Thanks to Steve Brown for the following news. Follow@SteveBrownDMN on twitter.
The continuing story for the Dallas real estate market continues to be a lack of supply in the residential market. Home builders continue to scramble for Dallas home builder lots in the Park Cities, Lakewood, east Dallas, Lower Greenville, the M-streets, Preston Hollow and northwest Dallas south of 635. Dallas land zoned for multifamily development is also in hot demand. Shameless plug – if you have any of the above, we can help you get it sold.
The elephant in the room, now roaming the Texas Gulf Coast, continues to be the oil price saga. Oil prices spiked 8% on Friday, mainly due to Islamic State militants marching toward Iraq’s northern oil fields. That activity could boost prices for now, but ninety-four rigs were taken offline this week, marking a rig-count of 1,223 units, a three year low.
As a result of the downturn, energy companies of all sizes have announced layoffs and budget cuts. Chevron plans to chop $5 billion in capital spending while Royal Dutch Shell, ConocoPhillips and Occidental Petroleum Corp. have announced planned budget reductions of $20 billion.
Karr Ingham, who compiles the monthly Texas Petro Index, says the Lone Star State could idle 600 rigs before the downturn is over, or a reduction of 60 to 65%.
As a result, Camden Property CEO Ric Campo, says lenders have redlined the once hot Houston multifamily real estate market. He doesn’t expect a crash, just a slowdown, since Houston has two other powerful economic boosters, the medical industry and the port. Campo mentioned that Houston’s now falling land prices may prove more attractive than existing assets.
Arguably the hottest real estate market in the country the last couple of years, Houston is still expected to create at least 40,000 new jobs this year. As it’s real estate development market cools, will Houston-based builders and developers now look to D-FW for opportunities? Or will the slowdown trickle over to Big D? Should be interesting to see what develops, no pun intended.
Speaking of Dallas and Houston, Builder magazine just named them, respectively, the top 2 markets most in demand for new homes by baby boomers – with the least amount of available supply. It predicted that 52% of new-home buyers will be over 55 in the next five years.
Chris Bright, CEO of Bright Realty, announced that commercial real estate developments are now underway in Lewisville’s Castle Hills. In addition to new apartments and retail, the 150-acre Crown Centre Office Park at State Highway 121 and Carrollton Parkway is planning for as much as 3 million square feet of construction.
McKinney’s Craig Ranch announced it’s developing 1,000 new home builder lots due to overwhelming demand. It will deliver lots over the next 28 months. Home builders include Ashton Woods Homes, Beazer Homes, Darling Homes, David Weekley Homes, Megatel and Landon Homes.
More than 1,000 hotel rooms are in the planning stages for downtown Dallas. The resurgence of the Dallas Central Business District continues, as this map of the new hotel developments for downtown Dallas marks the spots.
Trammell Crow Residential and Wood Partners have begun construction on two West Dallas apartment communities. Trammell Crow’s Alexan West apartment development at Fort Worth Avenue and West Commerce Street will tout 340 apartments. Just across the street, Alta Yorktown, a 226-unit apartment project, is underway by Wood Partners.
Landmark Center, in the west end area of downtown Dallas, has been purchased by Foundry Capital Partners and Argosy Real Estate. It was built in 1913, and originally served as a warehouse for General Electric.
Leon Capital announced a new apartment development near CityPlace. The 6-story rental community was designed by Architect Hensley Lamkin Rachel. It’s being built on the site of a single-story medical complex at Lemmon Avenue and Oak Grove, just west of North Central Expressway.
Developer Billingsley Co. is building a 70,000-square-foot showroom and distribution building for Workplace Resource Group. The new home for the Carrollton-based dealer and distributor of office and commercial furniture and fixtures, will reside on about six acres on Rosemeade Parkway.
Developer Majestic Realty Co. is starting three new warehouse projects – one in southern Dallas County and two near Dallas/Fort Worth International Airport.
Dallas-Fort Worth home foreclosures were down 29% in February, and are now 78% lower than they were four years ago.
Top Dallas custom home builders shared some of the new trends in new home design. Check out what LRO Residential, Tatum Brown Custom Homes, Veranda Fine Homes, S&R Development, Greico Modern Homes, Classic Urban Homes, Bauhaus Custom Homes, JLD Custom Homes, and Sharif & Munir Uncustomary Custom Homes had to say.
Let’s hope for another great week in Dallas area real estate. It’s an owner’s market, but there are always opportunities for buyers. Call me if I can help you at 214-690-9682.
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