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Market Report

Dallas-Fort Worth Office Investment Forecast

2022 Outlook

Out-of-State Investors Target North Dallas Suburbs as the CBD Endures a Brief Stretch of Amplified Vacancy

Suburbs in a better near-term position, but positives emerge in the Dallas CBD. The rebound is beginning to commence in Dallas' urban core, with several firms inking leases at downtown skyscrapers late last year after these types of buildings were circumvented amid virus transmission concerns early in the health crisis. Nevertheless, vacancy in the Dallas CBD exceeded 30 percent entering this year, but the rate should taper in 2022 as almost no new supply is expected to finalize. Builders instead are active in the suburbs, which have been comparatively resilient and drawn more pre-leases. The largest planned move-in this year is by Uber Technologies, which will occupy 350,000 square feet at The Epic-Building II just outside the core in East Dallas. This submarket as well as Richardson-Plano will each add more than 500,000 square feet of speculative space this year. These new properties should garner leases as both submarkets have vacancy rates below the Metroplex average. Positive momentum in the suburbs and minimal new supply in the Dallas core will curtail marketwide availability in 2022 and promote rent growth.

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