D-FW investment property buys slowed in the first quarter

Dallas-Fort Worth’s deal flow took a dip in the first quarter.

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Cushman & Wakefield reports that the volume of investment property sales in North Texas fell by 17 percent from first quarter 2017. The decline follows years of big gains in D-FW real estate activity.

There were first quarter, year-over-year declines in almost every type of investment property sales. The biggest decrease was a 58 percent drop in suburban office building sales. Retail property sales were off 35 percent from first quarter 2017.

Even with the drop in sales volume, the D-FW area ranked sixth nationally with almost $3.2 billion in deals.

First quarter sales volumes also declined in Boston, Miami, San Francisco and Los Angeles, according to Cushman & Wakefield.

The drop in property purchase probably has more to do with a lack of prime real estate up for grabs in North Texas, analysts with the commercial real estate firm say.

“It’s not like there has been any change in investor sentiment about the Dallas market,” said David Bitner, Cushman & Wakefield’s head of Americas capital markets research. “We don’t hear any negative sentiment about Dallas.

“Investors are really happy with their Dallas properties and Dallas continues to have strong economic growth,” he said. “I think Dallas will continue to be attractive.”

In the last few years, North Texas has seen some huge investment property deals and there are currently fewer large trophy assets on the market.

News of the slowdown in investment property purchases comes at the same time as reports that North Texas construction activity has slowed significantly in 2018.

Through the first five months of the year, commercial building activity in the D-FW area is down more than a third from the same period of 2017, according to Dodge Data & Analytics.

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Information Courtesy of Steve Brown – Dallas News 

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