D-FW Construction Starts Bounce Back from Pandemic
During the first half of 2021, building permits were filed for almost $4.5 billion commercial and multifamily real estate projects in the area. That’s a 12% gain from the same period last year.
That surpasses half-year gains before the start of the pandemic.
The D-FW area was second only to New York City in total commercial and apartment building starts, according to a new report by Dodge Data & Analytics .
Nationwide the value of commercial and multifamily starts in the 20 largest U.S. metro areas was up 12% in the first six months of 2021 compared to the same period last year.
Many building starts around the country were delayed our cancelled last year in the early months of the pandemic.
“The recovery from the COVID-19 pandemic has begun but is very uneven,” Richard Branch , Chief Economist for Dodge Data & Analytics , said in the new report. “Commercial construction has been buoyed by strength in the warehouse sector as large e-commerce companies build out their logistics infrastructure while office, retail, and hotel activity is subdued.
“Multifamily starts, meanwhile, have rebounded solidly following a weak 2020,” he said. “The dollar value of commercial and multifamily starts should continue to improve over the coming six months; however, growth will remain muted due to high material prices and a shortage of skilled labor in the construction sector.”
The biggest North Texas building starts during the first half of the year include the $150 million Harwood No. 14 office tower near Uptown, the $85 million JW Marriott hotel downtown and a new $60 million Facebook Data Center Building in North Fort Worth , according to Dodge Data.
D-FW apartment project starts were 30% higher year-over-year, with the largest new projects including Hines’ $250 million Maple Terrace residential building, the $100 Urby residential tower in the Dallas Design District .
So far in 2021, developers have broken ground on millions of square feet of North Texas industrial buildings which have also added to construction totals for the area.
While many U.S. metro areas saw rebounds in commercial building, Dodge Data said that markets including Houston , Washington DC and Los Angeles experienced building start declines from the first half of 2020.
In the Houston area, commercial and apartment building starts were down 30% to a total of $2.2 billion .
Dodge Data said that the top 10 metro areas accounted for 40% of all commercial and multifamily starts in first half of the year.
The D-FW area real estate market has recovered faster from the pandemic than most areas of the country.
Dallas was the top commercial real estate investment market in the country this year.
Through the first six months of this year, Dallas saw almost $13.4 billion in commercial property deals — 43% more than in the same period a year ago, according to a new report by Real Capital Analytics .
Sales of dozens of local apartment communities and warehouses, plus the $700 million purchase of Uptown Dallas’ Crescent complex, all contributed to the huge volume of property investments in the area this year.
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