Leasing activity continues to plummet, sublease space on the rise

Leasing activity across Dallas-Fort Worth, at 1.8 million square feet (msf) in Q3 2020, has decreased by 3.1% over the quarter and plunged 58.6% year over year. With national trends throughout the pandemic proclaiming dismal leasing activity in major markets, the Metroplex presents itself as a prime example of the true weight of COVID-19’s impact on the sector. Previously buzzing with activity in Q1 2020, demand is now running on reserves sourced primarily from renewals, extensions and expansions. Slowing leasing activity and increasing sublease availability sets tenant favorability in the market at its peak as landlords face a more a competitive market and tepid demand leading to lower taking rates and increasingly generous concessionary offerings for direct-space deals.

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