Dallas Commercial Real Estate Trends for 2023 & 2024

September 21, 2023

Dallas Commercial Real Estate Trends for 2023 & 2024

The tenth-largest city in the United States, Dallas has a population of 1.3 million people and works as an anchor for Dallas Fort Worth, and Arlington. The city offers something for everyone, right from sports to nature and museums. 

Dallas is a city of industry and commerce and it is exploding with commercial real estate. As per an estimate from MSCI Inc, more than $42.5 billion in commercial property was sold in the Dallas Fort area in 2022. We can see a few clear trends this year which will also continue into 2024. Experts predict that the market will be one of the hottest in 2023. In this article, we’ll be discussing the trends for 2023 in more detail.

Industrial Warehousing in Dallas, TX

One of the most prominent commercial real estate in Dallas, the industrial warehousing space has been steadily growing over the past year and shows no signs of slowing. The construction of new warehouses and distribution facilities is booming across the state and it is nothing new for Dallas since it has been one of the leading hubs of industrial development for a long time. Dallas has achieved more than 16% growth in the last year with signs that point to it moving even higher in the coming months. For an investor, this is a solid growth rate and as the industry continues to expand, it will show even better numbers. 

Dallas Retail Property Investing

With retailers looking for more versatile options to offer new experiences to their customers, there will be a rise in Dallas retail property investments. The available retail space is increasing at a rapid pace and this is due to the increasing demand. Due to high demand, we can also see new construction investments which can be really lucrative for investors. The rental rates are at a historical high and the vacancies remain very low. We will continue to see the rental vacancy rate declining and the demand for commercial rental property will steadily rise. 

Office Space for Businesses in Dallas

Investor sentiment is based on population growth and Dallas Fort Worth has gained more people in the last decade as compared to any other area in the U.S. This has driven several companies to Dallas as it gives them access to a huge talent pool. Dallas is highly popular for its business-friendly environment and it has proven to be more resilient than the U.S. as a whole during the economic downturn. 

Businesses need their employees to return to work and while they are not forcing everyone to come back 100% of the time, a lot of businesses are looking for spaces to increase their square footage to accommodate the hybrid option. Business owners are on the lookout for spaces that are environmentally friendly and can accommodate a few employees regularly. 

Market conditions have led to a plunge in the demand for commercial properties across Dallas and this trend is set to continue through 2024. Investment in commercial property is one of the best ways to make your money grow.

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Investing in the commercial real estate space is a great way to enjoy passive income while watching your investments grow. In an uncertain market like today, CRE investment can bring stability to your portfolio.