They’re not making more of it. Maybe that’s why land sales have held up, for the most part, in North Texas this year. With single-family sizzling and large, zoned industrial rocking, it’s all about demand. Still, many big-pocket investors are waiting—and hoping—for values to shift sharply downward. Robert Grunnah, a veteran land broker at Younger Partners, thinks they may be wasting their time.
Grunnah is among the commercial real estate experts in our feature, “21 On 2021.” He shares his outlook on what’s next in a Q&A.
What’s ahead for land sales in 2021?
The most active demand land product in order: large, zoned industrial; any size zoned single-family (or can be reasonably zoned) square footage with utilities almost in any direction; any infill high-density multifamily; and attractive, market-priced large vacant investment tracts north. The least active: peripheral office sites; any retail land except smaller infill and or in Uptown; mixed-use dominated by non-residential.
Has the pandemic impacted the value of land?
It’s all been relative to demand for product as set out above. The in-demand tract values are up, the non-demand down, but prices have been less affected than anticipated.
Are buyers’ priorities changing in terms of sites?
Again, there seems to be no apprehension about paying top price for in-demand product, and little interest in product not in demand. There exists an enormous amount of investment cash stalking the market for a pending, serious “readjustment.” I think they’ll be disappointed, get bored, and start buying—thus stabilizing the land market. Texas should be greatly pleased by the issues that make this state a wonderful place to live, work, and invest.
What recent big deals could shape the future of the region?
PGA (headquarters moving to Frisco), JEN Partners’ McKinney development (1,100 acres north of Highway 380), high-speed rail (Dallas to Houston route), Amazon (building new shipping hub in South Dallas), and Hillwood in North Fort Worth.
The interview has been edited for brevity and clarity. A version of this story first published in the Fall 2020 edition of the Dallas-Fort Worth Real Estate Review.
Sandra Engelland contributed to this report.
Read the digital edition of Dallas Innovates’ sister publication, the Real Estate Review, on Issuu.
Sign up for the digital alert here.
Get on the list.
Dallas Innovates, every day.
Sign up to keep your eye on what’s new and next in Dallas-Fort Worth, every day.
R E A D N E X T
-
Nonprofit BUiLT is hosting the event to highlight the success and possibilities of Black tech talent in the region. “There is no talent pipeline problem,” says Peter Beasley, co-founder of the Blacks United in Leading Technology International. “Black tech talent is widely available, especially in North Texas.”
-
North Texas has plenty to see, hear, and watch. Here are our editors' picks. Plus, you'll find more selections to "save the date."
-
Cityfund lets people invest in real estate markets like stock, starting with launch cities Dallas, Austin, and Miami.
-
The hybrid event in August will take place in person at SMU and virtually. The seventh annual Dallas Startup Week powered by Capital One is Dallas-Fort Worth's largest event focused on driving entrepreneurial success, economic impact, and innovation in the region.
