Dallas led U.S. in 2020 commercial property deals

The Dallas area led the country in commercial property transactions in 2020, as many larger

The Dallas area led the country in commercial property transactions in 2020, as many larger U.S. markets were hit harder by the COVID-19 pandemic.

More than $19.7 billion in commercial real estate deals were recorded in the local market, edging out Los Angeles at almost $19 billion, according to a report by Real Capital Analytics.

Dallas previously ranked third in the country among top markets in both 2019 and 2018.

Several large North Texas industrial building and apartment transactions pushed the area to the top of the New York-based research group’s annual report.

“Dallas was the leading U.S. market for commercial property investment in 2020,” Real Capital Analytics’ researchers said in their report. “Were it not for portfolio activity, however, Los Angeles would have claimed the #1 spot two years in a row.

“Portfolio activity in the apartment and industrial sectors helped to boost Dallas to the No. 1 slot.”

Dallas-area property transactions were down 25% from 2019 levels, compared with a 32% nationwide year-over-year decline.

More than $10 billion of the North Texas commercial property deals in 2020 were industrial buildings. Over $5 billion in apartment transactions were recorded in the area.

Only $251 million in Dallas hotel transactions were concluded in 2020.

Nationwide commercial property deals were at the lowest level in seven years as the pandemic shut down sectors of the real estate market, according to Real Capital Analytics. More than $405 billion in transactions were recorded around the country.

“Deal activity cratered, distressed assets piled up, pricing became challenged and many in the industry lost jobs,” researchers said.

The biggest declines in investments were in hotels, down 68%, and retail, down 43%.

“The apartment and industrial sectors led the activity, with actual growth in deal volume,” Real Capital Analytics said. “For the industrial sector, December volume was at a record high level for a December.”