Downtown News

Dallas ranks near top of the list of highest office vacancies in U.S.

Downtown Dallas skyline.

Photo by R K on Unsplash

A new study of the office rental market in the U.S. has unfortunate news for Dallas' office scene: It puts Dallas-Fort Worth at the third highest rate of office vacancies nationwide.

According to a report by Indian service provider Outsource2India, 18 percent of all office space in DFW is sitting empty — a figure that has grown by 2.3 percent since 2023. So don't go blaming the pandemic, at least not directly.

Metropolitan areas in Texas and California dominate the list of top 10 cities with the highest vacancy rates. San Francisco tops the list with a staggering 21.7 percent of vacant office space — meaning that more than one out of five offices are empty.

Houston comes close at No. 2 with a vacancy rate of 18.6 percent. Austin comes in behind Dallas at No. 4 on the list, with a 16.7 percent office vacancy rate.

While climbing office vacancies have been attributed to the pandemic, the report notes that the situation has worsened over the last 12 months, with an average increase in vacancy rates of 11 percent — underscoring the significant challenges in commercial real estate right now.

The study dovetails with other workspace trends including the rising demand and popularity of remote and hybrid professions since the COVID-19 pandemic.

Outsource2India suggests major businesses in cities like Dallas will need to reimagine their work culture and office spaces in order to compete with flexible work models.

“As remote work continues to reshape workplace dynamics, there is a pressing need for this market to evolve and adapt,” the report says.

Dallas commutes aren't getting any easier (nor are the city's drivers getting any better), and more workers are starting to look for less commute-heavy vocations in suburbs with top job markets.

The top 10 metro areas with the highest office vacancy rates are:

No. 1 – San Francisco, California
No. 2 – Houston, Texas
No. 3 – Dallas, Texas
No. 4 – Austin, Texas
No. 5 – Washington, D.C.
No. 6 – Chicago, Illinois
No. 7 – Denver, Colorado
No. 8 – Phoenix, Arizona
No. 9 – Los Angeles, California
No. 10 – San Jose, California

Outsource2India tracked office rent prices in major U.S. metropolitan areas for 2023 and 2024 to discover the top 10 metro areas with the highest office vacancy rates using data from the National Association of Realtors (NAR).

The full report can be found on outsource2india.com.

reports real estate market office rental market

Love this listing

Extraordinary modern ranch in Grapevine trots onto market for $7.2 million

Photo courtesy of Briggs Freeman Sotheby’s International Realty

The Willow Wood Horse Farm in Grapevine is on the market for $7.2 million.

A stunning, 10-acre North Texas property that's fit for a modern cowboy has just hit the market for $7.2 million: Called the Willow Wood Horse Farm, the equestrian paradise is located on West Kimball Avenue in Grapevine, about 30 miles northwest of downtown Dallas.

The ranch is a combination of elegant and thoughtful modern design paired with all of the practicality required of a fully functioning farm.

According to the listing, which is held by Burgher-Ray Ranch Group and managed by David Burgher and Harlan Ray, the ranch includes several fenced pastures, an enclosed and insulated shop storage building with concrete flooring, and a seven-stall horse barn.

A covered and irrigated riding arena is attached to the barn, every stall has its own turnout, and six of the stalls are 12 feet by 12 feet wide, and the seventh is designated as a foaling stall. An additional turnout for grazing is located adjacent to the barn, as well as a training pen.

Willow Wood Horse Farm in Grapevine, ranch for sale The horse barn has seven stalls with individual turnouts.Photo courtesy of Briggs Freeman Sotheby’s International Realty

But the focal point of the entire estate is the 4,353-square-foot, three-story primary residence that sits at the highest point of the gently sloped property. The home was custom-designed and completed in 2022, featuring an exterior made of metal cladding, concrete, durable ipe hardwood, and glass.

From the front door, guests will see views that lead through the home's living areas and into the 3,000-square-foot back deck, past the 80-foot-long saltwater swimming pool, and out toward the pastures.

The chef's kitchen is outfitted with luxurious Gaggenau appliances, such as a steam convection oven, a conventional convection oven, a coffee machine, stove, dishwasher, a separate paneled refrigerator and freezer, and a warming drawer. A half bathroom and full butler's pantry is located to the side of the kitchen, which is equipped with a prep space and a dishwasher.

Additional features of the home include:

Koi ponds located on either side of the main door that welcome guests to the home
An open concept living space that contains the living room, kitchen, and dining rooms
A primary suite with a spacious walk-in closet and en-suite bathroom
Two additional bedrooms with en-suite bathrooms
Soft opening/closing doors in all main bedrooms
Dynaudio speakers installed throughout the home
Geo-thermal heating/cooling system

A custom-built metal spiraling staircase connects all three levels of the home. The second floor includes a viewing area with floor-to-ceiling windows and access to the covered porch and rooftop deck. The lower level leads to an "acoustically balanced" underground home theater featuring eight-foot concert walls, Dynaudio speakers, an Ember Audio sound system, a 250-bottle wine cooler, and a powder bathroom. The listing notes that this area could be converted into a storm cellar.

Willow Wood Horse Farm in Grapevine, ranch for sale The underground home theater has an impressive Ember Audio sound system with Dynaudio speakers.Photo courtesy of Briggs Freeman Sotheby’s International Realty

A detached three-car garage is located next to the home, and has one EV charging station and two additional outlets for charging. Discreetly designed solar panels are hidden on top of the garage, which are capable of powering the entire residence.

The horse barn, irrigation system, and stock pond all run off of a water well located on the property, while the primary residence uses city water with a filtration system.

"Situated in the heart of the Dallas-Fort Worth Metroplex, just minutes from Lake Grapevine, Southlake, and an easy commute to DFW International Airport, this property affords someone the ability to have all the comforts of the city, while living just slightly removed from it all," the listing says.

Photo courtesy of Briggs Freeman Sotheby’s International Realty

The Willow Wood Horse Farm in Grapevine is on the market for $7.2 million.

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