Rounding out 2024, Texas’ commercial real estate market continued to flourish with Class A properties, multifamily developments and office space in high demand, according to experts who weighed in on the year’s trends and opportunities. Brooke Armstrong, president of CBRE’s Advisory Service for Texas, Oklahoma, and Arkansas, painted a vibrant picture of the Texas, landscape, with input from Marcy Phillips, senior vice president at Ryan Companies, and Torrey Littlejohn, managing director at JLL.
“2024 was a continuation of trends we were already seeing in Texas,” Armstrong said. “We are the best place in the country for companies to do business and own real estate.”
This sustained growth is largely tied to Texas’ population boom, a factor that Armstrong said continues to attract businesses and drive a robust demand for top-tier, Class A commercial spaces.
From the office perspective, mixed-use developments have gained popularity as employers seek spaces that reduce commutes and enhance live-work-play experiences. This shift aligns with a post-pandemic
trend in which attractive, high quality workspaces lure employees back to the office. Following periods of hesitation in tenant decisions, often tied to financial
market uncertainties and shifting workplace mandates, companies are increasingly moving forward with decisions that had been on hold.
“While Q3 and Q4 are usually some of the busiest of the year, it’s been an especially exciting period as
more requirements and business opportunities are starting to materialize, which will carry us into the new year,” Littlejohn added.
JLL’s strategies focused on providing customized solutions tailored to each client’s unique industry needs.
“It’s important for companies to understand the benchmarking, challenges and solutions their peers have been able to use,” Littlejohn explained.
By bringing in data from across industries, she said JLL aims to help corporate clients make informed choices that align with market realities. That’s especially valuable as demand for Class A office space has become a competitive race, especially in markets like Dallas’ Uptown area. “There’s not as much available as it seems, especially with construction dwindling,” Littlejohn said, adding that scarcity has intensified competition among prospective tenants looking for two-floor spaces. “For us, it remains important to be strategic and keep our tenants up to date on what’s happening in the market so they can make informed decisions.” For multifamily and mixed-use projects, Phillips highlighted a natural slowdown in Austin, something she said was expected after a surge of new projects launched between 2021 and 2023. Rising interest rates and slowing job growth further contributed to a more tempered pace, with a projected “supply cliff” in 2025 that could allow the market to stabilize.
“Site selection has become highly competitive, with developers racing to break ground first,” said Phillips of how developers are navigating an increasingly complex entitlement process as city regulations tighten. “Municipalities just outside the Austin city limits have responded by tightening zoning ordinances, pushing for mixed-use communities instead.”
Looking forward, she predicted strong demand fundamentals in highgrowth submarkets around Dallas, drawing both capital and tenant interest. Phillips sees 2025 as an opportunity for the multifamily sector to provide “best-in-class offerings,” catering to a market increasingly selective about site quality and investment returns.
Armstrong shared Phillips’ optimism about Texas’ attractiveness as a commercial hub. She pointed to Texas’ emerging status as a prime destination for financial services with Dallas set to host the newly announced Texas Stock Exchange.
“This would be an enormous driver for economic growth in Dallas and Texas as a whole,” Armstrong said. The state’s retail and industrial markets have also demonstrated resilience and growth. Armstrong observed that while e-commerce has prompted retailers to adapt, demand for in-store experiences has remained robust.
Meanwhile, industrial demand in Texas has been steady, with surging interest in data centers driven by advancements in AI.
“There have been challenges with uncertainties in the financial markets, particularly with capital markets,” Armstrong said. “Texas has weathered the storm much better than other states, and we expect activity to increase even more now that the Fed has had two consecutive rate cuts.” Armstrong underscored CBRE’s commitment to helping clients navigate this dynamic landscape. By connecting its local, national and global resources, CBRE aims to deliver value and strategic insights to clients navigating a constantly evolving market. Armstrong highlighted notable transactions this year, including Wingstop’s 112,000-squarefoot headquarters lease in Dallas, as a testament to CBRE’s capacity to
drive outcomes even during uncertain times.
As Phillips, Armstrong and Littlejohn prepare for 2025, they each anticipate continued demand for high-quality spaces across Texas’ diverse markets.
“Flexibility is key,” Littlejohn said, whether in terms of office expansion, parking needs or the ability to shift workplace dynamics. “While new construction is amazing and the Dallas skyline has transformed so much over the years because of it, it is not the only answer for tenants looking for office space.”
She added that Dallas-Fort Worth’s mix of newly delivered and highquality existing spaces would continue to meet tenant needs in the coming year.
“As we wrap up 2024 and head into 2025, I am cautiously optimistic,” Littlejohn said.
