DFW’s economy continues to gain strength. Jobs have expanded consistently, as total employment continues to hit new peaks. Overall, jobs are up 9.1% from the late 2019 watermark and office jobs have risen 172,500, translating into 16.2% growth, driven in part by ongoing organic business expansions and relocations.
Major office metrics look to be slowly stabilizing, although uncertainty remains a concern. Overall, Avison Young anticipates it will require several quarters to show meaningful recovery in vacancy, sublet availability, and return to the office.
“The trend for tenants to move to higher quality office buildings is anticipated to continue into 2023 and will create additional vacancy at less desirable buildings as tenants seek better space at the optimum location for their workforce,” noted Greg Langston, Principal and Managing Director for Avison Young’s Dallas office. “Newer, Class A property is in high demand, beating the market’s vacancy averages by 10-plus percentage points.”
“Despite DFW’s strong employment growth, office vacancy and availability inched higher in 2022. Total vacancy is the highest since the 1980s and sublet vacancy is where it was at the 2000s tech downturn,” said Avison Young Senior Insight Analyst, Walter Bialas.