Dallas-Fort Worth observes a spike in leasing due to major renewals

The Dallas-Fort Worth office market has seen a substantial increase in leasing activity during Q3 2024, with leasing activity rising by over 50% from the previous quarter. Significant transactions, such as Bank of America's renewal of 553,799 square feet (sf) in Addison and Aimbridge Hospitality's renewal of 248,861 sf in Plano, contributed to this surge. Half of the top 10 deals in the quarter were over 100,000 sf. Despite the recent rise, this growth in leasing activity is largely driven by renewals, and leasing trends may return to the 5-year average in the future. Availability also ticked up slightly, rising to 30.0% in Q3 2024, up from 29.8% in the previous quarter. Sublease space remains elevated at 9.5 million square feet (msf), which could exert further pressure on the market. Additionally, the pipeline of new construction, which totals around 5.8 msf of mostly speculative development, is expected to drive availability even higher.

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