Dallas was the top U.S. commercial property market during COVID-19 era
Dallas was the largest home improvement store in the country during the pandemic, and the area had the second highest real estate investment total in the country in the first quarter, according to a new report from Real Capital Analytics Inc.
“Dallas is booming,” Real Capital said in its latest quarterly report. “Not only was it the leading market for construction in 2019, but the market maintained that position through the COVID-19 era.
“The value of housing starts in Dallas rose 24% year over year during this period from Q2 2020 to Q1 2021, when the impact of the pandemic was greatest,” the report said. “The value of the Dallas launches was just over twice that of the next largest market, Los Angeles.”
Last year, 347 construction projects were started in the Dallas area – mostly industrial and residential projects. The value of the construction projects was nearly $ 17.7 billion.
Dallas and Nashville were the only top 10 markets to see construction spikes during the pandemic.
Austin and Houston were among the top hardware stores.
Real Capital Analytics recorded nearly $ 5.8 billion in commercial real estate investments in the Dallas area in the first quarter. Only in the Boston area was there a greater number of commercial properties.
The 251 Dallas deals included the nearly $ 700 million sale of Uptown’s landmark Crescent Complex.
Nationwide retail stores were down 28% year over year in the first quarter and prices were down 7.8%.
“Sales of commercial real estate have declined for four quarters compared to the previous year,” said analysts at Real Capital. “The market isn’t done with COVID-19 yet, but a light is shining at the end of the tunnel.”