Fort Worth CRE Update: Multifamily And Industrial Keeping Developers Occupied
Fort Worth passes its 2017 checkup with good marks. The industrial, multifamily, retail and office markets in Fort Worth show strong fundamentals with rock-bottom vacancy rates. Strong job growth and in-migration support Fort Worth’s growth as developers continue to invest, especially in multifamily and industrial.
CBRE Senior Vice President, Occupier Advisory and Transaction Services in the Fort Worth Office David Walters points to the presence of industries like energy and defense in Fort Worth as drivers for job growth and incentive for developers’ attention.
"I think the entirety of Dallas-Fort Worth continues to be one of the top relocation destinations for both people and companies. So, I think we're going to continue to grow at a decent rate, just organically, because of the favorable tax laws and business regulations," Walters said.
According to Walters, a shining example of the growth in Fort Worth is the Cassco/Simon Center Shops at Clear Fork development. It has the buzz of high-end retailers like Neiman Marcus, luxury multifamily units and a successful trio of office buildings totaling roughly 340K SF.
Fort Worth's metrics look healthy across the big asset classes, and Walters said developers are going bananas over Fort Worth multifamily and industrial in particular, snapping up development opportunities in a frenzy and accounting for much of the development focus in Fort Worth.
Fort Worth multifamily is at 96.08% occupancy, and according to CBRE Research, there were 764 units delivered in Q3 and another 7,725 units were under construction. The weighted average monthly rent for Fort Worth was $1.17/SF in Q3.
Fort Worth industrial is enjoying a 6.4% vacancy rate, and developers appear bullish on the market as there were roughly 600K SF delivered in Q4 with another 300K SF on the way in South Fort Worth and 3.6M SF on the way in North Fort Worth, according to CBRE research.
Retail occupancy was at 94.8% in Q4 and the average asking rent went up from $13.71/SF in Q3 to $14.57/SF in Q4.
Fort Worth office is not quite as strong, clocking 21% vacancy in Q4, and rents softened from $19.16/SF in Q3 to $19.02 in Q4.