By Ron Holmes
Is the Construction Boom over?
Reports have overall construction this year in the DFW area down by 33% and non-residential construction by 70% in May from the level a year ago. Is that due to lack of demand or the higher cost of materials and the labor shortage?
With continued in-migration at such a high level, I tend to think lack of demand is not the answer. If so, then Economics 101 informs us that prices (acquisitions, sales and leasing) will rise in the near term, fueling speculation about inflation, which, in turn, may further slow construction and, thus, create even higher prices.
A lot is happening in Commercial Real Estate
Notwithstanding the slow-down in construction, we have continued to keep our doors open, representing clients in the following representative transactions since our last Newsletter:
- Represented the Seller in the sale of 22 commercial properties located in the CBD, in Dallas, Texas.
- Represented the Seller in the sale of 3 office/warehouses with 259,555 square feet near the DFW Airport.
- Represented the Purchaser in the purchase of two office buildings with 83,000 square feet office and a like amount of structured parking bordering Exall Park, Dallas, Texas.
- Represented the Lender in financing the purchase of land for single family housing construction in Dallas, Texas.
- Represented the Developer in the purchase of land in Leander, Texas for multifamily development.
- Represented the Developer in negotiating the takedown of 137 residential lots in Denton County, Texas.
- Represented the Lender in the refinancing of a commercial property in Tarrant County, Texas.
- Represented the Landlord in the renewal of industrial lease of approximately 80,000 square feet in Dallas, Texas.
Our firm handles an extensive range of real estate transactions. Contact us if you need legal representation in a real estate matter.