Dallas Commercial Office Space for Rent

Q3 2026

Q3 2026 Dallas Commercial Real Estate Market Report

Focus: Q3 2026 Market Trends

Executive Summary

Dallas office absorbed 1.26 million SF through the first three quarters of 2026, led by Uptown/Turtle Creek and Legacy/Frisco, and Morgan Stanley signed 673,248 SF at 2401 McKinney. DFW industrial vacancy fell to 7.8%, while the region has 33.91 million SF under construction, the most of any U.S. market. On TenantBase, office demand nearly quadrupled to 50.0% of Dallas tenant searches, up from 13.1% in Q2.

Sector Snapshot

  • Office: Uptown leads. Dallas vacancy was 24.8%, with Uptown/Turtle Creek absorbing 209,584 SF in Q3.
  • Industrial: Tightening. DFW vacancy fell to 7.8% from 8.9% a year earlier.
  • Retail: Record occupancy. DFW retail occupancy held at 95.3% at midyear.
  • Multifamily: Supply heavy. Average asking rent was $1,524, down 1.6% year over year.

Dallas Tenant Demand Index

The TenantBase Tenant Demand Index tracks what businesses across the Dallas region are actively searching for on the TenantBase platform each quarter. Because it measures tenant intent before leases are signed, it shows where demand is heading ahead of traditional vacancy and absorption data.

Q3 2026 Search Share by Space Type (July 1 to September 30, 2026)

  • Office: 50.0%
  • Retail/Storefront: 47.6%
  • Warehouse/Industrial: 2.4%

Three-Quarter Trend

  • Office: 15.6% in Q1, 13.1% in Q2, 50.0% in Q3
  • Retail/Storefront: 63.9% in Q1, 65.2% in Q2, 47.6% in Q3
  • Warehouse/Industrial: 21.3% in Q1, 21.7% in Q2, 2.4% in Q3

Key Takeaways

  • Office became the top category, rising from 13.1% of searches in Q2 to 50.0% in Q3.
  • Office tenants split short and long. 42.1% of office searches sought terms under one year, while 39.0% sought 3 years or longer.
  • Longer office terms mean larger spaces. 5+ year office searches averaged 4,500 to 9,000 SF.
  • Downtown Dallas and Oak Cliff were the most searched single locations, followed by Plano.

Office Market

Key Metrics (Q3 2026, Cushman & Wakefield, Dallas)

  • Vacancy: 24.8%
  • Net absorption: 26,666 SF in Q3 and 1.26 million SF year to date
  • Asking rent: $34.43/SF full service
  • Construction: 2.2 million SF underway, including 1.8 million SF in Uptown/Turtle Creek
  • Submarkets: Preston Center at 5.3% and $59.25/SF, Uptown/Turtle Creek at 19.1% and $64.40/SF, Legacy/Frisco at 22.5% with 179,490 SF of Q3 absorption, and the CBD at 34.9%
  • Major lease: Morgan Stanley, 673,248 SF at 2401 McKinney in Uptown

TenantBase Office Activity

Demand share: 50.0% of Dallas tenant searches, up from 13.1% in Q2 and 15.6% in Q1.

Lease terms:

  • Less than 1 year: 42.1%
  • 3 to 5 years: 29.5%
  • 2 to 3 years: 17.9%
  • 5+ years: 9.5%
  • 1 to 2 years: 1.1%

Space requirements by term:

  • Less than 1 year: 2,053 to 2,222 SF
  • 2 to 3 years: 2,150 to 4,450 SF
  • 3 to 5 years: 2,958 to 4,111 SF
  • 5+ years: 4,500 to 9,000 SF

TenantBase data vs. the market: Dallas office tenants on TenantBase are seeking small to mid-size space, with Downtown the most searched location. CBD vacancy of 34.9% gives these tenants strong leverage downtown, while Preston Center at 5.3% and Uptown at 19.1% offer fewer options at rents above $59/SF.

Industrial & Warehouse Market

Key Metrics (Q3 2026, CBRE, Dallas-Fort Worth)

  • Vacancy: 7.8%, down from 8.2% in Q2 and 8.9% a year earlier
  • Net absorption: 6.44 million SF in Q3 and 23.63 million SF year to date
  • Asking rent: $10.39/SF NNN
  • Construction: 33.91 million SF underway, the most of any U.S. market, with 3.55 million SF delivered
  • Submarkets: South Dallas absorbed 2.25 million SF at 6.6% vacancy and $5.55/SF, while South Stemmons was at 8.0% and Northwest Dallas at 10.3%

TenantBase Warehouse Activity

Demand share: 2.4% of Dallas tenant searches, down from 21.7% in Q2 and 21.3% in Q1.

TenantBase data vs. the market: Warehouse searches on TenantBase fell sharply in Q3, while large users such as DSV (1.12 million SF) drove market absorption. Smaller industrial tenants will find the most competition for space in tight infill areas, and the lowest rents in South Dallas.

Retail Market

Market Conditions (Weitzman, Midyear 2026, Dallas-Fort Worth)

  • Occupancy: 95.3%, matching the year-end 2025 level
  • New space: about 4.2 million SF expected in 2026, up from 2.4 million SF in 2025
  • Inventory: about 205 million SF in centers of 25,000 SF or more

TenantBase Retail Activity

Demand share: 47.6% of Dallas tenant searches, down from 65.2% in Q2 and 63.9% in Q1.

Lease terms:

  • Less than 1 year: 34.4%
  • 3 to 5 years: 28.1%
  • 2 to 3 years: 25.0%
  • 5+ years: 12.5%

Space requirements by term:

  • Less than 1 year: 667 to 1,500 SF
  • 3 to 5 years: 860 to 1,600 SF
  • 5+ years: 3,900 to 8,000 SF

TenantBase data vs. the market: Most Dallas retail tenants on TenantBase are seeking storefronts under 1,600 SF. With occupancy at 95.3%, tenants should expect competition for small-shop space, though new centers in growing northern suburbs are adding options.

Multifamily Market

Dallas-Fort Worth average asking rent was $1,524 in Yardi Matrix's July 2026 report, down 1.6% year over year, with occupancy at 92.3%. About 45,498 units were under construction.

Q4 2026 Outlook

  • Office: Expect Uptown and Legacy/Frisco to keep outperforming, with the CBD offering the most tenant leverage.
  • Industrial: Expect vacancy to hold near current levels as large preleased projects deliver.
  • Retail: Expect occupancy to stay high as new space opens in northern suburbs.
  • Multifamily: Expect concessions to persist as new supply leases up.

Frequently Asked Questions

What type of commercial space are Dallas tenants searching for in 2026?

In Q3 2026, 50.0% of Dallas tenant searches on TenantBase were for office space, 47.6% for retail space, and 2.4% for warehouse space.

What is the office vacancy rate in Dallas?

Dallas office vacancy was 24.8% in Q3 2026, with Preston Center at 5.3% and the CBD at 34.9%, according to Cushman & Wakefield.

What is the industrial vacancy rate in Dallas-Fort Worth?

DFW industrial vacancy was 7.8% in Q3 2026, with 33.91 million SF under construction, according to CBRE.

How can I find commercial space in Dallas at no cost?

TenantBase matches business tenants with vetted independent tenant rep brokers across the Dallas region at no cost to the tenant. Brokers are compensated by the landlord. Get started with TenantBase.

Sources

  1. TenantBase proprietary search data, Dallas, July 1 to September 30, 2026
  2. TenantBase, Dallas Commercial Real Estate Market Report, Q2 2026
  3. TenantBase, Dallas Commercial Real Estate Market Report, Q1 2026
  4. Cushman & Wakefield, Dallas-Fort Worth Office MarketBeat, Q3 2026
  5. CBRE, Dallas-Fort Worth Industrial Figures, Q3 2026
  6. Weitzman, Dallas-Fort Worth Retail Market, Midyear 2026
  7. Yardi Matrix via Multi-Housing News, Dallas Multifamily Report, July 2026

Disclaimer

Information in this report is aggregated from third-party sources and TenantBase proprietary platform data, and was synthesized with the assistance of AI. Market metrics reflect the most recent published data available at the time of writing. TenantBase search data reflects tenant activity on the TenantBase platform and is not a measure of total market leasing. All figures should be independently verified before making real estate decisions.