One thing is set to define commercial real estate markets in Denton over the coming years, according to local brokers: growth.
A panel of six local brokerage and development experts discussed the state of the industry during an investor reception hosted by the Denton Economic Development Partnership on Thursday evening at the Embassy Suites by Hilton Denton Convention Center. Chamber of Commerce President Erin Carter moderated the hourlong panel, which included a discussion of the industrial, retail office, residential and land development markets.
Panelists drove home the theme of increasing need for available space driven by a continued influx of newcomers to North Texas. While the COVID-19 pandemic impacts are still being felt by some sectors of the real estate market — seen in decreased demand for larger office spaces and supply chain issues driving up building costs — the need for property has been an overriding trend for local market watchers.
The demand for industrial property today is stronger than it was two years ago, according to Cole Frazier, co-owner of Frazier Commercial.
“We’re seeing vacancy rates the lowest they’ve ever been, which obviously drives rents and makes our jobs a lot tougher when we don’t have any space to find, we don’t have any tenants moving out,” Frazier said. “We’re kind of gridlocked in a sense — people can’t go anywhere else because you can’t find it, can’t build it fast enough, can’t buy it cheap enough.”
Some developers are focusing on revitalizing old spaces and embracing creativity to try to meet future needs, but the market is seeing “record numbers,” especially given Denton’s centralized location for logistics, Frazier said. That boom is also being felt in the residential market, where the demand for multifamily properties in the area has reached new heights despite construction inflation.
“I’m getting calls from people all over the country on multiple occasions per day looking for multifamily sites, [but] we just don’t have that much more multifamily-zoned land,” said Nathan Tune, vice president of land and investments at Verus Commercial.
Looking ahead, panelists said attracting large developers would be the key to consolidating industrial sites, which would allow more diverse businesses to come to Denton despite limits on available land. Among the areas brokers will be keeping an eye on are Hunter Ranch, a 3,200-acre single-family development on Interstate 35W, and Denton’s downtown, which Scott Brown Commercial has proposed redeveloping.
Interstate 35 and South Loop 288 are also expected to continue to grow.
“I can’t tell you how excited I am about that southwest part of Denton, and what it’s going to look like in the next five years or 10 years,” said Brad Andrus, executive vice president of Axis Realty Group.
The next investor reception will focus on education and Denton’s talent pipeline, with leaders from North Central Texas College, Texas Woman’s University and the University of North Texas sharing insight. The discussion will take place June 9.
