Dallas was the largest commercial real estate market in the United States during the COVID-19 era
Dallas was the nation’s top construction market during the pandemic and the region had the nation’s second-highest real estate investment 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 primary market for construction activity in 2019, but the market has maintained this position in the COVID-19 era.
“The value of housing starts in Dallas rose 24% year over year during this period from the second quarter of 2020 to the first quarter of 2021, when the impact of the pandemic was most pronounced,” indicates the report. “The value of housing starts in Dallas was just over double that of the second largest market, Los Angeles.”
Last year, 347 construction projects were started in the Dallas area – mostly industrial and apartment projects. The value of construction projects was nearly $ 17.7 billion.
Dallas and Nashville were the only 10 largest markets to see an increase in construction during the pandemic.
Austin and Houston ranked among the best construction markets.
Real Capital Analytics tracked nearly $ 5.8 billion in commercial real estate investments in the Dallas area in the first quarter. Only the Boston area had a greater number of commercial property purchases.
The Dallas 251 deals included the nearly $ 700 million sale of the iconic Uptown Crescent complex.
Nationwide trade transactions declined 28% in the first quarter from a year ago, and prices fell 7.8%.
“Commercial property sales have declined year over year for four quarters now,” Real Capital analysts said. “The market is not yet finished with COVID-19, but there is a light at the end of the tunnel.”