An expanding population, pro-business environment and growing number of headquarters are luring investors to put their money in North Texas real estate.
In a survey conducted by CBRE (NYSE: CBRE), Dallas-Fort Worth ranked second in the Americas for real estate investor interest, attracting foreign and domestic investors. Canadian investors are particularly interested in the area, funneling $326.2 million into North Texas over the past 12 months.
Job growth and economic diversity were cited in the report as driving interest, though 49 percent of respondents reported “strong economic basics driving rental growth value” as the primary reason they’re putting their money in the region.
“DFW is a dynamic region where no one industry dominates and growth projections are generally higher than other large U.S. metros,” said Robert Kramp, director of research and analysis for CBRE’s Texas-Oklahoma division. “And because of Texas’ diverse economy, we are much more insulated against unforeseen macroeconomic events which might cause stronger economic headwinds in other areas of the country.”
Nationally, industrial real estate is attracting the most investor interest, with 50 percent citing it as their preferred investment opportunity. Multifamily real estate follows at 20 percent, office at 14 percent and retail at 10 percent.
North Texas largely follows those trends, with industrial garnering the most investment dollars. Kramp chalks that up to the metroplex being one of the country’s five super-regional industrial centers.
Other types of real estate are also interesting DFW investors, depending on their risk tolerance.
“(It) depends on the investor’s area of expertise and risk tolerance level,” Kramp said of where investors are putting their money. “DFW attracts investors from all ranges of the spectrum – entrepreneurial buyers and private capital up to to large public (real estate investment trusts), pension funds and other institutional investors.”
Along with investments, the region’s real estate scene continues to expand. CBRE reported it’s tracking more than 5.6 million square feet and 15 million square feet in current active tenant requirements for office and industrial space, respectively.
That’s an indicator that DFW will remain an attractive investment opportunity.
“No one really knows how long this (real estate) cycle will last; I’ve seen some projections for continued growth up to the next two years,” Kramp said. “However, at least for the foreseeable future, I’d expect DFW to retain its position as one of the top U.S. destinations.”
Topping CBRE’s survey was Los Angeles/Southern California.
Other Texas metros also made the list, including Houston in a tie for fourth and Austin in a tie for 10th.
For the full ranking, see the slideshow above.
Largest North Texas Investment Banking Firms
Ranked by # Local Banking Professionals
Rank Business Name # Local Banking Professionals 1 Houlihan Lokey Inc. 52 2 Stephens Inc. 50 3 Commerce Street Capital LLC 25 View This List