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Dallas-Fort Worth’s empty office space soars to a record high

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Dallas-Fort Worth’s empty office space soars to a record high


North Texas businesses have almost unlimited choices when it comes to office space.

A record total of offices is available in Dallas-Fort Worth. Counting sublease space and what’s being built in new buildings, more than 76 million square feet of office space is available.

That’s more than twice the offices in all of downtown Dallas’ towers, according to estimates from commercial property firm Transwestern.

The supply of vacant office space up for grabs in the area is up almost 25% since before the pandemic.

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One of the biggest increases has been in sublease space — where companies still are paying rent but are hoping to rent out to other companies. An all-time high 11.4 million square feet of D-FW sublease space was on the market in the most recent quarter, Transwestern reports.

“In terms of absolute square footage, we’re at a record today,” Transwestern research manager Andrew Matheny said. “In terms of percentage of available office space, I think we’re approaching the 1980s records.”

It was back in the 1980s when D-FW office vacancies last soared due to rampant overbuilding and a banking sector collapse.

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This time it’s a decline in office space usage since the pandemic that’s left North Texas awash in empty offices.

Most of the available office space — more than 10 million square feet of empty and sublease space — is in the downtown Dallas area, according to Transwestern’s third quarter study. Other large totals of empty offices are along the Dallas North Tollway corridor in West Plano and in Las Colinas.

The largest share of the vacant offices is in older and poorly located buildings.

“The majority of the vacancy resides in the B and C space, which has become mostly obsolete,” said longtime commercial property broker Jack Crews. “Most of the A and AA buildings are leasing and rates are rising in these buildings. Lots of old buildings need to come down and make way for new modern mixed-use developments.”

Dallas’ landmark Comerica Bank Tower may soon see apartments, hotel, retail stores

Developers are currently repositioning some of the older offices for new uses, including apartments and hotel rooms. But even proponents of these projects acknowledge this won’t be the answer for all out-of-date offices.

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Robbie Baty, vice chairman in Cushman & Wakefield’s Dallas office, said businesses looking for D-FW offices have a lot of factors to evaluate — including whether to rent some of the millions of square feet of sublease space.

“There are substantially more attractive options available for tenants to consider,” Baty said. “The root cause for the abundance of sublease options and the increased vacancy in the office market is that tenants are requiring approximately 30% less space today than they did pre-pandemic.

“The result is well-appointed office space that is sitting vacant ready to be backfilled by someone else,” he said. “Decision makers are taking longer because they are trying to ascertain how much office space their companies will require for the short term and long term future with the new hybrid work model. All industries are affected by the way employees are now working and this has been hard for executives to determine how that will impact their office space needs.”

Businesses are being lured to make leases by some of the largest rental concessions the D-FW market has seen in more than a decade.

“With the lowered office space demand, landlords are increasing concessions to lure new tenants to their office buildings in the form of additional free rent and tenant improvement allowances,” Baty said.

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Plano office tower started during pandemic is ready to open its doors

While older buildings are sitting on the market, the newest D-FW office buildings are lining up new tenants.

About 4.3 million square feet of office space is under construction in North Texas. More than 20% of those buildings still on the way already have leases signed.

Rents in the next generation of D-FW office space are reaching record levels.

Space in the best and newest office buildings “is in very high demand and achieving very high rents never seen before in Dallas vs. all the other buildings which is seeing less demand and is now commodity space,” CBRE vice chairman Jeff Ellerman said. “There has been a flight to quality for those companies wanting their employees back in the office to have really attractive, cool space in the best locations.

“This is the case in every major market in the country.”

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Dallas, TX

How Jerry Jones values HC position will be telling as Dallas Cowboys’ search ramps up

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How Jerry Jones values HC position will be telling as Dallas Cowboys’ search ramps up


There’s only one surprising tidbit in the revelation that Jerry Jones and Deion Sanders have had a discussion about the head coaching vacancy with the Cowboys.

How was Jones able to place the call before Sanders picked up his cell to initiate contact?

Sanders gets to remind officials at the University of Colorado that he’s a hot commodity while he prods for an extension. Jones redirects the conversation from his culpability in the Cowboys’ current condition while offering fans and candidates a reminder that this is a high-profile job coaches crave.

Jones, the Cowboys owner and chief content creator, has done it again. Ryan Reynolds didn’t generate this much initial buzz for Deadpool & Wolverine.

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But what happens in the coming days and weeks as the search unfolds and the idea of Jones and Sanders turns out to be more of a marriage of marketing convenience than a reality? Will the words of Hall of Fame quarterback Troy Aikman, who pointed out Monday that the job can be high-profile without being coveted, prove to be right?

Troy Aikman rips Cowboys after Mike McCarthy decision, doesn’t see Dallas as ‘coveted’ gig

The Cowboys will have no shortage of qualified candidates. There are enough veteran coaches searching for a fond farewell along with young, up-and-coming talents looking for their first big break to keep that pool stocked.

Back to Aikman’s point, there are other dynamics in play. One is the relative value Jones places on the position of head coach.

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It was nearly 31 years ago in a hotel bar that Jones told reporters, “there are 500 coaches who could have won the Super Bowl with our team.‘’ A few days later the partnership between Jones and Jimmy Johnson came to an acrimonious end.

As he stood outside of the Cowboys locker room a few days ago after the loss to Washington to end the regular season, Jones was asked if he had a list of coaches ready if he moved on from Mike McCarthy. Jones again landed on that number, saying there would be “about 500 of them down there (Senior Bowl trip) that would love to be on the staff.‘’

Hyperbole? Sure. Jones rarely makes a point without one.

What you haven’t heard Jones say is there are 500 pass rushers who can do what Micah Parsons does or 500 quarterbacks who could start for the Cowboys.

Jones is willing to pay his top players big money because he believes they add rare value to the team’s potential success. He doesn’t hold coaches in the same regard. To him, their value is squeezed by the players on one side and by the management structure in place on the other.

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Deion Sanders, Cowboys coach? Even AT&T Stadium isn’t big enough for that many egos

Here’s another point. Past coaching hires have allowed Jones to sell hope to the fan base that a new voice, a new approach, will make a difference. That’s a tougher sell than ever.

Why? More than any other time, the ire of fans feels directly aimed at Jones. This past season was as much of a referendum on what Jerry and Stephen Jones didn’t do to build on a team that went 12-5 in three consecutive seasons as it was on the job done by McCarthy and his staff.

If you think that’s hyperbole, you weren’t at AT&T Stadium for the playoff game between UT and Ohio State. When Jones’ face flashed on the jumbotron as one of the celebrities in attendance, the crowd broke out in a comically loud boo.

The search for the 10th head coach in franchise history began with a call to Deion Sanders.

It will be interesting to see how it ends.

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Find more Cowboys coverage from The Dallas Morning News here.



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Dallas, TX

Report reveals Mike Zimmer’s future in coaching after Cowboys part ways with Mike McCarthy

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Report reveals Mike Zimmer’s future in coaching after Cowboys part ways with Mike McCarthy


Mike McCarthy’s future has been sorted out in Dallas, and there won’t be one with the Cowboys. As for his defensive coordinator in Mike Zimmer? The question becomes a little more murky.

According to NFL Network’s Tom Pelissero, the 68-year old assistant is keeping his options open, even willing to return to the Cowboys should that be the desire of decision-makers. He could feasibly retire, or continue his coaching career elsewhere — nothing seems to be off the table.

“#Cowboys defensive coordinator Mike Zimmer tells me ‘all options are open’ on his future after Dallas and Mike McCarthy parted ways Monday,” Pelissero reported. “Zimmer and other Dallas assistants whose contracts expired are now allowed to interview elsewhere. ‘I really enjoy coaching,’ Zimmer said.”

Zimmer made a name for himself as an assistant in Dallas from 1994 until 2006. He finally got a chance to lead a franchise in 2014 with the Minnesota Vikings, where he coached until 2021. He spent two seasons with Deion Sanders at Jackson State and Colorado as an analyst until the Cowboys called upon him to return in 2024.

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Meanwhile, McCarthy’s Cowboys finished the 2024 season with a 7-10 record. The last time the Cowboys had a losing record was in 2020 when they finished 6-10. That was McCarthy’s first year in Dallas, and he then led the Cowboys to three consecutive 12-5 seasons. 

After the Cowboys lost to the Washington Commanders in Week 18, McCarthy said he wanted to be with the team going forward. “Absolutely. I have a lot invested here, and the Cowboys have a lot invested in me,” he said, per the Cowboys’ official website.  “And then there’s a personal side to all these decisions. So, they all point in the right direction.”

McCarthy then explained why he should continue to be the Cowboys head coach. “I don’t like to talk about myself that way, but I’ll just be clear: I’m a winner. I know how to win. I’ve won a championship. I won a championship in this building,” McCarthy said. “And that’s who I am. We’ll see where it goes.”

Moving forward, multiple teams are expected to speak with Mike McCarthy about their vacancy, like the Chicago Bears and New Orleans Saints. Regardless, it didn’t work out in Dallas, and the Cowboys are moving in a different direction going forward. Whether Mike Zimmer is part of their plans remains to be seen.



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Dallas was right to question University Park request for 18 acres

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Dallas was right to question University Park request for 18 acres


Why would Dallas ever hand over 18 acres of prime real estate within its city limits to University Park?

Yet that’s what University Park asked Dallas to do as part of a boundary adjustment application that would have shifted a school and church along Northwest Highway out of Dallas.

After the request hung around City Hall for about two years, Dallas City Council members rightly questioned the proposed land gift during a summer briefing of its Quality of Life, Arts & Culture committee. University Park has since withdrawn its application after being told its approval was “unlikely,” a spokesperson for the affluent city of 25,000 told us in an email.

We’re glad to hear it and support the far more reasonable approach of hammering out an agreement to address University Park’s underlying concerns. Dallas council member Gay Donnell Willis, whose District 13 includes the area, told us conversations between the two cities are active and ongoing.

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The issue arose out of concerns of families at Michael M. Boone Elementary School, which opened in 2020 at 8385 Durham St. The school is within the city of Dallas and part of the Highland Park Independent School District, but about 80% of school families reside in University Park.

Willis said families have reported confusion between Dallas and University Park first responders over which city should answer calls from the school. They also had concerns over street and drainage problems around the school, as well as conflicting signage rules between the two cities and the school district.

University Park initially asked that Dallas’ boundary adjustment include only the school. But the application was amended to include Northway Christian Church because state law required the boundary in question to be contiguous to University Park, according to a city memo. HPISD also later joined the application. Both sites, plus rights of way, total about 18 acres.

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“Moving a boundary of the city of Dallas is a really big deal,” Willis said. “There is a way to solve this without taking that measure.”

Council member Paul Ridley was a bit more pointed. “I just don’t like the idea that we are abandoning part of our property to an adjacent city that thinks they can service it better than we can,” he said at the committee meeting.

This isn’t just any property, either. A stone’s throw from NorthPark Center, this is some of the most valuable real estate in the city. The school and church don’t generate property tax revenue for Dallas, but a city staff memo said that if ever converted to homes, the land could generate an average of $3 million a year in tax revenue.

We are glad Dallas won’t consider moving its boundary. Doing so would encourage similar applications from other cities. Still, the Boone Elementary families are in a predicament; Dallas should help them out of it.

We welcome your thoughts in a letter to the editor. See the guidelines and submit your letter here. If you have problems with the form, you can submit via email at letters@dallasnews.com

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