Dallas-Fort Worth Named The No. 2 Investment Market Nationwide

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Commercial real estate investors rank Dallas-Fort Worth as the No. 2 investment market in the U.S., with the Texas metro maintaining its reputation for solid economic fundamentals in the job and population growth categories, CBRE said in its 2021 Americas Investor Intentions Survey.

Popular investment targets include life sciences labs, medical offices, single-family rentals, data centers and cold-storage facilities.

Austin is the only market to outrank DFW in the study, which was completed by surveying 150 U.S.-based real estate investors from Dec. 9 through Feb. 2.

Secondary markets like Dallas and cities across the Sun Belt scored high among CRE investors in the latest survey because of investors’ potential to obtain more equity and income growth in these low-cost, rapidly expanding areas, CBRE said.

Tech-driven markets also scored high among the CRE investor class, with the Top 10 choices for investment outlays including big-time tech players like Austin, Denver, San Francisco and Seattle.

Investors with more assets under their control also showed a greater interest in taking risks in 2021. For the first time since the survey began seven years ago, a larger pool of  investors with assets of more than $50B under their control showed a stronger appetite for opportunities in secondary markets like Dallas over primary, first-tier cities.

Investors looking for high returns also exhibited a greater risk tolerance heading into 2021, with 30% of respondents, up from 16% last year, saying they’re ready to target distressed assets or opportunistic plays in 2021. As they expand their reach, investors expect aggressive pricing in the logistics and multifamily spaces and discounts in most other asset types, according to CBRE.

CRE investors in 2021 also want more diversity when it comes to asset types.  Seventy-two percent of those surveyed said they are looking to invest in one or more alternative asset types this year, up from 54% in 2020.

 

Source: Bisnow

Economist Imparts Positive Outlook For The Economy, Healthcare And Healthcare Real Estate

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Unlike other past economic crises, the current one is quite different in that it is dominated by a pandemic hindering both the supply side and the demand side of the economy simultaneously.

This double-edged sword has, at least so far, been preventing what has often been a typical road to recovery out of recessions: rising consumer confidence and spending throughout various aspects of the economy.

This time, however, the COVID-19 pandemic has shut down “certain parts of the economy” not only once, but a second time, and “on the demand side it has created a disincentive for people to go out and engage in the economy,” said Ryan Severino, chief economist for Jones Lang LaSalle Inc.

“Not that I thought people were jumping back in wholeheartedly (after a slight relapse in pandemic in mid-2020), but at the margin it made people think twice about going out to a bar or to a restaurant or getting on an airplane, staying at a hotel, things like that, said Severino. “So, undoubtedly, the pandemic, which is the source of this problem, started to create more of a headwind for the economic recovery as the pandemic started to accelerate again.”

 

Source: HREI

Colorado Credit Union Branch To Be Converted To Medical Office

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Avison Young has brokered the sale of an 8,000-square-foot office property located at 8331 Continental Divide in Littleton.

8331 Continental Divide, Littleton, Colorado (PHOTO CREDIT: Avison Young)

The property was formerly a Colorado Credit Union branch and headquarters and will be transformed into a pediatric medical office. The property sold for an undisclosed price.

Avison Young Principal Rick Egitto, CCIM along with Justin Rayburn, principal with Fountainhead Commercial Properties, represented the seller, Colorado Credit Union. The buyer, Continental Divide Holdings, LLC was represented by Dann Burke and Stephani Gaskins with CBRE Healthcare Real Estate Brokerage Services.

“The buyer plans to execute a renovation of the property for use as its pediatric practice,” said Egitto. “We are seeing the Denver market being driven by the strong demand for medical office space and expect that trend to continue over the next 12 to 18 months.”

The broker team used its collective network to bring the opportunity to the market and secured a buyer for the property days before the listing went public. The quick sale enabled the seller, Colorado Credit Union, to consolidate its operations at its new Denver headquarters building on San Juan Way. It will also provide a reputable local pediatric practice to expand operations to a new office in the Denver metro.

“Rick and Justin’s targeted strategy to identify a local owner/user buyer allowed for a short due diligence period. This aligned with our business goals to rapidly monetize this real estate asset and capture valuable equity to invest back into our business,” said Mike Williams, CEO with Colorado Credit Union.

 

Source: Mile High CRE