Fort Worth Office Market Gains Momentum in Third Quarter

Fort Worth's office market had a busy summer, according to JLL's Todd Burnette, who said activity showed no slowdown. JLL's third-quarter report shows net absorption positive for the fifth consecutive quarter, meaning more space was leased than vacated, along with declining vacancy and rising leasing activity.

Class A properties have led for some time, but Class B buildings are now gaining strength. Both classes are on track for their first positive year-end absorption since 2021. More than a dozen leases above 10,000 square feet were signed in the quarter, led by Goosehead Insurance, which renewed and expanded to nearly 250,000 square feet at The Terraces at Solana.

The city has about 377,041 square feet of office space under development, 30% of it preleased. Burnette expects more office development announcements.

Goldenrod Companies, based in Omaha, recently topped out The Van Zandt, an eight-story mixed-use project at 2816 W. Seventh St. with 226 apartments, 95,000 square feet of office space and 10,000 square feet of retail, valued at $145 million. The company also plans One University at 1001 University Drive, with groundbreaking expected next month, including 116,000 square feet of office space, about 260 multifamily units, 744 parking stalls and a hotel.

Elsewhere, Fort Worth-based Aeromax Group acquired Loutech, a Chino, California aerospace component manufacturer, terms undisclosed. Grapevine-based Kubota USA filed plans for a $10 million building at 1000 Kubota Drive, targeted for completion in July 2028.

For developers and lenders, the takeaway is that Fort Worth office fundamentals are tightening, and Class B assets are becoming a more credible target for capital.