10Y UST5.11%+3.02%30Y MTG7.03%+1.15%SOFR3.88%+0.26%VNQ$90.92-0.27%XLRE$41.53-0.30%FED FUNDS3.88%
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Connect CRE · Dallas · Office

Adolfson & Peterson Completes Dallas Office to Retail Conversion

Via Connect CRE · September 25, 2026
Compiled by Real Estate Trail Editorial · September 25, 2026

Why this matters

Office continues to trade in two distinct markets: trophy assets in walkable submarkets that are leasing at or near record rents, and commodity Class B and C buildings where the basis is still resetting. Underwriting on the latter has moved toward replacement-cost-minus, with credit underwriting now leaning on tenant covenant and remaining lease term rather than mark-to-market expectations. Dallas-Fort Worth continues to absorb the largest multifamily delivery pipeline in the country. Industrial along the I-35 corridor is clearing at competitive basis, and selective office is finding bids at deep discounts to replacement. For LP-positioned capital, the read-through is that the bifurcation is now a structural feature of the sector, not a cycle to wait out.

Editorial analysis · Real Estate Trail Editorial

On the RET wire

Computed from Real Estate Trail’s own tracked coverage

Excerpt from Connect CRE:
Adolfson & Peterson Construction (AP) recently completed the shell construction of The Seam, Asana Partners’ 160,000-square-foot upscale shopping and dining destination in Dallas’ Design District. Construction began i…
Read the full article at Connect CRE →

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