Dallas/Fort Worth Office Market Report

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

Dallas/Fort Worth 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/Fort Worth office market report for deeper insights into submarket leasing trends and investment activity.

Frequently Asked Questions

What is the office vacancy rate in Dallas/Fort Worth in Q2 2026?

The direct office vacancy rate in Dallas/Fort Worth 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/Fort Worth?

The overall office availability rate in Dallas/Fort Worth 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/Fort Worth?

The average direct asking rent across the Dallas/Fort Worth 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/Fort Worth in Q2 2026?

Dallas/Fort Worth 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/Fort Worth and why does it matter?

Dallas/Fort Worth 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/Fort Worth?

Dallas/Fort Worth 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/Fort Worth in Q2 2026?

Dallas/Fort Worth 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/Fort Worth in Q2 2026?

The largest office lease signed in Dallas/Fort Worth 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/Fort Worth office market?

The Dallas/Fort Worth 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/Fort Worth Office Market: Key Data Points

Explore our full Dallas/Fort Worth 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