Office Investment in Dallas-Fort Worth
Dallas-Fort Worth office investment splits hard between trophy assets and everything else. Class A buildings in prime submarkets still trade at 5.5%-6.5% caps, but commodity space pushes 8%+. Remote work hit harder here than coastal markets — DFW companies brought people back faster, but sublease space keeps growing. Corporate relocations drive demand in specific pockets while older inventory sits. Your OM better address return-to-office metrics and sublease competition upfront.
Market Context
Cap Rate Range
5.5%-8.2% depending on class and location, with Class A trophy assets at 5.5%-6.5% and Class C suburban at 7.5%-8.2%
Current Vacancy
18.2% overall, ranging from 12% in premium submarkets to 25%+ in secondary locations
Rent Trend
Down 8% from peak, stabilizing in Class A but still declining in Class B/C suburban
Absorption
Negative 1.2M SF over past 12 months, improvement from negative 3.1M SF in 2024
Price Per Unit Trend
Class A holding at $280-320/SF, Class B down to $180-220/SF, significant spread widening
Transaction Volume
$1.8B in 2025, down 35% from 2022 peak, mostly trophy assets and distressed sales
Submarket Analysis
Uptown Dallas
5.8%-6.2% capVacancy
12.1%
Avg Rent (1BR)
$38.50/SF gross
Strongest submarket, walkable amenities drive premium
OM Tip
Highlight walkability score, nearby restaurants, residential density within 0.5 miles
Plano/Richardson
6.2%-7.1% capVacancy
16.8%
Avg Rent (1BR)
$32.20/SF gross
Corporate campus market, depends on major tenant decisions
OM Tip
Focus on parking ratios, corporate tenant roster, highway access times
Las Colinas
6.5%-7.4% capVacancy
19.5%
Avg Rent (1BR)
$29.80/SF gross
Mixed, legacy telecom space struggling but new development performing
OM Tip
Separate vintage analysis, proximity to DFW airport for corporate users
Downtown Fort Worth
6.8%-7.8% capVacancy
21.2%
Avg Rent (1BR)
$26.50/SF gross
Energy sector exposure creates volatility
OM Tip
Energy tenant concentration risk, public transit access, parking availability
Legacy West
6.0%-6.8% capVacancy
14.3%
Avg Rent (1BR)
$35.70/SF gross
Mixed-use environment appeals to tech tenants
OM Tip
Mixed-use amenities, retail density, millennial workforce attraction
Performance by Vintage
0
2
1
0
2
1
3
0
4
s
5
6
c
7
o
8
n
9
s
10
t
11
r
12
u
13
c
14
t
15
i
16
o
17
n
18
19
h
20
o
21
l
22
d
23
s
24
25
v
26
a
27
l
28
u
29
e
30
31
b
32
e
33
s
34
t
35
36
—
37
38
e
39
f
40
f
41
i
42
c
43
i
44
e
45
n
46
t
47
48
f
49
l
50
o
51
o
52
r
53
54
p
55
l
56
a
57
t
58
e
59
s
60
,
61
62
l
63
o
64
w
65
e
66
r
67
68
T
69
I
70
71
r
72
e
73
q
74
u
75
i
76
r
77
e
78
m
79
e
80
n
81
t
82
s
83
,
84
85
b
86
e
87
t
88
t
89
e
90
r
91
92
p
93
a
94
r
95
k
96
i
97
n
98
g
99
100
r
101
a
102
t
103
i
104
o
105
s
106
.
107
108
2
109
0
110
0
111
0
112
s
113
114
v
115
i
116
n
117
t
118
a
119
g
120
e
121
122
n
123
e
124
e
125
d
126
s
127
128
c
129
a
130
p
131
i
132
t
133
a
134
l
135
136
b
137
u
138
t
139
140
t
141
r
142
a
143
d
144
e
145
s
146
147
a
148
t
149
150
a
151
t
152
t
153
r
154
a
155
c
156
t
157
i
158
v
159
e
160
161
b
162
a
163
s
164
i
165
s
166
.
167
168
1
169
9
170
9
171
0
172
s
173
174
s
175
u
176
b
177
u
178
r
179
b
180
a
181
n
182
183
s
184
t
185
r
186
u
187
g
188
g
189
l
190
i
191
n
192
g
193
194
w
195
i
196
t
197
h
198
199
2
200
5
201
%
202
+
203
204
v
205
a
206
c
207
a
208
n
209
c
210
y
211
212
a
213
n
214
d
215
216
h
217
i
218
g
219
h
220
221
T
222
I
223
224
d
225
e
226
m
227
a
228
n
229
d
230
s
231
.
232
233
P
234
r
235
e
236
-
237
1
238
9
239
9
240
0
241
242
d
243
o
244
w
245
n
246
t
247
o
248
w
249
n
250
251
a
252
s
253
s
254
e
255
t
256
s
257
258
e
259
i
260
t
261
h
262
e
263
r
264
265
r
266
e
267
n
268
o
269
v
270
a
271
t
272
e
273
d
274
275
a
276
n
277
d
278
279
s
280
t
281
a
282
b
283
i
284
l
285
i
286
z
287
e
288
d
289
290
o
291
r
292
293
d
294
e
295
e
296
p
297
l
298
y
299
300
d
301
i
302
s
303
c
304
o
305
u
306
n
307
t
308
e
309
d
310
.
What Your OM Needs to Address
Return-to-office utilization data
Show actual badge swipe data, not just lease occupancy
Data to Include
Weekly utilization rates by tenant, peak vs. average daily occupancy, trend over past 18 months
Sublease competition mapping
Quantify direct sublease competition within 2-mile radius
Data to Include
Sublease inventory by class, asking rents vs. direct space, average sublease term
TI and capital expenditure reality
Market TI packages running $45-65/SF for Class A renewals
Data to Include
Recent TI deals by tenant size, actual vs. budgeted capital spending, deferred maintenance schedule
Parking ratio importance
DFW tenants expect 3.5-4 spaces per 1,000 SF minimum
Data to Include
Actual parking ratio, overflow/shared arrangements, EV charging infrastructure
Energy tenant exposure
Energy sector still major DFW office user despite volatility
Data to Include
Tenant industry breakdown, energy sector lease terms, renewal probability by sector
Floor plate efficiency metrics
Efficiency ratios matter more as tenants optimize space
Data to Include
Rentable vs. usable ratios, column spacing, HVAC zones per floor, conference room allocation
Investment Outlook
Short Term
Flight to quality continues. Class A assets in prime locations hold value while secondary inventory faces pressure. Expect more distressed sales as loan maturities hit overleveraged properties.
Medium Term
Stabilization likely by 2027-2028 as new supply remains limited and corporate relocations continue. Sublease space gets absorbed gradually. Winners and losers become clear by asset quality.
Long Term
DFW fundamentals remain strong — population growth, business-friendly environment, corporate relocations. Office demand stabilizes at new normal, probably 15-20% below peak but sustainable.
Buyer Profile
Value-add funds targeting Class B conversion opportunities, REITs buying trophy assets, local groups acquiring distressed properties for repositioning. International buyers less active than pre-2022.
Marketing a office property in Dallas-Fort Worth?
DealDraft generates professional offering memorandums with market-specific data and property-type expertise built in.
Create Your OM