State of Downtown 2014

STATE o f DOWNTOWN

2014

Foreword Welcome to our tenth edition of the State of Downtown report. This publication is produced by Downtown Fort Worth, Inc. (DFWI) and Fort Worth Improvement District #1 (PID) to communicate the underlying economic trends shaping our center city.

Downtown Fort Worth continued its outstanding momentum in 2014. Office rental and occupancy rates compare favorably with other North Texas submarkets, while hospitality measures were among the strongest in the country.

Retail remained strong, and residential sales and leasing activity saw dramatic acceleration.

The State of Downtown is your window into the economic forces shaping our center city.

The data presented in the State of Downtown is compiled throughout the year by DFWI’s Director of Research. In addition, quarterly and monthly updates for certain market segments are available upon request and at www.dfwi.org.

Your thoughts on how to improve this publication are welcome, and we encourage you to share your insights with us.

Arrie Mitchell Director of Research

On behalf of Downtown Fort Worth, Inc. and Fort Worth Improvement District #1, thank you for your interest in Downtown.

Johnny Campbell Chairman of the Board Downtown Fort Worth, Inc.

Jack Clark Chairman Fort Worth Improvement District #1 (PID)

Table of Contents Year in Review................................................... 2

Quality of Life...................................................48

Office and Employment....................................10

Education..........................................................52

Population and Housing....................................18

Transportation..................................................54

Hospitality.........................................................34

PID Advisory Board...........................................60

Retail.................................................................40

Cover Photo: Pinnacle Bank Place, Opening 2016

ABOUT US DFWI’s Mission The mission of Downtown Fort Worth, Inc. is to be the catalyst for transforming Downtown into a vibrant place to live, visit, enjoy and conduct business through aggressive leadership of programs, projects and partnerships.

Who We Are Formed in 1981, DFWI is Downtown Fort Worth’s planning, public space management and advocacy organization. This membership-based organization has contributed to Downtown Fort Worth’s vitality by serving as a liaison, ombudsman, and information source for property owners, residents, business owners, lenders, developers, community organizations, and policy-makers.

What We Do DFWI is a 501(c)(6) non-profit membership organization. In addition to coordinating the Downtown planning process, advocacy, member services, communications and Downtown leadership, DFWI members founded the first Public Improvement District in the state of Texas in 1986. DFWI continues to manage PID #1 and also manages PID #14. These PIDs provide enhanced services to property owners, including maintenance and landscaping, public space management, promotions and marketing, research, transportation, planning, and security enhancements to 564 acres of Downtown, including streets and sidewalks.

DFWI also administers the Tax Increment Finance District (TIF) by contract with the City of Fort Worth. Eligible TIF projects include parking, infrastructure assistance to new developments, historic preservation, affordable housing, transportation and education.

DFWII, Downtown Fort Worth Initiatives, Inc. is a 501(c)(3) non-profit corporation that provides a pathway for foundation grants, philanthropic donations and other contributions to help fund charitable, educational, and public-purpose Downtown projects. Each year DFWII helps to bring more than 500,000 people to Downtown by producing the MAIN ST. Fort Worth Arts Festival and the XTO Energy Parade of Lights. DFWII also developed the JFK Tribute in Fort Worth, redeveloped Burnett Park, and is currently administering the Heritage Park restoration design.

STATE OF DOWNTOWN FORT WORTH 2014

1

Year in Review

DOWNTOWN BY THE NUMBERS 1,206 acres 1.8 square miles 1,523 Downtown businesses 38,044 private employees 10 MILLION square feet of office space 2,642 hotel rooms 6,228 Downtown residents 3,452 residential units 46,892 Downtown employees (all jobs) $74,906 average private payroll per employee $2.9 BILLION private payroll in 2012 At $2,993,415,000, Downtown generates a larger payroll (9.3%) than any other employment center in the county, contributing 18.7 times its geographic weight in private payroll.

$3.2 BILLION in gross sales from all Downtown industries in 2013 $63.3 Billion appraised value of property in the City of Fort Worth in 2014 $166.6 Billion appraised value of property in Tarrant County in 2014 $15,864,783 hotel taxes paid in Downtown 2014 $114,929,846 sales taxes paid in 2013 – 14.2% of the city’s taxable sales are transacted in Downtown Downtown contributes 11.2 times its geographic weight in sales tax. $206,302,880 Downtown property, hotel and sales taxes paid in 2013 $1,717,357,279 total taxes paid Downtown 1992-2013 Sources: City of Fort Worth, Tarrant County, U.S. Census Bureau, State of Texas

Downtown Fort Worth is a 1.875-square-mile, high performing North Texas submarket. With over 46,000 employees, Downtown Fort Worth is the largest employment center in Tarrant County.

Private payroll generated in Downtown exceeds $2.9 billion per year, the highest among employment centers in the county.

The labor force in Fort Worth grew by 25.3% from December 2007 (pre-recession) to December 2014.

This is 17.6 times faster than the national labor force, which grew at 1.4%. Fort Worth grew 1.7 times faster than Texas at 14.6%. Over this same period Fort Worth added 61,314 jobs, increasing its employment force by 19.4%. During the same period Texas increased its employment force by 14.3%, while the national employment force has increased by 0.8%.

2

STATE OF DOWNTOWN FORT WORTH 2014

Change in Unemployment U.S. Unemployment

December rate Dec. 2012 – Dec. 2013 change

5.6% -1.1

Texas Unemployment

December rate

4.6%

Dec. 2012 – Dec. 2013 change

-1.4

Fort Worth Unemployment

December rate Dec. 2012 – Dec. 2013 change

3.9% -1.5

Employment: Employment in Fort Worth grew by 19.4% from pre-recession December 2007 to December 2014. In Dallas it grew by 4.7%.

Source: Texas Workforce Commission

ive yR Tr init

In addition to a healthy labor market, Downtown Fort Worth’s economy performed exceptionally well in 2014, outperforming the local and national economy in many segments of the office, residential, hospitality and retail markets. The Dallas-Fort Worth-Arlington metropolitan area’s population grew from 5,161,544 in 2000 to 6,812,373 in 2013. 15.7% of this regional growth is attributed to Fort Worth.

r

The Fort Worth-Arlington metro area’s annual employment growth rate from December 2013 to December 2014 was 3.7%, compared to 1.9% for the nation. The unemployment rate for the City of Fort Worth was 3.9% in December 2014, significantly lower than the national rate of 5.6%.

Job Growth from December 2007 to December 2014 80,000 61,314

60,000 40,000

27,776

20,000 0

Dallas

Fort Worth

Population: From 2000 to 2013, 31.4% of regional population

growth (for cities with more than 100,000) occurred in Fort Worth.

Dallas contributed 8.4%.

Source: U.S. Census Bureau

Contribution of Fort Worth to Regional Growth Richardson 1.5%

Arlington 5.6% Carrollton 2.1% Dallas 8.4% Denton 5.1%

Plano 6.2% Mesquite 2.3%

4%

McKinney 11.4%

3 1.

Irving 4.5%

h

Grand Prairie 6.8%

Frisco 12.5%

rt

Garland 2.3%

For t

o W

STATE OF DOWNTOWN FORT WORTH 2014

3

Year in Review

Office: The office market in Downtown Fort Worth

Leasing Activities, Share of Market

absorbed over 267,000 square feet of office space in 2014, while occupancy remained on par with the national average. Occupancy for class A office space in Downtown Fort Worth in 4Q 2014 was 82%, slightly less than the national average occupancy of 87.7%.

Currently, 86.5% of all Downtown Fort Worth office space is occupied. A large percentage of the space in the multi-tenant office market is occupied by tenants of less than 4,000 square feet. This has a stabilizing influence on the market. In 2014, more than 59% of the leasing activity occurred with firms of that size.

All Office Space Occupancy 4Q 2014 100%

SPACE (SF)

2013

2014

<4,000

74%

59%

4,001 – 10,000

17%

24%

>10,001

9%

17%

Source: CoStar

Class A Office Space Occupancy 4Q 2014

Retail Space Occupancy 4Q 2014

93.9% 89.1%

90%

92.7%

87.7%

86.4%

82.0% 80%

70%

Source: CoStar

60%

50%

USA

USA

Fort Worth

USA

Fort Worth

Fort Worth

Unemployment Rate in 2014 6.6%

6.7%

6.0%

5.8%

5.8%

Fort Worth

6.6%

6.5%

6.3%

6.2%

5.5% 5.4%

6.1%

6.2%

6.1%

5.5%

5.6%

5.5%

5.9% 5.5%

5.0%

USA

Dallas

5.3%

5.0% 5.4% 5.2%

4.5%

4.9%

5.7%

5.8% 5.6%

5.0% 5.3%

5.4%

4.7%

5.2%

4.6%

4.7%

4.6%

4.2% 4.4%

4.0%

4.3% 3.9%

3.5%

4

STATE OF DOWNTOWN FORT WORTH 2014

4 De

c1

4 No

v1

4 Oc t-1

14 Se p-

14 gAu

14 Ju l-

4 -1 Ju n

4 ay -1 M

r-1 4 Ap

4 ar -1 M

-1 4 Fe b

Ja n

-1

4

3.0%

Source: Texas Workforce Commission

7.0%

Employment Growth December 2014 Over December 2013

Source: Texas Workforce Commission

4.0% 3.6%

3.5% 3.0%

2.7%

2.5% 1.9%

2.0% 1.5% 1.0% Dallas

USA

Fort Worth

Unemployment Rate Among 20 Largest U.S. Cities November 2014 20.0% 18.0% 16.0%

11.9%

12.0% 10.0%

8.3%

8.0%

6.6%

6.4%

6.0%

4.6% 4.3%

4.0%

3.1%

5.7% 3.8%

4.2%

3.9% 4.1%

8.6% 6.5% 6.2%

5.6%

5.1%

5.2% 4.0%

3.9%

2.0% 0.0%

Au

sti n Bo sto Ch n ar lot t Ch e ica Co go lum bu s Da lla s D Fo et r r t oit W or t Ho h us Ind to ian n a Ja pol ck is so Lo nvi s A lle ng el M es e Ne mp w h Yo is rk Ph Ci ila ty de lph Ph ia Sa oen n A ix nt o Sa nio n Sa Di n eg Fr o an cis Sa co n Jo se

Source: U.S. Bureau of Labor Statistics

14.0%

Burnett Plaza

STATE OF DOWNTOWN FORT WORTH 2014

5

Year in Review

Residential: Development remained strong in Downtown, with an additional 384 units set to begin

construction or under construction by December of 2014. The first owner-occupied new product in four years broke ground on Henderson Street. Hunter Plaza will bring a total of 164 rental units to Downtown, including 115 affordable units and 49 market rate units. Trinity Terrace has broken ground on a 79-unit, 21-story senior housing tower. Pinnacle Bank Place, in the Lancaster corridor, broke ground in early 2015, adding a 130-unit mixed-use community to Downtown. The addition of those 373 apartments will bring the total rental inventory to 2,899 units.

The multifamily average rent in Downtown increased 2.7% in 2014 to $1,688, and apartment

occupancy averaged 95.6% in 2014.

Demand for condominiums and townhomes saw a marked increase in 2014. 100 owner-occupied units sold in 2014, three shy of the 2006 record of 103. Through the fourth quarter of 2014, the median price for a Downtown residential unit sold through the MLS system was $220,000, an increase of 15.8%

over the 2013 median price of $190,000.

Price of Condos and Townhomes Sold by Year Median

$350,000

$308,330

$327,873

$252,789 $234,226

$277,626

$250,000

$219,900

$200,000

$212,450

$196,000

$220,000 $190,000

$150,000 $100,000 $50,000 $0 2010

2011

2012

2013

Sources: National Association of Realtors and North Texas Real Estate Information System

$300,000

Average

2014

Average Apartment Rental Rates and Average Occupancy Rates Average Occupancy

98.0%

Average Rental Rates

$1,662 $1,650

$1,637

95.4%

93.6% $1,550

95.6%

95.0% 94.0%

94.5% $1,573

$1,561

97.0% 96.0%

95.3%

94.8%

$1,600

$1,688

93.0%

$1,531

92.0%

$1,500

91.0% 90.0%

$1,450 2009

6

2010

STATE OF DOWNTOWN FORT WORTH 2014

2011

2012

2013

2014

Source: Downtown Fort Worth

$1,700

Hotels in Downtown Fort Worth generate 39% of all annual hotel occupancy taxes in the city.

Hospitality: The Downtown hotel market continued

to perform well above national averages and other large markets in the Dallas-Fort Worth metropolitan area. The occupancy rate in 2014 was 69.0%, higher than the national average of 64.4%. Revenue per available room (RevPAR) was $114.54, significantly above the national average of $74.28.

Hotel occupancy taxes paid in Downtown set an all-time record of $4,241,858 in 1Q 2014.

Downtown’s share as percentage of the city’s hotel occupancy taxes grew from 25.7% at the beginning of the recession to 37% at the end, a 44% increase in 6 quarters. While 20% of all hotel rooms are

located Downtown, more than 39% of all hotel occupancy taxes were paid in Downtown.

Hilton Fort Worth Hotel

Hotel Occupancy Taxes Paid Downtown Fort Worth

Source: Texas Comptroller of Public Accounts

Thousands $4,500

$4,242

$4,000

$3,674

$3,500

$3,581 $3,259 $3,272

$3,000 $2,809 $2,832 $2,841 $2,801

$3,391

$3,757

$3,574

$3,659

$3,540

$4,049

$3,606

$3,817 $3,758

$3,330

$2,803

$2,500 $2,000 $1,500 $1,000 $500 $0 1Q 10

2Q 10

3Q 10

4Q 10

1Q 11

2Q 11

3Q 11

4Q 11

1Q 12

2Q 12

3Q 12

4Q 12

1Q 13

2Q 13

3Q 13

4Q 13

1Q 14

2Q 14

3Q 14

4Q 14

Hotel Occupancy Taxes Paid and Inventory Downtown’s Share as Percentage of City Hotel Occupancy Taxes Paid

Source: Texas Comptroller of Public Accounts

50.0% 44.8%

45.0% 40.9%

41.1%

38.8%

40.8%

40.8%

39.8%

37.6%

42.3%

41.3%

39.0%

38.4%

40.0% 35.0%

43.7%

Hotel Inventory

42.2% 39.2% 39.2% 40.4%

38.7%

39.6% 40.3%

30.0% 24.4%

25.0% 22.3% 20.0%

21.0% 21.4%

22.3% 22.3%

21.8%

20.9% 22.0%

20.6%

20.4% 20.9% 19.9%

22.8%

19.5% 20.2% 19.7%

21.9% 19.0%

21.0%

15.0% 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14

STATE OF DOWNTOWN FORT WORTH 2014

7

Year in Review

Retail: The Downtown retail market continues to perform well. The first two quarters of 2014 have maintained the peak sales levels reached in 2013.

The strongest sectors were Accommodation and Food Services, Clothing Stores, Limited Service Eating Places, and Food and Beverage Stores.

Retail occupancy maintained a robust rate of 93%. The average rent per square foot for

retail space in Downtown was $18.90. In addition,

100%

Downtown added 17,000 square feet of retail space in the new Cassidy Building in

80%

Sundance Square.

20.0% 78.4%

15.0%

60%

10.0%

40%

5.0%

20% 0%

13.7%

3.2%

0.0%

USA

Downtown Fort Worth

1.9 LOFT in Sundance Square

Downtown Fort Worth

US

Change in Gross Sales 2Q 2014 over 2013 Accommodation and Food Service

100% 78.4%

80%

100% 78.4%

78.4%

80%

40%

40%

20%

20% 3.2% 0% USA Downtown Fort Worth

Downtown Fort Worth

Downtown Fort Worth

15.0% 20.0% 15.0% 10.0%

40%

10.0% 5.0% 5.0%3.2%

0% 3.2% Downtown USA Fort Worth

80% 60%

60% 20%

78.4%

60%

0%

13.7%

20.0% 15.0% 15.0% 10.0% 10.0% 5.0% 5.0%

15.0%

13.7%

11.8% 13.7%

11.8%

11.8% 13.7% 5.4%

0.0% 1.9% 0.0% USA 0.0% Downtown 0.0% Downtown USA Downtown Downtown USA Fort Worth Fort Worth Fort Worth Fort Worth

10.0% 5.0% 5.4% 1.9%

Downtown Downtown Fort Worth Fort Worth

8

0.0%

Downtown USA USA Fort Worth

8.0% 7.3% 20.0% 15.2% 6.0% 15.0% 4.0% 10.0%5.4% 2.0% 5.0% 0.0% Downtown 0.0% USA Downtown Fort Worth Fort Worth

30.0%

20.0% 15.0%

20.0%

20.9%

15.2%

10.0% 5.0% 5.5% 1.0% 0.0% Downtown USA USA Fort Worth

STATE OF DOWNTOWN FORT WORTH 2014

15.2%

13.7%

10.0% 5.0% 5.0% 5.0% 1.9% 0.0%3.2% 0.0% Downtown 0.0% USA Downtown USA Downtown Fort Worth Fort Fort Worth Worth

8.0% 20.0% 7.3% 15.2% 6.0% 15.0% 15.0% 6.0% 4.0% 10.0% 10.0% 4.0% 5.4% 2.0% 5.0% 5.0% 2.0%1.9% 0.0% 0.0% 0.0% USA Downtown 0.0% USA Downtown Fort Worth Worth Fort 20.0% 8.0%

Limited-Service Eating Places 15.0%

15.0% 10.0%

11.8%

10.0%

Clothing Stores 11.8%

15.0% 20.0%

20.0%

100%

8.0%

7.3%

6.0%

15.0% 6.0%

4.0% 5.4% 2.0% 1.9% 0.0% Downtown USA USA Fort Worth

10.0% 4.0%

7.3% 15.2%

5.5% 1.0% Downtown USA Downtown USA Fort Worth Fort Worth

30.0%

20.9%

5.5% 10.0% 0.0% USA Downtown Fort Worth

20.0%

0.0% 0.0% USA Downtown Downtown Fort Fort Worth Worth

20.9%

20.0%

20.0%

10.0% 5.5% 1.0%

1.0

US U

5.2% Downtown USA Fort Worth

20.9%

10.0% 5.2%

0.0% USA Downtown 0.0% USA USA Downtown Fort Worth Fort Worth

20.9%

10.0% 0.0%

5.5

5.0% 2.0% 1.0%

30.0%

Arts, Entertainment and Recreation

20.0%

7.3% 15.2%

Full-Service Restaurants

30.0%

30.0%

20.0% 8.0%

Sources: U.S. Census Bureau and Texas Comptroller of Public Accounts

Retail Trade

5.2% USA

5.2

US

Taco Diner in Sundance Square

Tabachin Ribbon Dedication Ceremony

Cumulative Value of Building Permits Downtown Fort Worth, 2002 – 2014 Millions

$1,560

$1,600 $1,374

$1,400

$1,064 $956

$1,000

Millions $200

$752

$800 $613 $600

Source: City of Fort Worth

$400

$1,223

$1,171

$1,200

$1,446

$150

$482

$151 $114

$100

$394

$73

$50

$200

$0

2012

2013

2014

$0 2002-04

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

STATE OF DOWNTOWN FORT WORTH 2014

9

Office and Employment

We’ve got what you’re looking for.

Downtown Fort Worth has nearly 10 MILLION square feet of multitenant office space and 50 square feet of retail space for every 1,000 square feet of office space.

New office space

added since November 2013

Class A: 542,612 SF / 10.8% of inventory

46,892 jobs in Downtown

1,523 private businesses $3 BILLION in private payroll

10

STATE OF DOWNTOWN FORT WORTH 2014

New Class A Office Buildings Downtown Fort Worth PROJECT

SQUARE FEET

One City Place / 300 Throckmorton

328,125

The Westbrook / 425 Houston

80,607

The Cassidy / 420 Commerce

66,940

The Cassidy / 407 Throckmorton

66,940

Office Inventory and Occupancy Rate Downtown Fort Worth Million square feet

Inventory

Occupancy 100%

10.0 96.2%

9.5 93.2%

95%

94.9%

92.9%

92.5%

90.9%

9.0

92.0%

90.9%

90%

89.5%

89.0%

86.4%

8.5 Source: CoStar

84.6% 8.0

7.5

85%

80%

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

75%

Class A Office Buildings Burnett Plaza

1,024,627

777 Main

954,895

D.R. Horton Tower

820,509

Wells Fargo

716,533

Pier One Plaza

460,000

Two City Place

312,525

One City Place

306,470

Carnegie

280,000

Chase Bank

201,901

Cash America

135,293

Cantey Hanger

84,113

The Westbrook

70,478

The Cassidy

66,940

Commerce Building

61,770

The Tower

30,000

Source: CoStar

The newly renovated MorningStar Oil & Gas Building redevelopment adds 187,000 sq ft of owner-occupied space to Downtown.

The Cassidy Building in Sundance Square

STATE OF DOWNTOWN FORT WORTH 2014

11

The Commerce Building in Sundance Square

Class A Office Occupancy Rates

Fourth Quarter 2014

Downtown Fort Worth 100%

80% Source: CoStar

40%

20%

2010

2011

2012

92.3%

2013

492,848 sq ft of Class A multi-tenant office space added since 2013.

75%

70%

2014

93.2% 93.7%

93.0%

94.8%

92.7%

90%

85%

2009

94.2%

87.3% 82.9%

82.0% Source: CoStar

88.8% 86.4% 88.5%

74.5%

84.7% 87.8%

92.0% 88.1%

95%

60%

0%

97.4%

USA

73.3%

73.7%

73.7%

80%

89.5% 87.7%

90.9% 86.9%

100%

Fort Worth CBD

92.5% 88.6%

Dallas CBD

73.6%

Office and Employment

Office Occupancy Rate

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Net Absorption of Office Space 267.5

2014

132.2 170.7

2013 2012

168.4

-887.6 -223.5

301.5

-90.2

Source: CoStar

-614.7

2008

165.1 114.7

2007 -1,000

Downtown Fort Worth Downtown Dallas

-7.4

-291.0

2009

12

2.6

-139.6

2011 2010

891.7

-800

-600

STATE OF DOWNTOWN FORT WORTH 2014

-400

-200

0 200 Thousand Square Feet

400

600

800

1,000

Metro Area Office Vacancy Rates Downtown Dallas

Downtown Fort Worth

Dallas Central Expressway

Dallas Stemmons Freeway

50% 40%

26.2% 26.1% 26.7%

30% 20% 10%

15.3% 13.6%

2010

2011

15.2%

2013

2014

2010

Dallas LBJ Expressway

2011

2012

2013

19.4%

19.6% 13.5%

2012

18.5%

16.8%

25.5%

10.5%

0% Source: CoStar – Fourth quarter 2014

8.0%

7.5%

23.0%

22.9% 21.2%

2014

2010

Irving/Las Colinas

14.4%

14.1% 2011

2012

2013

2014

2010

Richardson/Plano

2011

2012

2013

2014

Dallas Uptown

50% 40% 30%

22.6%

24.9%

25.7%

24.2% 18.8% 17.8% 17.7%

18.8% 17.8% 17.7%

20%

19.3% 15.1%

23.2%

10%

14.9% 15.2%

0% 2010

2011

10.9% 9.9% 10.1%

11.2%

2012

2013

2014

2010

2011

2012

2013

2014

12.0% 2010

2011

2012

2013

2014

2010

2011

2012

2013

2014

Metro Area Class A Office Vacancy Rates Downtown Dallas

Downtown Fort Worth

Dallas Central Expressway

Dallas Stemmons Freeway

50% 40% 30% 20% 10%

24.7%

23.1% 17.1% 18.0%

19.5%

25.3%

23.9%

6.8% 6.3% 5.2%

23.2%

18.7%

24.7%

23.3%

24.0% 25.1%

20.3%

23.3% 23.2%

19.2%

0% Source: CoStar – Fourth quarter 2014

2010

2011

2012

2013

2014

2010

Dallas LBJ Expressway

2011

2012 2013

2014

2010

Irving/Las Colinas

2011

2012 2013

2014

2010

Richardson/Plano

2011

2012 2013

2014

Dallas Uptown

50% 40% 24.0%

30% 23.3% 20%

24.4%

24.0%

19.2%

23.9%

14.8%

22.6%

20.1% 22.3%

17.9%

10% 0%

20.7%

15.8%

11.4%

10.1% 9.3%

13.3% 2010

2011

2012

2013

2014

2010

2011

2012 2013

2014

2010

2011

2012 2013

2014

2010

16.8%

8.6%

2011

2012 2013

9.8%

2014

STATE OF DOWNTOWN FORT WORTH 2014

13

Downtown Dallas

Downtown Fort Worth

Dallas Central Expressway

Dallas Stemmons Freeway

$35

$25

$28.74

$28.44

$30 $27.42

$29.23

$26.90

$20

$22.19

$24.86

$21.91

$19.73

$18.50

$23.14

$22.01

$22.81

$20.45

$15

$23.36

$20.94

$20.41

$18.61

$18.31

$17.51

$10 2010

2011

2012

2013

2010

2014

Dallas LBJ Expressway

2011

2012 2013

2014

2010

2011

Irving/Las Colinas

2014

2012 2013

2010

2011

Richardson/Plano

2012 2013

Dallas Uptown

$35 $24.93

$25

$19.20

$15 2010

$21.12

$20.04

$20 $19.09

$10

$30.55

$29.53

$30

2011

2013

2014

2010

2011

$21.60 $22.78

$21.32

$18.90 2012

$21.83

$21.20

2012 2013

2010

$23.20

$21.49

2011

$33.26

$31.39

$29.80

$22.29

$20.79

2014

2014

2014

2012 2013

2010

2011

2012 2013

Source: CoStar – Fourth quarter 2014

Office and Employment

Metro Area Class A Office Rental Rates ($/SF)

2014

Metro Area Class B Office Rental Rates ($/SF) Downtown Dallas

Downtown Fort Worth

Dallas Central Expressway

Dallas Stemmons Freeway

$30 $25 $19.30

$17.02

$20.58

$19.18

$15

$20.76

$19.38

$20 $19.04

$14.41

$17.97

$16.17

$19.28

$18.12

$17.94

$13.63

$18.37

$18.15

$16.22

$14.21 $13.77 $13.87

$10 2011

2012

2014

2013

2010

Dallas LBJ Expressway

2011

2012

2013

2014

2010

Irving/Las Colinas

2011

2012

2013

2014

2010

Richardson/Plano

2011

2012

2013

Dallas Uptown

$30

$30.08

$24.09

$25 $17.19

$20 $15.65 $15

$18.59

$15.34 $15.72

$19.11

$17.77

$17.45

$19.17

$18.31

$15.98

$19.21

$18.31

2014

$25.45

$21.34 $22.96

$18.28

$16.97

$10 2010

14

2011

2012

2013

2014

2010

STATE OF DOWNTOWN FORT WORTH 2014

2011

2012

2013

2014

2010

2011

2012

2013

2014

2010

2011

2012

2013

2014

Source: CoStar – Fourth quarter 2014

2010

Average Office Rental Rates Downtown Fort Worth $35

Class A

$29.20

$30

Class B

$30.20

$29.03

$27.98

$28.44

$27.42

$26.90

$19.04

$19.15

$26.08

$29.23

$28.74

$25 $21.12

Source: CoStar

$21.12 $20 $17.02

$16.08 $15

2004

2005

$18.13

$18.37

2006

2007

$18.79

$19.38 $20.58

2008

2009

2010

2011

2012

2013

$20.76

2014

Energy Efficient Office Space Downtown Fort Worth Million square feet 6 5,319,302 5 4 3

2,796,495

2,499,927

Source: CoStar

2 1 0

22,880 Total Energy Efficient Space

Energy Star Certified

LEED Certified (Gold)

LEED Certified (Silver)

Downtown, the Southside and the Westside combined generate $5,559,490,000 in annual payroll.

Downtown Fort Worth has the highest number of employees and generates the largest payroll among all of the employment centers in the county.

Average Payroll Per Employee in Private Sector PRIVATE SECTOR EMPLOYEES

PAYROLL

PAYROLL PER EMPLOYEE

76102 (Downtown)

38,044

$2,993,415,000

$78,683

76104 (Near Southside)

27,983

$1,625,720,000

$58,097

76107 (Cultural District)

22,360

$940,355,000

$42,055

Source: U.S. Census Bureau 2012

ZIP CODE (SUBMARKET)

$80,000

$78,683

$58,097

$60,000

$42,055 $40,000

$20,000

$0

Downtown

Medical District

Cultural District STATE OF DOWNTOWN FORT WORTH 2014

15

Class A

Class B

Downtown Dallas

$19.30

Dallas Central Expressway

$19.28 $17.19

Dallas LBJ

$23.36 $24.86

$21.12

Dallas Preston Center

$27.36

$23.20 $13.87

Dallas Stemmons Freeway

$18.61 $30.08

Dallas Uptown $20.65

Dallas Far North

$28.19

$20.76

Downtown Fort Worth $17.18

Fort Worth Northeast

$28.74

$22.91 $19.21

Irving/Las Colinas

$18.78

Mid-Cities

$19.11

Richardson/Plano $0

$5

$10

$15

$33.26

Source: CoStar

Office and Employment

Average Class A and B Office Rent, 4Q 2014 Dallas – Fort Worth MSA ($/SF)

$24.93 $23.36 $23.20

$20

$25

$30

$35

Unemployment Rates in 2014 8%

USA 7.0%

6.2%

6.8%

6.3%

6.3%

6.5%

6.3%

6.1%

6%

5.7% 5.7%

Fort Worth

5.9%

5.8%

5.9%

5.7%

5.5%

5.8% 5.4%

5%

5.7%

5.1%

5.5% 5.5%

5.6%

5.5%

5.7% 5.4% 5.1%

5.1%

4.9%

5.0%

4.4%

4.8%

4.7%

4.6%

4%

3%

16

5.4%

4.1%

Jan-14

Feb-14

Mar-14

STATE OF DOWNTOWN FORT WORTH 2014

Apr-14

May-14

Jun-14

Jul-14

Aug-14

Sep-14

Oct-14

Nov-14

Dec-14

Source: Texas Workforce Commission

7.0% 7%

Dallas

National Office Statistics 4Q 2014 AVERAGE ASKING RENT

OVERALL VACANCY RATE

Atlanta

$19.47

14.2%

Austin

$28.44

8.6%

Boston

$20.77

9.2%

Chicago

$23.18

13.7%

Dallas/Fort Worth

$21.62

14.3%

Denver

$23.26

10.3%

Houston

$27.24

10.8%

Los Angeles

$30.30

11.5%

New York

$55.91

7.8%

Philadelphia

$21.80

10.8%

Phoenix

$21.19

16.9%

Seattle

$29.13

9.0%

Washington, DC

$34.46

14.5%

Source: CoStar Bob R. Simpson Building

Business Profile Number of Businesses per Category Downtown Fort Worth 91

Accommodation and Food Services

Total private employees: 38,044

85

Administrative and Support 19

Arts, Entertainment, and Recreation

Total number of businesses: 1,523

39

Construction 9

Education Services

1

Forestry, Fishing

82

Health Care 57

Information

123

Management of Companies 29

Manufacturing Source: U.S. Census Bureau 2012

Annual payroll: $2,993,415,000

250

Finance and Insurance

Mining

80

Other Services

80 373

Professional, Scientific, and Technical Services 80

Real Estate 50

Retail Trade 27

Transportation 4

Utilities

43

Wholesale Trade 0

50

100

150

200

250

300

350

400

STATE OF DOWNTOWN FORT WORTH 2014

17

Population and Housing

Living the Downtown lifestyle.

Downtown Fort Worth is currently experiencing a residential renaissance, as individuals and families embrace an urban lifestyle. Ranked by the U.S. Census Bureau as America’s 17th-largest city, Fort Worth’s population has grown 48.5% since 2000 to the current population of 794,189 (U.S. Census Bureau). The city added 34,451 residents from 2012 to 2013, a 4.5% growth in one year.

Much of Fort Worth’s population increase is attributed to the region’s diversified economy, strong regional business clusters, relatively low land cost, land availability, a revitalized and growing Downtown, and rejuvenated central-city neighborhoods.

River Terrace, Opening 2017

Work 18.7%

Other 3.7%

DDRB

ace - river Tower

Location 8.0% reTiremenT communiTy

56

Community 1.7%

.1 %

Convenience 11.7%

l L if e s t y

18

STATE OF DOWNTOWN FORT WORTH 2014

e

Lifestyle was selected as the primary reason Design Review HeaRing for living Downtown 14 February 2014 by 57.2% of condo/ townhome owners and 55.3% of apartment renters.

Source: Downtown Fort Worth, Inc. survey December 2014

Reason for Living Downtown

rend

a

Maintained 94.9 average apartment occupancy since 2006, while increasing inventory by 59%

Density of 3,943 residents per square mile in Downtown (1,500 housing units/sq mile)

City of Fort Worth density of 2,274 residents per square

49% of Downtown residents’ income is double

mile (846 housing units/sq mile)

$220,000 Median sale price of Downtown condos/townhomes purchased in 2014

14.6% increase in

average apartment rent since 2006 – $1,467/2006 to $1,688/today

the national median household income or greater

$4 MILLION:

85% of Downtown residents have a bachelor's degree or higher

20.2% of the condo sales market in Fort Worth is located in Downtown

1,245 Residential rental units planned or under construction

74% of Downtown condo owners have income greater than $100,000

while maintaining an

top Downtown condo sale Downtown absorbed 280 apartment units in 2014

occupancy rate

above 95%

Neighborhood Safety Downtown Fort Worth

Source: Downtown Fort Worth, Inc. survey December 2014

Unsafe 2.5%

Very unsafe 0.3%

Very Safe

Safe

57.3%

40.0%

Residents perceive Downtown as safe.

• 97.3% of residents rated their neighborhood as safe or very safe.

• 99.5% of residents feel safe or very safe walking in Downtown during the day.

• 90.4% of residents feel safe or very safe walking in Downtown after dark.

STATE OF DOWNTOWN FORT WORTH 2014

19

Population and Housing

Residential – For Sale Housing affordability has been one of Fort Worth’s competitive advantages. In December 2014, the median price of a home in Fort Worth was $151,400, compared to $245,400 in Austin and $217,500 in Dallas.

The median home price in the U.S. was $295,100.

Currently, there are 926 owner-occupied residential units in Downtown, up 887 units, a 2,274% growth since 2003. The median sale price of a home in Downtown Fort Worth is $212,450 (4Q 2014).

Residential – For Rent The rental market remained at historically high occupancy. Currently, there are 2,526 units in Downtown with monthly rents ranging from $865 to $5,320 (4Q 2014). The occupancy rate of rental units in Downtown has stayed above 90% since 2006. Although 262 units became available in 2Q 2014 (an 11.6% increase), occupancy remained above 94% and finished the year at 96.5%. During the national recession that lasted from December 2007 through June 2009, apartment occupancy in Downtown did not decline below 92% in any quarter.

Top Ten State Population Gain April 1, 2010 through July 1, 2013 Texas

1,810,854

California

1,547,997

Florida

1,088,674

Georgia North Carolina

Source: U.S. Census Bureau

408,662 408,273 368,115

New York Arizona

339,174 336,987

Washington Colorado

326,542 325,266

Virginia 0

200,000

400,000

600,000

800,000

1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000

Fastest-Growing Metropolitan Areas Population Added April 1, 2010 through July 1, 2013 Houston-The Woodlands-Sugar Land, TX

392,702

Dallas-Fort Worth-Arlington, TX

384,703 383,084

New York-Newark-New Jersey, NY-NJ-PA 313,583

Washington-Arlington-Alexandria, DC-VA-MD-WV

302,589

Los Angeles-Long Beach-Anaheim, CA

236,210

Atlanta-Sandy Springs-Roswell, GA

205,874

Phoenix-Mesa-Scottsdale, AZ

180,895

San Francisco-Oakland-Hayward, CA

170,290

Seattle-Tacoma-Bellevue, WA 0

20

STATE OF DOWNTOWN FORT WORTH 2014

50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000

Source: U.S. Census Bureau

263,534

Miami-Fort Lauderdale-Pompano Beach, FL

The DallasFort Worth Metropolitan area population grew by 384,703 from 2010 – 2013.

Pinnacle Bank Place, Opening 2016

Regional City Population Change 2000 – 2013 2000

2013

% CHANGE

Austin, TX

656,562

885,415

34.9%

Baton Rouge, LA

227,818

229,405

0.7%

Dallas, TX

1,188,580

1,257,676

5.8%

El Paso, TX

563,662

674,438

19.7%

Fort Worth, TX

534,694

794,189

48.5%

Houston, TX

1,953,631

2,197,374

12.5%

Little Rock, AR

183,133

197,357

7.8%

Oklahoma City, OK

506,132

610,617

20.6%

San Antonio, TX

1,144,646

1,409,000

23.1%

Shreveport, LA

200,145

200,191

0.0%

Tulsa, OK

393,049

398,724

1.4%

Source: U.S. Census Bureau

Regional City Change in Median Family Income 2000 – 2013 CITY

2000

2013

% CHANGE

Austin, TX

$54,091

$71,511

32.2%

Baton Rouge, LA

$40,266

$46,110

14.5%

Dallas, TX

$40,921

$44,852

9.6%

El Paso, TX

$35,432

$46,420

31.0%

Fort Worth, TX

$42,939

$61,651

43.6%

Houston, TX

$40,443

$49,886

23.3%

Little Rock, AR

$47,446

$64,285

35.5%

Oklahoma City, OK

$42,689

$58,947

38.1%

San Antonio, TX

$41,331

$52,808

27.8%

Shreveport, LA

$37,126

$47,808

28.8%

Tulsa, OK

$44,518

$52,119

17.1%

USA

$50,046

$64,030

27.9%

Source: U.S. Census Bureau

STATE OF DOWNTOWN FORT WORTH 2014

21

Population and Housing

Demographics of Downtown Fort Worth Residential Population: With the addition of more apartments, the Downtown Fort Worth residential population is becoming younger, wealthier and better educated, and has grown at an annual rate of 5.8% since 2007. Currently, 6,228 people live in the Downtown. DFWI has conducted four surveys of residents since 2007 to monitor trends in the changing demographics of the Downtown population. Our latest survey was conducted in December 2014.

A one-sheet survey instrument was delivered to 2,456 households in Downtown using first-class postage.

The response rate was 17.6% providing a margin of error of +4% at a 95% confidence level.

A summary of the survey and trends is presented here. The full report can be downloaded from DFWI’s web site at www.dfwi.org, or contact Arrie Mitchell at arrie@dfwi.org to receive a copy.

57.2% of Downtown residents are under 40 years old 68.4% of apartment renters are under 40 years old 23.6% of condominium and townhome residents are under 40 70% of apartment renters and 37.1% of condominium and townhome owners are unmarried

Downtown residents are highly educated 8.1% of residents have a 4 bachelor’s degree 27.5% a master’s degree .4% a doctoral degree 9 (including JDs)

95.5% of households have no children living in the household

Lifestyle was cited as the primary reason for living Downtown by 57.2% of condominium/townhome owners and 55.3% of apartment renters

Median Annual Household Income

Downtown Residents’ Previous Place of Residence

48.9% of Downtown households have income exceeding $100,000 per year

28.9% cities in the Metroplex other than Fort Worth 32.6% Fort Worth 12.9% Texas outside of the Metroplex 20.3% other states

Employment 23.8% Healthcare 9.7% Education 21.9% Science & Engineering 13.2% Finance 6.8% Retail 6.2% Government 5.5% Law

22

STATE OF DOWNTOWN FORT WORTH 2014

Downtown Population Study Area

Age Distribution Downtown Fort Worth Residents 79.4%

Source: Downtown Fort Worth, Inc. survey December 2014

80%

100%

All Residents Condos/Townhomes Apartments

70%

75%

Apartments

Condos/Townhomes 76.4%

69.1%

60% 50%

50% 43.5%

0.0%

40% 31.3% 30%

23.1%

Residents over 40

26.4% 18.7%

14.3%

0%

Residents 40 and under

23.6%

21.3%

20% 10%

23.6%

18.7%

18.7%

17.6% 10.3%

6.3%

5.5% 0.5% <25

25-40

41-55

56-65

>65

STATE OF DOWNTOWN FORT WORTH 2014

23

Marital Status

Downtown Fort Worth

Downtown Fort Worth

100.0%

2011

2014

95.5%

92.6%

80.0%

2011

2014

80.0%

61.6% 60.0%

55.8% 44.2%

60.0% 40.0% 38.4%

40.0%

20.0%

20.0% 7.4% 0.0%

4.5%

With children

Without children

Highest Degree Completed

0.0%

Married

Not married

Highest Degree Completed Downtown Fort Worth 80.0%

Sources: U.S. Census Bureau 2010 and Downtown Fort Worth, Inc. survey December 2014

60%

24

Downtown

Fort Worth

2011

USA

2014

48.1%

60.0% 40%

48.1% 36.9%

42.6% 40.0%

20%

18.6%

33.5%

36.9%

18.4% 9.6%

0%

Bachelorâ&#x20AC;&#x2122;s

STATE OF DOWNTOWN FORT WORTH 2014

Source: Downtown Fort Worth, Inc. survey December 2014

Children in the Household

11.2%

Graduate/Professional

20.0%

0.0%

Bachelorâ&#x20AC;&#x2122;s

Graduate

Source: Downtown Fort Worth, Inc. survey December 2014

Source: Downtown Fort Worth, Inc. survey December 2014

Population and Housing

ESPN in Sundance Square

Household Income Trends Downtown Fort Worth

Sources: U.S. Census Bureau 2013 and Downtown Fort Worth, Inc. survey December 2014

50%

Downtown Fort Worth USA

45% 40%

2011

60.0%

39.0% 41.7%

40.0% 20.0%

2014

48.9% 51.7% 48.9%

9.3% 9.4%

0.0%

35%

Less than $50,000

28.5% 28.8%

30%

$50,000 $99,999

$100,000 and above

25% 20%

18.8% 18.8%

20.0% 20.1%

12.1% 11.9%

10%

0%

22.6%

17.9%

15%

5%

20.6%

21.7%

7.5% 1.9% Less than $30,000

$30,000$49,999

$50,000$74,999

$75,000$100,000

More than $100,000

Lincoln Park at Trinity Bluff

Median Household Income Source: Downtown Fort Worth, Inc. survey December 2014

Downtown Fort Worth 80%

Apartments

Condos/Townhomes

74.4%

70% 60% 50% 40% 30.9%

29.2%

30%

26.3%

20%

0%

15.1%

10.3%

10% 3.3% 0.0% Less than $30,000

7.0% 3.5%

$30,000$49,999

$50,000$74,999

$75,000$100,000

More than $100,000

STATE OF DOWNTOWN FORT WORTH 2014

25

99.7% go to Downtown restaurants, 92.2% to bars, 75.5% to convenience/drug stores and 73.2% to retail stores. 100% of condominium and townhome owners eat at Downtown restaurants an average of 9.4 times per month and spend $91.05 per visit. 99.5% of apartment renters eat at Downtown restaurants an average of 8.2 times per month and spend $63.81 per visit.

Apartment Residents

8.2

Apartment Residents

$63.81

Apartment Residents

8.2

Apartment Residents

$63.81

Condo/Townhome Residents Condo/Townhome Residents All Residents All Residents

9.4 9.4 8.7 5

6

7

8

8.7 9

10

5

6

7

8

9

10

Condo/Townhome Residents Condo/Townhome Residents All Residents All Residents

$91.05 $91.05 $75.36 $0

$20

$40

$60

$75.36 $80 $100

$0

$20

$40

$60

$80

Source: Downtown Fort Worth, Inc. survey December 2014

Average Monthly Visits to Downtown Restaurants by Downtown Residents and Spending Per Visit

$100

Average Monthly Visits to Downtown Bars by Downtown Residents and Spending Per Visit Apartment Residents

5.1

Apartment Residents

$45.17

Apartment Residents

5.1

Apartment Residents

$45.17

Condo/Townhome Residents Condo/Townhome Residents All Residents All Residents

Condo/Townhome Residents Condo/Townhome Residents All Residents

4.8 4.8 5.0 0

1

2

3

4

5

0

1

2

3

4

5

5.0

All Residents

6

$52.01 $52.01 $47.87 $40

$45

$47.87 $50

$55

$40

$45

$50

$55

6

Source: Downtown Fort Worth, Inc. survey December 2014

Population and Housing

Downtown residents patronize Downtown businesses!

Condo/Townhome Residents

3.4

Condo/Townhome Residents

All Residents

3.4

All Residents

0

1

2

3

4

$35.02

Apartment Residents

3.5

Apartment Residents

5

$36.50

$35.96

$34

6

$35

$36

Source: Downtown Fort Worth, Inc. survey December 2014

Average Monthly Visits to Downtown Convenience/Drug Stores

by Downtown Residents and Spending Per Visit

$37

Condo/Townhome Residents

1

2

$126.88

$99.64

All Residents

2.0 0

26

Condo/Townhome Residents

2.3

All Residents

$78.96

Apartment Residents

1.8

Apartment Residents

3

STATE OF DOWNTOWN FORT WORTH 2014

4

5

6

$0

$50

$100

$150

Source: Downtown Fort Worth, Inc. survey December 2014

Average Monthly Visits to Downtown Clothing Stores

by Downtown Residents and Spending Per Visit

Street and Sidewalk Cleanliness, 2011 vs. 2014

Downtown Fort Worth

Downtown Fort Worth

Very unclean 0.0%

Unclean 1.7%

100%

93.7%

98.3%

80% 2011

Very Clean

Clean

50.6%

2014

60%

40%

47.7% 20% 6.2% 0%

Clean or very clean

1.7%

Source: Downtown Fort Worth, Inc. survey December 2014

Source: Downtown Fort Worth, Inc. survey December 2014

Street and Sidewalk Cleanliness

Unclean or very unclean

Residents perceive Downtown as clean.

98.3% of residents rated the streets and sidewalks in their neighborhood as clean or very clean.

STATE OF DOWNTOWN FORT WORTH 2014

27

YEAR

DALLAS

FORT WORTH

2009

20.8%

3.6%

2010

25.9%

3.3%

2011

21.1%

2.9%

2012

20.6%

3.5%

2013

33.3%

3.9%

2014

26.9%

4.5%

Source: North Texas Real Estate Information Systems, Inc.

Trinity District

Number of Residential Units Sold 16,000

Single-Family Residences

Condos/Townhomes

14,000 3,062

12,000

495 395

2,976

10,000

11,047

8,000 6,000

11,394

10,081 8,851

4,000 2,000 0

Dallas

Fort Worth

Dallas

Fort Worth

2013

2014

Source: North Texas Real Estate Information Systems, Inc.

Population and Housing

Sales Ratio of Condos and Townhomes to Single-Family Residences

Condominiums and Townhomes Built and Sold Downtown Fort Worth 450

Built

Sold

400

298 300 250 200 150 95

100

28

100

80 58

40

50 0

114

103

72 43

64

7

294

41

226

394

112

10

0

0

0

0

0

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

STATE OF DOWNTOWN FORT WORTH 2014

Source: North Texas Real Estate Information Systems, Inc.

350

Median Residential Sales Price Per Square Foot

Condominiums and Townhomes 2014

Condominiums and Townhomes 2014

$300,000

$250 $263,500

$250,000 $220,000

$200

$182

$184

Downtown Dallas

Downtown Fort Worth

$200,000 $150 $150,000

$155,000 $111 $100

$100,000 $50

$50,000

$0

North Texas

Downtown Dallas

Downtown Fort Worth

$0

North Texas

Source: North Texas Real Estate Information Systems, Inc.

Source: North Texas Real Estate Information Systems, Inc. Source: North Texas Real Estate Information Systems, Inc.

Median Sales Price

Median Days on Market Condominiums and Townhomes 2014 70

Median sales price for Downtown condos and townhomes increased 15.8% between 2013 â&#x20AC;&#x201C; 2014.

64

60 50

46

40 30

30

20 10 0

North Texas

Downtown Dallas

Downtown Fort Worth

Downtown Condominium and Townhome Sales As Percentage of City

20.2% of all condominiums and townhomes sold in Fort Worth in 2014 were in Downtown.

YEAR

FORT WORTH

DOWNTOWN

2006

395

96

14.5%

2007

367

103

24.3%

2008

275

56

28.1%

2009

286

36

20.4%

2010

242

47

12.6%

2011

216

39

19.4%

2012

315

62

18.1%

2013

395

63

19.7%

2014

495

100

15.9

Source: North Texas Real Estate Information Systems, Inc.

STATE OF DOWNTOWN FORT WORTH 2014

29

Downtown Fort Worth $300,000

$281,000 $250,000

$250,000

$233,500 $214,900

$225,450

$219,900 $196,000

$200,000

$220,000

$212,000 $190,000

$150,000

$100,000

$50,000

$0

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

$181

$184

2013

2014

Source: North Texas Real Estate Information Systems, Inc.

Population and Housing

Median Residential Sales Price

Median Residential Sales Price Per Square Foot Downtown Fort Worth

$250

$230

$238

$241

$234

$232 $193

$192

$200

$167 $150

$100

$50

$0

30

2005

2006

2007

STATE OF DOWNTOWN FORT WORTH 2014

2008

2009

2010

2011

2012

Source: North Texas Real Estate Information Systems, Inc.

$300

Average Apartment Price Per Square Foot Downtown Fort Worth $1.65

$1.61

$1.55

$1.52 $1.52 $1.52

$1.56

$1.54

$1.59

$1.55 $1.50

$1.50 $1.45

$1.57 $1.57

$1.52

Source: Downtown Fort Worth, Inc.

$1.60

$1.53

$1.51

$1.42 $1.46

$1.40 $1.35 $1.30

1Q

2Q

3Q 2011

4Q

1Q

2Q

3Q 2012

4Q

1Q

2Q

2013

3Q

4Q

1Q

2Q

3Q 2014

4Q

Average Apartment Rent Downtown Fort Worth $1,800

$1,600

$1,536

$1,670

$1,635

Source: Downtown Fort Worth, Inc.

$1,500

$1,688

$1,680

$1,664

$1,654

$1,607

$1,652

$1,625

$1,605

$1,604

$1,706

$1,693

$1,679

$1,700

$1,544

$1,400 $1,300 $1,200 $1,100

1Q

2Q

3Q 2011

4Q

1Q

2Q

2012

3Q

4Q

1Q

2Q

3Q 2013

4Q

1Q

2Q

3Q 2014

4Q

STATE OF DOWNTOWN FORT WORTH 2014

31

Population and Housing

Residential Rental Units Planned and Under Construction Downtown Fort Worth PROJECT

UNITS

YEAR

Trinity Terrace

79

2016

Hunter Plaza

164

2016

Pinnacle Bank Place

130

2016

Jetta Building

8

2017

Cadillac Lofts

202

TBA

Carleton Trinity Bluff

238

TBA

T&P Warehouse

350

TBA

815 Commerce

143

TBA

Source: Downtown Fort Worth, Inc.

Average Monthly Apartment Rent

Source: Downtown Fort Worth, Inc.

Downtown Fort Worth $1,688

$1,700

$1,662 $1,637

$1,650 $1,600

$1,573

$1,561 $1,531

$1,550 $1,500 $1,450 2009

2010

2011

2012

2013

2014

Average Monthly Apartment Rent Per Square Foot Downtown Fort Worth Source: Downtown Fort Worth, Inc.

$1.60

32

$1.54

$1.54

$1.57

2012

2013

2014

$1.55 $1.50 $1.45

$1.48 $1.45

$1.43

$1.40 $1.35

2009

2010

2011

STATE OF DOWNTOWN FORT WORTH 2014

Housing Construction in Downtown Fort Worth Owner-Occupied Condominiums and Townhomes 1,000 926 units as of 2010

900

700 600

2006-2010

542

2000-2005

347

Pre-1999

37

14% since 2005

500 400 300 200 100 0

Rate of Growth Condominiums and Townhomes PERIOD

FORT WORTH

DOWNTOWN

2006 – 2010

14%

141%

2000 – 2005

17%

937%

Sources: Downtown Fort Worth, Inc. and the City of Fort Worth

Housing Construction in Downtown Fort Worth Renter-Occupied Units 3,000 2,500 2011-2014 2,000 1,500

280

2006-2010

583

2000-2005

209

2,526 units as of 2014

73.7% since 2000

1,000 500

Pre-1999

1,454

0

Source: Downtown Fort Worth, Inc.

Downtown apartment rent per sq ft increased by 9.5% since 2010.

Source: Downtown Fort Worth, Inc.

800

Rate of Growth of Renter-Occupied Units PERIOD

FORT WORTH

DOWNTOWN

2011 – 2014

5.4%

12.4%

2006 – 2010

17.7%

35%

2000 – 2005

5.9%

14.3

Sources: Downtown Fort Worth, Inc. and the City of Fort Worth

STATE OF DOWNTOWN FORT WORTH 2014

33

Hospitality

Business and leisure travelers agree, Downtown is the place to stay.

As the hub of a vibrant tourism and business travel destination, Downtown Fort Worth boasts 2,642 hotel rooms. With 660,000+ room nights sold in 2014, the average hotel occupancy was 69.0% with $111.54 revenue per available room (RevPAR).

Downtown paid 39.2% of Fort Worthâ&#x20AC;&#x2122;s hotel occupancy taxes in 2014

Blackstone Courtyard Marriott

$106+ MILLION in Downtown hotel revenue in 2014 Hotels Planned or Under Construction HOTEL

Hampton Inn

245

Autograph by Marriott

164

Source: Downtown Fort Worth, Inc.

34

STATE OF DOWNTOWN FORT WORTH 2014

ROOMS

Plano 5.8% Dallas 42.7%

Source: Texas Comptroller of Public Accounts

Richardson 2.9% Arlington 9.0%

Area Hotel Room Supply Irving 15.9%

Grapevine 6.5%

Downtown Fort Worth

Fort Worth without Downtown 13.1%

4.0%

The Ashton Depot

Plano 5.2% Richardson 2.8% Arlington 6.2%

Irving 16.6%

Area Hotel Revenue Share

Fort Worth without Downtown 9.3%

Grapevine 11.6%

Source: Texas Comptroller of Public Accounts

Dallas 42.9%

Downtown Fort Worth

5.5%

Blackstone Courtyard Marriott

Hotel Occupancy 2014

64.4%

Source: Smith Travel Research

USA

Downtown Fort Worth

69.0%

62.9 %

Downtown Dallas 50 %

55 %

60 %

65 %

70 %

JFK Tribute in Fort Worth

STATE OF DOWNTOWN FORT WORTH 2014

35

$120.00 Dallas CBD

Fort Worth CBD

USA

$114.54

$110.00 $104.05 $99.52

$99.63

$100.00

$88.38

$90.00

$78.28

$80.00 $74.93

$74.28 $68.69

$70.00 $65.15

$63.62

$61.08 $60.00

$50.00

Source: Smith Travel Research

Hospitality

Hotel Revenue Per Available Room

$40.00 2011

2012

2013

2014

Hotel Occupancy Taxes Paid Downtownâ&#x20AC;&#x2122;s Share as Percentage of City 50.0% 44.8%

43.7%

45.0%

42.3%

42.2%

41.3% 39.6%

39.0% 40.0%

41.1%

40.8%

39.8%

40.8%

39.2% 39.2%

40.4%

38.7%

40.3%

37.6%

Hotels in Downtown Fort Worth generate 39.2% of all annual hotel occupancy taxes in the city.

30.0%

25.0%

20.0%

15.0%

36

4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14

STATE OF DOWNTOWN FORT WORTH 2014

Source: Texas Comptroller of Public Accounts

35.0%

Current Hotel Room Inventory NIC

7

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504

3. Sheraton Fort Worth Hotel and Spa

430

4. Hilton Fort Worth

294

5. Downtown Fort Worth Courtyard-Blackstone Hotel

203

6. Embassy Suites Fort Worth Hotel Downtown

156

7. Marriott TownePlace Suites Fort Worth Downtown

140

5W

EB 8. Holiday Inn Express Hotel 132 30 IH & Suites Downtown Fort Worth IH 3 5W

3 IH

NB

8

PRESIDIO

2. Worthington Renaissance Hotel

30

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1. Omni Fort Worth Hotel

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9. Park Central Hotel

120

10. The Ashton

39

11. Etta’s Place

10

RIO GRANDE

Hotel Occupancy Rate 100.0%

Downtown Fort Worth

USA

90.0%

80.0%

75.3%

75.9%

73.6% 68.3%

70.0%

65.0%

71.6% 60.3%

65.6%

71.6%

72.5%

75.0%

71.8%

65.0%

67.0%

65.7%

68.0%

65.3%

60.0% Source: Smith Travel Research

68.8%

71.6%

57.0%

62.1% 58.8%

50.0%

52.6%

52.2%

40.0%

30.0% Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Jul-14

Aug-14

Sep-14

Oct-14

Nov-14

Dec-14

STATE OF DOWNTOWN FORT WORTH 2014

37

Hospitality

Revenue Per Available Room (RevPAR) $140 $126.17

$129.13

$128.86 Downtown Fort Worth

$120

$110.53

USA $123.92

$111.83 $117.86 $111.31

$100

$99.75

$94.66

$101.14

$80

$83.21 $75.28

$75.22

$86.67

$84.88

$77.21

$84.95 $76.93

$80.74

$67.44

$60

$66.05 $59.62 Source: Smith Travel Research

$56.95 $40

$20

$0

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Fort Worth Convention Center Facts Total arena

70,960 SF

Total exhibit hall

182,266 SF

Total exhibit space

253,226 SF

Ballroom space

28,160 SF

Jun-14

Jul-14

Aug-14

Sep-14

Oct-14

Dec-14

Largest Conventions 2014 by Hotel Rooms Reserved Downtown Fort Worth NAME

Kenneth Copeland Ministries

ROOMS RESERVED

10,323

Permanent seats in the arena

10,418

Texas FFA Association

9,111

Temporary seats in the arena

3,266

Premier Designs, Inc.

8,216

National Sheriffs’ Association

5,903

WorldVentures Marketing, LLC

5,513

Conference for the Advancement of Mathematics Teaching

4,745

Southwest Veterinary Symposium

4,531

Texas Emergency Medical Services

4,405

Association of Water Board Directors – Texas

3,804

American Cheerleaders Association

3,324

Republican Party of Texas

2,928

Number of meeting rooms Hotel rooms within a 15-minute walk Source: Fort Worth Convention & Visitors Bureau

RevPAR in Downtown Fort Worth was 50.2% higher than the national average.

41 2,370

Source: Fort Worth Convention & Visitors Bureau

38

Nov-14

STATE OF DOWNTOWN FORT WORTH 2014

Average Daily Hotel Room Rate (RevPAR) $190 Downtown Fort Worth $170

USA

$164.29

$161.71 $154.68

$152.62 $150

$144.82 $145.52

$146.82

$130

Source: Smith Travel Research

$110

$115.32

$106.07

$105.10 $106.41

$110.30

$97.34 $101.80

$90

$70

$50

2008

2009

2010

2011

2012

2013

2014

The Main Table

STATE OF DOWNTOWN FORT WORTH 2014

39

Retail

Dinner, drinks, dancing, shopping, theater and more.

Downtown Fort Worth is well known for its dining and

entertainment

experience.

More

than

70 restaurants can be found in the center city,

$93 MILLION

annual sales for full-service Downtown restaurants

$53 MILLION in mixed beverage sales for 2014

while live theatre, shopping, movies and comedy round out the urban mix. These diverse offerings and the vibrant street life they foster make Downtown more attractive to locals, visitors and residents.

With a 95.5% average retail occupancy since 2006, soft goods retail is now taking hold.

Downtown has experienced a 50.5% growth in

Spending by Downtown residents

clothing store sales since 2006. Several new retailers and restaurateurs have opened in Downtown, including The Cheesecake Factory, Sheepskin Co., Vivo 53, and White House Black Market. In addition, several new retailers and

5.4+ monthly visits to

restaurants have announced plans to open in

Downtown retailers

Downtown in 2015, including a 31,500 squarefoot H&M.

$60 average spent per retail visit

New retail opportunities are forthcoming at the

13.7 average monthly visits to

recently completed Sundance Square Plaza project and One City Place remodel, which together added more than 70,000 square feet of retail space in 2013 and 2014.

40

$45+ MILLION

annual spending by residents in Downtown

Hoya Korean Kitchen, Planet Sub, Overland

STATE OF DOWNTOWN FORT WORTH 2014

Downtown restaurants and bars

$65 average spending per restaurant visit

As the 12th-largest economy in the world, Texas continues to fare better than many other states.

For the 12th straight year, Texas has been ranked the top exporting state, according to data released by the U.S. Department of Commerce. The value of state exports in 2014 totaled more than $289 billion, an increase of 3.4% over 2013 and well ahead of overall U.S. exports in 2014, which grew 2.4 percent.

Texasâ&#x20AC;&#x2122; top exporting industries in 2014 were petroleum and coal products, chemicals, computer and electronic products, non-electrical machinery and transportation equipment.

Downtown Fort Worth Private-Sector Employees, Businesses and Payroll Total Downtown private-sector employees Annual payroll

38,044 $2,993,415,000

Average payroll per employee

$78,683

Number of business establishments

1,523

Source: U.S. Census Bureau 2012

Retail Occupancy Rate 100%

Downtown Fort Worth

98.0%

DFW

USA

95.0%

95% 92.8%

93.2%

93.1%

92.7%

91.2%

91.2%

4Q 2010

4Q 2011

92.0%

92.6%

92.7%

93.3%

92.9%

93.3%

93.9%

Source: CoStar

90%

85%

80%

4Q 2012

4Q 2013

4Q 2014

Top Import Partners for Texas Goods Billions

$120 $102.6 Source: Office of the Governor, Texas

$100 $80 $60 $40

$31.1

$20 $0

Mexico

Canada

$11.7

$10.9

Brazil

China

$8.9 Netherlands

STATE OF DOWNTOWN FORT WORTH 2014

41

Fourth Quarter 2014 Addison Addison Dallas CBD Dallas CBD East Dallas East Dallas East Fort Worth East Fort Worth Far North Dallas Far North Dallas Fort Worth CBD Fort Worth CBD Las Colinas Las Colinas North Arlington North Arlington Northwest Dallas Northwest Dallas Northwest Fort Worth Northwest Fort Worth Park Cities Park Cities Richardson Richardson Southlake Southlake Southwest Fort Worth Southwest Fort Worth Uptown Dallas Uptown Dallas West Frisco West Frisco West Plano West Plano 0% 10% 0% 10%

87.7% 87.7%

87.4% 87.4%

20% 20%

30% 30%

40% 40%

50% 50%

60% 60%

70% 70%

91.8% 91.8% 96.4% 96.4% 95.3% 95.3%

92.9% 92.9% 95.7% 95.7% 92.1% 92.1% 94.8% 94.8% 95.7% 95.7% 96.1% 96.1% 89.9% 89.9% 95.3% 95.3% 92.7% 92.7% 96.5% 96.5% 90.4% 90.4% 96.0% 96.0% 90% 100% 90% 100%

80% 80%

Source: CoStar

Retail

Retail Occupancy Rates for Submarkets in the Dallas-Fort Worth Metropolitan Area

Retail Rental Rates ($/SF) for Submarkets in the Dallas-Fort Worth Metropolitan Area Fourth Quarter 2014

42

$14.70 $14.70 $14.01 $14.01 $15.29 $15.29 $16.78 $16.78

$13.54 $13.54 $14.00 $14.00

$17.06 $17.06

$18.90 $18.90

$18.21 $18.21

$14.06 $14.06

$24.40 $24.40

$17.58 $17.58 $15 $15

STATE OF DOWNTOWN FORT WORTH 2014

$23.10 $23.10

$20 $20

$43.51 $43.51 $20.25 $20.25

$25 $25

$30 $30

$35 $35

$40 $40

$45 $45

Source: CoStar

Addison Addison Dallas CBD Dallas CBD East Dallas East Dallas East Fort Worth $9.45 East Fort Worth $9.45 Far North Dallas Far North Dallas Fort Worth CBD Fort Worth CBD Las Colinas Las Colinas North Arlington North Arlington Northwest Dallas Northwest Dallas Northwest Fort Worth Northwest Fort Worth Park Cities Park Cities Richardson Richardson Southlake Southlake Southwest Fort Worth $10.33 Southwest Fort Worth $10.33 Uptown Dallas Uptown Dallas West Frisco West Frisco West Plano West Plano $5 $10 $5 $10

Accommodation and Food Services Gross Sales Millions

January-June

$90 $80

Source: Texas Comptroller of Public Accounts

$79.2

$67.1

$68.9

$71.4

$70.2

$68.2

$61.6 $60

$89.7 $82.7

$80.5

$80.2

Retail Occupancy Rates for Submarkets in the Dallas-Fort Worth Metropolitan Area $76.6

$70

July-December

$76.5

$78.8

$70.3

Fourth Quarter 2012

$50 $40 $30 $20 $10 $0

NA 2007

2008

2009

2010

2011

2012

2014

2013

Full-Service Restaurants Gross Sales Millions

January-June

$55

$52.1 $49.1

$50 $45

Source: Texas Comptroller of Public Accounts

$40

July-December

$42.5

$46.6

$44.2 $44.6 $41.9

$39.2

$41.3 $40.0 Sources: CoStar $39.8

$45.2

$46.6

$46.3

$47.0

and Downtown Fort Worth, Inc.

$35 $30 $25 $20 $15 $10 $5

NA 2007

2008

2009

2010

2011

2012

2013

2014

STATE OF DOWNTOWN FORT WORTH 2014

43

Retail

Household Income Downtown Fort Worth Trade Areas 10 MINUTES DRIVE TIME HOUSEHOLD BY INCOME

20 MINUTES DRIVE TIME

NUMBER OF HOUSEHOLDS

PERCENT OF HOUSEHOLDS

NUMBER OF HOUSEHOLDS

PERCENT OF HOUSEHOLDS

<$15,000

15,354

22.60%

55,115

13.20%

$15,000 – $24,999

11,251

16.60%

48,358

11.60%

$25,000 – $34,999

9,338

13.80%

47,613

11.40%

$35,000 – $49,999

10,582

15.60%

66,464

15.70%

$50,000 – $74,999

19,677

14.30%

82,128

19.70%

$75,000 – $99,999

4,034

5.90%

45,888

11.00%

$100,000 – $149,999

4,048

6.00%

45,661

10.90%

$150,000 – $199,999

1,491

2.20%

14,284

3.40%

$200,000+

2,089

3.10%

11,504

2.80%

Source: ESRI

Average Consumer Spending Downtown Fort Worth Trade Areas CATEGORIES

10 MINUTES DRIVE TIME

20 MINUTES DRIVE TIME

AVERAGE/HHS

TOTAL SPENT

AVERAGE/HHS

TOTAL SPENT

$1,226

$92,442,563

$1,612

$696,284,563

$157

$11,853,949

$212

$91,707,396

Entertainment and Recreation

$2,237

$168,641,472

$3,041

$1,312,864,004

Food at Home

$3,373

$254,262,431

$4,274

$1,845,387,944

Food Away from Home

$2,376

$179,095,673

$3,117

$1,345,568,626

Health Insurance

$1,340

$101,005,147

$1,751

$756,272,493

$957

$72,137,182

$1,400

$604,530,391

$10,979

$568,421,938

$15,077

$6,508,908,019

$879

$66,285,553

$1,178

$508,769,345

Apparel and Services Computer and Accessories

Investment Home Household Furnishings and Equipment Travel Vehicle Purchases

$864

$65,144,993

$1,241

$535,784,345

$3,262

$245,893,761

$4,250

$1,835,086,986

Consumer spending is the amount spent on a variety of goods and services by households that reside in the market area. HHS: Households Source: ESRI

Retail Sales Downtown Fort Worth Trade Areas INDUSTRY GROUP

NAICS

10 MINUTES DRIVE TIME

20 MINUTES DRIVE TIME

Food and Beverage Stores

445

$594,060,316

$2,147,856,318

Clothing and Clothing Accessories Stores

448

$156,637,726

$622,410,557

General Merchandise Stores

452

$218,807,113

$1,722,199,970

Non-Store Retailers

454

$71,172,713

$178,671,783

Food Services and Drinking Places

722

$528,624,977

$2,068,727,072

Full-Service Restaurants

7221

$266,108,753

$801,345,825

Limited Service Eating Places

7222

$182,611,726

$1,087,124,293

Special Food Services

7223

$48,093,082

$87,868,420

Drinking Places - Alcoholic Beverages

7224

$31,811,416

$92,388,535

NAICS: The North American Industry Classification System (NAICS) is the standard used by federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing and publishing statistical data related to the U.S. business economy.

Source: ESRI

44

STATE OF DOWNTOWN FORT WORTH 2014

Drive Time Downtown Fort Worth

10 MINUTES

drive time

20 MINUTES

drive time

Drive Time 2012 – 2017 Downtown Fort Worth 10 MINUTES DRIVE TIME

2012

2017

Population

193,979

206,134

Households

67,865

71,837

2.79

2.80

Owner-occupied housing units

35,596

38,568

Renter-occupied housing units

32,269

33,269

31.8

32.4

Average household size

Median age Source: ESRI

STATE OF DOWNTOWN FORT WORTH 2014

45

Retail Mixed-Beverage Gross Sales Downtown Fort Worth Millions $55

$52,963,206

$50

$48,206,547

$48,126,636

Source: Texas Comptroller of Public Accounts

$43,994,761

$43,497,449

$45

$48,872,124

$40,831,349 $42,760,505

$40

$35

$30

$25 2007

2008

2009

2010

2011

2012

2013

2014

Clothing Stores Gross Sales Downtown Fort Worth January-June

July-December

$3.2 $3

$2.8

$3.1

$2.8

$2.6

$2.6 $2.4

$2.3 $2.1

$2.2

$2.4

$2.3

$2.3

$2

$1

46

NA 2008

2009

STATE OF DOWNTOWN FORT WORTH 2014

2010

2011

2012

2013

2014

Source: Texas Comptroller of Public Accounts

Millions $4

Gross Sales All Industries Dollars Per Square Mile MARKET

Downtown Fort Worth

2012

2013

$670,514,791

$736,904,143

76104 Near Southside

$181,160,710

$176,551,745

76107 Cultural District

$209,629,178

$234,776,684

Fort Worth

$112,067,584

$123,003,585

Source: Texas Comptroller of Public Accounts

Movie Night in Sundance Square Plaza

STATE OF DOWNTOWN FORT WORTH 2014

47

Quality of Life 48

Livability.com ranked Downtown Fort Worth as the #1 downtown in the U.S. Nowhere is our excellent quality of life more apparent than in Downtown, where education, entertainment, parks and amenities are abundant.

STATE OF DOWNTOWN FORT WORTH 2014

Entertainment

290,000+ arts venue attendance Parks/Recreation 385 acres of park land servicing Downtown Access to 72 miles of trails

4,300 free night and weekend parking spaces 412,000+ items in circulation at the Central Library

6 childcare centers Entertainment Venues Downtown Fort Worth VENUE

AVAILABLE SEATS

Fort Worth Convention Center (Arena Seating)

10,418

Bass Performance Hall

2,056

AMC Sundance 11

1,850

Maddox-Muse Center

300

McDavid Studio

300

Four Day Weekend

212

Jubilee Theatre

147

Circle Theatre

125

Source: Downtown Fort Worth, Inc. survey

STATE OF DOWNTOWN FORT WORTH 2014

49

SAMUEL AVENUE

Created in 1986, Downtown Fort Worth Improvement District (PID) #1, administered

by DFWI, offers a comprehensive program of services including research, marketing, Downtown PID Districts planning assistance, sidewalk PID #1 cleaning, street sweeping, PID #14 security enhancement, and litter removal. From 1986 to 2009, the PID services were renewed by petition every five years by an overwhelming majority of property owners. Because of the PIDâ&#x20AC;&#x2122;s ongoing success, it was reestablished in 2009 for a 20-year period by the Fort Worth City Council, following the submission of petitions from property owners representing 83% of the property value and 80% of the land area in the District. Downtown Fort Worth Improvement District #14 was established in June 2009. Since then, District contractors provide sidewalk maintenance along Samuels Avenue on Sundays and supplemental weekly trash pick-up.

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Quality of Life

PID #1 & #14

H 7T

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8T

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9T

7TH

MONROE

H 3T

1

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LANCASTER

IH

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13TH

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COLLIER

SUMMIT

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10TH

W

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EL PASO

SUN

DAGGETT

SET

RIO GRANDE

BROAD WAY

14TH

15TH

WENNECA

$39,106,702 budgeted revenue & expenses for the life of PID #1 since its creation in 1986. $1,204,820 in services annually 3,744 miles of curb and gutter cleaning annually, 72 miles weekly

1,984 cubic yards of dirt and sand debris removed from streets, curbs and gutters annually 15,660 linear miles of sidewalks cleaned annually 146 Downtown trees lighted

1,249 trees serviced within PIDs Grackle population has been reduced to 2% of original numbers due to Operation Grackle (25,000 reduced to 500)

17 full-time clean-team members 2 cubic yards of recycle material collected each week 11,000 sq feet of planters in bloom year-round

50

STATE OF DOWNTOWN FORT WORTH 2014

IH

NB

35

IH 3 5W

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PRESIDIO

30

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Tax Increment Finance District #3

NIC

TIF: 3 Downtown

HO

RD

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TIF: 4 Southside/Medical District

ING

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A significant publicTIF: 6 Riverfront TIF: 8 Lancaster private partnership TIF: 9 Trinity River Vision that adds to the success AP KN D 0 OR BEL 28 ERF UR of Downtown is the ATH 1 E SP W 2 Downtown Tax CH 3 PEA F F 9 4 Increment Finance BLU 2 District (TIF) and 1 6 3 the other DowntownPIER 1 8 5 oriented TIFs. The 9 7 12 Downtown TIF makes 10 13 strategic investments in 14 TEXAS 15 parking, infrastructure, 13 13 historic preservation, LANCASTER S and residential W 35 PRESIDIO IH development. The TIF EL PASO is a collaboration of the RIO GRANDE VICKERY City of Fort Worth, JARVIS DAGGETT Tarrant County, Tarrant County Hospital District, Tarrant County College District, and Tarrant Regional BROAD WAY Water District.

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HEMPHILL

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To date, the TIF has obligated $73 million, leveraging $584 MILLION in private development and facilitating $41 million in public investment. The lifetime cap of the TIF is $100 MILLION. DFWI manages the Downtown TIF through a contract with the TIF Board of Directors.

Downtown TIF Costs, Investments and Tax Increment $800 City’s TIF Contribution

TIF Costs

Investments

Tax Increment

Source: Downtown Fort Worth, Inc. and Tarrant Appraisal District

$700 $592.97

$600

$500 Trinity Bluff

$400

$300

$200

$100

$584.25 Cassidy Building

Carnegie Building

Crescent Garage/ Bass Hall

Ashton Hotel

Chase Building

Family Law Center

The Tower

Pecan Place

UTA

Marriott Towne Place

Oliver’s

City Place Westbrook, Garage/ Commerce Buildings Retail

Two City Place

$47.70 $23.35

$0 1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

STATE OF DOWNTOWN FORT WORTH 2014

51

Education

From Pre-K to MBA, Downtown is the place to learn.

Fort Worth ISD announced $69M to Downtown STEM and Performing & Visual Arts High Schools.

1st Qtr 2015

10,394 higher

Downtown higher education

enrollment

education grew by 1,396% in 12 years

students Downtown in 2014

= future customers = future workforce

2003

695

2014

10,394

= future residents

806 K-12 education students Downtown in 2014

52

STATE OF DOWNTOWN FORT WORTH 2014

Higher Education Fall Semester Enrollment Downtown Fort Worth Tarrant County College

University of Texas at Arlington Fort Worth Center

1,800

10,000 9,000

8,410

8,000

8,774

1,138 918

600

2,000

400

1,000

200 2010

2011

2012

2013

900 730

2010

2011

2012

2013

2014

Number of students enrolled in higher education campuses in Downtown remained steady in 2013 but has increased by 53.2% since 2009.

1,000

768

0

2014

Texas A&M School of Law

738

770

700

702

600

12,000 10,712

11,000

500

10,757

10,394

9,557

10,000

400

9,000

300

7,808

8,000

200

7,000

100 0

1,564

800

3,000

800

1,590

1,000

4,000

0

1,581

1,200 5,459

5,000 Source: Downtown Fort Worth, Inc. Survey of Downtown Education Institutions

1,600 1,400

7,237

7,000 6,000

8,849

2010

2011

2012

2013

2014

6,000

6,786

2009

2010

2011

2012

2013

2014

Educational Institutions Downtown Fort Worth 2014 – 2015 ENROLLMENT

Montessori at Sundance Square

97

St. Paul Lutheran School

224

Young Women’s Leadership Academy

308

Nash Elementary School

274

Texas A&M School of Law

702

University of Texas at Arlington, Fort Worth Center

918

Tarrant County College, Trinity River Campus

11,297

students in 2014.

8,774

Source: Downtown Fort Worth, Inc. Survey of Downtown Education Institutions

STATE OF DOWNTOWN FORT WORTH 2014

53

Transportation

Downtown Fort Worth, a local transit hub, offers excellent access to various transportation options throughout the community and the Dallas-Fort Worth area.

The Intermodal Transportation Center, which opened in 2002, is the central gathering point for the Greyhound Bus Line, the Fort Worth Transportation Authority (The T), Trinity Railway Express, Amtrak, taxis and the Molly the Trolley shuttle service. Currently, 39 bus routes serve Downtown.

The T also operates a â&#x20AC;&#x153;Free Zoneâ&#x20AC;? which offers rides at no cost to anyone traveling within the central business district.

Downtown visitors enjoy 4,300 free parking spaces available after 6 p.m. on weekdays and all day on weekends, courtesy of the Downtown Tax Increment Finance District. In addition, The Tower garage offers first-hour-free parking during daytime hours, as does the City Place garage for validated guests. There are more than 42,000 Downtown parking spaces.

To inform the public about the many parking options Downtown, a Fort Worth parking website was created through a partnership between the City of Fort Worth, Downtown Fort Worth, Inc., Fort Worth Convention & Visitors Bureau, and the Historic Stockyards. Fortworthparking.com allows users to quickly find the nearest parking options.

54

STATE OF DOWNTOWN FORT WORTH 2014

2,850,600 27% increase in bus ridership since 2005 (10 years)

Calories Burned on 32,267 trips taken using Fort Worth’s Bike Share Program in 2014

420,656

Downtown riders for the Trinity Railway Express (2014)

531,000+ Average daily traffic count

505,434

on Downtown highways

Molly the Trolley ridership since inception (May 2009)

14 Bike Share stations in Downtown

Meacham International Airport, North Texas’s premier general aviation facility, is located just 5 miles from Downtown

Dallas-Fort Worth International Airport

•1 7 miles from Downtown •6 3+ MILLION passengers in 2014 •1 48 domestic non-stop destinations •5 6 international destinations •2 4 carriers •A pproximately 172,000+ passengers daily •E very major city in the continental United States can be accessed within four hours

four hours

STATE OF DOWNTOWN FORT WORTH 2014

55

Transportation

COMING

2018 TexRail Commuter Rail System

Trinity Railway Express Ridership Fiscal Years 2003 – 2014 Millions 3.0 2.7 2.5

2.4

2.29 2.16

2.15

2004

2005

2.65

2.5

2.5

2.4

2.3

2.29 2.14

Source: Fort Worth Transportation Authority

2.0

1.5

1.0

0.5

0.0

2003

2006

2007

2008

2009

2010

2011

2012

2013

2014

The Trinity Railway Express links Downtown Fort Worth’s T&P and ITC Stations to CenterPort/DFW Airport Station and Downtown Dallas Union Station Monday through Saturday. The airport’s free Remote South shuttle bus service provides continuous connections between the station and airline terminals.

56

STATE OF DOWNTOWN FORT WORTH 2014

Annual Ridership for Bus Routes Serving Downtown Fort Worth 2005 – 2014 Millions 6.00

5.56 5.46

5.50

5.21

Source: Fort Worth Transportation Authority

5.19 5.00

4.84

4.78 4.50

5.00

4.98

4.83

4.39

4.00

3.50

3.00 2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Average Daily Traffic Count on Selected State and National Highways Serving Downtown Fort Worth Thousands 600

571

596

531

532

500

Source: Texas Department of Transportation

422

400

438

481

460

454

2005

2006

491

498

2008

2009

381

300

200

100

0

2002

2003

2004

SH 287

SH 121

I-35W

2007

2010

2011

2012

2013

I-30

65,2974 2013

105,549 175,187 139,818

STATE OF DOWNTOWN FORT WORTH 2014

57

100.0%

81.4%

80.0% 80.0% 60.0% 60.0%

74.1% 61.9%

80.0%

74.1%

81.4%

74.1%

61.9%

60.0%

61.9%

92.0%

40.0% 40.0%

Downtown Austin*

Downtown Dallas*

Downtown Austin*

Downtown Dallas*

40.0%Downtown Fort Worth Downtown Austin* Downtown Fort Worth

Fort Worth Downtown Dallas* Fort Worth

92.0% 81.4%

Downtown Fort Worth

Fort Worth

Means of Transportation to Work: Public Transportation

6.0%

6.0% 6.0%

4.5% 4.5%

4.0% 4.0% 2.0%

4.5%

4.0%

2.9%

2.6%

2.9%

2.9%

2.0% 2.6% 0.8%

2.0%

0.8%

0.0% 0.0%

2.6%

Downtown Austin*

Downtown Dallas*

Downtown Austin*

Downtown Dallas*

0.0%Downtown Fort Worth Downtown Austin* Downtown Fort Worth

0.8% Fort Worth Downtown Dallas* Fort Worth

Downtown Fort Worth

Fort Worth

25.0% 25.0%

22.0% 25.0% 20.0%

22.0% 22.0%

20.0% 15.0%

20.0%

12.5%

15.0% 10.0%

12.5%

15.0%

12.5% 8.1%

10.0%

10.0% 5.0%

8.1% 5.0%

5.0% 0.0% 0.0%

58

Downtown Austin*

Downtown Dallas*

Downtown Austin*

Downtown Dallas*

STATE OF DOWNTOWN FORT WORTH 2014

0.0%Downtown Fort Worth Downtown Austin* Downtown Fort Worth

1.3% Fort1.3% Worth Downtown Dallas* Fort Worth

*Zip codes 75201 and 75202 are used for downtown Dallas Zip code 78701 is used for downtown Austin Source: US Census Bureau

Means of Transportation to Work: Walk or Bike

8.1%

1.3% Downtown Fort Worth

Fort Worth

*Zip codes 75201 and 75202 are used for downtown Dallas Zip code 78701 is used for downtown Austin Source: US Census Bureau

Means of Transportation to Work: Car, Truck or Van 100.0% 92.0%

*Zip codes 75201 and 75202 are used for downtown Dallas Zip code 78701 is used for downtown Austin Source: US Census Bureau

Transportation

100.0%

300

200

100

Average Daily Traffic Count 2002Selected 2003 State2004 and

2005 Highways 2006 2007 2008 2009 2010 Federal Serving Downtown Fort Worth

SH 287

SH 121

2011

2012

2013

I-30

I-35W

65,2974 105,549

2013

175,187 139,818 67,000 107,000

2012

174,000 147,000 67,000 106,000

2011

177,000 141,000 59,000 112,000

2010

163,000 143,000 61,000 106,000

2009

168,000

All counts were taken

137,000

within a radius of 2 miles

58,000 Source: Texas Department of Transportation

0

from the intersection of

102,000

2008

144,000

175,000

Fort Worth.

63,000 106,000

2007

I-30 and I-35W, SH 121 and SH 287 in Downtown

155,000 147,000 67,000 101,000

2006

151,000 143,000 0

50,000

100,000

150,000

200,000

STATE OF DOWNTOWN FORT WORTH 2014

59

PID Advisory Board

Jack Clark Chair Red Oak Realty Hank Akin Klabzuba Realty Rita Aves Oil & Gas Building Johnny Campbell Sundance Square Rick Cantalini Tower Condo Association I Richard Casarez ONCOR Electric Delivery Andrew Casperson Omni Fort Worth Hotel Gary W. Cumbie The Cumbie Consultancy Jim Finley Finley Resources Inc.

Julie Jones Chesapeake Energy Corporation John Klukan The Worthington Renaissance Fort Worth Hotel Delores Knight Mallick Tower Walter Littlejohn The Fort Worth Club Michelle Lynn Building Owners & Managers Association Allison Millington Behringer Harvard T. Pollard Rogers Cantey & Hanger, L.L.P. Tom L. Struhs Struhs Construction

Dave Fulton Hilton Fort Worth

Jed Wagenknecht Downtown Fort Worth Blackstone Courtyard Marriott

Taylor Gandy Ron Investments, Ltd

Joy Webster MorningStar Capital

Melissa Graham Cousins Properties Ossana Hermosillo City of Fort Worth Marie Holliday, DMD Flowers to Go in Sundance Square

60

Teresa Jarvise Starpoint Commercial Properties, LLC

STATE OF DOWNTOWN FORT WORTH 2014

Credits Downtown Fort Worth, Inc. is especially grateful to the following organizations and individuals for their assistance in producing the State of Downtown publication: Carmen Escalante Research Specialist Texas Comptroller of Public Accounts

Andrea Timbes CRM Analyst Convention and Visitors Bureau

Phil Dupler Service Planner Fort Worth Transportation Authority “The T”

Special thanks to Brian Luenser, Burnett Plaza, Geno Loro, Jeffrey Stvan, Selling the Fort, Sundance Square, Steve Reisman, The T, and UTA Fort Worth Center for their photography.

Downtown Fort Worth, Inc. Publications

Tarrant County Clerk Tarrant County College Texas A&M Real Estate Center Texas A&M School of Law Texas Comptroller of Public Accounts Texas Department of Transportation Texas Workforce Commission U.S. Bureau of Economic Analysis U.S. Bureau of Labor Statistics U.S. Census Bureau U.S. Department of Commerce University of Texas at Arlington Young Women’s Leadership Academy

Annual Report Commercial Market Report Downtown Dashboard Downtown Retail Profile In View Residential Focus State of Downtown

Information Sources City of Fort Worth CoStar Downtown Fort Worth, Inc. ESRI Federal Housing Finance Agency Fort Worth Convention and Visitors Bureau Fort Worth Transportation Authority “The T” Nash Elementary School National Association of Realtors The North Central Texas Council of Governments North Texas Real Estate Information System, Inc. Office of the Governor of Texas, Economic Development and Tourism Smith Travel Research St. Paul’s Lutheran School Tarrant County Appraisal District

Downtown Fort Worth, Inc. Staff Andrew Taft President Matt Beard Director of Public Improvement Districts Cleshia Butler Administrative Assistant Jay Downie Event Producer Becky Fetty Director of Membership and Marketing

Susan White City of Fort Worth Planning and Development Department

Joanna Sanchez Accounting Assistant Allison Wright Marketing and Project Manager Diana Hahn Program and Production Manager Melissa Konur Director of Planning Brandi Huckabee Controller Arrie Mitchell Director of Research Carole Robinson Executive Assistant/Office Manager

Downtown Fort Worth is a remarkable place and DFWI members make it even better.

You are invited to be a part of Downtown, become a member today!

For membership information contact Becky Fetty beckyf@dfwi.org

PMS 286

777 Taylor Street, Suite 100 Fort Worth, Texas 76102 817.870.1692 | www.dfwi.org