Author: Sarah

Financial Pain on the Way? Trepp Survey Suggests it’s True

Posted on by Sarah

Is more pain coming for commercial real estate companies? A new survey suggests that an uncertain economy will bring plenty of it before 2022 ends.

That doesn’t mean, though, that commercial real estate professionals don’t have hope that this pain will be relatively short-lived.

According to a new survey from Trepp, commercial real estate professionals are concerned about rising interest rates and inflation, and expect that both will hurt their businesses before 2022 ends. But they also think that commercial real estate will escape the worst effects of these economic headwinds.

That’s according to the Trepp 2022 CRE Sentiment Survey. From July 13 through Aug. 1, Trepp polled its more than 20,000 clients, blog readers and listeners for their opinions on the near-term future of the commercial real estate and commercial mortgage-backed securities markets.

And what did respondents say? In little surprise, 70% of them said that they expect the office sector to suffer the most from economic challenges throughout the remainder of 2022. This sector, of course, has been hit hard throughout the COVID-19 pandemic, with many employees still working from home. Respondens said that they expect the next several months to remain challenging for this sector.

A total of 83% of survey respondents predicted that during the next six months that delinquencies will increase in both the commercial real estate and commercial mortgage-backed securities industries.

And more than half of respondents said that economic conditions and higher interest rates would impact their businesses negatively.

There was some hope, too, from the survey. For U.S. equities, almost two-thirds of respondents predicted that the S&P 500 would not fall below 3200. Only 27% believed oil would top $150 a barrel. And the results were evenly divided between those who felt that the 10-year Treasury would rise above 4.5%.

A total of 58% of respondents predicted that the multifamily sector will see the highest transaction volume during the next six months. And in a glimmer of hope for the office sector, 70% of participants reported that they are working in the office at least three days a week.

Just under three-quarters of respondents said that their firms were either unchanged or growing when compared to 2021. A total of 88% of participants said that they are either keeping their companies’ current headcount or hiring new employees as needed. Despite this, more than half of respondents said that economic conditions will have a negative impact on their businesses by the end of 2022.

Fort Worth Retail and Office Village Sells

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JLL Capital Markets has closed the sale of Crockett Row at West 7th, a five-block, pedestrian-friendly, mixed-use, urban village, totaling 282,334 square feet of Class-A retail and office space in Fort Worth.

JLL represented the seller, The Carlyle Group, and procured the buyer, Younger Partners Investments.

Developed in 2009, Crockett Row at West 7th features a dynamic food, fun and fitness tenant roster, including Movie Tavern, LA Fitness, Common Desk, Mash’d, Social House and Concrete Cowboy, as well as new tenants, such as One Medical and Sandbox VR. Over the past few years, Crockett Row has evolved into the casual, regional service and entertainment center of Fort Worth, serving the immediate consumers within 1.5 miles of the West 7th entertainment district, the greater Downtown Fort Worth District and students at Texas Christian University.

Located at 816 Foch St., Crockett Row is situated at the southeast corner of University Drive and West 7th Street, adjacent to Fort Worth’s Cultural District and just west of Downtown. The property is part of the larger West 7th development, which embodies the live-work-play lifestyle with a total of 2,700 multi-housing units, 1.2 million square feet of office and 1.1 million square feet of food and entertainment-rich retail within walking distance of the space. The center is proximate to the affluent Westover Hills and Rivercrest neighborhoods and is surrounded by iconic destinations, such as Sundance Square and Museum Mall. Additionally, the village is ideally situated just two miles from one of the most heavily trafficked intersections in Texas, the junction of Interstate 30 and Interstate 35W, which receives a traffic count of over 348,000 vehicles per day.

The JLL Retail Capital Markets Investment Sales and Advisory team that represented the seller was led by Senior Managing Directors Chris Gerard and Ryan Shore and Analysts Greyson Fewin and Pauli Kerr.

How to Keep Dallas-Fort Worth at the Top

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You’re sitting in your office having a cup of coffee and reading the newspaper. Great news all around. Your city is a top-five metropolitan area in the country and growing. Job growth is phenomenal. Shiny new buildings everywhere.

North Texas 2022? Perhaps, but also Detroit 1950.

Living in North Texas today, it’s easy to take for granted that we lead the nation in job growth and in-migration. Since 2010, the U.S. Census Bureau estimates the population of the Dallas-Fort Worth metro area has grown by 23.1%—the most of any metropolitan area in the country for the same period.

It’s expected that DFW will overtake Chicago as the nation’s third-largest metro area by the 2030s.

Much of this growth is attributed to the uptick of companies and workers relocating from other states. Our region has a lot of positive benefits that attract businesses and people – we have all heard them many times: low regulatory climate, no state income taxes, affordable housing, and a diverse economy. Click to read more at www.dmagazine.com.

Edge Realty Partners Secures Leasing Assignments for Over One Million Square Feet in North Texas

Posted on by Sarah

Edge Realty Partners, a leading commercial real estate firm providing national brokerage, development, and investment sales services, announced an agreement with DLC Management Corp. to lease more than one million square feet in two premier power centers in North Texas – The Village at Allen and White Rock Marketplace.

The Village at Allen
Built in 2009 and totaling more than 836,000 square feet, the Village at Allen has become an important commercial hub in the Allen market. The center’s tenants range from well-known shopping destinations to entertainment, dining, and fitness, in addition to being home of the fan-favorite hockey team, the Allen Americans. Retailers include Target, Dick’s Sporting Goods, Five Below, Burlington, T.J.Maxx, and Best Buy. The Village at Allen is also home to a variety of restaurants including Kelley’s at the Village, Uncle Julio’s, and BJ’s Restaurant & Brewhouse.

White Rock Marketplace
Also managed by DLC Management Corp. and owned by an affiliate, White Rock Marketplace is located at the northwest quadrant of Garland and Jupiter Roads in Dallas. The shopping center totals 274,822 square feet, and is anchored by Home Depot, and complemented by additional shopping, fast-food favorites, and fitness centers. Retailers include Planet Fitness, Shoe Carnival, Marshalls, and Burlington.