Hey. Yes. Welcome back. Today we’re gonna be, uh, taking a pretty deep look in the US commercial real estate market. Mm-hmm. Uh, using the MSCI real assets. Okay. US Capital Trends report Yeah. For February, 2025. Um, and we’re gonna be looking at it kind of through the lens of some analysis done by JP Morgan.

Okay, great. So, sounds good. Um, yeah, our, our sort of mission for this deep dive is to, uh, yeah, really pull out the key insights from this report, uh, so you can get a really clear understanding of what’s going on in the market, uh, um, without having to like wade through a lot of data. Yeah. Makes sense. So, uh, yeah, think of it as your, uh, your quick route to being really informed That’s cool.

About the CRE landscape. Cool. Um, jumping right into it, uh, the total sales volume. Okay. In US commercial real estate for February, 2025, hit $26 billion. Okay. Um, that’s, you know, pretty, pretty notable. 23% increase compared to, uh, the 21.1 billion that we saw in February of last year. Big jump. So, um, yeah. You know, at first glance it looks like kind of a big jump, right?

It does. Uh, but maybe we should dig into a little bit about what makes up Yeah. That 26 billion, let’s unpack that a little bit. Yeah. Because, uh, you know, a big thing that the report points out is, uh, these things called entity deals. Okay. Um, which totaled $4 billion in February, 2025. Mm-hmm. Um, and what’s interesting is there weren’t any in the same month last year.

Entity deals. Yeah. Yeah. Um, so for those of us who maybe aren’t super familiar with, uh, all the ins and outs of CRE Sure. Uh, why should we be paying attention to these when we’re trying to kind of gauge the temperature, right? Of like the commercial real estate asset market? Yeah. So, you know, that’s a really good question and it’s a really important distinction because when we’re typically talking about CRE transactions, we’re talking about.

Uh, individual properties like office buildings, right. Retail centers being bought and sold. Right. Um, but entity deals, um, often involve the sale of like a whole company or a large collection of properties. Yeah. Under like a single corporate structure. And these can happen, you know, as a result of, uh, you know, company strategies mm-hmm.

Mergers and acquisitions. Ooh. So, um, you know, whereas a regular sale Yeah. Would tell us about demand for like a certain type of building. Yeah. You know, entity deals might just reflect a company like restructuring its holdings. Okay. Which doesn’t necessarily mean that more people wanna buy office buildings.

I see. So to really get a clear picture of how individual properties are trading. Right. You know, analysts often separate these out. Okay. That makes a lot of sense. Yeah. It’s like a, yeah. Like the difference between looking at how many individual cars were sold versus the sale of a whole like rental car company.

Right. Exactly. Right. Yeah. Yeah. So if we take that $4 billion in entity deals out of that February 20, 25 figure, yeah. What does the year over year growth and transaction volume look like then? Yeah, so when you exclude those entity deals, uh, the year over year growth comes down to a more modest. Okay. But still positive.

Yeah. 4.1%. So this really highlights for you. Yeah. You know, why it’s so important to look beyond just the, you know, the top line numbers to understand the real kind of, uh, dynamics that are happening. Yeah, absolutely. It’s about kind of like peeling back the layers and seeing what’s really happening under there.

Yeah. Um, so the report also mentions, uh, something that’s maybe not always the most, uh. You know, eye catching headline, but Right. Important nonetheless, which is revisions Yeah. To data from previous months. Yeah. Um, it seems like those initial numbers we see aren’t always totally set in stone. That’s right.

And that’s actually a pretty normal part Yeah. Of how market data gets reported. Okay. You know, initial figures are often based on early information mm-hmm. And they get refined as more complete data becomes available. Yeah. So what this report shows is like. Modest upward revisions for recent months. Okay.

Which generally suggests that the initial picture was maybe a little bit understated. Okay. Uh, are there any specific revisions that sort of jump out at us? Yeah, so the transaction volume for January, 2025. Uh, again excluding entity deals. Right. Saw a pretty big upward revision of 12.6%. Wow. Um, so that brings the total for January to $32.6 billion, which is a pretty robust 20.3% increase.

Yeah. Compared to January of last year. Wow. Okay. Um, interestingly, the figures for December and November, 2024 are now pretty much finalized with less than a 1% upward revision. Okay. So it seems like the more recent the data Yeah, the more it’s subject to change. For sure. For sure. Um. Okay. So let’s take a step back and look at kind of the bigger picture.

Okay. Um, how does what we’re seeing in February and the beginning of 2025 sort of stack up against Yeah. The trends we saw? Yeah, good. Quickly at the end of last year, um, so according to MSCI, real assets, uh, the fourth quarter of 2024 showed a really, really strong Okay. Surge in US transaction volume, excluding entity deals.

Okay. Um, with a notable 47.5% year over year growth. Wow. That’s a, the big jump. That’s a huge jump. Yeah. Um, and the report mentions that. This aligns with what some of the big CRE service companies were reporting. That’s right. Like, does that Yeah. Yeah. Yeah. JP Morgan highlights that revenue reports from companies like JLL Okay.

Indicated a similar, uh, strong performance in their business segment. Yeah. Uh, with JLL reporting a plus 51% year over year increase. Okay. So it sounds like. And so that kind of agreement across different sources makes the data seem Yeah. It really strengthens the credibility Yeah. Of the MSCI data. Okay, cool.

So a strong finish to 2024. Yeah. Um, now bringing it back to the start of this year. Yeah. Um, the report gives us an initial year to date growth figure. Right. For January and February of 2025. Right. What’s that looking like? So based on the data we have for the first two months, uh, the initial year to date growth comes in at plus 13.2%.

Okay. Um, so that’s a positive start, but yeah, it is important to keep in mind those historical upward revisions. Right, right. Those adjustments. Yeah. Um, I think the report mentioned a, a potential 30% upward swing between the initial and the finalized figures. Yeah, that could, I’m really, that could really change things.

Yeah. Yeah. If we just apply like a 1.3 x multiplier mm-hmm. Like the report suggests based on historical patterns. Yeah. Um, the year to date growth for January and February could potentially jump to around plus 37.3%. Wow. Okay. Year over year. Um, and similarly, February’s growth excluding entity deals might have been closer to plus 35.3%.

Yep. Year over year. Yeah. Now this is just a projection, right. Based on past trends. Got it. So it’s something to watch. Yeah, for sure. As more finalized data comes out. Okay. So the, the initial 13.2 is good news, but the reality could be, could be even better. Much, much stronger. Yeah. Um, now JP Morgan also offers their own kind of take on this, right.

Um, mentioning their internal models Yeah. For revenue growth in CRE service companies. Right. Um, what are they anticipating? So their internal models are projecting a more conservative plus 12% year over year growth. Yeah. In global capital markets revenue for those companies. Okay. In the first quarter.

Right. Um, they point out that this is a global figure, right? So it could be affected by slower activity in regions outside the US Yeah. And also by some, you know, one-off items in the financial reporting. Right. But, uh, it’s like a slightly more cautious. Outlook, but Yeah. Still in positive territory. Yeah.

Yeah. The report specifically says that they’re no less encouraged. Okay. By the initial US transaction data. Yeah. Even though they have that more, you know, tempered global forecast. Yeah. It sounds like they’re acknowledging the strong US data. Yeah. But they’re also kind of tempering it with the broader global picture.

Exactly. Exactly. And they also include, yeah, a really interesting real world anecdote. Yeah. Um. About a recent breakfast with C-B-E-C-E-O, Bob Tic. Oh, okay. That sounds like it could offer some Yeah. Interesting. On the ground. Yeah, exactly. Insights. Yeah. So he indicated that he’s seeing a narrowing of the bid ask spread in the capital markets.

Okay. Which basically means that the difference between the price sellers want for properties, right. And what buyers are willing to pay is getting smaller. Okay. Um, and this is often a sign that, you know. More deals are likely to happen. Think so because buyers and sellers are kind of finding common ground.

Yeah. That’s a really positive sign. Yeah. Suggesting that some of that uncertainty that we’ve been seeing, right. Is starting to maybe resolve a little bit. Absolutely. And maybe even more noteworthy was his comment about interest rates. Okay. He suggested that interest rates are appearing to be less of an obstacle to transactions.

Okay. And he even indicated that the market could potentially absorb. Wow. A 10 year treasury yield. Okay. Climbing up to 5%. That’s pretty significant. Yeah. That’s a big statement. Yeah. You know, it implies that there’s a greater willingness and ability for both buyers and sellers, right, to make deals. Even if rates are a bit higher than we’ve seen recently.

It seems like the market might be. Kind of adjusting Yeah. Finding its footing in this new rate environment. Yeah, for sure. And you know, hearing this kind of sentiment from someone like A-C-B-E-C-E-O Right. Who has, you know, direct insight into the market Right. Really adds a valuable like qualitative layer Yeah.

To all the quantitative data we’re seeing in the report. Yeah, for sure. Okay. So we’re seeing some generally positive signs in the overall transaction. Volumes. Yeah. Um, we’re hearing some encouraging things from industry leaders. Yeah. Uh, but let’s break down that February, 2025 transaction volume by specific.

Property sector. Okay. Um, were there any surprises in terms of like, which property types saw the most activity? Yeah, there were definitely some interesting dynamics at play. Okay. And likely some surprises. All right. Let’s go through ’em one by one. Okay. Uh, which one saw the biggest jumps in transaction volume?

So leading the way by a pretty big margin was the retail sector. Yep. Uh, which. Posted a pretty remarkable plus 105% year over year growth. Wow. Okay. Um, and then following that, uh, maybe surprisingly, was the office sector with a substantial plus 55.2% increase. Wow. You know, this really challenges the narrative Yeah.

Around these sectors. Yeah. You know, it suggests that there’s still considerable activity Yeah. And maybe even some renewed interest in these areas. Wow. So retail more than doubled. Yeah. And office, which has kind of been, you know, really scrutinized lately. Yeah. Saw a huge jump. Huge jump. That’s, that’s pretty unexpected I think.

Yeah. For a lot of people, for sure. Um, what about the other property types? Yeah, so hotels also showed really healthy growth at plus 20.2%. Okay. Um, apartments saw more modest increase of 6.7%. Okay. Um, and then bringing up the rear was the industrial sector. Okay. With a very, very slight. Plus 0.5%. It’s a real mix there.

Yeah. Um, it seems like the story of struggling retail and office Yeah. Might be shifting. It might be, at least in terms of transaction activity. Yeah. Um, and industrial, which has been, uh, you know, such a strong performer. Right. Uh, you know, really didn’t grow that much, not so much in February. Yeah. Um, so that’s kind of a.

You know. Interesting. Yeah. It underscores the nuanced Yeah. Nature of the market. Yeah. You know, we can talk about broad trends in CRE, but the actual performance mm-hmm. Can be very different. Yeah. Depending on the specific type of property. Right. Okay. So we’ve looked at the volume of transactions. Yeah.

Let’s turn our attention to pricing, specifically cap rates. Okay. Uh, what did the report tell us about? Average cap rates in February, 2025. So the average cap rate for all CRE transactions in February was 6.53%. Okay. Um, and that’s a very, very slight increase. Yeah. Of three basis points compared to the previous month.

Okay. And remind us again what a basis point is. Yeah. So one basis point is one, 100th of a percentage point. Okay. So it’s a very small change. Tiny, tiny change. Yeah. Um, and what about the cap rates for assets that actually traded in February? Yeah. Broken down by those individual property sectors. Sure. So looking at the average cap rates specific for assets transacted in February.

Yeah. We see, um, office cap rates average 7.72% Okay. Which was an increase of 12 basis points month over month. Okay? Um, industrial cap rates came in at 6.15%, showing a tiny decrease of three basis points from January. Right? Uh, retail cap rates. Average 7.16% up by five basis points month over month. Okay. Um, apartment cap rates were at 5.3 B percent.

Okay. Reflecting a decrease of 10 basis points compared to the previous month. Okay. And finally, hotel cap rates averaged 8.44%. Okay. Which was an increase of 18 basis points month over month. Wow. So we’re seeing some movement in both directions here. Yeah, for sure. Um, you know, the increases in office and hotel Yeah.

Along with the decreases in apartment and industrial mm-hmm. Uh, seem to kind of reflect those, you know, differing levels of demand. Yeah, yeah. Risk in those markets. Yeah. And that jump in hotel cap rates is pretty notable. Yeah, it is. Yeah. And the slight increase in retail cap rates mm-hmm. Despite the strong transaction volume growth in that sector.

Yeah. Is another interesting thing to think about. Yeah, for sure. You know, it suggests that while more retail properties are trading Yep. Pricing might be adjusting a bit. Okay. And then on the other hand, the continued compression Yeah. In apartment cap rates mm-hmm. Could signal, you know, continued strong investor demand in that sector.

Okay. Great. Um, so to kinda summarize everything we’ve covered today, yeah. February, 2025 saw a big overall increase Yeah. In commercial real estate sales volume. It did. Um, but that was really driven by. Those entity deals. Yeah. When we look at just the transactions of individual assets, right. Uh, the growth was more.

Modest, but still positive. Yeah. Um, and I think what’s really fascinating is that the revisions of the data from previous months Yeah. Suggest that those positive trends might actually be even stronger. That’s than what was initially reported. It’s very possible. Um, and then we saw a real mix across the different property sectors.

Yeah, for sure. Uh, retail and office led the way. Yeah. In terms of that year over year transaction volume growth. Yeah. Which is a surprise to some. Yeah, I think so. Given, you know, the recent conversation around those sectors. Yeah, for sure. And then cap rates showed, you know, yeah. Some adjustments, varying adjustments across the different sectors.

Yeah. Which gives us kind of a glimpse into how investors are, right. Viewing those different property types. Exactly. Um. I guess, you know, taking all of this together and considering these trends. Yeah. Um, especially that narrowing bid ask spread, and the suggestion that interest rates might be less of a barrier than we thought.

Right. Um, what does this tell us about where the US commercial real estate market is headed? Yeah, that’s the big question. Yeah. Right. What should we all be thinking about? You know, this data, along with the insights from industry leaders makes you wonder, are we seeing a real shift? Yeah. In market sentiment and activity.

Yeah. You know, that increased willingness to transact, even with some adjustments in cap rates, right. Suggests that maybe there’s a rise in confidence. Okay. Um, but you know, you have to look beyond. Yeah. Just. Transaction volume and cap rates. Right. To really understand what’s going on. Mm-hmm. You have to look at like the underlying health of each sector.

Yeah. Things like occupancy rates. Okay. Rent growth. Mm-hmm. And the overall economic conditions Yeah. That are driving demand for different types of commercial space. Yeah. Um, you know, so. What other unexpected factors might emerge Yeah. In the coming months. Yeah. That could either boost or, you know, slow down this apparent increase in activity.

Right. That’s the big picture to keep in mind. Yeah. Some things to think about. Yeah. Awesome. Well thanks for, uh, walking us through all that. Yeah, of course. Really appreciate it. Happy to do it. And uh, yeah, we’ll be back next week with another deep dive. Sounds good.

 Welcome to the deep dive. Everyone we’re here with a fresh look at the commercial real estate market brought to you, of course, by Eureka business group. And we’re kicking things off with, well, some really exciting news, especially for those of you keeping an eye on retail in the DFW area. Of course, you’ve got it.

We’re really diving deep today into the CBRE 2025 global investor intention survey. It’s a March, 2025 report, and it’s really insightful, really gives us a valuable look at the global picture of where’s the money going. And commercial real estate that is. And for us here at Eureka Business Group, we love to use these global insights.

to really get a good grasp on what’s happening locally, right here in our DFW market, when it comes to opportunities and trends. You know, I completely agree. I mean, this survey is pretty comprehensive, right? They polled over 1, 400 investors all across the globe, the US, Europe, Asia Pacific, back in late 2024.

That’s a pretty broad view of what investors are thinking and feeling. And of course, that has major implications for what we can expect. Right here in Dallas Fort Worth. So today our goal is simple. We want to take all these global insights and boil them down to what matters most for you, if you’re looking at investing in DFW commercial real estate, with a special lens, of course, on the retail sector.

Sounds good to be. So let’s start big picture, big picture stuff. What’s the overall sentiment? Well, across the board, the US, Europe, Asia Pacific, we see a clear majority, clear majority of investors planning to at least maintain, if not increase. The real estate acquisitions going into 2025 compared to last year.

Now, what does that tell us? It tells us there’s this underlying confidence globally in real estate as an asset class. Yeah. I mean, that’s a pretty strong endorsement, wouldn’t you say? And you know, the report does point out that there has been a little bit of an increase in caution among us and European investors since they took the survey probably has something to do with.

Expectations around interest rate cuts, maybe not as many people were hoping for, but it’s super important to remember that capital is still flowing into U. S. real estate. We’re seeing it. CBRE is seeing it. More bidder activity. You know, it’s something we’re definitely observing here in DFW. It’s happening.

Absolutely. And if we, if we turn our attention to Asia Pacific, we see an even rosier outlook. Investors there are pretty convinced that interest rates have peaked. And they’re, they’re ready to jump back in, ready to deploy capital after things were a little slower. And, and you know what, Japan, Japan is a really interesting case.

The report highlights how they’re actually anticipating. Rising rents, even though monetary policy is still pretty tight. So what does that tell us? Strong demand. Very strong underlying demand for real estate in Japan. I love how these regional nuances come into play. It’s fascinating. But let’s, let’s shift gears a bit.

Talk about what’s driving these investment decisions. The survey reveals some interesting regional differences. For instance, U. S. and European investors, their top reason for upping their capital allocation is favorable pricing. So how does this actually play out, especially for someone looking at acquisitions here in Dallas Fort Worth?

Well, in the DFW market, that phrase, favorable pricing, often boils down to cap rates, black rates or capitalization rates, shifting and certain, retail subsectors. This metric essentially tells us. About the potential return on an investment and what we’ve observed is these rates going up in some pockets of the market meaning Acquisition prices are looking more appealing compared to the income those properties are bringing in so for investors Looking for specific yields in our local retail market.

Well, this creates some pretty compelling opportunities It’s all about understanding those local dynamics and that’s what makes this so valuable now Asia Pacific. What’s fueling their investment engine? Well, for them, the big driver is expectations around lower debt costs, which of course ties into the idea of interest rates easing in that region.

But across the board, across all regions, we see stabilizing, maybe even decreasing interest rates and improved expected total returns. These are the factors really motivating investors to, well, to keep their eyes on commercial real estate. Yeah. And these economic indicators certainly suggest that it might just be the right time.

To think about strategic investments, don’t you think? I’d agree with that. Okay, so let’s dig into preferred investment strategies now. The report, it clearly shows a strong preference for value add across all three regions. Now, for some of our listeners, they might not be as familiar with this term. So can you unpack it a bit?

What does value add actually mean? And why is it so hot right now, especially in the DFW retail world? Sure, happy to. So think of it this way, value add. It’s all about finding properties that aren’t living up to their full potential. Maybe they’ve got management issues. Maybe the design is outdated. Maybe the tenant mix just isn’t right.

Whatever the reason, you see an opportunity to step in. Make some strategic improvements. Change things up operationally. And boost the value, boost the returns. Now in the DFW retail scene, this could mean buying a shopping center, great location, but it needs some love. Maybe modernize it, bring in some fresh tenants that really resonate with the local community.

Or even, you know, reconfigure the space to create something new, something experiential, or cater to those service based businesses that are in high demand. And the current climate, well, with prices adjusting, it makes these value add projects. Really, really appealing. The potential for returns is strong.

So essentially, an investor here in DFW might come across a shopping center. High vacancy rate, but it’s in a growing suburb. They see that potential, invest in renovations, attract a big anchor tenant, and boom, the whole property is revitalized. Value skyrockets. That’s the idea. It’s happening all over DFW.

Strategic repositioning. Now, the report also highlights Core Plus As, a popular strategy. In the DFW retail context, think of Core Plus As, taking a stable shopping center. Good location. And then, you make some tweaks, maybe a few upgrades. Attract a couple of key tenants, just to give it a little boost, in terms of income and appeal.

You know, it’s pretty remarkable that even with the, you know, the perceived risk being a bit higher in Europe, Value added still king really shows you that active management, it’s a powerful tool for driving returns and the fact that Asia Pacific investors, they’re also looking at core and core plus after the price corrections.

It just reinforces the idea that real estate fundamentals are solid. Yeah, there’s this underlying belief that well located properties, they’ll, they’ll continue to appreciate. So let’s talk sectors, preferred investment sectors. This is where it gets really interesting, especially for our DFW retail folks.

Yeah, absolutely. This is the juicy stuff. Now, globally, multifamily and industrial and logistics are leading the pack, that we get it, right? Demographics, housing affordability, e commerce, it’s all playing a role. But what about retail? How does retail fit into this picture, especially for U. S. investors? Well, this is a big one.

A big takeaway for anyone interested in the DFW market, the CBRE report, it specifically points out an uptick, a noticeable uptick in us investor interest in retail assets. And this, this surge in interest is directly tied to. Increased leasing activity that CBRE has been seeing. So for us here in Dallas, Fort Worth, this is a major positive signal.

It tells us that confidence in the retail sector is coming back. Tenants are actively looking for space and they’re signing leases. I mean, that is. Fantastic news for the DFW retail market, increased leasing activity. It means businesses want to be here. They want to set up shop. They want to grow. And that translates into more investment opportunities, potentially higher property values.

It’s a good sign. And, you know, the report also mentions an uptick in us investor interest in office properties. Yeah, they did. However, you know, office it’s a bit more complicated, it’s more nuanced. It really depends as a specific market. And the class of property you’re looking at. True. It’s something we’re keeping a close eye on here at Eureka Business Group and DFW.

Yeah, makes sense. Now for Europe, residential. Residential is actually the top dog now. It’s overtaken industrial and logistics, reflecting their own unique market dynamics. And in Asia Pacific, well, industrial logistics still reign supreme. But there’s a growing appetite for multifamily. It’s on the rise.

So we see these global preferences and they give us this broader context. But for our listeners here in DFW, the key takeaway is this. The U. S. market, and potentially our local area, is witnessing a resurgence of interest in retail from investors. So let’s talk about some of the differences, the divergent views that the report highlighted, especially when it comes to the office sector.

Yeah, there’s a definite contrast in how investors are viewing office. You know, U. S. investors are a bit less enthusiastic compared to their counterparts in Europe and Asia Pacific, and this likely stems from those high office vacancy rates that we’ve been seeing. Yeah. It’s definitely a trend we’re tracking closely here in DFW.

Makes sense. Now, European investors, when they are considering office, they’re laser focused, on prime. High quality properties, it’s all about quality over quantity, it seems. And in Asia Pacific, well, even though some areas have high vacancy, investment in office It’s actually picking up. Why? Well, a few factors are at play.

More people returning to the office, steady leasing demand in certain segments, and some price adjustments. Really highlights how crucial it is to understand those local market nuances, even when we’re analyzing global trends, right? Now, let’s touch on alternatives, alternative investments. The report had some interesting insights there.

It did. And what’s interesting is there wasn’t this clear consensus on the most sought after alternative sectors. It really varied by region. U. S. investors, they’re still showing love for niche areas like self storage and industrial outdoor storage, which weren’t really top picks elsewhere. What’s even more interesting is over half Over half of U.

S. investors said, nope, not interested in alternatives this year. So maybe there’s this refocusing happening back to the core asset classes, like you guessed it, retail. It’s a really intriguing point. Maybe a shift back to the familiar, the core sectors in the U. S., so Europe and Asia Pacific. What about their alternative preferences?

Well, European investors, they’re really into data centers. No AI boom happening. And also student living. Makes sense. And Asia Pacific, similar story, data centers are hot and health care related assets are getting a lot of attention, reflecting the growth of the digital economy and demographic shifts in those regions.

So diverse landscape for alternative investments, but with a potential refocus on core sectors. Like retail in the U. S. So let’s talk rivers and challenges. What are investors keeping an eye on? What are they worried about? Well, for U. S. investors, the big elephant in the room is interest rates. Long term interest rates.

They’re high. They’re volatile. And that creates a lot of uncertainty, especially when it comes to financing commercial real estate deals. Definitely something we’re monitoring closely here at Eureka Business Group. Financing is a critical part of the equation. So Europe and Asia Pacific, what are their main concerns?

They’re more worried about geopolitical risks. Understandably so. Given what’s happening in the world, but the report also it mentioned some other potential challenges things that could impact investment activity across all regions like mismatches in pricing expectations between buyers and sellers Operating expenses are going up labor and construction costs are rising and then there’s that lingering uncertainty About interest rates and the possibility of an economic slowdown A lot to think about for anyone’s considering an investment.

So let’s tie it all together. What’s the overall market outlook according to CBRE? And what does it all mean for our DFW retail market? Well, CBRE, they’re predicting a continued recovery for U. S. investment sales volume in 2025. They’re projecting an 8 percent increase, and they emphasize that it’s the strong U.

S. economy, especially job growth. That’s driving these positive real estate fundamentals. And this is particularly relevant for DFW. Our economy is robust. It’s attracting businesses. It’s attracting people. No doubt about it. DFW’s economic and job growth has been a huge factor in the success of our commercial real estate market.

Exactly. Now the report also forecasts growth in investment activity in Europe. They’re looking at 15, 20 percent and Asia Pacific. So it’s important to keep that global context in mind. And I love this quote from Kevin Ossoff. He’s the America’s president of investment properties at CBRE. He said capital continues to gravitate towards real estate investment in the U.

S. Despite higher for longer interest rates, we see signs of a healthy economy, supporting improved real estate fundamentals with more bidder activity every month. So even with the interest rate concerns. There’s this positive momentum. Yeah, I mean, that quote really sums it up. It’s encouraging. And what about those value add strategies?

How do they tie into the DFW retail landscape? What are the opportunities there? Well, it tells me that there’s going to be this continued interest in acquiring and redeveloping retail spaces here in DFW. It’s about meeting the needs and preferences of today’s consumers. Investors will be looking for properties where they can make strategic improvements, reposition them and unlock that hidden value.

Right. And let’s not forget that key finding from the report, the uptick in investor interest, specifically in U. S. retail, fueled by that increased leasing activity. I mean, that’s a pretty clear positive sign for the DFW retail market, wouldn’t we say? Absolutely. I’d say so. When we look at these global trends and combine them with the U.

S. specific data, it paints a very optimistic picture for strategic investment in DFW commercial real estate. You know, it’s amazing how these global trends connect to our local market. So, let’s recap. We took a deep dive into this CBRE report. And despite some caution, due to those interest rate uncertainties, the overall sentiment among global investors that it’s commercial real estate is largely positive.

And for our listeners, here in Dallas Fort Worth, the key takeaway is this, there’s a renewed interest in the U. S. retail sector. And that has a direct impact on our local market. Positive impact. Yeah, I think that’s a great summary. The current environment, it really does present some unique benefits for those looking to invest in commercial real estate.

Especially when you consider the potential for more favorable pricing on acquisitions, the attractive opportunities that come with those value add strategies, and that encouraging uptick. In leasing activity, in the retail sector, it’s all pointing in the right direction. And that’s where Eureka Business Group comes in.

We’re here to help you navigate the Dallas Fort Worth commercial real estate market with our specialized focus on retail. So if you’re ready to explore these opportunities and leverage our expertise, don’t hesitate to reach out. We’d love to hear from you. You know, based on, I think we’ve discussed today, these global investor trends, the resurgence of interest in U.

S. retail, I really believe. That the Dallas Fort Worth commercial real estate market, especially the retail segment, it holds tremendous potential for those who are ready to make strategic investments. It’s an exciting time to be in DFW real estate. So here’s a final thought for you. As you go about your day, consider this with global investors signaling continued activity and the U.

S. retail sector regaining strength. What unique opportunities might be emerging right now within the Dallas Fort Worth landscape? For those who are ready to seize the moment, that’s something to ponder. And with that, thank you for joining us for this commercial real estate briefing. Brought to you by Eureka Business Group.

 Welcome back everyone to another deep dive into commercial real estate news. Yeah, yeah. Curated, especially for our retail investors here in the DFW market. And as always, we’re brought to you by Eureka Business Group, DFWs Retail CRE Specialists. So let’s jump right into it. Um, you know, recent articles and research are painting a pretty vibrant picture for retail and DFW.

Yeah. You know, it’s interesting to see DFW kind of buck some of those national trends. You know, while some areas are seeing a bit of a slowdown, DFW multifamily sales actually picked up steam in late 2024, even exceeding the previous year’s numbers according to CoStar data. That’s right. And you know, this strength is really concentrated in areas like East Dallas, Arlington and the Uptown Park Cities area.

Yeah. And for retail investors, this is great news because more multifamily development equals more rooftops. Right. And more rooftops equals more potential customers for those retail businesses. Exactly. And you can really see this connection playing out in the construction pipeline. Yeah. The Coaster data shows that suburban retail construction is really leading the way in DFW.

You know, since the last recession. Retail construction has been steadily increasing, and these new developments are really strategically placed, you know, to serve these growing communities with a mix of kind of essential and convenient and even experiential retail options. Speaking of thriving communities, let’s head north of Dallas to Collin County.

Yeah. It’s really become a retail powerhouse and is projected to be one of the fastest growing counties in the nation in 2025. Yeah, Collin County is really interesting. You know, it’s this blend of economic opportunity and a high quality of life, right? And it’s really attracting people to areas like Plano and Frisco.

Um, and, you know, some are even calling it DFFW, uh, recognizing those suburban areas as really significant economic hubs now. And this growth isn’t just about attracting residents. It’s about attracting major employers too. Exactly. For example, Siemens recently invested 1 billion in a manufacturing facility in Fort Worth.

Wow. A project that’s expected to create 480 new jobs. That’s a great example of how a robust local economy really fuels that retail sector. So those 480 new jobs potentially mean 480 families needing goods and services. Right. Increasing demand for retail spaces and making Collin County an attractive area for retail investment.

But location is only one piece of the puzzle, right? Strategic investment is just as crucial in today’s, you know, dynamic market. Oh, absolutely. So let’s take a look at Blackstone. Okay. They’re one of the world’s largest real estate investors. Yeah. In a recent interview, Ken Kaplan Blackstone’s head of real estate really emphasized the strength of grocery anchored neighborhood retail centers.

It’s interesting why Blackstone is attracted to those centers. Right. Kaplan pointed out that people consistently need groceries. You know, regardless of the economic conditions. Yeah. It’s a fundamental need that provides a stable income stream for investors. Yeah. Especially appealing in today’s kind of uncertain economic climate.

Right. And Blackstone isn’t just talking the talk. Their walk in the walk, they acquired over $4.3 billion in grocery anchored centers. Wow. Demonstrating their strong belief in that sector. In a market like DFW with its robust population growth. Yeah. This focus on grocery anchored retail becomes particularly attractive for investors seeking stable long-term returns.

That’s a great point. You know, it’s not just about jumping on. The latest trend, it’s about understanding those underlying fundamentals that drive value in a market like DFW. But Blackstone isn’t just sticking to traditional retail models either. They’re embracing what we call experiential retail, which focuses on creating destinations that offer more than just products.

Yeah, this is where things get really interesting. Right. Experiential retail is about, you know, creating an experience. Yeah. A place where people want to spend time, not just their money. Right. Dining entertainment, immersive experiences, all rolled into one. Yeah. A great example of this is Level 99, a massive entertainment center developed by Blackstone in West Hartford, Connecticut.

That’s interesting. It’s a 50, 000 square foot complex with everything from dining and gaming to immersive art installations. Wow, I’m fascinated by how Blackstone is adapting to these changing consumer preferences. Right. You know, they’re moving beyond those traditional retail spaces and creating these dynamic and engaging environments to attract a wider audience.

Exactly. This is such a crucial strategy for success in today’s evolving retail market, and it’s something investors in DFW should be paying attention to. So what does this mean for our DFW retail investors? Well, There’s a real opportunity to incorporate these experiential elements into their retail spaces.

Right. To attract and retain customers. Absolutely. But it’s not just about replicating what’s being done elsewhere. It’s about understanding the unique needs and desires of that local DFW community. Right. It’s about creating experiences that resonate with DFW residents making them want to come out and spend time.

Yeah. Ultimately driving foot traffic and sales for those retail businesses. Exactly. This attention to local nuances is what sets successful investors apart. For sure. And let’s take a quick look at some national trends that might be on your mind. Okay. First up, inflation. Yeah. The latest report from the Labor Department is encouraging U.

S. annual inflation edged lower in February to 2. 8 percent. Okay. Down from 3 percent in January. So this moderation is primarily due to easing energy prices. Right. However, it’s worth noting that shelter costs, which include rent, are still a significant factor accounting for roughly half of the overall inflation rate.

That’s right. And while there’s no immediate recession on the horizon, many analysts are predicting a slowdown later this year. Right. And this potential slowdown is mainly attributed to ongoing trade tensions between the United States, Canada, and Europe. Right. This situation is definitely worth watching.

Yeah. On one side, we have President Trump’s negotiation strategy of imposing tariffs on various goods. Right. And on the other, Canada and Europe are retaliating with their own tariffs. This back and forth is creating uncertainty in the market. Makes sense. If these trade disputes continue to escalate, we could see a more substantial economic downturn than initially anticipated.

Right. However, it’s important to remember that DFW has a history of resilience, and has often outperformed national trends during economic downturns. Absolutely. DFW’s diversified economy. You know, it has strong job growth and robust population growth, and those all help to kind of mitigate the impact of those national and global economic fluctuations, and that underlying strength makes DFW a much more attractive market for investors compared to other areas that might be more susceptible to those fluctuations.

Let’s shift gears now and talk about office real estate. Okay. The office sector has been a hot topic with many wondering if the shift to remote work is here to stay. Right. Recent data from Coast Guard shows that office attendance has actually reached a post pandemic high. Interesting. U. S. office attendance for 10 large cities Average 54.

5 percent of pre pandemic levels for the week ending March 5th. So this recent peak comes as large companies are ramping up those in office work requirements and scaling back on those remote and hybrid arrangements. Exactly. So what does this mean for DFW? Well. It suggests that the office market is far from dead.

Right. Companies still see value in having employees work together in person. Right. At least part of the week. Yeah. And this return to the office has positive implications for that surrounding retail environment. Right. More people working in offices translates to increased demand for lunchtime eateries, coffee shops, and other retail services.

That catered to that office crowd. Let’s look at some specific examples of how this is playing out in DFW. Okay. K L N orthodontics. Okay. A digital technology firm specializing in orthodontic innovations is moving its growing North Texas headquarters to an office building in Richardson, Texas. Okay.

They’re leasing 24, 850 square feet at 1703 North Plano road. Wow. And plan to invest almost two million dollars in tenant improvements. That’s a big investment. This move is expected to create over a hundred new jobs over the next five years. That’s great. And here’s an exciting twist. The city of Richardson is offering KLON a hundred thousand dollar grant in exchange for their investment of at least 1.

4 million dollars in its new office in the innovation quarter. That’s a great example of how local governments are actively working to attract if nesses and stimulate economic growth. Yeah. Which ultimately benefits the entire DFW region, including that retail sector. Another interesting development in the DFW office market is Care.

com relocating its Texas headquarters from Austin to Dallas. Oh wow. They’ll occupy 14, 000 square feet at One West Village, an 18 story office tower at 2801 North Central Expressway. This move is significant because Dallas Fort Worth ranked number three in North America for high tech job growth between 2022 and 2023, according to CBRE.

Right. This influx of tech talent is a positive sign for the DFW economy. Yeah. And could create new opportunities for retail businesses that cater to this demographic. Absolutely. Care. com’s decision to relocate to Dallas really highlights the city’s growing reputation as a hub for tech talent and innovation.

And it’s not just tech companies making moves. Telecom companies are also expanding their footprint in DFW. Oh, interesting. 46 Labs, a telecom and connectivity company, is expanding its presence in downtown Dallas. Okay. They’re taking over part of an office previously occupied by Sam’s Club at Factory 603 on Munger Avenue.

This move will more than double 46 Labs footprint, demonstrating their commitment to growth and innovation. In the DFW market, what’s interesting about this is that 46 labs is relocating from a smaller space in the historic market street building. Also in Dallas is West End, right? This area is a turn of the century warehouse district that’s experienced a revival recently becoming a hub for technology and innovation.

Yeah, 46 labs decision to stay in the West End. Right? End shows the area’s appeal as a vibrant and creative district that’s attractive to businesses. Right. This continued investment in the West End further solidifies its position as a key area within the DFW market. And let’s not forget about the industrial sector’s connection to the broader economy and its potential influence on retail trends.

Right. Ambrose, the industrial developer we mentioned earlier, is investing significantly in Build to Suit. Properties for Amazon. Yeah, and this has a local connection. Siemens recently opened 190 million electrical equipment manufacturing facility in Fort Worth. This state of the art facility located at 7200 Harris Legacy Drive will produce electrical equipment for data centers, a rapidly growing sector.

Interesting. This project is expected to add about 480 new jobs to the Fort Worth area. That’s huge. You know, this kind of industrial growth can have a spillover effect, stimulating demand for related services and consumer goods, ultimately benefiting the retail sector. So we’ve covered a lot of ground here, from local developments to national trends.

It’s clear the DFW retail market is dynamic and full of opportunities. But to help you navigate this landscape, let’s dive deeper into some specific insights from industry experts. That’s good. We’ll be back after a quick break. All right, we are diving back into DFW retail real estate, uh, with, you know, expert advice straight from the source.

Blackstone again, right? I mean, their moves are definitely catching everyone’s attention. Exactly. I had the chance to chat with Ken Kaplan, Blackstone’s head of real estate, uh, to get some insights into their strategy. Oh, nice. You know, it’s fascinating how a global player like Blackstone, approaches retail in this, you know, ever changing market.

Yeah. Let’s start with the basics. You know, what is driving Blackstone and other major players to be so bullish on these grocery anchored retail centers? Well, Kaplan was very clear about this. You know, he believes that the grocery anchored retail asset class is highly sought after by institutional investors like Blackstone.

Okay. And we’ve seen this play out, you know, through their recent acquisition of ROIC. Right. He attributes this to several factors. Uh, you know, people frequent grocery stores, regardless of the economic climate. They prefer to spend cash in their neighborhoods. Yeah. Uh, shopping centers are reasonably priced.

Makes sense. And the supply demand dynamics are favorable. So Blackstone sees these centers as, you know, stable investments, even during times of economic uncertainty. Yeah. He went on to say that these centers have been a solid investment for them since 1983, and that the yields during, you know, challenging economic periods, like a pandemic or high inflation.

Right. Make them particularly attractive because of their recession resistant nature. That makes a lot of sense. You know, it highlights that enduring appeal of gross re anchored centers. Right. They provide those essential goods and services, which is a key factor in their resilience. And Kaplan also emphasized the importance of strong relationships in this sector.

Yeah. And he pointed out that many individual owners prefer to hold their assets for extended periods. Right. Uh, making the sector fragmented and resulting in a limited supply of high quality product for those institutional investors. So Blackstone sees this fragmentation as an opportunity. Yes. They can leverage their expertise and network to acquire.

You know, those prime properties that might not be accessible to smaller investors. Precisely, and their track record speaks volumes. You know, they’ve transacted over 4. 3 billion dollars in grocery anchored centers. Wow. And show no signs of slowing down. Right. But with the rise of e commerce and the growing demand for experiences, how is Blackstone adapting?

Well, they’re embracing this concept of, you know, experiential retail. Right. Aiming to create those vibrant and engaging spaces that offer more than just goods. A prime example is Level 99. Yeah. The entertainment center they developed in West Hartford, Connecticut. Right. Kaplan highlighted their strategy, saying that dynamic experiential retail is key to creating thriving communities.

They stay ahead of trends, shaping how we live, work, and play, and bring in tenants who curate those captivating experiences. Okay. From food and beverage to recreational and educational activities. So it’s about crafting those destinations that draw people in, offering them something unique and memorable.

Exactly. Level 99 embodies this perfectly. It’s a sprawling 50, 000 square foot complex offering dining, gaming, immersive experiences. Wow. They even have competitive axe throwing and a speakeasy style restaurant. It’s a far cry from the traditional shopping mall, you know? Right. Blackstone is redefining the retail landscape by catering to a generation that values experiences connection and authenticity.

They’re shifting the focus from simply buying things to creating lasting memories. That raises a crucial question for DFW investors, you know? Yeah. How can they integrate these experiential elements into their own retail spaces? Well, it begins with understanding the needs and desires of That local community.

Yeah. What kind of experiences would resonate with them? Right. What would entice them to spend time in a particular space? It requires thinking outside the box and being willing to experiment. Yeah. Kaplan stressed the importance of focusing on, you know, the unique dynamics of each neighborhood and building spaces that foster a sense of community.

It’s a fascinating and evolving approach to retail. It’ll be interesting to see how these trends shape the DFW landscape in the years to come. Absolutely. Now let’s turn our attention to another trend, making waves. Uh, the rise of mini pharmacies. Mini pharmacies, that’s interesting. Yeah, CVS Health is planning to open 12 mini stores across the U.

S. These will be about half the size of a typical CVS. Okay. Focusing primarily on medication. So it seems like they’re responding to that growing demand for accessible and affordable healthcare options. Right. While also trying to compete with online giants like Amazon who are venturing into that pharmacy market.

These mini pharmacies will offer a curated selection of over the counter medications, first aid products, snacks, cosmetics, and a full service pharmacy. Interesting. The 2024 with some even located inside Target stores. This strategy could be a game changer for the pharmacy industry and could impact retail real estate as well.

Definitely. Now before we wrap up, I want to touch on property taxes. Okay. Specifically, a potential loophole in Texas that’s allowing some developers to secure substantial tax breaks. This sounds intriguing. Tell me more about it. It appears some developers are exploiting a legal provision that lets them convert market rate properties into affordable housing.

Right. In exchange for property tax exemptions. Interesting. State lawmakers have taken notice and are now considering legislation to address this practice. Okay. While these tax breaks aim to encourage affordable housing development, critics argue that they’re being misused by developers seeking to reduce their tax burden.

Without truly providing affordable housing options. It’s a complex issue with significant implications for both the real estate market and the availability of affordable housing in Texas. Absolutely. Its topic, we’ll continue to monitor closely now. Let’s wrap up our deep dive with key takeaways and a thought provoking question for you to consider.

Okay, so we’re back and ready to kind of distill some key takeaways from our deep dive into the DFW retail real estate market. Yeah, let’s recap, you know, what we’ve uncovered today. First and foremost, the DFW retail sector remains strong, despite some of those national economic uncertainties. You know, this strength is particularly evident in the suburban areas experiencing that rapid population growth, right?

DSW’s diverse economy and strong fundamentals make it a very attractive market for those retail investors. Yeah, we saw this firsthand in Collin County, which is projected to be one of the fastest growing counties in the nation in 2025. Yeah. This growth is fueling demand for all types of retail. From grocery anchored centers to those offering those unique experiences.

Right. And speaking of experiential retail, we learned from Blackstone that creating those engaging experiences that resonate with today’s consumers is key. Yeah, Blackstone’s success with gross re anchored centers and innovative developments like Level 99 offers valuable lessons for investors in DFW who are looking to adapt to this changing retail landscape.

For sure. You know, we also discussed how strong job growth driven by companies like Siemens and Ambrose can create that ripple effect that boosts the local economy and increases demand for those retail spaces. And while national trends like inflation and trade tensions require careful monitoring DFW’s diverse economy and strong demographics, position it well to navigate those potential challenges.

Absolutely. A boffice market is also showing signs of recovery with companies like KLOM on orthodontics and care. com expanding their presence in DFW, you know? Yeah. This kind of reaffirms the region’s appeal as a hub for talent. and innovation. Even the car wash industry, which is currently experiencing a slowdown, offers those valuable insights into the importance of conducting that thorough market analysis and due diligence.

So what’s the key takeaway for our listeners today? Well despite those national economic anxieties, the DFW retail market is thriving, especially in those suburban areas, experiencing that rapid population growth. Collin County, north of Dallas, stands out as a particularly attractive area for retail investment with its robust DFFW communities.

And investors should consider those benefits of investing in DFW retail, especially in light of Blackstone’s strategy of focusing on grocery anchored centers and incorporating those experiential elements into their developments. If DFW retail real estate, Eureka Business Group is here to help our team of experts can guide you through the complexities of the market.

And help you identify those promising investments that align with your goals. We’re passionate about DFW retail, and we’re confident that this market has a bright future. So if you’re ready to take the plunge, reach out to Eureka Business Group. We’d love to connect with you and discuss how we can help you achieve your investment goals until next time.

 Welcome to the deep dive. We’re diving into the latest developments in the Dallas Fort Worth commercial real estate market brought to you by Eureka business group. Of course, the DFW retail specialists. We have a really interesting mix today. Some national trends and some hyper local. DFW developments, focusing on retail real estate in our area.

Really going to be zeroing in on what’s most relevant and I think most intriguing for anyone interested in retail real estate. All right. So let’s jump right in. Sounds good. Let’s take a look at some specific news items first, and then we can analyze what they mean. You know, for the retail landscape, both now and in the long term.

All right. Let’s start with some exciting news for downtown Dallas. The Dallas Wings are moving to the Kay Bailey Hutchison Convention Center this year. This year. Yep. That’s a 15 year agreement, actually. Wow. A great sign for the revitalization of downtown. I mean, that’s just a huge vote of confidence for downtown.

That’s really perfect timing, too, because the 2026 FIFA World Cup, right? Yep. is expected to bring a huge influx of visitors. Yeah. And investment. Yeah. To the DFW area. Exactly. It’s putting our region on the map. Yeah. You know, as a global destination. I think it’s going to create a ton of opportunities for new businesses and just a more vibrant consumer market.

Which is great for retail. Fantastic for retail. Yeah. So, Eureka Business Group. Right. We can help you navigate these exciting opportunities. And develop future proof strategies. Absolutely. To capitalize on this growth. That’s our bread and butter. All right. Let’s move on to another positive development.

Okay. For DFW retail. Sally Beauty. Oh! I saw that one. A Fortune 1000 company, by the way, is relocating its headquarters from Denton to Legacy West in Plano. This move really highlights the growing appeal of Plano as a business friendly environment with a highly skilled talent pool. It really does. And you know, Plano’s been attracting a lot of big companies lately.

Like KFC also recently moved its headquarters there. Interesting. So these corporate relocations, they bring A substantial workforce, right? Absolutely. Boosting the local economy. Driving demand. Yeah. For retail services. For sure. It means Plano is a really strong retail market right now, attracting businesses.

Yeah. And consumers. Right. So, Eureka, Business Group, we have, you know, we have the local market knowledge. Yeah. To help investors, you know, find the best locations in Plano. So now let’s shift gears a little bit. Let’s look at some broader Retail sector trends. One interesting development is the continued growth of off price retailers.

Ross, for instance, is planning to open like 90 new stores this year. Yeah, it’s really a reflection of where retail is at, you know, post pandemic. Consumers are looking for value, right? With, I mean, inflation, you know, and the economy. Off price retailers are really well positioned to take advantage of that to meet that demand.

But while some retailers are thriving, others are facing some challenges. We’ve seen reports that international brands like Mango and Uniqlo are struggling to gain traction in the U. S. market. It just goes to show you how important it is to really understand. Those local consumer preferences, you know, and trends, what works in one market doesn’t always work in another.

Yeah. So success in retail really hinges on tailoring your offerings to the specific needs and desires of your target audience. 100%. Which again is where Eureka Business Group comes in. Yeah. You know, we have a deep understanding of the DFW market. Absolutely. Can help retailers succeed in this. ever changing environment.

That’s what we do. All right, now let’s take a look at the office market in DFW. You know, we’re seeing an uptick in office construction in the Dallas Metroplex. Interesting. Which is notable because it’s actually going against the national trend. Office development is declining nationally. Why is that?

What’s going on here? I think part of it is companies are returning to the office. Ah. At least to some degree. Right. And they need updated modern workspaces. I mean, to attract and retain talent. Yeah, makes sense. Yeah, they’re looking for spaces that foster, you know, collaboration, innovation, employee well being.

Right. Exactly. This presents a great opportunity though for investors to secure prime office spaces in a growing market. For sure. For sure. And you know, Eureka Business Group, we can help with these investments, you know, leveraging our expertise in the DFW office market. Now, um, let’s turn our attention to Frisco.

Okay, which is really emerging as kind of a hub for tech startups these days. Yeah, Frisco the Frisco Economic Development Corporation Yeah, they’re actively attracting these startups, right? They’re recognizing their potential for innovation job growth Economic expansion smart move on their part. I mean tech startups, you know, they often attract a younger demographic right with disposable income and You know, that’s always a good thing for the retail sector.

Yeah, absolutely. So this focus on attracting these tech startups, this combined with the talented workforce and the business friendly environment, it makes Frisco. Pretty attractive. Super attractive. Yeah. For, for all kinds of businesses. Yeah. And it’s, it’s creating this positive feedback loop, you know.

Yeah. That benefits everybody. Absolutely. And it’s not just Frisco, right? No. It’s the entire DFW Metroplex. The whole Metroplex. Experiencing this growth in the tech and manufacturing sectors. Yup. And a prime example of that is Siemens. They decided to build a new manufacturing facility. Oh, wow. In Fort Worth.

Yeah. 190 million dollar investment, creating 800 new jobs. I mean, that just strengthens the region’s manufacturing, you know, prowess. Yeah. And we can’t forget about the ripple effect that this has on retail. Oh, for sure. Huge ripple effect. More jobs mean more people. More disposable income. Right. Which, ultimately It all, it all trickles down.

And DFW is really strategically positioned to capitalize on this growth trajectory. Speaking of understanding those local consumer preferences. We’ve seen some interesting national retail trends. Yeah. That highlight this importance, you know, of knowing your market. It all comes back to that. The retail landscape’s always evolving.

Yeah. And, and what works in one area, you know. It might not work in another. Yeah. For instance, we talked about the success of off price retailers, like Ross, right? Yeah. They’re expanding aggressively. On the other hand, some international brands, they’re struggling to gain traction here in the U. S. They are.

Yeah, CNBC reported that, um, Mango and Uniqlo, both, you know, well known international retailers, but they’ve really found the U. S. market to be A bit more challenging than they anticipated. Than they anticipated, yeah. So this underscores the need to adapt. For sure. To those local tastes, to those buying habits.

Yeah. And it really reinforces the need to partner with experts, you know. Right, yeah. People who understand the nuances of the local market. Yeah. I mean, Eureka Business Group, you know, we have deep roots here in DFW. We can help investors identify. You know, the most promising locations, the trends that align with consumer demand.

So it’s not just about square footage or, you know, right. It’s about understanding the dynamics of the DFW retail scene while we’re on the topic of dynamic markets. We can’t ignore. What’s been happening with office spaces. Oh yeah, the office sector has seen some, some big changes. It’s important to, to stay informed, you know, about the trends.

The Society of Industrial and Office Realtors, S I O R, they offer some great insight. They do, they do, yeah, and they highlight a really fascinating trend. Okay. Which is that Companies are moving away from those traditional office layouts and they’re embracing, you know, more flexible and collaborative work environment.

All that adapting. Adapting, yeah. The changing needs of the workforce. A hundred percent. So we’re seeing a shift towards spaces that promote employee well being. Creativity. Sense of community. Exactly. You know, modern office spaces are incorporating things like open floor plans, communal areas, you know, natural light, all these things that enhance the employee experience and hopefully, you know, foster productivity.

So this has significant implications for investors who are looking at office spaces in DFW. Absolutely. It’s, it’s no longer just about, you know, securing a space. It’s about investing in an environment. That aligns with right what today’s workforce wants, right? That makes total sense. So as the DFW area continues to grow, right?

The need for these updated, attractive office cases is only going to increase. It’s only going to increase. Yeah. And that creates opportunities for investors. You know, the ones who are willing to adapt. Embrace the evolving demands of the modern workplace. Well, that’s a perfect segue to another area that’s attracting a lot of attention.

Frisco’s tech scene. Frisco’s doing a great job with that. They’re really cultivating a thriving tech ecosystem. And it’s, it’s working. Yeah. From what I’ve seen in local profile. Yeah. The Frisco Economic Development Corporation is doing a fantastic job. Mm hmm of attracting these startups and it’s generating a lot of buzz.

Yeah, it’s smart tech startups You know, they bring they bring innovation. They bring job growth. They bring a younger demographic, right and that supports retail Absolutely, which drives economic expansion, and Frisco has a lot to offer, including a talented workforce and a business friendly environment.

All those factors are like magnets, you know, for businesses of all sizes. And it’s creating that positive feedback loop, you know, we talked about earlier, benefits the entire community. Yeah, and it’s not just Frisco. Again, it’s the entire DFW Metroplex experiencing this growth. Mm. In, you know, in tech, in manufacturing.

Right. I mean, Siemens deciding to build that new manufacturing facility in Fort Worth. Yeah. That’s a perfect example. 190 million investment, creating 800 new jobs. That’s, you know, that’s huge for the region. Strengthening that. Manufacturing prowess. Yeah. And again, we can’t forget the ripple effect. Huge ripple effect.

This has on retail. For sure. More jobs. More people with, you know, disposable income. Yeah. Ultimately boosts the retail sector. It’s all interconnected. Yeah. And DFW is well positioned to take advantage of this. All this news is making me even more excited. Yeah. About the future of DFW real estate. I mean, it’s a vibrant, dynamic market.

So much potential. It’s a great time to be involved in DFW real estate and understanding these trends, you know, that we’ve talked about today. Yeah. Can help you make. Smarter decisions. Absolutely. Now, we’ve covered a lot of ground today, from, you know, those exciting developments in downtown Dallas, to the rise of Frisco as a tech hub, you know, we’ve seen how national retail trends are playing out locally, how the growth in tech and manufacturing is really fueling the DFW economy.

And we can’t forget the World Cup, you know. Oh yeah, absolutely. The 2026. The 2026 World Cup coming up. Yeah, that’s going to, that’s going to boost DFW’s profile. Huge. Even more. It’s an exciting time. It is. To be invested. It is. In the Dallas Fort Worth real estate market. Absolutely. It is an exciting time.

As we wrap up our deep dive today, let’s just take a minute to summarize the key takeaways. So we’ve seen some really positive growth across different sectors in the DFW area. We’ve seen a particular strength in retail, office. Yeah, we also highlighted how important it is to really understand the DFW market, you know, knowing what consumers want, what they’re looking for, where those businesses are moving, and recognizing how, you know, those bigger trends create opportunities.

That’s key for success. And, you know, partnering with those experts like Eureka Business Group. Right. That can make navigating this dynamic market a lot easier. Much easier. Yeah. The DFW market, it has a lot of potential. Yeah. Yeah. It really does. And staying informed, you know, that’s what’s going to allow investors and businesses to capitalize on that growth and, and reach their goals.

Absolutely. So to our listeners, if you’re ready to explore those opportunities in DFW, you know, connect with Eureka Business Group. Our team can provide that guidance, you know, on the local market, help you discover the potential of retail real estate right here in DFW. Thank you for joining us. For this deep dive into DFW commercial real estate.

We look forward to bringing you more insights and analysis in future episodes. Until then happy investing.