The Dallas skyline tells a story of architectural ambition. With commercial properties spanning over 46 million square feet across 1,462 properties, the city’s vertical growth rivals its horizontal expansion. Behind these impressive structures lies a complex ecosystem where commercial and residential developments compete for prominence while also supporting each other’s success.
At EB3 Construction, we witness firsthand how Dallas’s property market creates unique challenges for builders. The city’s dual identity—where gleaming office towers in the Arts District stand just minutes from the residential charm of Bishop Arts—demands construction teams capable of navigating different regulatory landscapes and building methodologies. This dichotomy shapes our approach to each project.
The relationship between Dallas’s commercial corridors and residential neighborhoods is not merely about proximity—it reflects how urban development patterns respond to changing market demands. Developers increasingly seek contractors who understand how these distinct building types interact within the broader real estate ecosystem. Our teams specialize in bridging these worlds, recognizing that commercial viability and residential livability ultimately share foundations in quality construction practices.
What Types of Commercial Properties Dominate the Dallas Market?
The Dallas-Fort Worth commercial real estate landscape has maintained remarkable momentum through 2023, with distinct property types showing varying levels of demand and investment activity. As we build commercial spaces across the metroplex, we witness firsthand how market forces are reshaping the commercial property hierarchy in real-time.
Retail Leads the Commercial Construction Surge
Retail properties have emerged as the dominant force in Dallas commercial development, comprising over 50% of all new commercial projects initiated in Q4 2023. This activity reflects strong local consumer spending patterns that continue to drive demand for physical retail spaces despite nationwide concerns about e-commerce impacts.
Office properties represent the second-largest segment at approximately 29% of new commercial projects. Despite remote work trends affecting some markets, companies remain eager to establish and expand their North Texas footprints, particularly in strategic corridors along the Dallas North Tollway extending from Uptown to Frisco and Prosper.
Beyond these two dominant categories, the DFW commercial landscape includes medical facilities (9.1%), mixed-use developments (2.0%), hospitality properties (2.7%), recreational facilities (1.7%), and data centers (0.8%), creating a diverse commercial ecosystem that supports the region’s explosive growth.
Industrial Real Estate Gaining Momentum
While not matching retail’s dominance, industrial real estate construction in Dallas-Fort Worth showed significant growth in late 2023, with the total valuation of industrial projects hitting $5.65 billion. The vast majority of these new industrial developments—nearly 84%—are warehouses and distribution centers catering to sustained consumer demand and retailers’ need for increased logistics capacity.
Manufacturing facilities constitute approximately 13.6% of industrial construction, reflecting the region’s growing appeal for production operations. Cold storage claims a smaller yet strategic 2.5% slice, driven by ongoing focus on supply chain optimization and last-mile delivery systems.
Fort Worth leads industrial development with project values estimated at $345.5 million, while areas like Mesquite, Dallas proper, Grand Prairie, and Red Oak have seen even more dramatic percentage increases year-over-year. This pattern demonstrates how we are expanding industrial footprints across the entire metroplex rather than concentrating in traditional industrial zones.
Property Size and Configuration Trends
The DFW market includes commercial properties ranging from small retail storefronts under 1,000 square feet to massive industrial complexes exceeding 500,000 square feet. In the office sector, available properties span from approximately 1,000 square feet to over 450,000 square feet, offering options for businesses at every growth stage.
We are seeing increasing demand for flexible configurations that accommodate hybrid work models in office properties. For industrial spaces, ceiling clearance heights have become as important as square footage, with modern logistics facilities now regularly requiring 36-40 foot clear heights to maximize cubic storage efficiency.
Ground-up construction and additions make up roughly 29% of commercial projects, while interior tenant improvements account for over 71%—indicating strong activity in repurposing and renovating existing spaces to meet evolving business needs.
Geographic Distribution of Commercial Development
Dallas proper continues to lead overall commercial investment, with project values totaling $821.9 million in Q4 2023—an impressive 246% annual gain that demonstrates the enduring appeal of urban core locations. However, we are witnessing substantial growth across the metroplex, with suburbs like Red Oak, Garland, and Lewisville experiencing dramatic increases in commercial investment.
The northern suburbs remain particularly active for new office developments, while industrial construction shows strength in southern and eastern sections of the metroplex where larger land parcels remain available at competitive prices. This geographic diversity creates countless opportunities for strategic property development across Dallas-Fort Worth.
From our perspective as builders, we experience firsthand how the Dallas commercial landscape constantly evolves to meet changing economic conditions. The strength across multiple commercial property types signals a resilient market poised for continued growth through 2024 and beyond, even as construction approaches appear to be shifting from speculative development toward purpose-built facilities with committed tenants.
How Extensive is Dallas’s Commercial Property Inventory?
Dallas stands as a commercial real estate powerhouse with a remarkable inventory of nearly 47 million square feet of leasable commercial space distributed across more than 1,460 properties. This massive footprint positions Dallas as one of the most robust commercial markets in the nation. It represents real options for businesses and investors looking to establish or expand their presence in this thriving Texas metropolis.
When coordinating development projects in Dallas, we operate within one of the most diverse property landscapes in the country. The office sector alone encompasses over 27 million square feet across nearly 500 properties, offering everything from gleaming downtown high-rises to flexible suburban campuses. This office inventory could house approximately 135,000 employees—roughly equivalent to the workforce of several Fortune 500 companies combined.
The industrial sector tells an equally compelling story. With over 11.5 million square feet of available industrial space, Dallas offers unparalleled opportunities for warehousing, logistics, and manufacturing operations. This industrial footprint has become especially critical as e-commerce reshapes supply chain requirements across North Texas. The strategic location of these properties—with access to major highways, railways, and DFW International Airport—creates a logistics ecosystem that few other markets can match.
Retail spaces round out Dallas’s commercial offerings with approximately 4.2 million square feet across more than 420 properties. These range from neighborhood strip centers to premium shopping destinations in areas like Uptown and the Design District. This inventory allows us to find appropriate retail solutions whether working with a national chain requiring 50,000 square feet or a boutique operation needing just 1,500.
What makes this inventory truly valuable is its distribution throughout the metropolitan area. While Downtown Dallas and Uptown contain significant concentrations of Class A office space, other commercial districts like the Medical District show the highest number of industrial opportunities. This geographic spread enables us to align property selection with workforce access, customer demographics, and operational needs when managing construction projects.
Beyond just raw numbers, we’re also seeing evolution in how this inventory is utilized. Mixed-use developments are becoming increasingly common, with properties combining retail, office, and even residential components. As general contractors, we’re frequently tasked with adapting existing structures to accommodate this trend toward multi-functional spaces, particularly in areas experiencing urban revitalization.
The density of commercial property in Dallas varies significantly by district. In Downtown Dallas, commercial buildings can reach impressive heights, maximizing square footage on limited footprints. In contrast, industrial properties in areas like the Medical District typically feature lower-profile but more expansive structures, often exceeding 100,000 square feet per building. This variation in property characteristics across districts creates diverse construction requirements that require experienced coordination.
The average size of Dallas office properties is approximately 205,000 square feet, though individual buildings range from small professional suites to massive corporate headquarters exceeding 1 million square feet. This scale diversity enables us to execute construction projects that precisely match client needs rather than forcing businesses into poorly-fitted spaces.
When examining competition for space, the Dallas market shows remarkable resilience. The retail sector maintains particularly tight inventory levels, with vacancy rates at historic lows of just 4.5%. This underscores the consistent demand for well-located retail spaces and explains why many of our retail construction projects involve custom build-outs of existing spaces rather than ground-up development of new inventory.
This extensive and varied inventory positions Dallas as a premier market for businesses requiring commercial space. Whether coordinating office renovations in Uptown, overseeing industrial facility expansions near major transportation corridors, or managing retail build-outs in emerging neighborhoods, we leverage our understanding of Dallas’s commercial property landscape to deliver construction solutions that maximize the potential of these diverse spaces.
What Investment Opportunities Exist in Dallas Buildings?
The Dallas-Fort Worth commercial real estate market continues to show remarkable resilience and growth in 2025, offering investors diverse opportunities across multiple sectors. As construction managers, we’ve witnessed firsthand how the region’s population surge, corporate investment influx, and strategic development initiatives create compelling opportunities for property investors looking to expand their portfolios.
The current market presents several distinct advantages for those considering commercial property investments in Dallas:
Office Market Evolution
Dallas’s office sector has shown surprising resilience in recent quarters, with leasing activity reaching its highest levels since before the pandemic. We see significant shifts in this space as businesses adapt to new work models:
- Class A spaces in prime locations like Uptown and Turtle Creek command premium rates ($40-80 per square foot) but offer strong tenant retention.
- Suburban office properties have experienced a 6% year-over-year growth in leases as businesses seek affordability and workforce proximity.
- Adaptive reuse opportunities exist for older properties that can be renovated to meet modern sustainability standards and flexible workspace requirements.
When evaluating office properties for clients, we examine not just the current vacancy rates (around 17.9%) but the property’s adaptability to hybrid work models—a critical factor in today’s evolving business environment.
Industrial Sector Growth
The industrial segment continues to be the standout performer in Dallas’s commercial real estate landscape. As construction specialists, we’re particularly active in this sector, helping clients navigate supply chain optimization through strategic facility placement:
- Logistics and distribution centers near major transportation corridors show consistent demand growth.
- Data center development has created a modern ‘gold rush’ for properties with existing power infrastructure.
- Despite a 9.2% vacancy rate, industrial properties continue to see rental growth (averaging $9.90 per square foot).
The market for industrial properties remains highly competitive, with investors drawn to the sector’s strong fundamentals and relatively stable returns amid e-commerce expansion.
Retail Transformation
Dallas’s retail landscape is evolving significantly as consumer behaviors change. Our teams are increasingly involved in projects that blend traditional retail with experiential elements:
- Mixed-use developments combining retail, dining, and entertainment show strong performance.
- Neighborhood-focused retail centers serving growing residential communities present stable investment opportunities.
- Vacancy rates of just 4.7% reflect the sector’s health and ability to adapt to changing consumer preferences.
Strategic positioning is crucial when considering retail investments—we help clients identify locations that benefit from strong foot traffic and emerging neighborhood dynamics.
Investment Considerations
When coordinating commercial property acquisitions for clients, we emphasize several critical factors that influence investment success in Dallas:
- Location dynamics: Submarket performance varies significantly across Dallas-Fort Worth, with areas like Collin County showing extraordinary growth (132% since 2000).
- Infrastructure development: Properties near transit developments like DART’s Silver Line often see value appreciation.
- Power capacity: With unprecedented demand for electricity, especially for data centers, properties with robust power access command premium values.
- Financing options: Innovative programs like Commercial Property Assessed Clean Energy (C-PACE) financing provide advantageous terms for energy-efficient improvements.
We’ve found that successful Dallas commercial real estate investments typically require thorough due diligence and local market expertise to identify properties with the strongest appreciation potential.
Market Entry Strategies
As construction managers with deep connections in the Dallas market, we implement various approaches to help investors enter this competitive landscape:
- Value-add opportunities: Identifying properties with renovation or repositioning potential that can capture rising market rates.
- Strategic partnerships: Facilitating joint ventures between capital partners and local operators with market-specific expertise.
- Development projects: Managing ground-up construction in emerging submarkets where land costs remain reasonable.
- Property type diversification: Building balanced portfolios that combine stable income properties with growth-oriented assets.
The Dallas commercial real estate market rewards investors who approach it with both strategic vision and tactical expertise. By leveraging our construction and project management capabilities, we help clients navigate market complexities while maximizing their investment potential in one of America’s most dynamic real estate markets.
Conclusion: The Future of Dallas’s Building Landscape
The Dallas real estate market stands at a compelling intersection of stability and growth, creating a foundation for construction projects that will shape the city’s skyline for decades. We’ve seen how Dallas continues to outperform other metropolitan areas through economic diversification, population expansion, and business-friendly policies that make construction projects both viable and valuable in the long term.
As general contractors serving this dynamic market, we recognize that Dallas’s growth isn’t merely quantitative—it’s qualitatively different from previous cycles. The city’s construction needs have evolved beyond simply building more structures to creating smarter, more sustainable spaces that accommodate shifting workplace dynamics, mixed-use requirements, and enhanced residential amenities. This evolution demands construction partners who understand both current market realities and the trajectory of future development.
The data clearly supports Dallas’s resilience: with median listing prices holding firm at approximately $419,000 and new infrastructure investments continuing across urban corridors, we’re positioned to deliver construction services across a market that balances affordability with appreciation potential. From emerging neighborhoods like East Oak Cliff to established areas like Preston Hollow, our construction approach adapts to each zone’s unique market position while maintaining consistent quality and code compliance throughout.
Looking ahead, we anticipate sustained demand across diverse property segments—from single-family residential to industrial facilities—requiring construction teams that can navigate material costs, labor availability, and evolving building codes. The distinction between successful and struggling projects will increasingly depend on contractors who can provide transparent timelines, detailed cost analyses, and responsive project management throughout the building process.
Ready to break ground on your next Dallas construction project? Contact EB3 Construction to discuss how we can help transform your building vision into reality.
