Leasing office space in Preston Center costs more than almost anywhere else in Dallas-Fort Worth. Kidder Mathews reported an average asking rent of $62.11 per square foot per year in Q2 2026, the highest of any DFW submarket, with direct vacancy of just 5.3 percent. New trophy space is pricing higher still, while older buildings lease for less. The Agency Dallas, based on Preston Road, represents tenants and landlords leasing office space in Preston Center.
What is the average office rent in Preston Center?
Different research firms measure the submarket differently, so the averages vary by source and by which buildings they include:
- Kidder Mathews, Q2 2026: $62.11 per square foot per year average asking rent and 5.3 percent direct vacancy, the highest rent and lowest vacancy in the market, using CoStar data.
- Bradford Commercial, Q4 2025: about 6.0 million square feet of office across 56 buildings, 6.2 percent vacancy and a $42.54 average rate across all classes.
- Savills, first half of 2026: availability of 6.8 percent, reported by D CEO in July 2026, with owners of the newest space reportedly not doing deals below $90 per square foot.
For comparison, CBRE put the Dallas-Fort Worth average office asking rent at $35.09 per square foot in Q3 2026. Preston Center sits well above the metro average because supply is limited and demand from wealth managers, family offices and professional firms is steady.
Why is Preston Center office space so expensive?
- Location. It sits between Highland Park, University Park and Preston Hollow, close to where many business owners and their clients live.
- Little new supply. Smaller lots and an established street grid limit new towers. The Knox, about 206,000 square feet, was listed as under construction for a fourth-quarter 2026 delivery in the Q2 2026 Kidder Mathews report.
- Large recent leases. Welltower signed more than 140,000 square feet in Preston Center in 2026, and the submarket accounted for one-fifth of the 20 largest office leases in North Texas in the first half of the year, per Savills data reported by D CEO.
- New headquarters. Fifth Third plans its Texas regional headquarters at 8300 Douglas. Our post on what 8300 Douglas changes for Preston Hollow covers the project.
What does the total cost of a Preston Center lease include?
The asking rent is only one part of what a tenant pays. A full lease model looks at:
- Base rent per square foot per year, quoted on rentable square feet, which includes a share of common areas.
- Lease structure. Most Dallas office is quoted full service, meaning operating costs are included up to a base year. Some space is quoted on a net basis, with taxes, insurance and operating costs added.
- Annual escalations written into the lease.
- Operating expense pass-throughs above the base year.
- Parking. Reserved and garage spaces may carry a monthly charge, and parking is tight in the area.
- Build-out. The tenant improvement allowance the landlord provides versus what the space needs.
- Free rent at the start of the term, if any.
Two leases with the same quoted rent can differ widely once these are added up. Our guide to what a tenant should negotiate in a commercial lease besides the rent walks through each one.
How do Preston Center office options differ by building type?
- New trophy and Class A space. The highest rents, the best amenities, and the least room to negotiate.
- Established Class A and B buildings. Lower rents and more flexible terms, often with smaller floor plates that suit firms of 5 to 50 people.
- Medical and professional office. Specialized build-outs that can be costly to replicate, which makes renewals valuable.
- Executive suites and coworking. Short terms and furnished space for small teams, priced per office rather than per square foot.
How can a tenant get a better deal in a tight submarket?
With vacancy near 5 percent, tenants have less leverage than elsewhere in Dallas. What still helps:
- Start early. Begin 12 to 18 months before your lease expires so you are not negotiating against your own deadline.
- Tour nearby submarkets too. Comparing Preston Center with nearby options gives you real alternatives. Our guide to finding office space for your business in Dallas-Fort Worth covers the search.
- Trade term for concessions. A longer term can bring more build-out money or free rent.
- Consider subleases. Sublease space can come furnished and below direct rents.
- Use tenant representation. In most Dallas office leases, the landlord pays the tenant's broker, so representation usually adds no direct cost to the tenant.
Should you lease or buy office space in Preston Center?
Buying is uncommon because so little office space trades, but small owner-user buildings come up. Owning makes sense for firms with a long horizon that want control of their space and an asset of their own. Valuing a building in a non-disclosure state takes local data. See what a commercial broker opinion of value should include in Texas. Investors selling elsewhere to buy here should also read what happens if you miss the 180-day deadline in a 1031 exchange, and those weighing suburban growth markets can compare the path of growth for commercial land in Collin County.
For the broader market picture, read how the Dallas-Fort Worth commercial real estate market is doing in fall 2026.
Frequently asked questions
How much does office space cost in Preston Center, Dallas?
Kidder Mathews reported an average asking rent of $62.11 per square foot per year in Q2 2026, the highest of any Dallas-Fort Worth submarket. Averages vary by source and building class, and new trophy space has been quoted well above that. Older Class B buildings lease for less. The total cost also depends on parking, escalations and build-out.
What is the office vacancy rate in Preston Center?
Preston Center has the tightest office market in Dallas-Fort Worth. Kidder Mathews reported 5.3 percent direct vacancy in Q2 2026, and Savills reported 6.8 percent availability for the first half of 2026. The metro-wide office vacancy rate was 24.6 percent in Q3 2026, according to CBRE, so space in Preston Center is far scarcer.
Who pays the broker when a business leases office space in Dallas?
In most Dallas office leases, the landlord pays both the listing broker and the tenant's broker from the lease commission. That means a tenant can usually hire its own representation without a direct fee. Confirm the arrangement in writing before touring, since terms vary by building and transaction.
How early should I start looking for office space in Preston Center?
Start 12 to 18 months before your current lease ends, and earlier if you need more than a few thousand square feet or a custom build-out. With vacancy near 5 percent, good suites lease quickly and construction schedules add time. Starting early also gives you time to negotiate a renewal with your current landlord as a fallback.
Sources: Kidder Mathews, Dallas/Fort Worth Office Market Report Q2 2026; Bradford Commercial, Market Insights Dallas/Fort Worth Office 4Q 2025; D CEO, "Progress Report: The State of DFW's Office Market Halfway Through 2026," July 2026, citing Savills; CBRE, Dallas/Fort Worth Office Figures Q3 2026.
For office leasing help in Preston Center and across North Texas, visit the Commercial Division of The Agency Dallas.
