Dallas-Fort Worth land sales slowed in the second quarter as the coronavirus pandemic hit. Sensing weakness in the market, some investors are circling, looking for opportunities, but there may not be enough blood in the water yet to send buyers on a distressed land feeding frenzy.
“We haven’t received any information of a fire sale from sellers,” Younger Partners’ Michael Ytem said. “What we are finding is at the advent of this situation, you had some … buyers thinking they could probably corner sellers into renegotiating deals and dropping prices.”
Distressed asset buyers are chomping at the bit to find overleveraged property owners who need to quickly sell their land at a discount.
“I’ve had groups call me who are basically sharks,” Transwestern Managing Director of Retail and Urban Land Services Steve Williamson said. “They are looking for blood in the water, and they are saying, ‘If you come across any really good deals where there is pressure on the landowner, let us know, because we will come in and pay cash.’”
But DFW land assets remain relatively solid for now.
Kerri Panchuck, Bisnow Dallas-Ft. Worth
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Energy Giant Seeks to Rezone About 35 Acres for Commercial Use
Energy giant Exxon Mobil Corp., which reported its first earnings loss last week in three decades, is considering selling off some of its surplus real estate in the Dallas area.
The surplus land includes noncontiguous land parcels that surround Exxon Mobil’s existing corporate campus in Irving, Texas, with lots east and west of Las Colinas Boulevard near Colwell Boulevard, and a lot west of Love Drive.
The company requested a zoning change from the city of Irving for some of the land from zoned for single-family housing to be zoned for a business district, which would allow for commercial development.
In all, the five undeveloped land parcels Exxon Mobil might sell total about 100 acres, said Sarah Nordin, a spokeswoman for Exxon Mobil, in an email sent to CoStar News.
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As we approach the end of April 2020, I don’t think anyone would have suspected that in just 45 short days, we would erase the majority of the strides that we had made as an economy over the past ten years.
Over the past 45 days, we’ve watched the stock market fall significantly, multiple rounds of government stimulus be approved and distributed, unemployment skyrocket, face masks become a permanent part of our everyday attire, and oil fall to a negative number for the first time in history—all the while, Americans have sheltered-in-place with minimal interaction with society.
By Blake Kendrick, Published in Commercial Real Estate
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A discussion on what is happening in the commercial real estate world.
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Whether a metro area’s industrial sector survives this downturn without significant asset disruption depends entirely on where a region’s industrial buildings are located and whether the community is already e-commerce focused, a new study from CoStar Group says.
That’s why Dallas-Fort Worth is better positioned to survive an industrial downturn than cities like energy-dependent Houston and auto manufacturing-focused Detroit, CoStar Portfolio Strategy Senior Consultant Juan Arias said.
DFW’s industrial sector has the right product mix to weather the storm, having built larger industrial assets that cater to e-commerce distribution. Many of DFW’s recent builds cater to the e-commerce delivery sector by offering cross-docks and facilities with higher clear heights, Arias said.
“Metros like Dallas have been able to build plenty of those types of industrial buildings in this cycle and have attracted a lot of demand from those e-commerce players in this cycle so far,” Arias said.
In addition to a strong supply of new buildings, metros like DFW, Atlanta and Chicago have strong third-party logistics hubs, which CoStar expects will help them survive a downturn without too much disruption.
By Kerri Panchuck, Bisnow Dallas-Fort Worth
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