Spotlight On: Bill Cawley, CEO, Cawley Partners
December 2024 — In an interview with Invest:, Bill Cawley, CEO of real estate investment company Cawley Partners, said the Dallas-Fort Worth metroplex has tremendous growth potential. He outlined emerging trends in the multifamily, residential, and industrial sector, and the prospects for Dallas as a growth market. “The Dallas-Fort Worth metroplex, including Arlington, is truly “Ground Zero” for growth. Dallas is on track to become a more significant city each year,” he said.
What have been some significant projects and achievements for Cawley in North Texas?
This year has been slower than most for us. We are focusing on gaining clarity before making investments. Office building group from an acquisition and development perspective is down considerably. However, we do have a lot in the pipeline, and we believe that the next couple of years will present better opportunities on the office side. Our industrial group has been particularly busy; we have been buying a significant amount of land and speculating on it. From an industrial perspective, we are well-positioned, with controlled land ready for development.
Our multifamily group has been actively buying sites, although it has been challenging to make the economics of new development work. Recently, we purchased a prime site in Preston Center in Dallas, which we believe is irreplaceable, as well as a site in Highland Park. We have several opportunities that we expect to put into production next year and in 2026. As the economy continues to improve, we think interest rates will eventually come down, though I am cautious about any significant reduction as long as inflation remains high. Nonetheless, we anticipate an increased willingness among tenants to pay rents for new construction, so we expect to be busier next year and the following year.
What makes Dallas-Fort Worth an ideal location for Cawley Partners?
In migration is a major factor saving the Dallas-Fort Worth area. There are 400 to 500 people moving to Dallas every day. The Sun Belt region is pro-business, which makes it easier to operate and creates numerous opportunities. Growth is welcomed here, unlike some areas that tend to resist it. Dallas, along with other major Texas cities like Houston, San Antonio, and Austin, stands to benefit for a long time. However, I am confident that Dallas will be the biggest winner in Texas.
Dallas has been ranked as the top emerging real estate market for 2025. How does this recognition influence your investment and development strategies?
I believe this market will outperform others. Having conducted business here for a long time, I am confident in my understanding of where the market is headed. In the office sector, the primary risk is not whether we can lease space, in fact the risk lies in what the building will be worth upon completion and what buyers will be willing to pay.
Currently, there is essentially no market for selling office buildings, so it is about maintaining occupancy and extending loans to protect values, which are down. However, I am optimistic that the market will recover, and likely faster than anticipated. I am bullish about the Dallas-Fort Worth market, but we are not quite ready to buy office properties yet. I believe that, in the next 18 months, we will start investing in that area again.
What trends are you noticing in the office market, and what are you looking to incorporate into your projects?
The trend in Dallas is much the same as elsewhere as it all comes down to the commute. Many people have grown accustomed to working from home, but some industries need employees back in the office to foster collaboration. This has made drive time a key consideration. Consequently, buildings need to be well-located and packed with amenities to create an environment that employees are eager to return to. People are willing to pay higher rents for high-quality spaces that appeal to employees.
We see well-located buildings continuing to perform well, though the tenant mix may change. It is essential to buy assets with a good reason for being there. Not every building has to be walkable to succeed, but the most successful ones are often higher-end. We own 12 buildings, and all but one are over 90% occupied. We are not offering rent concessions, as rents have held steady, and we maintain occupancy by attracting smaller tenants and controlling tenant improvement costs. However, poorly located and poorly designed office buildings are likely to be sold for land value. There is a trend of flushing out poorly conceived projects that should never have been built.
What trends are you seeing in industrial and multifamily?
Multifamily is overbuilt, but there are few new deliveries. I believe demand will catch up to supply over the next 18 months, which will likely lead to a spike in rents due to undersupply. Starting new projects in the right markets, such as Dallas, will be ideal in the coming years. Although Dallas is among the most overbuilt multifamily markets in the country, the steady influx of people moving here suggests that, in 18 to 24 months, the situation will shift.
On the industrial side, it is a bit of a frenzy. People are still willing to pay a premium for industrial properties. Leasing has slowed, but it remains an incredibly vibrant sector.
Do you think the recent elections have had an impact on the market, especially regarding new deals?
I remain bullish on the United States and I’m especially optimistic about the Texas economy as the industrial demand remains strong. Buildings are still leasing, though at a slower pace; however, interest rates present a challenge. Many people expect rates to decrease, but I would not be surprised to see them hold steady or even increase. Therefore, we are waiting for the right opportunities to emerge. Since we are not a large company with overhead pressures, we can afford to act only when it makes strategic sense.
What are some regions or areas that you believe have great potential for business growth?
The Dallas-Fort Worth metroplex, including Arlington, is truly “Ground Zero” for growth. Dallas is on track to become a more significant city each year. I see evidence of that in the worsening traffic, increased infrastructure investment, and the available land and resources. There is a strong drive here, and many people in this market have a “can-do” attitude. I am confident that Dallas is ready for the growth ahead, and I am excited to be part of it.
What are some of the ways you and your company give back to the local community?
Our company places a high value on giving back. Each year, we select several charities to support, not just financially but also through service. One example is the Minnie’s Food Pantry in Plano, where we have been actively involved. There are about five or six charities we support regularly.
We believe in more than just writing checks as we want to go out and actively serve. While there is value in donating, there is even more reward in personally giving your time and effort. You gain perspective and receive more than you give every time.
What are your top priorities for the company in the near term?
I am fortunate to be in a market that is, and will likely remain, stronger than most. I am currently working with the best team I have ever had. They are a group that is both cohesive and content, bringing together a great mix of experience and youthful energy.
Having young people on my team provides me with a broader view on opportunities than I might have on my own. Experience has a way of making you more conservative, so I value the fresh perspectives that younger team members bring. We aim to focus on projects that we are proud of, that benefit the city, and that generate good returns for our investors. It is a simple but powerful approach.
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