Dallas-Fort Worth, TX – Today Avison Young released its Fourth Quarter 2024 Office Market Report for Dallas-Fort Worth (DFW). 

After increases from 2019 through 2023, DFW’s office market saw availability for both direct and sublet space come down notably during 2024. As of Q4 2024, total space availability came down more than 6 million square feet (msf) during the year, with the fourth quarter alone seeing a decline of 3.4 msf. 

This is the first consistent quarterly improvement we have seen in the market this cycle. Space availability now totals 64 msf. This is well below the 71 msf peak hit in 2023 but still elevated compared to the 50 to 52 msf quarterly average prior to this cycle. Likewise, net office absorption continued the positive trend it began in the last half of 2023. The difference this time is that we saw no quarter-to-quarter negatives, resulting in 2024 coming in at 1.7 msf.

“Office space availability and absorption have improved and held steady quarter-to-quarter for the first time in a long while. Although DFW is not back to its strong pre-2020 metrics, this is a positive trend that suggests more balance should be returning to the market,” said Avison Young Senior Insight Analyst, Walter Bialas.

For 2024, the market saw leasing activity total 15.5 msf. This is fully 1 msf above 2023‘s pace but continues to fall short of DFW’s historic annual average of 20 msf. Importantly, the demand stability that appears to have returned will improve market sentiment in 2025.

“As I noted last quarter, data points are lining up indicating that we have reached the bottom of this cycle and are now beginning the climb back to ‘normal.’ Q4 2024 stats showed continued improvement across the board. Availability has improved materially, and vacancy has stabilized,” stated Greg Langston, Principal and Managing Director of the firm’s Dallas office. “We continue to see solid demand for top-quality buildings in walkable locations.”