilient with occupier flight to quality continuing

The Dallas-Fort Worth office market remains resilient with leasing seeing a 12% increase in 4023 compared to prior quarter. Asking rents have increased 9.5% year-over-year, which is primarily driven by Class A properties. Demand for Class A buildings holds firm, as occupiers flight to quality continues. Class A space accounted for approximately 63% of the leasing activity in Q423. Despite the steady leasing activity observed in 2023, the Dallas-Fort Worth office market saw an increase in availability of 150 basis points yearover- year. The increasing availability can be attributed to the new supply coming online, with the Dallas-Fort Worth office market seeing approximately 5.4 million square feet of office space added over the past 12 months. Given the under-construction pipeline, availability is likely to trend upward over the near term.

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