Office Sale Prices Drop in Dallas-Fort Worth

As of May, Dallas-Fort Worth’s office market saw an increase in investment activity while also witnessing a price drop. According to CommercialEdge data, office sales totaled more than 3.3 million square feet, up 65 percent month-over-month. The traded square footage was also more than three times the one recorded in May 2021, when only 922,540 square feet changed hands.

The metro’s transactions amounted to some $1.8 billion year-to-date at an average price of $180 per square foot, 10 percent lower month-over-month. The price was also 34.3 percent lower than the national $274 per square foot. In the same period of 2021, office sales totaled more than $1.2 billion at an average $276 per square foot.

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Class A and B properties made up the month’s sales mix, all pertaining to traditional space. The vast majority of office sales closed in suburban submarkets; however, the largest building to change hands in May was part of Dallas’ CBD.

In an unrecorded transaction, GrayStreet Partners acquired the 1.7 million-square-foot Renaissance Tower from Square Mile Capital Management. The LEED-certified building rises 56 floors at 1201 Elm St. Square Mile had become the owner of the Class A asset in 2021, after purchasing a $100.2 million loan encumbering the property; the note was originally issued by Bank OZK to The Moinian Group.

CommercialEdge covers 8M+ property records in the United States. View the latest CommercialEdge national monthly office report here. We included properties of 25,000+ square feet in our research.