Dallas commercial players expect successful 2014

The Dallas commercial market is expected to perform especially well in 2014.

Many commercial real estate companies around the country are optimistic about their markets' performance in the new year, and that is no different for Dallas-Fort Worth. In fact, the metropolitan area's commercial market has been performing at its highest point in nearly two decades, the Dallas Morning News reported.

"We've never been as positive about a year as we are about 2014," said Denton Walker, senior managing director of commercial real estate management company Trammell Crow, to the newspaper. "We think 2014 will be a breakout year for us in retail, office and industrial real estate."

Vacancies in office, industrial and retail buildings have dipped to levels not seen since well before the recession, and investors have demonstrated their confidence in the market by pouring in billions in 2013. Experts expect that to continue – and maybe even increase – in 2014.

Southern optimism
One such optimist is Andrew Segal, CEO of Houston-based Boxer Property, whose company purchased 14 buildings in Dallas-Fort Worth in 2013. The company owns nearly 6 million square feet of office space in the region, and Segal hopes that number will only increase in the new year, so long as the inventory can keep up.

"I think the market is amazing," he told the Morning News. "I hope to make many more acquisitions in D-FW in 2014 if the deals persist. It's getting harder all over the metroplex."

A December report from CBRE Group revealed that experts have a right to be optimistic, as Dallas-Fort Worth had the strongest annual job growth out of the country's largest metro areas, which means vacancies continue to shrink. The huge demand is leading to more office construction, and many projects that are in the works are already released, according to Sara Rutledge, director of research and analysis for CBRE.

Industrial isn't to be ignored, either, as there is much demand from third-party logistic and ecommerce companies, the CBRE Group report revealed.

"Industrial demand has been outpacing supply throughout Dallas/Fort Worth as we progress in the current real estate cycle. Given the muted amount of new speculative development, vacancy is unprecedentedly low and should continue to drive up lease rates," said Steve Berger, first vice president at CBRE. "GDP growth has also benefited the industrial environment, growing at a healthy rate in the mid to upper 3 percent range throughout the year and at a pace twice as fast as the nation."

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