The Dallas area was the country’s top commercial real estate investment market in the first half of 2021.
Dallas claimed the top spot in real estate it won at the start of the COVID-19 pandemic last year, according to a new report from Real Capital Analytics.
For the first six months of this year, Dallas recorded nearly $ 13.4 billion in commercial real estate transactions – 43% more than the same period last year. Last year, the local market recorded more than $ 19.7 billion in commercial real estate transactions.
“After taking the top spot in 2020, Dallas was again the number one market for US commercial investment activities in the first half of 2021,” said Real Capital analysts in their latest industry update. “Unlike 2020, Dallas didn’t make it to the top of the list due to a push from portfolio activity.
“For the first time, Dallas would also be ranked number one in the first half of the year due to its single asset deal activity.”
The sale of dozens of local shared apartments and warehouses, as well as the $ 700 million purchase of the Crescent Complex of Uptown Dallas, all contributed to the huge real estate investments in the area that year.
The Crescent was ranked the second largest commercial real estate deal in the country for the first six months of 2021.
Atlanta ranks second in real estate deals with $ 11.1 billion. Los Angeles ranked third with $ 10.7 billion.
Houston ranked sixth with nearly $ 7 billion in transactions in the first half of the year.
The Dallas area had nearly three times the dollar volume of commercial real estate investments like Manhattan, where transactions were 39% year-over-year.
“A year ago we found that a storm had hit the commercial real estate markets, but headlines for the second quarter of 2021 suggest that storm is largely over,” analysts at New York City Real Capital Analytics said in their latest study. “There are still problems and some minimal signs of a price adjustment, but the effects of the pandemic have not been as bad as many feared.
“The market as a whole has not only recovered, but is possibly in a new expansion.”
Nationwide so far this year, the largest purchase sums for commercial real estate have been by far industrial and multi-family houses. Retail and hotel sales had some of the lowest volumes.