Downtown Dallas Commercial Real Estate — Dallas, TX
26M SF office market transitioning rapidly. AT&T headquarters relocating to Plano by 2028 reshapes supply. Arts District and Convention Center expansion (2029) anchor mixed-use revival.
Historic Urban Core Undergoing Functional Transformation
Downtown Dallas commands 26M SF of office space and remains a major employment hub, but the market faces meaningful transition. With AT&T's relocation to Plano headquarters by 2028, approximately 5,000+ jobs will vacate the CBD, creating 34.1% office vacancy—a metric that demands strategic repositioning by landlords and opportunity for savvy tenants.
However, the Arts District expansion, Convention Center renovation (completion 2029), and aggressive downtown living initiatives are catalyzing mixed-use revival. Over 10,000 apartments have been converted from aging office stock, bringing residential vibrancy to the urban core and supporting street-level retail. New tech and creative-sector companies are claiming adaptive-reuse space at attractive rents.
DART's four light rail lines provide unmatched regional connectivity. Our team identifies motivated sellers and creative deal structures in the transitional office market, while simultaneously positioning residential and hospitality investors to capture downtown living upside. Office-to-residential conversions represent our highest-conviction play in this submarket.
From Arts District to Convention Center Revival
The Arts District (with museums, galleries, and performing arts venues) anchors the northern portions, while Main Street and Elm Street corridors link downtown to uptown via the M-Line. The Convention Center's planned expansion creates demand for hotel, retail, and event-oriented commercial tenants. Parking and loading become critical infrastructure for hospitality and events operators.
Office stock divides into legacy Class A towers (seeking repositioning or conversion) and smaller, adaptive-reuse Class B/C buildings attracting creative firms, nonprofits, and tech startups at $15-22/SF. We analyze each corridor's tenant mix and walkability to recommend positioning for each investor profile—stabilized cashflow plays versus high-growth conversion potential.
Adaptive Reuse and Mixed-Use Upside
Downtown Dallas presents classic adaptive reuse economics: underutilized office stock, favorable conversion costs, strong residential demand, and a cultural anchor (Arts District) creating destination appeal. While office loses AT&T, residential and hospitality tenants value authenticity, walkability, and lower rents than suburban campuses. Our team identifies conversion-ready assets and secures long-term leases with lifestyle retail concepts.
How Core Properties Can Help
Our team provides expert commercial real estate services across Downtown Dallas and the broader Dallas market:
Other Dallas Submarkets
Downtown Dallas Commercial Real Estate FAQ
Why is AT&T leaving Downtown Dallas?
AT&T is consolidating global HQ operations to a new $2.5B campus in Plano (Legacy Park area) to modernize facilities and integrate workforce. This represents a strategic shift, not a reflection on downtown fundamentals.
What happens to vacant AT&T office space?
Class A towers are being repositioned for multitenant office, conversion to residential/hotel, or selective demolition for mixed-use redevelopment. We work with landlords on repositioning strategies and tenant placement.
Is downtown Dallas still viable for office tenants?
Yes, for creative, nonprofit, tech, and professional services firms valuing urban walkability and lower rents ($18-28/SF vs. Uptown $50+/SF). DART connectivity and arts/cultural amenities appeal to talent-driven companies.
What is driving residential conversion in downtown?
Strong demand from young professionals, empty nesters, and remote workers seeking urban living, walkable neighborhoods, and proximity to arts/dining. Conversion rents achieve $1.50-2.20/SF/month, stabilizing investments.
When will downtown Dallas stabilize?
Stabilization occurs as AT&T departure (2028) is absorbed, Arts District activation continues, and Convention Center expansion drives hospitality growth (2029+). We expect inflection mid-2028 through 2029.
Let us discuss your Downtown Dallas real estate goals.
Whether you are a business seeking commercial space, a landlord optimizing your portfolio, or an investor exploring Downtown Dallas — our team is ready.