Over the last year, the commercial real estate industry has had a whirlwind of market factors affecting businesses and investors alike. However, compared to the nationwide statistics, the Dallas-Fort Worth market has thrived with stable fundamentals, promising growth, and attractive cap rates.
Dallas-Fort Worth is an attractive area for both commercial real estate investors and tenants looking for space to lease. With an abundance of businesses and job opportunities, the region has seen a steady increase in the amount of activity related to property leasing. With that, now is the time to lease your property within the D-FW Metroplex.
In this blog, we will discuss reasons why leasing your property is the right decision for you in today’s market.
When leasing your property, it is a no-brainer that the biggest benefit is passive income generation. Passive income is money you earn from a source that doesn’t take a lot of effort from you to earn it. It could be investments in stocks or bonds or income from real estate, just to name a few. In general, passive income is great. It can boost your retirement savings, help you retire early, or simply help you reach your wealth-building goals faster.
Rental properties can be a great source of passive income once your rental is up and running. I mention that because it will possibly take some effort at the start (if you need to make updates at the get-go, for instance, to make it rental-ready), so it may not completely passive upfront. But, it can provide a monthly income flow without you having to participate in any kind of daily work once the property is leased.
This is especially true if you hire a Property Manager that will help you get your property ready for leasing as well as monitor tenants, handle maintenance repairs, and collect rent.
In fact, M&D Real Estate has an experienced, five-star-rated property management group that is lauded by investors for their sound management, minimizing vacancy loss and ability to provide investors with the best return on their investment through knowledgeable practices and expert leasing terms.
To generate passive income, you will need to have a tenant in place. Thankfully, the D-FW Metroplex is expanding rapidly and has new businesses expanding into the market daily. Dallas-Fort Worth is now the fastest-growing metroplex in the United States, with over 97,000 people moving to the metro area between June 2020 and July 2021. Collin County, just north of Dallas-Fort Worth, reported the second-largest population growth of any county in 2021, and then D-FW’s Kaufman County is currently ranked as the #1, fastest growing county in the nation, according to the Dallas Morning News.
With a high population growth, D-FW is also developing new commercial businesses to increase job growth. With more than $70 billion in direct spending in the state in 2022, Texas accounted for almost 20% of nationwide commercial real estate sector contributions to the economy.
And more than 1 million jobs in Texas were supported last year by the commercial property business, according to an annual study by the NAIOP Research Foundation. Direct commercial property spending more than doubled in Texas from 2021 levels, along with jobs supported.
“Texas is the highest-ranking state in the U.S. for overall contributions of commercial real estate to state gross domestic product with $184 billion, $70.3 billion in direct spending, $69.2 billion in personal spending and 1.2 million jobs supported in 2022,” reported NAIOP Vice President Kathryn Hamilton.
Texas ranks first in the nation for office, industrial and retail building activity, according to the latest NAIOP study.
As numerous businesses have relocated to D-FW, owners have been more interested in leasing than buying real estate due to higher interest rates and inflation. Several other reasons businesses are choosing to lease include:
If you’re still wondering if a rental investment is right for you and you’re not sure how to invest, then you need the help of a reputable commercial real estate professional to guide you.
This is too big of a decision to make alone, and M&D Real Estate has experienced, five-star agents ready to help you along the way when it comes to the local market and all the details of buying and selling investment properties.
Contact an M&D Commercial Real Estate Agent today.
Leave your details, select your interest(s), and we’ll get you more information on how we can help.