The Greater Fort Worth office market achieved a milestone in the first quarter of 2025, recording positive net absorption of 94,118 square feet—the first result since 2019. This development signals a potential recovery in the region’s office sector, driven by employers’ return-to-office initiatives and demand for Class A spaces. According to JLL’s latest report, vacancy rates remain steady at 17.8%, while leasing activity continues to shift toward newer, high-quality properties.
A Return to Positive Absorption
Net absorption, which measures the difference between office space leased and vacated, is a key indicator of market health. Fort Worth’s positive absorption reflects growing demand for office spaces as companies adapt to post-pandemic work trends. Todd Burnette, executive managing director at JLL Fort Worth, attributed the improvement to limited availability and a “flight to quality,” where businesses prioritize modern spaces to attract employees back to the office.
“We’re seeing companies reassess their needs,” Burnette explained. “If they want to bring people back, they ask, ‘Where should we go?’ This has generated interest in areas like Clearfork, the Arts District, and Seventh Street.”
Class A Properties Lead the Charge
Class A office spaces—typically newer buildings with premium amenities—dominated leasing activity across Fort Worth’s submarkets. Five submarkets reported higher absorption rates for Class A properties than older Class B buildings. In Arlington/Mansfield alone, the United Football League signed a lease for 110,000 square feet in Arlington’s Entertainment District—the largest transaction in nearly two years.
Burnette noted that downtown Fort Worth’s Class A vacancy rate is just 12%, underscoring limited availability in prime locations. The Crescent office building in the Cultural District exemplifies this trend; it was 90% leased before opening its doors.
Economic Context and Market Dynamics
Fort Worth’s office market has gradually rebounded from pandemic-driven challenges that saw remote work dominate and leasing activity decline. While vacancy rates remain flat at 17.8%, they are significantly lower than those in neighboring Dallas-Fort Worth markets, where vacancies peaked at over 26%.
The push for quality spaces aligns with broader trends across Dallas-Fort Worth (DFW). Avison Young reported that DFW saw 900,000 square feet of net absorption in Q1 2025, continuing improvements seen in late 2024. However, leasing activity remains below historic averages due to slower deal-making among tenants.
Significant Developments on the Horizon
Fort Worth’s pipeline of new office spaces is poised to reshape the market further. Over 400,000 square feet of Class A inventory is under development west of downtown in the Cultural District. Projects include Goldenrod Companies’ $400 million mixed-use developments—the Van Zandt and One University—adding more than 200,000 square feet of office space by mid-2025.
Additionally, Wells Fargo announced plans to relocate from downtown Fort Worth to Clearfork, leasing nearly 40,000 square feet in a new building co-owned by Simon Property Group and Cassco Development Co. This move reflects broader shifts toward suburban hubs with better amenities and accessibility.
Challenges Persist Despite Optimism
Despite positive absorption figures and robust development pipelines, challenges remain for Fort Worth’s office market. Older Class B properties struggle with negative absorption rates as tenants migrate toward newer buildings. James Stein of CBRE highlighted this: “What you’re seeing nationwide is older products being left behind as companies prioritize quality.”
Furthermore, while rental rates have increased steadily—up 15% since 2018—developers face rising construction costs that could push rates even higher for new projects. Limited inventory also poses constraints; only three Class A buildings inside Loop 820 can accommodate tenants requiring more than 40,000 square feet of contiguous space.
Sustained Recovery or Temporary Boost?
As Fort Worth inches closer to pre-pandemic benchmarks, industry experts remain cautiously optimistic about sustained growth through 2025. Burnette hinted at additional announcements expected within the next month that could further bolster leasing momentum downtown and beyond.
Savills Research Manager Deandre Prescott echoed this sentiment: “With stricter return-to-office policies being implemented by several large occupiers, leasing activity should exceed quarterly averages later this year.” However, Prescott warned that broader economic factors, including slowing job growth, could temper long-term optimism across DFW markets.
Fort Worth’s ability to maintain positive absorption will depend on continued demand for Class A spaces and the successful execution of development projects underway. As Burnette stated: “Vacancies aren’t necessarily bad—they create opportunities for new businesses.” Whether these opportunities translate into sustained recovery remains a question worth watching closely as the year progresses.