Dallas commercial real estate shining bright

There has been heavy traffic for Dallas office space.

Caddo Holdings, an investment group with property in the Dallas area, recently cashed in thanks to an emerging trend in the North Texas commercial real estate scene: foreign buyers.

According to Dallas News, Caddo sold a property it bought in 2011 – its Uptown office Crosstex Energy building - to a Mexican investor who has made recent purchases in North Texas.

"We renewed the lease with Crosstex and added value to the building," Dustin Schilling of Caddo's told the Dallas News. "The timing was right to pass the property along to someone else who wants to enjoy the income."

Gary Carr, CBRE vice chairman of investment properties, told Dallas News that investors from around the world are looking to land property in North Texas.

"The migration of capital from the coastal markets with confidence to Texas is growing," Carr said. "Everyone is aware of the environment we have here. It's certainly being driven to a large extent by the strong fundamentals in this marketplace and the office leasing velocity."

Financial experts predict smooth sailing for property owners looking to get rid of commercial buildings, with office space being particularly in demand.

"There is such demand for Dallas' office product right now, and if you are an owner, you can sell into this and look pretty good," Jack Crews, a managing director with Jones Lang LaSalle, told Dallas News. "You have a lot of people that will pay what it takes to buy into this market."

The Dallas Business Journal reported that as lease rates and occupancy rates continue to improve, Dallas real estate professionals are growing optimistic about the future of the commercial landscape. The region owns one of the fastest-growing commercial sectors in the nation, according to the Business Journal.

Cashing in on the market
Champion Partners is one such group that is selling property, having taking on a few risky investments after the bubble burst. Champion is selling its Tower 2600 in Richardson, Texas. The property, which sits near the North Central Expressway, was empty when Champion purchased it in 2011.

"We took the building from vacant to 97 percent leased," Jeff Swope, founder of Champion, told Dallas News. "We are recycling capital with our equity partner on the project, Long Wharf Capital Partners. "We did consider holding on to this one longer because of the good tenants, and it's an irreplaceable asset at our basis, but recycling the capital into other opportunities won out."

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