North Texas was at the top of the shopping list for commercial property buyers in 2019.
With days left before the end of the year, investors are scrambling to get deals closed and figure out where the Dallas-Fort Worth real estate market is headed in 2020. So far this year, the D-FW area has seen close to $20 billion in commercial property sales, and more transactions are set to finish in the final weeks of 2019. “If you look at the top sales year-to-date in major markets, Manhattan is number one total commercial real estate sales, Los Angeles is number two, San Francisco is number three and Dallas is number four,” said Ted Jones, chief economist with Stewart Title. “Dallas is a phenomenal market.” The biggest North Texas commercial property buy so far in 2019 was the $584 million sale of energy firm Pioneer Natural Resources’ new headquarters in Irving. The office campus was acquired by a partnership of domestic and international investors. And with a sales price of about $700 per square foot, downtown Dallas’ new 1900 Pearl office tower set a new office price record for D-FW. The Arts District high-rise was bought by the State Teachers Retirement System of Ohio for $180 million. Click to read more at www.dallasnews.com.
The National Association of Realtors listed Dallas-Fort Worth as one of the nation’s top real estate market expected to outperform in the next three to five years. In a newly released report, the trade association identified the top ten metro areas showing signs of continued strong growth. DFW distinguishes itself as the only Texas market on the list. “Some markets are clearly positioned for exceptional longer-term performance due to their relative housing affordability combined with solid local economic expansion,” said NAR’s chief economist Lawrence Yun. “Drawing new residents from other states will also further stimulate housing demand in these markets, but this will create upward price pressures as well, especially if demand is not met by increasing supply.”In the last few years, DFW welcomed more than 1.09 million people, included in the total population of more than 7.5 million. The highest number – 15,332 – of recent movers came from the Houston metro area, according to the report. DFW had the highest concentration of in-migration compared to the other nine metros in the report. NAR crunched figures from the Bureau of Employment Statistics and American Community Survey of the 100 largest U.S. metro areas, and compared it housing factors such as affordability, job growth, population age structure, home price appreciation, among other variables to formulate the report. Click to read more at www.fortworthbusiness.com.
One of Dallas’ first Opportunity Zone developments will be a new self-storage center west of downtown Dallas. Central Southwest Texas Development LLC is building the project on Lone Star Drive near Interstate 30 in West Dallas. The 141,950-square-foot self-storage center will be on a 2.4-acre site that is in one of the more than a dozen federally designated Dallas Opportunity Zones that qualify for special tax breaks. New businesses and investments in the targeted census tracts get deferred capital gains and other beneficial tax treatment. Click to read more at www.dallasnews.com.
DALLAS – Texas employment will grow 2.1 percent this year, according to the Texas Employment Forecast by the Federal Reserve Bank of Dallas. Based on the forecast, the state will add 263,700 jobs this year. Employment in December 2019 will reach 12.9 million. This prediction comes after incorporating September 2019’s annualized employment growth of 0.7 percent and a decrease in the leading index. “After strong growth in June and July, Texas jobs decelerated in August and September,” said Keith R. Phillips, Dallas Fed assistant vice president, and senior economist. “The weakness in oil and gas extraction is spilling over to other sectors such as transportation and warehousing, which experienced job losses in both August and September. “Manufacturing employment continues to grow at a good pace, however, in part driven by continued strength in petrochemical and refining activity. Construction activity also remains robust.” Click to read more at www.recenter.tamu.edu.
Two big North Texas real estate players are joining forces. Dallas-based property firm Peloton Commercial Real Estate is being acquired by JLL, the Chicago-based international real estate services firm. More than 130 professionals in Peloton’s Dallas and Houston offices will join JLL, which already has a huge presence in the area. It’s JLL’s second recent major acquisition. It just completed a purchase of Holliday Fenoglio Fowler LP, the Dallas-based investment sales and finance firm. JLL said its purchase of Peloton will accelerate the growth of the company’s leasing and property management businesses. “This is a momentous step in our journey to become a market-leading player in Texas,” JLL’s regional director David Carroll said in a statement. “With the exceptional growth we have seen in those markets, Peloton’s position as a leading provider of leasing and property management services will greatly enhance our business capabilities and breadth of services. Click to read more at www.dallasnews.com.
DALLAS-FORT WORTH – Office developers remain active as corporations continue to capitalize on North Texas, according to a Marcus & Millichap report. An estimated 8.1 million SF of space is expected to come online in 2019, up more than 25 percent over the year. This total is still 2.3 million SF below the cyclical high posted in 2017. Office vacancy is predicted to remain steady at 18.9 percent this year. The rate inched up 20 and 70 basis points in the previous two years. The average asking rent will remain relatively affordable compared with the nation’s other major metros. The figure will rise 2.2 percent to $25.89 per SF.