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allas-Fort Worth's office market is struggling with the nation's third-highest amount of unused space. The DFW metro had 52.8 million square feet of vacant office space during the second quarter, translating to a potential rent loss of $1.62 billion. This figure surpasses Houston's nearly 50 million square feet of empty office space and Austin's more than double the vacant office space of San Antonio.

    According to Thomas LaSalvia, director of economic research at Moody's Analytics, the evolution in office demand is driven by "metros and neighborhoods" where buildings will either thrive or become obsolete. Hybrid and remote work models have reduced traditional office demand, leaving approximately 11 markets with over $1 billion in unrealized rent.

    Trophy office assets are faring better than older buildings, with certain neighborhoods like Uptown Dallas attracting high-profile tenants due to their vibrant atmosphere and amenities. LaSalvia notes that "location, location, location" remains crucial in this asset class, as employees increasingly seek workplaces in desirable neighborhoods.