O’Connor discusses how Dallas County commercial property increased by 15.7% in value.
DALLAS, TX, UNITED STATES, April 30, 2026 /EINPresswire.com/ — The Dallas-Fort Worth metroplex boasts some of the most valuable property in Texas and the nation. With a diverse economy that has been embracing technology and finance in recent years, the area has seen a massive influx of people from all across the country. At the heart of this growing empire is Dallas County. Second only to Harris County in population, Dallas has seen demand for both homes and businesses go through the roof. With property values doubling in the past decade, there is more pressure than ever on people trying to stay in their homes. This has been countered by the rising use of property tax protests, which were able to reduce taxes by $1.15 billion in 2024 alone.
Dallas Homes Add 4% to Their Overall Value
Property values in Dallas County have continually grown faster than inflation, with 2026 seeing an uptick of 4%, which took the combined value of all homes to $299.63 billion. Homes worth between $250,000 and $500,000 were by far the largest block, combining for $105.15 billion after an increase of 1.4%. Surprisingly, the second-highest total was for homes worth over $1.5 million, which accounted for $76.37 billion following a large jump of 8.7%. Homes worth under $250,000 edged up 0.5% to $31.15 billion. Homes worth between $750,000 and $1 million and those worth from $500,000 to $750,000 increased 7.2% and 4.2%, respectively. Each of these totaled over $22 billion.
Despite how important high-dollar properties became in 2026, the majority of value was created by modest homes. Increasing 3.6%, residential real estate measured between 2,000 and 3,999 square feet totaled $117.66 billion. Homes under 2,000 square feet totaled $110.91 billion after increasing 1.6%. Adding 6.9%, homes from 6,000 to 7,999 square feet reached $41.89 billion. The largest homes were also the largest growers, with those measuring over 8,000 square feet jumping 13% to $13.03 billion.
When it comes to the age of construction, Dallas County bucked some trends. Typically, the majority of residential value is built in the boom of 2001 to 2020. While 24% of all value came from this period, totaling $71.94 billion, this held the lead by a slim margin. Homes built from 1981 to 2000 added 2.4% to reach $64.74 billion, while those from 1961 to 1980 added 2.5% to total $69.03 billion. The largest source of value was homes older than 1960, which jumped 4% to $74.31 billion. New construction, not surprisingly, added the most value at once with a spike of 20.3%, reaching $19.4 billion, or 7% of the total. Raw land saw its value soar by 11.8%.
48% of Residential Real Estate is Overvalued
In 2026, it was estimated that the Dallas Central Appraisal District (DCAD) had overvalued 48% of homes. This was determined by studying home sales at the start of 2026. This showed that actual sales lagged behind the numbers handed out by DCAD in 48% of cases. This is not uncommon because appraisal districts use older data and are often behind the curve. This is why sales comparisons are so important when it comes to property tax protests.
Businesses Surge in Value by 15.7%
Big D is known first and foremost as a center of business, and this is shown in the total value of commercial property. Soaring 15.7%, 2026 saw a new total of $159.51 billion. Like most of Texas, the majority of value was centered on business real estate worth over $5 million. These titans of industry grew an astounding 16.5% to $134.38 billion. Adding 13.7%, those worth between $1 million and $5 million totaled $18.01 billion. Medium businesses grew an impressive 8.8% to $3.50 billion, while small businesses added 5.9% to reach a tally of $3.62 billion.
Like most urban Texas counties, the largest contributor to commercial value was apartments, with $81.79 billion. This was after a staggering increase of 19.6%. Offices were in second place with $35.28 billion, after adding 9.9%. Retail shot up by 13% to $14.93 billion, while warehouses reached a final tally of $10.05 billion following a sharp increase of 18%. Hotels have been climbing in value over the past few years, and have soared 22.7% to $7.10 billion
Dallas commercial property leaned much more toward recent construction than homes did. The boom period between 2001 and 2020 was responsible for 32% of all value, or $48.61 billion, following an increase of 12.3%. 30% of the total came from those built from 1981 to 2000, which had also added 14.5%. Those built from 1961 to 1980 took third place with $27.47 billion and a jump of 16%. New construction surged 47.7% to $13.21 billion.
National Commercial Property Values Fall
The Federal Reserve of St. Louis (FRED) studied commercial property trends across the nation and determined that total values had fallen 7% in the past few years. This is mostly thanks to office spaces and related buildings having more vacancies. In contrast, DCAD assessed business real estate in Dallas as having jumped 15.7%. Being one of the hottest markets in the nation, it is reasonable to believe that values have increased in the DFW area. The argument is about how much higher the values have climbed compared to the national average. This leaves enough ambiguity that it is recommended that all businesses protest their taxes every year, just to be sure they are paying the fair amount.
Apartments Spike in Value by 19.6%
Already the most valuable commercial real estate in Dallas County, multifamily housing added 19.6% to its total, which translated into a final sum of $81.79 billion. 41%, or $33.36 billion, came from the boom of 2001 to 2020, which was the result of an increase of 13.4%. Those from 1981 to 2000 were responsible for $21.93 billion, following a jump of 18.3%. Businesses constructed between 1961 and 1980 soared 21.5% to $15.42 billion. New construction already makes up 11%, or $9.03 billion, of the total, and added a staggering 51.3%.
DCAD only classified apartments into two categories. Generic apartments jumped 19.6% to $81.78 billion. Multifamily buildings expanded by 8.3%, totaling $12.55 billion.
Offices Increase Value by 9.9%
Offices have generally lost value thanks to changes in work habits after the pandemic, but have begun to see a resurgence in recent years. In Dallas County, offices increased 9.9%, totaling $35.26 billion. Unlike most property types, the majority of value came from those built from 1981 to 2000, which accounted for $15.90 billion, roughly 45%. In second place were those built from 2001 to 2020, which added 11.4% to reach $10.07 billion. Jumping 6.4%, those from 1961 to 1980 managed to tally $5.02 billion. New construction surged 35.6% to $2.96 billion.
Like apartments, offices were only broken down into two categories. Office buildings led the way with $31.15 billion following a strong jump of 10%. Medical offices managed to add 8.8%, resulting in a final sum of $4.13 billion.
Retail Spaces Jump Over $1 Billion
Like offices, retail stores have experienced a downturn in recent years, but likewise have seen dramatic increases in value over the last few years. This was certainly true in 2026, when values increased by 13%. Retail spaces were relatively equal when it came to construction timeframes, with the exception of new construction, which was responsible for $412.77 million following a spike of 45.2%. Increasing 16.2%, those from 1981 to 2000 accounted for $4.16 billion, while those from 2001 to 2020 were responsible for $3.84 billion. Even older properties did well, with those from 1961 to 1980 adding 4% to a total of $3.59 billion, while the oldest properties reached $2.92 billion.
DCAD did not break stores down into too many categories, but certainly enough to paint a picture. The infamous Dallas strip center took first place with $6.92 billion, following an increase of 16.8%. Shopping centers increased their total the most, increasing 17.4% to $4.13 billion. Retail stores also climbed by 10.9% to $2.71 billion. Malls were the only category to see a negative number, dropping 11.9% to $1.16 billion.
Older Warehouse Construction Dominates
Outside of homes, no real estate type trended older than warehouses. Adding an astonishing 25.1%, those built between 1981 and 2000 totaled $4.08 billion. Strangely, those from 2001 to 2020 only added 1.8%, for a final sum of $2.40 billion. Jumping by 23.1%, those built from 1961 to 1980 achieved a total of $2.35 billion. New construction skyrocketed 25.3%, but only accounted for 2% of all value.
DCAD only classified warehouses into two categories. Office warehouses jumped 16.5% to $7.82 billion. Mini warehouses surged by 23.6% to $2.23 billion.
About O’Connor:
O’Connor is one of the largest property tax consulting firms, representing 185,000 clients in 49 states and Canada, handling about 295,000 protests in 2024, with residential property tax reduction services in Texas, Illinois, Georgia, and New York. O’Connor’s possesses the resources and market expertise in the areas of property tax, cost segregation, commercial and residential real estate appraisals. The firm was founded in 1974 and employs a team of 1,000 worldwide. O’Connor’s core focus is enriching the lives of property owners through cost effective tax reduction.
Property owners interested in assistance appealing their assessment can enroll in O’Connor’s Property Tax Protection Program ™. There is no upfront fee, or any fee unless we reduce your property taxes, and easy online enrollment only takes 2 to 3 minutes.
Patrick O’Connor, President
O’Connor
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