Flight to Quality: Why Class A Office Space is Outperforming in DFW

Office tenants in Dallas–Fort Worth are moving into higher-quality buildings, a trend known as flight to quality. Data from the first half of 2026 shows Class A office buildings gaining tenants while Class B buildings lose them.

The short answer: Tenants are leaving older, lower-tier office buildings for newer Class A space with stronger amenities and better locations. In DFW, Class A buildings gained a net 283,282 square feet in the first quarter of 2026 while Class B buildings lost 493,481 square feet, according to Partners Real Estate. Demand is concentrating in Uptown and the northern suburbs.

What Is Flight to Quality in Office Real Estate?

Flight to quality is the movement of office tenants from older Class B and C buildings into newer Class A and trophy properties. It tends to accelerate when overall vacancy is high, because tenants have more options and more leverage to upgrade. Companies are prioritizing buildings that help them recruit and retain employees over buildings with the lowest rent.

What Does the Data Say About Class A vs. Class B in DFW?

The data shows a clear split: Class A is gaining tenants while Class B is losing them. In the first quarter of 2026, Class A buildings in DFW posted 283,282 square feet of positive net absorption while Class B buildings lost 493,481 square feet, according to Partners Real Estate. The same report put Class A gross rental rates at a record $37.47 per square foot, and overall leasing activity rose 43.6% from the prior quarter to 4.3 million square feet.

Demand stayed positive through mid-year. JLL reported 500,551 square feet of positive net absorption through the first half of 2026 and a Class A direct asking rent of $42.86 per square foot, as reported by REJournals. JLL also reported that more than 75% of the roughly 1.84 million square feet under construction was already preleased.

Different firms track the market differently, so vacancy rates vary by report. JLL put DFW vacancy at 26.5% in Q2 2026. Across reports, newer Class A buildings are gaining tenants while older buildings are losing them.

Why Are Tenants Choosing Class A Office Space?

Tenants are choosing Class A space because it helps them recruit, retain employees, and get people back into the office. A well-located building with strong amenities is easier to sell to job candidates. Walkable dining, outdoor space, and meeting areas give employees more reasons to come in. Many tenants also look for wellness features and certifications like Fitwel, a healthy-building certification program. Newer buildings also tend to offer better technology, efficiency, and floor plans than older properties.

JLL’s Q2 report described tenants “gravitating toward newly built or recently renovated buildings,” according to REJournals.

Where Is Flight to Quality Happening in DFW?

Demand is concentrating in Uptown and the northern suburbs, where newer, amenity-rich buildings are most common. Older submarkets have higher vacancy. In Q1 2026, vacancy reached 33% in the Dallas CBD and 31% in Las Colinas, while Preston Center held the lowest rate at 5.5%, according to Partners Real Estate.

The Dallas North Tollway corridor in Frisco is part of that northern suburban market. Frisco’s population reached 236,955 as of July 2025, up about 18% since 2020, according to the U.S. Census Bureau. Learn more on our Why Frisco page.

Talking Points Brokers Can Use With Clients

When clients ask whether upgrading is worth it, brokers can point to the data. Class A gained space in Q1 2026 while Class B lost nearly half a million square feet. Some clients may also be able to lease less space in a higher-quality building instead of renewing a larger footprint in an older one.

Timing is another factor. Most of the office space under construction in DFW is already preleased, so new Class A options are limited. Location also matters. Demand is concentrating in Uptown and the northern suburbs, and amenities like walkable dining, green space, and wellness features help companies recruit.

How HALL Park Fits the Flight-to-Quality Trend

HALL Park is a 162-acre mixed-use campus in Frisco, TX, with the Class A office space and amenities that tenants in this market are looking for. The Tower at HALL Park offers Class A office space along the Dallas North Tollway, and The Tower and The Terraces HALL Park (coming 2028) both hold Fitwel Certification.

Around the office buildings, tenants get Kaleidoscope Park, the Texas Sculpture Garden, HALL Park Hotel, and The Monarch Residences. Tango Room and Commissary are expected to open in early 2027, and The Terraces, a 10-story Class A building with more than 200,000 square feet, is expected to deliver in 2028. See the full plan on The Future of HALL Park.

For brokers, that means clients can lease space at HALL Park now and have room to expand on the same campus later.

Bring Your Clients to HALL Park

Have a client looking to upgrade their office? Connect with our leasing team here to learn more about available space at HALL Park.