After two fed rate hikes in as many months, it’s worth checking in on capital markets in Texas. What was predicted to create both short- and long-term headwinds for investors doesn’t seem to be slowing down deals here.
“We’ve been able to help keep deals moving along with the rising construction costs and interest rates,” says Dustin Gabriel, vice president of origination of Petros PACE Finance, which is based in Dallas. “Our cost of capital is significantly less than alternatives and our rate is fixed for long term.”
That’s important as demand for investment in all property types grows.
“The four main Texas markets (Dallas – Fort Worth, Houston, Austin, and San Antonio) have been strong and vibrant, across all the main property types,” says Walter Bialas, senior insight analyst for research at Avison Young.
He explains that after an investment pause in 2020, commercial real estate roared back to life in 2021.
“To illustrate the volume of business, the number of 2021 sales for office, industrial, apartment, and hotel were almost 40 percent higher than in 2019, pre-pandemic,” Bialas points out. “This same momentum continues to influence 2022, with first quarter sales suggesting that it will be another record year at a pace fully 10 percent above the number of transactions in 2021.” Click to read more at www.rednews.com.