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 1.3% 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 US by 2035.
Rent Growth Continues Despite Rising Vacancy
Dallas Fort Worth office vacancy ticked slightly up in the first half of 2024 compared to 2023. Going from 55.5 to 66.5.
Office prime rent took a decline compared to 2023 but is still about pre-pandemic rent numbers.
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. Mid-way through 2024, real estate investment has reached $385 million.
Office investment is down to 13 million. With the average office prime cap rate staying the same from 2022 through 2024. Transactions are expected to be significantly lower than 2023.
