Mid-Year Momentum + Top-Tier Cash-on-Cash = Fast-Moving Equity

Multifamily Momentum in the Dallas Market

Tuesday, September 9th, 2025

richardson texas aerial view — Photo Caption: Just a few miles from The Courtyard Apartments lies the Telecom Corridor, a uniquely concentrated business district with more than 130,000 jobs and over 25 million square feet of office space.

Strong Mid-Year Metrics Creates Time Sensitive Opportunity for Investment in The Courtyard Apartments

Earlier this year we published an article on The Courtyard Apartments’ powerful location advantage—its proximity to the Telecom Corridor, a uniquely concentrated business district with more than 130,000 jobs and over 25 million square feet of office space. With more than 5,700 businesses and roughly 600 technology firms clustered into this compact area, the Telecom Corridor ranks among the nation’s highest concentrations of tech employment and has a 2.2× higher share of engineering occupations than the U.S. average.

Mid-year statistical reports for the Dallas economy and the multifamily market indicate strong upward trends. These trends, combined with The Courtyard Apartments’ strong projected cash-on-cash returns in the multifamily investment category, substantially elevated investor demand.

Absorption Surges: 15.7K Units in Q2—Best Since Q3 2021

So far this year, Dallas–Fort Worth is filling new apartments almost as quickly as they are being finished—much better than in 2022–2024. In Q2, about 15,700 more apartments were rented than vacated (the strongest quarter since Q3 2021), marking the fifth straight quarter with 10,000+ net move-ins. For four consecutive quarters, move-ins have exceeded new completions, so the vacancy rate is down by about 1.6 percentage points from a year ago. Colliers reports Q2 occupancy is near 94.2% (up from 93.5% in Q1) and counts 15,682 net move-ins, underscoring that demand is catching up to supply.

Dallas Led All U.S. Metros in Apartment Sales

Supply & Rents (Q2 2025)
Builders kept tapping the brakes for the 11th quarter in a row, with about 46,800 apartments still in the works—27% fewer than a year ago. That breather helps new properties lease up. Average rents inched higher in Q2 to about $1,503 (from $1,486 in Q1). May also marked the first three-month stretch of rent growth in nearly a year (+0.1% to $1,528).

Occupancy & Investment Activity
Occupancy improved from 93.5% in Q1 to 94.2% in Q2. Investors noticed: Dallas led all U.S. metros with $1.5B in apartment sales through May, and the average price per unit was 10% higher year-to-date. Developers delivered about 9,400 units through May, while fewer new projects are breaking ground.

Supply Relief Sets Stage for Stabilization

Dallas’ new-build pace is easing: Yardi Matrix reports that deliveries and new construction are moderating in the metro, helping the market move back toward more typical volumes rather than the recent surge of starts. Nationally, apartment starts have fallen sharply, with RealPage noting new starts and total construction volumes are well off peak in most markets—setting up less supply pressure into 2026. With this backdrop, owners and their operators are leaning on renewals to keep occupancy tight: In DFW, lease renewals are running about 61%–63% (Dallas 61.2%; Fort Worth 63%)—well above the national renewal pace near the mid-50s. On a trailing basis, both supportive of stabilization as new supply throttles back.

Population Continues to Climb

Official Census data show DFW added about 178,000 residents through mid-2024, a 2.2% increase. Regional estimates put the area at approximately 8.72 million by early 2025—evidence that relocation trends and natural growth are still expanding the renter base.

Corporate Expansions and City Reinvestment

Just minutes from The Courtyard Apartments lies the Telecom Corridor, an area of such regional employment significance that the corridor alone employs more people than the entire population of Richardson, the city it’s located in. As of 2020, Richardson’s population stood at approximately 120,000, while the Corridor itself supports over 130,000 jobs. Recently four major players in the corridor made major announcements regarding expansion and growth.

GEICO New office location — GEICO is opening a second Richardson office and adding 1,000+ jobs.

GEICO is opening a second Richardson office and adding 1,000+ jobs, targeting a Fall 2025 opening in a new 165,000-square-foot building.
AT&T has signed a long-term lease for 186,000 square feet across seven floors at the Lakeside Boulevard Tower with $15.8M in building upgrades underway to modernize the building.
Celestica, a global provider of electronic design, manufacturing, and supply-chain solutions, is converting approximately 30,000 square feet of office to high-tech manufacturing and adding 155 new jobs.

Collins Aerospace, one of the World’s largest suppliers of aerospace systems is expanding its Telecom Corridor location and adding 570 new jobs.

Additionally, NTxBio, a biomanufacturing company, has announced it is building a new facility creating 170 new jobs in Plano, located only about 6 miles from The Courtyard Apartments.

Collins Aerospace is expanding its Telecom Corridor location and adding 570 new jobs.

Downtown Dallas is also experiencing noteworthy growth. Canada’s Scotia Bank recently announced it is creating a new U.S. hub adding about 1,000 jobs. The New York Stock Exchange has launched NYSE Texas—now live—with its Dallas headquarters slated to open in 2026. Nasdaq announced it will open a regional HQ in Dallas. The Texas Stock Exchange plans to start trading in early 2026, with listings by year-end, pending SEC approval.

Garland Approves $70.9M Soccer Complex

On the Garland civic front, voters approved the $360M “Grow Garland” bond package on May 3, 2025. The package allocates $230M for residential street repairs and beautification; $75M for economic development: $25M for renovation of the Granville Arts Center and $30M for parks and recreation projects.

In addition, the City Council recently green-lit a $70.9M soccer complex on June 17 located about 3.3 miles from The Courtyard Apartments. The scope of the project includes up to eight soccer fields, futsal courts [an indoor version of soccer] and a 28,000-square-foot multipurpose building. Construction is targeted for 2026-2027.

Summary: Rental Growth Climbs; DFW Tops National Sales Charts; Market Sentiment Strengthens

DFW apartments picked up real momentum in the first half of 2025. Q2 net absorption was 15,682 units, the strongest since Q3 2021, and it marked the 5th straight quarter with 10k+ net move-ins. Because more people moved in than builders delivered new units for four straight quarters, the share of empty units fell by about 1.6 percentage points from a year ago, and overall occupancy reported by Colliers was about 94.2% in Q2. Building has also slowed—apartments under construction are down about 27% year over year—which gives recent projects time to fill. Rents have started to edge up, and Dallas led all U.S. metros in apartment sales through May with $1.5B, with the average price per unit up about 10% YTD.

Mid-year 2025 reports on the Dallas economy and multifamily metrics—3.5% unemployment, easing supply pipeline, firmer rents—signal a constructive setup for late-2025–2026.

“Paired with The Courtyard Apartments’ projected cash-on-cash return of 5.5% being among the highest in the market, it’s clear why the remaining equity allocation in The Courtyard Apartments is moving quickly.”

Karen E. Kennedy
President & Founder
NAS Investment Solutions

Investors interested in taking advantage of this time sensitive opportunity should contact Karen E. Kennedy at [email protected] or call 310.988.4240.

Sources

Real Estate Journal
https://rejournals.com/cbre-sells-202-unit-multifamily-property-in-texas
Richardson Economic Development
https://www.richardsoneconomicdevelopment.com/news/fujitsu-transaction-solutions-moves-hq-to-richardson
Wikipedia
https://en.wikipedia.org/wiki/Telecom_Corridor
Northmarq
https://www.northmarq.com/insights/insights/renter-demand-soars-dallas-outpacing-new-multifamily-deliveries-fourth-straight
Colliers Q2 Multifamily Report
https://fileshubprod.blob.core.windows.net/filehub/603c8598-eb21-42ab-949f-641968154bea/Dallas/Research/Market%20Reports%20for%20Dashboards/2025/Q2/Dallas/Q2%202025%20DFW%20Multifamily%20Report.pdf?se=2035-08-01T16%3A30%3A19Z&sig=ep535gGsTocbFAlOj837wkjn5tYGVStSYYe1476kf58%3D&sp=r&spr=https&sr=b&st=2025-08-01T16%3A30%3A19Z&sv=2023-11-03
Colliers Research Blog
https://www.colliers.com/en/research/dallas/q1-2025-dallas-fort-worth-multifamily-report
Yardi Matrix Multifamily Report
https://www.yardimatrix.com/blog/dallas-multifamily-market-report/
Real Page
https://www.realpage.com/analytics/2025-headwinds/
https://www.realpage.com/analytics/2q-2025-data-update/
Geico
https://www.geico.com/about/pressreleases/2025/20250327a
Community Impact
https://communityimpact.com/dallas-fort-worth/richardson/business/2025/03/27/geico-to-expand-in-richardson-with-1000-new-jobs
AT&T News Release
https://www.cor.net/Home/Components/News/News/8169/149
Connect CRE
https://www.connectcre.com/stories/att-signs-186k-sf-lease-in-richardson-office-tower
Community Impact:
https://communityimpact.com/dallas-fort-worth/richardson/business/2024/03/06/celestica-plans-to-add-155-jobs-to-expanded-richardson-facility
Richardson Today
https://richardsontoday.com/celestica-expands-richardson-footprint-creates-new-jobs
GarlandTX.gov
https://www.garlandtx.gov/DocumentCenter/View/21513/One-Sheet-Voter-Guide—English
GarlandTX.gov
https://www.garlandtx.gov/CivicAlerts.aspx
Federal Reserve Bank of Dallas
https://www.dallasfed.org/research/indicators/dfw/2025/dfw2504
Census.gov
https://www.census.gov/newsroom/press-releases/2025/population-estimates-counties-metro-micro.html
DFW Maps
https://rdc.dfwmaps.com/pdfs/2025%20NCTCOG%20Population%20Estimates%20Publication.pdf
CoStar
https://www.costar.com/article/564570262/canadas-scotiabank-picks-dallas-for-new-us-office-hub
Collins Aerospace
https://www.collinsaerospace.com/
New York Stock Exchange
https://www.nyse.com/markets/nyse-texas
Nasdaq Investor Relations
https://ir.nasdaq.com/news-releases/news-release-details/nasdaq-deepens-commitment-texas-additional-client-investment
Texas Stock Exchange
https://www.txse.com/about-us

About the Author

Karen E. Kennedy's expertise spans various areas, including 1031 Exchanges, Delaware Statutory Trust (DST) structured investments, fractional interest ownership, tenancy-in-Common (TIC) owned properties, property acquisitions, portfolio management, and investor relations.

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Frequently Asked Questions

What is a 1031 Exchange?
A 1031 exchange is a swap of one real estate investment property for another in a specific way that allows for capital gains taxes to be deferred.
What are the advantages of a DST-Structured investment in commercial property?
There are numerous advantages to investing in a DST structured property offering.
- The purchase of DST interests is simpler, faster and does not require as many documents as buying sole ownership of a property.
- Capital Gains are deferred, if investment is for a 1031 Exchange
- No daily property management obligations that come with sole ownership
- Ability to create a diversified real estate investment portfolio
- Cash flow distributions
- Annual depreciation/tax deductions
- Appreciation upon sale of the property
- Upon the sale of a DST property, the investor may engage in a 1031 exchange, even if the DST interest was purchased without 1031 exchange proceeds.
- A DST is a pass-through tax entity, which is not subject to federal income tax, nor to the Delaware franchise or income tax.
- Because the DST is the mortgage borrower, the lender does not require individual DST investor guarantees, nor does the lender require investors to submit personal financial information to qualify for the mortgage loan.
- Investors with interest in a DST property are protected from property liabilities held by the DST. As a result, the maximum pre-tax loss (excluding income tax considerations) is equal to the amount invested in the DST.
Are there a minimum and maximum investment amounts to participate in a DST property offering?
- Yes; $50,000 to $100,000 are typical minimum investment amounts but this may vary from sponsor to sponsor.
- The maximum amount is contingent on the overall size of the DST offering and the discretion of the DST Sponsor.
Are DST-Structured properties commonly used for a 1031 Exchange?
Interests in Delaware Statutory Trusts are the primary investment method for fractional 1031 exchange investments at this time.
Are there any restrictions on a DST-Structured Investment?
- The IRS places several prohibitions on the power of DST trustees if the Delaware Statutory Trust is to be used with a 1031 tax deferred exchange. There are seven restrictions, sometimes referred to as the ‘Seven deadly sins of a DST’:
  - Once a DST offering is closed there can be no further contributions by current owners, new owners, or beneficiaries.
  - Existing loan terms cannot be renegotiated, nor can new funds be borrowed, by the DST trustee.
  - Sales proceeds from the investment real estate cannot be reinvested by the DST trustee.
  - Capital expenditures can only be made by the DST trustee for normal repair and maintenance, minor non-structural capital improvements, or those required by law (such as items related to zoning codes).
  - Liquid cash held by the DST between distribution dates can only be invested in short-term debt obligations.
  - All cash in excess of necessary reserves must be distributed to investors.
  - New leases or re-negotiations of current leases may not be entered into by the DST trustee.
How does an investment in a DST-Structured property differ from an investment in a TIC-Structured property?
- Like TICs, DSTs have multiple investors that purchase fractional interests and the investors share in the total financial performance of the underlying investment property. However, the primary differences between the two investment structures are:
  - A DST is not limited to a maximum of 35 investors required by Revenue Procedure 2002-22.
  - DST investors (Beneficiaries) are purchasing a beneficial interest in a trust and do not receive deeded property.
  - Beneficiaries in a DST are not necessarily required to form single-member Limited Liability Companies (LLCs).
  - Beneficiaries do not have voting rights or operational control of the property.
  - In a DST structure, there can be no cash calls or additional money invested into the property beyond typical maintenance and certain capital expenditure needs, unlike in TICs.
How a 1031 Exchange is Accomplished?
There are seven recommended steps common to most Section 1031 tax deferred exchange:

BEFORE YOU CLOSE ON THE SALE OF THE RELINQUISHED PROPERTY:

Step 1: Consider retaining the services of a certified public accountant or an attorney with tax deferred exchange experience to assist in planning for an exchange.

Step 2: Engage a Qualified Intermediary, or “QI,” (also called an Accommodator), being sure to name the QI as the principal in the sale of the relinquished property and in the purchase of the replacement property.

Step 3: Sell the relinquished property, making sure to include a cooperation clause requiring the buyer to cooperate with the seller’s 1031 exchange, and instruct the escrow officer or closing agent to order exchange documents from the QI.

AFTER CLOSING THE SALE OF THE RELINQUISHED PROPERTY

Step 4: Escrow closes on the relinquished property, with the closing statement showing the QI as the seller, and sales proceeds from the relinquished property are sent to the QI and placed in a separate segregated trust account.

FAILURE TO SEND SALES PROCEEDS DIRECTLY TO QUALIFIED INTERMEDIARY FROM ESCROW WILL RESULT IN INABILITY TO EXCHANGE.

Step 5: Within 45 calendar days of the close of escrow of the relinquished property the exchanger identifies one or more replacement properties and sends written notice of this to the QI.

Step 6: The exchanger executes a purchase contract with the seller of the replacement property, making sure the cooperation clause is included in the purchase contract, and naming the QI as the buyer of the replacement property.

Step 7: Within 180 calendar days of the close of escrow of the relinquished property, the exchanger instructs the QI to transfer funds to close escrow and sends 1031 exchange-related documents to the escrow company, and the sale closes with the closing statement showing the QI as the buyer on behalf of the exchanger.
- After the replacement property has closed escrow, the QI will send a final accounting statement to the exchanger. The statement will show that funds have come from one escrow directly into another, all without the taxpayer having constructive receipt of the funds.
- Real estate investors should note that although the qualified intermediary is indicated as the seller and buyer on the purchase contracts, the deed and title are always from the taxpayer to the buyer, and from the seller to the taxpayer.
What qualifies as a “like-kind” replacement property?
- The definition of a qualifying like-kind property is very broad, for both the sold property and the replacement property: real estate used for investment or business purposes. Personal use property is not eligible.
- Investment real estate (held for either appreciation or for rental) can be exchanged for real property used in a trade or business. Partial interests such as TICs or DSTs, are exchangeable with other types of real property.
How is a replacement property identified?
A like-kind replacement property is identified if it is designated as replacement property in a written document signed by the exchanging party and received by the QI before the end of the 45-day identification period. Every QI uses their own form of documentation. Please consult with your QI to determine the exact procedure they require.

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Authored By: Karen E. Kennedy

President & Founder • NAS Investment Solutions

Karen E. Kennedy's over-40 years experience spans various areas, including 1031 Exchanges, Delaware Statutory Trust (DST) structured investments, fractional interest ownership, Tenancy-in-Common (TIC) owned properties, property acquisitions, portfolio management, and investor relations. See Full Bio