It’s a classic story: Not every real estate sector can stay hot all the time, and we’re seeing that narrative play out in DFW. Office space, in particular, is trying to find its way while tenant demands rapidly evolve. But don’t mistake “challenging” for “impossible.” Creativity, adaptability, and a strong sense of market timing are all you need to uncover opportunity in today’s slower sectors.
Let’s dig into the office sector’s most pressing trends and consider where creativity and innovation can help investors and brokers unlock their greatest potential.
The elephant in the room? Vacancy rates. Office real estate is feeling the effects of hybrid work models and corporate belt-tightening, which has reduced demand for traditional office space. According to Savills US Q2 2025 Office Report, vacancy across DFW sits at a hefty 22-25%, and the story isn’t much rosier for the older Class B properties scattered throughout the metro.
But zoom in on the details, and the market becomes more nuanced. Submarkets like Uptown Dallas and Las Colinas are outperforming according to Hartman Properties’ Real Estate Outlook, driven by their Class A buildings, which cater to the “flight to quality” trend. In an era where tenants prefer smaller, highly amenitized offices, assets with flexible leases, spec suites, and high walkability are securing leasing velocity.
What about Class B spaces? In many cases, they paint a bleaker picture, with negative absorption and declining rents. Converting these spaces into functional, in-demand products won’t happen overnight, but brokers and developers who think outside the box have a chance to capture untapped value.
The solution? Repositioning. From upgrading interior design to stand out in competitive submarkets, to diving headfirst into ambitious office-to-residential conversions, repositioning Class B assets can spark real returns for those ready to invest in transformation.
When the market changes, opportunity multiplies—it just takes a little vision and the willingness to adapt. For those navigating Dallas’s current CRE market, the key lies in staying forward-focused, even in sectors that look a little uncertain.
