Analysts Weigh In On What CRE Can Expect For Each Asset Class In Q4

Most years, we are not ready to say goodbye to summer, but this year things are different. There is the economy, there is the election, there are kids and other loved ones at home, there are restrictions on what we can and cannot do, there is Zoom and there is a global pandemic.

And save one or two silver linings, none of it has been too kind to commercial real estate. No one knows when it will all end or get back to normal, but one thing that is normal is today — the day most of the business world says goodbye to summer and begins the mad dash to the end of the year.

You would never know it, but much has happened in 2020. If you’re suffering from pandemic haze and have lost track of where things stand in the industry, or even what day it is, Bisnow has you covered: We broke down all of the major commercial property asset classes to help you get up to speed — where the sectors have been since the beginning of the year, where they are now and what expert analysts think will happen as we march toward 2021.

Bisnow | Christie Moffat, Tim Carroll, Jon Banister, Dean Boerner, Kerri Panchuk, Jarred Schenke, Matthew Rothstein, Dees Stribling and Kelsey Neubauer.

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Dallas-Fort Worth’s Multifamily Market Is Weathering Economic Downturn

The Dallas-Fort Worth multifamily market posted respectable levels of demand through the second quarter even while the coronavirus pandemic and subsequent recession was taken hold.

The market reported absorption, the difference between move-ins and move-outs, of about 5,200 apartment units in second quarter. That level is on par with other second quarter levels in 2015-2017, when deliveries began to ramp up. But it is well-below levels in 2018 and 2019. Despite lower levels, Dallas-Fort Worth led the country in absorption through second quarter 2020

By Bill Kitchens
CoStar Analytics

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Office Sales Volume Remains Stable in Dallas-Fort Worth

While COVID-19 spreads across the Dallas-Fort Worth metroplex, and with many office employees continuing to work from home, the office market is evolving in its search for solid footing.

Following the initial outbreak of the pandemic, leasing volume plummeted in the second quarter, down 37% from the first quarter of 2020 and falling to the second-lowest level since 1995, as far back as CoStar’s historical data goes. The market recorded its first two consecutive quarters of negative net absorption, meaning more tenants moved out than in, and this trend is projected to continue into the third quarter

By Paul Hendershot
CoStar Analytics

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Land Deal Secures Financing to Start $100 Million Mixed-Use Project in Dallas Area

A developer has closed on a land tract in Dallas-Fort Worth after securing financing to build a $100 million mixed-use development.

The project, called Watson Branch, is planned for the 77-acre development site near Farm to Market Road 157 and Mouser Way, which is roughly 22 miles from downtown Fort Worth in Mansfield. Plans for Watson Branch include apartments, an active-adult property targeting residents 55 years and older, retail and restaurant space, a 10-acre park and single-family homes.

The master developer Realty Capital Management, based in Irving, Texas, is teaming up with Greystar Development to build a 190-unit active-adult property and Dallas-based Trinsic Residential for a 350-unit apartment complex. The 250 single-family homes are planned to feature lot sizes ranging from 50 feet down to 22 feet for townhomes.

The long-awaited land deal comes a year after Realty Capital Management successfully rezoned the tract for the mixed-use development after a series of city council meetings. Terms of the land deal were undisclosed.

“The planning of this development has been no small task,” said Tim Coltart, managing director of Realty Capital Management, in a statement. “This development represents years of hard work and coordination.”Coltart said the goal is to bring a mix of housing options with some new retail to the core of Mansfield, a suburban North Texas city with more than 75,000 residents. Recently, a Mansfield company bought Pier 1 Imports’ last remaining real estate holding, a distribution hub with plans to market the space for lease, in a move betting on the future growth of the city.

By Candace Carlisle

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New Lewisville mixed-use project opens its first phase

Plans for the Crown Centre at Castle Hills on S.H. 121 call for 30 buildings with offices, apartments, retail, hotels and restaurants

The first building in a new Lewisville mixed-use project has opened its doors.

Bright Realty completed construction of the first phase of its 140-acre Crown Centre at Castle Hills project on State Highway 121.

The four-story, 109,000-square-foot office project is the first of 30 buildings planned in the development.

Almost 3 million square feet of offices, 2,000 apartments, 140,000 square feet of retail and restaurants plus hotels are planned in the Crown Centre development at State Highway 121 and Parker Road.

“Our vision for a pedestrian-friendly destination includes office interspersed with multifamily and retail linked by a system of trails, green space and water features,” Bright Realty CEO Chris Bright said in a statement. “Crown Centre is a great location for employers looking for a respite and potentially a major corporate campus.”

The Crown Centre building is one of two new office buildings in the huge Castle Hills development. The first high-rise office building at the Realm at Castle Hills opened last year.

The site for Crown Centre is some of the last remaining undeveloped land in the 5,000-acre Castle Hills community.

Castle Hills has been under construction for more than two decades and has over 4,000 homes plus apartments and commercial space.

By: Steve Brown, Dallas News

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