Office Vacancy and Suburban Shift Redraw the Dallas Real Estate Map

Dallas illustrates a striking split in modern urban real estate. The wider metropolitan area is adding jobs and population, yet its historic downtown office district has become a weak spot as tenants opt for newer, amenity-rich suburban locations. Vacancy rates downtown have climbed into the high 20s while nearby submarkets like Uptown show far lower vacancy and strong leasing momentum as firms chase modern space, walkability and lifestyle attributes that older towers struggle to match. Major employers are reassessing their footprints and, in some cases, relocating or reducing space in the central business district in favor of environments they believe will better attract and retain talent.

This divergence reflects deeper structural shifts in office demand. Much of downtown’s stock was built in the 1970s and 80s and now feels...   ...more

RSK: This may be the thing of the future...downtown offices with higher vacancies than suburban. Look for adaptive reuses for downtown office space.