What’s Up With Money and Deal Flow?
The financing discussion at RealShare Texas on Wednesday will focus on what is ahead for the capital markets, the financial drivers, investment opportunities and predictions, Pumper shares in this EXCLUSIVE.
DALLAS—Given the fast pace at which the Texas commercial real estate market is growing, coupled with the consistently improving economy, deal activity is expected to remain strong. In preparation for RealShare Texas, GlobeSt.com got a sneak peek from Steve Pumper, executive managing partner with Transwestern, on deal flow activity, what is ahead for the capital markets, the financial drivers that determine decision making, investment opportunities and predictions for deal flow in the upcoming quarters in this exclusive.
Pumper will moderate a panel with speakers David Cohen, managing director, Ready Capital Structured Finance; Matt Turner, senior vice president, Revere Capital; Andrew Van Tuyle, senior managing director, investments, BH Properties; and Jeffrey Erxleben, executive vice president and regional managing director, NorthMarq Capital.
The last cycle has shown a maturation of the Sunbelt cities, with Dallas, Houston and Phoenix leading the way with live-work-play scenarios and walkable amenities adopted from urban cores.
“We are seeing repositioning of assets in the core plus, freshening up A-minus to A and B to B-plus assets and including a mixed-use component in office projects to make them more walkable,” Pumper tells GlobeSt.com.
With 1,200 residents moving into Texas per day, the metroplex remains in the top five although there is minor concern in this latter part of the cycle, Pumper says. The sectors of most of concern are development, office and multifamily. Industrial is the least concerning, he says, because DFW is in the top three behind Inland Empire and Atlanta for industrial activity.
“Nonetheless, investors are bullish on Dallas due to its in-migration, quality job growth and tax incentives,” Pumper tells GlobeSt.com. “Lenders are underwriting in Dallas and commercial real estate in general.”
The next 10 years will be a barometer of continued growth, he says.
“Things will move up quite a bit,” Pumper tells GlobeSt.com. “The question is how will interest rates affect the industry? While lenders are still chasing the best deals and remaining competitive, where lenders will go later in the cycle is the unknown.”
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