News in the Dallas commercial real estate market in the middle of 2014 is as sunny as the city skies. Investment is booming in all facets of commercial realty here, even in the somewhat surprising alternative properties market.
According to the Dallas Business Journal, investors are snapping up student housing properties and self-storage space as the city continues its growth. This, reports the Journal, is the next stage in a pattern of investment ‒‒ particularly from California firms ‒‒ looking for better yields and higher return on investment.
In office space, the Dallas Morning News and PriceWaterhouseCoopers reported recently that the city’s office market now has the “highest rent growth expectation in 16 years” and should continue expanding through 2017. The expectations are so high, the News reported, that some analysts see rents and asking prices for office space in Dallas to climb as much as 10 percent in the next year.
Commercial transactions in the city are roaring ahead as well. The most recent (July) acquisitions, as reported in the News, include news that Leadership Hotels has acquired land at the southeast corner of State Highway 121 and Spring Creek Parkway for a new Holiday Inn Express; Irving-based Realty Capital Management LLC has sold a 9,438-square-foot medical/residential building at 35 Veranda Lane; and the Victory Group has sold a 1.8-acre building site on the northwest corner of Legacy Drive and Warren Parkway in Frisco to Gingercrest Inc., which will develop the site for a RaceTrac gas station and convenience store.
And certainly the tallest commercial deal in the city recently is Peloton Commercial Real Estate taking over as property managers of the tallest office tower in town, the 72-story Bank of America Plaza on Main Street. According to the news, Chicago-based Metropolis Investment Holdings Inc. owns the 1.8 million-square-foot tower, and Peloton has already been handling leasing there. But the management contract is a major win and the deal puts operations in the hands of a Dallas-based firm.