Why Fort Worth Is the Next Big Player in DFW’s Office Market

This story was originally published at dmagazine.com

iStock: Barbara Smyers

This article highlights Fort Worth's rapid ascent in the DFW office market, challenging Dallas's dominance.

Fort Worth is emerging as a significant player in the Dallas-Fort Worth (DFW) office market, attracting substantial institutional investment. While Dallas has dominated the region's office scene in recent years, Fort Worth's strong fundamentals, rapid population growth, and business-friendly climate are driving its rise. Key factors contributing to this trend include:

• Rapid Population Growth: Fort Worth is the fastest-growing large city in the U.S., with a population nearing 1 million, while Dallas has experienced slower growth and even recent declines.

  
  

• Stable Office Market: Unlike many major U.S. cities struggling with high vacancy rates, Fort Worth's office market has remained relatively stable.

  
  

• Rental Rate Growth: After years of stagnation, Fort Worth is experiencing significant rental rate increases, particularly in its central business district.

  
  

• Pro-Growth Leadership: City leadership is actively promoting economic development and attracting businesses.

  
  

• Investment in Higher Education: Expansions by Texas A&M, TCU, and the University of Texas at Arlington are creating a robust workforce pipeline.

  
  

• Developer Interest: Successful mixed-use developments are attracting further investment, with new office projects underway.

  
  

• Strong Tenant Demand: A significant number of large tenants are seeking office space, but Fort Worth currently lacks sufficient inventory, driving the need for new development and potentially leading to higher rental rates.

  
  

In essence, Fort Worth's combination of growth, stability, and strategic development positions it to become a major force in the DFW office market, complementing Dallas's established presence.