Texas commercial real estate is one of the top CRE markets in the US and often thrives in the most challenging situations. However, the pandemic affected its strength, especially in the retail sector. Transactions have been up and down in the past year, but the latest updates will help you know where the industry is moving.

The Dallas market has held the strongest position in Texas for a few decades, and its position remains the same. But, each region within the state is undergoing some much-needed shuffling to put things back on track. Unfortunately, not every property is performing well.

This blog will mention some of the top Texas commercial real estate updates to help you understand what is happening.

Texas Commercial Real Estate Foreclosure

Foreclosure is when a commercial property needs to shut down because it cannot sustain itself due to profitability or other issues. Unfortunately, a few well-known commercial properties in Texas are headed down this route due to the pandemic and economic uncertainty.

1. North Texas Walmarts

7 Walmarts in North Texas are facing foreclosure because their owner has defaulted on loans worth $41.5 million. The business is still trying to negotiate a deal with the lender to avoid all or some foreclosures, but it is uncertain how successful that discussion will be.

This foreclosure has attracted attention because it is one of Texas’s biggest commercial real estate changes.

2. Marathon Oil Tower

The Marathon Oil Tower in Houston also went into foreclosure about a month ago. However, this particular case has more to do with practicality than loss. Businesses are increasingly catering to employee demands for a hybrid workplace, leading to a decline in their required office space size.

Thankfully for the Tower, Starwood Property Trust bought it through foreclosure and will likely keep it functional.

Property Purchases

Aside from foreclosures, there have also been some key commercial real estate purchases that are worth mentioning.

1. Har Mar Mall Purchase

Fidelis, a Texas-based commercial real estate business, bought this 60-year-old commercial property for $50 million in a recent cash purchase decision. The property is in Minnesota, but Fidelis has a reputation for focusing on shopping plazas and strip malls, so this purchase will likely boost the property’s value.

2. McKinney and Olive Tower

McKinney and Olive Tower is a Class A commercial real estate proper that might get purchased by Highwoods Properties, a North Carolina-based real estate investor. Negotiations are underway, but this sale is expected to be one of the most expensive purchases in recent history.

Based on the sale ads, the Tower is a 6-year-old property worth $225 million. It offers 536,000 sq. ft. of office and retail space, and its current tenants include Saatchi & Saatchi, McKinsey & Co., Cushman, and Wakefield.

Wrapping Up

Overall, Texas commercial real estate is undergoing extensive changes, with several high-profile closures and purchases within the past few months. It shows that commercial real estate remains dynamic, and investing correctly is the best option.

CHRE has been part of the industry for several years, and we have the expertise to understand its trends. Please contact our team to schedule a meeting, so we may help you create a profitable portfolio.