Dallas-Fort Worth Office Market Shows Signs of Strong Recovery in Q1 2025
The Dallas-Fort Worth (DFW) office market is beginning to show encouraging signs of recovery and stabilization, as highlighted in Savills’ Q1 2025 Market in Minutes (MIM) report. Despite challenges in recent years, the first quarter of 2025 reveals a rebound in leasing activity, improvements in availability rates, and significant rental rate growth, pointing toward renewed optimism among tenants and investors.
✅ Key Market Indicators (Q1 2025 vs Q1 2024)
| Metric | Q1 2024 | Q1 2025 | Y-O-Y Change |
|---|---|---|---|
| Total Inventory | 216.5 million sq ft | 218.8 million sq ft | +2.3 million sq ft |
| Availability Rate | 29.9% | 28.1% | -180 basis points |
| Average Asking Rent | $30.57 | $32.88 | +7.6% |
| Class A Asking Rent | $33.74 | $36.88 | +9.3% |
| Leasing Activity | 2.2 million sq ft | 3.5 million sq ft | +1.3 million sq ft |
| Sublease Availability | 9.9 million sq ft | 8.8 million sq ft | -1.1 million sq ft |
The report reveals a robust 59% increase in quarterly leasing activity, signaling increased occupier confidence and market fluidity. Additionally, the sharp decline in sublease space suggests that more companies are opting for permanent space solutions, a positive indicator for long-term stability.
🏙 Submarket Performance
The report breaks down rental rates and availability across key DFW submarkets:
Highest Rental Rates:
Uptown – $60.49/sf
Preston Center – $50.31/sf
Central Expressway – $36.14/sf
Lowest Availability Rates:
Uptown – 8.5%
Preston Center – 9.0%
Central Expressway – 12.2%
These elite submarkets continue to outperform the broader DFW region, attracting premium tenants willing to pay for Class A spaces with top-tier amenities.
💼 Top Transactions of Q1 2025
Several notable leases and relocations drove the leasing volume this quarter:
| Tenant | Industry | Submarket | Size (SF) | Type |
|---|---|---|---|---|
| Toyota Financial Services | Financial Services | North Dallas Corridor | 241,452 | New Location |
| Geico | Financial Services | Richardson Telecom Corridor | 165,107 | New Location |
| Amazon (via WeWork) | Coworking | West LBJ | 154,546 | New Location |
| Jackson Walker | Legal Services | Dallas CBD | 147,915 | Renewal/Expansion |
| Sally Beauty Holdings | Retail | North Dallas Corridor | 139,068 | Relocation |
These deals highlight sustained interest from both traditional office users and modern hybrid operators, with sectors like finance, legal, and tech leading the charge.
🔍 Market Outlook
Savills forecasts continued improvement throughout 2025 as occupier sentiment strengthens and employment in office-using sectors stabilizes. Rising rents and falling vacancy suggest landlords may begin regaining leverage in select submarkets.
📥 Download the Full Report
For a deep dive into DFW’s submarket performance, employment trends, and leasing activity:
👉 Download the full Savills Q1 2025 Dallas-Fort Worth Office Report
Source:
Savills. Dallas-Fort Worth Office Market in Minutes – Q1 2025. Savills Research.
Financial advisor consulting property purchase with client at office.