There is ongoing debate in Dallas real estate circles about the future of downtown. Some believe downtown Dallas reached its peak in the twentieth century, citing a decline in its status as an office destination and growing public safety concerns, trends that were accelerated by the pandemic. Others argue that significant investments, such as the $3.7 billion convention center renovation project, could revitalize the urban core.
Jonas Woods of Pacific Elm has a direct stake in this discussion. “There’s a serious financial incentive to push tenants to more expensive buildings,” Woods said. He claims that suburban office owners and tenant representative brokers benefit when businesses leave downtown for other areas, which encourages negative perceptions of downtown’s safety and appeal.
Woods himself has invested heavily in adaptive reuse projects aimed at transforming downtown into a live-work-play environment, provided older office buildings can be reimagined for new uses. His commitment is not just theoretical; he is also AT&T’s landlord at Whitacre Tower on South Akard Street. The telecommunications company has considered relocating to the suburbs, which could have significant implications for its current downtown property.
Other major organizations are weighing similar moves. Both the Dallas Mavericks and Stars are reportedly considering relocating from their current home at American Airlines Center—just outside official downtown boundaries—to suburban locations as their leases near expiration.
In San Antonio, voters recently approved two constitutional amendments providing funding for Project Marvel—a $4 billion plan to build a new entertainment district and arena for the Spurs basketball team—as well as funds for a new stock show and rodeo district.
In Fort Worth’s Texas Senate District 9 race, Democrat Taylor Rehmet won a majority of votes despite it being a traditionally Republican area. Casino owner Miriam Adelson supported pro-casino candidate John Huffman with campaign contributions, but Huffman lost to Republican Leigh Wambsganss who opposes expanding casino gambling. As a result, Adelson may now look to Rehmet regarding her interests in extending casino operations into North Texas.
Meanwhile, nearly $600 million worth of commercial real estate loans connected to Texas properties went up for foreclosure auction this week. Houston continues to see significant impacts from these foreclosures; July Residential’s five-property multifamily portfolio was among those scheduled for sale after allegedly defaulting on an $81.5 million mortgage from Voya.
