DFW Office Market Gains Momentum in First Half of 2026

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Key Takeaways

• Leasing volume reached 7.6 M SF during the first half of 2026, reflecting stronger tenant demand across North Texas.

• Trophy office buildings attracted the largest leases, while sublease inventory and overall availability continued to decline.

• Older office corridors, particularly downtown Dallas, still face elevated vacancy despite improving market fundamentals.

The DFW office market entered the second half of 2026 with stronger fundamentals than it has seen in several years.

According to Savills USA, tenants leased 7.6 M SF during the first six months of the year, up nearly 13% from the same period in 2025. At the same time, overall availability declined to 26% from 28.1%, and landlords continued pushing asking rents higher. The numbers suggest that office demand is broadening beyond headline relocations as companies commit to long-term workplace strategies.

Flight To Quality Continues

The market’s recovery remains centered on high-quality office space rather than a broad rebound across every asset. Companies from financial services, healthcare, technology, and legal sectors continued renewing leases, relocating to newer buildings, and upgrading workplace environments.

Savills also reported that roughly 2.5 M SF of sublease inventory disappeared over the past year. That reduction signals fewer companies are shedding excess space, a notable shift from the downsizing that defined much of the post-pandemic office cycle. Demand has remained consistently above the market’s five-year quarterly average instead of relying on a handful of major headquarters relocations.

The Details

Several large transactions helped reinforce leasing momentum across North Texas. GEICO signed more than 205,000 SF in Richardson, while Oncor renewed nearly 177,000 SF in Fort Worth’s central business district. Mercury One leased approximately 172,000 SF at 6655 N. MacArthur Blvd. in Las Colinas and plans to relocate its American Journey Experience Museum there. Welltower also committed to more than 140,000 SF after moving from Preston Commons to Preston Center.

Preston Center accounted for four of the market’s 20 largest office leases during the first half of 2026. Jones Day, Fifth Third Bank, and Arctos Partners joined Welltower in signing more than 200,000 SF combined. According to Savills, the submarket’s availability sits at just 6.8%, making it one of the region’s tightest office markets.

Premium Office Buildings Pull Ahead

The strongest leasing activity continues to favor newer, amenity-rich properties. Asking rents averaged $34.44 PSF through the second quarter of 2026, up from $32.89 PSF a year earlier, according to Savills. Uptown remains North Texas’ most expensive office submarket at roughly $60 PSF, reflecting sustained demand for premier buildings.

Other submarkets also captured significant activity. The North Dallas Corridor and Las Colinas each landed four of the year’s 20 largest leases. Public Storage’s 122,500 SF headquarters move to Hall Park in Frisco highlighted continued corporate interest in suburban office locations offering modern space and strong amenities.

Why It Matters

The latest leasing figures suggest the DFW office market continues to outperform many large US office markets, but the recovery remains uneven. Demand is concentrating in the highest-quality buildings, allowing landlords to raise rents and tighten availability even as older properties struggle to compete.

Downtown Dallas illustrates that divide. Savills reported the central business district posted a 33.9% availability rate during the first half of 2026, placing it among the region’s weakest-performing submarkets. Leasing activity continues, but transactions tend to be smaller than those occurring in suburban trophy buildings. That pattern mirrors a national trend in which tenants increasingly prioritize building quality, amenities, and employee experience over simply reducing occupancy costs.

What’s Next

The second half of 2026 will test whether leasing momentum can continue without relying on major corporate relocations. Market watchers will also follow potential large transactions, including Morgan Stanley’s reported evaluation of Fountain Place, which could provide a meaningful boost to downtown Dallas.

For now, the data points to a healthier office market than North Texas has seen in years. Leasing activity remains steady, sublease inventory continues to shrink, and premium office assets are widening their lead over older buildings. The next phase of the recovery will depend on whether that strength expands beyond the region’s top-performing submarkets.

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