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The Dallas economy remains strong, but office vacancy rates are high. In the third quarter, the DFW office market saw a 25.6% increase in vacancy, reaching its highest level since the real estate recession of the late 1980s.

According to a recent Avison Young survey for Q3, DFW’s economy continues to thrive due to its low cost of business and economic diversity with a pro-business attitude. While there has been an increase in office jobs over the past year, there has also been record-high levels of available office space and sublet space as more companies adopt remote hybrid work models.

Despite positive leasing activity so far this year, it was not enough to offset the rise in available office space,” noted Avison Young analyst Walter Bialas.

However,trophy assets were an exception as they outperformed market averages with positive absorption for the year.

This article originally appeared on Connect CRE.