I had some really interesting conversations with investors and lenders this past week. Everyone seem to agree that there is a narrow window of opportunity in the next 14-20 months where we can find and buy NNN investment properties in the 7%-8% cap rate range. The economy will (hopefully) get back to equilibrium after that window and when interest rates will go down and demand will go up, we will see cap rates shrinking again. We plan on taking advantage of this window ourselves through EBG Acquisitions, our investments arm, and we recommend all of our commercial investors to not miss that window!
As in every week, we reviewed all the commercial listings that came on the market and picked the top ones we feel are the best value.
Established in 2008, Eureka Business Group is a full-service commercial real estate brokerage. We specialize in guiding retail investors, retail leaders, franchisees, and business owners through the complexities of retail commercial real estate in the Dallas-Fort Worth market. Whether you’re a seasoned investor, a franchisee ready to expand, or a first-time tenant, we provide expert solutions tailored to your unique goals.
As in every week, we reviewed all the commercial listings that came on the market and picked the top ones we feel are the best value.
Investment Opportunities
Not ready to invest on your own? We often have JV co-investment opportunities both as equity and debt partners. If you’d like to discuss, please email me to setup a call.
Established in 2008, Eureka Business Group is a full-service commercial real estate brokerage. We specialize in guiding retail investors, retail leaders, franchisees, and business owners through the complexities of retail commercial real estate in the Dallas-Fort Worth market. Whether you’re a seasoned investor, a franchisee ready to expand, or a first-time tenant, we provide expert solutions tailored to your unique goals.
Established in 2008, Eureka Business Group is a full-service commercial real estate brokerage. We specialize in guiding retail investors, retail leaders, franchisees, and business owners through the complexities of retail commercial real estate in the Dallas-Fort Worth market. Whether you’re a seasoned investor, a franchisee ready to expand, or a first-time tenant, we provide expert solutions tailored to your unique goals.
Established in 2008, Eureka Business Group is a full-service commercial real estate brokerage. We specialize in guiding retail investors, retail leaders, franchisees, and business owners through the complexities of retail commercial real estate in the Dallas-Fort Worth market. Whether you’re a seasoned investor, a franchisee ready to expand, or a first-time tenant, we provide expert solutions tailored to your unique goals.
,
The market is definitely waking up from the holiday slumber! We started seeing more and more properties coming up in the last 2 weeks. Mainly smaller assets under $5M but it’s probably because the larger investors move a bit slower and will catch up in the next couple of weeks.
There are some good news and some bad news. The good news are that sellers seem to be more receptive to price adjustments. The market was very clear and as a seller, if you want to move your transaction forwards, you’ll have to listen to the market.
The bad news is that the US treasury is standing pretty steady above the 4.6% mark which makes interest rates higher at the moment. Though as we always remind investors, you marry the property but you date the rate!
Under $2M
48 Units Self Storage
Why we like it:
* Bitesize deal (under $500K!)
* Rents below market
* Large development across the street
8,000 SF STNL Retail
Why we like it:
* Corporate Guarantee
* Limited Landlord Responsibility
* High cap rate with escalations on renewals
150 Units Self Storage
Why we like it:
* VERY low price/unit
* San Antonio MSA
* Value Add Opportunity
$2M-$5M
12,598 SF Industrial STNL
Why we like it:
* National credit tenant
* Great location
* Annual rent bumps
6,449 SF Retail Center
Why we like it:
* Two national brand tenants
* Retail dense area
* FedEx up for renewal next year with 10% rent bump
7,990 SF Retail Center
Why we like it:
* Trophy asset in Celina’s newest retail area
* 2023 build
* Preston road address
Want to get information about any of these properties or others?
Call/Text Joseph at: (903) 600-0616 or email at:Joseph@ebgtexas.com
CRE News 01/17/2025
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Happy New Year! It’s been a minute since I sent one of these emails. No, it wasn’t because I went on vacation, it’s because there was almost no movement on the market and definitely no opportunities I thought were worth taking space in your inbox.
that said, it’s a new year and the market is starting to pick up and we see more opportunities come up on the market or prices adjusting to become opportunities!
Below are some interesting opportunities, some as I mentioned, were on the market before but have recently adjusted priced so they became more attractive. We actually found even more interesting opportunities than we could fit in this email so reach out to me if you’d like to see more!
Established in 2008, Eureka Business Group is a full-service commercial real estate brokerage. We specialize in guiding retail investors, retail leaders, franchisees, and business owners through the complexities of retail commercial real estate in the Dallas-Fort Worth market. Whether you’re a seasoned investor, a franchisee ready to expand, or a first-time tenant, we provide expert solutions tailored to your unique goals.
DFW’s Top Submarkets: Where Investors Are Winning Big
December 21, 2024
As the year winds down, we don’t see much activity in the market and not a lot of new properties come up so I’d like to take a minute and share my thoughts on the hottest submarkets in the Dallas Metro.
The Dallas-Fort Worth area continues to be a powerhouse for commercial real estate investments, driven by strong population growth, corporate relocations, and robust economic activity. But not all submarkets are created equal. Here are the submarkets catching the attention of our savvy investors:
1. Frisco & The Platinum Corridor Why It’s Hot: Frisco remains one of the fastest-growing cities in the nation, fueled by corporate headquarters like The Star (Dallas Cowboys HQ), the GPA HQ, a new Universal Studios theme park being built these days and continued residential expansion. The mix of Class A office spaces, retail developments, and medical properties offers investors a range of opportunities. What to Watch: Retail centers in high-traffic areas along the Dallas North Tollway are commanding premium rents, and mixed-use developments are thriving.
2. Arlington Entertainment District Why It’s Hot: Home to AT&T Stadium and Globe Life Field, Arlington attracts a consistent influx of visitors and residents. The recent boom in hotel and entertainment-related developments is creating opportunities for retail and hospitality investors. The recent Tyson-JP boxing match that drew massive attention from around the world was hosted in Arlington just last month! What to Watch: Retail properties near the district are seeing increasing demand, with cap rates remaining attractive for long-term investors.
3. South Fort Worth Industrial Corridor Why It’s Hot: Industrial properties are having a moment, and South Fort Worth is no exception. Proximity to major logistics hubs like I-35 and I-20, combined with increasing e-commerce demand, makes this area a magnet for warehouse and distribution investments. What to Watch: Vacancy rates are at historic lows, and new developments are quickly leased up. Investors should act fast to secure properties in this high-demand sector.
4. McKinney, Prosper & Collin County
Why It’s Hot: As companies continue to migrate northward, McKinney is emerging as a key player in Collin County’s growth story. The city’s charming downtown, combined with rapid suburban expansion, offers opportunities in retail and office spaces. A recent $70M expansion was just approved for the McKinney airport adding a commercial terminal will no doubt increase the visibility and growth of the area. Collin county is also home to Plano, Allen, Frisco, Ann & Melissa, all suburbs of N. Dallas that experienced hyper growth in recent years. What to Watch: Properties near new housing developments are gaining traction as more residents seek retail, dining, and professional services close to home.
Honorable mentions in the Metro secondary growth areas
the metro is expanding in almost every direction. Cities such as Rockwall, Rowlett, Princeton, Celina, Aubrey, Corinth. White Settlement. Benbrook. Cedar hill. Crowley, Lancaster, Desoto, and Mesquite all are located in the outskirts of the metroplex growth paths and are positioned to benefit from the next line of expansion. I’d keep an eye on those as well!
Wrapping things up
DFW is packed with opportunities for investors who know where to look. Whether you’re eyeing a retail strip center in Frisco or an industrial property in Fort Worth, the right submarket can make all the difference.
Let’s talk about how we can position your next investment for success. Just click on the button below to schedule a call with me!
How To Spot Key Elements in a Commercial Lease: Hold Over
About Us
Established in 2008, Eureka Business Group is a full-service commercial real estate brokerage with a passion for providing creative solutions to complex real estate situations.
At Eureka Business Group, we specialize in guiding retail investors, retail leaders, franchise owners, and business owners through the complexities of retail commercial real estate in the Dallas-Fort Worth market. Whether you’re a seasoned investor, a franchisee ready to expand, or a first-time tenant, we provide expert solutions tailored to your unique goals.
These are the top two opportunities in the market today!
As usual this time of the year we’re having conversations with our investors to build their 2025 strategy together.
Here is our take on the economy and the direction things are going in the next few years and at the end I will also share what I believe are the top two opportunities in the market today.
The market is definitely reacting to the election’s outcome with overall positive sentiment. Stocks are exploding, indexes are breaking records and interest rates are dropping.
Canada’s central bank lower the rate (one of the biggest cuts they had in a while). The European central bank did the same this week and most analysts I’ve been talking with are positive that the US Fed will do the same and cut rates again in the upcoming meeting.
Another interesting curveball that came from talking with local DFW lenders was that they now have construction loans available at around 7.x% Yes, mid-7’s for a construction loan! I was surprised as well. Obviously, not all lenders do that, but they have a few that do and that’s a game changer!
So, what are the top two commercial real estate opportunities in 2025?
First in my opinion is new construction! 6 months ago, I’d tell you to stay away from it but with everything above converging at the end of 2024, new construction projects starting in 2025 will be ready for occupancy in about 18-30 months and will have a new, ready product, just at about the time the economy will be (hopefully) recovered and hungry for more. Neighborhood Retail, Flex in core urban locations and multifamily in areas that are not overbuilt (harder to find these days) will be the winners.
The other top opportunity in 2025 is assets with NNN leases that are 2-3 years long and have annual rent increased built into them. Specific, yes, but important! We see these in assets classes like Neighborhood Retail, Flex in core urban locations and some single tenant investment assets. These assets are trading at a 6.5%-8.5% cap rate range. Going in at that rate, coupled with NNN leases that grow every year, will be a winning combination when cap rates compress again (regardless if it takes 2,3,5 or 10 years to get back there…)
That’s just my opinion, and where we plan to deploy our 2025 investments funds in.
Agree? Disagree? Want to join us? Drop a comment below!
Over the past two weeks we’ve been having interesting conversations with investors, retailers, lenders and other players in the commercial real estate world. It seems like there is a new positive sentiment in the market one that brought investors back into the market and even more important, brought many lenders back into the fold! One of our favorite lenders shared new programs that have become available recently and it’s definitely interesting. They even have construction loans at around 7% !!!
What does it mean for investors like you & I? It means we will see commercial construction starts rise in the next few months, we will see increased activity in the market and a lot more transactions closing in Q1 of 2025.
Do you own Commercial Real Estate?
As the year winds down, we offer a free BOV service to our commercial property owners. Even owners that don’t plan on selling anytime soon appreciate our thorough valuation report to use for tax planning, refinancing strategies, partner conversations and investor reports. Just reply to this email and I will connect with you to get you in our BOV queue.
Established in 2008, Eureka Business Group is a full-service commercial real estate brokerage with a passion for providing creative solutions to complex real estate situations.
At Eureka Business Group, we specialize in guiding retail investors, retail leaders, franchise owners, and business owners through the complexities of retail commercial real estate in the Dallas-Fort Worth market. Whether you’re a seasoned investor, a franchisee ready to expand, or a first-time tenant, we provide expert solutions tailored to your unique goals.
Hope you had a great Thanksgiving Holiday! Not many interesting deals are new on the market this week with the holiday but we went back and revisited some of the more interesting deals that are still available. It’s already too late to get another property closed before year unless you pay cash…
Do you own Commercial Real Estate? As the year winds down, we offer a free BOV service to our commercial property owners. Even owners that don’t plan on selling anytime soon appreciate our thorough valuation report to use for tax planning, refinancing strategies, partner conversations and investor reports. Just reply to this email and I will connect with you to get you in our BOV queue.
Eureka Business Group is a full-service commercial real estate brokerage with a passion for providing creative solutions to complex real estate situations. With a proven track record of licensed brokers and experienced commercial investors ourselves, we specialize in the purchase, sale, management, and repositioning of commercial real estate assets.
