Investment Strategies

Opportunity: Investors should consider building new flex warehouse and office space or acquiring and improving existing properties in the Dallas-Fort Worth metroplex due to the region's robust economic growth and strategic location. As one of the fastest-growing metropolitan areas in the U.S., Dallas-Fort Worth benefits from a booming economy, increasing population, and a central location with excellent transportation links. This growth drives high demand for versatile commercial spaces, including warehouses and offices that can accommodate various business needs.

Invest in flex warehouses that combine office space, catering to the diverse business landscape of Dallas. This setup is particularly attractive to service providers such as plumbers, electricians, fitness centers, and creative studios, all of which seek adaptable environments. The region's business-friendly environment, including incentives and tax benefits, enhances investment opportunities. The rise of e-commerce and flexible work arrangements further fuels demand for these versatile spaces. Investing in either new developments or upgrading existing properties allows investors to capitalize on market trends, improve property value, and potentially achieve substantial returns.

Market Growth: Dallas’s booming economy, with an influx of new businesses, is driving the demand for flexible spaces that can accommodate a variety of industries, particularly those in professional and health-related services.

Current Count: There are currently over 500 flex warehouse locations in North Texas, with more in development to meet growing demand.

Investment Considerations: While new developments come with higher upfront costs, they benefit from appreciation and modern compliance, whereas existing spaces might be more affordable but may require updates to meet contemporary standards.

Opportunity: Target multi-family properties in Dallas’s rapidly expanding neighborhoods. The city's job market and new infrastructure developments are boosting the need for rental housing.

Market Growth: Dallas's population growth and the rise of new residential communities are driving rental demand, making multi-family properties a solid investment choice.

Current Count: North Texas has approximately 3,500 multi-family properties, with significant new developments underway to accommodate population growth.

Investment Considerations: New developments involve significant costs due to construction and modern amenities, but they can appreciate rapidly. Older properties may offer lower entry points but might need renovations to compete in this growing market.

Opportunity: Retail strip centers near major infrastructure projects, such as the North Dallas Tollway and the Grayson County Tollway extension, offer excellent potential for growth due to high visibility and consumer foot traffic.

Market Growth: As Dallas expands, retail centers positioned near new attractions or infrastructure upgrades benefit from increased consumer spending, especially with the shift toward experiential and convenience-driven retail.

Current Count: In the Dallas-Fort Worth area, retail occupancy is at record highs, driven by a demand for space in both large and smaller strip centers. Centers exceeding 10,000 square feet are prevalent throughout the region, contributing to a growing retail market. For example, the metroplex is seeing about 1.9 million square feet of new construction in 2024 alone, a strong indication of the ongoing demand and growth in retail spaces. A significant portion of these larger retail centers are being anchored by grocery stores and service providers, with grocers playing a major role in driving new developments ​(WFAA)​(3ten Architecture).

Exact counts of strip centers over 10,000 square feet can vary, but Dallas and Fort Worth continue to see aggressive retail expansion, including significant projects that cater to both local and national tenants.

Investment Considerations: Building new centers can be capital-intensive, while acquiring existing ones may be more economical but could require upgrades to attract and retain modern tenants.

Opportunity: Invest in self-storage facilities in high-density residential areas of Dallas, where growing populations and space constraints create a natural demand for storage solutions.

Market Growth: The expansion of Dallas’s residential communities has led to increased demand for self-storage services, particularly in areas with limited space for personal storage.

Current Count: The Dallas-Fort Worth self-storage market presents significant opportunities for investors, with approximately 9 million square feet of new storage space in development.

The region hosts around 164 self-storage projects in various stages of planning, construction, and leasing. While there has been substantial growth in the sector, this expansion reflects the strong demand driven by DFW's rapidly increasing population and economic activity.

Investing in self-storage remains attractive due to relatively low operational costs and the industry's proven resilience, even during economic downturns. The DFW market, which currently offers 7.88 rentable square feet per person, exceeds the national average, demonstrating the area's strong appetite for storage solutions​(Texas Real Estate Research Center)​(Sparefoot).

Investment Considerations: New self-storage developments can command higher rental rates, while existing facilities provide opportunities for modernization and operational improvements.

Opportunity: RV and boat storage facilities near recreational areas and residential developments in Dallas are in high demand, as the number of RV and boat owners grows.

Market Growth: Dallas’s recreational and residential expansion supports increased demand for specialized storage options for RVs and boats.

Current Count: There are approximately 100 RV and boat storage facilities in North Texas, with growth expected near new residential developments and recreational areas.

Investment Considerations: New storage facilities come with higher development costs, but existing properties can often be acquired at lower prices and improved with modern amenities to capture market share.

Opportunity: Industrial outdoor storage is a growing sector in Dallas, with demand driven by the city’s expanding industrial base and logistical infrastructure developments.

Market Growth: As Dallas's industrial and logistical sectors grow, outdoor storage facilities are becoming increasingly vital for supporting the city's manufacturing and distribution needs.

Current Count: North Texas has about 70 industrial outdoor storage facilities, and the sector is seeing steady expansion due to increased logistical demands.

Investment Considerations: New developments tend to be more cost-effective than traditional industrial builds, while existing properties may require improvements to meet current operational needs.

Opportunity: Invest in laundromats located in high-density rental areas of Dallas where residents often lack in-unit laundry facilities, offering convenience and accessibility to tenants.

Market Growth: The laundromat industry remains steady, with areas experiencing growth in rental housing presenting new opportunities for self-serve laundry services.

Current Count: There are roughly 50 self-serve laundromats in North Texas, with new opportunities in growing rental markets.

Investment Considerations: While new laundromats require significant equipment investments, existing facilities may be more affordable but could need modernization to remain competitive.

Opportunity: Self-serve car washes in high-traffic areas of Dallas cater to the city’s growing car ownership, offering convenience to local drivers.

Market Growth: As vehicle ownership in Dallas increases, so does the demand for accessible and affordable car wash services, especially with advancements in self-service technology.

Current Count: The Dallas-Fort Worth area has a strong presence of coin-operated self-serve car washes. While specific data on the exact number of such facilities is not readily available, it's clear that this region hosts a large number of car washes overall, thanks to the growing demand for auto services in North Texas. In the U.S., there are approximately 56,773 car washes and auto detailing businesses, with Dallas and Fort Worth being part of this booming market​(Car Wash Traders | Car Wash Experts)​(Matthews).

Investment Considerations: Building new car washes can be capital-intensive, but existing facilities offer a quicker entry point and potential for improvement through better equipment and customer service.