Dallas Office Market
Annual full-service asking rental rates increased to a historical high of $29.77/SF, a 1.4% increase year over year. Occupancy was slightly negative, pushing overall vacancy rates to remain relatively flat, increasing by 10 basis points quarter over quarter, to 24.7%. Under-construction pipeline continued to remain steady, with 3.3 MSF in progress. Total leasing activity closed the quarter at 3.0 MSF, reflecting slowing leasing activity contributed by smaller deals being done. Leases signed averaged 3,530 SF per deal, decreasing in deal size by 17.5% quarter over quarter and 15.3% year over year.
Dallas Industrial Market
The market realized 1.4 MSF of positive absorption in the first quarter of 2024, resulting in the second lowest first-quarter net absorption since 2013 and the lowest since 2019. Overall rental rates grew 13.5% year over year to $9.66/SF, reaching a new historical high. Construction pipeline recorded the fifth consecutive double-digit delivery quarter at 15.6 MSF, while the under-construction pipeline dwindles for the fifth consecutive quarter to 28.4 MSF. Following quarterly supply outpacing occupancies for the fifth consecutive quarter, as of the end of the first quarter of 2024, vacancy increased by 320 basis points year over year to 9.6%.
Download Dallas Industrial Market Report 1Q24