Commercial Office Leasing Across the Dallas-Ft. Worth Submarkets
The Dallas commercial office leasing market has rapidly grown over the past decade and is poised for continued growth. Almost 7.4 million people now live in the Dallas-Fort Worth metropolitan area. Commonly referred to as DFW, or The Metroplex, it consists of 13 counties. DFW is Texas’s largest metro, the largest inland metro in the nation, and the fourth largest of all US metro areas. DFW is larger than the states of Connecticut and Rhode Island combined.
- Commercial Office Leasing Across the Dallas-Ft. Worth Submarkets
- Dallas-Fort Worth Commercial Office Leasing Submarkets
- Downtown Dallas CBD
- Central Expressway
- South Dallas Submarket
- Far North Dallas Submarket
- Las Colinas/ DFW Airport Submarket
- LBJ Submarket
- Preston Center Submarket
- Richardson/ Plano / Allen / McKinney
- Stemmons Freeway
- Uptown/Turtle Creek Submarket
- Mid-Cities, Arlington, Irving, Grand Prairie Submarkets
- Arlington / Mansfield Submarket
- Fort Worth CBD Submarket
- North/ NE Fort Worth Submarket
- South Fort Worth Submarket
- We Can Handle Your Dallas Commercial Real Estate Needs
- Dallas-Fort Worth Commercial Office Leasing Submarkets
Dallas has 1.2 million residents while Fort Worth has over 800,000. Several Metroplex cities have populations of over 200,000 including Arlington, Plano, Garland, and Irving. A number of other cities, like McKinney, Frisco, and Carrollton have over 100,000 residents. The Metroplex continues growing day by day, with almost 400 people relocating here to job pursue opportunities and a lower cost of living. All of these people need commercial offices to work in and those Dallas-area offices need commercial office leasing.
DFW has attractions for visitors of all ages like the Dallas World Aquarium, the Fort Worth Zoo, Six Flags Over Texas in Arlington, the Fort Worth Stockyards National Historic District, and Dallas’ Sixth Floor Museum and Dealey Plaza. Sports fans can watch “America’s Team” (the Dallas Cowboys) play at the 80,000 seat AT&T Stadium in Arlington, the nation’s largest domed stadium.
The Metroplex is also home to DFW Airport (Dallas/Fort Worth International Airport), the Lone Star State’s largest and busiest airport. Based on land area, it is the nation’s second largest airport and the world’s sixth largest. According to 2017 statistics from the Airports Council International, it is also the world’s 12th busiest airport.
Dallas-Fort Worth Commercial Office Leasing Submarkets
Below are some major Metroplex commercial real estate submarkets and details about each one:
Downtown Dallas CBD
This revitalized submarket has experienced some of the greatest rental growth and leasing of commercial offices in central Dallas. It also boasts the longest average lease terms of any submarket. The CBD has about 30 MSF of multi-tenant office space and over 20 MSF of Class A space representing 75% of the total inventory in the CBD.
North of the Dallas CBD, Central Expressway has many existing Class A and B office buildings and others under construction. Vacancy is stable, but rents have risen slightly. However, the Central Expressway is great for tenants who face rising rents in areas like Preston and Uptown.
South Dallas Submarket
Abundant land at reasonable prices and its location near several major transportation arteries makes South Dallas ideal for the distribution market (import, storage, and export of goods). Although it is a hub of industrial and logistics, more recent development has included smaller projects.
Far North Dallas Submarket
In the booming Metroplex, the Far North (beyond the LBJ corridor) has experienced some of the strongest growth. This submarket has the highest concentration of construction in the entire DFW metro. In recent years, millions of square feet of new projects have been completed. At present, there are 42 MSF of rentable space in Far North Dallas.
Las Colinas/ DFW Airport Submarket
Situated northeast of Dallas CBD and north of Mid-Cities, this area has also seen millions of square feet of new projects completed in the past few years. It now has over 30 MSF of rentable space.
North of Preston Center, LBJ has almost 20 MSF of rentable space. After experiencing several years of decline beginning in 2008, it finally bottomed out in 2012. Since then, the LBJ submarket has made a strong comeback in the office sector.
Preston Center Submarket
North of Dallas CBD and Uptown/Turtle Creek, this increasingly popular submarket has seen an increase in rental rates, as well as vacancies, over the past few years.
Richardson/ Plano / Allen / McKinney
North of LBJ Freeway. State Farm’s relocation to Richardson and the arrival of Toyota’s US headquarters to Plano boosted the submarket’s profile and produced an influx of new corporate tenants. To keep up with growth, multifamily developers have added over 20% of the 24,411 new apartments in the DFW Metroplex in this submarket.
This corridor follows I-35 to the northwest of Dallas CBD and has a good number of office towers and hotels. In addition, property in this submarket makes up 20% of Dallas’ tax base.
Uptown/Turtle Creek Submarket
Directly north of Dallas CBD. Another increasingly popular submarket with approximately 11 MSF of multi-tenant office space, 87% of which is Class A.
Mid-Cities, Arlington, Irving, Grand Prairie Submarkets
With cities like Arlington, Irving, Grand Prairie, this suburban area between Dallas and Fort Worth has been one of the least active DFW submarkets in recent years. Higher vacancy rates than the rest of the DFW metro area making it ideal for tenants looking to lease commercial office space.
Arlington / Mansfield Submarket
One of the bright spots in the Mid-Cities, this submarket has experienced great gains over the past couple of years. In fact, Arlington / Mansfield led all of DFW in quarterly direct net absorption gains at the end of Q2 2017. This is partly due to a new Class A built-to-suit project coming online along with several large Class B quarterly move-ins.
Fort Worth CBD Submarket
30 miles west of Dallas CBD is Fort Worth CBD. Although the FW CBD had some big losses in 2017, it is poised for new Class A tenants. This year, the $115 million Frost Tower will be completed. In addition, there are seven hotels planned or under construction in the CBD. And in the near future, the 27-mile TEXRail, scheduled to begin operating in late 2018, will connect downtown Fort Worth to DFW Airport.
North/ NE Fort Worth Submarket
Like Mid Cities and some other Metroplex submarkets, this area has experienced elevated vacancy rates making it attractive to tenants seeking to lease commercial office space around Fort Worth.
South Fort Worth Submarket
This desirable area to do business has one of the highest occupancy rates in DFW. At the end of Q2 2017, South Fort Worth reported some of the largest annual Class A rent increases – 9.1%.
We Can Handle Your Dallas Commercial Real Estate Needs
We can help you lease your Dallas area office and medical spaces. Learn more about our commercial real estate services in Dallas and all of DFW by reading: Dallas-Area Commercial Office Brokers or Dallas-Ft. Worth Metroplex Commercial Property Management Services.