Job Growth Continues in Dallas-Fort Worth
Economic growth continued in Dallas-Fort Worth market during 2024. After two years of above-average growth, service employment continues to decline to 1.6% year-over-year. This is down from 3% at the end of 2023. Long-term forecasts predict Dallas-Fort Worth will continue to grow, likely surpassing Chicago as the third largest market in the U.S. by 2035.
Rent Growth Continues Despite Rising Vacancy
Dallas-Fort Worth office vacancy ticked slightly up in 2024 compared to 2023 going from 18.4% at year-end 2023 to 19.5% at year-end 2024. Asking rents edged up only slightly during the year, at 2.1%. However, office prime rents jumped 5.0% given strong demand for quality space.
Investment declines due to capital market conditions
As the case elsewhere, reduced liquidity continues a sharp decline in commercial property transactions in Dallas-Fort Worth. Through 2024, real estate investment reached $2.5 billion. Office investment is down to $410 million. The average office prime cap rate is 6.4% at year-end 2024, a slight up tick from 2023.
