Shrinking vacancy rates, a rebounding economy, explosive population growth, available land, and the most talented development community in the nation. It’s all combining to create another North Texas building boom. This time, though, disciplined capital markets are reining in unbridled optimism, staving off an oversupply.
In the debut issue of the remastered Dallas-Fort Worth Real Estate Review, quarterly publications produced by D Custom for the Dallas Regional Chamber and The Real Estate Council, we combined data from D Real Estate Daily and Xceligent to create an interactive map that lays out office and industrial projects that are underway or planned in North Texas. You can click on the project “dots” to get more details on each new property.
Here are some on-the-ground perspectives from brokers on what’s driving development trends:
• Greg Biggs, Managing Director, JLL: “Office market demand and absorption has increased dramatically and, as a result, we’re seeing some of the highest development totals that we’ve seen in years. This momentum has driven rents higher.”
• Thom Ridnour, Senior Vice President, Parmenter Realty Partners: “DFW is prospering due to the oil and gas industry, general business expansion, and the low cost of funds combined with rising corporate profits. Due to demand, new construction likely will continue at its current pace.”
• Allen Gump, Executive Vice President, Colliers International: “Lease terms are going longer, and concessions aren’t what they used to be, as there’s less available space. It’s not necessarily a landlord’s market, it’s just a more balanced market.”
• Steve Trese, First Vice President, CBRE: “With every cycle we experience waves in deal activity. Last year the big mega-deal dominated; so far this year we’ve seen strong deal volume in the smaller tenant base, which is also indicative of strong conditions.”