The Future of Fort Worth Real Estate

The future of commercial real estate in Fort Worth looks bright according to the latest numbers. Relocations to North Texas and a booming population growth have driven a higher demand for leasing office space, industrial space, and retail space. Supply has yet to keep up with the frantic pace of demand for Fort Worth commercial real estate but, as investors snap up properties like hot cakes, new commercial property growth is imminent.

LoopNet has aggregated data on Fort Worth commercial market trends across Office, Industrial, and Retail segments:

Fort Worth Office Properties

Sales demand has increased by 20.5 percent over last year.

Lease demand has increased by 15.1 percent over last year.

The number of days on the market in July 2014 was 217 for sales (+11.2 percent over last year) and 188 for leases (+18.8 percent over last year).

Asking prices have increased in 2014 compared to last year and continue to increase. Fort Worth office asking prices, which average at $124 per square foot, are still lower than the national average asking price of $127 per square foot.

Sale prices have increased while the average sale price in the state of Texas has decreased. It should be noted, however, that Fort Worth sale prices are currently below the state’s average. In July 2014, the average sale price in Texas was $122.44/sq. ft. (+9.9 percent increase over last year), but the average sale price in the Fort Worth metro area was $91.47/sq. ft. (-12.5 percent over last year).

Asking rents for Fort Worth office properties ($16.36/sq. ft.) are slightly lower than the state average ($16.74) and slightly higher than the national average ($15.76).

Fort Worth Retail Properties

Sales demand has increased by 7.5 percent over last year.

Lease demand has increased by 18.4 percent over last year.

The number of days on the market in July 2014 was 151 for sales (+37.3 percent over last year) and 275 for leases (+61.5 percent over last year).

Asking prices increased 6.2 percent over last year. Fort Worth retail asking prices, which average $149 per square foot, are lower than the national average asking price of $155 per square foot.

Sale prices have increased aside the average sale price in the state of Texas. The Fort Worth metro area actually has a higher sale price than the state’s average. In July 2014, retail properties in Fort Worth sold at an average of $130.17 /sq. ft. compared to the state average of $122.16 / sq. ft.

Asking rents for Fort Worth retail properties ($14.13/sq. ft.) are slightly lower than the state average ($14.53) and slightly higher than the national average ($14.01).

Fort Worth Industrial Properties

Sales demand has increased by 16.1 percent over last year.

Lease demand has increased by 16.3 percent over last year.

The number of days on the market in July 2014 was 226 for sales (+9 percent over last year) and 252 for leases (+43.3 percent over last year).

Asking prices have increased 14.1 percent over last year. Fort Worth industrial asking prices, which average $57 per square foot, are lower than the national average asking price of $58 per square foot.

Sale prices have decreased, while the average sale price in the state of Texas has increased. Mirroring the trend in office properties, industrial property sale prices in Fort Worth are currently below the state’s average. In July 2014, the average sale price in Texas was $51.54 / sq. ft. (+6.1 percent over last year), but the average sale price in the Fort Worth metro area was $45.42 (-1.5 percent over last year).

Asking rents for Fort Worth industrial properties ($6.48 /sq. ft.) are slightly lower than the state average ($6.85) and slightly higher than the national average ($5.87).

KW Net Lease Advisors