Thanks to Steve Brown for the following news. Follow @SteveBrownDMN
As Dallas – Fort Worth thaws for a few days from the sleet and snow, we’re still hopeful that more sellers will appear as we head into March. There’s still slim pickings for home buyers and home builders, and multifamily builders call us daily looking for lots and land to develop. It’s been very interesting to watch land and home prices rise so rapidly over the course of two short years. It begs the question, how long will these good times last?
Right now, there is no sign of any slowdown. Local job growth and in-migration continue to put a strain on our housing supply with Dallas – Fort Worth rental rates and home prices both appreciating at record-breaking paces. In fact, Case-Shiller reported DFW home prices were up 7.5% in December versus a year ago.
While lower oil prices have cooled the Houston market slightly, they haven’t seemed to have had much of an effect on Dallas – Fort Worth. Plus, those low oil prices may be temporary. I saw a home video of T. Boone Pickens this week reaffirming what he said previously on CNBC – that he thinks oil prices will be back to $80 a barrel within 18 months. New incoming US leadership in 2016 with a real goal of US energy-independence, would be another boost for the oil and gas industry, and in particular, Texas.
Headlining Dallas real estate news this week is the Dallas Arts District announcing another high-rise apartment tower. The 39-story mixed-use development will rise from an old parking lot on a 1-acre tract at Flora and Olive streets, next door to Museum Tower. Designed by Boston-based architect Add Inc., the thin tower will sit on top of the six-story loft and retail building, which will include 370 luxury apartments, 39 artists lofts and about 12,000 square feet of ground-floor retail space.
Moving out north to the wild frontier, John Landon, of Landon Homes, has bought 146 acres from the 3,500 acre Brinkmann Ranch in Frisco. It’s believed that the land sold for $27 million. Landon has an option to buy another 56 acres. Baxter Brinkmann has owned the land since 1993, when he bought it from the estate of former Dallas oil man, Cloyce Box. Part of the land was used in the filming of the TV series, Dallas.
Dallas – Fort Worth will trail only Houston in nationwide office development in 2015. Marcus & Millichap predicts that Houston will see 11.5 million square feet of office building openings this year followed by the D-FW area with 6 million square feet. Dallas is also ranked 3rd nationwide in office leasing activity forecast for 2015, behind only Houston and New York City.
DART, or Dallas Area Rapid Transit, is mulling over a move from their current office building. It has more room than they need, and they are deciding whether to sell or lease out their space in the Dallas Central Business District at 1401 Pacific Avenue. Olympic Property Partners of New York is renovating the 52-story former First National Bank tower across the street and has talked to DART about acquiring their property, as both buildings flank DART’s Akard Station.
Dallas custom Home Builder and developer Robert Elliot Homes has scored a prime development site in silk-stocking Highland Park. The luxury Highland Park condo project called Mondara, will feature homes from 1,500 to 4,300 square feet, with prices starting close to $800,000. It’s located on Abbott Avenue near Knox Street. I’m very curious what the price per square foot was on that dirt!
Another big corporate relocation may be brewing. JP Morgan Chase is looking to consolidate it’s offices in DFW. Some think it’s likely to be new construction, and it could approach 1,000,000 square feet. Chase currently has 12,000 employees in Dallas – Fort Worth spread across multiple buildings.
The Dallas Central Business District reported a banner year for leasing and activity. Leasing was up 70% versus 2013, and redevelopment projects will continue to make downtown more vibrant and attractive.
Let’s look forward to another great week in Dallas real estate. If we can answer any of your real estate questions, we would love to help. Reach me directly at 214-690-9682.
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