Dallas, TX Economic Overview
When they came up with the slogan “everything’s bigger in Texas,” they were probably talking about Dallas. It’s one of the biggest cities in the country in almost every category, from population to GDP, and it’s also home to one of the most popular sports teams–the Dallas Cowboys. The Dallas commercial real estate market is no exception.
Dallas and the rest of the Dallas-Fort Worth metroplex make up one of the largest economies in the entire country, and it’s carried by industries like healthcare, energy, entertainment, telecommunications, technology, education, finance, and aviation. Dallas-Fort Worth International Airport is the 10th busiest in the world, servicing 64 million passengers each year.
Dallas, TX Commercial Real Estate Market
The Dallas-Fort Worth area is home to 226 million square feet of office space and the headquarters of 21 different Fortune 500 companies. There are nine of them in the city of Dallas alone, which also has more shopping centers per capita than any other city in the country.
Downtown Dallas serves as the Dallas’ central business district and is home to numerous large companies, including the headquarters of AT&T, Comerica, ENSCO, and Neiman Marcus. Telecommunications, energy, healthcare, technology, and financial services dominate the Downtown Dallas office market.
Uptown Dallas is an upscale, highly-educated area of Dallas where you’ll find the headquarters of Fortune 500 companies Dean Foods and HollyFrontier. Roughly 68% of the Uptown workforce has a bachelor degree or higher. The local economy takes full advantage of this, by focusing on fields like finance, consulting, and technology. This is also one of the fastest growing areas of the city, with the Uptown Dallas office market seeing a 30% increase in rents since 2011, while commercial vacancies have dropped below those of Downtown Dallas.
North Dallas is an important center of technology and telecommunications and includes the Telecom Corridor, which is home to over 600 technology companies, from AT&T to Samsung, and the headquarters of Texas Instruments. The North Dallas office market features over 25 million square feet of office space, and is also a hub for retail, featuring establishments like the Preston Center.
Irving is home to the headquarters of six Fortune 500 companies, including ExxonMobil, Fluor and Commercial Metals. The Irving office market and economy are driven by telecommunications, technology, and financial services, with Citigroup and Verizon among the top employers.
Dallas, TX Office Rental Rates ($/SF/year)
Data provided by Yardi Matrix, for properties larger than 50K SF.
Dallas, TX Office Sales
Data provided by Yardi Matrix, for properties larger than 50K SF, which sold at over $5M.
Dallas, TX Commercial Inventory Breakdown
Total: 139,667,172 SF
By square footage range:
- 50k to 100k SF: 11,912,148 SF / 8.53% of total office
- 100k to 500k SF: 82,219,081 SF / 58.87% of total office
- 500k to 1M SF: 21,069,132 SF / 15.09% of total office
- > 1M SF: 24,466,811 SF / 17.52% of total office
- Class A+: 13,833,881 SF / 9.9% of total office
- Class A: 59,844,948 SF / 42.85% of total office
- Class B: 51,344,440 SF / 36.76% of total office
- Class C: 2,218,569 SF / 1.59% of total office
Total: 113,830,372 SF
By square footage range:
- 50k to 100k SF: 3,222,631 SF / 2.83% of total industrial
- 100k to 500k SF: 71,888,032 SF / 63.15% of total industrial
- 500k to 1M SF: 26,128,353 SF / 22.95% of total industrial
- > 1M SF: 12,591,356 SF / 11.06% of total industrial
- Class A: 44,557,804 SF / 39.14% of total industrial
- Class B: 56,505,925 SF / 49.64% of total industrial
- Class C: 7,324,106 SF / 6.43% of total industrial
Employment in Dallas, TX
Dallas has long been one of the most important economic producers in the country, and today is no different. The Dallas-Fort Worth area currently employs over 3.5 million in non-farming occupations, which represents a 23% increase since 2010, the largest improvement in the U.S.
- Healthcare Roughly 28% of Dallas jobs are in the healthcare field, which is more than any other sector. Texas Health Resources, Baylor Health System, and the UT-Southwestern Medical Center employ over 50,000 between them and the Fortune 500 company Tenet Healthcare has its headquarters in Dallas;
- Education The second-biggest employer in the Dallas-Fort Worth region is education, with the Dallas-Fort Worth and Arlington Independent School districts being the biggest employers. The University of Texas at Arlington isn’t far behind, with over 6,000 employees;
- Aviation and Airlines From the aerospace manufacturing facilities of Lockheed Martin, which employ over 14,000, to American Airlines, which employs 27,000, the aviation industry is a massive source of jobs in Dallas. The area also hosts the headquarters of both American Airlines and Southwest Airlines;
- Banking and Finance Dallas is the headquarters of the Fortune 500 financial institution Comerica Bank. Bank of America and JP Morgan Chase provide nearly 35,000 jobs in the area;
- Retail Dallas’ gigantic retail market provides roughly 8% of the area’s total employment, with brands like Wal-Mart, Kroger, and Target in the lead. You’ll also find JC Penney’s headquarters here;
- Government The public sector is another important Dallas-Fort Worth jobs creator, including the City of Dallas, the City of Fort Worth, and the U.S. Postal Service.
Education in Dallas, TX
The Dallas metro area serves as an important center of education in the southern U.S., with plenty of colleges and universities both in and around the city, including the University of Texas at Dallas, Southern Methodist University, the University of Texas Southwestern Medical School, and the University of Dallas.
Most of Dallas is served by the Dallas Independent School District, one of the largest in the country. The area is also home to some top-ranking magnet schools, including the School for the Talented & Gifted and the Science and Engineering Magnet.
Commuting Time in Dallas, TX
The Dallas-Fort Worth area as a whole has some of the worst commute times in the country, though the city of Dallas remains manageable, at around 25 minutes one way. Only 4% of Dallas residents use mass transit, and the number is even lower for Dallas-Fort Worth, at 0.7%.
Nonetheless, public transportation is available through Dallas Area Rapid Transit, or DART, including a light rail that operates from around 5AM to midnight each day. You can find out more here: https://www.dart.org/riding/riding.asp
- Total Population1,300,122
- Male Population(49.6 %) 644,344
- Female Population(50.4 %) 655,778
- Median Age32.50
- Average Household Income$78,925
- Median Household Income$47,285
- Median Income Under 25$32,969
- Median Income 25-44$50,022
- Median Income 45-64$51,856
- Median Income Over 65$38,778
Key takeaways: 682 million square feet of office space have been added across the country in the last 10 years. Campus-style tech companies greatly influenced the suburban expansion throughout the U.S. New York City, Chicago, and San Francisco grew the most on the fringes of the urban cores. The...
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