IRR-Fort Worth Mid-Year Viewpoint 2015 Local Market Report - Multifamily
Strong population growth within the region, low unemployment, and expanding business across several key industry sectors continue to drive the expansion of the Fort Worth multifamily market. Overall vacancy is at 4.2 percent, the lowest percentage the market has seen in recent years. Absorption remains positive, with this trend expected to continue for the next several years although at decreasing levels. Rental rates for both A and B/C property classes increased throughout the first part of 2015 and will likely continue to do so as the year progresses.
The Dallas Business Journal reported that annual effective rents grew 6.8 percent in Fort Worth, surpassing the national average of 5 percent. Overall cap rates and discount rates were steady in the first part of 2015 with this trend expected to continue for the remainder of the year. Several mixed-use projects with residential components are under construction, such as the $28 million Pinnacle Bank Place project in Downtown which will include 130 multifamily units.
A notable Downtown Fort Worth project that was recently announced is the development of a 202-unit apartment complex on the site of the former Frank Kent Cadillac dealership. South Fort Worth is experiencing growth in the multifamily sector as well with the 227-unit Highpoint on South Main and The Kelton, a 392-unit development on Edwards Ranch Road. The Clearfork development, which will be mixed-use, is planned to have a total of nearly 2,500 units at build out. AllianceTexas is also continuing to add multifamily units, with the nearly complete 318-unit Overlook Ranch project and several additional projects in the planning stages. The Fort Worth multifamily market should continue to expand throughout 2015 as demand remains strong, fueling high occupancy levels and increased market rents.
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IRR Mid-Year Viewpoint 2015 comprises a National Overview report and 300+ two-page Local Market Reports for all key property types as well as additional resources, including metrics methodology, graphs, and tables; these free reports may be downloaded from IRR’s site here.