I
t's a tale of two markets in North Texas. On one hand, Class A office properties are thriving, with top-notch space in high demand. CBRE recently brokered three significant leases in Uptown, Las Colinas, and Far North Dallas, underscoring the area's appeal to large employers. As these companies bring their workforces back to the office, demand will only intensify.

    However, a different story is unfolding for Class B and C properties, where occupancy remains stubbornly high at 27%. This dichotomy is likely to persist until capital markets normalize, according to Robert Blount, CBRE's vice chairman. The return-to-office trend, sparked by announcements from major companies like AT&T and JP Morgan, is amplifying the "flight to quality" phenomenon.

    Landlords are racing to keep up with evolving trends, investing in amenities and services to entice employees back to the office. This competition benefits tenants, who are being offered more generous tenant improvement funds than ever before. Despite this, the development pipeline has slowed due to rising interest rates, making it unlikely that new projects will break ground until costs come down.