D-FW named nation's hottest real estate market for third straight year. Here's why
Big projects. A strong office market. Data centers. D-FW is the nation's top real estate market to watch.
By Nick Wooten,Staff WriterOct 27, 2026
The D-FW real estate market is the hottest in the nation, according to an annual report. The report cited Dallas’ strong office, industrial and data center sectors as primary reasons for its ranking
It’s a three-peat. Dallas-Fort Worth is once again expected to be the nation’s hottest real estate market for investment and development.
D-FW led the field in a scorecard of metro areas that property executives expect to prosper in 2027. It’s the third straight year that North Texas has topped the PricewaterhouseCoopers and Urban Land Institute “Emerging Trends in Real Estate” report.
IN THE KNOW Real estate market rankings
The top 10 markets to watch, according to the annual “Emerging Trends in Real Estate” report.
1. Dallas-Fort Worth
2. Nashville
3. Miami
4. Raleigh/Durham
5. San Francisco
6. Houston
7. Manhattan
8. Jersey City
9. Tampa/St.Petersburg
10. Charlotte
Researchers interviewed more than 500 people and received survey responses from more than 1,000 people representing a wide range of industry experts — including investors, developers, lenders, brokers, advisers and consultants across the U.S. and Canada. D-FW is the top real estate market to watch.
D-FW secured the top spot for overall real estate prospects, including total investment and development. North Texas fell to second behind Houston in homebuilding prospects. The report cited Dallas’ strong office, industrial and data center sectors as primary reasons for its ranking. The report also pointed to “mega-projects,” such as new major hubs from Goldman Sachs and Morgan Stanley as well as the Texas Stock Exchange’s launch of trading, as big wins for the region.
The report estimates that Dallas will produce nearly $39.7 billion in real estate investment sales. That would be the region’s third-best year and up 23.2% from 2025.
“It’s no shock that ‘Bigger in Dallas’ remains the top market to watch,” the report reads. “These are operating centers, not satellite offices, and they bring high-wage jobs that require premium space and amenities.”
D-FW’s office sector continues to lead the nation as Class A asking rents sit nearly 25% above pre-pandemic levels while top-tier rents are 30% higher. Net absorption, a metric that tracks the amount of office space newly occupied minus space vacated, has been positive for seven straight quarters, totaling 3.8 million square feet. Class A vacancy remains high at 24.8%, but space began to fill sooner and faster than the rest of the nation after the COVID-19 pandemic.
Office construction remains limited, but the pipeline has grown each quarter since third quarter of 2025.
The region’s industrial market has seen supply increase, with 30.6 million square feet under construction. Markets south of Dallas have no available industrial spaces larger than 500,000 square feet for the first time in at least a decade, according to the report. Cushman & Wakefield’s 2026 Global Data Center Market also ranked Dallas as the world’s top primary data center market for the first time.
Other major projects cited in the report include the mixed-use arena districts planned by the Dallas Mavericksat the former Valley View mall site and the Dallas Stars’ $3 billion arena district at the former Willow Bend mall in Plano.
North Texas has ranked in the top 10 for nearly a decade. D-FW also took the top spot in 2019.
“To be named the top market to watch for the third consecutive year reflects the dynamic nature of the DFW region, and our continued ability to attract diversified investment that spurs growth,” Tamela Thornton, executive director of ULI Dallas-Fort Worth, said in a statement.
Dallas Morning News
