Downtown News

Dallas-Fort Worth is high on the list of most office vacancies in U.S.

Imagine all of those offices sitting empty in Fort Worth.

A new study of the office rental market in the U.S. has unfortunate news for Fort Worth's office scene: It puts Dallas-Fort Worth at the third highest rate of office vacancies nationwide.

According to a report by Indian service provider Outsource2India, 18 percent of all office space in DFW is sitting empty — a figure that has grown by 2.3 percent since 2023. So don't go blaming the pandemic, at least not directly.

Metropolitan areas in Texas and California dominate the list of top 10 cities with the highest vacancy rates. San Francisco tops the list with a staggering 21.7 percent of vacant office space — meaning that more than one out of five offices are empty.

Houston comes close at No. 2 with a vacancy rate of 18.6 percent. Austin comes in behind Dallas-Fort Worth at No. 4 on the list, with a 16.7 percent office vacancy rate.

While climbing office vacancies have been attributed to the pandemic, the report notes that the situation has worsened over the last 12 months, with an average increase in vacancy rates of 11 percent — underscoring the significant challenges in commercial real estate right now.

The study dovetails with other workspace trends including the rising demand and popularity of remote and hybrid professions since the COVID-19 pandemic.

Outsource2India suggests major businesses in cities like Fort Worth will need to reimagine their work culture and office spaces in order to compete with flexible work models.

“As remote work continues to reshape workplace dynamics, there is a pressing need for this market to evolve and adapt,” the report says.

Fort Worth commutes aren't getting any easier (nor are the city's drivers getting any better), and more workers are starting to look for less commute-heavy vocations in suburbs with top job markets.

The top 10 metro areas with the highest office vacancy rates are:

No. 1 – San Francisco, California
No. 2 – Houston, Texas
No. 3 – Dallas-Fort Worth, Texas
No. 4 – Austin, Texas
No. 5 – Washington, D.C.
No. 6 – Chicago, Illinois
No. 7 – Denver, Colorado
No. 8 – Phoenix, Arizona
No. 9 – Los Angeles, California
No. 10 – San Jose, California

Outsource2India tracked office rent prices in major U.S. metropolitan areas for 2023 and 2024 to discover the top 10 metro areas with the highest office vacancy rates using data from the National Association of Realtors (NAR).

The full report can be found on outsource2india.com.

reports real estate market office rental market fort worth dallas

T-Shirt News

Fort Worth clothing brand Dickies to relocate HQ to California

Dickies

Dickies T-shirt

After more than a century, workwear clothing brand Dickies is leaving Fort Worth for new headquarters on the West Coast. It will be moving from its current space at 500 Taylor St., at the top floor of The Tower, to California, with an estimated completion date of late spring 2025.

The company is relocating to Costa Mesa, home of its parent VF Corp, the footwear and apparel firm that owns brands such as Vans, The North Face, Timberland, Jansport, and Eastpak; VF Corp acquired Dickies in 2017.

"By co-locating Dickies with our Vans team in Costa Mesa, we will create an even more vibrant campus where creativity and best practice sharing can thrive through greater collaboration and connections – creating a dynamic and innovative environment similar to our other VF co-branded offices," says a Dickies representative in a statement, according to NBC 5.

According to Dickies, about 120 employees at the headquarters will be affected, but not those working at the local distribution facility, warehouses, and stores.

"We are deeply grateful for our Dickies associates’ dedication and hard work and want to recognize the camaraderie and commitment they have shown to the brand," the Dickies representative said in a statement. "Our priority is to ensure that everyone is treated with respect and care throughout this process. We will provide resources and assistance to help them navigate the next steps in their careers."

Fort Worth Mayor Mattie Parker chimed in on the relocation decision, stating that it's an example of a Fort Worth success story.

"While we understand companies are sometimes forced to make difficult budget decisions under new leadership, we think VFC will find – as others have – that Fort Worth, Texas is ultimately a more competitive place to do business,” Parker said in a statement.

Established in Fort Worth in 1922, Dickies brand impact, which was first founded by C.N. Williamson and E.E. "Colonel" Dickie, will still be felt, even after it leaves the city: In 2017, it gained naming rights to the 14,000 square-foot Dickies Arena next to the Will Rogers Memorial Center, and later opened in 2019.

According to the company, the California move will be managed over an "extended transition period." It's expected to be completed by May 2025.

"While this was a tough call, we are confident this change will help us revitalize Dickies so we can carry on the brand’s heritage for years to come," said the company representative.

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