Dallas tops LA and NY in first quarter real estate investments

Almost $13 billion in North Texas investment properties changed hands in first quarter

Dallas, New York City and Los Angeles skylines (iStock)
Dallas, New York City and Los Angeles skylines (iStock)

Dallas-Fort Worth was the country’s top real estate investment market in the first quarter of 2022, thanks to apartment and industrial deals.

Investors put almost $13 billion into DFW properties— more than double the investment volume in the first quarter of 2021, according to the Dallas Morning News. The metro area also led the country in real estate investments

Some of the biggest sales included the Richards Group office tower on North Central Expressway, which was picked up by a partnership of New York-based investor Angelo Gordon and two local firms; Dallas-based Woods Capital’s purchase of downtown’s Bryan Tower; and the 50-story Trammell Crow Center, which was acquired by Regent Properties, a California-based real estate investor that recently opened a second headquarters in Dallas.

Property investment activity in the Dallas-Fort Worth area more than doubled last year, according to a report from Real Capital Analytics. Most of the purchases were for industrial and apartment buildings.

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The Dallas metro was especially active in apartment deals. The area led the country in first-quarter apartment sales, with more than $29.2 billion changing hands between January and March of this year— more than double the amount sold the year before.

​​“This represents the largest first-quarter volume on record, overtaking first quarter 2007,” Newmark analysts said in the new report. “Investor demand has begun to normalize in the property types most impacted by the pandemic, namely retail, hospitality and office, while multifamily remains the most sought-after property type, recording $63 billion in first quarter 2022.”

With skyrocketing investor demand for real estate and the state’s mounting supply crisis, Dallas’ city council has even begun weighing restrictions on investor purchases.

“Are we working on a bigger policy regarding the scourge of investment buyers?” said Councilwoman Jaynie Schultz at council meeting earlier this month, “it is across the country, where individuals are no longer buying homes, but REITs are.”

[DMN] — Maddy Sperling