CRE Permanent in Dallas

It does, and it is the line a permanent lender presses on hardest. JLL counted 17.9 million square feet of net absorption across Dallas-Fort Worth in the first half of 2026, the highest of any U.S. industrial market, with vacancy down for seven straight quarters to 9.3%, average asking rent at $8.99 per square foot, and 31.2 million square feet under construction at 37.7% preleased as of the second quarter of 2026. Note the source: CBRE published 8.3% vacancy and 24.0 million square feet under construction for the same market and quarter, because the two houses track different inventory. That is a definition gap, not an error, and blending them produces a number nobody published. Pick one house, label it on every page of the pro forma, and keep it there. The supply line is the one a permanent lender will press on, since 31.2 million square feet still coming is what tests your renewal rents at year five.

We do not quote a metro cap rate, because there is no current DFW cap rate we would stand behind in writing. We looked, and no accessible source publishes current Dallas-Fort Worth cap rates by asset class. Anyone handing you a clean metro number for industrial, office or retail here is quoting a broker survey, an out-of-date print, or a guess. So we underwrite the parcel: in-place net operating income from signed leases, the actual tax rate for that address, insurance as quoted rather than as assumed, and a debt service coverage test on the income the asset produces today. If a valuation opinion is doing heavy lifting in your file, bring the appraisal and the comps that support it. That is a slower conversation than a cap rate, and it is the one that survives underwriting.

Vintage decides it, not the metro average. DFW office ran 17.4% vacancy in the second quarter of 2026 across roughly 420.3 million square feet, with availability at 18.6%, about 1.9 million square feet of positive net absorption over the trailing 12 months and a ninth consecutive positive quarter, average asking rent of $33.66 per square foot, up 2.0% year over year, and 4.6 million square feet under construction at 53% preleased, per Bradford. The number that matters for long-term debt is the split inside that vacancy: roughly 42% of vacant space sits in 1980s-vintage buildings, while demand concentrates in newer product along the Dallas North Tollway corridor. A permanent lender is buying 10 years of that rent roll, so weighted average lease term, tenant credit, and a funded reserve for tenant improvements and leasing commissions carry the file. If the asset is not there yet, a bridge loan to lease-up and a permanent placement afterward is the honest path.

The most conservative, and with no growth on top of it. NTREIS data for Dallas-Fort Worth showed 4,613 closed leases in July 2026, down 12.4% year over year, with average closed rent at $2.4K, down 0.1%, and lease months of inventory at 2.19. Rentometer put Dallas single-family rents down 2.2% year over year for the first half of 2026, naming Dallas among the underperforming Sun Belt markets, against a national median 3-bedroom rent of $2,100. The spread between those two is a mix issue, since NTREIS captures MLS-listed leases and Rentometer captures a broader listing set. Underwrite to the conservative end, size debt service coverage on in-place rents from executed leases, and let any upside show up as upside. Agency and insurance permanent programs price off proven income, so a pro forma built on a rent trend is the fastest way to a lower proceeds number.

Yes, and it is about 56 basis points of assessed value every year of it. On tax year 2025 rates, the City of Dallas inside Dallas ISD totals 2.235030 per $100 of assessed value, while Frisco inside Frisco ISD in Collin County totals 1.675480. On a $500,000 basis that is roughly $2,800 a year, every year. The rate follows the city-ISD-county combination rather than the city name: a Dallas address can sit in at least seven ISDs, with totals inside Dallas County running from 2.104563 in Highland Park ISD to 2.362101 in Lancaster ISD, and some Dallas addresses fall in Collin or Denton County at a materially lower county component. MUDs, PIDs and other special districts stack on top of those totals and are not included in them, and several in Collin and Denton counties run a full 1.000000 per $100, which would take a Frisco-area total of 1.675480 to about 2.68 per $100. Pull the rate for the actual parcel before you set stabilized net operating income, and talk to your CPA or property tax counsel about how to model it past year one.

The deductible, not the premium. Texas hail policies commonly carry a percentage-of-value wind and hail deductible rather than a flat dollar amount, which United Policyholders flags as the term most owners never price. On a stabilized asset that is a balance sheet item, not a line item: a percentage deductible on an eight-figure replacement cost is a real number you have to be able to fund the day after a storm. We will not quote you a DFW premium, because every premium figure we could find for this metro comes from agency marketing rather than a filed source, and they disagree by wide margins. Get a real bindable quote on the actual building, read the wind and hail deductible clause, and bring both to underwriting. Talk to us or start an application and we will place the permanent debt around the carry you can actually prove.