The recent sale of an office tower in Farmers Branch serves as a sign of the strength of the commercial real estate market in Dallas-Fort Worth.
The ten-story office block, called Farmers Branch Tower, provides 250,000 square feet of office space in a prime location close to Interstate 35E. The building, located at 2711 LBJ Freeway, was valued at $16 million for tax purposes.
Built in the 1980s, the tower was leased by Transwestern before its most recent sale. The investment group’s purchase of the building brings together two powerful groups from the South and East as New York’s Hudson International Group and Maitland Management of Dallas have combined their financial muscle to buy it.
The tower’s sale comes when businesses return to office space following the COVID-19 pandemic, and Texas’s commercial real estate market is booming. Investors from across the U.S. have been buying up existing properties and working on new constructions.
Not all investors are eager to have their commercial real estate property deals widely publicized. An unnamed New York-based company invested $37 million in The Point at Las Colinas office tower, leveraging most of its funding from UMB Bank.
Nonetheless, Farmers Branch is one of the popular areas for commercial real estate investors looking for new opportunities in DFW.
Though the pandemic caused problems for commercial real estate markets across the U.S. for 2 years, the anticipated market crash did not make its way to the Dallas-Fort Worth area. Instead, the area’s commercial real estate sector rose to become the top market in the U.S. by 2021.
The Dallas-Fort Worth commercial real estate sector saw deals totaling more than $47 billion last year. The size and number of commercial real estate transactions pushed the region to become the top market in the U.S.
The first quarter of 2022 has seen the number of impressive commercial real estate deals continue to rise as the DFW area continues to attract investors from across the U.S. The market shows little sign of slowing down moving into the second quarter.