Fort Worth Commercial Office Space for Rent

Q4 2025

Fort Worth Commercial Real Estate Market Report

Focus: Q4 2025 Market Trends

Executive Summary

The Fort Worth commercial real estate (CRE) market is closing 2025 with strong momentum, driven by robust population growth and a stabilizing economy [5]. The Office sector is experiencing a resurgence, with net absorption turning positive and leasing activity increasing as tenants flock to high-quality assets [1]. Industrial markets are normalizing after years of rapid expansion; while vacancy has ticked up to 9.2%, demand remains healthy with over 4 million SF absorbed in the third quarter [2]. Retail fundamentals are exceptionally tight, with vacancy rates hovering near 5% and rents climbing due to limited supply [3]. Multifamily is showing early signs of stabilization, with absorption finally outpacing new deliveries despite elevated vacancy rates [4].

TenantBase Proprietary Data [6] highlights the distribution of active tenant demand over the last 90 days (178 total deals):

  • Retail/Storefront dominated market activity with 60.11% of all searches [6].
  • Warehouse was the second most active sector at 26.40% [6].
  • Office accounted for 14.04% of total search volume [6].

Office Market

Market Overview The Fort Worth office market is witnessing a bifurcated recovery, where Class A and "trophy" assets are capturing the lion's share of demand while older vintage properties struggle [1].

  • Vacancy & Availability: The total vacancy rate across the DFW metroplex decreased slightly to 25.0% in Q3 2025, driven by a flight to quality [1]. Class A vacancy declined, while Class B vacancy continued to rise, highlighting the disparity in asset performance [1].
  • Net Absorption: The market recorded significant positive net absorption of 1.4 million SF in Q3 2025, a major turnaround from previous quarters [1].
  • Rental Rates: Average gross rental rates rose 2.5% quarter-over-quarter to $32.06 per SF, with Class A properties seeing the most pronounced growth [1].
  • Market Drivers: Leasing activity increased by 20.2% to 4.4 million SF, with a notable increase in tenants upgrading their space to retain talent [1].

TenantBase Activity [6]

  • Demand Share: Office accounted for 14.04% of total search volume [6].
  • Lease Term Preference: Demand is balanced between flexibility and mid-term commitments [6]:
    • 3-5 Years: 33.33% of deals [6].
    • Less than one year: 29.17% of deals [6].
    • 2-3 Years: 25.00% of deals [6].
  • Size Requirements: Tenants are seeking compact, efficient footprints. The average lower SF required for a 3-5 Years term is 1,174 SF, while those seeking Less than one year need just 500 SF on average [6].

Industrial & Warehouse Market

Market Overview The Fort Worth industrial market is entering a "normalization" phase, characterized by steady demand and a sharp reduction in new construction starts, which is expected to tighten the market in 2026 [2].

  • Vacancy & Rent: The vacancy rate held steady at 9.2% in Q3 2025 [2]. Average asking rents dipped slightly to $9.70 per SF, reflecting a 1.8% year-over-year decline as landlords compete to fill space [2].
  • Demand & Supply: Net absorption remained robust at 4.3 million SF, driven primarily by warehouse and distribution users [2]. Construction deliveries fell by 46.1% quarter-over-quarter, signaling a significant slowdown in new supply [2].
  • Construction: The pipeline has moderated to 34.5 million SF, down from peak levels, which will help stabilize vacancy rates moving forward [2].

TenantBase Activity [6]

  • Demand Share: Warehouse accounted for 26.40% of total search volume [6].
  • Lease Term Preference: Demand is strongest for shorter terms as tenants navigate economic uncertainty [6]:
    • 1-2 Years: 35.00% of deals [6].
    • 3-5 Years: 30.00% of deals [6].
    • Less than one year: 15.00% of deals [6].
  • Size Requirements: The average lower SF required for a 3-5 Years term is 3,000 SF, while larger requirements for 1-2 Years averaged 2,500 SF [6].

Retail Market

Market Overview Retail is currently the tightest and most resilient commercial real estate sector in Fort Worth, supported by rapid population growth in the northern suburbs [3].

  • Vacancy & Availability: The retail vacancy rate ticked up slightly to 5.2% due to new deliveries, but remains historically low [3]. Northern suburbs like Denton and Collin Counties continue to drive leasing activity [3].
  • Net Absorption: The market posted positive net absorption of 278,400 SF in Q3 2025, marking continued expansion [3].
  • Rental Rates: Average asking rents climbed 4.3% year-over-year to $25.15 per SF, with new developments commanding significant premiums [3].
  • Construction: Developers are active, with 6.9 million SF of retail space under construction, largely concentrated in fast-growing suburban corridors [3].

TenantBase Activity [6]

  • Demand Share: Retail/Storefront activity dominated with 60.11% of all search volume [6].
  • Lease Term Preference: Retail tenants show a clear preference for longer-term stability compared to other sectors [6]:
    • 3-5 Years: 32.61% of deals [6].
    • 5+ Years: 26.09% of deals [6].
    • Less than one year: 15.22% of deals [6].
  • Top Locations: Tenant interest is heavily concentrated in Fort Worth (16 deals) and Mansfield (9 deals) [6].

Multifamily Market

Market Overview The multifamily sector is showing early signs of stabilization, with demand beginning to catch up to the massive wave of supply delivered over the past two years [4].

  • Vacancy & Occupancy: Vacancy remains elevated at 11.8%, but absorption of 8,300 units outpaced the 7,100 units delivered in Q3 2025, a positive signal for future occupancy [4].
  • Rents: Rents declined by 1.4% year-over-year to an average of $1,392 per unit as landlords use concessions to attract tenants [4].
  • Construction: The construction pipeline has fallen to a decade low of 30,000 units, a 50% drop from the 2023 peak, which will allow the market to rebalance by late 2026 [4].
  • Investment: Sales volume reached $320.5 million in Q3, with investors showing cautious optimism as pricing resets [4].

2026 Outlook

Looking ahead to 2026, Fort Worth is positioned for a "turning point" year characterized by major transformational projects.

  • Development Boom: 2026 marks the year major projects like the Stockyards expansion, Panther Island redevelopment, and the Texas A&M downtown campus will begin to take shape, reshaping the city's economic landscape [5].
  • Market Stabilization: With construction pipelines shrinking across industrial and multifamily sectors, vacancy rates are expected to tighten, setting the stage for renewed rent growth [4, 5].
  • Investment Outlook: Fort Worth is ranked as a top market to watch for 2026, with investors drawn to its demographic growth and diversified economy [5].

Sources

  1. Partners Real Estate: Dallas Office Q3 2025 Quarterly Market Report
  2. Partners Real Estate: Dallas Industrial Q3 2025 Quarterly Market Report
  3. Matthews: Dallas-Fort Worth, TX Retail Market Report Q3 2025
  4. Matthews: Dallas-Fort Worth, TX Multifamily Market Report Q3 2025
  5. Dallas Express: DFW Tops U.S. Real Estate Again: #1 Market To Watch In 2026
  6. TenantBase Proprietary Market Data (Fort Worth - Last 90 Days)

Information in this report is aggregated from various third-party sources and synthesized using artificial intelligence and other research tools. While we believe these sources to be reliable, we cannot guarantee the absolute accuracy or completeness of the data. This report is intended for informational purposes to provide market insight and should be independently verified prior to any use in a real estate transaction or legal commitment.