Monday Morning Scoop - Dallas-Fort Worth Named A Top Real Estate Market To Watch By ULI
Dallas-Fort Worth Named A Top Real Estate Market To Watch By ULI
Dallas-Fort Worth is expected to be a leading real estate market in 2023, according to new findings by the Urban Land Institute.
The Metroplex is second only to Nashville in ULI’s overall real estate prospects ranking, and it also nabbed sixth place on the institute’s list of metros with top homebuilding prospects. DFW advanced five spots ahead of its No. 7 ranking last year, per ULI’s Emerging Trends in Real Estate report, put out in partnership with PricewaterhouseCoopers.
Commercial property markets are beginning to normalize following enormous growth seen in the aftermath of pandemic lockdowns, but DFW continues to outperform its peers.
As a strong population and business magnet, The Metroplex, along with other cities in the Sun Belt, is considered a safe haven for investment despite rising interest rates and market uncertainty, the report found. The area’s relative affordability and economic stability are, for the time being, creating enough confidence to keep growth moving forward.
Still, the Metroplex isn’t without its challenges. The cost of housing continues to rise, and investors have expressed concern over how climate change could impact assets moving forward, per the report.
Investors are also keeping a close eye on the potential for oversupply in markets like DFW, where strong population growth and business relocations have spurred a development frenzy. The Metroplex has added 289M SF of commercial space since 2010, outpacing any other market in the nation, according to new data from CRE search engine 42 Floors.
“We are probably relatively less attracted to the growth markets despite their fundamentals, relative to where we were last year,” the head of an institutional investment advisory firm said in the report. “These were the hot markets, but we’re a little concerned about what it looks like going forward.”
By: Olivia Lueckemeyer