The Dallas Commercial Real Estate Market

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Principals, tenants, brokers, and landlords harness the power of Crexi’s commercial real estate tools to succeed in Dallas. On a nationwide basis, investors and businesses look at Dallas as a thriving market with stable fundamentals, promising growth, and attractive cap rates. 

Brokers, buyers, and tenants utilize Crexi’s commercial real estate tools to thrive in the Dallas market. Crexi equips interested parties with in-depth market research, a growing inventory of properties, and fast access to Dallas-specializing brokers.

Actively-seeking principals and tenants encompass approximately 92% of Crexi’s online traffic, using the platform to pursue their next investment.

In Dallas, Fort Worth, and the surrounding cities, brokers harness Crexi’s listing, lead management, and marketing tools to win deals. The simple, robust marketplace allows Dallas commercial brokers to directly connect with buyers and tenants who’ve already indicated an interest in the MSA.

As of this posting, Crexi’s tools have supported more than $440 billion nationally in property transactions. Since its 2016 launch, the platform has marketed properties totaling more than $5 trillion in value.

Crexi proudly serves Dallas, Fort Worth, Arlington, Plano, and the Metroplex’s entirety as the fastest-growing online commercial real estate marketplace.

The State of Commercial Real Estate in Dallas

The Dallas-Fort Worth Metroplex is an expansive area that encompasses dozens of cities in North Texas. The region is also known as DFW, reflecting its main metropolitan areas. Its strong economy, diverse culture, and vibrant nightlife have made it one of the largest metropolitan areas in the United States. With nearly 7.5 million people living in the region, it has something to offer everyone.

Dallas-Fort Worth is also an attractive area for commercial real estate investors and tenants looking for space to lease. With an abundance of businesses and job opportunities, the region has seen a steady increase in the amount of activity related to industrial and office leasing. 

In addition, the area’s pleasant climate, business-friendly regulations, and plentiful amenities make it a desirable place for companies to set up operations. DFW is home to some of the most recognizable corporate names in the world as well as a plethora of other thriving businesses, making it an ideal place for both tenants and investors alike. 

Dallas Regional Breakdown

Dallas is the fifth fastest-growing city in the US, with over 97,000 people moving to the metro area between June 2020 and July 2021. Collin County, just north of Dallas-Fort Worth, reported the second-largest population growth of any US county in 2021:

  • About 7.45 million reside in Dallas-Fort Worth, with the population growing by nearly 1.8% year over year, according to Data USA.
  • The City of Dallas gained nearly 107,000 new residents between 2010 and 2020, while Fort Worth grew by over 177,000, according to the most recent census.
  • DFW is the most populous metro area in Texas, the fourth largest in the US, and the tenth largest in the Western Hemisphere.
  • Principal cities in the Metroplex include Dallas, Fort Worth, Arlington, Plano, Irving, Denton, Richardson, and Grapevine.
  • Median age in Dallas-Fort Worth is 35.6, about 90% of the figure in the US and about the same as in Texas.

The Dallas Job Market

Dallas–Fort Worth is an attractive destination for tech-savvy professionals, with 23 Fortune 500 companies and the fourth-largest concentration of these large corporations in the US. It is often referred to as “Silicon Prairie,” due to the vast number of telecommunications, technology, energy, healthcare and medical research that drive the region’s economy. With major players such as Google located here, the area offers a wealth of opportunities for those who are seeking employment or business advancement, or commercial real estate investments.

  • GDP of Dallas-Fort Worth-Arlington is over $598 billion, an increase of more than 66% since 2011.
  • Unemployment rate in the region is 3.3%, according to the Bureau of Labor Statistics, about the same as it was pre pandemic.
  • Dallas Innovates reports that the Metroplex has one of the five fastest-growing economies in the country, due to the region’s tech and innovation hubs and diversity across all industry sectors.
  • The Silicon Prairie of North Texas, part of the Dallas–Fort Worth metroplex, is a hub for innovative technology companies working on semiconductor manufacturing and telecommunications.
  • Key industry clusters include business and financial services, education, food services, health services, information technology and telecommunications, retail, and energy and mining, according to the Dallas Fed.
  • Among the largest employers in Dallas-Fort Worth are AT&T, American Airlines, Lockheed Martin, Texas Health Resources, and Bank of America.
  • U.S. News and World Report ranks the Metroplex as one of the best areas to live and retire in the country.
  • Southern Methodist University, Texas Christian University, University of Texas – Dallas, University of Dallas, and University of North Texas are ranked as the top five colleges in the DFW area by Niche.com.
  • More than 87% of the residents are high school graduates and over 38% hold a bachelor’s degree or advanced degree, about 20% higher than the rate in Texas and 10% higher than the rate in the US.
  • The Metroplex boasts a winning combination of location and transportation infrastructure, including thousands of miles of interstate highways, three commercial airports, freight and passenger rail service, public transit, and high tech travel.
  • Dallas Fort Worth International Airport (DFW) connects the metro area with 28 major national and international hubs.

Dallas Industrial Market

Dallas-Fort Worth has the most space under construction than any other industrial market in the US. Demand for industrial space in the DFW area has skyrocketed and rental rates are at historical highs, increasing by 16% over the last year. Vacancies remain extremely low, with 14 million square feet of new leases signed during Q3 2022 alone. Here are the most recent industrial market statistics for Dallas-Fort Worth from Cushman & Wakefield:

  • Total industrial inventory: 887,811,230 SF
  • Average asking rent: $6.52/SF per year NNN
  • Vacancy rate: 4.8%
  • Absorption: 26,731,545 (through Q3 2022)
  • Key lease transactions by tenant: Pegasus Logistics 754,473 SF, Crate & Barrel 698,880 SF, Samsung 670,914 SF
  • New construction: Over 26 million SF delivered year to date, with more than 76 million SF currently under construction
  • Investment sales trends: $995.6 million year to date, market cap rate 5.6% (NAR) 
  • Largest industrial submarkets: Great Southwest, DFW Airport, South Dallas, Alliance

Find Dallas industrial space for lease.

Dallas Office Market

Office markets in Texas are slowly emerging from their pandemic slump, according to a recent release from the Federal Reserve Bank of Dallas. Office-type employment in key sectors such as professional and business services and financial activities is higher than before the pandemic. 

Employment and population growth in the Dallas-Fort Worth Metroplex remain strong and steady, with net absorption predicted to increase and vacancies expected to decline over the next 12 months. Here are the recent Dallas-Fort Worth office market statistics from Cushman & Wakefield:

  • Total office inventory: 247,179,837 SF
  • Overall average asking rents: $28.54/SF per year, full service gross
  • Vacancy rate: 21.0%
  • Absorption:  450,488 SF (through Q3 2022)
  • Leasing activity: 13,443,851 SF year to date
  • Key leases by tenant: Neiman Marcus 87,373 SF, Lument 62,694, and Weil, Gotshal & Manges LLP 44,127 SF
  • New construction: Deliveries in Q3 2022 totaled 741,876 SF with 5,994,871 SF currently under construction
  • Investment sales trends: $493 million in acquisitions in Q3 2022, market cap rate 6.9% (NAR Commercial Metro Market Reports Q3 2022)
  • Largest office submarkets: Las Colinas, Legacy/Frisco, Richardson/Plano, LBJ Freeway

Find Dallas office space for lease. 

Dallas Retail Market

Demand for retail space in Dallas-Fort Worth is driving occupancy levels to all-time highs, with the occupancy rate now higher than it was pre pandemic. CBRE reveals the grocery and luxury goods sectors are both hot, with H-E-B opening new locations in Frisco and Plano and the sales of luxury good soaring by nearly 19% despite rising inflation:

  • Total retail inventory:  309,779,129 SF
  • Average asking rent: $22/SF per year, NNN, according to the NAR
  • Vacancy rate: 5.3%
  • Absorption: 3,410,906 SF (through Q3 2022)
  • New construction: 1,150,338 SF delivered year to date
  • Investment sales trends (NAR): $154.6 million in acquisitions in Q3 2022, average sales price $332/SF, cap rate 4.8%
  • Median household income: $75,975, about 10% higher than the amount in Texas and the US

Find Dallas retail space for lease.

Dallas Multifamily Market

The demand and supply of multifamily units in Dallas and Fort Worth slowed down in Q3 2022, but it is still higher compared to any other city. Although deliveries are lower than 2021 levels at present, they will pick up significantly beginning 2023, according to the latest Market Insights Report from Northmarq. Apartment rents in the Metroplex are up 15.4% year over year, with investor transaction activity about the same as the number of deals done this time last year:

  • Total housing units: 3,020,276
  • Renter occupied: 40%
  • Multifamily inventory: 906,083 units
  • Average asking rent: $1,540
  • Rent growth: 15.4% year over year
  • Vacancy rate: 5.0%
  • New construction: 15,645 units delivered YTD, with  63,562 units under construction 
  • Investment sales trends: Median sales price $190,400/unit, about the same as in 2021, with cap rates averaging 4.5%
  • Per capita income: $39,141
  • Median age: 35.6, with 63% of the population between the ages of 18 and 64

Discover Dallas multifamily apartments for sale.

Want more data? Get more insights into the San Diego commercial real estate market with Crexi Intelligence.

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Shanti Ryle
Shanti Ryle

Content Marketing Manager

Shanti leads Crexi's content marketing strategies with 7+ years of content development experience, creating everything from blog posts to award-winning podcasts. Previously, she worked on content teams at Snapchat, Weedmaps, and HopSkipDrive as well as developed copy, articles, and media for freelance publications.

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