Commercial Real Estate Market Rises in Dallas-Ft. Worth Area
2018 has been very good for commercial real estate in the greater Dallas area. Dallas proper and surrounding areas such as Irving and Fort Worth, have seen a big increase in commercial real estate projects ranging from conversions and house flips on up to multi-stage construction. Yet despite the success of commercial real estate investors, securing adequate financing for property transactions and projects still remains a major obstacle.
Commercial Real Estate is More Accessible to Dallas Area Investors
Twenty years ago, it was rare to see individuals becoming successful at commercial real estate. In the late-1990s, however, people started to realize they could make very lucrative careers by purchasing and renovating properties, or by converting real estate to rental units. The commercial real estate business was strong up until the Great Recession of 2007. The economic uncertainty, combined with recent storms, put Dallas-Fort Worth property investors in a bit of a holding pattern. Now the economy is very strong, and both private residents and business owners are looking to purchase and rent property, giving commercial real estate investors in the greater Dallas area opportunities to increase their bottom lines.
No Shortage of Buyers and Renters
Right now, businesses are making plans to expand and grow into new territories. Individuals are taking contract jobs in an around Dallas, and are looking to relocate. Any commercial real estate investor with a little know-how and ambition can turn a profit in the current market. Single-family properties, multifamily rentals, office space, franchise businesses, hotels, and more can generate sizable revenue, and the opportunities keep popping up in the Dallas-Ft. Worth area.
Inflation Rears its Ugly Head
Earlier this year, it was announced that the Fed might have to raise interest rates on bank loans. Unfortunately, that announcement came true – three times in 2018 with more interest hikes on the horizon. The current state of bank loans presents a large obstacle to commercial real estate investors who need funding for acquisitions, renovation, or construction. Instead, local property investors are finding faster and more accessible financing alternatives to act on time-sensitive opportunities. Using a combination of conventional loans and bridge loans, Dallas area investors are able to purchase, renovate, and flip houses quickly and profitably. Construction loans ensure working capital at every stage of a project to prevent delays. Even more robust solutions, like CMBS, mezzanine, and stated income loans are available without the red tape of traditional lending institutions.
At Oxbow Capital Partners we offer a wide range of commercial real estate loans and funding solutions for property investors throughout the Dallas-Fort Worth region. Our team will work with you to create a solution tailored to your needs, so you can complete transactions and start generating revenue. Contact our offices today to learn more.