A recently inaugurated rental community adjacent to Galleria Dallas has witnessed an impressive uptake in leases, pointing to a high demand for apartments in the area.
Hazel by the Galleria located on LBJ Freeway at Noel Road was built by Florida-based ZOM Living and opened in March, The Dallas Morning News reported.
Yet the 398-unit, six-story building housing a 3,000-square-foot coworking space was popular among prospective tenants well before it opened its doors to them.
“Leasing has been strong since February and notably quicker compared to other urban core markets we’ve developed in, thanks to North Texas’ diverse economy and population growth,” said ZOM Living’s Senior Vice President Jason Haun, according to the DMN.
The apartment community now boasts an almost 80% occupancy rate, with apartments starting out at 478 square feet rented out at over $1,400 a month.
As previously reported in The Dallas Express, rents in Dallas-Fort Worth have risen by 21% since the start of the pandemic, with the median rent for a one-bedroom apartment in the Dallas area standing at $1,201.
Demand for apartments near Valley View and Galleria-area development — dubbed Dallas Midtown by the City of Dallas — has taken off due to mixed-use areas blending retail, office, and residential spaces.
More mixed-use developments are yet to come.
For instance, a large development at the Valley View Mall site spearheaded by developer Scott Beck, CEO of Beck Ventures, will feature 26,000 square feet of retail and restaurant space and 275 upscale apartment units, as The Dallas Express reported.
Trammell Crow Residential, Irving-based JPI, and Dallas-based PegasusAblon all have multifamily construction projects in the works in the area.
Yet how quickly all these projects in the pipeline will be ready to house tenants remains to be seen since Dallas is notoriously difficult to build in.
City officials have struggled to manage its heavily backlogged permitting process, which has become a subject of ire for the development community, as previously reported by The Dallas Express.
