D CEO Real Estate Annual 2019 by DCEO

REAL ESTATE ANNUAL 2019

CEO

‘IRON SHARPENS IRON’ How the three largest global real estate firms duke it out in Dallas

Michael Caffey, Ran Holman, and David Carroll

BLOCKBUSTER DEALS Top leases and sales of 2018

OPPORTUNITY ZONES Everything you need to know

2019 MARKET OUTLOOK Experts weigh in on what’s ahead

WWW.DCEOMAGAZINE.COM

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Blast off or bust Blast off or bust

Go Beyond Go Beyond

H E LP I NG YOU R B US I N E S S R EACH N EW LEVE LS H E LP I NG YOU R B US I N E S S R EACH N EW LEVE LS

Today’s market is no longer about who you were, it’s about who and where you are going to be tomorrow. Today’s market is no longer about who you were, it’s about who and where you are going to be tomorrow.

Equity Equity is nowis defined through driving innovation, implementing technology roadmaps, navigating a now defined through driving innovation, implementing technology roadmaps, navigating a transforming compliance landscape andand understanding how wealth.Success Success requires transforming compliance landscape understanding howtotoproperly properly transfer transfer wealth. requires a partner that has back,back, and and knowledge combined help you youblast blastoffoffabove above a partner thatyour has your knowledge combinedwith withcreativity creativity to to help andand you need to Armanino be. Armanino is an agile,vested vestedstrategic strategic partner partner that status beyondbeyond wherewhere you need to be. is an agile, thatchallenges challengesthethe status quogenerates and generates fearless creative insights which leadstotostrategic strategic growth. growth. Our andand quo and fearless creative insights which leads Ourstrategic strategicthinking thinking insights address your toughest challenges take youtotonew newlevels levels in in the insights address your toughest challenges andand take you the race racetotoinnovation. innovation.

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34 States. 100+ Cities. 5 million SF. One Commercial Real Estate Firm.

3,000

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SF Lease

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SF Lease

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4,253

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158,760 SF Lease

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281,359

SF Sale

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Port St. Lucie, Florida

Dallas, TX

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ELEVATE YOUR EXPECTATIONS FOR WHAT A PARTNERSHIP CAN PROVIDE

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C R E AT E D W I T H

LIFE IN MIND Located just 4 minutes West of the Dallas North Tollway, the Realm at Castle Hills is a master-planned, 324-acre, community offering office, retail and luxury living. Just 15 minutes from DFW airport with exceptional Sam Rayburn/121 visibility, the Realm has something for everyone.

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UP TO

$30,000 CASH GRANT For qualifying Demo/Rebuild projects

The City of Farmers Branch Demo/Rebuild Program is a one-of-a-kind residential home incentive program that offers generous incentives for the demolition and rebuilding of homes in the City. Our vibrant community offers exceptional city services, the finest in public safety, dozens of manicured parks and trails, and Brookhaven Country Club where you can affordably build your dream home against the backdrop of one of the best family clubs in the Dallas area.

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THIS IS WHERE OPPORTUNITY MEETS COMMUNITY.

Put your company in the center of the North Texas business community. Las Colinas provides the best access to the region’s 3.3-million-strong labor force, all of which is within a 30-minute commute. In fact, eight of the 25 largest public companies in DFW choose Las Colinas for its ideal business environment, central location and exceptional quality of life.

• Within 15 minutes of DFW Airport and Love Field • Home to Toyota Music Factory, more than 200 restaurants and other energetic “after-ﬁ ve” destinations

• 27.3 million square feet of oﬃ ce space for every type of user • Headquarters for ExxonMobil, Fluor, KimberlyClark and eight other Fortune 1000 corporations

LASCOLINAS.ORG | 972-541-2345 |

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2019 EDITION

16 Editor’s Note

DIANE BUTLER

26 The Brokerage Business Technology, client demands, and fierce competition are driving profound changes in commercial real estate. Here’s how the ‘Big Three’ are leading the way in Dallas. 32 The Year That Was North Texas was one of the country’s most active markets in 2018. Here are some of the year’s biggest real estate stories.

PHOTOGRAPHY BY BILLY SURFACE

36 Things to Watch in 2019 Projects and trends to keep an eye on in the coming year. 41 The Land of OZ Opportunity Zones could transform the way development gets done in Dallas. Here’s what you need to know.

D C E O M AG A Z I N E .CO M • D C EO R E A L E S TAT E A N N UA L 201 9

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CONTENTS

AT E L I E R

47 A Glimpse Into the Future We turn to the experts for their insider perspectives on Dallas-Fort Worth office market trends, and what to expect in the year ahead. 53 On-The-Ground Insights More than 100 industry leaders share their observations and opinions with D CEO Real Estate. Here are excerpts of top posts from 2018. 60 Turning Dirt A sampling of highly anticipated developments across the region.

84 Milestones DFW loses a real estate legend and sees other industry leaders mark outstanding achievements in 2018

ON THE COVER: Michael Caffey, CBRE; Ran Holman, Cushman & Wakefield; David Carroll, JLL Photo by Shane Kislack

IMAGE COURTESY OF STANTEC ARCHITECTURE

65 Deal Ticker A comprehensive list of the year’s largest leases and sales in the office, industrial, and retail sectors.

D C EO R E A L E S TAT E A N N UA L 2 01 9 • D C E O M AG A Z I N E .CO M

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181129 DCEO January Ad_v3.pdf

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9:23 AM

LIKE WHAT YOU DO. LOVE WHERE YOU DO IT.

CMY

Experience HALL Park’s extensive amenities, including over 200 works of art surrounded by picturesque parks and lakes, three miles of walking trails, a 10,000-square-foot fitness center, outdoor meeting spaces and a bike share program. Enjoy numerous on-site dining options at HALL Park or across the street at The Star. With 162 acres and 17 buildings, we have the space and flexibility to meet your needs.

TOUR OUR AVAILABLE SPACE TODAY: KIM BUTLER, DIRECTOR OF LEASING 972.377.1100 | KBUTLER @ HALLGROUP.COM

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BRAD GIBSON, LEASING MANAGER 972.377.1124 | BGIBSON @ HALLGROUP.COM

HALLPARK.COM CYNTHIA COWEN, LEASING MANAGER 972.377.1101 | CCOWEN @ HALLGROUP.COM

11/30/18 11:28 AM

The Pulse of North Texas Real Estate Your 24/7 source for commercial real estate news in Dallas-Fort Worth, from Editor Jeremiah Jensen and more than 100 industry influencers.

PUBLISHER

Josh Schimmels

EDITORIAL

EDITOR Christine Perez MANAGING EDITOR Brandon J. Call ASSOCIATE EDITORS Jeremiah Jensen, Will Maddox EDITORIAL PROJECTS MANAGER Payton Parker CONTRIBUTING EDITORS Richard Alm, Jeff Bounds,

W. Michael Cox, David Johnson, Thomas Korosec, Steve Thomas EDITORIAL INTERNS Nusaiba Mizan, Alice Zhang

ART

ART DIRECTOR Brian Smith DEPUTY ART DIRECTOR Chetna Bailey STAFF PHOTOGRAPHER Elizabeth Lavin

A DV E R T I S I N G

ADVERTISING DIRECTOR Rhett Taylor ASSOCIATE PUBLISHER OF PROFESSIONAL SERVICES

Kym Smiley Rock

SENIOR ACCOUNT EXECUTIVE Lisa McLaren ADVERTISING ACCOUNT EXECUTIVES Haley Muse,

Paulina Szczsponik, Alexys Upcheshaw ADVERTISING COORDINATOR Hailey Onuscheck CLIENT OPERATIONS MANAGERS Erin Nicholson, Bernadette Ramirez, Tracy Regan ONLINE DIRECTORY SALES Adam McDonald MANAGING EDITOR OF SPECIAL SECTIONS

Jennifer Sander Hayes INTERNS Anna Beeck, Ashley Fernstedt

MARKETING

DIRECTOR Gillea Allison EVENTS DIRECTOR Cami Burke BRAND MANAGER Carly Mann ADVERTISING MARKETING MANAGER Tyler Shahin ASSOCIATE ADVERTISING ART DIRECTOR Katie Garza EVENTS INTERNS Brett Roulette, Grace Williams

AU D I E N C E D E V E LO P M E N T DIRECTOR Amanda Hammer MANAGER Marrissa Robinson NEWSSTAND CONSULTANT The Centofante

Group

PRODUCTION

REAL ESTATE Reports on North Texas Commercial Property Deals

DIRECTOR John Gay MANAGER Morganne Stewart DIGITAL IMAGING SPECIALIST Natalie INTERN Kristin Decker

Goff

BUSINESS

CONTROLLER Debbie Travis ACCOUNTING MANAGER Sabrina LaTorre STAFF ACCOUNTANT Lesley Killen PAYROLL COORDINATOR Alma Ritter BILLING & COLLECTIONS COORDINATOR

Jessica Mendoza IT MANAGER Matt Shelley IT SYSTEMS SPECIALIST Michael Scroggins

ASSISTANT TO THE CHAIRMAN & CEO/ ADMINISTRATIVE COORDINATOR Rachel Gill ADMINISTRATIVE ASSISTANT Molly White

WEB

EDITORIAL DIRECTOR Matt Goodman ONLINE MANAGING EDITORS Caitlin Clarke,

Shinneman

LEAD DEVELOPER Christina Rees BACK END DEVELOPER Baker Ousely DIGITAL ART DIRECTOR Jessica Chen PRODUCTION ASSOCIATE Emily Olson WEB EDITORIAL INTERNS Moriah Forbes,

Hughes, Amina Khan

realestate.dmagazine.com

Shawn

Paige

MAIL 750 N. Saint Paul St., Ste. 2100, Dallas, TX 75201 The magazine assumes no responsibility for the return of unsolicited manuscripts. WEBSITE www.dmagazine.com/publications/d-ceo MAIN OFFICE 214-939-3636 ADVERTISING 214-939-3636 x 128 SUBSCRIPTION SERVICES For immediate assistance, call 214-939-3636 x 232. For other inquiries, e-mail customerservice@dmagazine.us. REPRINTS 214-939-3636 SUBSCRIPTIONS 11 issues for $54 in the United States, possessions, APO and FPO; $70 per 11 issues elsewhere. Please provide old and new addresses and enclose latest mailing label when inquiring about your subscription. For custom publishing inquiries, call 214-540-0113.

D M A G A Z I N E PA R T N E R S

CHAIRMAN AND CEO Wick Allison PRESIDENT Christine Allison CHIEF FINANCIAL OFFICER Thomas L. Earnshaw GROUP PUBLISHER Phyllis Cole McKnight

D C EO R E A L E S TAT E A N N UA L 201 9 • D C E O M AG A Z I N E .CO M

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COMMERCIA L

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ESTAT E

SER V I C E S

BE YOUR OWN SUNSHINE. -S A R A H

S AVAG E

214.294.4400 YOUNGERPARTNERS.COM

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EDITOR’S NOTE

Car-Free, Just Like Me By 2030, only 20 percent of Americans will own a car, a new study finds. It could be a game-changer for real estate.

AWARD-WINNING COMMERCIAL DEVELOPMENTS IDEAL FOR CORPORATE RELOCATIONS UPSCALE LIVING & RECREATION IN THE HEART OF D/FW METROPLEX

TEXAS DESTINATION FOR

Keri Samford

a friend back in Dallas. I had loaned him my car while I was out of town, and he was letting me know that he had been in an accident. No one was hurt, he reassured me, but he was at fault, and both cars needed to be towed. With two 20-something sons, I had learned to invest in good car insurance over the years, so I wasn’t worried. I figured both vehicles would be repaired, and we’d all move on. As it turned out, the mishap was more than a fenderbender; both cars were totaled. Upon hearing the news, my oldest son Jordan, who works in sales for Mercedes-Benz, began talking up a friends-and-family discount. “Hold on,” I told him. “I’m thinking of going car-free.” I liked my Prius, but in the two years since trading suburban digs in Coppell for a downtown high-rise, I had found myself getting behind the wheel less and less. I walk a short three blocks to work, take DART when I need to go to the airport, and had been using the McKinney Avenue Trolley more often for trips to Whole Foods, Walgreens, and other places in Uptown. One of the questions we ask execs in Dallas 500 interviews is what kind of car they drive. This year, more than a handful responded: “Uber.” It made sense. I added up what I’d save with no car payment, insurance, parking, gas, and maintenance, and it was a significant chunk of change. According to a Business Insider report, just 20 percent of Americans will own a car by 2030. Instead, they’ll rely on electric-vehicle ride-shares or autonomous vehicles to get to and from. Gensler says today, the average privately owned car is in use just 5 percent of the time. The design firm puts America’s parking footprint at 500 million spaces—the equivalent of Delaware and Rhode Island combined. That’s a lot of real estate. So, what does it mean for the future of the industry? Some argue that a move away from car ownership could drive up the value of land around rail systems and transit hubs; or, it could do the opposite, if people favor rideshare or autonomous vehicles over public transportation. It also will lead to major parking lot and garage redevelopment opportunities. One thing I know for sure: It has been two months, and not once have I missed owning a car.

Executive Director of Development

972.624.3127 edc@thecolonytx.org www.TheColonyEDC.org

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Christine Perez Editor

p h o to g r a p hy by E L I Z A B E T H L A V I N

I WAS IN SWITZERLAND, still coming out of a jet-lag fog, when I got a call from

12/4/18 9:20 AM

CELEBRATING 15 YEARS

3 MILLION SF OF REAL ESTATE ACQUISITIONS AND DEVELOPMENTS IN 2018

Rockwell Automation

FormFactor Corporate HQ

CLEVELAND, OH

LIVERMORE, CA

ESAB Center of Excellence

University Highlands

DENTON, TX

CHARLOTTE, NC

I20/161 Crossing DALLAS, TX

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14643 Dallas Parkway, Suite 1000

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214.273.8656

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AG E N DA : R E A L E S TAT E A N N UA L PA R T Y

Thomas Stockton and Jeffrey Blakely

Chad Hennings and Alexis Martinez

Scott Morse and Liz Trocchio Smith

Bob Acuff, John Conger, and Tom Sutherland Greg Hoffman, David Quisenberry, Mary Stoner Yost, and Anthony Chammah

Stacy Dean Stephens, Jeffrey Blakely, Sam Ware, and Jeff Ellerman

JD Lawrence, Mike Hoque, Don Dowell, and Alexander Quintanilla

D CEO Real Estate Annual Release Party in Plano was the setting for a January event celebrating the release of the 2018 D CEO Real Estate Annual. Leading North Texas brokers and contributing editors for D CEO’s real estate news site turned out for the invitation-only reception. Special thanks to our sponsors: The Campus at Legacy West, CBRE, Colliers International, Davidson Bogel Real Estate, Gateway Planning, Jackson Walker, and Kimley-Horn. THE CAMPUS AT LEGACY WEST

Will Haynes II, Susan Arledge, David Cochran, and Andrew Schendle

P h o to g r a p hy by B R E T R E D M A N

Brettany Schovanec, Carlie Wilmes, Jeremy Duggins

D C EO R E A L E S TAT E A N N UA L 201 9 • D C E O M AG A Z I N E .CO M

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A real estate strategy has a greater return when it supports the largest investment—

PEOPLE.

Every business and every person within them are unique. A workplace has the ability to dramatically affect the dynamic of a company. When employees feel supported and inspired by their workplace, communication, productivity and value increase, generating prosperity for our clients and directly contributing to their bottom line.

www.spencerandco.com | 150 Turtle Creek Blvd, Suite 205, Dallas, TX 75207 | #ExperienceSpencer

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AGENDA: POWER BROKERS

Michelle Hudson, Kirby White, and Melanie Hughes

Alexander Renwick and Rodney Jackson

Phil Puckett and Joel Pustmueller

D CEO’s 2018 Power Brokers M O R E T H A N 2 5 0 O F TH E RE GIO N'S top commercial real estate pros attended D CEO’s ninth annual 2018 Power Brokers event in February. Held on the 42nd floor of Bank of America Plaza in downtown Dallas, the event honored dealmakers in the office, retail, industrial, data center, and investment sales sectors. Many thanks to our host, Bank of America Plaza, and to event sponsors Davidson Bogel Real Estate, Downtown Dallas Inc., Peloton Commercial Real Estate, and Scott + Reid General Contractors.

Jeff Drummond and Trey McDonald

Kelvin Sellers and Cheree Sellers

Tom Dempsey and Russ Johnson

am Bernhardt d Reid, and Ad Chris Scott, Bra

Brad Gibson, Bob Buell, Gini Dibrell, and Trevor Franke

p h o to g r a p hy by B R E T R E D M A N

Frank McCafferty, Charles Daggett, Dina Zavislak, and Stephen Hemphill

D C EO R E A L E S TAT E A N N UA L 201 9 • D C E O M AG A Z I N E .CO M

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TEXAS DFWNORTH METROPLEX

YOU FOUND THE SWEET SPOT. Welcome to Addison, where you’re 15 minutes from anywhere in Dallas. There are more than 1,600 businesses here, surrounded by 180 restaurants, 22 hotels and the number one ranked general aviation airport in Texas. With over 10 million square feet of office space, highly qualified workers in every field close by and a city government dedicated to helping you succeed, it’s no wonder NerdWallet voted Addison the #1 city in Texas to start a business. AddisonED.com • 972.450.7076

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AG E N DA : C O M M E R C I A L R E A L E S TAT E AWA R D S

Will Haynes II, Chelsea Story, Mary Stoner Yost, and Renee Castillo

Billy Vaughn, Garry Grier, and

Bill Shaddock

Commercial Real Estate Awards Katie Edger, Ray Kane, and Terry Syler

Brent Strong, Tracie Frazier, Scott Ozymy, and Sydney Townsend

D CE O HOSTED I TS A N N UA L Commercial Real Estate Awards program honoring the top real estate pros in March at Gilley's. Attendees enjoyed networking and cocktails, as well as a presentation from D Magazine Partners Chairman and CEO Wick Allison. D CEO was proud to partner with title sponsors The Campus at Legacy West, Capital Title Commercial, Centurion American, and Davidson Bogel Real Estate. The event has become a premier night for DallasFort Worth’s commercial real estate community, bringing together some of the industry’s most influential players.

Pleas Mitchell, Joe Haver, and Kurt Petersen

Phil Puckett, Kim Puckett, Michelle Savage, and Jack Savage

p h o to g r a p hy by M A T T S H E L L E Y

Scot Farber, Milton Anderson, Ryan Duffie, and Chris Harden

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Introducing The Epic, a contemporar y 16-stor y office tower within a momentous mixed-use development. The 251,000 SF Class A A workspace features a fitness center, private terraces, chef-driven restaurant, destination dispatch elevators, and a seventh floor outdoor deck with year-round amenities and dramatic downtown views.

For leasing inquiries, contact CBRE: Tommy Nelson | 214.979.6519 | Thomas.Nelson2@cbre.com; Dennis Barnes | 214.979.6308 | Dennis.Barnes@cbre.com; or Ben Davis | 214.979.6336 | Ben.Davis@cbre.com

2550 PACIFIC AVENUE | DALL AS, TX 75226 | THEEPICDALL AS.COM | OPENING 2019 The designs, features and amenities depicted by ar tist’s or computer rendering are subject to change and no assur ance is made that the project will be of the same nature as depicted or described or that the project will be constr ucted.

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AGENDA: DALLAS 500

Phil Romano, Steve Lieberman, Sam Romano, and Robert Shaw

Dallas 500 Release Party A NUMBER OF REAL ESTATE MOVERS and shakers attended

the release party for D CEO’s annual Dallas 500, held in November at the Nasher Sculpture Center. The publication recognizes the most influential and powerful business leaders in the North Texas region, including commercial real estate developers, investors, architects, brokers, and other industry executives. Special thanks to our event sponsor, BLNelson Group, and caterer, Wolfgang Puck.

Jake Wagner, Caroline Wagner, Katherine Wagner, and Pete Wagner

y Cooper, rrick Evers, Rand Eric Krueger, De gs Big eg Gr d an

Brittany Lowe and Scott Lowe

Jeff Drummond and Trey McDonald

Kelvin Sellers and Cheree Sellers

Andre Staffelbach, Jo Hein z Staffelbach, and Jeremy Strick

Terrence Maiden, Diane Butler, and Dale Petroskey

Mike Ablon, Shawn Todd, Cheryl Todd, Heather Holman, and Ran Holman

p h o to g r a p hy by B R E T R E D M A N

Craig Hall, Kim Butler, and Beth Lambert

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Welcome to the family. Allen is home to many businesses, and we’re proud of every single one. From our diverse, well-educated population to our business-friendly economic development corporation, we give the companies that call us home the tools they need to succeed. To find out if this is the family for you, visit AllenEDC.com.

The Place to Raise Your Business

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THE BROK ER AGE BUSINESS TECHNOLOGY, CLIENT DEMANDS, AND FIERCE COMPETITION ARE DRIVING PROFOUND CHANGES IN COMMERCIAL REAL ESTATE. HERE’S HOW THE ‘BIG THREE’ ARE LEADING THE WAY IN DALLAS.

DALLAS HAS long been known as a real estate town. Some of the country’s most prolific developers and industry innovators got their start here. And, although they may officially be based elsewhere, the world’s three largest commercial real estate companies have key global executives and significant operations in Dallas. We recently sat down with leaders of these powerhouse firms to talk about the rapidly evolving industry and operating with a spirit of “cooperatition.”

By Christine Perez PORTR AIT BY SHANE KISL ACK

DAVID CARROLL Market Director, JLL

D C EO R E A L E S TAT E A N N UA L 2 01 9 • D C E O M AG A Z I N E .CO M

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RAN HOLMAN

MICHAEL CAFFEY

Managing Principal, Cushman & Wakefield

Division President, CBRE

D C E O M AG A Z I N E .CO M • D C EO R E A L E S TAT E A N N UA L 201 9

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MICHAEL CAFFEY: When I moved to Dallas in 1990 after gradu-

then, we had overbuilt the market so significantly, the local paper said we had a 30-year supply of office space. From CB, I went to work for Vantage, then joined Bill Cawley, chasing development and brokerage. Then CBRE recruited me to be the Dallas leader, which I did from the mid-1990s to right around 2000. It was a much smaller enterprise; the job I had was a fraction of what Mike is doing now, but still a great honor to work for a great firm. But then the development piece still haunted me, so I went to work for Opus & Hines, and then the opportunity with Cushman & Wakefield, once the new platform had been put together with Cassidy Turley. The opportunity to be a part of the new culture and joining these guys on the global platform was just too exciting.

ating from the University of Mississippi, I had an awareness that there was a large community of commercial real estate people who seemed to be very active in the community. There was a lot of wealth that had been created. At the same time, a lot of those people had suffered through the downturn. But there was still this very positive attitude about growing and building things. And that still exists today in our community. It’s the backbone of the Dallas-Fort Worth area. Commercial real estate is a big part of that. And that was very appealing. I got into commercial real estate in 1994 with Grubb & Ellis. I spent two years with the retail leasing group then left to become an office leasing broker at a boutique firm that ultimately became part of Jones Lang LaSalle. For about 10 years, I did YOU’RE THE BIG THREE. WHAT DOES THAT MEAN IN TERMS OF transaction work all over the U.S. and throughout Mexico and COMPETITION, LOCALLY? South America. From there I joined the Trammell Crow Co., HOLMAN: There’s an incredible amount of talent in this town. in what was then known as global corporate solutions. After CBRE and JLL are legacies of titans in the industry—Trammell CBRE acquired Trammell Crow, I oversaw what was then the Crow and Roger Staubach. It’s remarkably competitive here. tenant rep group and shortly thereafter took over the market But what we all love about it is iron sharpens iron. We are all leader position, which I still have today. From a domestic better for the competition, and the ultimate winners are our standpoint, I lead Texas, Oklahoma, Louisiana, and Arkansas. clients. We have to be better. We have to push the envelope. From an international standpoint, I oversee all of Latin America. To compete with these guys, we have to be on our game, all the time. DAVID CARROLL: I got into real estate in 1998. I went to the Air Force Academy and served for five years, then finished grad CARROLL: We have a lot of great boutiques in Dallas, but being school and was recruited by what at the time was LaSalle part of a big platform allows you to be very entrepreneurial, Partners. I started out in property management; my first job too. You can get done what you need to get done for clients. was working as an assistant property manager of an office The big platforms are not slower to move; they can bring more building in Las Colinas. In the 20 years since, there has been to bear for clients. a lot of change—for all of us. We were thought of as a Chicago HOLMAN: We used to be in the deal business; we used to transcompany for a long time. Merging with The Staubach Co., 11 act. And now we are far and away in the service business. We years ago now, really established our Texas roots. Dallas has a have to find solutions that are compelling for our clients. We can-do attitude. It’s a belief that, ‘We can do anything.’ People like to say, ‘One size fits one.’ The ability to take all the tools here have a lot of pride in our city. And that pride is infectious. and tailor something that’s relevant to our clients—that’s the So, I started in property management and eventually ran the business we’re in now. It’s just a different game. service line for Texas and Louisiana. When we merged with The CAFFEY: Clients are asking us to advise them on a multitude Staubach Co., I became the chief operating officer of the region. of different things. The advisory part is the value-added part It includes Dallas-Fort Worth, Austin, San Antonio, a couple of any of the transaction-oriented businesses. We look at of offices in Oklahoma, as well as Kansas and New Mexico. numerous things, ranging from the cost of labor to the cost asHOLMAN: I got into the business after getting out of school in 1986, going to work for what was then SNAPSHOT: THE BIG THREE GLOBAL REAL ESTATE FIRMS Coldwell Banker Commercial, now CBRE. I initially worked in what we called a data bank, then moved into brokerage. At that time you could still CBRE JLL Cushman & Wakefield lease buildings and do tenant rep, so I did a little Total global employees: Total global employees: Total global employees: bit of both. My father was a developer and I grew 80,000 80,000 48,000 up around real estate folks, and there was just a DFW employees: 1,400 DFW employees: 455 DFW employees: 408 vigor about the industry. I never considered doing Transaction volume Transaction volume Transaction volume anything else. I always wanted to be a developer. (2017): $14.2 billion (2017): $7.9 billion (2017): $6.9 billion When I got into the business it was like the fireman Year founded: 1906 Year founded: 1872 Year founded: 1917 running into a burning building while everyone Headquarters: Headquarters: Headquarters: was running out. The Tax Reform Act, the savings Los Angeles Chicago Chicago and loan crisis—our market was in disarray. It’s Global CEO: Global CEO: Global CEO: completely antithetical to what it is now. Right now Robert E. Sulentic Christian Ulbrich W. Brett White Dallas is a jewel, as is Texas in general. But back

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LET’S START WITH HOW YOU GOT INTO THE BUSINESS.

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sociated with moving products from manufacturing facilities “The ability to have agile space, which all the way to the consumer. The list goes on and on, and it allows employees to work in any will continue to evolve in the number of different environments at future. We are investing to try any given point of the day, is absolutely to put ourselves in as position where we can harness data where we are going.” that allows us to turn around MICHAEL CAFFEY, CBRE and provide solutions in a very efficient manner, that drives a high level of value back to our clients. That is the future of and how we communicate. The challenge for all of us is harnessing that. It’s not just our industry, it’s every industry. So, this business. we are constantly looking at it and reinvesting in technology CARROLL: The real estate transaction is the last step in that whole consulting process. It’s about labor—how do we recruit and determining how we can use information in a way that is and retain the best people, how do we operate within our space. powerful for clients. It’s a challenge keeping up. It’s moving Clients expect us to help create solutions for their businesses. so quickly right now. And if you ignore it or decide to figure it Real estate is a fraction of the cost of labor. It’s a human capital out later, you’re just going to be left behind. question now, more than it has ever been. And there is that HOLMAN: What’s fascinating is, with all of this technology, the expectation of leveraging technology and data to help clients human element is still central. If computers could be providing make decisions. The business is completely different from these services, they’d already be doing it. what it was 10 years ago or even five years ago. CAFFEY: Machines will never replace what the human element HOLMAN: It drives specialization. We have 30 different practice offers. Humans will continue to relationship with humans, but groups that focus on various parts of the business. To be able mechanizing the data and taking it and driving more efficiency to harness that intellect, irrespective of geography, and make into the way we are looking at analysis and humans comit relevant locally, is really important. To help clients figure out municating what that is with each other—that’s the constant. how to configure and use the space, we need to understand CARROLL: Things used to be based on hunches. Now you can their businesses in a way that facilitates a great deal not just actually see how many butts are in seats for how many hours when they move in, but throughout their occupancy. As real a day, how many people are coming and going, and you can estate companies, we have to live that, too. It all comes down make adjustments. Look at unemployment in Texas; it’s a battle to talent, and our offices and the amenities around them are for talent. It comes down to that work experience. How are incredibly important. my employees going to feel about this space? Is it welcoming? Is it a place that encourages teaming and collaboration? The old offices and traditional setups have gone by the wayside. YOU MENTIONED MAKING INVESTMENTS IN TECHNOLOGY. CAN YOU EXPAND UPON THAT? CAFFEY: The ability to have agile space, which allows employees CAFFEY: One of the things Ran alluded to is this whole notion to work in any number of environments that they need, at any of scale. Given that we are dealing with customers of scale in given point of the day, is absolutely where we are going. It’s today’s world, both on the investor side and the occupier side, the ability to build a physical work environment that allows we have to be able to drive solutions to customers across geog- workers to have quiet space or focus space or collaborative raphies and different lines of businesses. To do that requires space, and certainly meeting space. The future is all about an investment in all of the tools that allow you to deliver a working with employees to make sure that the experiences they high level of services. We are investing a large portion of our have while at work go outside of even the work environment. treasury into technology today, into the ability to harness big How do we help facilitate workers to procure lifestyle things, data sets and rationalize that into what can we do for clients. I like apps to have their dry-cleaning done or buying tickets to think technology will pay a larger and larger role inside of real entertainment experiences. estate today, and the scale of our organizations, collectively, CARROLL: Who would have thought five years ago that you’d will allow us to make investments in that. have this concept of activating the tenant experience, where you walk into a building, and all of a sudden things are being HOLMAN: The real estate business used to be almost all art. Now, it’s almost equal portions of art and science. We can’t plan on pushed to your phone, whether it’s a discount or something hunches any more. We have to support it with great data and the else within the amenity base. technology piece that supports it is more important than ever. CAFFEY: It’s not a fad; it’s here to stay. It’s the way people are working and the way they will continue to work in the future. CARROLL: We will always be a relationship business, but it has evolved far beyond that. People talk about us being in the HOLMAN: And it’s not enough to just have the tools. It’s like an fourth industrial revolution, with artificial intelligence and the orchestra; it’s figuring out how to get the tools to play together in Internet of Things, sensor technology, and our connectivity a way that delivers a great experience. That’s the challenge. We

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all work very hard to connect the dots. If our folks don’t know the tools are there or how to get them and use them, there’s no point. CAFFEY: All of these things that are being built; they have to be adopted to see the return on what we’re investing in. The adoption of tools and technology is absolutely critical. Sometimes the most highly tenured employees are the most reluctant to change. HOLMAN: You have to pair them up with someone who’s younger; the whole mentor-mentee relationship becomes something new. CARROLL: It’s not just being aware of the expertise we have in Dallas, it’s national expertise and global expertise. You may not need it every day, but you need to be aware that it exists, so you can go pull it in when you need it ... Just think about the first step we’ve gone through, of just harnessing the knowledge and information our organizations already had. It used to be that someone would have some comps over here on this computer, and information would be in the finance group. And those systems didn’t talk to each other. Now, we’re moving toward the great data lake, where all of this information flows in together and you can collectively harness it. HOLMAN: It used to sit in drawers. CARROLL: Right. And not be shared. HOLMAN: Exactly. And the shelf life today is nonexistent. It moves so fast and needs to perpetually be updated. It’s actionable data that we’re trying to purvey. Our job is to distill it and use it to help clients make decisions. CARROLL: Clients are no longer looking for a monthly report; they’re looking for real-time data. ALL OF YOUR COMPANIES ARE PUBLICLY TRADED. HOW DOES THIS AFFECT THE COMPETITIVE LANDSCAPE? CARROLL: It gives us the resources to go much deeper. As we talk to other, smaller firms, their big challenge is keeping up. They see where the industry is going, and it’s technology and it’s data. At the end of the day, you have to have the resources to invest to leverage that. You look at consolidation in the industry, and some of that is being driven by the realization that the game is changing, and a need to be part of a platform that can bring technology to bear. CAFFEY: It’s a very capital-intensive business to continue to operate at scale. As a publicly traded company there is certainly an advantage there. It also helps you understand your public-

company clients. You get what their needs are, and the level of transparency at which you need to operate. WHAT DO YOU LOVE MOST ABOUT WHAT YOU DO? CARROLL: We are in the people business. We don’t make widgets. So, you have to love people and get out there and every day support them so they can give their best. They will tell you, ‘We don’t need managers; we need leaders.’ People need to know that you care about them and that you’re willing to do anything for them. CAFFEY: Absolutely. Also rewarding is the fact that every day is a new challenge. It’s a very dynamic business that requires you to deal with a multitude of different business needs. The ability to do things to support your employees, to support clients, to make sure that we’re driving wonderful outcomes on their behalf, the ability to grow your enterprise in a multitude of different ways ... is a lot of fun. CARROLL: There is no such thing as a typical day. HOLMAN: I tell my kids, ‘If you know where you are going, every step takes you closer to it or away from it.’ As we look at who we are and who we aspire to be, it’s not enough to just bring in ability. Obviously we want impeccable character, great ability, and we want will. We want people who are motivated to do their best and deliver the best services. If you can get unified around an ideal, you can do some great things. These gentlemen and their firms are formidable competition for us, and we have to be on our game. We’re up for the fight. These guys are up for the fight. We all make each other better. CARROLL: If you look at this industry, it’s fiercely competitive, but also very collegial. We’re all friends outside of the business. HOLMAN: My wife is in sales in another industry. She laughs at how we all get together and have lunch or drinks or whatever. She’ll say, ‘I would never do that with my competition.’ And I tell her, ‘But I love these guys.’” CAFFEY: That’s a great point. I’m not sure if it’s unique to our industry or not, but it does exist within real estate. In a prior life I worked with David, and in a prior life I worked with Ran. We participate in civic and philanthropic endeavors together, and we’re in the community in social ways together. It is incredibly competitive, but it is very collegial, too, as David said. WELL, YOU ALL DO BUSINESS WITH EACH OTHER. SOMEONE ONCE DESCRIBED IT AS ‘COOPERATITION.’

It is a constant touch point. So, you need to make sure you maintain good business relationships with each other. CARROLL: Look at the professionalism in the industry. You have to have confidence in the person sitting across the table from you ... that they’re an expert, a professional who can get this done with you. You’re putting a lot of time and effort into every one of these projects and transactions. We have different business cards and different logos, but at the end of the day, we’ve got to both be committed

“Who would have thought, even a few years ago, that real estate firms would be launching technology funds? We’re evolving into technology companies that do real estate.” DAVID CARROLL, JLL

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CAFFEY:

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to doing the right thing. HOLMAN: It’s like playing basketball with a buddy. You want to crush him on the court, but then you go out for a beer together afterward.

ABOUT WHAT YOU DO?

“It’s like playing basketball with a buddy. You want to crush him on the court, but then you go out for a beer together afterward.”

HOLMAN: Our clients need to know

RAN HOLMAN, CUSHMAN & WAKEFIELD

WHAT IS MOST CHALLENGING

that they are incredibly important to us, and so do our people. That means being available. All of us get pulled in a lot of different directions. Balancing the work demands of the job with the human element of the job is a challenge. We all play leadership roles in the community as well. It pulls us in a lot of directions. I rely on various leaders in my office to tell me where potential blindspots may be developing. Often, the problems we have to troubleshoot—if you can catch them earlier, they’re much easier to process and solve. CAFFEY: I agree with Ran. And on a macro level, it’s managing the pace and volume. It does not turn off. You’re on call on the time. This economic cycle we’ve been in now, for more than eight years, has been nothing short of fantastic. But it’s continual. Taking care of yourself, so you can take care of others, is absolutely essential. CARROLL: We all have to have that servant mindset. You’re serving your clients, you’re serving your teams, and you’re serving your community. Everyone needs to understand that you are there to help. That’s your job, and it really means something. There’s not a finish line on any of this stuff. You’re always constantly asking, “What could we be doing any differently? Where are we not hitting on all cylinders?” HOLMAN: That’s a fantastic point. The game is evolving so much, and it creates a complexity that is sometimes quite challenging. WHAT ROLE DO YOUR DALLAS-FORT WORTH OPERATIONS PLAY WITHIN YOUR FIRMS?

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CAFFEY: We have our local market area, which are all of the local

businesses that support customers in this geographic region. We also have our principal-based businesses, including the Trammell Crow Co. and CBRE Global Investors. A significant part of our shared services organization serving the Americas is located here. Lastly, a fair number of our global corporate leaders operate out of Dallas. CARROLL: We are in a similar situation. We have almost every service line represented in Dallas, and we have local leadership for the region but also national leadership. Dallas-Fort Worth is a big, important, strong market for us. You look at where the future is, and Dallas, with its ongoing growth, will continue to be one of the primary markets where we will invest. HOLMAN: Same story here. We are represented in all the major food groups, in terms of service lines, here in Dallas, multifamily notwithstanding, and we’re solving for that. Our chief operations officer for the Americas is in the Dallas office. For the reasons that David just mentioned, Dallas-Fort Worth and

Texas in general are incredibly important to our firm. The population growth we’re seeing spawns activity in all sectors. This market is vastly important for our firms. WHAT ARE YOUR THOUGHTS ON NOT WINNING AMAZON? CARROLL: Any time there is an opportunity like this, Dallas does a great job of learning from missed opportunities. What was it that didn’t get us across the finish line? Look at what happened after we missed out on Boeing. Every time we have had one of these opportunities, the region has done a great job of asking what we were missing. And we’ll get that same value out of Amazon. HOLMAN: Amazon would have gobbled up a bunch of labor. And the fact is, it was 50,000 jobs. Dallas-Fort Worth has grown by over 100,000 jobs for the past eight years. From an incentives standpoint, Amazon was going to get its pound of flesh. Now Texas has more dry powder for other relocations, that may not be as costly on a per-job basis. If there is a silver lining, that’s it. WHAT ARE YOU GOING KEEP AN EYE ON IN 2019? CARROLL: We’ve been running so fast for so many years. I think

we’re all confident that when we see a downturn, it’s going to be a gradual deceleration. We won’t be falling off a cliff. We’re in the best business market in the country. Any time there is a slow down, we’ll be one of the last markets to go in and always be one of the first markets to come out. CAFFEY: I think you have to add interest rates to that, too, and what affect rising interest rates may have on tempering growth. But the prospects for all of us who live in and operate in the region are very bright. CARROLL: Just look at the optimism here. We’re all proud to be Texans and have that can-do attitude. We have so many things going for us here. Any time a challenge comes up we figure it out and move forward. You love to be part of a city that has that mindset. HOLMAN: Dallas is an area of great affluence and accomplishment. But it’s also another city. If you look at the southern sector of Dallas, there’s fantastic opportunity for growth. As the traffic patterns here continue to evolve, southern Dallas is going to be a more important alternative. There are a lot of initiatives within our industry that we’re all involved in that are aimed at improving the southern sector. But as long as California and Illinois and other states keep doing what they’re doing, we’ll continue to see great opportunities. CAFFEY: It’s the land of plenty.

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THE Y EAR TH AT WAS

NORTH TEXAS WAS ONE OF THE COUNTRY’S MOST ACTIVE MARKETS IN 2018. HERE ARE SOME OF THE YEAR’S BIGGEST REAL ESTATE STORIES. DALLAS-FORT WORTH is not the real estate market it was 10 years ago—or even five years ago. The region has been transformed by big relocations, rehabs, renovations, and new developments that span all sectors and submarkets. Standing out in a market this broad and this brisk isn’t easy, but in 2018, a handful of projects and trends generated more headlines than most. On the following pages, we present our take on the year’s top news stories. Along with analyzing traffic of our D CEO Real Estate site, we asked contributing editors and D CEO Power Brokers to weigh in. And, starting on page 38, we present what to watch in 2019.

By Jeremiah Jensen

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The Missing Link IN THE 11th HOUR of the year—and perhaps, this real estate cycle—Kaizen Development Partners snapped up one of the last remaining tracts in Uptown and announced plans for a new office tower on the site. Dubbed The Link and designed by BOKA Powell, the 22-story, 300,000 square-foot building sill sit on a triangular site formed by the intersections of Cedar Springs Road and Akard and Ashland streets, tying together Victory Park and Uptown. Kaizen, the developer behind the One Bethany office campus in Allen beat out several “blueblood” competitors vying for the prime parcel, which was sold by restaurateur Mike Karns. Thirty-Four Commercial Founder Sarah Hinkley brokered the deal. Kaizen partners Derrick Evers, Nick Summerville, and Lee White were at an executive retreat in October when Karns reached out to them, letting them know he was ready to sell. “One of the things we long for is to use our building as a tool for the city of Dallas to attract new corporate growth,” Summerville says. “While there will be already a lot of existing tenants that will likely vie for the space, it would really mean a lot to us if our building could lead as a tool to attract the next fill-in-the-blank from fill-inthe-blank state.” re n d e i r n g c o u r te s y o f K A I Z E N D E V E L O P M E N T PA R T N E R S

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PGA of America Picks Frisco

AFTER MORE than a year of stringing out its search for a second headquarters location, the e-commerce giant eschewed Dallas-Fort Worth in favor of split operations at Crystal City in Virginia and a site it secured on Long Island. North Texas had pulled together a $600 million economic incentives welcome basket for Amazon in hopes of luring the $5 billion, 8 million-square-foot HQ2 and accompanying 50,000 highpaying jobs. Although it’s never

fun to lose out, civic officials and real estate leaders don’t view it as a setback for Dallas-Fort Worth. Nor does the region’s third-place finish cast doubt on the metro’s ability to attract big corporate relocations in the future. Indeed, there seems to be consensus that Amazon passing up Dallas is for the best, as its advent would have come with many a headache and put a strain on both the region’s infrastructure and its talent pipeline.

The Bullet Train Picks Up Speed TEXAS CAPITAL PARTNERS took a big step forward in its efforts to build a 240mile high-speed-train route between Dallas and Houston in September, when it secured $300 million in financing from Japanese sources. When added to private equity cobbled together from Texans and other investors, the funds pushed Texas Capital over the edge in terms of its ability to finance construction. Once it’s up and running, the bullet train will cut transit time between Houston and Dallas to under 90 minutes, opening up new opportunities for talent sharing and economic synergies. Development of the route is estimated to cost as much as $15 billion.

B e zo s c o u r te s y o f A M A ZO N ; t r a i n c o u r te s y o f T E X A S C A P I TA L PA R T N E R S ; P G A c o u r te s y o f C I T Y O F F R I S CO ; C y p re s s w a te r s c o u r te s y o f B I L L I N G S L E Y CO . ; S m i t h E L I Z A B E T H L AV I N

Losing Out on Amazon’s HQ2

ALREADY A HOTBED FOR sports, Frisco won big in December, when PGA of America selected the bustling suburb as the home of its new national headquarters. The project will also include two championship golf courses, a short course, office space, conference center, retail village, and a 500room Omni resort. Frisco is no stranger to publicprivate partnerships; this time around, the PGA, city, and school district are partnering with Hunt Realty and Omni Stillwater Woods, a joint venture led by Omni Hotels & Resorts, Stillwater Capital, and Woods Capital, which bankrolled Trinity Forest Golf Club in South Dallas. “We felt Frisco was an absolute bullseye for us,” says Darrell Crall, PGA of America’s COO.

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B e zo s c o u r te s y o f A M A ZO N ; t r a i n c o u r te s y o f T E X A S C A P I TA L PA R T N E R S ; a i r p o r t c o u r te s y o f D F W A I R P O R T; C y p re s s w a te r s c o u r te s y o f B I L L I N G S L E Y CO . ; S m i t h E L I Z A B E T H L AV I N

IN JULY, CYPRESS WATERS BAGGED ONE OF THE LARGEST OFFICE LEASES OF THE YEAR: A TWO-BUILDING, 350,000-SQUAREFOOT DEAL WITH NOKIA.

A Banner Year For Cypress Waters CYPRESS WATERS, a mixed-use project more than a decade in the making, had a banner year in 2018, cementing its stature as one of the most successful office parks in the region. Developer Billingsley Co. was already at work on a new corporate campus for Brinker International, when it won a headquarters from Smoothie King, which relocated from Louisiana. And in July, Cypress Waters bagged one of the largest office leases of the year: a two-building, 350,000-square-foot deal with Nokia, which will move more than 2,000 employees to the project. The 1,000-acre development crosses into parts of Dallas, Irving, and Coppell, bounded by North Lake, Belt Line Road, and Interstate 635. Confident in ongoing leasing velocity, Billingsley announced plans in the fall for two new speculative buildings totaling more than 400,000 square feet. The park is designed to accommodate as much as 8.5 million square feet of office space.

Emmitt Smith Gets Back in the Game IN THE SUMMER OF 2017, National Football League Hallof-Famer and former Dallas Cowboy Emmitt Smith left a real estate firm he had founded four years prior, to pursue new ventures. In 2018, he took to the field again with a new company: E Smith Advisors. A subsidiary of Newmark Knight Frank, the new venture operates in multiple markets but is based in Dallas, under Smith’s leadership as chairman. A majority minority-owned firm, E Smith Advisors provides services across the real estate spectrum, leveraging NKF’s resources to supplement its service-centric, boutique model. “Service breeds trust,” Smith said in a statement when the deal was announced in January.

“Service and attention must be consistent throughout the relationship—not just when the lease is ending,” Smith is not putting boundaries on the possibilities but will be paying special attention to activity in the Lone Star State. “We will explore international initiatives but also stay focused on creating commercial real estate opportunities right here in Texas,” Smith said. “I’m competitive by nature, and my goal is for E Smith Advisors to become the largest minorityowned commercial real estate brokerage company in the world.” It was a second big move for NKF, which in July wrapped up its acquisition of Dallasbased boutique advisory firm, Jackson Cooksey.

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Klyde Warren Park 2.0 THE CITY’S CONVENTION and visitor’s bureau is still mulling over office-space options, but its VisitDallas Experience Center is getting a new high-profile venue at Klyde Warren Park. Its move and collaboration with the Woodall Rodgers Park Foundation will kickstart a $76 million expansion, adding 1.2 acres to the park’s western edge. Design and construction are slated to begin in 2019 and the new 20,000-square-foot annex could open as early as 2022. The original 5.2-acre, $110 million Klyde Warren Park was hailed as an engineering feat when it opened in 2012. Since then, it’s had more than six million visitors, created more than $2 billion in economic impact, and driven up values of surrounding properties. The expansion is expected to provide another $850 million in stimulus to the region. Said Woodall Rodgers Park Foundation Chairman Jody Grant: “This project fulfills the vision we outlined when we began talking about decking over Woodall Rodgers a decade ago, and it is the next step in improving the connectivity of the park and the Arts District with the West End, Victory Park, and the Perot Museum.”

SINCE OPENING IN 2012, THE PARK HAS HAD MORE THAN SIX MILLION VISITORS, CREATED MORE THAN $2 BILLION IN ECONOMIC IMPACT, AND DRIVEN UP VALUES OF SURROUNDING PROPERTIES.

Ebby Halliday’s New Day

of HomeServices, succeeded Burleson as the new president and CEO of Ebby Halliday. Kelly joined HomeServices in 2017 and helped lead the company’s acquisitions and technology initiatives. In his new role, Kelly will focus on driving growth and maintaining the high level of customer service for which Ebby Halliday has become known. “Mary Frances and her exceptional leadership team set an incredible level of excellence for the company,” Kelly said in a statement when his appointment was announced. “The opportunity to help lead this iconic company to its next level of growth and performance is both humbling and exciting.”

P a r k c o u r te s y o f K LY D E WA R R E N PA R K ; Ke l l y c o u r te s y o f E B BY H A L L I DAY; B r y a n Towe r F I L E P H O T O ; D a t a C e n te r s S H U T T E R S T O C K

AFTER A LONG and storied tenure as president and CEO of Ebby Halliday Cos., Mary Frances Burleson announced in late 2018 that she was stepping down to focus on the Ebby Halliday Foundation, a nonprofit arm created to honor the legacy and philanthropic efforts of the company’s late namesake, Ebby Halliday. The news came a few months after the 73-year-old residential firm, which closed $8 million in home sales last year, was acquired by HomeServices of America, a Berkshire Hathaway affiliate. Chris Kelly, formerly of ReeceNichols Real Estate–another company under the Berkshire umbrella–and most recently senior counsel

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Deluge of Data Centers IN DALLAS-FORT WORTH’S extremities, a digital empire is quickly and quietly emerging, a couple million square feet at a time. Though they rarely get the headlines that corporate relocations or flashy mixed-use projects enjoy, data centers are playing an ever-more important role in the North Texas economy. DFW’s reputation as a top data center market was only solidified in 2018, as several

notable projects got underway. They include a $500 million data center for Google in Midlothian and a 340,000-square-foot facility for CyrusOne in Allen. According to CBRE, Dallas-Fort Worth’s data center market has experienced the most growth in the U.S. since 2015, expanding by an incredible 150 percent. At midyear, the region had 33MW in new projects underway, and had absorbed 19MW.

P a r k c o u r te s y o f K LY D E WA R R E N PA R K ; Ke l l y c o u r te s y o f E B BY H A L L I DAY; B r y a n Towe r F I L E P H O T O ; D a t a C e n te r s S H U T T E R S T O C K

Baylor Exits Bryan Tower for Deep Ellum IN A MOVE THAT WILL boost ongoing momentum in Deep Ellum but challenge a 1980s-era office tower in the urban core, Baylor Scott & White in August announced plans to develop a new office campus on the eastern edge of downtown Dallas. The 300,000-square-foot, $70 million building will serve as the new lead office for the Texas healthcare giant and corral hundreds of Baylor administrators under one roof. Baylor will begin moving employees from five different locations to the 3700 block of Elm Street when the new building opens in 2020. Bryan Tower, which is in the middle of a massive remodel, will be hardest hit by the move, as Baylor was its largest tenant. Baylor’s vote of confidence in Deep Ellum is indicative of growing push to create an office market in the buzzy neighborhood. A handful of pioneering office projects like The Epic are going up in the neighborhood, which was largely devoid of office space save the coworking startup Common Desk’s original location on Commerce Street.

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W H AT TO WATCH IN

2019

PROJECTS AND TRENDS TO KEEP AN EYE ON IN THE COMING YEAR By Jeremiah Jensen

The Victor

THANKSGIVING TOWER got some welcome news when The Beck Group announced plans to move deeper into the urban core, leasing three floors in the 1.5 million-square-foot highrise on Elm Street. Not long after, Willis Towers Watson revealed plans to consolidate its suburban locations into Ross Tower, where it also leased three floors, and Payless Shoesource took a full floor in Bryan Tower for its corporate offices. Meantime, work began on the $100 million redevelopment of AT&T’s global headquarters on Commerce, between Akard and Field streets. Given the rent differential between office space in Uptown and the central business district, and with a burst of new residential, hotel, retail, and restaurant development underway downtown, occupancy rates should continue to tick up. Thanksgiving Tower

Flurry of Luxury High-Rises URBAN DALLAS IS SUDDENLY seeing the launch of a multitude of ultra-luxury residential towers. They include 41-story Atelier and 25-story HALL Arts Residences in the Dallas Arts District, the 39-story The Victor in Victory Park, the 22-story The McKenzie in KnoxHenderson, and the 60-story AMLI Fountain Place downtown. Designed to catch the wave of downsizing baby boomers, these ivory towers come with top-of-the-line amenities and finish outs. But with so many projects set to deliver at once, questions about occupancy linger.

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T h e V i c to r c o u r te s y o f H I N E S ; T h a n k s g i v i n g Towe r F I L E P H O T O ; C r a n e s : S H U T T E R S T O C K ; T h e D reve r c o u r te s y o f D R E V E R C A P I TA L M A N AG E M E N T

Office Tenants Rediscover Downtown Dallas

Construction Challenges It’s a confounding catch-22. North Texas construction firms are seeing a bounty of new business opportunities, but a stubborn lack of skilled labor and skyrocketing materials costs are putting extreme pressure on project timelines and margins. President Trump’s tariffs on steel, the pre-existing tariffs on Canadian lumber, and

rising interest rates are added complications. Developers and builders will need to get creative to make the numbers work on new endeavors. Also look for the leverage of innovative construction techniques and technology—including modular and prefabricated builds, 3D printing, and automation—to help alleviate the situation.

The Drever

IMPACT OF OPPORTUNITY ZONES

CREATED BY THE TAX CUTS AND JOBS ACT OF 2017, OPPORTUNITY ZONES GIVE INVESTORS A WAY TO AVOID TAXES BY REDEPLOYING CAPITAL GAINS INTO BUSINESSES AND REAL ESTATE IN CHALLENGED AREAS. DFW IS HOME TO 52 ZONES; 18 LIE WITHIN DALLAS CITY LIMITS. To read more about the potential impact of Opportunity Zones in DFW, see page 41.

Stop-and-Start Development Projects EVEN AS OTHERS AROUND THEM prosper, three significant North Texas real estate projects have had problems getting across the finish line. Wade Park, once heralded as part of the former $5 Billion Mile in flourishing Frisco, narrowly escaped foreclosure during several consecutive months, with Atlanta-based Thomas Land & Development experiencing financing woes. Then in early October, Stan Thomas told the Nashville Business Journal that he was securing funding to restart work at the 174-acre site. But two months later, the project was again posted for foreclosure. Then there’s Midtown. Beck Ventures has not made much progress in its redevelopment of Valley View Mall at the high-profile intersection of LBJ Freeway and Preston Road. But KDC/Seritage Growth Properties and Hillwood/EF Properties are pursuing formidable new developments on the fringes of the site. Lastly, there’s The Drever, a $430 million rehab of the 52-story former First National Bank tower in the heart of downtown Dallas. Cienda Partners was announced as a new backer of the project in October. How will these stories play out in the coming year? It is anyone’s guess.

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THE LA ND OF

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OPPORTUNITY ZONES COULD TRANSFORM THE WAY DEVELOPMENT GETS DONE IN DALLAS. HERE’S WHAT YOU NEED TO KNOW.

By Jeremiah Jensen D C E O M AG A Z I N E .CO M • D C EO R E A L E S TAT E A N N UA L 201 9

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They bustle and press through the Art Deco buildings to eat, drink, and be merry. For three weeks and some change, the park is abuzz with laughter, thrilled screams, and fun. But once the State Fair of Texas ends, the park returns to its resting state: sad, empty, and dangerous. Fair Park is Dallas’ problem child. Although the Design District, West End, Deep Ellum, and other downtown neighborhoods are seeing significant renewal, Fair Park languishes in a sea of ugly parking lots, unused and neglected by its city. The same is true of many urban and rural areas across the nation. Over time, poverty in these places becomes entrenched, and the people suffer. Vice and squalor spread like rot and drive away investors, making recovery for these areas ever more difficult. In these fat years of economic bliss, there is no shortage of capital waiting in the wings. But the decades-old war wounds of the Great Recession still ache, and developers remain wary of risk. Funds abound, but investors want little to do with impoverished areas. These are the challenges that Opportunity Zones aim to fix. The brainchild of a Washington, D.C.-based think-tank called Economic Innovation Group, the incentives program found its way into the Tax Cuts and Jobs Act of 2017. The law gave governors a new tool to draw economic stimulus to depressed regions by allowing them to designate a certain percentage of low-income tracts in their states as areas where investors could place their capital gains, whether in businesses or real estate, and receive tax reductions on those gains. Altogether, there are 8,700 Opportunity Zones in the United States. Dallas-Fort Worth is home to 52 of them, and 18 rest within Dallas city limits. Economic development officials and civic lead-

ers are hoping the new tax breaks will spark development in struggling areas, especially South Dallas. Developers, investors, and other real estate players are eager to participate in the program, excited to nurture new markets and obtain the financial benefits. So far, the nitty gritty implementation of the program at the local level is proving complex, and there is still a good deal of regulatory uncertainty surrounding the tax law’s finer points. In spite of this, investors are champing at the bit to begin taking advantage of the program, and Opportunity Funds– mandated coffers for capital gains seeking tax shelters–have been sponging large pools of money to deploy in the zones. One study estimates that during the next few years, Opportunity Funds could raise $30 billion in capital. But because regulatory guidelines are still up in the air, this number might be a gross underestimate of the true pool. In any case, the sheer amount of buzz Opportunity Zones have generated makes them the most interesting development to have taken place in the investment community since Dodd-Frank, and an absolute must-know for those in the commercial real estate field.

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It’s October. And the scent of Fletcher’s corny dogs and deep-fried goodness hangs heavy in the air at Fair Park in Dallas, where hordes of Texans have gathered to honor a Lone Star tradition.

MAPPING OPPORTUNITY

There are 8,700 opportunity zones nationally. Below are the 52 areas designated in North Texas.

WHAT IS THE CRITERIA TO BECOME A QUALIFIED OPPORTUNITY ZONE?

25% m a p c o u r te s y o f T H E R E A L E S TAT E CO U N C I L

The maximum percentage of census tracts a state can designate as Opportunity Zones.

The Program’s Nuts and Bolts In theory, Opportunity Zones are simple enough. But in reality, they are complicated beasts with unresolved details and regulatory soft spots. The first round of proposed regulations came out on Oct. 19, and were largely centered around real estate-specific issues. The second round of proposed regulations is out for comment at the moment, and Treasury Secretary Steve Mnuchin has indicated that he intends to release new guidelines by the end of the year.

20%

The poverty rate a census tract must have to qualify.

80%

The percentage of median income that must not exceed metro or state averages.

But D.C.-based Opportunity Zone specialist Mary Burke Baker, government affairs counselor at K&L Gates, says Mnuchin’s staff is not so sure that will happen. More likely, she says, the new regulations will come out sometime in the first quarter of 2019 and are probably going to be focused on bringing more clarity to questions surrounding investment in businesses operating within the zones. Opportunity Zones are defined as “low-income census tracts nominated by governors and certified

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“Don’t assume that if you think you understand the code and the regulations that you understand all the potential pitfalls.” MARY BURKE BAKER, K&L GATES

• Five-year minimum. To qualify for the first tax break, investors must hold their gains in an Opportunity Fund for a minimum of five years. Upon completion of the five-year period, investors will receive 10 percent reduction on the capital gains tax owed on their original investment. If investors hold their investment for seven years, another 5 percent is knocked off of the capital gains tax. And if they hold it for 10 years, all capital gains taxes on the original investment will be forgiven. Additionally, any appreciation on the investment after 10 years will not be subject to a capital gains tax. • Indirect or direct ownership. To count toward the 90 percent threshold, funds must be distributed in indirect or direct ownership of tangible property used in a business located in an Opportunity Zone. To determine qualifying ownership, property must meet one of two statutes: original use or substantial improvement. Original use occurs when you are the first person to use a property in a zone. Substantial improvement is quantified by investors making improvements to a property that’s equal to or greater than the purchase price of the property. These are the basics. There are a slew of other regulations and unanswered questions covering timelines, the use of working capital for projects, and more. Problems and Pitfalls Though the tax breaks are tantalizing, there are significant risks to leaping before you look when it comes to Opportunity Zone investments. If a fund fails to uphold any of the regulations mentioned above, investors are at risk of losing their tax benefits and getting saddled with a portfolio of riskier than normal assets. “This is not a do-it-yourself project,” Baker says. “The No. 1 thing I tell people is, ‘Don’t assume that if you think you understand the code and the regulations that you understand all the potential pitfalls that you could step into if you don’t proceed with good counsel.’” Cushman & Wakefield Executive Managing Director Beth Lambert says it is absolutely necessary to remain disciplined when putting money into Opportunity Zone projects. “Investors are still going to have to look at the supply and demand factors in those areas because the real estate has to work,” she says. “All these tax benefits are great, but to make sure you’re putting legitimate, needsbased real estate, you’ve still got to underwrite to normal metrics.”

p h o to s c o u r te s y o f CO M PA N I E S

by the U.S. Dept. of Treasury into which investors can now put capital to work financing new projects and enterprises, in exchange for certain federal capital gains tax advantages.” The Real Estate Council recently gathered a small group of Dallas-Fort Worth industry professionals and Opportunity Zone experts to discuss the topic. They provided insight on key points: •Everything begins with the Opportunity Fund. Any investor seeking to take advantage of the tax breaks offered through the program must redeploy their capital gains through a qualified Opportunity Fund. The law requires that “any investment vehicle that is organized as a corporation or a partnership for the purpose of investing in qualified Opportunity Zone property (other than another qualified Opportunity Fund) holds at least 90 percent of its assets in qualified Opportunity Zone property, determined by the average of the percentage of qualified property held in the fund, as measured on the last day of the first six-month period of the taxable year of the fund, and on the last day of the taxable year of the fund.” • Certification required. To receive the designation of qualified Opportunity Fund, a fund must self-certify via a form sent to the IRS along with required tax returns. The designation is given without reservation to funds that self-certify, provided they meet and maintain requirements. Once the fund is established, it can start accruing a war chest of capital gains slated for redeployment in Opportunity Zones. • Open to all tax-payers. Any tax-paying American can invest in an Opportunity Fund. For capital gains to qualify, they must be invested within 180 days of their occurrence. Once in a qualified Opportunity Fund, the capital gains can be redeployed in just about any business within an Opportunity Zone, save certain “sin businesses.” These investments will have their capital gains taxes deferred until Dec. 31, 2026 and qualify for tenure-based capital gains tax reductions.

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Lambert says she sees a concerning lack of thorough void analysis as funds rush to lay claim to their investments in the Opportunity Zones. “My fear is that there will be unsophisticated investors who like the big-picture strategy but don’t do enough of their due diligence,” she says. “It’s a little scary because there are groups that are embarking on this, and you’ve got to be a very savvy investor because you’ve got to make sure that your money is getting out and you’ve got the right people who are checking all the boxes. ... If you don’t designate and handle this whole thing appropriately, the entire benefit of the program can go away very quickly.” Another potential barrier to successful implementation may be the lack of a debt component. Lambert points out that though some lenders will, “do the right thing,” and help finance projects in Opportunity Zones, the majority will need an incentive to do so. She’d like to see a complementary debt incentive put into effect to help Opportunity Zone projects get the funding they need to kickstart ailing local economies. But with as many outstanding regulatory questions as there are, it’s unlikely we’ll see such a component anytime soon. “Until you put these programs in play, you don’t really understand where your holes are,” Lambert says. “Typically, these kind of high-risk, ground-up projects, or significant rehab projects, don’t get done without debt. So, how do we bring the debt to the table? That’s a void that needs to be figured out.” Local Implementation is Key Whether or not Opportunity Zones investments succeed or fail will all come down to the quality of implementation, says Robert Kramp, director of research for CBRE. “Any economic development tool is only going to be as good as it is implemented on the local level,” he says. “We’ll see outcomes that vary all over the board. There will be huge success and some that may not be. “You’re not going to see any two projects alike, and you’re not going to see, at this point, any kind of silver-bullet, one-size-fits-all formula,” Kramp says. “It’s going to literally be project by project, location by location, and Opportunity Fund by Opportunity Fund.”

“Investors are still going to have to look at the supply and demand factors in those areas, because the real estate has to work.” BETH LAMBERT, CUSHMAN & WAKEFIELD

Dallas’ Opportunity Zones are mostly concentrated in its southern and eastern sectors. A handful are in more urban areas like Fair Park. Lambert says Dallas’ Opportunity Zones are likely to see a heavy focus on new retail projects, as recent increases in housing in many areas have created underserved retail markets. Kramp sees a different future in the crystal ball and anticipates a move toward industrial projects, South Dallas’ current bread-and-butter asset class, as well as ongoing additions to its housing inventory to support the region’s WHAT ARE THE rapid job growth. TAX ADVANTAGES OF A QUALIFIED Despite the unknowns, OpporOPPORTUNITY ZONE tunity Zones are a step in the right direction toward helping low-income communities build prosperity. Public-private partnerships are Investors can defer responsible for many of Dallas’ best taxes on capital gains spaces, and proponents say they are until 2026 the way forward when it comes to beating back poverty. Long before Opportunity Zones came on the scene, Dallas was making strides in Capital must downtown rehabilitating historical be placed in an opportunity fund buildings and putting green space within 180 days over a freeway to create a vibrancy that did not exist just 10 years ago. Like Kramp says, Opportunity Zones are just a tool. But in the hands Unlimited amount of of DFW’s seasoned real estate comcapital gains can be munity, they could play a big part reinvested into an in the region’s ongoing growth. opportunity fund

2026 180

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A GLIMPSE INTO THE

FUTURE

WE TURN TO THE EXPERTS FOR INSIDER PERSPECTIVES ON DALLAS-FORT WORTH OFFICE MARKET TRENDS, AND WHAT TO EXPECT IN THE YEAR AHEAD.

SHUT TE RSTOCK

WE ARE IN UNPRECEDENTED TIMES, with an up cycle that has lasted well beyond historical norms. But all good things must come to an end. The question is, when will the economy take a downward turn, and how bad will it get? Dallas-Fort Worth is stronger, larger, and more diverse than it has ever been. Companies

and people continue to flock here. But even as they’re growing, businesses are leasing smaller offices, going to open-office setups, and trading in space for robust amenities. What does all of this mean for North Texas real estate in 2019? We asked leading office developers and brokers to weigh in.

By Christine Perez D C E O M AG A Z I N E .CO M • D C EO R E A L E S TAT E A N N UA L 201 9

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PRESIDENT, SITE SELECTION AND INCENTIVES ESRP

“The most interesting office market trend I’m seeing is the emergence of remote/virtual workplaces, with co-working concepts opening in all major submarkets. It remains to be seen how remote working will impact the demand for new office space. Market research suggests that it’s probably better to let people work where and when they want. For jobs that mainly require interactions with clients or don’t require much interaction at all, the open office has little to offer besides interruption. But other types of work hinge on collaborative efficiency, or the speed at which a group successfully solves a problem, and distance seems to drag collaborative efficiency down. Collaboration requires communication. And the communications technology offering the fastest, cheapest, and highest-bandwidth connection is—for the moment, anyway—still the office. In 2019, we’ll see more shared office environments, which offer an online environment that is a ‘place’ to go to work with your remote team and clients with live video, screen-share, and other easy-to-use tools.”

GREG BIGGS MANAGING DIRECTOR JLL

“The lack of speculative office building is a telling sign that developers and lenders are being very cautious and

SUSAN BLAIR COOK SENIOR VICE PRESIDENT Avison Young

“Things have cooled from the highs of 2014-2016, but Dallas-Fort Worth is still a national leader in delivered office space, net absorption, new construction, and corporate migrations. One of the most interesting trends I’m seeing is a scaling down of footprints for office leases. Companies are utilizing more workplace strategy-influenced policies in determining their size requirements, so a company that may previously have taken 10,000 square feet may now only take 8,000 square feet. This creates an interesting challenge for landlords, as they may see consistent deal volume but lower total absorption numbers. I don’t expect this

trend to go away, as companies remain frugal. Couple this with the rise of co-working, and landlords will need to be more adaptive and agile to keep revenue streams up and vacancies down. ... The flight to quality we’re seeing will continue to put a strain on dated product. Additionally, we currently have the highest amount of vacant sublease inventory since the dot-com bubble burst, a trend that’s worth watching in 2019.”

T.D. BRIGGS PARTNER Peloton Commercial Real Estate

“Dallas-Fort Worth will end up absorbing around 5 million to 5.5 million square feet of office space in 2018, a phenomenal year that exceeded expectations. Looking at supply and demand, the market has been sitting at approximately 85 percent occupancy for the past five years. With a slowdown in new construction (8.7 million square feet in pipeline) and continued strong absorption, I believe overall occupancy will increase to a historic high of 87 percent to 87.5 percent in the next 18 to 24 months. There are more than 7 million square feet of tenants actively seeking space in the market. The biggest challenge moving forward will be converting yesteryears’ infrastructure (mass transit, roads, retail, community space) to meet today’s demands on a city-wide scale. ... Since I got into the business in 1987, DFW has grown from a tertiary, oil-andgas town with 233 million square feet of office space to a vibrant, diversified, core market, with more than 382 million square feet of office space and endless opportunities to exercise our trade.”

KIM BUTLER DIRECTOR OF LEASING HALL Group

“The North Texas office market met expectations in 2018, although I was surprised by the number of new requirements coming from outside the city, as well as existing tenant expansions as companies bring more of their operations to Dallas-Fort Worth. These weren’t all large deals—we saw a range of sizes—and encompassed many industries, led by tech and healthcare. ... The most interesting trend I’m seeing is the flight to quality. This is not a new trend, but it is one that has endured. Although new product is more expensive, space use is changing, so companies are taking fewer square feet per employee. This has resulted in negative absorption in some industries, such as technology, as they have been adding workers but simultaneously downsizing their square-footage. The focus is now on finding the highest quality office space, not necessarily the largest footprint. … Supply and demand remain in check, with a large percentage of new product having some preleasing, which is unusual for Dallas. Overall, the current state of bank financing is keeping developers in check. Looking ahead to 2019, I expect to see ongoing steady demand from small to midsized companies. The heaviest demand we see at HALL Park is for spaces ranging from 10,000 to 20,000 square feet, which has stayed consistent with what we’ve seen the last few years. I also expect lease rates to remain steady. However, as construction pricing continues to increase due to a tight labor market for skilled workers and rising material costs, rates for new product has to be at a

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SUSAN ARLEDGE

thoughtful about where we are in this current cycle. This selective development will keep our market from overbuilding. Looking ahead, there will continue to be strong interest in the North Texas region from companies and firms that want to establish a presence here and that are seeking great labor. The biggest challenge will be the increasing cost of new office space, due to increased land and construction costs. Higher operating costs will begin to normalize rental rates, in comparison to other top-tier markets. This will continue to impact how tenants utilize their space. Dallas-Fort Worth has such an amazingly talented group of real estate developers. Watching how the city continues to grow, both in population and square feet, and what we do collectively to accommodate that growth will be an amazing process.”

“Dallas-Fort Worth is on the cutting-edge of innovation in both office product and amenities; it’s a market that keeps you on your game.” KIM BUTLER HALL GROUP

premium when compared to existing product. ... The biggest challenge the market will face in 2019 is labor. The tight job market is impacting all businesses and industries, and has companies rethinking their real estate as the competition for talent heats up. Dallas-Fort Worth is on the cutting-edge of innovation in both office product and amenities; it’s a market that keeps you on your game. It is exciting to try to anticipate changes and new trends before they happen.”

RANDY COOPER

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VICE CHAIRMAN Cushman & Wakefield

“The market performed with a little less velocity than I was expecting in 2018. There was a lot of good news, but the huge, headline-grabbing deals we have been so accustomed to didn’t come to fruition. … With all the talk about ride sharing and autonomous cars, the fact remains that in Dallas, the majority of corporate transactions involve parking ratios of five to seven spaces per 1,000

square feet of space. That is just the way it is, and I don’t see it changing much in the next five to 10 years. Many landlords will point out that tenants say they need this high ratio but don’t ever utilize it. We have not seen that; we see the appetite for parking growing, not shrinking. … The market seems balanced where there is solid demand: Uptown, Plano, and Las Colinas. In Frisco, where the demand is strongest, supply is lagging. Downtown buildings that were built in the 1980s that have not renovated and added parking will continue to suffer. Looking ahead, ongoing demand for DFW office space will depend on the national economy. It seems that our insulation from broader macroeconomic trends is fading. 2019 should be a good year, but I expect it will lag from the performance we have since the great recovery.”

DERRICK EVERS MANAGING PARTNER AND CEO Kaizen Development Partners

“Dallas-Fort Worth has always been an outlier, relative to conventional wisdom throughout the country. Although we can never take it for granted, we have been blessed with high expectations in our market and, fortunately, they have stayed there. ... We think North Texas will see continuing growth in 2019. Many were closely watching the announcement of Amazon. And although the competitor in me wants to win, I’m convinced that Dallas will be a more diverse market because other tremendous users will occupy that void and exceed the ‘fill line.’ ... The biggest challenge we’ve seen is answering the question of when the market will turn. It obviously has a ripple effect on the capital stack, users of space, providers of space, and every

stakeholder in between. The best analogy I’ve heard is that we could be in the bottom of the eighth inning in a nineinning game, but it’s likely a double-header.”

DUANE HENLEY MANAGING DIRECTOR Transwestern

“The majority of tenants I work with are trending to more efficient use of their leased premises, upgrading their office image while reducing the square footage, allowing them to pay a higher rental rate to upgrade. In 2019, tenant demand should remain strong, due to corporate relocations into the region, along with the existing organic growth. I expect rental rates to be flat in 2019, with absorption lower than what we experienced in 2018. … Companies on both coasts have come to the conclusion that doing business in Dallas is extremely costefficient, being in the Central Time Zone and providing employees with a more favorable tax environment, affordable housing, and excellent schools for their children.”

SARAH HINKLEY PARTNER Thirty-Four Commercial

“We don’t know how much longer this cycle will last, but we do know we are nearing the end. We will see a plateau in lease rates for existing office product and a slight increase in rents for new developments

due to increasing construction costs. On average, this will make rates appear to remain flat in the upcoming year. … Dallas tenants are attracted to the newest and brightest product, leaving holes behind in existing product further creating a lack of density. For DFW to become a 24/7 city, we need to make our central business district and core suburban markets walkable. … Looking at the real estate industry itself, there is a huge gap in talent due to the Great Recession and the tech boom in the late 1990s. We are starting to see younger people in decision-making roles and leadership positions. The old ways of getting deals done are shifting to a more fluid model. Technology is advancing our industry in ways we can’t yet see. Our reach is much broader than what it used to be, giving startups and small companies opportunities that didn’t previously exist.”

ROBERT JIMENEZ SENIOR DIRECTOR OF LEASING Granite Properties

“The most interesting trend I see is the shift to flexible leasing (co-working or various short-term options). We will continue to see more co-working locations open up and more landlords getting into this business. Tenants want more lease options than they have had in the past, and I think this flexibility is here to stay. … I believe office supply and demand is in a really good place. There’s 8.7 million square feet under construction, and it’s 68 percent preleased. The new buildings continue to lease up, and we continue to see expansions in our portfolio. There are a few submarkets that could handle more development. Gross

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ALLISON JOHNSTON

the infrastructure of the city continues to evolve and what impact that has on the region. The expansion of Klyde Warren Park, the addition of the Trinity River Park, and the high-speed rail system are going to change the landscape of the city. I also think the Amazon craze had some companies hesitant to come to the region in fear of competing for talent. We have worked with numerous decision-makers of technology firms who have been cautious to take down too much space or even relocate for that reason. Dallas-Fort Worth now has the largest tech labor force in the South (No. 5 nationally) and continues to provide more opportunities to acquire a technology degree. As jobs continue to grow, I am confident that the talent will continue to follow.”

LEASING AGENT Gaedeke Group

“With the strong economy and spotlight continuing to be on the region, North Texas seems to remain at the top of lists nationally. There is a lot of positive change going on in the region, and this is reflected not only in the development of real estate and job growth, but also in infrastructure, education, and the local culture. … We periodically tour companies looking for unique amenities like pet facilities, meditation rooms, wellness programs, and shuttle services to create the tenant experience within their office community. Quality of life seems to be playing a bigger role in office decisions. … Although office rental rates have increased in the past few years, it seems that rents for the higher-end office assets are leveling out— but certainly not decreasing. I would expect, if anything, that landlords will offer more concessions to keep the rates where they are. You can expect rates to increase in the more dated assets, as they are repurposed to compete with other options in the market. … Looking ahead, I am excited to see how

MARIJKE LANTZ SENIOR VICE PRESIDENT Billingsley Co.

“The most exciting trend I’m seeing is the quality and the creativity of product that is being delivered. It’s not just an office building on its own. We are at a juncture where everything needs to work together. Office space is becoming a place to be, rather than just a space within four walls. It is the typical conference centers and workout facilities, but it is also outdoor amenity space and planned social activities. All of this helps tenants in hiring, retaining employees, and boosting productivity. ... Tenants are consolidating and moving into newer product across the market. Buildings are starting out as spec buildings and then they are being leased. ... DFW should continue to be the beneficiary of the corporate consolida-

tions and relocations due to our strong job and population growth. We are also seeing continued organic growth, with companies needing to expand. Tenant demand continues to go to quality both in product and submarkets. We may see higher vacancy rates in Class B and Class C buildings.”

JJ LEONARD MANAGING DIRECTOR Stream Realty Partners

“Given the amount of leasing activity in the second half of 2017, we anticipated a healthy amount of absorption in 2018, and we have seen just that. We expected rental rate growth to slow some, which has happened and is primarily due to the flight to quality trend we are seeing. We thought we would see vacancy rates continue to level off, which has occurred, and is primarily due to new build-to-suit construction, which has left behind vacant second-generation space throughout the market. This vacancy has offset gains we might have normally seen from such robust absorption. … With unemployment at all-time lows (closing in on 3 percent), companies want to be in high-quality, well-located buildings with both on-site and walkable amenities for employees. HR directors are influencing their companies’ real estate decisions, as the cost for talent far outweighs the cost for real estate. … Looking ahead, I think we will continue to see organic expansion from existing tenants, and I think we will continue to see corporations shifting more jobs, be they back-office jobs or regional growth, to the DFW area. The result should be continued absorption within new and

existing product. We also feel that the flight-to-quality trend will continue, as companies have healthier balance sheets and will pay the freight to help attract new talent. ... The greatest challenge is probably the state of the capital markets. Building owners in many of DFW’s submarkets want to monetize on the investments they made three to five years ago, but they are having a very hard time selling their properties at a current fair market value. It’s becoming increasingly difficult for new investors, given where most feel we are in the cycle, to underwrite the returns they are seeking for these new investments. We have seen many owners try to sell at reasonable cap rates but be forced to try to refinance when they cannot achieve the numbers they seek. The exception to this is that there are still many investors willing to pay a fair market price for properties in submarkets like Uptown, Preston Center, and Legacy, which offer core or core-plus returns. We will also have to keep an eye on increasing interest rates and inflation, and the ripple effect that may have on the real estate market.”

FRANK MCCAFFERTY EXECUTIVE MANAGING DIRECTOR Savills Studley

“After years of headline transactions, I was encouraged in 2018 by the velocity of deals in the 10,000- to 30,000-square-foot range. All of us like to hear about and be part of the marquee transactions, but the stability of the market is supported by the smaller and midsize activity. … Although the CBD has large blocks of available space, it is encouraging to see tenants

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p h o to s c o u r te s y o f CO M PA N I E S

rents will continue to increase in 2019, but net rent will level out. Operating expenses and taxes have increased a lot over the last few years, and this will begin to affect a landlord’s ability to increase net rents. … The biggest challenge is everyone trying to figure out where we are in the cycle. Investment sales and development have slowed due to the length of this cycle, but tenants continue to expand and we’re now seeing a lack of good blocks of space in the best submarkets.”

“Dallas-Fort Worth was always boom and bust, but it has matured during this long cycle and is better positioned than ever to weather a downturn.”

were made across the region. … The most interesting trend I’m seeing is consolidation, consolidation, consolidation. More is less, even now with a great economy. … I know everyone is looking for the bubble to burst, but right now the pipeline is full of relocation prospects, coupled with existing users trying to lock in rates today to avoid future increases in lease rates. DFW is still the lowest-cost real estate solution for the 10 major U.S. markets..”

FRANK MCCAFFERTY SAVILLS STUDLEY

p h o to s c o u r te s y o f CO M PA N I E S

looking at quality options that exist downtown. The activity in Las Colinas since the Toyota Music Factory fully came on line only continues to improve and speaks to the sustainability of this submarket as it is now a true live-work-play community. … Challenges facing the market include transportation, affordable housing, education, and available college-educated millennials for job vacancies. These are serious issues that require serious responses, not happy talk and endless focus groups. … I’m most excited about the sustainability of the market. Dallas-Fort Worth was always boom and bust, but it has matured during this long cycle and is well positioned to weather a downturn.”

BOB MOHR CHAIRMAN Mohr Capital

“Dallas-Fort Worth is experiencing the best economy and market office growth I have seen in 30 years. From downtown to Legacy, gains

DAN PATERSON PRESIDENT Swearingen Realty Group

“If new investors keep coming into the Dallas-Fort Worth office market and they keep redeveloping properties with significant building upgrades, they will keep trying to push rental rates to a higher amount. As a whole, if things remain status quo on the ownership side, the rise in rental rates should start leveling off. The only exception to this is the Uptown area, which has few remaining sites but ongoing tenant demand. ... The biggest challenges facing the market are construction costs and the delay in getting construction permits, and labor availability and costs. All of these were DFW’s biggest assets in the past. Businesses are still attracted to DFW, but costs are coming into play like never before. … I’m relieved that Amazon did not pick Dallas for its HQ2. This will keep the North Texas area more vibrant in the long run, as we will be able to keep the area diversified. Amazon did prove, however, that DFW can compete for any major headquarters operation or relocation on the same level as New York, Los Angeles, or any

other major market. The region is even more so in the spotlight for companies that are looking to relocate.”

GRANT PRUITT PRESIDENT AND MANAGING DIRECTOR Whitebox

“There are two over-arching drivers in commercial real estate today: HR and risk mitigation. The real estate component is so small compared to the cost of talent, and recruiting and retaining employees. It is the reason that we are seeing the onslaught of co-working and community-centric spaces, urbanization, and blurred lines between live-work-play. The big trends that have resulted are unlimited connectivity, transparency, purposeful environments, personal well-being, and infused technology. The second major driver of real estate decisions in general is risk mitigation. In a post-2008 recession world, risk mitigation is one of the biggest drivers of real estate decisions (avoiding surpluses/ shortages and hedging against real estate market swings). Flexibility is crucial to the office users as the majority of companies were caught flatfooted 10 years ago. Most corporate users have come to understand this risk premium in order to achieve the flexibility they need to be nimble and adapt in a rapidly changing future. … In the most recent Beige Book, the Dallas Federal Reserve noted that wage growth due to a tight labor market continues to be an issue for the state, and tariffs and rising interest rates have led to price increases and uncertainty in the markets. Our unemployment rate currently sits at 3.2 percent.

That is insanely low, and it has meant that for this quarter we dipped below 300 jobs being created per day for the first time in years. Granted it was only off by two, at 298 jobs per day. It is hard to increase absorption if you can’t continue to hire and grow the workforce. The fundamentals for DFW are great though, and what has offset the strained workforce situation and continues to offset it is the migration to Texas from other states, especially California. Companies want to move to DFW, and that brings more people to the state due to job availability.”

WORTHEY WILES SENIOR VICE PRESIDENT Lincoln Property Co.

“The co-working model has exploded in Dallas over the last couple of years. Venture capital and private equity firms continue to put more and more money into this industry, and corporations continue to appreciate the short-term flexibility this model provides for them. The coworking industry is here to stay and will continue to grow and evolve. ... I am excited about the future of Dallas-Fort Worth. The region continues to make all the top 10 lists for its significant employment gains, livability, and strong economy. With our favorable business climate, central location, and affordable housing, people will keep moving here from the coasts and bringing their businesses, too. New office product continues to lease up, and plans are on the drawing board for more mixed-use developments. Corporate relocations and organic growth will keep Dallas on the top of investors’ lists. The future for DFW remains bright!”

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12/4/18 9:26 AM

A MAJOR DEVELOPER

LEAVES A LASTING LEGACY ON THE CITY

“We rely on Texas Capital Bank for the industry expertise and their dedicated team. They are there for you when you need them. I’m not only their client; I’m their biggest fan.” Lucy Billingsley, Co-Founder and Partner of Billingsley Company

THANKS TO

We take great pride in helping entrepreneurs and business owners get the most out of their business. That’s why we provide the commercial real estate industry expertise, tailored treasury and liquidity solutions, and leading technology you need to best manage your cash flow and enable growth. What can our bank do for the business you built? Amy Lezon – Senior Vice President 214.210.3099 www.texascapitalbank.com/cpm

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Texas Capital Bank, N.A.

12/3/18 1:15 PM

ON-THE-GROUND

INSIGHTS MORE THAN 100 INDUSTRY EXPERTS SHARE THEIR OBSERVATIONS AND OPINIONS WITH D CEO REAL ESTATE. HERE ARE EXCERPTS OF TOP POSTS FROM 2018.

SHUT TE RSTOCK

By Christine Perez P H O T O G R A P H Y B Y B I L LY S U R FA C E

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WHEN WE LAUNCHED

D CEO’s Real Estate site in 2011, the goal was to build community by going beyond news reports and deal scoops to provide in-depth interviews with leaders driving the industry in North Texas—tying back to our people-focused mission at D CEO magazine. Another key component was opening up the site to a hand-picked stable of contributing editors. We looked for thought leaders who were informed and not afraid to share their opinions, and who represented all sectors, specialties, and geographic markets in North Texas. Seven years later, we now have an editorial force of nearly 100 columnists, many of whom are national authorities in their fields. Excerpts from top 2018 blog posts follow; a full list of 2019 contributing editors is on page 59.

Diane Butler Principal Butler Advisers

Gender Inequality in a MaleDominated Industry

WOMEN PLAY an important role in society and

economic growth. Yet, despite much progress, women still struggle to find equality with regard to leadership, opportunity, and pay. This is especially true in commercial real estate, which has long operated as a boys club. A benchmark study performed by Commercial Real Estate Women (CREW) in 2015 found the industry median annual compensation was $115,000 for women and $150,000 for men—an average income gap of 23.3 percent. If there ever was a time to talk about gender inequality, it’s now. The trailblazing #MeToo and Time’s Up anti-sexual assault and women’s empowerment movements have raised awareness of hurdles women face on a daily basis. This cultural shift hasn’t been lost on corporate America, which is now reconsidering many of its policies and procedures.

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A Glimmer of the Sun Peeking Through the Forest

“People want to work for businesses that are committed to equality.” DIANE BUTLER

WHEN LEAVING the glitz of Uptown and passing the beautiful skyline of downtown, you’ll arrive in South Dallas, an area that doesn’t look too sunny these days. Yet, despite the boarded-up homes and dilapidated buildings scattered throughout, South Dallas remains a community of rich history and great hope for the future. One iconic building that offers opportunity is the old Forest Theater, an official Dallas landmark that opened in 1949 and catered to an AfricanAmerican clientele. But for nearly a decade, it has been nothing at all, just a deteriorating building visible from Interstate 45, the freeway that, in 1955, decimated a once-vibrant neighborhood. Owners made an effort to sell the theater for an extended period of time. The right buyer would have to possess a great vision, a deep passion for the community, and a solid financial plan. That investor appeared in the form of CitySquare, a nonprofit that works to confront Dallas’ homeless problem. It successfully closed on the Forest Theater in May 2017 and formed a partnership with St. Philip’s School and Cornerstone Baptist Church to reinvent the property as a community center. Today, the sun is beginning to rise over the Forest Theater once again. That’s because The Real Estate Council Foundation is providing $1 million in grants and pro bono services to help fund a rehabilitation. Together, the partners plan to redevelop the old theater and an adjacent 12,000-square-foot retail space into a center that serves the South Dallas community.

—Originally posted Jan. 25, 2018

Terrence Maiden Executive Vice President Corinth Properties

Here are two strategies that can help level the playing field: Establish mentorship and sponsorship programs. In the CREW study, women ranked lack of mentorship as their top barrier to success. Professional connections lead to relationships that can propel careers. Mentorship and sponsorship programs move the conversation from what men and women can’t do to what we can do, and serve as a rallying cry to work together to create a more equal world. Champion equality. People want to work for businesses that are committed to equality, so develop a clear strategy and communicate it. It’s not only the right thing to do, it’s smart business. —Originally posted May 9, 2018

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Real Estate Advisement for an Intergenerational Workforce INTERGENERATIONAL ISSUES add a qualitative item to the many factors that companies

consider when choosing an office location and designing space. For the first time in history, four generations are working together: veterans, baby boomers, gen X’ers, and millennials. Although millennials are the future, the other three segments make up the majority of the current workforce, with a fifth segment well on its way. Clients need to ensure there are multi-generational components to evaluating their space needs. Location, build-out, and technology need to be conducive to employees of all generations. Decisions on collaboration, work environment, remote working, and workplace design will impact a company’s ability to capture and leverage the knowledge of multiple workforce segments. In today’s tight labor market, real estate decisions will impact the attraction and retention of these generations. As real estate advisers, our short-term goal is to help our clients find and design space where companies and all their employees can thrive today. Our long-term goal should be to help clients develop space strategies that evolve with the generational shifts to occur over the next 10 to 15 years. After signing the Declaration of Independence, John Hancock supposedly said that Congress must now “all hang together.” Benjamin Franklin is reported to have replied: “Yes, we must indeed all hang together, or most assuredly we shall all hang separately.” Generational differences are often perceived as a challenge but, these differences present an opportunity for businesses to figure out how to get employees to “all hang together.” The companies that do, will win. —Originally posted Oct. 30, 2018

Torrey Littlejohn Senior Vice President JLL

“Successful urban design is as much about the subtle connections as it is about bold ideas.” DAN NOBLE

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Dan Noble President, Chairman, and CEO HKS Inc.

Stitching Together the Urban Fabric of Dallas

DALLAS HAS COME a long way in considering its urban fabric and creating a more livable city. But we seem to gravitate to heroic gestures that are bold, identifiable, nameable, and obvious. How do we connect our grand moves together to integrate them into our daily lives and make them even more accessible and successful? How do we, for example, connect White Rock Lake and the Dallas Arboretum better (and safer) to the immediate neighborhoods to the east, or connect our bike paths to Fair Park? How can we create a smarter pedestrian experience to meld our downtown public spaces. Should Harwood Street become a more generous pedestrianfriendly boulevard to fluidly tie these open spaces together? Can we meaningfully connect Oak Cliff to the planned Riverfront development and the Trinity River itself? How can we transform our streets into and through downtown to be more

accommodating to bicyclists and pedestrians? Do we tear down I-345 to reconnect Deep Ellum to downtown? Successful urban design is just as much about the subtle connections as it is about bold ideas. Done correctly, these connections can amplify spontaneous moments and create life in-between buildings and open spaces while deliberately improving our urban fabric. It is also good business; just look at the added value that has been created around Klyde Warren Park. Let’s invest our time and resources to properly plan and design these connection opportunities and more fully realize the good work we’ve done to date within our public realm. After all, this is where life happens—the spaces in-between. —Originally published May 14, 2018

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“DallasFort Worth boasts an economy that is balanced and diverse.” RYAN McMANIGAL

Ryan McManigal Senior Vice President KDC

Dallas’ Secret Sauce

IN AN ANNUAL SURVEY, Chief Executive magazine

asks thousands of CEOs across the country to rank their experience in doing business in each state. For 13 years running, they’ve named the great state of Texas as the best state to do business. Due in large part to Texas’ pro-business environment and low-cost policies, Dallas-Fort Worth is home to 42 Fortune 1,000 companies, and the region continues to win corporate relocations. DFW boasts an economy that is balanced and diverse. It comes in at 0.8 on the economic diversity scale, while New York is 0.57 and San Jose is 0.22. (The U.S. is 1.0.) This diversification of industry is key to the region’s long-term sustainability. But the incredible growth Dallas has achieved is ultimately due to its secret sauce. That’s you,

its people. The fun-loving, entrepreneurial, pullyourself-up-by-your-bootstraps citizens of Dallas. It was you who convinced this Santa Barbara surfer grom (that’s a super technical surfer term) to leave the beaches of California and move to Texas. And it was you who, during a recent family tragedy, took planes, trains, and automobiles to surround me back in California during one of the hardest days of my life. And it is because of you all (I mean y’all) that I now call Dallas home. So, as you go about trying to win your next deal, build your next building, or pave your next highway, don’t forget to appreciate the secret sauce of Dallas. Your neighbors. Your friends. Your family. And yourself. That’s what truly makes Dallas great. —Originally published May 14, 2018

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2019 CONTRIBUTING EDITORS D CEO REAL ESTATE Marc Allen Transwestern

Kim Butler HALL Group

Mike Jaynes HALL Group

Jon Altschuler Altschuler and Co.

Bruce Carlson CMA

John Alvarado CBRE

Bill Cawley Cawley Partners

Ryan Johnson SRS Real Estate Partners

Monte Anderson Options Real Estate

Randy Cooper Cushman & Wakefield

Susan Arledge ESRP

Brian Cramer Newland Communities

Chris Barnet Cushman & Wakefield Scott Beck Beck Ventures Eric Beichler Mohr Partners Steve Berger CBRE Brant Bernet CBRE Mike Berry Hillwood Properties Walt Bialas JLL Jeffory Blackard Blackard Global Anthony Bolner Stream Realty Partners Cliff Booth Westmount Realty Capital Jihane Boury Colliers International

Chuck Dannis National Valuation Consultants Michael Dardick Granite Properties Grant English Venture Commercial Steve Everbach Colliers International Derrick Evers Kaizen Development Colin Fitzgibbons KDC Lisa Gardner OMS Strategic Advisors LLC

Charlie Myers MYCON General Contractors Inc.

Creighton Stark Colliers International

Lauren Napper Cushman & Wakefield

Doug Talley Talley Riggins Construction Group

Craig Jones JLL

Dan Noble HKS Inc.

Ryan Tharp Transwestern

Sam Kartalis Younger Partners

Brian O’Boyle ARA, A Newmark Co.

Chris Teesdale Colliers International

Justin Keane Wynmark Commercial

Blair Oden CBRE

Steve Thelen JLL

Blake Kendrick Stream Realty

Nathan Orbin Cushman & Wakefield

Steve Triolet Younger Partners

Mike Kennedy Avison Young

Kathy Permenter Younger Partners

Tommy Tucker SHOP Cos.

Eric Krueger Balfour Beatty

Fred Perpall The Beck Group

Laney Underwood Transwestern

Michael Lahoud Stream Realty Partners

Ian Pierce Weitzman

Bob Voelkner StreetLights Residential

JJ Leonard Stream Realty Partners Steve Lieberman The Retail Connection Tanya Little Hart Advisors Group

Jennifer Pierson STRIVE Don Powell BOKA Powell Ari Rastegar Rastegar Equity Partners

Jordan Wade Transwestern David Walters CBRE Michael Walters Falcon Realty Advisors

Kourtny Garrett Downtown Dallas Inc.

Torrey Littlejohn JLL

Mark Reeder SRS Real Estate Partners

Mike Geisler Venture Commercial

Terrence Maiden Corinth Properties

Andrew Schendle Hunt Construction

King White Site Selection Group

Chris Gerard CBRE

Frank McCafferty Savills Studley

Alan Shor The Retail Connection

Lindsay Wilson Corgan

Kurt Griffin Cushman & Wakefield

Linda McMahon The Real Estate Council

Cindy Simpson Gensler

Jim Yoder Velocis

Katy Slade Mintwood Real Estate

Bob Young Weitzman

Jean Smith CBRE

Moody Younger Younger Partners

Paul Smith Velocis

John Zikos Venture Commercial Real Estate

John Brewer Transwestern

Robert Grunnah Younger Partners

Bill Brokaw Hillwood Urban

Karra Guess ESRP

Linda Burns Burns Development Group

Ran Holman Cushman & Wakefield

Bill Burton Hillwood Properties

Sarah Hinkley Thirty-Four Commercial

Diane Butler Butler Advisers

Rob Huthnance PLR Development

Ryan McManigal KDC Michael Meaden JLL Rick Medinis NAI Robert Lynn Marshall Mills Weitzman Terry Montesi Trademark

Eliza Solender Solender/Hall Inc. Jo Staffelbach Heinz DLR Group

Herb Weitzman Weitzman

Steven Zimmerman The Retail Connection

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12/4/18 9:31 AM

TUR NING

DIRT By Jeremiah Jensen

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A LOOK AT SOME OF THE NOTABLE DEVELOPMENT PROJECTS GETTING UNDERWAY ACROSS NORTH TEXAS. DALLAS-FORT WORTH is home to some of the most prolific developers in the nation. And with no natural boundaries like mountains or oceans, they’ve got plenty to work with here in North Texas. Even with a drop in activity in 2018, the region still ranked No. 2 in the country for construction, second only to New York City, according to Dodge Data & Analytics. Here are some of the more interesting projects that are taking shape.

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Atelier

M o n a rc h c o u r te s y o f T H E H OWA R D H U G H E S CO R P. ; Ate l i e r c o u r te s y o f S TA N T E C A R C H I T E C T U R E

This luxury high-rise will stand between the Nasher Sculpture Center and the Morton H. Meyerson Symphony Center, soaring 41 stories above the Dallas Arts District. Designed by Stantec for ZOM Living, it will house 364 residential units, along with retail and gallery space. Atelier, which means “artist workshop,” will also be home to Flora Lofts: 52 affordable units designed for artists by Dallas architect Graham Greene.

Monarch City THE HOWARD HUGHES Corp. was inspired by the migration of butterflies when naming its new project, which lies in the path of development in North Texas. The mixed-use Monarch City will stretch its wings across 270 acres in Allen and encompass more than 9 million square feet of office, retail, and residential space, plus a luxury hotel and more than 20 acres of green space. D C E O M AG A Z I N E .CO M • D C EO R E A L E S TAT E A N N UA L 201 9

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Auspire at The Gate IN LATE OCTOBER, Ryan Cos. and Invest Group Overseas announced plans to move forward with a threebuilding office complex within IGO’s $700 million developed called The Gate. The new 900,000-square-foot office park will be built on 80 acres along the Dallas North Tollway, north of The Star and Frisco Station, both of which are adding office space after quick lease-up of existing facilities.

THE NEW 900,000-SQUAREFOOT OFFICE PARK WILL BE BUILT ON 80 ACRES ALONG THE DALLAS NORTH TOLLWAY, NORTH OF THE STAR AND FRISCO STATION.

VERIZON’S 150-acre mixed-use project in Irving lives on the bleeding edge of techinfused real estate, boasting 5G integration, incubators, smart apartments, and other envelope-pushing features. Developed by KDC, the project will hold roughly 3 million square feet of office space, including a beautiful new headquarters for Pioneer Natural Resources. Hidden Ridge also will feature a 200-room hotel, 1,200 residential units, and 80,000 square feet of retail, restaurant, and green space.

East Quarter TODD INTERESTS’ latest project aims to knit together the Dallas Farmers Market, Deep Ellum, and downtown Dallas by transforming vintage buildings on the city’s eastern edge into 200,000 square feet of creative office space, restaurants (two from Neighborhood Services’ Nick Badovinus), and more. Todd Interests, which has a track record of successful urban revitalization projects, is also making $2 million in improvements to surrounding streets, in conjuction with the city and Downtown Dallas Inc.

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T h e G a te c o u r te s y o f RYA N CO S . ; H i d d e n R i d g e c o u r te s y o f G E N S L E R ; E a s t Q u a r te r c o u r te s y o f T O D D I N T E R E S T S ; C e n t r a l M a r ke t c o u r te s y o f K D C ; G o o d ye a r c o u r te s y o f C I T Y O F F O R N E Y; L u m i n a r y c o u r te s y o f C R E S C E N T

Hidden Ridge

Central Market on McKinney FROM THE COCOON of a dead Albertsons on McKinney Avenue, a beautiful new Central Market will soon emerge. And area residents will be getting much more. That’s because the popular grocer is reportedly joining forces with KDC to have the store anchor a new 19-story mixeduse development, which will include an office tower, restaurants, and a large rooftop plaza.

Goodyear Tire & Rubber Co. THE COMPANY behind “Project Fireball” was revealed in October, when the City of Forney announced that Goodyear Tire & Rubber Co. would be bringing 160 jobs and a new 1.2 million-squarefoot distribution center to the community. Developed by Hillwood, the facility will be built on 102 acres of land south of U.S. Hwy. 80, rezoned specifically for this project.

DEVELOPED BY HILLWOOD, THE FACILITY WILL BE BUILT ON 102 ACRES OF LAND SOUTH OF U.S. 80, REZONED SPECIFICALLY FOR THE PROJECT.

The Luminary DEVELOPED BY Crescent Real Estate in partnership with Long Wharf Capital, The Luminary is poised to lead the innovation charge in Dallas’ historic West End. On track for completion in early 2019, the project adds seven stories to an existing three-story facility and includes redevelopment of a smaller, adjacent office building. Corgan, which designed the new space, will maintain and expand its headquarters in The Luminary. Innovative features include electrochromic, tint-on-demand SageGlass.

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Innovation Winner 400 Record A stunning reposition of a well-known Dallas property

submitted by Gensler

Jury’s Special Award for Excellence in Execution and Sustainable Design

Influence Winner

Toyota North America Headquarters

Legacy West A vibrant, verticallyintegrated mixed-use development

Extensive attention to sustainability features and future flexibility.

submitted by Rogers-O’Brien

submitted by KDC

Public Place Winner A Tasteful Place A recent ornamental-edible garden addition to the Dallas Arboretum and Botanic Garden submitted by Rogers-O’Brien

Vision Award Honoree

Next Big Idea Winner

Roger Staubach

Smart Growth Dallas A collaborative planning and mapping concept, and decision support tool submitted by The Trust for Public Land

Our 2018 Vision Award honoree is Roger Staubach, founder of The Staubach Company, and recently retired as Executive Chairman of JLL. Roger was interviewed on stage by long-time friend and former Naval academy roommate, Ron Terwilliger.

ULI North Texas congratulates our 2018 Impact Award Winners! For more information go to our website: NorthTexas.uli.org

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2018

THE DEAL TICKER A CO MP R E H E N S I V E LIST O F T H E RE G IO N’S LARG E ST LE AS E S AND SAL E S I N T H E O FFICE , INDU ST RIAL, AND RE TAIL S E CTO RS

THROUGHOUT

D CEO Real Estate publishes reports on many of the region’s biggest leases and sales. Pulling them all together in one spot, and ranking them from largest to smallest, provides an illuminating look at the strength of the market. That’s what we’ve done in our 2018 Deal Ticker. This past year the region’s office, industrial, and retail sectors all hummed along— perhaps not hitting record highs seen earlier in the cycle but certainly strong nonetheless. And the good times should continue; In its influential “Emerging Trends” report, PwC named DallasFort Worth as the No. 1 real estate market for 2019, citing the area’s young workforce and robust business start-up activity. Transactions in our Deal Ticker closed between Nov. 15, 2017 and Nov. 15, 2018. Along with our own reports, data was provided by area commercial real estate firms.

top leases and sales OFFICE

THE YEA R ,

top leases and sales INDUSTRIAL

top leases and sales RETAIL

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O F F IC E • L E ASES

OFFICE HARWOOD NO. 10

OFFICE LEASES AT&T SERV I C ES I N C . Size: 965,813 square feet Location: One AT&T Plaza, 208 S. Akard St., Dallas Tenant Reps: Jeff Ellerman, Phil Puckett, and Robert Blount of CBRE Landlords: Dundon Capital Partners and Woods Capital FOSSIL PART N ERS Size: 535,731 square feet Location: 901 N. Central Expy., Richardson Tenant Reps: Jeff Ellerman and Robert Blount of CBRE NOKIA Size: 357,101 square feet Location: 3201 and 3100 Olympus Blvd., Dallas Tenant Reps: Randy Cooper, Craig Wilson, Chad Tsitovich, Scott Goldman, and Chris Wood of Cushman & Wakefield Leasing Agent: Marijke Lantz of Billingsley Co.

SAMSU NG EL EC T RO N I C S Size: 215,937 square feet Location: 6550 Chase Oaks Blvd., Plano Tenant Reps: Kimarie Ankenbrand and Steve Thelen of JLL Leasing Agents: Nathan Durham and Duane Henley of Transwestern Landlord: Regent Properties MERCEDES- B EN Z FINANCIAL S ERVI C ES Size: 200,006 square feet

IMAGE COURTESY OF HARWOOD INTERNATIONAL

NTT DATA I N C . Size: 232,744 square feet Location: The Campus at Legacy West, 6501 Legacy Drive, Plano Tenant Reps: Damian Rivera, Steve Jarvie, Karra Guess, John Pelletier, and Steve Jarvie of ESRP

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Location: Alliance Center, 9800 Hillwood Pkwy., Fort Worth Tenant Reps: Stuart Smith and Gregory Trusso of Cushman & Wakefield Leasing Agents: Steve Adrich of Hillwood S I G N E T J E W EL E R S Size: 187,810 square feet Location: 9797 Rombauer Road, Dallas Tenant Reps: Neal Golden, Richard Golden, and Derek Myers of Newmark Knight Frank Leasing Agent: Marijke Lantz of Billingsley Co. Landlord: Billingsley Co. G E NPAC T L LC Size: 180,000 square feet Location: 3300 E. Renner Road, Richardson Tenant Reps: Mike Kay, Baron Aldrine, Steve Rigby, Mike Cleary, and Pete Danna of CBRE L E H I G H H A N S ON Size: 172,046 square feet Location: 300 E. John Carpenter Fwy., Irving Tenant Reps: Steve Thelen, Russell Cosby, and Torrey Littlejohn of JLL Leasing Agents: Fletcher Cordell and Alexandra Cullins of CBRE Landlord: Fortis Property Group

IMAGE COURTESY OF HARWOOD INTERNATIONAL

STE WA R D H E A LTH CA R E Size: 165,107 square feet Location: 2375 N. Glenville Drive, Richardson Leasing Agents: Chris Taylor with Cushman & Wakefield and Russ Johnson with Peloton Commercial Real Estate Landlord: Spear Street Capital TH O M P S O N & K NI GHT Size: 159,046 square feet Location: One Arts Plaza, 1722 Routh St., Dallas Tenant Reps: Phil Puckett, Harlan Davis, and Neal Puckett of CBRE Landlord: Billingsley Co. R E M I N GTO N HOTE L S Size: 143,632 square feet Location: Centura Tower, 14185 Dallas Pkwy., Dallas Tenant Rep: Jim Montgomery of Swearingen

BRINKER IN T ERN AT I O N AL Size: 110,000 square feet Location: 6820 LBJ Fwy., Dallas Tenant Reps: Rick Hughes, Maureen Kelly Cooper, Robbie Baty, and Jim Jordan of Cushman & Wakefield

Leasing Agent: Duane Henley of Transwestern Landlord: Regis VA R S I TY B RANDS Size: 139,291 square feet Location: 14460 Quorvo Drive, Farmers Branch Tenant Reps: Mike Wyatt, Maureen Kelly Cooper, Barrett Jones, and Kyle Griffith of Cushman & Wakefield M E R I T E NE RGY CO. Size: 126,952 square feet Location: 13727 Noel Road, Dallas Tenant Reps: Jeff Ellerman of CBRE and Scott Hobbs of Cushman & Wakefield Leasing Agents: Chris Taylor, Trey Smith and Lauren Napper of Cushman & Wakefield Landlord: Galleria North II LP M E TR OPC S TEXAS Size: 115,583 square feet Location: 2250 Lakeside Blvd., Richardson Tenant Rep: Jeff Ellerman of CBRE Leasing Agents: Tim Terrell and Chase Lopez of Stream Realty Partners 7- E L E V E N Size: 115,036 square feet Location: 1601 LBJ Fwy., Dallas Tenant Rep: Duane Henley of Transwestern Landlord: Regis GUI D E STONE FINANCIAL R E S OUR C E S Size: 113,585 square feet Location: 5005 LBJ Fwy., Dallas Tenant Reps: Brad Selner and Brooke Armstrong of JLL Leasing Agents: JJ Leonard, Sara Terry, and Chase Lopez with Stream Realty Partners Landlords: New York Life and Encore Office NE W YOR K LIFE Size: 112,861 square feet Location: 4849 Greenville Ave., Dallas Tenant Rep: Matt Heidelbaugh of Cushman & Wakefield Leasing Agents: Daryl Mullin and Jeff Eckert of JLL Landlord: USAA /Glenstar

G AINSCO IN S URAN C E Size: 107,934 square feet Location: 3333 Lee Pkwy., Dallas Tenant Reps: Chelby Sanders and Josh White of CBRE Leasing Agents: Robert Jimenez and Burson Holman of Granite Properties Landlord: Granite Properties

“The DallasFort Worth office market performed much better than I expected in 2018. I thought leasing activity would slow, but it didn’t. We were actually busier this year than last.” BILL CAWLEY CHAIRMAN AND CEO C AW L E Y PA R T N E R S

HEWLETT PAC KARD ENTERPRIS E CO. Size: 106,325 square feet Location: Platinum Park, 6080 Tennyson Pkwy., Plano Tenant Reps: Jeff Ellerman and John Roper of CBRE EATING RECOVERY CENTER Size: 101,608 square feet Location: 5120 Legacy Drive, Plano Tenant Reps: Tim Callahan and Liz Osborne of Cushman & Wakefield Leasing Agents: Bill Cawley and Todd Ashbrook of Cawley Partners MATADOR RES O URC ES Size: 101,310 square feet Location: One Lincoln Centre, 5400 LBJ Fwy., Dallas Tenant Reps: Steve Thelen and Jeremy McGown of JLL Leasing Agents: Clint Madison and Matt Schendle of Cushman & Wakefield Landlord: TIAA KOSMOS EN ERGY L LC Size: 100,445 square feet Location: 8176 Park Lane, Dallas Tenant Reps: Jeff Ellerman and Robert Blount of CBRE Leasing Agents: Ward Eastman and Trey Smith of Cushman & Wakefield Landlord: Northwood Investors DARLING IN GRED I EN TS Size: 95,322 square feet Location: 5601 N. MacArthur Blvd., Irving

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Davis, and Neal Puckett, CBRE Leasing Agents: Kelly Whaley and Hannah Waldmann with Harwood International Landlord: Harwood International STEWARD HEALTH CARE Size: 67,000 square feet Location: 1900 N. Pearl St., Dallas Tenant Rep: Matt Craft of Lincoln Property Co. Leasing Agents: Worthey Wiles and Jake Young of Lincoln Property Co. Landlord: Lincoln Property Co.

I NFOSYS Size: 85,901 square feet Location: 2400 N. Glenville, Richardson Tenant Rep: Bret Hefton of Avison Young Leasing Agents: Trey Smith and Clint Madison of Cushman & Wakefield Landlord: Q Real Estate TH E B ECK G ROUP Size: 81,698 square feet Location: Thanksgiving Tower, 1601 Elm St., Dallas Leasing Agent: CBRE Landlord: Woods Capital YRC INC. Size: 75,793 square feet Location: 1215 W. Crosby Road, Carrollton Tenant Rep: Eric Crutchfield of Stream Realty Leasing Agent: Colliers International FI S E RV Size: 74,568 square feet Location: Frisco Station, 6160 Warren Pkwy., Frisco Tenant Reps: Steve Thelen and Connor McCarthy of JLL Leasing Agents: Clint Madison, Chris Taylor, and Johnny Johnson of Cushman & Wakefield Landlord: VanTrust Real Estate W I L L I S TOW ER S WATS ON Size: 71,990 Location: Ross Tower, 500 N. Akard St., Dallas Tenant Reps: Phil Puckett and John Roper of CBRE Leasing Agent: Hunter Lee of HPI Landlords: Bandera Realty, HPI Realty, Second City

“Dallas-Fort Worth hasn’t gotten ahead of itself in terms of speculative developments. For example, the majority of new buildings in the Uptown market has seen large lease-ups.” JIHANE BOURY EXECUTIVE VICE PRESIDENT C O L L I E R S I N T E R N AT I O N A L

B OSTO N CO N S ULTI NG G R OU P Size: 69,624 square feet Location: Saint Ann Court, 2501 N. Harwood St., Dallas Brokers: Phil Puckett, Harlan

ALTAIR G LOBAL Size: 64,949 square feet Location: 3201 Dallas Pkwy., Frisco Tenant Reps: Randy Cooper, Maureen Kelly Cooper, Dean Collins, and Emily Hoffman of Cushman & Wakefield Leasing Agents: Kim Butler Cynthia Cowen, and Brad Gibson Landlord: HALL Group ADEPTU S HEALTH Size: 61,380 square feet Location: Mandalay Tower 1, Las Colinas Leasing Agents: Chris Taylor and Rodney Helm of Cushman & Wakefield Landlord: Parmenter BERRY APPLEMAN & LEIDEN Size: 61,380 square feet Location: 2400 N. Glenville, Richardson Tenant Rep: Eddie Tillman at Avison Young Leasing Agents: Trey Smith and Clint Madison of Cushman & Wakefield Landlord: Q Real Estate PULTE HOMES/CENTEX TITLE Size: 58,460 square feet Location: 9111 Cypress Waters Blvd, Dallas Tenant Rep: Searcy Ferguson of CBRE Leasing Agent: Marijke Lantz of Billingsley Co. Landlord: Billingsley Co. U MC ENERGY Size: 58,414 square feet

Location: 3201 N. Sylvania Ave., Fort Worth Leasing Agent: Todd Hawpe of Transwestern BRIERLEY + PAT N ERS Size: 56,703 square feet Location: The offices 1 at Frisco Station, 6160 Warren Pkwy., Frisco Tenant Reps: Randy Cooper, Craig Wilson, Kate Sudol, and Wills Bauer of Cushman & Wakefield Leasing Agents: Johnny Johnson, Chris Taylor, and Clint Madison of Cushman & Wakefield Landlord: VanTrust Real Estate WINSTON & ST RAW N Size: 56,016 square feet Location: 2121 N. Pearl St., Dallas Tenant Rep: Phil Puckett, Harlan Davis, and Neal Puckett of CBRE Leasing Agents: Dennis Barnes, Clay Gilbert, and Shannon Brown of CBRE Landlords: MetLife and Trammell Crow Co. AT&T SERV I C ES Size: 53,789 square feet Location: Alliance Gateway, Fort Worth Tenant Reps: Matt Heidelbaugh, Cribb Altman, and Christy McGinnis of Cushman & Wakefield Landlord: St. Croix Capital ELEVATE CRED I T Size: 52,589 square feet Location: 5080 Spectrum Drive, Addison Tenant Reps: Mike Wyatt, Cribb Altman, and Kyle Griffith of Cushman & Wakefield Leasing Agent: Burson Holman and Aarica Mims Landlord: Granite Properties TEMPEST T EL ECO M SOLU TIONS Size: 52,366 Location: 1461 S. Belt Line Road, Coppell Tenant Rep: Eric Crutchfield of Stream Realty Partners Landlord: Lincoln Property Co. WEWORK Size: 52,232 square feet Location: 3090 Olive St., Dallas

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IMAGE COURTESY OF JLL

Tenant Reps: Bill McClung and Robbie Baty of Cushman & Wakefield Leasing Agents: Matt Hurlbut and Nathan Durham with Transwestern Landlord: Brookwood Financial Partners

O FFI C E • LE AS E S

Leasing Agents: Jackie Fraker Marshall and Tommy Nelson of CBRE Landlord: Victory Plaza West C H E WY.CO M Size: 51,934 square feet Location: 1950 N. Stemmons Fwy., Dallas Tenant Reps: Dean Collins, Mark Collins, Jason Dodson, and Adam Campbell of Cushman & Wakefield Leasing Agents: Chuck Sellers and Grant Sumner of Avison Young Landlord: Equinix

D L A PI PE R Size: 45,000 square feet Location: 1900 N. Pearl St., Dallas Tenant Reps: Jordan Wade, Sanders Thompson, and Larry Serota of Transwestern Leasing Agents: Worthey Wiles and Jake Young of Lincoln Property Co. Landlord: Lincoln Property Co.

S O L I S M A M M OGRAPHY Size: 51,053 square feet Location: 2901 Kinwest Pkwy., Irving Tenant Rep: Searcy Ferguson of CBRE Leasing Agents: Chris Taylor and Trey Smith of Cushman & Wakefield Landlord: FSP Addison Circle LP

RSM Size: 44,269 square feet Location: Three Galleria Tower, 13155 Noel Road, Dallas Leasing Agents: Jackie Fraker Marshall and Shannon Brown of CBRE Landlord: Three Galleria Tower

M U LTI P L A N INC . Size: 50,412 square feet Location: 1250 Copeland Road, Arlington Tenant Rep: Robert Blount, CBRE

HUAW E I TECHNOLOG IES Size: 43,794 square feet Location: Legacy Place, 5800 Tennyson Pkwy., Plano Leasing Agents: Trey Smith and Ward Eastman of Cushman & Wakefield Landlord: L&B Realty

E XCO R E S O UR C E S I NC . Size: 47,860 square feet Location: 12377 Merit Drive, Dallas Tenant Reps: Scott A. Morse and Scott M. Jessen of Citadel Partners Leasing Agent: Melanie Hughes of Bradford Commercial Real Estate Landlord: YPI Park Central U WOR L D Size: 47,738 square feet Location: 9111 Cypress Waters Blvd, Dallas Tenant Reps: Clay Vaughn and David Glasscock of CBRE Leasing Agent: Marijke Lantz of Billingsley Co. IMAGE COURTESY OF JLL

Richmond Collinsworth, and Bret Cooper of Bradford Commercial Real Estate Services Leasing Agent: Russell Trenary of Trenary & Associates Inc. Landlord: YP Park Central LLC

A E T H O N E N E R GY OP E RATI NG Size: 47,679 square feet Location: 12377 Merit Drive, Dallas Tenant Rep: Melanie Hughes,

Tenant Rep: Noel Hutchison of Colliers International Leasing Agent: Marijke Lantz of Billingsley Co. Landlord: Billingsley Co. DENTONS U S LP Size: 41,241 square feet Location: 2000 McKinney Ave., Dallas Tenant Rep: Phil Puckett of CBRE Leasing Agents: Johnny Johnson, Lauren Napper, and Rodney Helm of Cushman & Wakefield Landlord: Union Investment Real Estate THE CMI G ROUP Size: 40,000 square feet Location: 631 S. Royal Lane, Coppell Tenant Reps: Rick Hughes and Natalie Snyder Bode of Cushman & Wakefield Leasing Agents: Dale Ray and Virginia Kerrigan with Avison Young Landlord: Blackstone

ARCOSA Size: 39,784 square feet Location: Ross Tower, 500 N. Akard St., Dallas Tenant Reps: Greg Biggs, Brooke Armstrong, and Kimarie Ankenbrand of JLL Leasing Agent: Hunter Lee of HPI Real Estate Services Landlord: HPI NORTH AMERI CAN COAL Size: 38,258 square feet Location: 5340 Legacy Drive, Frisco Tenant Reps: Steve Thelen and Scott Hage of JLL Leasing Agents: John Brownlee and Michael Williams of Peloton Commercial Real Estate Landlord: Fortis Property Group PRIME THERAPEUT I C S Size: 38,203 square feet Location: 2901 Kinwest Pkwy., Irving Tenant Rep: Russell Cosby of JLL Leasing Agents: Matt Schendle

7 14 MAIN

GE NS L E R Size: 41,979 square feet Location: 5646 Milton St., Dallas Tenant Reps: Jeffery Ellerman of CBRE and Randy Cooper and Scott Hobbs of Cushman & Wakefield Leasing Agent: Jeff Eckert of JLL Landlord: GlenStar Texas Asset Management 7- E L E V E N Size: 41,948 square feet Location: Connection Park, Regent Blvd., Irving Tenant Rep: Duane Henley of Transwestern Leasing Agent: Tim Terrell of Stream Realty Partners Landlord: Connection Park Partners CC H/WOLTERS KLUWER Size: 41,715 square feet Location: 9797 Rombauer Road, Dallas

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and Rodney Helm of Cushman & Wakefield Landlord: iStar

Seller Brokers: Gary Carr, John Alvarado, Evan Stone, Robert Hill, and Jared Chua of CBRE

D I L LO N G AG E Size: 37,877 square feet Location: 11925 N. Stemmons Fwy., Dallas Tenant Reps: Steve Thelen and Connor McCarthy of JLL Leasing Agent: George Billingsley of Billingsley Co. Landlord: Billingsley Co.

192 5 W. JOHN CARPENTER Size: 406,160 square feet Location: 1925 W. John Carpenter Fwy., Irving Buyer: Sunwest Real Estate Seller: MetLife Seller Brokers: Gary Carr, John Alvarado, Evan Stone, Robert Hill, and Jared Chua of CBRE

B R I D E NT Size: 37,850 square feet Location: 2501 S. State Highway 121 in Lewisville Tenant Reps: John Pelletier, Jeff Pappas, and Susan Arledge of ESRP

GRA NI TE PARK VII Size: 340,000 square feet Location: 5601 Granite Parkway, Plano Buyer: Union Investment Real Estate GmbH Seller: Granite Properties

A L STO N & B I R D Size: 36,081 square feet Location: Chase Tower Tenant Rep: Phil Puckett, Michelle Donaldson of CBRE Leasing Agents: JJ Leonard, Matt Wieser, Jackie Smith of Stream Realty Partners Landlord: Fortis Property Group

FR I S CO S QUARE Size: 321,198 square feet Location: 8874 Coleman Blvd., Frisco Buyer Broker: Maxus Realty Trust Seller: Lightstone Group Seller Brokers: Gary Carr, John Alvarado, Evan Stone, Robert Hill, and Jared Chua of CBRE

C I TY P L ACE Size: 1,350,267 square feet Location: 2711 N. Haskell Ave., Dallas Buyer: Highland Capital Management Seller: Angelo Gordon & Parmenter Seller Brokers: Creighton Stark, Chris L. Boyd, and Jihane Boury of Colliers International

FE D E X HE A DQUARTERS Size: 263,621 square feet Location: 7900 Legacy Drive, Plano

CANAL CENTRE Size: 237,847 square feet Location: 400 E Las Colinas Blvd., Irving Buyer: Canal Centre Investors Buyer Brokers: Bruce Marshall of Sperry Van Ness Seller: Libitzky Property Cos. and Sunwest Real Estate Group Seller Brokers: Gary Carr, John Alvarado, Evan Stone, Robert Hill, and Jared Chua of CBRE HIDDEN G ROVE Size: 232,389 square feet Location: 12404 Park Central Drive, Dallas Buyer: Reserve Capital Partners and Trinity Private Equity Group Buyer Brokers: Nora Hogan of Transwestern Seller: Red River Asset Mgmt.

THE ADDISO N Size: 213,583 square feet Location: 14951 N. Dallas Pkwy., Dallas Buyer: TerraCap Management Buyer Brokers: Greg Greene, Scott Lewis, and C.J. Kelly of CBRE Seller: Frontier Equity and Artemas Real Estate Partners Seller Brokers: Gary Carr, John Alvarado, Evan Stone, Robert Hill, and Jared Chua of CBRE 500 E. CARPEN T ER F WY. Size: 202,879 square feet Location: 500 E. John Carpenter Fwy., Irving Buyer: KOA Partners Buyer Broker: Christopher Schafer of ESRP Seller: Spire Realty Group PRESTON PARK Size: 198,759 square feet Location: 1800 and 1820 Preston Park Blvd., Plano Seller: A&B Properties Hawaii Seller Brokers: Gary Carr, John Alvarado, Evan Stone, Robert Hill, and Jared Chua of CBRE

MILLENNIUM TOWER

ONE AT&T P LAZ A Size: 965,800 square feet Location: 208 S Akard St., Dallas Buyers: Dundon Capital Partners and Woods Capital Seller: IEP Dallas Seller Brokers: Gary Carr, John Alvarado, Evan Stone, Robert Hill, and Jared Chua of CBRE 1 0 0 P I E R 1 P LAC E Size: 409,977 square feet Location: 100 Pier 1 Place, Fort Worth Buyer: Hertz Investment Group Seller: Hines

6105 TENNYSON PARKWAY Size: 261,927 square feet Location: 6105 Tennyson Pkwy., Plano Seller: U.S. Realty Advisors Seller Brokers: Gary Carr, John Alvarado, Evan Stone, Robert Hill, and Jared Chua of CBRE

Seller Brokers: Gary Carr, John Alvarado, Evan Stone, Robert Hill, and Jared Chua of CBRE

IMAGE COURTESY OF GAEDEKE GROUP

OFFICE SALES

Seller: KDC Real Estate Seller Brokers: Gary Carr, John Alvarado, Evan Stone, Robert Hill, and Jared Chua of CBRE

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3 03 0 P R E S I DE NT GEOR GE B U SH TP K E . Size: 186,244 square feet Location: 3033 President George Bush Tpke., Plano Buyer: Champion Partners/Cross Harbor Capital Partners Seller: Fortive Seller Brokers: Creighton Stark and Chris L. Boyd of Colliers International 714 MAIN Size: 185,000 square feet Location: 714 Main St., Fort Worth Buyer: Development Service Group Inc. Seller: XTO Energy Inc. Seller Brokers: Ryan Matthews of JLL L A K E WO O D TOW E R S Size: 170,111 square feet Location: 6301 Gaston Ave., Dallas Buyer: Caddo Holdings LLC Seller: Highland Lakewood Seller Brokers: Gary Carr, John Alvarado, Evan Stone, Robert Hill, and Jared Chua of CBRE A B RA M S R OAD OFFI C E CA M P U S Size: 166,508 square feet Location: Abrams Road in Dallas Seller: Area/EY NCLBJ Seller Brokers: Scot Farber and Tom Strohbehn of Cushman & Wakefield

IMAGE COURTESY OF GAEDEKE GROUP

A L P H A TOW ER Size: 161,000 square feet Location: 5757 Alpha Road in Dallas Seller: Alpha Tower Ltd. Seller Brokers: Scot Farber and Tom Strohbehn of Cushman & Wakefield TH E L A N D M A R K Size: 159,267 square feet Location: 14800 Landmark Blvd., Addison Buyer: Yacht Harbor Capital Advisors Seller: Sunwest Real Estate/ Libitzky Property Co. Seller Brokers: Creighton Stark and Chris Boyd of Colliers International

B R OOK HOL LOW PLACE Size: 134,921 square feet Location: 7610 Stemmons in Dallas Seller: Good Signature Properties Seller Brokers: Scot Farber and Tom Strohbehn of Cushman & Wakefield W T WAGGONER BUILDING Size: 119,846 square feet Location: 810 Houston St., Fort Worth Buyer: Northland Properties Buyer Brokers: David Walters and Marty Neilon of CBRE Seller: XTO Energy Inc. Seller Brokers: Ryan Mathews of JLL S PR I NG VAL LEY B US I NE SS PARK Size: 118,000 square feet Location: 4300-4488 Spring Valley, Farmers Branch Buyer: SV Associates Partnership Buyer Brokers: Andy Folmer and Rich Young Jr. of Rich Young Co. PE TR OL E UM BU ILDING Size: 117,000 square feet Location: W. 6th St., Fort Worth Buyer: Sundance Square Seller: XTO Energy Inc Seller Brokers: Ryan Matthews of JLL WATE R S R I DG E I & II Size: 108,368 square feet Location: 1965 Lakepoint Drive and 1825 Lakeway Drive in Lewisville Seller: FN Waters Ridge Seller Brokers: Scot Farber and Tom Strohbehn of Cushman & Wakefield FR E E POR T CORPORATE C E NTE R Size: 98,623 square feet Location: 8650 Freeport Pkwy., Irving Seller: Sabal Financial Group Seller Brokers: Gary Carr, John Alvarado, Evan Stone, Robert Hill, and Jared Chua of CBRE B E AUTI CONT ROL INC. Size: 86,383 square feet Location: 2121 Midway Road, Carrollton

Buyer: JMTY Group LP Seller: BeautiControl Inc. Seller Broker: Sharon Morrison, Jim Hazard, and Saadia Sheikh of ESRP CORPORAT E C EN T ER Size: 82,578 square feet Location: 740-800 N. Watters Road, Allen Buyer: Commodore Drive LP Seller: JaRyCo Development Seller Brokers: Creighton Stark, Chris L. Boyd, Susan GwinBurks, Bruce Butler, and John Bowles of Colliers International

“Pioneering office development in South Dallas and West Dallas is something that has yet to be seen. This will be imperative for the market’s ability to continue to attract millennials.” KYLE JACOBS MANAGING PARTNER R U B I C O N R E P R E S E N TAT I O N

THE BINYON - O ’KEEF E BU ILDING Size: 82,229 square feet Location: 210 E. Seventh St., Fort Worth Buyer: 210 E. Seventh St. Seller: XTO Energy Inc. Seller Broker: Ryan Matthews of JLL PARK FOREST Size: 80,057 square feet Location: 3530 Forest Lane in Dallas Buyer: Falcon Acquisitions Ltd. Seller: BRI 1815 3530 LLC Seller Brokers: Scot Farber and Tom Strohbehn of Cushman & Wakefield 1159 COTTO N WO O D L AN E Size: 73,400 square feet Location: 1159 Cottonwood Lane in Irving Buyer: Cottonwood Lane Properties Seller: 217-94 Gruma Building Holdings LP Seller Brokers: Scot Farber and Tom Strohbehn of Cushman & Wakefield LOTU S OFF I C E C EN T ER Size: 71,752 square feet Location: 3460-3480 Lotus Drive, Plano Buyer: GBP Industrial Development LLC Seller: Lotus Office Ventures LLC Seller Brokers: Creighton Stark, Chris L. Boyd, Susan Gwin Burks, Bruce Butler, and John Bowles of Colliers International

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INDUSTRIAL

INDUSTRIAL LEASES

Landlords: Ridge Development and Invesco Real Estate

L I V I N G SPAC E S Size: 858,445 square feet Location: 1303 W. Pioneer Pkwy., Grand Prairie Tenant Reps: Clay Smith and Mark Newman of JLL Leasing Agents: Craig Jones, Terry Darrow, and Randy Touchstone of JLL

THI R TY- ONE G IFTS Size: 651,000 square feet Location: 951 Garden Ridge Blvd., Flower Mound Landlord: Prologis

TE L LWO R KS Size: 722,733 square feet Location: 4101 Research Blvd., Arlington Tenant Rep: Ryan Keiser of CBRE Leasing Agents: John Brewer and Joe Rudd of Transwestern

AM AZON Size: 604,800 square feet Location: 944 W. Sandy Lake Road, Coppell Leasing Agents: Nathan Orbin and Kurt Griffin of Cushman & Wakefield Landlord: Clarion Partners 3M CO. Size: 603,050 square feet Location: 300 Gateway Pkwy.,

Roanoke Leasing Agent: Steve Trese, Wilson Brown, and J. Scott Moore of CBRE Landlord: 300 Gateway Pkwy.

Leasing Agents: Josh Barnes and Ben Wallace of Holt Lunsford Commercial Landlord: Dollar Flowers Realty Partners

G EODIS LOG ISTICS Size: 594,000 square feet Location: 4040 Pipestone Road, Dallas Tenant Rep: Ann Huntington of CBRE Leasing Agent: John Gorman of Holt Lunsford Commercial

ROMARK Size: 550,284 square feet Location: 1015 W. Wintergreen Road, Hutchins Tenant Rep: Blake Anderson of Savills Studley Leasing Agent: Matt Hyman of Duke Realty Landlord: Duke Realty

AT HOME STORES Size: 555,321 square feet Location: 4040 Forest Lane, Garland Tenant Rep: Nathan Lawrence of CBRE

ELEMENTS INTERNATI O N AL GRO UP Size: 487,200 square feet Location: 2250 Skyline Road, Mesquite

IMAGE COURTESY OF HILLWOOD

ALLIANCE CENTER NORTH I

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Tenant Rep: Nathan Lawrence of CBRE A L A N R I TCH EY I NC . Size: 450,340 square feet Location: 4931 Conflans Road, Irving Tenant Reps: Craig Jones and Caleb McCoy of JLL Landlord: Jackson Shaw P P G A R C H I T EC TURAL FI NI S H E S I NC . Size: 449,220 square feet Location: 530 Lakeside Pkwy., Flower Mound Tenant Reps: Tom McCarthy, Craig Jones, and Trevor Ragsdale of JLL Leasing Agents: Randy Wood and Jeff Thornton of Duke Realty Landlord: Duke Realty Corp. C &W W H OL E SAL E G R OC E R S Size: 445,695 square feet Location: 777 Freeport Pkwy., Coppell Tenant Rep: Bob Gibson of CBRE Leasing Agents: Ken Wesson and Mark Graybill of Lee & Associates Landlord: GLP R OL L S - R OYC E Size: 443,945 square feet Location: 2112 Eagle Pkwy., Fort Worth Tenant Rep: Cushman & Wakefield Landlord: City of Fort Worth

IMAGE COURTESY OF HILLWOOD

V M I NNOVAT I ONS Size: 416,891 square feet Location: 1200 W. Wintergreen Road, Hutchins Tenant Reps: Mark Collins, Dean Collins, and Adam Campbell of Cushman & Wakefield Leasing Agent: Matt Elliott of NAI Robert Lynn E X E L LOG I STI C S Size: 409,914 square feet Location: 13601 Independence Pkwy., Fort Worth Tenant Reps: Dave Anderson and Krista Raymond of CBRE Leasing Agent: Tony Creme of Hillwood Landlord: Hillwood

C E VA FR E I GHT LLC Size: 396,710 square feet Location: 1901 W. Airfield Drive, Grapevine Tenant rep: Tim Vogds of CBRE

Leasing Agent: Canon Shoults of Holt Lunsford Commercial Landlord: David Tessel RENT THE R UN WAY Size: 319,200 square feet Location: 1111 Bardin Road, Arlington Leasing Agent: Brian Gilchrist of CBRE

CA R D I NA L HEALTH Size: 361,690 square feet Location: 3080 W. Interstate 20, Grand Prairie Tenant Rep: Mike Kay of CBRE Leasing Agent: Canon Shoults of Holt Lunsford Commercial Landlord: AEW

XPO LOG IST I C S Size: 318,768 square feet Location: 3300 Eagle Pkwy., Fort Worth Tenant Reps: Allen Gump and Allyson Yost of Colliers International Leasing Agent: Tony Creme of Hillwood Landlord: Hillwood

PR OFE SS I ONAL PAC KAGI NG SERVICES Size: 349,421 square feet Location: 1400 N. Hwy. 360, Grand Prairie Tenant Rep: Stream Realty Partners Leasing Agent: CBRE GEOD I S LOGISTICS Size: 347,096 square feet Location: 2010 January Lane, Grand Prairie Tenant Rep: Ann Huntington of CBRE Leasing Agent: Kacy Jones of CBRE Landlord: Park 161 Distribution Center E L EC TR OLUX HOME PR OD UC TS Size: 343,421 square feet Location: 2935 Danieldale Road, Lancaster Tenant Rep: Seth Kelly of CBRE Leasing Agent: John Gorman of Holt Lunsford Commercial Landlord: Clarion HOL L AND E R SLEEP Size: 322,215 square feet Location: 2615 Gifford Street, Grand Prairie Tenant Reps: Gary Lindsey and Jim Belcher of NKF Leasing Agents: Kurt Griffin and Nathan Orbin of Cushman & Wakefield Landlords: Crow Holdings and Goldman Sachs AL PHA FUR N ITU RE Size: 320,366 square feet Location: 2401 Marshall, Grand Prairie Tenant Rep: Canon Shoults of Holt Lunsford Commercial

CEVA G OVERN MEN T SERVICES Size: 305,617 square feet Location: 2581 Golden Triangle Blvd., Fort Worth Tenant Rep: Tim Vogds of CBRE

“If job growth continues at its current pace, we can look forward to a strong industrial market in Dallas-Fort Worth in 2019.” Ann Huntington Senior Vice President CBRE

TONY & G UY Size: 302,944 square feet Location: 1655 Waters Ridge, Lewisville Tenant Rep: Rick Hughes of Cushman & Wakefield SMART WA REH O US I N G Size: 269,494 square feet Location: AllianceCenter North 15, AllianceTexas Tenant Reps: John Sharpe and Reid Bassinger of Lee & Associates Leasing Agent: Reid Goetz of Hillwood TEASEDALE F O O D PRODU CTS Size: 268,653 square feet Location: 2115 E. Beltline Road, Carrollton Tenant Rep: Jeff Mercer of Mercer Co. Leasing Agents: Jim Brice and Andrew Gilbert of Holt Lunsford Commercial Landlord: Lexington Realty Trust SAMSU NG EL EC T RO N I C S Size: 263,000 square feet Location: 400 Dividend Drive, Coppell

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V E R I T I V OP E RATI NG CO. Size: 246,483 square feet Location: 2828 Trade Center Dr., Carrollton Tenant Rep: Tim Vogds, Daniela Neukam, and Deborah Royal of CBRE

TEXAS STAR WAREHOU SE & DISTRIBUTION INC. Size: 198,921 square feet Location: 5200 E. Grand Ave., Dallas Leasing Agents: Canon Shoults and Josh Barnes of Holt Lunsford Commercial Landlord: Frontier Equity

A N V I L I NTE R NATI ONA L Size: 218,400 square feet Location: 1401 Valley View Lane, Irving Tenant Reps: Gary Lindsey and Jeffrey Read of Newmark Knight Frank Leasing Agent: Dan Lawson of Proterra Properties, Inc. Landlord: BPREP 1401 Valley View LLC CA R T E R D I STR I B UTI ON Size: 218,272 square feet Location: 6657 Oak Grove Drive, Fort Worth Leasing Agents: Matt Carthey and Donnie Rhodes of Holt Lunsford Commercial Landlord: CH Ralty VII/I Fort Worth Carter H D SU P P LY Size: 207,002 square feet Location: 240 Dividend Drive, Coppell Tenant Rep: Allen Gump of Colliers International Leasing Agent: Randy Wood of Duke Realty KC P TE L ECO M M U N I CATI ONS Size: 204,556 square feet Location: 801 International Blvd., Grapevine Tenant Reps: Tom Walrich and Connor Hunt, Lee & Associates Leasing Agent: Blake Kendrick of Stream Realty Partners Landlord: Prologis CA R O L I N A B E V E RAGE Size: 201,204 square feet Location: 13300 Park Vista Blvd., Fort Worth Tenant Rep: David Sours of CBRE Leasing Agent: Reid Goetz of Hillwood

“Look for speculative construction starts to decrease. Not because of a fear of a declining market, but because land sites are becoming harder to find.” Craig Jones Managing Director JLL

AIRBORNE TACTICAL ADVANTAG E CO. Size: 183,908 square feet Location: Westport 3, AllianceTexas Leasing Agent: Tony Creme of Hillwood BSN SPORTS Size: 180,841 square feet Location: 13700 Benchmark Drive, Dallas Tenant Reps: David Eseke, Mike Wyatt, and Barrett Jones of Cushman & Wakefield BETTER HOME PRODU CTS Size: 179,875 square feet Location: 600 109th St., Arlington Tenant Rep: John Brewer of Transwestern CHASE INDU STRIES Size: 172,120 square feet Location: 5350 Frye Road, Irving Tenant Rep: Colliers International Leasing Agents: Kurt Griffin, Nathan Orbin, and David Eseke of Cushman & Wakefield Landlord: Liberty Property Trust ZOBELE G ROU P Size: 164,419 square feet Location: 3502 Regency Crest Drive, Garland Tenant Reps: Terry Darrow and Chris Stout of JLL Leasing Agent: Ryan Wolcot of Stream Realty Landlord: Stag Texas Holdings

INFINITE ELEC T RO N I C S Size: 157,750 square feet Location: Creekview 121, 301 Leora Lane, Lewisville Tenant Reps: Brad Struck, Sharon Morrison and David Willis of ESRP FIAT CHRYSL ER Size: 153,814 square feet Location: 1613 Hutton Drive, Carrollton Tenant Rep: David Eseke of Cushman & Wakefield PROFESSIO N AL INSTALLAT I O N N ET WO RK Size: 152,160 square feet Location: 9001-9015 Sterling Street, Irving Tenant Rep: Rick Medines of NAI Robert Lynn Leasing Agent: Canon Shoults of Holt Lunsford Commercial Landlord: Bookfield J P FULFILL MEN T LOG ISTICS Size: 151,200 square feet Location: 5220 S. Westmoreland Road, Dallas Leasing Agents: Kurt Griffin and Nathan Orbin of Cushman & Wakefield Landlord: Brookfield Property Group TSI PRODU C TS Size: 149,802 square feet Location: Great Southwest 31, 809 110th St., Arlington Tenant Reps: Jim Hazard and Brad Struck of ESRP ALLIANCE S PO RTS GRO UP Size: 142,412 square feet Location: Gateway 2, AllianceTexas Tenant Reps: Cannon Camp and Todd Burnette of JLL Leasing Agent: Tony Creme of Hillwood Landlord: Hillwood DARTCO OF T EXAS L LC Size: 139,971 square feet Location: 2777 W. Danieldale Road, Dallas Tenant Reps: Gary Lindsey and Rob Hughes of NKF Leasing Agent: John Gorman of Holt Lunsford Commercial Landlord: Stoneridge Fund X

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IMAGE COURTESY OF DUKE REALTY

BECKNELL INDU STRIAL Size: 201,010 square feet Location: 9900 Bonnie Road, Dallas Leasing Agents: Kurt Griffin and Nathan Orbin of Cushman & Wakefield Landlord: Vistaprint

Tenant Rep: Forshey Hoobler of JLL Leasing Agent: Randy Wood of Duke Realty

IND U ST R I A L • LE AS E S

S I E M A N S P OSTAL , PAR C E L A N D A I R P O RT LOGI STI C S Size: 137,500 square feet Location: 1225 N. 28th Ave., Irving Tenant Rep: John Wolf of Newmark Knight Frank Leasing Agent: NAI Robert Lynn Landlord: DCT Industrial Trust A L L I A NC E G LASS & M E TA L Size: 136,825 square feet Location: 2901 W. Kingsley Road, Garland Tenant Rep: Nathan Denton of Lee & Associates Leasing Agents: Chris Stout and Randy Touchstone of JLL Landlord: STAG Industrial S U N R I S E WOOD D E S I GNS Size: 135,405 square feet Location: 8801 Autobahn, Dallas Tenant Rep: Baron Aldrine of CBRE Leasing Agent: Canon Shoults and John Gorman of Holt Lunsford Commercial Landlord: TA ASS O CI AT E D SA L E S & B AG Size: 133,332 square feet Location: 4039 Rock Quarry Road, Dallas Tenant Rep: Stan McClure of CBRE

Location: 4051 La Reunion, Dallas Tenant Reps: Jay Austin and Travis Sapaugh of CBRE Leasing Agent: John Gorman of Holt Lunsford Commercial Landlord: AEW W E STI N AUTOMOTIVE PR OD UC TS INC. Size: 128,000 square feet Location: 4675 Railhead Road, Fort Worth Tenant Reps: Reid Bassinger and Trey Fricke of Lee & Associates Leasing Agent: Bob Scully of CBRE Landlord: James Campbell Co. V E R I TI V OPERATING CO. Size: 127,680 square feet Location: 2828 Trade Center Dr., Carrollton Tenant Rep: Tim Vogds, Daniela Neukam, and Deborah Royal of CBRE NOR TH AM E RICAN ATK COR PORATI O N Size: 126,279 square feet Location: 1102 W. N. Carrier Pkwy., Grand Prairie

Tenant Rep: Tim Vogds and Jake Bobek of CBRE NEWSOME DESIG NS LLC Size: 119,083 square feet Location: 13780 Benchmark Drive, Farmers Branch Tenant Rep: Landry Commercial Leasing Agent: Blake Kendrick of Stream Realty Partners Landlord: DRA Advisors BROADRIDG E FINANCIAL Size: 117,260 square feet Location: 404 Royal Lane, Coppell Tenant Rep: David Eseke of Cushman & Wakefield BU ILDERS FIRSTSOURCE Size: 117,072 square feet Location: 8701 Sterling St., Irving Tenant Reps: Reid Bassinger and Trey Fricke of Lee & Associates Leasing Agent: Brett Owens of Transwestern Commercial Services Landlord: Colony NorthStar Inc. AS AMERICA INC. Size: 117,000 square feet

Location: 101 Sunridge Blvd., Wilmer Tenant Rep: Jean Russo and Jay Lucas of Cushman & Wakefield CID RESOURC ES Size: 114,105 square feet Location: 601 S. Royal Lane, Coppell Tenant Rep: Ryan Boozer of Stream Realty Partners Leasing Agent: Randy Wood of Duke Realty FRESENIU S Size: 114,105 square feet Location: 601 S. Royal Lane, Coppell Tenant Rep: Corbin Crews of CBRE Leasing Agent: Randy Wood of Duke Realty INTERMEX PRO D UC TS Size: 104,000 square feet Location: 1375 Avenue S., Grand Prairie Tenant Rep: Nathan Denton of Lee & Associates Leasing Agent: Canon Shoults of Holt Lunsford Commercial Landlord: KKR

LANCASTER 2820

IMAGE COURTESY OF DUKE REALTY

C H E L SE A B U I L D I NG P R OD U CTS Size: 130,816 square feet Location: 1001 Ed Rutherford, Greenville Tenant Reps: Chris Stout and Craig Phelps of JLL Leasing Agents: Chris Stout and Craig Phelps of JLL A & B TRA NS F E R CO. A R M STR ONG R E LOCATI ON Size: 130,500 square feet Location: 4030 Mint Way, Dallas Tenant Rep: Bill De La Chappelle of Transwestern Leasing Agents: Canon Shoults and John Gorman of Holt Lunsford Commercial Landlord: Blackstone W I L S O N A R T L LC Size: 129,800 square feet

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IN D USTR IA L • SALES

B R I G H TO N B E ST Size: 101,575 square feet Location: 3325 Roy Orr Blvd., Grand Prairie Tenant Rep: Travis Sapaugh of CBRE Leasing Agent: Matt Hyman of Duke Realty Landlord: Duke Realty

LOGI STI C S CENTER II Size: 1,008,176 square feet Location: 2601 W. Bethel Road, Coppell Buyer: Gramercy Property Trust Seller: Hillwood Seller Brokers: Randy Baird, Ryan Thornton, Jonathan Bryan, and Jack Fraker of CBRE

TR I STA R G L ASS Size: 100,343 square feet Location: 1750 Westpark Drive, Grand Prairie Tenant Rep: David Eseke of Cushman & Wakefield

NATI ONA L U RBAN LOG ISTI C S POR TFO LIO: DFW Size: 938,679 square feet Location: Various sites throughout North Texas Buyer: Investcorp International Realty Inc. Seller: Greenfield Partners Seller Brokers: Jack Fraker, Randy Baird, Ryan Thornton, Jonathan Bryan of CBRE

CA B OT FU N D I V: DA L L AS ASSETS Size: 3,222,652 square feet Location: Various sites throughout North Texas Buyer: Blackstone Group Seller: Cabot Properties Inc. Seller Brokers: Randy Baird, Ryan Thornton, Jonathan Bryan, and Jack Fraker of CBRE P R OJ ECT LO N GHOR N: TE XAS ASS E TS Size: 2,051,552 square feet Location: Various sites throughout North Texas Buyer: Mapletree Investments Seller: Exeter Property Group Seller Brokers: Randy Baird, Ryan Thornton, Jonathan Bryan, and Jack Fraker of CBRE

TOYS R US Size: 836,561 square feet Location: 380 Railport Pkwy., Midlothian Buyer: Malouf Sleep Buyer Brokers: Reid Bassinger, Trey Fricke, Lee & Associates Seller: Toys R’ Us M I SS I ON FOODS Size: 775,094 square feet

MOUNTAIN CREEK DISTRIBU TION CENTER 2 Size: 663,000 square feet Location: 7243 Grady Niblo Road, Dallas Buyer: TA Realty Seller: Crow Holdings Capital Seller Brokers: Randy Baird, Ryan Thornton, Jonathan Bryan, Jack Fraker of CBRE

CENTREPORT B UI L D I N G 5 Size: 466,224 square feet Location: 14500 FAA Blvd., Fort Worth Buyer: Global Logistics Seller: Hillwood Seller Brokers: Randy Baird, Ryan Thornton, Jonathan Bryan, and Jack Fraker of CBRE

G ATEWAY DISTRIBUTION CENTER Size: 603,050 square feet Location: 300 Gateway Pkwy., Roanoke Buyer: John Hancock Seller: UBS Realty Investors Seller Brokers: Randy Baird, Ryan Thornton, Jonathan Bryan, and Jack Fraker of CBRE CARTER DISTRIBU TION CENTER Size: 488,564 square feet

EAG LE PARK 20/35 Size: 454,408 square feet Location: 1240 E. Centre Park Blvd., DeSoto Buyer: LBA Realty Seller: Ridgeline Property Group and Stockbridge Capital Seller Brokers: Dustin Volz and John Huguenard of JLL. FOSSIL CRE EK Size: 432,485 square feet Location: 5457-5501 Sandshell Drive, Fort Worth Buyer: Kohlberg Kravis Roberts

LIBERTY I-20 COMMERCE CENTER

95 0 0 S . P O L K AV E . Size: 1,316,341 square feet Location: 9500 S. Polk Ave., DeSoto Buyer: Kohler Buyer Broker: J. Holmes Davis IV of Binswanger Seller: Prologis Seller Brokers: Mitch Pruitt of Prologis TE XAS U R B A N LOGI STI C S Size: 1,015,672 square feet Location: Various sites throughout North Texas Buyer: Kohlberg Kravis Roberts & Co. Seller: Crow Holdings Capital Seller Brokers: Randy Baird, Ryan Thornton, Jonathan Bryan, and Jack Fraker of CBRE

Location: 6633-6657 Oak Grove Rd., Fort Worth Buyer: Cabot Properties Seller: Crow Holdings Capital Seller Brokers: Randy Baird, Ryan Thornton, Jonathan Bryan, and Jack Fraker of CBRE

IMAGE COURTESY OF CUSHMAN & WAKEFIELD

INDUSTRIAL SALES

Location: 2404 W. Pioneer Pkwy., Grand Prairie Buyer: Ramrock Real Estate LLC Seller: Robinson Weeks Seller Brokers: Randy Baird, Jonathan Bryan, and Ryan Thornton of CBRE

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IND U STR I A L • SA LE S

Seller: Johnson Development Associates Seller Brokers: Randy Baird, Ryan Thornton, Jonathan Bryan, and Jack Fraker of CBRE W E STPA R K D I STR I B UTI ON C E NTE R Size: 425,870 square feet Location: 1750-1850 Westpark Drive, Grand Prairie Buyer: Stonelake Capital Partners Seller: TA Realty Seller Brokers: Randy Baird, Ryan Thornton, Jonathan Bryan, and Jack Fraker of CBRE S O U T H P O I N TE A& B Size: 414,618 square feet Location: 3951 & 3901 Corporate Drive, Dallas Buyer: Clarion Partners Seller: The Pauls Corp. Seller Brokers: Randy Baird, Ryan Thornton, Jonathan Bryan, Jack Fraker of CBRE 1 0 TH STR E E T WAR E HOUS E Size: 392,387 square feet Location: 10th Street and F Ave., Plano Seller: Saskaway Management Seller Brokers: Beth Lambert and Diego Arroyave of Cushman & Wakefield

IMAGE COURTESY OF CUSHMAN & WAKEFIELD

VA L L E Y V I E W D FW A I R P O RT Size: 294,795 square feet Location: 2800 Valley View Ln., Irving Buyer: Kohlberg Kravis Roberts Seller: Johnson Development Associates Seller Brokers: Randy Baird, Ryan Thornton, Jonathan Bryan, and Jack Fraker of CBRE 49 49 J OSE P H HAR D I N Size: 289,000 square feet Location:4949 Joseph Hardin Drive, Dallas Buyer: Polk Street Industrial Buyer Broker: Taylor Meyer of Polk Street Industrial Seller: Ron Hopton-Jones of Linron Properties Ltd. Seller Brokers: Zane Marcell, Dustin Volz, and Grant Mathews of JLL

D FW E AST LOG ISTICS C E NTE R Size: 259,555 square feet Location: 4400-4500 W. Walnut Hill Ln., Irving Buyer: Hines Interests LP Seller: DFW East Logistics Partners LLC Seller Brokers: Randy Baird, Ryan Thornton, Jonathan Bryan, Jack Fraker of CBRE

Seller Broker: Michael Haggar and Nick Hayden of JLL

46 85 M OUNTAIN CREEK Size: 230,664 square feet Location: 4685 Mountain Creek, Dallas Buyer: Clarion Partners Seller: The Pauls Corp. Seller Brokers: Randy Baird, Ryan Thornton, Jonathan Bryan, Jack Fraker of CBRE

CENTREPO RT B UI L D I N G 3 Size: 134,625 square feet Location: 14401 Sovereign Road, Fort Worth Buyer: Global Logistics Properties Seller: Hillwood Seller Brokers: Randy Baird, Ryan Thornton, Jonathan Bryan, Jack Fraker of CBRE

AL L E N STATION Size: 220,326 square feet Location: 301 Exchange Pkwy., Allen Seller: Clarion Partners Seller Brokers: Jud Clements, Robby Rieke, and Taylor Starnes of Cushman & Wakefield 3310 KI NGS LEY Size: 218,787 square feet Location: 3310 Kingsley Road, Garland Buyer: Young Valley Buyer Broker: Keenan Cook of Mercer Co. Seller: Clarion Seller Brokers: Josh Barnes and Ben Wallace of Holt Lunsford Commercial 12 2 0 S E NL AC DRIVE Size: 180,298 square feet Location: 1220 Senlac Drive, Carrollton Buyer: Jallad & R Investment Buyer Broker: Adam Graham of Lee & Associates Seller: McKesson Seller Broker: Steve Berger of CBRE 670 0 D E NTO N DRIVE Size: 173,270 square feet Location: 6700 Denton Drive, Dallas Buyer Broker: Newt Walker of Newt Walker Co. Seller: Quad/Graphics Commercial & Specialty

23 25 BELT L I N E ROAD Size: 138,317 square feet Location: 2325 Belt Line Road, Carrollton Seller: Brook Beltline LP Seller Brokers: Adam Curran, David Eseke, and Mike Wyatt of Cushman & Wakefield

“DFW continues to be a safe harbor for investors, and users continue to come here for convenient access to customers and favorable business climate.” Chris Teesdale Executive Vice President C O L L I E R S I N T E R N AT I O N A L

3 4 22 KING SL EY ROAD Size: 129,035 square feet Location: 3422 Kingsley Road, Garland Buyer: B2 Signs Seller: Clarion Seller Brokers: Josh Barnes and Ben Wallace of Holt Lunsford Commercial 3 414 HERMAN N Size: 120,000 square feet Location: 3414 Hermann Drive, Garland Buyer: 3414 Hermann Garland Buyer Broker: Josh Barnes of Holt Lunsford Commercial Seller: L3 Technologies Seller Broker: Alex Coe of Cresa QORVO TEXAS L LC Size: 114,247 square feet Location: 1201 E. Campbell Road, Richardson Buyer: Qorvo Texas LLC Buyer Broker: Jim Hazard of ESRP Seller: TAF Campbell Commons and The Aztec Fund FMI RECYCL I N G Size: 113,690 square feet Location: 2929 Glenfield Ave., Dallas Buyer: Freewings Realty LLC Buyer Brokers: Barrett Bufkin and Sharon Morrison of ESRP Seller: 2929 Glenfield LLC

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180925 DCEO_Nov Ad_v1.pdf

9/25/18

4:47 PM

IN THE HEART OF IT HALL Welcome to HALL Arts, a threephase mixed-use destination located in the world-renowned Dallas Arts District. C

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Phase II includes HALL Arts Residences, a 28-story luxury residential high-rise opening in early 2020, and HALL Arts Hotel, a 183-room boutique hotel opening in fall 2019.

HALLARTS.COM

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R E TA I L • LE AS E S

RETAIL F LO RA STR E ET CA F E

RETAIL LEASES

IMAGE COURTESY OF WEITZMAN

M A R K E T ST R E E T Size: 62,000 square feet Location: 42 68 Legacy Drive, Frisco Leasing Agent: Frederick Kippes of Regency Centers Landlord: Regency Centers TO M T H U M B S U P E R M A R K ET Size: 55,000 square feet Location: F.M. 549 and Laurence Drive, Heath Tenant Reps: Clay Smith and Mark Newman of JLL Leasing Agent: Brad Enderby of Thompson Realty Capital Landlord: Heath Crossing Ltd.

TAR GE T CORP. Size: 54,746 square feet Location: 8355 Westchester Drive, Dallas Tenant Rep: Karla Smith of CBRE Leasing Agent: Shawn Fullman and Chris Thomas, LPC Retail Landlord: Preston Center Pavilion

HEY DAY ENTERTAINMENT Size: 42,580 square feet Location: Hwy. 75 and FM 691, Denison Tenant Reps: Bryan Cornelius and Tim Henson of Venture Commercial Leasing Agent: Ryan Smith of Venture Commercial Landlord: Denison Industrial

GLOWZONE Size: 46,039 square feet Location: 2416 Stemmons Fwy., Lewisville Tenant Rep: Colliers International Leasing Agents: Jaylor Black and Matthew Luedtke, Weitzman Landlord: Lakepointe Crossing

ALAMO DRAFTHOU SE Size: 42,000 square feet Location: 8380 Davis Blvd., North Richland Hills Tenant Rep: Chance Olin of Olin Realty Partners BEYOND IMAG INATION ENTERTAINMENT Size: 41,667 square feet

Location: Technology Industrial Center, 10155 Technology Blvd., Dallas Tenant Rep: McGregor Converse of Venture Commercial PAINTED TR EE MARKETPLAC E Size: 38,230 square feet Location: 2230 Justin Road, Highland Village Leasing Agents: Dan Shoevlin and Carter Butler of CBRE Landlord: Brixmor Holdings 12 SPE, LLC RAISING CAN E’S RESTAURAN TS Size: 35,000 square feet Location: State Highway 80 and FM 548, Forney

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R E TA IL • LE ASES

Tenant Rep: Kevin Beard of Venture Commercial Landlord: LCG Highway 80 L A FI TNE SS Size: 34,000 square feet Location: West Illinois Avenue and Zang Boulevard in Dallas Leasing Agents: Ben Hines and Mike Wilson of Venture Commercial Tenant Reps: Jonathan Cooper and John Zikos of Venture Commercial and John Kalamaras of RealSource LLC Landlord: Brixmor Property Group STE I NM A R T INC . Size: 34,000 square feet Location: Sublett Corners, 5906 S. Cooper St. in Arlington Leasing Agents: Amanda Throckmorton and Easley B. Waggoner Jr. of Venture Commercial H O M E ZO N E FUR NI TUR E Size: 30,000 square feet Location: 110 W. Campbell Road, Richardson Leasing Agents: Jared Aubrey and Michael Austry of CBRE Landlord: Kimco Realty OW E NS H O M E FU R NI S H I NG S Size: 26,000 square feet Location: 904 N. Central Expy., Plano Tenant Rep: Andrew Shaw of NAI Robert Lynn Leasing Agent: CBRE TOTA L W I NE Size: 25,000 square feet Location: 2951 S. H. 121, Euless Tenant Reps: Darrell Hernandez and Jack Breard of CBRE Leasing Agents: Josh Flores and Steve Ewing of Edge Realty Landlord: Glade Park M I CH A E L S Size: 23,678 square feet Location: 8600 Preston Rd., Plano Leasing Agents: Dan Shoevlin and Taylor Roberts of CBRE Landlord: OTR B U R K E ’ S OU TL E T STOR E S Size: 20,092 square feet

DULUTH TRAD I N G CO. Size: 14,557 square feet Location: 620 E. Interstate 20 in Arlington Tenant Reps: Charlotte Cooper and Clay Mote of Venture Commercial, and Matt Fetter of Baum Realty Group Landlord: Oppidan Investment

Location: Epic West Towne Crossing, State Highway 161 and Mayfield Road, Grand Prairie Tenant Reps: Bryan Cornelius and Jim Dunn of Venture Commercial Leasing Agents: Jennifer Frank and Rose Meza of Segovia Retail Group LLC Landlord: Epic West Towne Crossing LP

CORKY ’S G AMI N G B I ST RO Size: 13,675 square feet Location: 3520 Grapevine Mills Blvd., Grapevine Leasing Agent: Chris Housewright of Billingsley Co. Landlord: Billingsley Co.

M ANS FI E L D ED MOB Size: 19,465 square feet Location: 1710 N. Hwy. 287, Mansfield Tenant Reps: Tey Tiner and Austin Barrett of CBRE GUI TA R C E N TER STORES Size: 15,670 square feet Location: Hulen Fashion Center, 5250 S. Hulen St., Fort Worth Leasing Agents: Amanda Throckmorton and Easley B. Waggoner Jr. of Venture Commercial Landlord: Venture Hulen LP KI DS E M PI R E Size: 15,000 square feet Location: 4217 S. Cooper St., Arlington Tenant Reps: Robin Barrow and Eddie Liebman of Weitzman Leasing Agents: Chris Young of Phillips Edison NATURA L GROCERS Size: 14,870 square feet Location: 677 W. Campbell Road, Richardson Tenant Reps: Tim Henson and Clay Mote of Venture Commercial; James Craddock of Craddock Commercial Real Estate LLC Landlord: Michael Mazaheri B OOM E RJACK’S GR I L L & B A R Size: 14,640 square feet Location: Village on the Parkway, 5100 Belt Line Road, Addison Tenant Reps: Kevin McIntosh of KMAC Group Inc.; Trinity Partners Commercial Real Estate Leasing Agents: Amanda Throckmorton, Easley Waggoner, Jr. of Venture Commercial Landlord: 5100 Belt Line Road Investors LLC

“Technology will continue to drive reinvention and reinvigoration of retail real estate. Near-term, the DFW market will continue to tighten, as construction slows and vacancy decreases, leading to increased absorption and rental rates.” STEVE LIEBERMAN CEO T H E R E TA I L C O N N E C T I O N

PURE HOCK EY Size: 12,800 square feet Location: 8600 Preston Road, Plano Leasing Agents: Dan Shoevlin and Taylor Roberts of CBRE Landlord: OTR STEINER VE N T URES Size: 11,921 square feet Location: Las Colinas Village, 861 W. John Carpenter Fwy., Irving Tenant Rep: Ron Okolichany of Franchise Real Estate Inc. Leasing Agents: Ryan Smith and Amanda Throckmorton of Venture Commercial Landlord: BRE RC Las Colinas TX LP ANG EL’S AT T I C Size: 10,943 square feet Location: 1250 William D. Tate, Ste. 350, Grapevine Leasing Agent: Bryan Dyer of The Woodmont Co. Landlord: Beall Grapevine Center LLC THE DOG STO P Size: 10,326 square feet Location: Frankford Center Shopping Center, 18110 Midway Road, Ste. 150, Dallas Tenant Reps: Albert Hernandez of Venture Commercial and Carol Lockhart of Baum Realty Group Leasing Agent: Mark Had of Triumph Commercial Realty Landlord: Frankford Center Ltd. ENVY SALO N S UI T ES Size: 10,279 square feet

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R E TA I L • LE AS E S

MEG A DOLLAR Size: 8,120 square feet Location: 3600 Gus Thomasson Road, Mesquite Tenant Rep: Steven Shellenberg of Maclay Properties Leasing Agent: Maggie Hansen of Weitzman

Location: 2307 S. Interstate 35E, Denton Leasing Agent: Emilie Gioia of John T. Evans Co. Landlord: Santander Denton Ltd. S O L A SA LON STUD I OS Size: 9,990 square feet Location: Hillcrest Village, 6959 Arapaho Road, Dallas Tenant Reps: Bryan Cornelius and Elizabeth E. Miller of Venture Commercial Leasing Agent: Josh Beliak of SHOP Cos. Landlord: HV Development Partners LP L I ON & CR OW N Size: 9,700 square feet Location: Denton Square, 101 W. Hickory St., Denton Tenant Rep: Greg Blandford of Venture Commercial Leasing Agent: Alex Payne of Axis Realty Group of Denton Landlord: LAD Ventures LLC YA R D A R T PATI O & FI R E P L ACE Size: 9,122 square feet Location: Hulen Fashion Center, 5270 South Hulen St., Fort Worth Tenant Rep: Bob Moore of Tiburon Commercial Real Estate Leasing Agent: Amanda Throckmorton and Easley B. Waggoner Jr. of Venture Commercial Landlord: Venture Hulen LP R OD EO G OAT/FLYI NG FI S H Size: 9,000 square feet Location: 9610 and 9600 Wharf Road, Dallas Tenant Rep: Gretchen Miller of Weitzman Leasing Agents: Thomas Glendenning of SHOP Cos. and Chris Housewright of Billingsley Co. Landlord: Billingsley Co. S PAG H E TTI WA R E HOUS E R E STAU RA N TS I NC . Size: 8,368 square feet Location: 10250 E. Technology Blvd., Dallas Tenant Reps: Neal Golden, John Wolf, Myron Galchutt, and Eric Tomchick of Newmark Knight Frank Landlord: Rosebriar Stemmons

CYCLE G REEN Size: 8,000 square feet Location: Enterprise Square, 2301 N. Central Expy., Plano Tenant Rep: Taylor Roberts of CBRE Leasing Agents: Taylor LeMaster, Mike Cagle, and Thad Becker of Inroads Realty Landlord: Enterprise Central

“I’m very bullish on 2019. Interest rates are still very low compared to historic trends, and Texas has never seen a stronger economy.” Jennifer Pierson Managing Partner S T R I V E R E A L E S TAT E

ICE SUSHI LOU NG E LLC Size: 7,423 square feet Location: 4080 Belt Line Road, Addison Tenant Rep: Craig Johnson of John T. Evans Co. Leasing Agent: ACRE Commercial LLC NAWLINS SEAFOOD CO. Size: 7,201 square feet Location: 1400 Hi Line Drive, Dallas Tenant Rep: John Auletta of JTA Commercial Leasing Agents: Chris Flesner and Brian Sladek of Retail Solutions

RETAIL SALES BARDIN PLACE CENTER Size: 420,5500 square feet Location: 4600-4654 S. Cooper St., Arlington Buyer: Vista Property Co. Seller: Brixmor Property Group Seller Broker: Chris Gerard, Chris Cozby, and Blaine Dozier of CBRE MCKINNEY TOWNE CROSSING Size: 242,804 square feet Location: 8800 State Highway 121 in McKinney Buyer: FRP Acquisitions Seller: IA McKinney Towne Crossing Seller Brokers: Chris Gerard, Mark Witcher, and Blaine Dozier of CBRE

SEARS Size: 225,000 square feet Location: 1617 Kings Road, Garland Buyer: Elm Creek Real Estate Buyer Broker: Simon Beakley of Davidson Bogel Real Estate Seller: Sears Roebuck & Co. VISTA RIDGE PL AZ A Size: 217,228 square feet Location: 500 E. Round Grove Rd., Lewisville Buyer: Lamar Cos. Seller: Kimco Realty Seller Broker: David Disney and Adam Crockett of Disney Investment Group SEARS Size: 159,560 square feet Location: 2401 S. Stemmons Frwy., Lewisville Buyer: Kyu M. Hwang and Moses C. Hwang Seller: SRC Real Estate LP Seller Broker: Bryan Cornelius, Clay Moten of Venture Commercial; Peter Framson of Green Lightning LLC THE COMMO N S AT WALNU T CR EEK Size: 122,273 square feet Location: 980 Highway 287 North, Mansfield Buyer: ACF Property Management Seller: TPRF IV/Walnut Creek Seller Brokers: Chris Gerard, Chris Cozby, Mark Witcher, and Blaine Dozier of CBRE SEVILLE CO MMO N S Size: 113,742 square feet Location: 2101 N Collins St., Arlington Buyer: Phillips Edison Grocery Center REIT II Seller: RFI Seville Seller Brokers: Chris Cozby, Chris Gerard, and Blaine Dozier of CBRE WESTOVER VI L L AGE Size: 111,374 square feet Location: 401-751 Alta Mere Drive, Fort Worth Seller Broker: Jennifer Pierson of STRIVE HU NTER PL AZ A Size: 106,034 square feet

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R E TA IL • SA LE S

AL B E R TS ONS Size: 55,040 square feet

Location: 822 E. Centerville Road, Garland Buyer: Interflow Commons LLC Sellers: Razor Associates and FUDO Capital LLC; NHI Investment Partners LP Seller Brokers: Charlotte Cooper and John Zikos of Venture Commercial PIONEER PLAZA Size: 51,390 square feet Location: 1200 E. Davis St., Mesquite Seller Broker: STRIVE ROYAL MACARTHU R Size: 44,915 square feet Location: 6410-6460 N MacArthur Blvd., Dallas Buyer: CH Retail Fund II Las Colinas Royal MacArthur Seller: AB Hawaii Royal MacArthur Seller Brokers: Chris Gerard, Chris Cozby, and Blaine Dozier of CBRE CEDAR HILL VILLAG E Size: 44,188 square feet Location: 213 N Highway 67, Cedar Hill Buyer: 1031 XChange Trust I

Seller: BRE DDR BR Cedar Hill Seller Brokers: Chris Gerard, Chris Cozby, and Blaine Dozier of CBRE PATEL-MACART H UR Size: 42,805 square feet Location: 8100 Walton Blvd., Irving Buyer: MacArthur Marketplace Seller: T MacArthur Mkt A TX Seller Brokers: Chris Gerard, Chris Cozby, and Blaine Dozier of CBRE MCDERMOT T TOW N CROSSING Size: 42,651 square feet Location: 1320 W. McDermott Drive, Allen Buyer: CH Realty Seller: Westwood Financial Seller Broker: David Disney and Adam Crockett of Disney Investment Group DALLAS CO MEDY H O US E Size: 39,000 square feet Location: 3022 Elm Street, 3015-3029 Main St., Dallas Buyer: Black Market Investments LLC dba Terry Black’s Barbecue GRANDSCAPE

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Seller: LAS Acquisitions LLC Seller Brokers: Chris Gibbons of Venture Commercial and Terry Syler of The Retail Connection AL B E R TS ONS Size: 62,322 square feet Location: 150 E. FM 544, Murphy Buyer: Shops of Murphy LLC Buyer Broker: Sean Porter of Capstone Commercial Real Estate Group Seller: ABS TX Investor LP Seller Brokers: Charlotte Cooper and John Zikos of Venture Commercial AL B E R TS ONS Size: 61,415 square feet Location: 8428 Denton Hwy., Watauga Buyer: Shops of Watauga LLC Buyer Broker: Sean Porter of Capstone Commercial Real Estate Group Seller: ABS TX Investor LP Seller Brokers: Charlotte Cooper and John Zikos of Venture Commercial

IMAGE COURTESY OF THE COLONY

Location: 1800-2280 Market Place Blvd., Irving Buyer: 24BB Investments Seller: 1800-2200 Market Place Blvd. Holdings Seller Brokers: Chris Gerard of CBRE M ATLOC K OAKS Size: 86,777 square feet Location: 808 SW Green Oaks Blvd., Arlington Buyer Broker: Michael Uhm of The Michael Group Seller: NAGMAS Inc. Seller Broker: Kevin Butkus of Weitzman S H OP S AT V I STA R I D GE Size: 74,837 square feet Location: 420 E. Round Grove Rd., Lewisville Buyer: Lamar Companies Seller: Kimco Realty Seller Broker: David Disney and Adam Crockett of Disney Investment Group B A NKSTON DOD GE Size: 72,500 square feet Location: 2615 Interstate 20, Grand Prairie Buyer: Drivers Select Buyer Broker: Nathan Denton of Lee & Associates Seller: AAGP LLC Seller Broker: Christopher Gibbons of JLL TH E S H OP S AT COLORA D O Size: 71,310 square feet Location: 2315 Colorado Blvd., Denton Buyer: LRIGF Denton Seller: RCG-Denton Seller Brokers: Chris Gerard, Chris Cozby, and Blaine Dozier of CBRE 3737 A I R P O RT FWY. Size: 66,232 square feet Location: 3737 Airport Frwy., Bedford Buyer: Auto Haus Imports Buyer Broker: Nathan Denton of Lee & Associates Seller: Mac Churchill L A K E V I E W PL A Z A Size: 63,391 square feet Location: 8505 Lakeview Pkwy., Rowlett Buyer: Lakeview 66 Crossing LP

IMAGE COURTESY OF VICTORY PARK

IMAGE COURTESY OF THE COLONY

R E TA I L • SA LE S

Buyer Broker: Grant English and Todd Griffiths of Venture Commercial Seller: Dappem Properties LLC Seller Broker: Jamie Field of Texas Urban Living Realty LLC M EG A N B U I L D I NG Size: 29,988 square feet Location: 17060 Dallas Pkwy., Dallas Buyer: Crosscourt Capital Company, LLC Buyer Broker: Nathan Rylander of Rubicon Representation Seller: Lexington Investments Seller Brokers: Mike Cagle and James Cagle of Inroads Realty M A NS FI E L D COM M ONS Size: 27,792 square feet Location: 990 N. Highway 287, Mansfield Seller Brokers: Scott Henard and Peter Smelko of Matthews Real Estate Investment Services Buyer Brokers: Tim Axilrod and Tommy Tucker of SHOP Cos. Investment Sales FR I S CO M A R K E TPL AC E Size: 20,823 square feet Location: 7010 Preston Road, Frisco Buyer: Antegrade Holding LLC Buyer Broker: Taylor LeMaster of Inroads Realty Seller: FMC Retail II LLC Seller Broker: Tommy Tucker of SHOP Cos. L EG ACY R E TAI L PL A Z A Size: 20,090 square feet Location: 10050 Legacy Drive, Frisco Buyer: Richardson Plaza LLC Buyer Broker: Ari Besefki of Ultra Real Estate Services Seller: JP Legacy Wyndham Commercial LLC Seller Broker: Mike Smith of Venture Commercial PATH WAYS A NE STHE S I A I NSTI TU TE Size: 20,020 square feet Location: 410 S. Central Expy., Allen Buyer: Pathways Anesthesia Institute Buyer Broker: Leah Feldhendler of Blue Slate Realty Seller: The Interior Gallery LLC

Seller Brokers: Brett Lewis and George Tanghongs of Lee & Associates B E LT L I NE S HOPPING C E NTE R Size: 16,148 square feet Location: 105 E. Belt Line Road, Cedar Hill Buyer: CNT Property Holdings Buyer Broker: Mike Geisler and Theo Thompson of Venture Commercial Seller: JAAT LLP Seller Broker: James Mangum of STRIVE Real Estate PR I NC E TON RETAIL Size: 15,177 square feet Location: 670 W. Princeton Drive, Princeton, TX Buyer: PP Princeton Texas Holdings LLC Seller: 2016 Princeton Retail Seller Broker: Ken Reimer of Venture Commercial HE B R ON FAIRWAY CENTRE Size: 14,690 square feet Location: 1628 W. Hebron Pkwy., Carrollton Seller Broker: Kevin Butkus and Derek Shuster of Weitzman

CARROLLTON RETAIL CENTER Size: 14,484 square feet Location: 3320 E. Hebron Pkwy., Carrollton Buyer: CH Realty Seller: Westwood Financial Seller Broker: David Disney and Adam Crockett of Disney Investment Group HIG H FIVE CYCLES Size: 14,250 square feet Location: 9311 LBJ Fwy., Dallas Buyer: Supermecado La Bendicion Inc. dba Supermecado La Bendicion Buyer Broker: Victor Garcia of William Davis Realty Seller: CPL Three LP Seller Broker: Michael Wilson of Venture Commercial PLANO CROSSING BU ILDING 1 Size: 11,919 square feet Location: 8908 Ohio Drive, Plano Seller: Black Lion Investment Group Seller Brokers: Tim Axilrod and Tommy Tucker of SHOP Cos.

AU TOMOTIVE B UI L D I N G Size: 9,864 square feet Location: 201 W. Kaufman St., Richardson Buyer: MFDM Real Estate Holdings LLC Buyer Broker: Ned Washburn of Venture Commercial Seller: Landis Properties LLC Seller Broker: Doug Wilder of KM Realty LLC 550 E. INTERSTAT E 3 0 Size: 9,380 square feet Location: 550 E. Interstate 30, Rockwall Buyer Broker: Alfred Goh of Pacific Century Seller Brokers: Andrew Wiley and Cole Burdette of JLL LEWISVILLE GD B C EN T ER Size: 8,700 square feet Location: 5040 State Highway 121, Lewisville Buyer: Reed Remington Graff Residence Trust Seller: Lewisville GDB LLC Seller Broker: Jonathan Cooper, Bryan Cornelius, Don Miller, and John Zikos of Venture Commercial

VICTORY PARK

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MILESTONES

A MEMOR A BLE Y EA R

DALLAS-FORT WORTH LOSES A REAL ESTATE LEGEND, AND SEES OTHER INDUSTRY LEADERS MARK OUTSTANDING ACHIEVEMENTS IN 2018.

By Jeremiah Jensen

Presidential Medal Bestowed Upon Roger Staubach

Craig Hall Celebrates 50 Years in Real Estate

In November, military veteran, pro football Hall-of-Famer, and real estate luminary Roger Staubach was presented with the Presidential Medal of Freedom. He was one of six individuals to receive the nation’s highest civilian honor in 2018. This has been a big year for Staubach, who also received the Vision Award from the Urban Land Institute for his many achievements and contributions to the real estate industry.

Over his storied career, Craig Hall has weathered booms and busts to ultimately emerge victorious. Along with his pioneering HALL Park in Frisco, his projects have helped shape the Dallas Arts District. Hall got his start at age 18, when he bought a small rooming house in Ann Arbor, Michigan. At a recent party celebrating his five decades in the business, he told guests that moving his company to Dallas in the 1980s was “one of the better decisions I’ve ever made.”

Donna and Herb Weitzman

Dallas Mayor Mike Rawlings, Kathryn Hall, and Craig Hall

Caroline Rose Hunt

UTD Establishes the Herbert D. Weitzman Institute

Caroline Rose Hunt Passes Away at 95

Herb Weitzman, aka Mr. Retail, has been making his mark on commercial real estate for nearly six decades. His legacy will continue with the establishment of a new real estate school at the University of Texas at Dallas, launched with a $3 million donation from Weitzman and his wife Donna. “A program that trains our future leaders offers the potential of reshaping the North Texas community in a positive way for decades to come,” he says.

Dallas lost an icon in 2018, when Caroline Rose Hunt passed away following a stroke. A renowned hotelier and philanthropist and the daughter of famed wildcatter H. L. Hunt, she was once known as America’s wealthiest woman. Hunt founded Rosewood Hotels & Resorts and was the original owner of The Mansion on Turtle Creek. She also funded development of The Crescent, which ushered in the now-bustling Uptown office market.

S t a u b a c h p h o to by T R E VO R PAU L H U S ; H a l l c o u r te s y o f H A L L G R O U P ; We i t z m a n ’s p h o to by R A N DY A N D E R S O N ; H u n t p h o to by DAV I D WO O

Roger Staubach

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DOWNTOWN DALLAS

EXPECTATIONS SHATTERED

FIND OUT MORE AT DOWNTOWNDALLAS.COM STATISTICS ARE FOR DOWNTOWN DALLAS AND ADJACENT NEIGHBORHOODS.

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Downtown Dallas is the engine of an economic juggernaut, in the #1 metro area for attracting skilled talent in the country. And with over $5 billion invested in the city center since the year 2000 and over 100 projects underway right now, it’s undeniable—Downtown has arrived.

THE DIFFERENCE IS NIGHT & DAY. OFFICE SPACE AVAILABLE RANGING FROM 1,800 RSF TO 185,000 RSF. #DestinationTCC

FOR MORE INFORMATION, CONTACT: Ramsey March, Sara Terry, or Scott Sowanick at 214.267.0400

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TRAMMELLCROWCENTER.COM

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D CEO Real Estate Annual 2019

Articles inside

Deal Ticker

Milestones

Turning Dirt

A Glimpse Into the Future