When Will the Cycle Peak?

Not soon. With submarkets like Legacy, Uptown, and Preston Center getting record-breaking lease rates eclipsing mid-$30s to low $40s/SF in some instances, the DFW commercial real estate market will accelerate through '14. (It's only bad news if you throw kickin' End of Cycle parties.)

Citadel Partners managing partner Scott Morse (right, with Cawley’s Randy Shipman at a Richardson broker event) tells us the market started to turn in Q4 ’12. Property sales are pushing the limits for pricing and land in the hottest markets is selling for a premium. The things making development challenging right now are the rising construction costs and shortage of skilled labor, Scott says.

The best part: Scott sees this trend continuing into late ’16 or early ’17 (barring any global catastrophes; Kardashian divorces don’t count). Every tenant he’s working with is positive about their industry forecasts. In general, we're seeing cycles where the lows are not as dramatic and the rebounds a little more rapid because of the disciplined development community, he says. Scott’s been working with partner Scott Jessen for clients like TI, Weaver, and Eland Energy, which completed a 45k SF lease to kick off Bill Cawley’s new building on Knoll Trail (pictured.)

Both Scotts are working with an office tenant seeking a 60k SF space, and they have a 70-acre tract under contract with a 500k SF building on it he’s hoping to close by the end of Q1. Out of the office, Scott M. admits to being terrible at golf, but keeps on trying with partner Scott J. (right). But he’s most looking forward to being a granddad for the first time, as his daughter is expecting a baby in June.

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