Dallas Office Market Report

The following reflects Dallas office market conditions as of Q2 2026.

Dallas office vacancy continued to ease in the second quarter, with direct vacancy falling to 23.5% and total vacancy to 25.1%, down 90 basis points year-over-year, while direct asking rents climbed 6.6% to $33.86/SF/Yr and total net absorption reached 640,341 SF for the quarter, up 90.7% year-over-year. Construction deliveries slowed sharply to just 41,188 SF for the year to date, down 94.3% from a year earlier, even as 2,935,637 SF remained under construction, up 47.0% year-over-year. Explore our full Dallas office market report for deeper insights into submarket leasing trends and investment activity.

Frequently Asked Questions

What is the office vacancy rate in Dallas in Q2 2026?

The direct office vacancy rate in Dallas was 23.5% in Q2 2026, down 40 basis points from 23.9% a year earlier, according to Kidder Mathews research. Total vacancy, which includes sublease space, was 25.1%, down 90 basis points year-over-year from 26.0%. Preston Center posted the lowest direct vacancy rate in the market at 5.3%, while Northeast Ft Worth posted the highest at 34.8% (Data source: CoStar).

What is the office availability rate in Dallas?

The overall office availability rate in Dallas was 27.8% in Q2 2026, down 130 basis points from 29.1% a year earlier, according to Kidder Mathews research. Availability includes space marketed for lease that is not yet vacant, in addition to directly vacant space (Data source: CoStar).

What are average office asking rents in Dallas?

The average direct asking rent across the Dallas office market was $33.86/SF/Yr in Q2 2026, up 6.6% from $31.77/SF/Yr a year earlier, according to Kidder Mathews research. Submarket asking rents ranged from $21.09/SF/Yr in Stemmons Freeway to $62.11/SF/Yr in Preston Center, reflecting the wide spread between value-oriented and premium submarkets (Data source: CoStar).

How much office leasing activity took place in Dallas in Q2 2026?

Dallas office leasing activity totaled 3,256,316 SF in Q2 2026, bringing year-to-date leasing to 7,182,537 SF, down 8.9% from 7,882,406 SF over the same period last year, according to Kidder Mathews research. Far North Dallas led the market with 816,255 SF of quarterly leasing activity (Data source: CoStar).

What is office net absorption in Dallas and why does it matter?

Dallas office net absorption was 640,341 SF in Q2 2026, up 90.7% from 369,418 SF year-to-date a year earlier, according to Kidder Mathews research. Net absorption measures the change in physically occupied space over a period; positive absorption means tenants occupied more space than they vacated, signaling improving demand relative to prior quarters (Data source: CoStar).

How much office space is under construction in Dallas?

Dallas had 2,935,637 SF of office space under construction as of Q2 2026, up 47.0% from 1,996,503 SF a year earlier, according to Kidder Mathews research. The largest project underway is the 800,000-SF Goldman Sachs development in Uptown/Turtle Creek, slated for delivery in 1Q 2028, followed by the 500,126-SF Bank of America Tower at Parkside in the same submarket, expected in 1Q 2027 (Data source: CoStar).

How much office investment sales activity occurred in Dallas in Q2 2026?

Dallas office sales totaled 5,862,992 SF in Q2 2026, bringing year-to-date sales volume to 10,491,154 SF, up 53.9% from 6,816,512 SF over the same period last year, according to Kidder Mathews research (Data source: CoStar).

What was the largest office lease signed in Dallas in Q2 2026?

The largest office lease signed in Dallas in Q2 2026 was Mercury One’s 172,089-SF new lease at 6655 N MacArthur Blvd in Las Colinas, according to Kidder Mathews research. Other notable leases included Welltower’s 140,519-SF new lease at 8300 Douglas Ave in Preston Center and Blue Yonder’s 127,092-SF new lease at 155 Riveredge Dr in Stemmons (Data source: CoStar).

What is the outlook for the Dallas office market?

The Dallas office market is trending toward gradual improvement, with vacancy declining, asking rents rising, and net absorption strengthening year-over-year in Q2 2026, according to Kidder Mathews research. A sharp pullback in construction deliveries, even as under-construction volume grew, suggests near-term supply pressure should continue to ease as demand recovers (Data source: CoStar).

Last updated: Q2 2026. Data source: CoStar. Compiled by the Kidder Mathews Research Group.

Q2 2026 Dallas Office Market: Key Data Points

Explore our full Dallas office market review for deeper insights into leasing trends, sale activity, and submarket performance.

• Vacancy continues to ease: Direct vacancy fell to 23.5% and total vacancy to 25.1% in Q2 2026, down 90 basis points year-over-year.
• Asking rents rose: The average direct asking rent climbed to $33.86/SF/Yr, up 6.6% from $31.77/SF/Yr a year earlier.
• Net absorption surged: Total net absorption reached 640,341 SF in Q2 2026, up 90.7% year-over-year from 369,418 SF YTD.
• Construction deliveries slowed sharply: Only 41,188 SF delivered year-to-date, down 94.3% from a year earlier, even as 2,935,637 SF remained under construction, up 47.0% year-over-year.
• Investment sales climbed: Sold SF reached 5,862,992 in Q2 2026, bringing year-to-date volume to 10,491,154 SF, up 53.9% year-over-year.
• Preston Center led on tenant demand: The submarket posted the market’s lowest direct vacancy rate (5.3%) and highest average asking rent ($62.11/SF/Yr), anchored by Welltower’s 140,519-SF new lease.

Submarket Statistics

Significant Lease Transactions Q2 2026

Significant Development Projects