• Fri. Dec 9th, 2022

Dallas tops Los Angeles and New York for first-quarter real estate investment

ByWillie M. Evans

May 17, 2022

Dallas, New York and Los Angeles skylines (iStock)

Dallas-Fort Worth was the nation’s top real estate investment market in the first quarter of 2022, thanks to apartment and industrial deals.

Investors have invested nearly $13 billion in DFW properties, more than double the investment volume in the first quarter of 2021, according to the Dallas Morning News. The metropolitan area has also led the country in real estate investments

Notable sales include the Richards Group office tower on the North Central Expressway, which was taken over by a partnership between New York investor Angelo Gordon and two local businesses; Dallas-based Woods Capital’s purchase of downtown’s Bryan Tower; and the 50-story Trammell Crow Center, which was acquired by Regent Properties, a California-based real estate investor that recently opened a second headquarters in Dallas.

Real estate investment activity in the Dallas-Fort Worth area more than doubled last year, according to a report by Real Capital Analytics. Most of the purchases were for industrial buildings and apartments.

Metro Dallas was particularly active in apartment transactions. The region leads the country in first-quarter apartment sales, with more than $29.2 billion traded between January and March this year, more than double the amount sold the previous year.

“This represents the largest volume recorded in the first quarter, surpassing the first quarter of 2007,” Newmark analysts said in the new report. “Investor demand has started to normalize in the property types most affected by the pandemic, namely retail, hospitality and office, while multifamily remains the most sought-after property type, registering $63 billion in the first quarter of 2022.”

With investor demand for real estate skyrocketing and the state’s growing supply crisis, the Dallas City Council has even begun to weigh restrictions on investor purchases.

“Are we working on a broader policy regarding the scourge of investment buyers? Councilwoman Jaynie Schultz told a council meeting earlier this month, “It’s across the country that individuals aren’t buying homes anymore, but REITs are.”

[DMN] -Maddy Sperling