Demand for office space in North Texas is still down

Dallas-based CBRE reports that demand for office space is up in major metro areas across the country but lags slightly in North Texas.

• The report ranks the 12 largest office markets, which includes the Dallas-Fort Worth metro area and Houston.

Why it matters: Dallas-Fort Worth falls squarely in the middle of the pack in recovery, according to the report, which analyzed the October demand for office space.

• Dallas’ tenant demand declined while the other 11 metro areas either remained flat or improved.

Houston exceeded its prepandemic leasing levels, but Dallas-Fort Worth has fallen below 75% of its prepandemic baseline.

Details: North Texas has seen an increase in sublease availability, which remains an issue in most of the 12 markets, the report says.

Yes, but: Overall, the demand for office space has improved since the summer resurgence of coronavirus cases, largely due to the spread of the Delta variant. And the report says Dallas’ demand remains at a "relatively healthy level."

• While many metro area’s office space is downtown, Dallas’ city center only holds 2% of the region’s jobs, according to an INRIX research report on traffic congestion.

What they’re saying: "Barring another COVID resurgence, the office market appears on increasingly firmer footing heading into 2022," the CBRE report says.