www.REBusinessOnline.com October 2022 • Volume 18, Issue 8 MIXED-USE DEVELOPMENT BARRELS AHEAD By Rob Welker and Steven Janeway of Hoefer Welker s one of the biggest states, Texas regularly sees some of the largest demand in real estate develop-ment in the country. In recent years, North Texas specifi -cally has experienced a rapid short-term increase in population, leading to a signifi cant development boom and driving up urban and workforce con-struction volume, rental rates and sale values. Mixed-use developments have led the charge in commercial growth through-out the Dallas-Fort Worth (DFW) me-troplex. Higher overall interest in a live-work-play lifestyle has contributed Developers throughout North Texas continue to unveil huge projects that feature a true critical mass of distinct uses that are seamlessly connected. A Grandscape, a 433-acre development on the northern outskirts of Dallas, is one of the marquee mixed-use projects in North Texas, bringing hundreds of apartments and millions of square feet of offi ce and retail space into a single destination. As the region's population continues to grow, the pace and volume of mixed-use projects should move in lockstep. to the development of a larger number of spaces that provide corporate, retail and residential capabilities. Gone are the days when corporate campuses and multifamily complexes were predominantly in the suburbs; tenants and employers have increas-ingly searched for living experiences in urban environments where they can combine the three biggest facets of their lives within a single destination. This approach provides the conve-nience that tenants crave and the access to concentrated populations that retail-ers and offi ce users typically need to be successful. SEE NORTH TEXAS page 19 INTEREST RATES, INDUSTRIAL TENANT DEMAND SQUARE OFF By Taylor Williams While price correction is underway due to larger moves in the capital markets, sustained in-migration and slowing development should buoy occupancy and rent growth in Texas. M uch as the commercial commu-nity and society at large would like to avoid a recession, pro-longed periods of contraction are part of the natural economic cycle, and the U.S. fi nancial powers that be appear to be on a collision course for exactly that scenario. But for assets classes backed by exceptional demand drivers and fun-damentals, like industrial real estate in major Texas markets, is there really a need to sweat a downturn? Like any confl ict, the battle between macro-and micro-level forces essen-tially comes down to magnitude. Will the severity of interest rate increases — three separate hikes totaling 200-plus basis points in a few months — prevail over robust tenant demand that has fu-eled record occupancy and rent growth throughout Texas and beyond in recent years? Only the Federal Reserve can speak to the fi rst variable. The nation’s central JLL recently arranged the sale of Urban District 183, a 366,771-square-foot development located in Euless. Urban Logistics Realty sold the property, which was fully leased at the time of sale, to an undisclosed buyer. SEE INDUSTRIAL page 20 INSIDE THIS ISSUE What the In ation Reduction Act Means for Property Tax Assessments page 17 Texas Has A Leg Up on Other Markets in the Fight for Of ce Occupancy page 18
Texas Real Estate Business October 2022: Page 1
