Downtown Dallas now has the second-highest office vacancy rate among major U.S. city centers, trailing only Seattle, according to a new report by The Wall Street Journal.
The analysis places Dallas well above the national average as companies continue to reassess office needs in the wake of remote and hybrid work.
The report shows vacancy rates remain elevated in many central business districts nationwide, but Dallas stands out despite strong population growth across North Texas. Office occupancy downtown lags behind nearby areas such as Uptown and suburban business corridors, where newer buildings and mixed-use development have drawn tenants.
Commercial real estate analysts cited by the Journal point to long-term shifts in workplace habits, along with an oversupply of older office space in downtown cores. Local leaders and developers have increasingly focused on office-to-residential conversions and redevelopment projects as part of broader efforts to revive downtown activity.
City officials and economic groups have said downtown Dallas continues to see investment in housing, retail, and public spaces, even as office demand remains uneven. Those redevelopment efforts are expected to play a key role in shaping the area’s recovery over the next several years.
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