Posts Tagged ‘Commercial Real Estate’

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Dallas Commercial Real Estate Market 2011: A Look Back

Monday, November 21st, 2011

The commercial real estate market in Dallas in 2011 was encouraging. The market saw a positive leasing demand and a decrease in overall vacancies during the third quarter, leading many analysts to believe that the worst is behind us.

The Dallas commercial real estate market 2011 saw an upswing due to the employment generated in the Dallas-Fort Worth metropolitan area. In fact, employment was up during the 12-month period ending in August, as more than 50,000 jobs were added to the region during this time.

Most analysts expect vacancy rates for the Dallas commercial real estate market 2011 to continue to decrease, with rental rates expected to gain momentum. In addition, many capital markets have seen lending activities increase and investment sales are also expected to increase in the near future.

Real Estate Owned Properties

During the first half of 2011 almost a half-billion dollars in commercial properties were sold by lenders. Although these numbers may suggest an increase in real estate owned properties, the statistics actually show that the number of commercial property foreclosures in Dallas is actually down from the same time a year prior.

Although there were plenty of analysts who predicted a glut of commercial foreclosures, this prediction simply didn’t materialize. During the first six months, 300 commercial properties were sold at auction by lenders, which is a 7 percent decline from a year prior. In addition, the dollar volume for foreclosures in the Dallas real estate market has also dropped an impressive 30 percent from 2010. In other words, compared to the market crash in the early part of the 1990s, things are looking really good.

Commercial Foreclosures

Although the Dallas commercial real estate market appears to be moving forward with swift momentum, this area has still seen its share of foreclosures this year, including the Fenton Center in Farmers Branch, the Crowne Plaza hotel in Addison, sections of the Lewisville Town Crossing and a number of development sites in both Irving and Frisco. Land that is not yet developed has accounted for the largest share of commercial foreclosures in the Dallas-Fort Worth metropolitan area this past year.

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Uptown Dallas Commercial Real Estate Update

Wednesday, June 29th, 2011

You may not have seen much action taking place in Dallas

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What you Should Know about Commercial Leasing

Tuesday, April 12th, 2011

Dallas commercial real estate trends are showing signs of growth, which is a welcomed sight after a rough couple of years. The positive Dallas commercial real estate trends show that commercial leasing is once again active.

If you are enthusiastic about the recent uptick in Dallas commercial real estate trends, you may be thinking it is time to look for new commercial space for your business. If you haven

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Dallas Real Estate Council Key to Dallas

Wednesday, December 29th, 2010

If you want a realistic and accurate Dallas commercial office space update then you need not look any further than Dallas

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Hotel Foreclosure Filings Continue in Dallas-Fort Worth

Wednesday, September 29th, 2010

The Dallas commercial office space market, as well as its commercial hotel market, has been particularly hard by the national economic downtown and real estate slump.

Although both business and pleasure travel have picked up in the Dallas-Fort Worth area, there are still many hotels and office buildings in the area going through foreclosure.

Hotels in Deep and Foreclosures Loom

In fact, the latest statistics show that the number of hotels in the area facing foreclosure has more than tripled in 2010. To date, 94 North Texas hotels have gone into foreclosure; there were just 30 recorded in 2009, according to Foreclosure Listing Service Inc.

Some of the hotels that have foreclosure looming are the Crowne Plaza in Addison, the Radission Hotel on the LBJ Freeway, and the Element Hotel near the Dallas-Fort Worth International Airport.

According to Foreclosure Listing Services, hotels with more than $120 million in debt are to be auctioned off by the lenders next month.

Large Foreclosures make History

Some of the largest foreclosures filed over the last year in the Dallas-Fort Worth area include the 431-room Four Seasons Resort and the Club Dallas in Las Colinas. Club Dallas reported over $175 million in debt and was the largest mortgage default in North Texas in the last 20 years.

Although these statistics seem quite striking, many financial analysts are quick to say that a large number of hotel foreclosures are typical for the economic times. Unfortunately, for many hotels and the Dallas commercial office space market for the matter, the recession has simply gone on longer than anyone had anticipated. In other words, many of the commercial properties simply couldn

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Uptown Dallas

Tuesday, March 30th, 2010

Park Seventeen, the brainchild of Granite Properties and Gables Residential, has just found its first tenant: Colliers International. Colliers International has been reported to be leasing about 40,000 square feet of office space in Park Seventeen.

The sleek and decidedly modern tower fits in nicely in Dallas’ Uptown Section. Once completed, Park Seventeen will cost $200 million and will consist of 2.2 acres of mixed-use development.

Park Seventeen consists of two towers: the first tower will include 362,000 square feet of office space developed by Granite and the second tower will house 292 luxury Gables apartments.

Lease Negotiations under Way

In addition to Colliers International, this piece of Uptown Dallas real estate is in the midst of signing a handful of other tenants; there are currently three tenants in active negotiations. If the space is leased, these new tenants will occupy about 100,000 square feet of space.

These new tenants are great news for Park Seventeen, to say the least, as building and leasing space in today’s challenging economy can be quite difficult. Park Seventeen was one of the last projects to get off the ground before construction for office buildings came to a stop last year.

The developers of Park Seventeen have noted that the market for Uptown Dallas real estate has improved dramatically compared to the first three quarters of 2009.

Seventeen McKinney

The Granite office tower, called Seventeen McKinney, offers office space for about $34 per square foot, plus electricity.

Gables at Park Seventeen

The Gables apartment tower, called Gables at Park Seventeen, features 20 stories and six levels of parking. Apartments are expected to be ready for occupancy as early as next month. Prices for the apartments will start at about $1,700 per month and about $5,000 to $6,000 per month for the six penthouse units.

The apartment homes of Gables at Park Seventeen will range in size from 1,100 square feet to 3,000 square feet.

Both towers are connected with a one-acre landscaped deck, which is located in the seventh floor of each building. This landscaped deck also allows the offices and residential towers to connect.

Once completed, Park Seventeen will feature 320,000 square feet of residential space; 14,000 square feet of retail space and 375,000 square feet of office space.

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Foreclosures in Dallas Commercial Real Estate Market continue to Rise

Friday, March 26th, 2010

Just a few years ago it seemed like Las Colinas was nearly invincible. Now, fast forward to 2010 and the unthinkable is taking place: a Four Seasons hotel heading toward foreclosure.

The Latest Casualty in the Dallas Commercial Foreclosure Crisis

With a mounting $183 million in debt, the Four Seasons is just the latest casualty in the Dallas commercial real estate market. This pristine property, which is also the site of the annual Byron Nelson golf tournament, is owned by Bently Forbes, who missed a scheduled loan payment in November and is hoping the lender will either decrease the interest rate on the loan or renegotiate lower loan terms.

Bently Forbes owns three other blue chip properties in the Dallas-Fort Worth area, including the Preston Commons Shopping Center, the Sterling Plaza and Park Center. Although the Four Seasons is a separate entity from these other properties, it is estimated that the cost of a Chapter 11 bankruptcy could cost nearly $100,000.

Blue Chip Properties at Risk

Many Dallas commercial real estate experts are not surprised to find that many blue chip properties are heading toward foreclosure, given the fact that property taxes for commercial real estate properties were due in January; this could mean that many property owners simply can’t make these tax payments due to the downshift in the economy in 2009. The struggle to pay property taxes could mean disaster for many Dallas commercial real estate properties.

Another famed property that is experiencing its own set of problems in the Mosaic in downtown Dallas. This property had original mortgages totaling $66.5 million.

The Mounting Commercial Property Debt in Dallas

The foreclosed properties in Dallas currently have more than $900 million in debt, and include properties such as office buildings, shopping centers, hotels and warehouses. There are currently 250 Dallas commercial properties in foreclosure, and that number is expected to continue climbing throughout 2010 before leveling off sometime next year.

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Looking Ahead to Fort Worth

Thursday, March 4th, 2010

Fort Worth commercial real estate activity is struggling to hold its own, much like other markets in the North Dallas area.

Fort Worth’s commercial real estate market was at a standstill in 2009, much to the chagrin of many landlords and building owners, and it looks like 2010 will be much of the same.

Disconnect between Buyers and Sellers

One of the problems still existing in the Fort Worth commercial real estate market is that there appears to be a general disconnect between buyers and sellers regarding pricing for commercial real estate. In fact, much of the Fort Worth commercial real estate activity is done out of necessity, such as an upcoming loan expiration or low occupancy. In other words, the only activity seen is by those who absolutely must buy or sell.

Most commercial real estate tenants are staying put, at least for the foreseeable future, thereby creating a virtual standstill for Fort Worth commercial real estate activity.

Many buyers are also waiting on the sidelines for distressed sales to come into the market. However, given the fact that many lenders are delaying foreclosure proceedings, there isn’t a whole lot of activity on this side of the market. Unless lenders begin foreclosing, the activity will remain close to dead.

Landlords and Renters at a Standstill

Fort Worth commercial real estate activity in the office sector is also expected to see much of the same as landlords hold out for more money and tenants hold their ground on rent prices.

Overall vacancy rates for downtown Fort Worth Class A office space is at 11 percent, but when sublease space is taken into consideration this number nearly doubles.

Many businesses, still unsure of where the economy is headed and whether improvements will happen sooner than later, are simply waiting it out to see what happens.

This factor has certainly played a large role in driving down the rental rates of Fort Worth office space.

There are many incentives, however, being offered by landlords to get tenants in the door. Many leases are falling $1 to $2 per square foot, and many landlords are offering one month of free rent for every year the lease is signed.

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Dallas

Tuesday, February 16th, 2010

Dallas’ commercial real estate activity has struggled over the last year, although the tide appears to have turned. However, in order for the Dallas commercial real estate market to fully recover, this area must see job growth – and plenty of it.

Things are Looking up – Sort of

Many analysts see good things for Dallas commercial real estate activity in 2010, at least when compared to last year. The reason for this optimism is based on a variety of factors, although solid employment growth is the top reason, for sure.

The Dallas commercial real estate market saw not only a near-collapse of the industry, but also large employment declines. In fact, throughout much of 2009 this area saw massive drops in employment.

Job Losses Easing up

However, according to the Texas Employment Commission, the job losses appear to be easing up.

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Dallas Job Growth Continues to Lessen the Blow of the Tough Commercial Real Estate Market

Friday, January 29th, 2010

The Dallas-Forth Worth area, although caught up in the weak commercial real estate market like much of the country, may not have as much to worry about, thanks to a strong job market. This area still out performs when it comes to providing jobs, thereby buoying the commercial real estate sector.

Commercial Market Continues to Struggle Nationwide

Federal Reserve Chairman Ben Bernanke recently remarked that the demand for commercial properties remains down across the nation, thereby causing a “sharp deterioration in the credit quality of commercial real estate loans on the banks’ books and on loans that back commercial mortgage-backed securities.”

He also warned that many banks may be facing the decision to either roll over their maturing debt or foreclose on many of their loans. Because of this, most economists see 2010 as a tough year for the commercial real estate sector.

Job Growth Driving Dallas Commercial Market

The risk of mortgage-backed securities isn’t due to affect Dallas as much as other cities, however, because the job growth in this area continues to drive the Dallas commercial real estate market. Many economists, as a result, see the economy in Dallas really taking off by 2011, which will further help commercial real estate because of the new activity expected in the commercial market.

Most analysts also agree that the Dallas-Fort Worth area will not experience the market decline of the 1980s; in fact, they see the commercial real estate slowly improving as the economy improves.

A sharp rebound for 2010 isn’t expected; in particular, retail growth will be all but stagnant for the better part of the upcoming year. And, as we know all too well, the commercial real estate market relies heavily on the retail market.

Even despite the lackluster commercial sector, there has been a nice increase of office building leases in the Dallas area as of late, thereby indicating that the general panic of 2009 is over and that individuals are looking to move forward with their businesses.

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