Although the overall foreclosure rate for Dallas commercial real estate properties is at its highest level in a decade, and many more commercial properties are scheduled for foreclosure over the next few months, there is some reason for optimism.
The Dallas-Fort Worth office market sector has hopes for a rebound in rentals and new construction as the economic crisis begins to ebb, and In Town Homes, a Houston based builder, has broken ground on a site located in downtown Dallas’ Farmers Market district. Three-story town homes will occupy this site.
This same builder has purchased lots for further townhome construction in Oak Lawn. Additionally, Dallas Mavericks owner, Mark Cuban has confirmed a June 1st construction start on an $800 million dollar mixed-use development project to be located off Kiest Boulevard, in Oak Cliff.
Dallas Office Space
The Dallas office space picture at present is still unclear. Competition for tenants in a so-called “renters market” is fierce, with landlords often forced to make painful concessions.
Ownership changes as a result of foreclosures continue to cloud predictions as to when a true rebound will begin for Dallas office space. On the positive side, Dallas based Sunwest Real Estate Group has purchased two North Central Expressway office buildings, and other ownership changes may help to revitalize the office space sector.
Dallas Industrial and Warehouse Space
The Dallas industrial and warehouse picture seems a lot rosier at present then the Dallas office space scenario. For example, after a net leasing decline in 2009 of nearly two million square feet, 2010 has seen a rebound in rental and purchasing activity.