Growth And Growing Pains: Discussing Sustainability In DFW’s Multifamily Market At Bisnow’s May 6 Event

Few cities in the U.S. rival the Dallas-Fort Worth market when it comes to multifamily growth. 

Last year, Dallas topped the U.S. in apartment completions, building more than 41,600 units, and it’s clear that demand for these units is strong — the occupancy rate for multifamily buildings in the area grew to 93.2% in Q4 2024. 

“DFW’s growth is fueled by migration, business expansion and relatively lower costs compared to coastal markets,” said Evolution Sustainability Group Founder and CEO Chuck Hurchalla. “But growth comes with growing pains.”

Some of the growing pains Hurchalla is referring to are related to Texas’s building performance standards. While they are not enforced statewide, DFW developers and building owners need to be aware of and prepared for them as the landscape continues to evolve. 

Hurchalla will be moderating a panel titled Spotlighting Fort Worth’s Multifamily Growth at Bisnow’s DFW Bisnow Multifamily Annual Conference on May 6. Register here for the event. 

Bisnow spoke with him to learn more about the major trends dominating the DFW multifamily market and the role sustainability plays in the area’s continued growth. 

Bisnow: What multifamily trends is ESG seeing in the Dallas-Fort Worth area?

Hurchalla: The DFW multifamily market is evolving rapidly, and what stands out is a growing awareness that owners and operators may soon be facing increasing pressure to align with potential upcoming performance standards, not just for energy efficiency, but for grid resilience and compliance.

We’re also seeing developers ask deeper questions about grid reliability, particularly after recent extreme weather events. As a result, solar and storage are moving from a “nice-to-have” to strategic investments — especially in Class-A assets and institutional portfolios.

Bisnow: What are some of the hot topics you expect to discuss at the event?

Hurchalla: There are a few high-impact conversations we’re expecting to lead or weigh in on. 

The first is navigating the upcoming building performance standards. Even though Texas isn’t yet enforcing them statewide, cities like Dallas are laying the groundwork through voluntary reporting and benchmarking programs. We’ll dive into how developers and operators can get ahead of the curve.

The second is multifamily’s role in supporting grid stability. With the Electric Reliability Council of Texas under pressure, multifamily developers have a major opportunity to be part of the solution through solar generation, battery storage and demand response capabilities. 

Finally, we expect to discuss the economics of on-site solar and virtual power plants. As incentives improve and technologies become more turnkey, we’ll explore how multifamily assets can become energy producers, not just consumers.

Bisnow: What are some key factors causing DFW’s multifamily growth, and what are the challenges from an energy/sustainability perspective?

Hurchalla: We see three big challenges on the horizon, from an energy perspective. 

Grid capacity and reliability are two major challenges. DFW’s growth is outpacing infrastructure upgrades. That creates risk but also opportunity to harden multifamily assets with distributed energy resources like solar and storage.

The future of compliance is the third concern. While Texas hasn’t adopted strict performance mandates, national investors are increasingly applying internal BPS-style metrics across their portfolios. That means DFW buildings need to start tracking and improving performance now.

Finally, we need to address the issue of incentive navigation. Texas does have funding for clean energy, but it's fragmented. ESG helps clients stack local, utility and IRA incentives to make solar and energy upgrades financially viable.

‎Bisnow: In other markets, cities are providing tens of millions in funding for CRE owners/operators to invest in sustainability projects/developments. Do you believe Texas and DFW will ever get to that level of funding? 

Hurchalla: While Texas may not match the scale of California or East Coast funding in the near term, we are seeing increased momentum, especially through utility programs and local pilots in cities like Dallas and Austin. 

That said, waiting for more funding isn’t necessarily always the play. Many CRE owners are investing now to future-proof assets, reduce operating costs and stay competitive with institutional requirements. The incentives that do exist today, combined with rising utility rates and investor scrutiny, make this a worthy investment.

Bisnow: What are you seeing for the future of multifamily in DFW and how does ESG plan to be a part of it?

Hurchalla: The future of multifamily in DFW is performance-driven — assets that can prove their efficiency, resilience and grid alignment will command premiums in both cap rate and tenant demand. We see ourselves as a long-term partner, not just for compliance, but for value creation through sustainability. Our role is to bring together technical expertise, financial modeling and policy awareness to help clients build and operate high-performing, solar-integrated, grid-supportive buildings.

We’re not just focused on reducing carbon, we’re helping multifamily stakeholders future-proof their portfolios, tap into energy markets and create properties that are more livable, reliable and profitable.

Register here for Bisnow’s DFW Bisnow Multifamily Annual Conference. 

This article was produced in collaboration between Environmental Sustainability Group and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.