IRR: Dallas multifamily report 1Q 2015IRR: Dallas multifamily report 1Q 2015https://www.recenter.tamu.edu/news/newstalk-texas/?Item=11472015-05-08T14:36:00Z2015-05-01T00:00:00Z

DALLAS - Strong population growth within the region, low unemployment, corporate relocations and expanding business across several key industry sectors continue to drive the expansion of the Dallas multifamily market.

Overall vacancy held steady at around 5 percent throughout 2014 and is expected to increase slightly in 2015 as nearly 10,000 new units are expected to be completed.

Absorption remained positive for all classes, in both the suburban and urban setting, and this trend is expected to continue for the next several years.

Rental rates for both A and B/C property classes continue to increase, with units in downtown Dallas seeing the greatest increase as demand remains strong. Cap rates are steady across the metro area and will likely decrease only slightly throughout 2015.

One Dallas Center, 1600 Pacific and The Olympic are all former office towers currently being redeveloped into mixed-use properties featuring Class A multifamily units.

The multifamily market in suburban Dallas remains equally strong with several large projects underway such as CityLine in Richardson, which will include 4,000 multifamily units at build-out, and the $1.2 billion Wade Park mixed-use development in Frisco that will include a residential component.

Given continued population growth — that will in turn drive demand for the increased number of new multifamily units coming online — the market, should continue to remain balanced and strong into 2015.

Dallas Multifamily 1Q 2015
Dallas 1Q 2015 Urban
Class A
Class B
Class A
Class B
Market rent change 4.00% 3.00% 4.00% 3.00%
Expense change 3.00% 3.00% 4.00% 3.00%
Absorption (units) 760 10 1,422 1,622
Construction units 9,145

See Integra Multifamily 1Q 2015 Report.

For more Multifamily news, check out DFW Market Research and DFW Multifamily NewsTalk.

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