Dallas’s Dynamic Office Market: Uptown, Preston Center, and North Central Expressway Lead the Charge
Despite headlines about trouble for many office markets across the country, including Dallas-Fort Worth, three key office submarkets are largely bucking the common narrative. While many areas grapple with hybrid work, flight-to-quality trends, and companies reducing their real estate footprints, Uptown, Preston Center, and North Central Expressway are notable exceptions. These submarkets continue to showcase resilience and strong demand for high-quality office space, driven by their central locations, land constraints, and premium amenities. They not only defy the broader market downturn but also maintain some of the highest average asking rates across DFW. The ongoing investment and high-profile leases in these areas highlight the sustained appeal of top-tier office space, reinforcing Dallas’s standing as a major commercial hub amidst a rapidly evolving office landscape. In Q4 2024, the overall DFW office market vacancy rate stabilized at 25.2%, unchanged from Q3 but up 20 basis points year-over-year. Meanwhile, Uptown, Preston Center, and Central Expressway demonstrate stronger fundamentals, with Preston Center’s vacancy rate at a remarkable 9.1%—far below the DFW average—Uptown at 23.2%, and Central Expressway at 24.4%. These submarkets’ ability to maintain lower vacancy rates and attract premium tenants underscores their outperformance against a DFW market facing negative net absorption of -132,955 square feet for the quarter.
Recent high-profile leases across three prominent Dallas submarkets—Uptown, Preston Center, and North Central Expressway—underscore the city’s growing status as a major commercial hub. These developments showcase the unique strengths of each area and their increasing appeal to a diverse range of businesses.
Uptown, A Brief Look Back
Uptown Dallas has evolved into one of the city’s most vibrant and sought-after office submarkets, but its transformation began decades ago. What is now a bustling district of luxury apartments, high-end retail, and premium office space was once an industrial area, dotted with warehouses and modest residential buildings. The pivotal moment in Uptown’s history came in the mid-1980s with the development of The Crescent, a sprawling mixed-use project that helped lay the foundation for the area’s transformation.
The Crescent, developed by Crescent Real Estate and designed by renowned architect Philip Johnson, was an ambitious $400 million project that redefined the standard for luxury office space in Dallas. Its striking design, blending classical architecture with modern elements, set a new benchmark for premium office properties. More importantly, it demonstrated the viability of Uptown as a commercial hub, attracting top-tier tenants and sparking further investment in the area.
Following the success of The Crescent, Uptown began to attract other high-profile office developments, luxury residential projects, and an influx of retail and dining options. Over time, it has evolved into a live-work-play destination, with The Crescent remaining one of its cornerstone properties. Today, Uptown stands as a testament to visionary development, with The Crescent playing a foundational role in its rise as one of Dallas’s premier office submarkets. This historical strength continues to drive Uptown’s modern success, with 66% of DFW’s 2.9 million square feet of under-construction office space concentrated here in Q4 2024, far outpacing the broader market’s declining development pipeline, which dropped 49% year-over-year.
Uptown: A Vibrant Hub for Growth
Uptown Dallas continues to solidify its position as the premier office destination in the Dallas-Fort Worth metroplex. This vibrant live-work-play neighborhood boasts the highest concentration of high-amenity buildings within the urban core, offering a pedestrian-friendly environment with over 200 restaurants and 160 shops. The area’s blend of high-end Class A properties, a thriving atmosphere, and rapid residential growth (over 10,000 new apartment units since 2010) makes it a magnet for both businesses and residents seeking a dynamic urban experience. With a vacancy rate of 23.2% in Q4 2024—below the DFW average of 25.2%—and significant construction activity, Uptown outperforms the broader market, where leasing activity remained flat at 3.8 million square feet and net absorption turned negative.
Wingstop’s Headquarter Relocation to One West Village
Wingstop’s recent relocation to a substantial 112,000-square-foot space at One West Village (2801 N Central Expressway) highlights this trend, reflecting Uptown’s attractiveness for expanding companies. With its mix of walkable charm, modern amenities, and a concentration of financial firms like Bank of America, Deloitte, and Goldman Sachs, Uptown remains a key player in Dallas’s office market. Developers remain optimistic about Uptown’s appeal, with about 2 million square feet of office space currently under construction, representing a significant portion of all Dallas-Fort Worth office development.
Invesco’s Move to The Union
Further solidifying Uptown’s appeal, Invesco, an Atlanta-based investment management company, has signed a lease for 58,464 square feet at The Union, a Class A, 22-story tower in Uptown. This move from the Trammell Crow Center in downtown Dallas demonstrates the continued shift of major companies towards Uptown’s vibrant environment.
The Link at Uptown: A Prime Example of Uptown’s Allure
The Link at Uptown, a 25-story, Class AA office tower strategically located in the heart of Uptown, stands as a testament to the area’s appeal for businesses seeking premium office space. Its impressive 97% occupancy rate, achieved shortly after its completion in 2021, underscores the strong demand for new construction in this vibrant submarket. The Link’s strategic positioning, connecting Uptown, Victory Park, and Downtown Dallas, along with its luxurious amenities, including two ground-floor restaurants, overnight executive suites, and a full amenity floor with a breathtaking outdoor terrace, make it a highly desirable address. The presence of prominent tenants like PMG, Houlihan Lokey, McGuireWoods Consulting, Newmark, and Sherman & Sterling further solidifies The Link’s status as a premier office destination in Uptown.
Victory Commons One: A Cutting-Edge Yet Challenged Addition to Uptown
Victory Commons One, completed in late 2021, stands as the first phase of a planned three-building development in Victory Park, offering an urban campus in the heart of Dallas. This 15-story, 352,000-square-foot Class A office tower is designed with next-generation technology and a strong emphasis on tenant safety and wellness, including features like touchless access, advanced air purification systems, and an innovative offset core design that enhances floor plan flexibility and natural light. Located adjacent to the DART and TRE Uptown Station, and at the trailhead of the popular Katy Trail, Victory Commons One boasts proximity to over 9,500 multifamily units, hundreds of restaurants, and numerous entertainment options. The building’s amenities, such as a one-acre landscaped park, a 5,000-square-foot Sky Garden, and a state-of-the-art fitness center, further reinforce its appeal. In early 2025, the property gained traction with Lockton, the world’s largest privately held insurance brokerage, signing an approximately 100,000 sq. ft. lease at the Uptown Dallas office tower. The deal marks a pivotal moment for the development, which was only 25% leased a full three years after it was completed.
Parkside Uptown: A Magnet for Financial Giants
The ongoing development of the Bank of America Tower at Parkside Uptown exemplifies the growing trend of major financial institutions relocating and expanding within Uptown. Bank of America’s commitment to lease 49% of the 500,000-square-foot tower, relocating most of its team from downtown Dallas and other suburban offices, underscores the area’s attractiveness. With its prime location near Klyde Warren Park and planned high-end amenities, Parkside Uptown further solidifies Uptown’s position as a financial powerhouse and reinforces the ongoing migration of businesses from the Dallas CBD to this thriving district.
Goldman Sachs’ Dallas Campus at NorthEnd: A Testament to Uptown’s Growth
Goldman Sachs’ decision to build its new 800,000-square-foot Dallas campus in Uptown’s NorthEnd development further cements the area’s status as a prime destination for major financial companies. The state-of-the-art facility, designed to accommodate over 5,000 employees, demonstrates Goldman Sachs’ commitment to expanding its presence in the Dallas market and choosing Uptown as the hub for its future growth. This significant investment highlights Uptown’s ability to attract top-tier companies and reinforces its position as a thriving center for business and innovation.
23Springs: A Rising Landmark in Uptown, Attracting Top-Tier Tenants
The under-construction 23Springs tower in Uptown is rapidly emerging as a landmark development, attracting high-profile tenants and further fueling the area’s growth. The 26-story, Class AA tower, a joint venture between Granite Properties and Highwoods Properties, has already secured significant pre-leases, highlighting its appeal.
- Sidley Austin’s Expansion: The global law firm Sidley Austin, driven by its rapid growth and need for additional space, has committed to 118,000 square feet, occupying the top four-and-a-half floors. This move from their current location at McKinney & Olive underscores the allure of 23Springs’ prime location, Class AA amenities, and expansion opportunities.
- Deloitte’s Relocation: Professional services giant Deloitte is also set to relocate its Dallas operations from Dallas Arts Tower (formerly known as Chase Tower) to 23Springs, taking up 104,000 square feet across four floors.
- Bank OZK’s Anchor Tenancy: Bank OZK serves as both a major tenant, occupying over 110,000 square feet, and the construction lender for the project, demonstrating strong confidence in 23Springs and the Uptown market.
With its impressive tenant roster and planned high-end amenities, including a hospitality-driven lobby, outdoor lounge, fitness center, and sustainable features, 23Springs is poised to become a sought-after address in Uptown, contributing to the area’s continued vibrancy and appeal.
Harwood No. 15: Jones Day’s Continued Commitment to Uptown
The upcoming Harwood No. 15 tower in the Harwood District further exemplifies Uptown’s attractiveness for major firms. International law firm Jones Day’s decision to relocate its Dallas office to this new development, taking up over 73,000 square feet, demonstrates the area’s ability to retain and attract top-tier businesses. This move, coupled with the firm’s nearly three-decade presence in the Harwood District, underscores the area’s enduring appeal and its ability to foster long-term relationships with prominent companies.
The Quad: A Modern Take on Uptown’s Office Scene
The Quad, a newly completed (May 2024) 12-story office development at 2699 Howell Street, is redefining Uptown’s office landscape with its blend of contemporary workspace and vibrant amenities. Encompassing 335,000 square feet of high-end office space, The Quad emphasizes modern design, featuring dramatic 13.5-foot floor-to-ceiling windows, a full-service fitness studio, and a penthouse-level QUAD Club with a tenant lounge and conference center. A hallmark of the project is its one-acre outdoor urban lawn, seamlessly integrating open-air dining and retail experiences. The Quad has already secured major tenants such as M Financial Group, Texas Pacific Land Corporation, and Willkie Farr & Gallagher, showcasing strong demand for its premium, next-generation office environment. The property is currently 58% leased, with Texas Pacific Land committed to 32,844 square feet and Willkie Farr & Gallagher taking 32,844 square feet, both scheduled for mid-2025 move-ins.
Preston Center: Stability and Strategic Growth
Preston Center stands out for its stability and strategic appeal. Despite broader market trends, the submarket has maintained steady vacancy rates and absorbed 130,000 square feet of office space in the past year. Known for its highly educated workforce and upscale amenities, including 165 restaurants and the Plaza of Preston Center, Preston Center offers a desirable environment for businesses seeking prestige and reliability. In Q4 2024, Preston Center’s vacancy rate of 9.1% is the lowest among major DFW submarkets, compared to the market-wide 25.2%, highlighting its exceptional stability. While the DFW market saw negative absorption of -132,955 square feet, Preston Center’s consistent demand and limited supply position it as a standout performer.
Preston Center’s Origins
Preston Center has long been a key commercial district in Dallas, known for its strategic location and enduring appeal to both businesses and high-end retailers. Its history as a premier office submarket stretches back to the mid-20th century, when development in the area began to take shape in response to the city’s northward expansion. Located at the intersection of Preston Road and Northwest Highway, Preston Center’s proximity to affluent neighborhoods such as Highland Park and University Park made it an ideal location for office and retail developments catering to high-net-worth individuals and prominent businesses.
The district’s commercial prominence was solidified in the 1980s and 1990s when a wave of office buildings and mixed-use developments transformed Preston Center into a thriving business hub. Unlike other parts of Dallas that experienced cycles of boom and bust, Preston Center’s growth has been steady and stable, thanks in large part to its landlocked location, which limits new development and keeps vacancy rates low.
One of the defining aspects of Preston Center’s success has been its ability to attract a mix of local businesses, corporate offices, and high-end retail tenants. The area has become synonymous with prestige, serving as a headquarters for financial firms, law practices, and private equity groups. Its walkable layout, coupled with easy access to some of the city’s wealthiest residential communities, has ensured that Preston Center remains a highly sought-after location for companies looking for a central and prestigious office address.
Today, Preston Center continues to thrive as a high-demand office submarket, with limited availability and some of the highest asking rents in Dallas. Its deep-rooted history, combined with modern development and its prime location, make it a key player in Dallas’s commercial real estate landscape.
Weir’s Plaza: A Testament to Preston Center’s Appeal
Weir’s Plaza, the 2021 completed mixed-use development in Preston Center, serves as a testament to the area’s attractiveness. The project was fully pre-leased during construction, demonstrating strong demand for its prime location and Class A office space. Key tenants like Kirkland & Ellis and Fortress Investment Group highlight the caliber of businesses drawn to Preston Center. With its mix of office, retail, and residential components, Weir’s Plaza exemplifies the trend towards mixed-use developments in sought-after submarkets like Preston Center, which boasts a high concentration of Class A office space, accounting for 66% of total inventory. The planned Knox Promenade, featuring three towers with office, residential, and senior living space, further contributes to the area’s growth and appeal.
8111 Douglas: A Bold New Landmark in Preston Center
A prime example of Preston Center’s allure is the recently completed 8111 Douglas, a mixed-use tower that serves as the new global headquarters for Lincoln Property Company. This 13-story Class-A tower features 225,000 square feet of office space, 128 luxury residential units, and a premier amenity package, including a penthouse meeting space, fitness areas, and recreational facilities. The development also includes a ground-floor restaurant and over 1.3 acres of outdoor green space. 8111 Douglas represents a significant addition to Preston Center, showcasing the area’s ability to attract high-profile companies and offer a modern, mixed-use environment. The recent lease of 27,619 square feet by Diamondback Energy at 8111 Douglas Avenue underscores the growing demand for premium office spaces in this strategically located submarket, bolstered by its proximity to Dallas Love Field Airport and Diamondback’s planned $26 billion merger with Endeavor Energy Resources.
The Knox (3311 Knox St)
The Knox, a 200,000-square-foot office project at 3311 Knox St. in Dallas’ Preston Center submarket, is currently under construction and set for completion in December 2026. Despite still being in development, the building is already 100% pre-leased, demonstrating strong demand for Class A office space in the area. Major tenants include ISN, which will occupy the top floors with 106,000 square feet, Paul Hastings LLP, taking 37,000 square feet, and BDT & MSD, leasing 23,000 square feet. This full pre-leasing signals confidence in the Preston Center market and highlights The Knox as a premier addition to Dallas’ office landscape. The Knox’s 100% pre-leasing contrasts sharply with the DFW market’s declining construction pipeline of 2.9 million square feet, where only a fraction is pre-leased, reinforcing Preston Center’s superior tenant demand.
North Central Expressway: A Hub for Established Businesses and Adaptive Reuse
The North Central Expressway submarket, extending along the North Central Expressway from the Dallas CBD to LBJ Freeway, is recognized for its mix of financial services, telecom, and tech firms, offering a substantial amount of investment-grade office space. The area is also seeing a trend of adaptive reuse, with older office buildings being transformed to meet evolving market demands. In Q4 2024, Central Expressway’s vacancy rate of 24.4% is slightly below the DFW average of 25.2%, and its Class A vacancy of 29.2% reflects a flight to quality, though it outperforms struggling submarkets like the Dallas CBD (31.6%) and Mid-Cities (27.8%). This submarket’s adaptability and strategic location keep it competitive despite broader market challenges.
North Central Expressway’s Origins
The North Central Expressway office submarket has grown into one of Dallas’s most dynamic commercial corridors, largely due to its strategic positioning along the major thoroughfare of US-75. The development of North Central Expressway, which connects downtown Dallas to the northern suburbs, has been pivotal in shaping this submarket’s appeal. Offering excellent visibility and accessibility, the freeway has long attracted businesses seeking prime office space with convenient transportation links.
Historically, the submarket benefitted from the city’s outward growth and infrastructure improvements in the mid-to-late 20th century. As Uptown Dallas and Preston Center flourished, North Central Expressway emerged as a natural extension of these high-demand areas, providing office tenants with a more cost-effective option while still maintaining proximity to Dallas’s core business districts. As Uptown became a hub for high-end, premium office space, and Preston Center catered to prestige-seeking businesses, North Central Expressway capitalized on its location by offering a blend of accessibility and value.
This submarket has become particularly attractive for tenants who want the convenience and status of being close to Uptown and Preston Center without the top-tier price tag. The ease of commuting via the freeway, combined with the proximity to prestigious neighborhoods and other commercial hubs, has drawn in a wide range of tenants, from tech companies to professional services firms.
The continued development along North Central Expressway, coupled with its ability to “draft” tenants off Uptown and Preston Center, has helped sustain demand for office space in this corridor. The submarket’s diverse inventory, ranging from older, more affordable properties to newer Class A office buildings, ensures a broad appeal for companies looking to establish a presence in one of Dallas’s most strategically located submarkets. Today, North Central Expressway is known for offering a strong blend of convenience, value, and proximity to Dallas’s most sought-after business districts, making it a key player in the region’s office market.
Cityplace Tower: Embracing Mixed-Use Transformation With Uncertainty Ahead
A prime example of this adaptive reuse trend is Cityplace Tower. In early 2023, Neiman Marcus had a major expansion (but in early 2025, it was announced the tenant would be leaving the property, all the while there are plans for the building to undergo a $61.5 million conversion of vacant office space into 98 high-end apartments). This move by NexPoint Diversified Real Estate Trust reflects the growing demand for residential options in prime locations and the adaptability of older office buildings. Furthermore, plans for a 222-room hotel and conference space within the tower highlight the area’s potential for mixed-use development and its attractiveness for both businesses and residents.
Renovation and Redevelopment: A Hallmark of the Submarket
Renovations are a common occurrence along Central Expressway, with significant efforts to enhance the quality of the office inventory. This focus on redevelopment ensures that North Central Expressway remains appealing to businesses seeking modern workspaces, even as the broader DFW market sees a decline in new construction, with deliveries dropping to 682,531 square feet in Q4 2024 from 1.8 million in Q3.
Looking Ahead: The Future of Dallas’s Premier Office Submarkets
As we look ahead, Uptown, Preston Center, and North Central Expressway are poised to maintain their momentum as key office submarkets, with each continuing to evolve in response to changing market dynamics and business needs.
Uptown’s Continued Transformation and Appeal
Uptown is likely to remain the premier choice for top-tier tenants due to its unique blend of high-end office space, luxury residential options, and retail amenities. With major developments like 23Springs and Goldman Sachs’ new campus reinforcing its status, the area’s appeal to financial firms, law offices, and tech companies is expected to grow. The live-work-play environment will continue to attract both businesses and residents, while new office construction will keep supply robust, helping to meet ongoing demand for premium space. With 66% of the DFW construction pipeline concentrated here, Uptown’s growth trajectory outpaces the broader market’s 49% year-over-year decline in under-construction space.
Preston Center’s Steady Growth and Prestige
Preston Center’s stability, land constraints, and central location will preserve its status as a highly desirable office submarket. As space remains scarce and new developments like 8111 Douglas and Weir’s Plaza showcase the submarket’s prestige, the area is set to attract more financial institutions, law firms, and corporate headquarters. The ongoing trend toward mixed-use developments in Preston Center will enhance its attractiveness, but the limited availability of land may result in higher rents, further cementing its position as a premium option for businesses seeking exclusivity and long-term stability. Its 9.1% vacancy rate and projects like The Knox, 100% pre-leased, signal enduring strength against a DFW market with flat rental rates of $30.85 per square foot.
North Central Expressway’s Role as a Hub for Adaptive Reuse and Growth
The North Central Expressway corridor is expected to see continued growth through adaptive reuse projects and a focus on attracting cost-conscious tenants who still want proximity to Uptown and Preston Center. The submarket’s blend of older office stock and newer Class A buildings will likely appeal to companies seeking value without compromising on accessibility or amenities. The renovation of Cityplace Tower into a mixed-use complex exemplifies this submarket’s potential for transformation, and similar projects will likely continue to draw both businesses and residents. With a vacancy rate of 24.4% and ongoing redevelopment, Central Expressway offers a competitive edge over submarkets like the Dallas CBD (31.6%), despite the DFW market’s negative absorption trends.
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Steve Triolet
Senior Vice President of Research and Market Forecasting
[email protected]
tel 214 223 4008
