The State of the Dallas Commercial Real Estate Market – And where it’s Expected to go
By Grace on Sep 16, 2009 in Commercial Real Estate
Property sales in the Dallas-Fort Worth commercial arena are dismal, at best.
Sales of Dallas commercial real estate -which includes office buildings, shopping centers, apartment buildings and warehouses - saw an 80 percent decline in the second quarter of this year, compared to the same quarter last year.
Of all commercial real estate, sales volumes of office buildings were down by a whopping 99 percent from last year at this same time. Sales of retail properties came in at a close second, falling 80 percent from this time last year. Apartment building sales were down by about 15 percent.
In addition to poor sales volume numbers, the prices of commercial property in the Dallas-Fort Worth area fell sharply, as well. Office building prices, per square foot, fell by 34 percent since last year, while industrial properties fell about 42 percent.
Perhaps the only bright spot in the Dallas commercial real estate industry fiasco is the retail sector, which saw an impressive increase in sales of 55 percent from last year.
Where is the Commercial Real Estate Market Headed?
A new survey by LoopNet Inc. reveals that only about 10 percent of real estate experts expect the market will recover by the end of 2009, while more than 50 percent feel that is will take until the second half of 2010 to turn around.
In fact, most real estate experts also expect more declines throughout 2009, and expect values to continue to fall another 10 to 20 percent.
Investors purchasing commercial properties are therefore realizing the importance of long-term gain. If the industry bottoms out this year, then purchasing now may be a smart investment decision, provided you hang on to the property until the market rebounds.
Most investors consider apartment buildings to be the smartest investment decision around.
