Rent Report

Fort Worth rents buck Texas trend and continue to climb, report says

In Fort Worth, rents are rising.

Photo by benedek/Getty Images

The Texas rental market often sets the pace for the entire country, but 2020 has been different, according to new data from apartment marketplace Abodo. Nationally, median rents have moved upward this year, whereas Texas rents have shown a definite downtrend.

The national one-bedroom median rent moved from $1,086 in January to $1,111, a gain of 2.3 percent. Two-bedroom units began 2020 at $1,346 and have risen to $1,359, a slight gain of 0.97 percent.

In contrast, the median one-bedroom rent in Texas was $1,054 in January. It fell to $1,005 in October, a significant 4.7 percent decrease. Two-bedroom units that began 2020 at a median $1,306 dropped 2.3 percent to $1,276 in October.

The declines in Texas can be attributed, at least in part, to oil prices, notes Abodo. West Texas Intermediate crude prices have fallen to $40 per barrel, from a high of nearly $60 per barrel. This, of course, is a big jump from oil’s record 2020 lows, but it's still well below the point of profitability for most oil companies, Abodo says.

Abodo recently explained the depth of the West Texas oil bust in terms of lodging prices: “During the recent oil boom, motel prices — even for budget brands like Motel 6 — were commonly listed $350 per night or more. Now, rooms are available for about $50.”

In Midland, apartment rentals have followed suit, with one-bedroom prices dropping 17.2 percent since January and two-bedroom prices drastically falling 21.1 percent.

The cost of oil and other challenges in apartment leasing amid the pandemic have impacted Texas rent prices, and Abodo expects statewide rents to stay at their current levels or decrease slightly as we head into 2021.

The Metroplex, however, bucks the downward Texas trend. In Fort Worth, one-bedroom units began the year at a median $1,123 and rose to $1,184 in October. Two-bedroom apartments are up from $1,363 in January to $1,480 in October.

Dallas has seen similar increases. One-bedroom units rose from $1,208 in January to $1,250 in October. Two-bedrooms climbed from $1,450 at the beginning of the year to $1,536 this month.

Both rental markets have shown remarkable stability, according to Abodo. While some high-end units have failed to climb in price, DFW has been a magnet for those from colder climates and less robust economic communities looking for a new start, and that has pushed rent prices higher. Signs point to a solid 2021 rental market for the Metroplex as the economy recovers, Abodo says.

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T-Shirt News

Fort Worth clothing brand Dickies to relocate HQ to California

Dickies

Dickies T-shirt

After more than a century, workwear clothing brand Dickies is leaving Fort Worth for new headquarters on the West Coast. It will be moving from its current space at 500 Taylor St., at the top floor of The Tower, to California, with an estimated completion date of late spring 2025.

The company is relocating to Costa Mesa, home of its parent VF Corp, the footwear and apparel firm that owns brands such as Vans, The North Face, Timberland, Jansport, and Eastpak; VF Corp acquired Dickies in 2017.

"By co-locating Dickies with our Vans team in Costa Mesa, we will create an even more vibrant campus where creativity and best practice sharing can thrive through greater collaboration and connections – creating a dynamic and innovative environment similar to our other VF co-branded offices," says a Dickies representative in a statement, according to NBC 5.

According to Dickies, about 120 employees at the headquarters will be affected, but not those working at the local distribution facility, warehouses, and stores.

"We are deeply grateful for our Dickies associates’ dedication and hard work and want to recognize the camaraderie and commitment they have shown to the brand," the Dickies representative said in a statement. "Our priority is to ensure that everyone is treated with respect and care throughout this process. We will provide resources and assistance to help them navigate the next steps in their careers."

Fort Worth Mayor Mattie Parker chimed in on the relocation decision, stating that it's an example of a Fort Worth success story.

"While we understand companies are sometimes forced to make difficult budget decisions under new leadership, we think VFC will find – as others have – that Fort Worth, Texas is ultimately a more competitive place to do business,” Parker said in a statement.

Established in Fort Worth in 1922, Dickies brand impact, which was first founded by C.N. Williamson and E.E. "Colonel" Dickie, will still be felt, even after it leaves the city: In 2017, it gained naming rights to the 14,000 square-foot Dickies Arena next to the Will Rogers Memorial Center, and later opened in 2019.

According to the company, the California move will be managed over an "extended transition period." It's expected to be completed by May 2025.

"While this was a tough call, we are confident this change will help us revitalize Dickies so we can carry on the brand’s heritage for years to come," said the company representative.

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