Already the ninth largest city in the U.S., Dallas is also one of the fastest-growing cities and offers a variety of office space that is extremely attractive for many in the legal, tech, and energy sectors. Dallas has the largest concentration of corporate headquarters in the U.S., and commercial tenants will find themselves neighbors with Fortune 500 companies such as AT&T, Energy Transfer Equity, and Texas Instruments. Dallas is also home to approximately 3,000 tech companies and is considered the heart of “Silicon Prairie.” Startups like Spar Information Systems, S2 Capital, Newline Interaction, and Alkami Technology ranked on Inc. Magazine’s Top 500 list of fastest growing companies.
Aside from working alongside some of the biggest names in business, there are plenty of reasons to love living and working in Dallas. The vibrant city culture is characterized by a thriving arts district, an international food scene, and, of course, the Dallas Cowboys. An abundance of outdoor spaces, museums, and multiple entertainment options fill the area.
Office Space | Dallas Lease Data & Trends
The Dallas-Fort Worth office space market is the fifth largest in the country, trailing only New York City, Washington, D.C., Chicago, and Los Angeles, and boasts nearly 225 million square feet of inventory and another 6 million under development. Around 60 percent of Dallas’ office space is Class A, with citywide asking rents averaging $30 per square foot. The remaining 87 million square feet of Class B space rents for an average of $21 per square foot. Asking rents continue to reach and exceed record highs across the DFW metro.
The main driver of Dallas’ commercial real estate health is Class A demand, primarily in new or recently upgraded space. In the Uptown-Oak Lawn neighborhood, Park District PwC Tower and The Union recently received certificates of occupancy, and should drive more leasing activity in the coming quarters. While new development is low, many buildings are undergoing redevelopment to create more desirable modern work spaces, and landlords are competing to attract tenants. Dallas is expected to see continued growth in the legal, insurance, accounting, and tech industries in 2018 and beyond.
Dallas Office Space | Average Asking Rents per Square Foot
|Class A||Class B|
|Far North Dallas||$32||$23|
|Downtown Fort Worth||$31||$23|
|Suburban Fort Worth||$21||$20|
Dallas Office Space for Lease | Popular Neighborhoods
Encompassing the Arts District, West End Historic District, the Main Street District, and the Farmers Market District, Dallas CBD is the prime downtown location for companies who want to be in the middle of the city without paying the price for an Uptown location. The CBD is the most walkable neighborhood in Dallas and has excellent public transportation options, with 33 bus lines and the Blue, Red, Orange, and Green lines all passing through the area. Downtown Dallas has more than 40 million square feet of office space, the majority of which is Class A. These spaces have average asking rents of $32 per square foot, while Class B spaces can be leased for $25 per square foot.
Located just a couple of miles north of Dallas CBD, Uptown is one of the more expensive neighborhoods driven by a low vacancy rate of 10.7% for Class A property. The district includes Oak Lawn and the affluent Turtle Creek neighborhood and features lots of mixed-use buildings have made Uptown a go-to community for young professionals. The Red, Blue, and Orange line all stop in Uptown. Office space in Uptown/Oak Lawn rents at an average of $42 per square foot in Class A buildings, and $35 per square foot in Class B buildings.
Far North Dallas is approximately designated as the area north of Lyndon B. Johnson Freeway up to President George Bush Turnpike, with Dallas North Tollway defining the west side. Many real estate agencies, food products suppliers, and insurance companies rent office space in Far North. According to a recent report by Cushman & Wakefield, Far North has the most extensive CRE inventory in all of Dallas, with over 46 million square feet and another 2.5 million under construction. The average asking rent in Far North Dallas is around $32 per square foot for Class A office space, and $22 per square foot for Class B space. The Red and Orange Lines have routes on the east side of Far North Dallas, but most choose to drive to and from work.
Las Colinas has an upscale vibe that attracts the corporate headquarters of companies like ExxonMobil and Kimberly-Clark, as well as the studios of ESPN Dallas and Fox News. The Irving neighborhood is just a few minutes east of DFW International Airport and with an abundance of luxury hotels, landmark office towers, and country clubs in the area, Las Colinas provides the perfect environment to host business guests. With more than 1.8 million square feet of construction underway, Las Colinas and Irving will continue to be an in-demand sub-market. Las Colinas is served by the Orange Line as well as the Las Colinas APT System on weekdays until 6 PM. The North Irving Transit Center provides an express bus route to Downtown.
Locals refer to the partial loop of Interstate 635 around Dallas as LBJ Freeway. Many corporate headquarters cluster around the intersection of LBJ Freeway and Dallas North Tollway, and the area is popular for business management consultants. Proximity to the freeway is a huge benefit for drivers, and prices for Dallas office space drop to an average of $23 per square foot.
North Central Expressway is bordered by Highland Park and University Park to the west, and Lower Greenville, Northeast Dallas, and Vickery Meadow to the east. Part of US Highway 75, North Central Expressway connects Dallas to McKinney and is considered one of the most attractive urban freeways. Many law offices rent office space along North Central Expressway. For those who don’t drive, the DART light rail system runs underneath to Mockingbird Station.
Expanding around Preston Center Plaza, this neighborhood offers premier retail as well as significant amounts of office space. Class A properties in Preston Center tie with Uptown for the highest average rent of $42 per square foot. Many realtors and real estate developers rent office space in Preston Center. Located between Preston Hollow and University Park, Preston Center is easily accessible by car, DART, or bus.
Richardson is home to Telecom Corridor, a 6.5-mile strip along US 75 dotted with the headquarters of over 5000 companies including Texas Instruments, AT&T, Sprint, and Verizon. The insurance industry also makes up a significant portion of Richardson’s employment base. Plano is located a few miles north of Richardson, with many corporate campuses along Legacy Drive such as Toyota, J.C. Penny, and Frito-Lay. Companies can lease office space in Richardson and Plano for below the city average, while only being 30 minutes away from Downtown via the Orange and Red Lines.
Located near the Trinity River, Stemmons Freeway has a considerable amount of office space available at the lowest prices in Dallas. Companies in the medical sector will find themselves in proximity to St. Paul’s Hospital, Southwestern Medical Center, Parkland Memorial Hospital, and Dallas County Children’s Hospital. The DART Orange and Green Lines service the area, and the Trinity Railway Express commuter rail stops at Medical/Market Center.
Getting Around Dallas
Dallas is a driver’s city. Average households own one or two cars, and driving is the recommended and preferred mode of transportation, especially for those living in the suburbs.
Some of the major highways and interstates in Dallas include I-35 E, I-35 W, I-20, I-30, LBJ Freeway, US Route 75, Dallas North Tollway, and Stemmons Freeway. Dallas has an abundance of public parking with plenty of ride sharing options.
Employees who live near one of Dallas Area Rapid Transit’s (DART) 61 stations can commute to work on the Red, Blue, Green, or Orange Lines. The Trinity Railway Express also connects Dallas to Fort Worth, providing a convenient commute between the two cities. DART operates local and express bus routes that serve 12,500 stops in the Dallas-Fort Worth Metroplex.
Dallas posses a low WalkScore rating due to its spread out nature. Downtown Dallas and Uptown are the two most walkable areas, and efforts are being made to increase the number of on-street bike lanes for safer transportation by bike. Free service on the McKinney Avenue Trolley is also available in Downtown.
The presence of Dallas-Fort Worth International Airport, the headquarters of American Airlines, makes Dallas an ideal location for companies that require a lot of business travel. Flights with Southwest and other low-fare carriers can be made through Dallas Love Field Airport, located about six miles north of Downtown.