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Leasing activity up year over year as office demand remains resilient
Leasing activity continues to remain resilient with the Dallas-Fort Worth office market seeing 3.0 million square feet (msf) leased in Q4 2024. Significant transactions, such as Merrit Energy leasing 104,034 square feet (sf) in Dallas and Halff Associates leasing 80,000 sf in Richardson contributed to the positive leasing trend observed year over year. Leasing for 2024 saw an 18% increase compared to prior year, with large renewals and relocations attributing to this increase. The North Dallas Corridor submarket continues to be an active submarket, seeing two of the top transactions this quarter and contributing to approximately 25% of the total leasing observed. Availability has decreased 251 basis points year over year. However, given the pipeline of new construction, which totals around 4.5 msf of mostly speculative development, availability will likely increase over the near term.