DFW Multifamily Demand Runs Untethered Amid 100k Jobs

PLANO, TX—Vigorous demand factors are unable to keep vacancy snared as strong employment growth headlines the DFW metro’s healthy fundamentals. Specifically, more than 100,000 jobs will be created this year.

White-collar positions will remain abundant, particularly in downtown Dallas as well as the Telecom Corridor in Richardson. Fort Worth’s central business district is also beginning to garner more interest from employers.

This sustained job creation and strong household formation will support the absorption of almost 27,000 units this year, however, that won’t be enough to keep vacancy from rising. Vacancy is set to move into the upper-5% range as construction hits a cyclical high of more than 30,000 new units, according to a report by Marcus & Millichap. The influx of supply will dilute rent growth, putting gains well below the previous five-year average of 5.4%. Transitioning neighborhoods near the core should continue to record rental increases moving forward.

Further evidence of this demand is resulting in abundant multifamily investor interest. Specifically, a $53 million loan recently closed to refinance a class-A 320-unit apartment community in Plano. The undisclosed property is located less than one mile east of the Sam Rayburn Tollway and the Dallas North Tollway junction.

Jeremy Sain in the Dallas office of HFF placed the loan with NXT Capital.

“The project was built by an experienced local developer and was completed in early 2018,” Sain tells GlobeSt.com. “The property is near several corporate business parks, nearby restaurants and retail.”

Community amenities include a gated parking garage with reserved parking, swimming pool with cabanas, fitness center, resident lounge with coffee bar, business center, community-wide WiFi, pet play area and pet washing station, and a walking and running trail.