Fort Worth Office Market Shows Signs of Recovery in 2026

The Fort Worth office market is exhibiting renewed optimism as 2026 begins, according to Todd Burnette, executive managing director at JLL. He stated, “We are definitely coming out of the downturn in the office market,” highlighting a shift in sentiment compared to 2025. This positive outlook persists despite a recent report indicating that more office space was vacated than leased during the fourth quarter of 2025. Burnette noted that a range of factors, including COVID-19’s impact on office attendance, global conflicts, rising interest rates, and tariffs, had previously created economic uncertainty, causing many businesses to postpone decisions regarding their office needs.

Yet, Burnette believes that many of these challenges are largely behind the market now. “That seems behind us to a large extent,” he remarked, expressing confidence in the potential for growth in the coming year.

Downtown Fort Worth’s Resilience

The JLL report highlights the strength of Fort Worth’s downtown area, which has the second-lowest Class-B vacancy rate among central business districts in the United States. Burnette anticipates a resurgence of activity in Sundance Square, an area that has faced uncertainties in recent years. He cited a New Year’s Eve event that attracted approximately 100,000 attendees as evidence of downtown’s appeal.

“It shows how strong of a draw downtown Fort Worth is,” he noted. Bursting with development plans, the area is poised for further growth, particularly with upgrades to the convention center, the upcoming first building of Texas A&M, and potential expansion of the Omni Hotel.

Despite this positive momentum, Burnette pointed out a notable concern: a lack of available space for larger projects in the downtown area. “If we had a big project that wanted space downtown, we don’t really have it,” he explained, indicating that some projects may divert tenants away from the heart of the city.

Future Developments and Leasing Trends

Office leasing activity is expected to concentrate in Class A and trophy class properties, particularly in downtown, south Fort Worth, and the Westlake/Southlake submarkets. Upcoming trophy class developments include the Van Zandt project by Goldenrod Companies, which will offer 100,000 square feet of office space. Another significant undertaking is the first phase of the Westside Village project by Keystone Group and Larkspur Capital, which will feature approximately 880,000 square feet of office space.

Additionally, the Crescent Offices will introduce a second building, adding 171,500 square feet of office space, with JPMorgan Chase relocating many of its downtown operations there. The Office at Clearfork is set to provide 75,800 square feet, with Wells Fargo taking up two floors as part of its shift from downtown.

Looking ahead, Burnette estimates that the market could see 1.2 million square feet of trophy class space by 2035, a significant increase from nearly none a decade ago. “That flight-to-quality transition will continue to occur,” he remarked, emphasizing the ongoing shift towards higher-quality office spaces.

In a notable highlight for 2025, Lockheed Martin secured the largest office lease of the decade, renewing a 455,000-square-foot lease at 5555 N. Beach St. in the Fossil Creek Business Park. This lease will accommodate 1,800 employees engaged in supply chain and engineering functions.

Burnette’s optimism is further reinforced by rising rental rates, which have increased for Class A spaces to $31.45 per square foot by the end of 2025, up from $30.68 earlier in the year. “I think those rates are going to go up,” he asserted, underscoring the market’s strength.

As Fort Worth continues to adapt and grow, the outlook for its office market remains promising, reflecting a broader recovery as the city navigates the challenges and opportunities of the new year.