12/23/2025
DFW Office Market Update โ December 2025
The DallasโFort Worth office market is showing early signs of renewed momentum as we close out 2025. Market fundamentals, while still stabilizing, point toward a gradual but meaningful improvement across the region.
Market vacancy has tightened to 17.9%, down from 18.15% one year ago an encouraging shift after several years of elevated vacancy levels. While the path to full recovery remains steady rather than swift, the trend is decisively moving in the right direction.
Demand has improved considerably. Over the past 12 months, the DFW market recorded 2,265,628 square feet of positive net absorption, a substantial increase compared to 793,159 square feet during the prior 12-month period. This rebound reflects growing corporate confidence and a clearer return-to-office strategy among tenants.
New supply is also cooling. Twelve-month net deliveries fell to 1,625,059 square feet, down from 3,900,946 square feet a year earlier. The moderation in construction activity is helping the market slowly rebalance by reducing the pressure created by prior years of elevated development.
Looking ahead, approximately 4 million square feet remains under construction and is expected to deliver over the next 12 months. While still meaningful, this pipeline is manageable relative to market size, and paired with rising absorption, positions DFW for continued stabilization in 2026.
*All data referenced in this update is sourced from CoStar Group.