Austin and Dallas are two of the leading commercial real estate investment markets in the United States, with strong and resilient economies, growing populations, and high quality of life.
The Dallas-Fort Worth and Austin area ranked as top in the nation for 2023 real estate investment among the 10 largest U.S. metro areas according to The Dallas Morning News. Both markets are projected as some of the hottest in the nation for both investment and development due to location, resilient economies, growing populations, and high quality of life. Coming out of 2022, North Texas led the nation in total commercial property investment with more than $42 billion in transactions, according to the latest estimate by MSCI Inc.
Dallas is located in the heart of the South, making it an important hub for transportation, distribution, and commerce. It is an attractive location for businesses looking to access a large customer base. In close proximity to Dallas, Austin is known for its vibrant music and cultural scenes, growing tech sector, as well as its outdoor recreation opportunities and high-quality restaurants. All of these factors make it a desirable place to live and work, driving demand for commercial real estate’s top investors.
Alongside location, the growth rates and economy of Dallas and Austin make Texas a prime target for CRE investors. The Austin metro area is consistently one of the fastest-growing metros in the nation. With more than 2 million residents, the Austin MSA is one of the best-performing investor markets in the country. Frequently referred to as Silicon Hills, the Austin region is home to more than 7,200 world-renowned software enterprise and high-tech start-up companies, including: Apple Inc., Amazon, Dell, Google, Facebook, eBay/ PayPal, Expedia, Indeed, and Oracle Corporation. The newly built Tesla Gigafactory is one of the world's largest and most advanced automotive plants and bring an estimated $1 billion in capital investment. The continued, rapidly expanding Austin technology hub offers tremendous investment opportunities for those who relocate to the Austin area.
Meanwhile, The Dallas-Fort Worth metropolitan area is one of the fastest growing in the country, with a population expected to exceed 10 million by 2040. This population growth is driving demand for both residential and commercial real estate. In 2022, both McAfee and Wells Fargo announced new major relocation developments coming to the Dallas area. The new Wells Fargo campus is projected to bring an estimated $455 million in capital investment, and both projects will deliver thousands of jobs. Dallas is home to a number of major corporations, including AT&T, Southwest Airlines, and Exxon Mobil, as well as a thriving tech sector which has created a strong and stable economy, making it an attractive location for CRE investments.
Dallas and Austin, with diverse and growing economies, and with many major technology companies migrating to both cities, have created a strong demand for residential and commercial real estate. After a volatile year of geopolitical tensions, economic shocks, and post-covid recoup - Dallas and Austin are projected to outperform in a market where investors are hesitant to close as they watch how the global market stabilizes over the coming months.