Supply is starting to cool down in Dallas' multifamily sector — one of the markets that has been overbuilt in recent years. Deliveries slowed to 5,336 units in the second quarter, down from the 6,836 posted in the previous three months, according to an analysis posted by CBRE. Most of the completions occurred in the Allen/McKinney submarket, which saw 1,389 new units.
Additionally, net absorption of 8,691 units well outpaced the supply. Demand also improved from the 7,318 units recorded in the first quarter.
Every other key fundamental at least showed modest improvement as well. For one, occupancy rose by 60 basis points to 94.3 percent, with Intown Dallas posting the lowest vacancy rate, averaging just 4.7 percent. Rents inched up by 0.4 percent to $1,551.
Moreover, sales saw an impressive increase of more than $1 billion to $3.05 billion. The biggest purchase in terms of number of units in Dallas was made by Pecos Housing Authority (1,487). The next closest were made by Kite Realty Group and City of La Villa (TX), which purchased 782 and 662-unit properties, respectively. Pecos (with a separate acquisition) and Crow Holdings, rounded out the top five, with 486 and 480 units, respectively.
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