Figures
Dallas/Fort Worth Office Market Figures Q4 2022
January 24, 2023
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- Despite an uncertain economic environment heading into 2023, Dallas/Fort Worth continued to outpace national job growth, as shown by the metro’s annual employment increase of 6.1% from November 2021 to November 2022.
- The office-using sector of Professional & Business Services led all other DFW industries in terms of absolute employment gains, adding 51,700 jobs year-over-year at an even higher rate (7.1%) than the overall market.
- Marketwide net absorption, a metric based on physical occupancy, ended the year on a positive note with just over 700,000 SF for Q4 2022, yielding about 1.8 million sq. ft. for 2022.
- At the close of 2022, total vacancy (direct plus sublease vacancy) landed at 24.5%, which equates to nearly 57 million sq. ft. spread across DFW and mostly concentrated in the submarkets of Far North Dallas, Las Colinas, and Dallas CBD.
- The under construction pipeline dipped slightly to just under 5 million sq. ft., with a preleased rate of 18% at year-end.
- Sublease availability was essentially flat from Q3 2022 to Q4 2022 with 9.5 million sq. ft. listed throughout CBRE Research’s tracked dataset at year-end, predominantly in Class A properties.
- Leasing activity, a leading indicator of net absorption, decelerated throughout the latter part of the year, as well as large tenant requirements actively in the market for new space or lease renewals.