Dallas-Fort Worth Real Estate Review - Fall 2019

DFWREALESTATEREVIEW.COM

THEEAGLE HASLANDED THE STORY BEHIND AMERICAN AIRLINES’ MASSIVE NEW CORPORATE CAMPUS

FALL 2019

ALSO INSIDE:

FEATURE:

INTERNATIONAL Influences on DFW INNOVATION:

THE TELECOM SECTOR THE CRANE REPORT:

WHO’s building what, where

Empowering Empowering communities communities through design through design Supporting our communities from local Supporting our communities fromPlano. local offices in Dallas, Fort Worth, and offices in Dallas, Fort Worth, and Plano.

Visit us at stantec.com to learn more.

Visit us at stantec.com to learn more.

Kubota Headquarters USA Mercedes Benz-USA GameStop Headquarters Gaylord Texan Hotel Resort & Convention Center Paycom The Trade Group Great Wolf Lodge Grapevine Mills Mall Wineries Bass Pro Shops Sea Life Aquarium Award Winning Golf Courses Legoland Historic Downtown Fine Dining Award-Winning Festivals 60 Mile Shoreline Lake

Grapevine has over 100 years of innovation and imagination that drives growth and creates opportunities for our businesses and families. Blending historic charm with commercial growth provides both a great place to live and work. The City of Grapevine is home to many successful businesses as well as numerous wineries, fine dining, nationally ranked festivals, and select attractions and resorts. Grapevine has earned a well-deserved reputation as one of the nation’s premier destinations by drawing 20 million visitors annually. Our unique geographic location and variety of amenities makes Grapevine an amazing City location and destination for success.

Grapevine Economic Development

200 South Main Street, Grapevine, Texas 76051 Bob Farley, Director bfarley@grapevinetexas.gov | 817.410.3108 ChooseGrapevineTX.com

FALL 2019 Cover rendering courtesy of American Airlines

CONTENTS

19 THE CRANE REPORT

Welcome Letter . . . . . . . . . . . . . . . . . . . . . . . . . 6 Publisher’s Note . . . . . . . . . . . . . . . . . . . . . . . . .8

FOUNDATIONS DFW Market Statistics, Economic Indicators, and Commercial Real Estate News. . . . . . . . . 10

BUILDING TOMORROW TOGETHER Regional Matters . . . . . . . . . . . . . . . . . . . . . . 12

THE CRANE REPORT

30 INTERNATIONAL INFLUENCE

Who’s Building What, Where . . . . . . . . . 19

SCORECARD DFW’s Top Office and Industrial Leases . . . . . . . . . . . . . . . . . 27

FEATURE International Influence Five visionary developers from around the world have come to make their mark on Dallas-Fort Worth . . . . . . . . . . . . . .30

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E XC L USI V E LY P UB L ISHE D B Y D MAGAZINE PARTNERS

DFWREALESTATEREVIEW.COM

PUBLISHER & EDITORIAL DIRECTOR

42 INNOVATION

Quincy Preston 214-523-5215 quincy.preston@dmagazine.com

INNOVATION Telecom Central

MANAGING EDITOR

As 5G rolls out nationwide, North Texas is home to the biggest names in the industry . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Lance Murray

SENIOR EDITOR Alex Edwards

PROJECT EDITOR Anna Caplan

CREATIVE DIRECTOR Michael Samples

CONTRIBUTING WRITERS Payton Potter

52 ANATOMY OF A DEAL

Jim Fuquay Nicholas Sakelaris

The Eagle Has Landed

Sandra Engelland

American Airlines has expanded its Fort Worth campus . . . . . . . . . 52 INTERNS Kathryn Chavez

SPECIAL ADVERTISING SECTION

India Edwards

Economic Development Directory Profiles of cities around the region . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

Erin Gilliatt Maddie Preston

BUSINESS DEVELOPMENT

COMMUNITY The Real Estate Council, Impact Investors . . . . . . . . . . . . . . . . 59 Dallas Regional Chamber, Top-Level Members . . . . . . . . . . . . . 60 Dallas Regional Chamber, Leadership Dallas . . . . . . . . . . . . . . . 64 Calendar of Events . . . . . . . . . . . . . . 65

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Steve Reeves

The Real Estate Council Photos: Cornerstone Community Laundromat Opening . . . . . . . . . . . 66 The Real Estate Council, TREC Leadership . . . . . . . . . . . . . . . 67 View From the Top: Bill Hannes, Pioneer Natural Resources . . . . . . . . . 68

214-523-5259 steve.reeves@dmagazine.com

Dallas-Fort Worth Real Estate Review® is published for The Dallas Regional Chamber and The Real Estate Council by D Magazine Partners, 750 N. St. Paul St., Ste. 2100, Dallas, TX 75201; www. dallaschamberpublications.com, 214.523.0300. ©2019 All rights reserved. No part of this publication may be reproduced or reprinted without written permission. Neither the Dallas Regional Chamber nor The Real Estate Council nor D Magazine Partners is a sponsor of, or committed to, the views expressed in these articles. The publisher is not responsible for unsolicited contributions.

From boot makers to boutique retailers, small businesses are warming up to the opportunities in Mesquite. Here you can find everything from mom-and-pop shops to eateries that have been proclaimed “the best of� in the Dallas area. We’re investing heavily in Downtown Mesquite revitalization and have been nationally recognized for our small business support.

Together with chefs, artisans, entrepreneurs and service industry professionals, we are reshaping our community. Small business is heating up in Mesquite.

WELCOME

A letter from the Dallas Regional Chamber and The Real Estate Council 2019 CHAIRMAN OF THE BOARD Chris Nielsen

EDUCATION MATTERS TO BUSINESS.

Executive Vice President Product Support & Chief Quality Officer Toyota Motor North America PRESIDENT & CEO

Our education pipeline and the talent of our community are inextricably linked: improving educational outcomes for local students creates better career options for them—and a sustainable, highly-trained workforce for regional businesses now and in the future.

Quality education has an even more acute impact on real estate. A great school and highly-rated school district always attracts housing interest within its attendance boundary.

Housing growth supports commercial development growth and expansions to meet the needs of area residents. When new businesses spring up to serve the growing community, more income and work options create even more demand for talent and skills development from our education systems.

In North Texas, we are fortunate to have great public school districts and charter systems.

The Texas Education Agency (TEA) recently released their annual report card for schools and districts, and our region fared well. Of the 162 public school and charter systems in DallasFort Worth, 132 (82 percent) received an A or B under the TEA’s accountability system. Onehundred thirty-six (91 percent) districts and systems improved or maintained their scores, as compared to 2018. This kind of performance outpaces statewide trends and demonstrates the quality of public education in North Texas is strong and getting stronger.

The improvement trends in the Dallas Independent School District (DISD) also continue, with the district receiving a 2019 score of B (86), up five points from last year. With a strong system of neighborhood campuses that are further bolstered with choice, innovation, magnet schools, career institutes, and early college high schools, Dallas ISD is providing increasingly high-quality educational experiences throughout the city. This is particularly impressive given that 90 percent of students are considered economically disadvantaged, the second-highest

Dale Petroskey CHIEF OPERATING OFFICER & CHIEF FINANCIAL OFFICER Angela Farley COMMUNICATIONS & MARKETING, DALE PETROSKEY President and Chief Executive Officer Dallas Regional Chamber

LINDA McMAHON President and Chief Executive Officer The Real Estate Council

SENIOR VICE PRESIDENT Scott Goldstein RESEARCH AND INNOVATION, SENIOR VICE PRESIDENT

rate of all major urban districts in Texas.

As one broker said after hearing about Dallas’s great successes in public education, “We need to promote our schools more!” Our schools are becoming our greatest strength and these improvements give confidence to real estate investors and owners that our regional education system is producing quality talent for our regional workforce. Continuing the Texas Miracle demands a strong education system, and we are very fortunate to have committed and talented leaders, educators, and businesses, and a vibrant philanthropic and community who together are supporting our students and our schools. We hope to continue the cycle that starts with a strong education infrastructure, bolstered by the state’s new $11 billion investment in Texas public education and property tax relief.

It is critical to strengthen the education pipeline “from cradle to career” to ensure that students are not only graduating at higher rates but are prepared with the relevant skills and training they need to compete for the jobs of tomorrow. We are encouraged by the progress we’ve made, and we continue to work hard every day. We remain vigilent in protecting and promoting our most valuable asset in our regional economy—our human capital.

Duane Dankesreiter RESEARCH AND INNOVATION, MANAGING DIRECTOR Eric Griffin

2019 CHAIRMAN Jim Knight FM Engineering & Design VICE CHAIRMAN Bill Cawley Cawley Partners PRESIDENT & CEO Linda McMahon VICE PRESIDENT, LEADERSHIP & CULTURE Holland Morris CFO Carla Brandt

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CENTER STAGE IN THE ARTS DISTRICT SINCE 1985.

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

owned by institutional investors advised by

leased and managed by

UPFRONT QUINCY PRESTON Publisher Dallas-Fort Worth Real Estate Review

A letter from the Publisher

When Swedish telecom giant Ericsson announced recently that it had chosen Lewisville for its new 300,000-square-foot, fully-automated smart “Factory of the Future” to produce 5G and Advanced Antenna System radios, it was a sign of two things—industrial space construction is still strong in North Texas and telecom remains a major part of the Dallas-Fort Worth real estate landscape. In our Innovation feature that begins on Page 42, writer Jim Fuquay tells us that telecom’s important position in DFW really isn’t a comeback—despite a rough patch in the early 2000s—because the sector has remained strong all along. Companies such as Ericsson, AT&T, Verizon and others are investing heavily in major real estate projects that are helping to transform North Texas.

Like telecom, aviation is a major player in the North Texas economy. As the world’s largest airline, American Airlines Group is a longtime corporate resident of Fort Worth and its new $350 million, 90-acre expansion of its headquarters there fulfills the company’s corporate motto of “One Campus, One Team.” In our Anatomy of the Deal feature, writer Payton Potter gives us an inside look at the massive new headquarters not far from Dallas Fort Worth International Airport, beginning on Page 52.

Dallas-Fort Worth is known for big developments that incorporate new ideas, and five North Texas developers with international roots are hard at work molding unique and highly successful developments here.

Think Legacy West, the Harwood District, and the redo of Collin Creek Mall as examples of their projects. Beginning on Page 30, developers Jack Matthews (Canada), Gabriel Barbier-Mueller (Switzerland), Mehrdad Moayedi (Iran), Fehmi Karahan (Turkey), and Mike Hoque (Bangladesh) talk about how their international backgrounds have influenced their real estate endeavors in North Texas.

We’ve got our standard features, of course, such as the region’s largest lease transactions in Scorecard beginning on Page 27, and the latest in construction across North Texas in Crane Report beginning on Page 19.

On our website, www.dfwrealestate.com, and on our Facebook feed, you can find extended content. Stay in touch, we enjoy hearing from you.

Quincy Curé Preston Publisher

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A

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FOUNDATIONS

A baseline for the region’s future

GREEN SPACE

KLYDE WARREN PARK ANNOUNCES WESTWARD EXPANSION By all accounts, when Klyde Warren Park opened in 2012, not only did it literally bridge the divide between Uptown and downtown Dallas, it also ignited what can only be described as an economic generator for the city.

A proven gathering and events spot for Dallas residents, Klyde Warren Park expects to welcome its 10 millionth visitor later this year, making it one of the most-visited destinations in Dallas. What’s the park’s economic impact?

An estimated $2.5 billion, park offi cials say.

Now, expect even more economic and social impact for the city as the park has released renderings of its planned westward expansion over the Woodall Rodgers Freeway toward Field Street.

The project will expand the downtown green space 1.5 acres,

with construction scheduled to begin in winter 2021 and be completed in mid-2024, according to a statement.

“This much-needed expansion will create more space in the heart of the city,” Jody Grant, chairman of the board of the Woodall Rodgers Park

Foundation, said in a statement.

“It will also secure the financial future of the Park by creating multi-purpose space.

The project will further enhance the land value around the Park and those taxes ultimately benefi t the City and institutions such as our schools and

HOT ZONE

TECH

REAL ESTATE FIRM RECOGNIZES DEEP ELLUM’S COOL FACTOR We all know that Deep Ellum east of downtown Dallas is cool. The area has colorful murals, old buildings, quaint shops, eclectic artists, and good food.

Rideshare tech giant Uber obviously thinks it’s pretty cool too, recently announcing Deep Ellum will be the home of the company’s second-largest campus outside of its San Francisco headquarters. The deal quickly became one of the biggest North Texas real estate moves in recent years—Uber said it’s taking 450,000 square feet of space in a planned tower at The Epic mixed-use development, bringing 3,000 jobs with it.

And now, global real estate services firm Cushman & Wakefield has put a cool stamp on Deep Ellum by including the

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hospitals.”

Officials also announced financial gifts to support the undertaking as well as enhancements to the current park. Included in the expansion project is a three-story, enclosed special events pavilion.

—Lance Murray

area among the Top 20 in its Cool Streets of North America report.

Deep Ellum is a place where you could spot a mohawksporting artist and a suit-wearing businessperson side-by-side, eating at one of the district’s plentiful restaurants.

In its report, Cushman & Wakefield looks at what’s driving the rise of the hottest retail districts across the U.S.and Canada, giving in-depth info on

INDEX SAYS DALLAS AMONG NATION’S MOST AI-READY CITIES 100 of the coolest areas.

“While Dallas has many walkable urban districts that may also be considered by some to be Cool Streets, Deep Ellum stands out due to its gritty, authentic feel,” Chris Harden, a director within Cushman & Wakefield’s Capital Markets Group who leads the retail, urban land, and mixeduse investments practice in Texas, said in a statement.

Deep Ellum’s “critical mass” of historic and eclectic architecture, a walkable street grid, and a live music scene, along with entertainment venues, unique culinary off erings, top tech and design firms, strong branding and identity, and contiguous and cooperative ownership throughout help diff erentiate it from other areas of Dallas. —LM

Dallas sits at No. 8 in the world and third in the nation in the Global Cities’ AI Readiness Index conducted by The Oliver Wyman Forum, which evaluates how cities are prepping for tech that can disrupt the way we live and work.

The index is designed to help answer the question of “What does urban AI resilience look like?”

The index affirms Dallas’ top place among cities that have embraced AI. For example, Dallas has the Smart Cities Living Lab program in the West End Historic District, which incorporates high-tech—including AI—into its program.

The forum conducted global research on 105 cities across 31 metrics to better understand the potential disruption created by artificial intelligence. —LM

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Direct rail access to DFW Airport

13th-largest city in U.S.

State-of-the-art office space

Top 5 fastest growing city1

60+ area colleges and universities

Among best large cities to start a business2

Walk score 923

Discover DFW’s premier office address.

To learn more, visit dfwi.org/more 1U.S.

Census 5/23/19, 2WalletHub, 5/6/19, 3Walkscore.com

DOWNTOWN

FORT WORTH the

FW IN DFW

F FOUNDATIONS MARKET SNAPSHOT

SECTOR BY SECTOR, DFW CONTINUES HOT STREAK

RETAIL STAYS FIT WITH BIG BOX ABSORPTION CBRE says that big box net absorption increased in the third quarter with numerous Class A and B spaces being taken off the market, with many being filled by fitness and entertainment concepts. CBRE says that more than ten big boxes have been filed by gyms this year alone. For example, Athletic Apex leased

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60,000 square feet of space at the former Neiman Marcus store in Fort Worth’s Ridgmar Mall.

The moving forward of the Dallas Midtown project is a positive indicator for that section of Dallas where the fate of the former Valley View Center has been in question for years.

Plans call for new retail, upscale apartments, a luxury hotel, restaurants, and entertainment in the area. With the mall’s recent demolition, CBRE says it has seen a slight rise in rents in that area.

CBRE also notes that more retail is coming to downtown Frisco’s Rail District this fall to meet that city’s rapidly growing population.

INDUSTRIAL SECTOR SHOWS CONTINUED STRENGTH CBRE notes that the third quarter this year marks the 36th straight quarter for positive net absorption for the industrial market in Dallas-Fort Worth with almost 15.9 million square feet of demand posted in the first three quarters of the year. Demand in the third quarter was led by consumer goods, e-commerce, and third-party logistics companies, CBRE says.

Marketwide, the vacancy rate has dropped 41 basis points from the previous quarter to 5.6 percent. That was attributable in large part to large existing vacancies being taken and strong preleasing in delivered buildings. In the third quarter, CBRE says that more than 2.3 million square feet of vacant space in South Dallas was occupied by tenants, dropping the vacancy rate there by 243 basis points to 12.4 percent.

South Dallas accounted for 44 percent of all DFW industrial market absorption in the third quarter, CBRE says.

Projects under construction were 27.5 million square feet of space in the third quarter, CBRE notes. Starts were up from the previous quarter from 5.3 million square feet to 9.3 million square feet in the third quarter.

Deliveries totaled 5.2 million square feet with a pre-lease rate of 68.6 percent, CBRE says.

CBRE says that despite reports of global economic cooling, the Dallas-Fort Worth economy remains strong.—LM

MONTHS ON MARKET (CLASS A 1000K SF BUILT SINCE 2005)

MONTHS ON MARKET STABLE, SUGGESTING DEMAND FOR MODERN OFFICE SPACE WILL REMAIN STRONG Office vacancy has decreased considerably through this cycle. As of the third quarter, Class A vacancy averaged 20.6 percent in Dallas.

For some of the submarkets seeing significant new development, this rate is even lower. Uptown, Las Colinas, and Central Expressway have Class A vacancy in the midteens, with Preston Center coming in at sub-10 percent.

One important market driver is that these rates have been stable for several years at this point in the cycle. A byproduct of this “tightness” is that the time space sits on the market for lease has declined As we have reported in the

past, some of Dallas’ space built in the 1980s and 1990s is functionally obsolete by today’s tenant standards—and sits unleased for extended periods.

Modern space, however, is in high demand. Larger Class A buildings, developed since 2005, have space on the market available for lease averaging just 12 months, with popular submarkets that have seen significant new development at 7 to 10 months.

While higher than 2008 due to the new development taking place, months on market has been very stable the last few years, even as new projects have delivered in these submarkets. —LM

SOURCE: JLL

Across the office, retail, and industrial sectors in DallasFort Worth, there are positive indicators that North Texas is still firing on all cylinders, according to market research released by real estate services and investment firm CBRE. In the office sector, for example, CBRE says the trend of large relocations has become commonplace, with unprecedented movement into North Texas in the past 10 years. Take Uber’s recent announcement that it is moving into The Epic development in Deep Ellum, for example.

Initially taking 167,000 square feet of space, the transportation tech company eventually will occupy 450,000 square feet of space in the mixed-use development. It will be Uber’s second-largest campus outside the company’s headquarters in San Francisco. CBRE notes that with companies such as Toyota North America, McKesson, and Sunoco—among others— choosing to make North Texas home in recent years, the trend should continue.

CBRE notes that Dallas-Fort Worth has seen more than 31 million square feet of positive absorption in the office sector since 2009.

Office building construction also is on the uptick in Q3 of 2019, CBRE notes, with 25 buildings being built in the region.

New construction consists of 5,405,110 square feet of new office space with a pre-leased rate of 22 percent. That’s the largest the construction pipeline has been since the third quarter of 2017, CBRE says.

Class A office space again drove the positive absorption of space in Dallas-Fort Worth for the sixth consecutive quarter with 506,989 square feet, CBRE says.

OFFICE

TALENT ATTRACTION

STUDY: DALLAS-FORT WORTH HAS WHAT IT TAKES TO ATTRACT MILLENNIALS Analysis of 2017 U.S. Census data illustrates that migration patterns of millennials are being driven by job opportunities, aff ordable housing, and quality of life.

That’s according to a Snapshot from JLL, which says that DallasFort Worth ranks No. 1 out of all cities examined for the study, while Texas was the second-ranked state behind Washington.

JLL reports that Texas and the DFW area have created a significant number of jobs, with DFW seeing fi ve-year job growth at 23 percent.

Since 2010, the Dallas metro has added more than 900,000 jobs.

Career opportunities are crucial, but they’re not the only part of the millennial migration formula.

JLL says aff ordability directly

aff ects quality of life and an area’s “livability.” Texas and DFW are directly cited as having major advantages because of “their dynamic economies that drive above-average incomes.”

The average millennial household income for the DFW metro is $80,300, while the income goes up to $137,700 in San Jose and is as low as $66,700 in Memphis.

Despite DFW having an average household income, JLL says millennials in Texas have an advantage of up to $9,400 in spending power over the national average, after it accounted for the cost of living.

Texas and DFW’s lower cost of living is a draw for millennials seeking to move up in the workforce.—LM

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F FOUNDATIONS INNOVATION

FORT WORTH’S NEAR SOUTHSIDE PREPS AS MEDICAL, INNOVATION HUB Earlier this year, Dallas Innovates reported on plans Fort Worth leaders have for a first-of-itskind medical innovation district south of downtown, an ambitious undertaking that could attract medical-related enterprises to the city and potentially could become an innovation hub. A recent JLL report shows just how much the Near Southside has grown over the years—with the potential to become a major medical hub.

The city’s plan would connect existing medical institutions and organizations with startups and incubators with hopes to attract thousands of additional healthcare and technology-related jobs to the area, according to JLL’s report.

The Near Southside is already home to major healthcare centers such as Cook Children’s Healthcare System, Texas Health Harris Methodist, Baylor Scott & White, and Medical City Fort Worth.

In the report, JLL examines the history and future of the 1,400-

acre area. JLL refers to the Fort Worth district as “an emerging mixed-use district” where some of the city’s newest retail, office, and multifamily housing projects are located. The area has roughly 30,000 people employed within its boundaries, making it the secondlargest employment center in Tarrant County outside of downtown Fort Worth.

The Near Southside area was first developed in the early 1900s

in the area north of the Fairmount residential neighborhood. A nonprofit, member-funded organization called Near Southside Inc. was formed in 1995 to look after the area’s development.

The nonprofit also manages Tax Increment Financing (TIF) District No. 4, which was created in 1997 to help with revitalization efforts.

In the ensuing years, the Near Southside has seen major economic growth. The district’s taxable value

was $229.7 million in 1997 and $729.3 million in 2017, according to JLL. The district is projected to have increased its base value by just over 350 percent to over $1 billion by fiscal year 2024.

Infrastructure in the area has been improved with the 2014 retrofit of West Rosedale Street from a six-lane road to a four-lane street with bike lanes, on-street parking, and pedestrian improvements. An $8.5-million reconstruction of South Main Street also happened last year.

The Hemphill-Lamar Connector, a $53-million tunnel under Interstate 30 with rail lines providing another downtown route, is scheduled to open in 2020.

Housing in the area has also seen growth in recent years with roughly 2,000 multifamily units having been built since 2000 and three more currently under construction. On top of this, an additional 300 units have been proposed, including a 10-story mixed-use project.—LM

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PERFECT IS CLOSER THAN YOU THINK. Your perfect start. And it starts in Southlake. Perfectly positioned in the heart of the Dallas-Fort Worth Metroplex and just minutes from DFW International Airport, Southlake is your gateway to the world. Built for visionaries, decades of quality-focused development have resulted in a town known for excellence in business, education and community.

The city has more than 4.3 million square feet of office space, nearly 800 acres of undeveloped non-residential land and 4.4 million square feet of retail space waiting to be transformed by you. We invite you to set your sights on Southlake and make our perfect place yours.

Perfect is closer than you think. SelectSouthlake.com SOUTHLAKE ECONOMIC DEVELOPMENT • 817-748-8039 • ECONDEV@CITYOFSOUTHLAKE.COM

B BUILDING TOMORROW TOGETHER

TECH IN TEXAS

“These days all companies are technology companies,” is becoming a common adage in business conversations—and it’s certainly true in Dallas-Fort Worth.

A recent recruitment trip to San Francisco with my DRC colleague Gloria Salinas further solidified Dallas as a tech-friendly hub.

We joined “Tech in Texas,” a recruitment event in downtown San Francisco for highgrowth tech startups looking to grow in Texas. The event took place the same August evening the City of Dallas approved an incentive package for San Francisco-based Uber Technologies, Inc. to grow 3,000 jobs in Downtown Dallas within the next three years.

The event hosted a panel of startups that recently relocated or opened regional offices in Texas cities, including Fundbox, a fintech company that recently expanded into Plano.

At the event, it was evident and even more apparent that the Dallas region offers the high-demand digital workforce that highgrowth tech startups require in order to successfully scale their businesses rapidly. Rapid

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SAN FRANCISCO STARTUPS LOOK TO DALLAS REGION FOR COMPETITIVE ADVANTAGES

growth for startups usually means adding up to 100 employees in six months to a year and several hundred or even a thousand employees within a couple of years.

Today, the Dallas region is home to more than 237,000 high-tech workers and 92,000 creative class workers. One main fact has continued to spur the growth rate of a hightech workforce and strong tech startup scene: Dallas is one of the most diverse economies in the nation.

BY MIKE ROSA Industry diversity appeals especially to SENIOR VICE PRESIDENT, ECONOMIC DEVELOPMENT, high-tech workers building a career because DALLAS REGIONAL CHAMBER it creates a wide variety of job opportunities.

In DFW, the growth rate among app and software developers and network support workers has outpaced the rest of the area’s healthy workforce growth. Consequently, that talent pool attracts software and app development companies who want to be near current and prospective clients to leverage their data, software needs, and potential.

The panelists shared their struggles of scaling with high business costs, such as real estate and salary demands, and hiring and retaining talent in San Francisco’s competitive tech scene. Those struggles have ultimately left an opening for Texas and our region.

Basile Senesi, head of sales and operations at Fundbox, said every startup in the Bay Area strives to be a choice employer and retain employees, but it’s difficult to maintain growth in a competitive market.

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B BUILDING TOMORROW TOGETHER Senesi said the Bay Area is reaching the point of discomfort for employees’ quality of life. “At some point, you have to look at your employees and ask, ‘Are you doing the best for them?’” he said.

The discussion moderator asked each of the three panelists to rank the top considerations that were important in the decision to relocate or open a second office. Their unanimous answer: the availability of talent at the prospective location and the ability to attract additional talent.

Senesi said startups must think seriously about where they want the company to be in five years, and consider the inability to scale, expand, and innovate in San Francisco.

The ratio of available candidates to high-tech job openings is more favorable in Dallas and the cost savings in real estate provide more opportunities, he said.

The DRC staff on hand echoed those sentiments in one-on-one discussions with San Francisco startups in the audience who came to hear about the relocation process and its benefits. We also had the chance to visit the office of a high-growth startup in Silicon Valley to encourage expansion in the Dallas region. We returned with an active project in the pipeline and the expectation of more to come.

WANT TO LEARN MORE ABOUT HOW TO GET INVOLVED IN BUILDING TOMORROW TOGETHER?

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Contact Mike Rosa, Senior Vice President, Economic Development, Dallas Regional Chamber 214-746-6735 | mrosa@dallaschamber.org

BUILDING TOMORROW TOGETHER The Dallas Regional Chamber’s economic development program, Building Tomorrow Together, provides organizations in DallasFort Worth with an accelerated investment opportunity that helps advance our region’s success. This additional investment made by more than 130 organizations, in addition to annual chamber membership dues, allows organizations to increase their support of our efforts to further economic prosperity throughout the region. This initiative funds efforts related to direct contact with corporations and location consultants examining the DFW region.

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RAYTHEON IS BUILDING A NEW ADVANCED MANUFACTURING FACILITY ON THE CAMPUS OF ITS SPACE AND AIRBORNE SYSTEMS HEADQUARTERS IN MCKINNEY. RENDERING: RAYTHEON

THE CRANE REPORT

Fall 2019

Influences such as costs and labor continue to have an impact on construction in all sectors across Dallas-Fort Worth.

Commercial office buildings increasingly are becoming a part of a community’s fabric, says Zach Edwards, principal at the Dallas-based global design and architecture firm Gensler. Multifamily developers work to keep up with the technological demands of the modern tenant, and industrial projects are dealing with raw materials and labor that are in short supply.

Maps for the office and industrial markets are provided by Transwestern. Data for the multifamily market is provided by Axiometrics, a RealPage company.

ON-TH E-G RO U N D I N SI G H TS

OFFICE

INDUSTRIAL

MULTIFAMILY

ZACH EDWARDS

JEREMY MCGOWN

KURT GRIFFIN

DREW KILE

Principal, Gensler

Senior Vice President, JLL

“The mobility and autonomy desired by today’s workforce is changing the dynamics of how, where, and when we work. Commercial office buildings must see themselves as part of the urban fabric, not just what is within their four walls; but connecting to and contributing to the community amenities and tenant experience.”

“Office construction is doing its best to keep up with the demand for tech amenities by today’s tenants. Wi-Fi capabilities throughout the common areas (indoor and outdoor), on-demand eating options that rely on technology, and fun tech toys like golf simulators are becoming much more common.”

Executive Managing Director, Cushman & Wakefield

Senior Managing Director, Marcus & Millichap

“As our population expands, we’re experiencing record levels of construction and growing demand, especially for warehouse/distribution space. Building costs are increasing because raw materials and labor are in short supply. Meanwhile, there’s a shortage of available land for development.”

“Developers are constantly working to provide differentiated product, and they are having to do it with sites that are becoming more and more challenging.

With many of the ‘easy’ sites gone, developers are having to be more creative with site layouts and building design to make deals work.

Beyond that, incorporating the newest amenities and finishes is a must.”

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THE CRANE REPORT:

OFFICE

RAYZOR RANCH MEDICAL PARK

DUCHESS OFFICE PARK

ANNOUNCED + UNDER CONSTRUCTION

RIVER WALK MEDICAL PARK IV

ANNOUNCED DEVELOPMENTS

RIVER WALK MEDICAL PARK IV LAKESIDE CROSSING

STONEGLEN OFFICE BUILDING

DIAMOND CLUB AT WILLOW SPRINGS

CHARLES SCHWAB CORPORATE CAMPUS

CHAPEL PHASE 1 CROSSING KRIYA OFFICE BUIDLING CARILLON COURT SOUTHLAKE MEDICAL OFFICES

3

6

THE TRAD HEADQUA FREEPOR COMMON

THE BRAUN ON BELT LINE

HILLWOOD COMMONS II

LAS COLINAS CORPORATE CENTER III USCIS BUILDING AMERICAN AIRLINES CORPORATE CAMPUS VIRIDIAN TOWN CENTER BUILDING I

THE OFFICES AT HAMPDEN WOODS

THE OAKS AT WEATHERFORD MUSEUM PLACE III

FAIRWAY CENTRE

SHOPS AT HUDSON OAKS

5 BROOKHOLLOW COMMONS II

LOCKE TRIANGLE

WATERSIDE 107-113 LARSON LANE

OVERTON CENTRE TOWER III

CHISHOLM TRAIL PROFESSIONAL PLAZA

CHISHOLM TRAIL PROFESSIONAL CENTER

BARDIN ROAD CENTER PHASE II

WADDELL EXCAVATING

MANSFIELD WEBB AND LAFRONTERA TRAIL

BROAD STREET PLAZA

MANSFIELD MEDICAL OFFICE

2

1

THE EPIC

SIZE: 470,000 square feet LOCATION: Dallas DEVELOPER: Westdale Real Estate Investment and Management DETAILS: Construction on the second tower of The Epic development in Deep Ellum is scheduled to begin the fourth quarter this year. Roughly 450,000 square feet of the building is being leased by tech giant Uber, which will house about 3,000 workers.

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GRANITE PARK 6

SIZE: 415,000 square feet LOCATION: Plano DEVELOPER: Granite Properties DETAILS: The new 18-story building will be the tallest structure yet in Granite Park and will be built on State Highway 121 just east of the Dallas North Tollway. Set for construction to start in early 2020, the building is designed

by Dallas architects BOKA Powell and HKS.

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UNDER CONSTRUCTION 380 COMMONS PLAYFUL CORP HEADQUARTERS COBB FARM WEST OFFICE PARK FRISCO MEDICAL ELDORADO PAVILION STONEBRIDGE OFFICE CONDOS MEDICAL CONDOS FAIRVIEW LEGACY MCKINNEY RANCH EXECUTIVE VILLAGE PROFESSIONAL CENTER PARK STONEBROOK MONARCH STEWART CREEK CITY OFFICE OFFICE CENTER V INDEPENDENCE PKWY ALLEN MEDICAL OFFICE BUILDING WADE PARK ANGEL & OFFICE/RETAIL ALLEN PLACE NATIONAL EXCHANGE THE MEDICAL CENTER STAR MUSTANG ALLEN DUKE BRIDGES V WATTERS SQUARE & MAIN CREEK STONEBRIAR NORTH COMMONS LEGACY 1000 CENTRAL AT PRESTON PARC II WATTERS CREEK CENTRE PLAZA AT THE COLONY LEGACY BUSINESS PARK CHASE OAKS PROFESSIONAL CONDOS PLAZA THE REALM AT LEGACY PARK C CASTLE HILLS LEGACY WINDHAVEN TWO LEGACY CENTRAL 5 PLACE ONE WEST THE OFFICES AT WILLOW BEND CROWN INTERNATIONAL CENTRE BUSINESS PARK HERITAGE CREEKSIDE TOWERS

4

2

OAKBEND CENTRE

NORTH DALLAS MEDICAL CENTER PHASE II

THE RIDGE AT 121 TRINITY MILLS BENT TREE URBAN VILLAGE AT THE DE GROUP PARKWAY ARTERS RT NS POINT THE INWOOD FOUR WEST II LINCOLN AT ALPHA WEST CENTRE

HIDDEN RIDGE

WEST LOVE BAYLOR SCOTT & WHITE MEDICAL CENTER MOB III

THE DISTRICT

N PLANO RD & ARAPAHOE

VILLAGE ON THE PARKWAY

INFINITE PROSPECTS MIDTOWN MEDICAL TOWER OFFICE TOWER IN THE GLEN AT PRESTON HOLLOW HILLTOP PLAZA

THREE HICKORY CENTRE PIONEER NATURAL RESOURCES

7 CITYLINE

THE POINTS THE GRID AT WATERVIEW

KE ANDREWS

PHASE ONE OFFICE CONVERSION MEADOW GREEN MEDICAL CENTER

1

GATEWAY OFFICE TOWER THE UNION

BAYLOR, SCOTT & WHITE HEALTH THE EPIC DEEP ELLUM THE DREVER

5

MAYFIELD GROVES

6

SILVERLAKE CROSSINGS

SIZE: 150,000 square feet LOCATION: Grand Prairie DEVELOPER: Cawley Partners DETAILS: The new office building will be part of the Mayfield Groves mixed-use project from Cawley Partners on State Highway 161 at Forum Drive.

SWC SH 205 & FM 549

BOOKMARK CENTER

THE FAIRMOUNT BUILDING

HQ CENTER

OGH MEDICAL CENTRE ROWLETT

WEIR’S PLAZA

THE DESIGN DISTRICT TOWER PARKLAND KNIGHT

4

SIZE: 90,000 square feet LOCATION: Plano DEVELOPER: Thakkar Developers and Heady Investments DETAILS: Ground has been broken on the four-story office building that will be a major element of the Mustang Square mixed-used development.

PHYSICIANS SPECIALTY CENTER SUNNYVALE MEDICAL CENTER

SOLA ON LAMAR DAVIS STREET MARKET OFFICE PARK

REDBIRD OFFICE

SIZE: 80,000 square feet LOCATION: Grapevine DEVELOPER: NewcrestImage DETAILS: Construction has started on the four-floor office building within the SilverLake Crossings masterplanned development. NewcrestImage’s headquarters will occupy one floor of the building. Completion on the build, about two miles north of Dallas Fort Worth International Airport, is expected in summer 2020.

● ANNOUNCED ● UNDER CONSTRUCTION MAP COURTESY OF TRANSWESTERN

3

CARILLON

SIZE: 96,000 square feet LOCATION: Southlake DEVELOPER: John Terrell and Hunter Chase Construction & Development DETAILS: The proposed 96,000-square-foot office building would be in the Carillon Parc mixed-use development along the State Highway 114 frontage road in Southlake as part of a larger mixed-used development.

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US 380 BUSINESS PARK BLDGS 3-5

TYSON FOODS

THE CRANE REPORT:

INDUSTRIAL

GATEWAY BUSINESS PARK AIP EAGLE COURT

ANNOUNCED + UNDER CONSTRUCTION

SPEEDWAY LOGISTICS CROSSING ALLIANCE NORTHPORT ALLIANCE CENTER NORTH 3

ANNOUNCED PROJECTS

WESTPORT 11

DFW NORTH IV

NORTH PORT 4

LAKESIDE RANCH 1001

WESTPORT LOGISTICS

KROGER’S NEW CUSTOMER FULFILLMENT CENTER IN DALLAS WILL BE SIMILAR TO THIS ONE IN MONROE, OHIO

MUSTANG PARK LOGISTICS CENTER

FOSSIL CREEK BLVD PHASE II INTERNATIONAL AVIATION COMPOSITES

PASSPORT PAR

PEDREGAL

PARC NORTH

PAK QUALITY FOODS OAKDALE LOGISTICS CENTER

MARK IV COMMERCE PARK

WILDL BLDGS

GENERAL MOTORS ASSEMBLY PLANT EXPANSION

LIBE MOUN PARK TWENTY THREE-SIXTY

MARKUM BUSINESS PARK

FIRST ARLINGTON COMMERCE CENTER III

KROGER

SIZE: 350,000 square feet LOCATION: Dallas, just north of Lancaster DETAILS: Kroger and Ocado have announced plans to build a 350,000-squarefoot automated customer fulfillment center that will have digital and robotic capabilities. It’s expected to create up to 400 jobs.

2

HOME DEPO

360 COMMERCE PARK

CHAMPIONS BUSINESS PARK

1

HOME DEP GSW 77

MOUSER ELECTRONICS EXPANSION

● ANNOUNCED ● UNDER CONSTRUCTION MAP COURTESY OF TRANSWESTERN

KLEIN TOOLS EXPANSION

#12 LONG HORN

MIDLOTHIAN BUSINESS PARK 1

PANATTONI

SIZE: 159,405 square feet LOCATION: Farmers Branch DEVELOPER: Panattoni Development DETAILS: The California company has bought the land for a speculative industrial building on an 8.4-acre site at 1701 Valley View Lane. It’s near the intersection of LBJ Freeway and Interstate 35E.

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FIRST MOUNT DISTRIBUTIO

3

COWBOYS MERCHANDISING DISTRIBUTION CENTER

MCKINNEY INDUSTRIAL CENTER GARAGES OF TEXAS AT FRISCO CYRUSONE PHASE II & III

FIRST PARK 121

DFW VII DATA CENTER PHASE I

DIGITAL REALTY

VALWOOD CROSSROADS

2

NUTRIBIOTECH

CORE LOGISTICS CENTER HORIZON BUSINESS CENTER BUILD TO SUIT

RK SOHCO LAKESIDE VILLAGE III

GRAND LAKES COMMERCE CENTER EXETER BUCKNER

LIFE S 7-11

GOODYEAR DISTRIBUTION CENTER

POT GOODYEAR TIRE & RUBBER CO DISTRIBUTION CENTER

OT 2

STEELWAY INTERNATIONAL INC

ERTY PARK NTAIN CREEK

POINTSOUTH SOUTHFIELD PARK 35

TAIN CREEK ON CENTER

FIRST 20/35 LOGISTICS CENTER

SOUTHLINK II

1

MELTON TRUCK LINES

VISTAPRINT STONERIDGE

SUNRIDGE BUSINESS DUKE INTERMODAL III PARK TEXPORT LOGISTICS CENTER DALPORT TRADE CENTER CORE5 LOGISTICS CENTER AT BONNIE VIEW

OLLIE'S MIDPOINT LOGISTICS CENTER

DFW INLAND PORT I & II

DATA SOURCE: REAL ESTATE REVIEW RESEARCH / DALLAS REGIONAL CHAMBER / VARIOUS REAL ESTATE FIRMS

3

RAYTHEON

SIZE: 200,000 square feet LOCATION: McKinney DEVELOPER: KDC DETAILS: The defense contractor is building a new advanced manufacturing facility on the campus of its Space and Airborne Systems headquarters in McKinney. The McKinney operation specializes in intelligence, surveillance, and reconnaissance systems. Completion is expected in late 2020. Raytheon is the city’s largest employer with more than 3,000 employees. The new facility will create 500 new high-tech jobs.

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THE CRANE REPORT:

PALLADIUM DENTON

MULTIFAMILY

DISCOVERY PARK

LIVE OAK

THE MAJESTIC ON M

13 UNDERWOOD

ANNOUNCED + UNDER CONSTRUCTION

MILLENN OXFORD AT LAKE VIEW

ANNOUNCED DEVELOPMENTS 1

ALTA CHAMPIONS CIRCLE

● ANNOUNCED ● UNDER CONSTRUCTION

PRESIDIUM AT REVELSTOKE

THE BYRON

SIZE: 408 units LOCATION: Fort Worth DEVELOPER: Presidium DETAILS: Work is underway on the luxury residential community in Alliance Town Center in north Fort Worth. It will be a threestory, 466,515-square-foot development that will incorporate smart technology into its units, allowing residents to control temperature, access, and lighting in their homes from wireless devices.

TH JEFFERSON SILVERLAKE ENCLAVE AT THE PARK

1 TACARA VILLAGE

THE PRESERVE AT ELAN THE LANDING AT CROSS CREEK

CORTLAND RIVERSIDE

GRAND ON BEACH

THE MILLENNIUM AT HOMETOWN

TRINITY UNION

PROVISION AT NORTH VALENTINE

THE VIEW OF FORT WORTH I THE UNION AT RIVER EAST I THE PALMER

SIENNA HILLS PALLADIUM

4

ELAN CROCKETT ROW ALEXAN SUMMIT ROSEDALE

THE PRESIDIO AT RIVER EAST JEFFERSON RIVER EAST ENCORE PANTHER ISLAND 311 NICHOLS STREET MAGNOLIA

RIVERSIDE PLACE

MAGNOLIA AT UNIVERSITY HEIGHTS ALTA WATERSIDE

UNDER CONSTRUCTION

THE TERRACE

THE QUADRANGLES ON TWENTY

AVILL HERITA

TAVOLO PARK THE DYLAN

2

THE ACADEMIC

SIZE: 365 units DEVELOPER: Leon Capital Group LOCATION: Dallas DETAILS: Construction has begun on the development on the site of the former Dallas Independent School District headquarters complex on Ross Avenue east of downtown.

Included in the project’s design and engineering team are Architecture Demarest, Urban Structures, Basharkhah Engineering, Spiars Engineering, and DesignSixTwo.

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AURA 3FIFTY-ONE THE TRAILS AT SUMMER CREEK

DATA SOURCE: REALPAGE

3

THE MARGO

SIZE: 358 units LOCATION: Frisco DEVELOPER: StreetLights Residential DETAILS: Ground has been broken on the third phase of The Canals at Grand Park. It’s a fourstory development. Architects with StreetLights Creative Studio and LRK worked on the project. SLR Texas Construction is general contractor and Ink + Oro designed leasing and amenity spaces.

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MANSIONS LAKE RID

PROVISIONS AT MELISSA

MCKINNEY THE CLIFFS AT RIDGE CREEK

NEWMAN VILLAGE EDISON ADLEY AT AT FRISCO THE CRAIG RANCH

3 CANTERRA

NIUM PLACE

THE KINSTEAD

FOUNDRY THE KILBY THE ATHERTON 7005 SOUTH DOMAIN AT CUSTER ROAD THE GATE

JEFFERSON AT THE GATE

CITRON ALLEN STATION 729 JUNCTION DRIVE

CIRCA FRISCO

STAR HOUSE

MONTGOMERY RIDGE I

ALTA 289

TOWER BAY LOFTS

LIVE GRANDSCAPE LAKEYARD DISTRICT

LVL29

ALEXAN LEGACY CENTRAL I

THOUSAND OAKS AT STAG'S LEAP

1980 LENOX EAST TX-121 CASTLE BUSINESS HILLS

MORADA PLANO CITYLINE PARK

SOCIETY 190

HEBRON 121 STATION V

FRANKFORD STATION LOFTS

HE ASHER

SEVENTY8 AND WESTGATE

JEFFERSON VANTAGE ELAN AMLI ADDISON ADDISON GROVE

SWITCHYARD

WATERWALK NORTHSIDE AT THE WOODLANDS

HARPERS BAY AT THE SOUND OLYMPUS ON MAIN MUSTANG STATION II

JEFFERSON PROMENADE JEFFERSON EASTSHORE THE CAROLYN

EMBRY URBAN LOFTS

AURA BLUFFVIEW

SHOREVIEW

MAIN STREET VILLAGE

THE JEFFERSON WEST LOVE II HUDSON

THE FLORENCE AT THE HARBOR THE TOWERS AT BAYSIDE

THE CROSSING BROADSTONE COLE AVENUE

JEFFERSON TEXAS PLAZA AMLI FOUNTAIN PLACE ALTA TRINITY GREEN MAGNOLIA OFF SYLVAN

HARMONY HILL II THE MANSIONS AT BAYSIDE

MODERA DALLAS MIDTOWN ELAN THE DOMINION AT MERCER CROSSING INWOOD

THE LUXE AT MERCER CROSSING

ONE90 FIREWHEEL

2

SKYLINE TRINITY 727 ZANG LOFTS

FITZHUGH URBAN FLATS ENCORE SWISS AVENUE NOVEL DEEP ELLUM AMELIA AT FARMERS MARKET THE CROSBY

THE PARC AT WINDMILL FARMS

BISHOP NORTH

LA AGE

PRAIRIE GATE CLARK RIDGE CANYON

S AT DGE ASPIRE AT PRESTON TRAIL

PALLADIUM GLENN HEIGHTS

4 THE MARK AT MIDLOTHIAN I

DOWNTOWN FORT WORTH

SIZE: 310 units LOCATON: Fort Worth THE MARK ONTranswestern 287 DEVELOPER: Development Co. and MWG Enterprises DETAILS: City staff in PARK FortPLACE Worth has presented a tax incentive package that would make the 19-story high-rise development at 1000 Weatherford St. feasible. The site is near the Trinity River and the Pier 1 headquarters building.

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FACTORY SIX•03 West End Innovation District

FOR LEASING INFORMATION 972.731.2300 FACTORYSIX03.COM

graniteprop.com

S SCORECARD

LG ELECTRONICS’ DISTRIBUTION CENTER IN FORT WORTH IS MORE THAN 1 MILLION SQUARE FEET.

SCORECARD

Fall 2019

Leasing demand continues to show strength in the office and industrial sectors, with companies moving within North Texas or entering the market. In both office and industrial, technology is an important factor for potential tenants as they seek better ways to communicate, do their work, and grow their businesses. E-commerce fulfillment is continuing to expand its presence in North Texas, according to CBRE Senior Vice President Steve Berger. Maps are provided by CBRE

BY LANCE MURRAY

ON-T H E-G RO U N D I N SI G H TS

OFFICE

STEVE EVERBACH

President, Central Region, Colliers International “Technologically, tenants are seeking connectivity— reliable, fast, redundant internet service in the space and throughout the common areas of the building—as well as enhanced abilities to communicate and collaborate, and quality of life, convenience, and efficiency elements.”

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INDUSTRIAL

LINDSAY WILSON

STEVE BERGER

CHARLES BREWER

“First and foremost, our clients want reliable, ubiquitous, and user friendly collaborative technology to enable their employees to do their best work, wherever they are. They want seamless integration between their smart phones and their office networks, eliminating those frustrating ‘friction points’ that occur as we move though our day on different networks and in different workspaces.”

“Advancement and broader adoption in the use of technology continues to feed the demand for industrial space within DFW. In particular, e-commerce fulfillment space is rapidly expanding as the adoption of mobile platform shopping proliferates and customers are more comfortable shopping for a wider array of products to be delivered to their doorstep.”

“It’s predicted that machines and automation will continue the push to replace warehouse personnel with robots in substantial numbers within the next five years.

With Amazon leading the way in this trend in DFW, we are already seeing clear heights of newly constructed buildings spanning to 40 feet high.”

President, Corgan

Senior Vice President, CBRE’s Industrial & Logistics practice

Senior Associate, Industrial Services, Transwestern

D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 2 7

S SCORECARD

INDUSTRIAL LEASES

1

4 3

52067,860 SF 67,861176,000 SF 176,001362,670 SF

5

362,671920,275 SF

2

920,2762,307,591 SF

MAP COURTESY OF CBRE RESEARCH

LARGEST INDUSTRIAL LEASES

1

LG ELECTRONICS

SIZE: 1.1 million square feet LOCATION: Fort Worth TENANT REPS: Craig Jones, Evan English, George Curry, Melissa Holland of JLL DETAILS: The electronics company has leased the space at 14901 N. Beach St. in Fort Worth for a major distribution center. LG Electronics is a Korean electronics manufacturer and retailer.

2

ICU MEDICAL INC.

SIZE: 610,806 square feet LOCATION: Lancaster TENANT REPS: Caleb McCoy, Michael Haggar, Mitchell Lundquist, and Ryan Hawkins of JLL DETAILS: San Clemente, Calif.based ICU Medical leased an entire warehouse at 2801 N. Houston School Road in Lancaster. The company has operations across the globe and develops, manufactures, and sells medical tech used in vascular therapy, oncology, and critical care.

3

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5

AT HOME

SIZE: 555,321 square feet LOCATION: Garland TENANT REP: Nathan Lawrence with CBRE DETAILS: The home decor retailer has renewed its lease for the space at 4040 Forest Lane in Garland.

4

SCHLÜTER-SYSTEMS

SIZE: 500,000 square feet LOCATION: Fort Worth TENANT REPS: Tom Pearson and Chris Teesdale of Colliers International LEASING AGENTS: Hillwood DETAILS: The global developer of innovative solutions for tile and stone installations has leased the space at Alliance Northport 1. The distribution center will serve central and southern states. It’s scheduled for completion in 2020 and should employ roughly 300 people.

LOCKHEED MARTIN

SIZE: 431,579 square feet LOCATION: Fort Worth DETAILS: Bethesda, Maryland-based Lockheed Martin Corp. signed a new 431,579-square-foot lease at the Fossil Creek Business Park in Fort Worth. Lockheed also fully leased 4501 New York Ave., a 175-536-squarefoot building.

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S SCORECARD

5

OFFICE LEASES

2 3

4

14014,684 SF 14,68542,252 SF

1

42,25388,520 SF 88,521205,000 SF 205,001535,731 SF

MAP COURTESY OF CBRE RESEARCH

LARGEST OFFICE LEASES

UBER ANNOUNCED IT WILL LEASE MORE THAN 600,000 SQUARE FEET IN TWO OFFICE TOWERS AT THE EPIC DEVELOPMENT IN DEEP ELLUM.

1

UBER

SIZE: 617,089 square feet LOCATION: Dallas DETAILS: The San Francisco-based tech giant announced it will take the space in two office towers at The Epic development in Deep Ellum. It will be the second-largest Uber campus outside its California headquarters.

Construction on the second tower, designed by Perkins+Will, will begin in the fourth quarter this year.

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2

SPLUNK

SIZE: 84,000 square feet LOCATION: Plano TENANT REPS: John Wolf, Armand Tiano Jr., Jim Graham, and Tyler Howarth of Newark Knight Frank LEASING AGENTS: Cushman & Wakefield DETAILS: The San Francisco-based business IT and data services firm has leased the office space in Plano’s Legacy business park in the Gateway at Legacy building on the Dallas North Tollway.

3

NCR CORP.

SIZE: 52,551 square feet LOCATION: Plano TENANT REP: Doug Carigan and the late Steve Thelen of JLL LEASING AGENTS: Doug Hanna and Tabitha Layne of Sunwest Real Estate Group DETAILS: NCR signed a 52,551-square-foot renewal for office space at Tennyson Office Center, a two-building office development totaling 250,000 square feet at 6100 and 6200 Tennyson Parkway.

4

REED SMITH

SIZE: 49,000 square feet LOCATION: Dallas TENANT REPS: Philip Leibow, Brooke Armstrong, and Scott Have of JLL LEASING AGENTS: Kelly Whaley and Hannah Waidmann of Harwood International DETAILS: The international law firm has leased 49,000 square feet of office space at Harwood No. 10 in the Harwood District.

5

CRITICAL START

SIZE: 33,115 square feet LOCATION: Plano TENANT REP: Dan Polanchyk of Henry S. Miller LEASING AGENTS: Doug Hanna and Tabitha Layne of Sunwest Real Estate Group DETAILS: The technology company signed the new lease at Tennyson Office Center, a two-building office development totaling 250,000 square feet at 6100 and 6200 Tennyson Parkway.

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F FEATURE

international influence VISIONARY DEVELOPERS from around the world have come to leave their signatures on the landscape of dallas-fort worth

LEGACY WEST

BY JIM FUQUAY

To make your mark on the wide-open North Texas skyline, where anything close to 100 years old is downright historic, does it help to hail from some of the oldest and most densely-populated of the world’s cities, or at least from beyond the U.S. border?

Some of the region’s most visible real estate projects have been driven by local developers

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with international roots. It’s hard to miss the colorful Omni Dallas Hotel downtown built by Jack Matthews, a Canadian who also revived the former Sears offices as South Side on Lamar. Uptown’s 18-block Harwood District, which is wrapping up its tenth office building, is the result of decades of planning by Gabriel BarbierMueller, from Geneva, Switzerland. Mehrdad Moayedi, who moved to Bedford from his native Tehran, Iran, as a teenager, brought back the Statler Hotel and is remaking Collin Creek Mall in Plano. Fehmi Karahan, from Istanbul, Turkey, has attracted a Who’s Who of the corporate world, such as Toyota Motor North America, JPMorgan Chase, and Boeing Global to his curated Legacy West development in Plano. He also now has a 2,500-acre Frisco project in the works. Mike Hoque, from

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PHOTO: MATTHEWS SOUTHWEST

F FEATURE

DALLAS HIGH SCHOOL

PHOTO: THE KARAHAN COMPANIES

Dhaka, Bangladesh, launched his restaurant company DRG Concepts in Dallas before buying the Adolphus Tower in 2015 and more recently putting together two big parcels on the south end of downtown Dallas, one for his New Park project in partnership with KDC, the big Dallas-based corporate developer.

These developers often express a fondness for restoring and repurposing older buildings. Mass transit frequently figures into their plans. They have a keen eye for the context of their projects, seeking to gain synergies from the varied amenities and assets of the surrounding built environment. And they uniformly pay homage to the boundless opportunities offered by the fourth-largest and fastest-growing metropolitan area in the United States.

“Dallas is such a young city” is a sentiment you hear over and over again. Even Matthews’ hometown of London, Ontario, is a bit older. But Tehran, Geneva, and Dhaka have been major cities for close to 1,000 years, while Istanbul and its predecessor, Constantinople, go back for some 3,000 years. Barbier-Mueller has told of reading the entry on “Tejas, also known as Texas,” from a 19th-century French encyclopedia that he owned. It included mention of head-high grasslands roamed by Comanches, but nary a word of a city called Dallas. He also found it interesting that barely a decade after John Neely Bryan founded Dallas on a bluff above the Trinity River in 1841, Napoleon III was engaging Georges-Eugène Haussmann to declare urban renewal on Paris’ medieval neighborhoods.

“One of my first deals was the 1530 Main St. Building, now known as the Joule Hotel. I noticed that Dallas was a car city, and I wanted to change that,” BarbierMueller says. “Coming from Switzerland where walkability and greenery are important, I applied the principles learned in Switzerland to each development we have in Dallas.”

“They are bringing that international perspective to urban development that is advancing the goal of interconnected neighborhoods,” Kourtny Garrett, CEO of Downtown Dallas Inc., says of Barbier-Mueller and the other developers featured here. “They understand and are proving the concept of walkability. Relying on the car is not going to be productive” in coming years, she says. That is a specific goal of Downtown Dallas Inc.’s 360 Plan, developed with the city in 2011 and updated in 2017, she says.

Matthews agrees progress is being made. “When I looked at Dallas 20 years ago, at downtown and Deep Ellum, it was islands of good development, with parking and junk in between,” he says. “Today, it’s pretty much all joined up.”

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But there’s still plenty of land to be had.

Hoque stands at the south-facing window of Hoque Global’s office on the 56th floor of the Comerica Bank Tower at 1717 Main St. in Dallas and points to 20 acres in contiguous blocks he has assembled behind Dallas City Hall next to Dallas Farmers Market. How could that much property occupied by little more than parking lots and light-industrial buildings be right on the edge of downtown?

“I come from Bangladesh. It is the size of New Jersey and Pennsylvania put together,” he says.

But it has 163 million people. That’s half the U.S. population. Hoque’s hometown of Dhaka, with close to 20 million residents, packs about 60,000 people into each square mile in the city’s boundaries. Compare that to Dallas’ 3,645 people per square mile in the city proper. With such incredible density—Bangladesh is the eighth-most densely-populated nation in the world and Dhaka the third-most densely-populated city—“you can see how walkability works,” Hoque says. That’s extreme, but Tehran and Geneva each have about 30,000 residents per square mile. Istanbul checks in at 24,000 people per square mile, even though it spreads across nearly 600 square miles.

It’s not at all surprising that these five international developers’ North Texas projects manifest the denser, mixed-use approach which is simply a fact of life in their home countries and which is increasingly accepted in North Texas. And they generally agree that municipalities are accommodating the trend. Brad Bell, who heads the School of Architecture at the University of Texas at Arlington, says the city of Dallas made a smart move when it put its performing arts facilities in a downtown Arts District, and private commercial development is going a similar direction by concentrating mixed uses of residential, retail, office, and recreational pursuits.

“Density, done well, with the idea you have the right amenities of parks and gathering spaces, using opposites to interact with one another, is a lot more popular” than it was previously in North Texas, Bell says. Add to that increasing public transportation options, the creation of downtown housing that workers can afford, knowledgeable design that takes advantage of what Bell calls “adjacencies and proximities” of features that balance work and leisure activities, and the stage is set for an interesting future. It almost sounds, you might say, international.

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F FEATURE

JACK MATTHEWS London (Ontario), Canada

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PHOTO: MATTHEWS SOUTHWEST

F FEATURE

OMNI HOTEL DALLAS

In the 1980s, Jack Matthews had already survived something of a trial-by-fire, putting his college studies on hold to help his father’s construction firm weather the sky-high interest rates of the previous decade.

PHOTO: MATTHEWS SOUTHWEST

His solution to the resulting slowdown was for the firm to create its own developments on the land it owned instead of depending on someone else, and in the process he discovered he preferred development to construction. In 1988, he was tasked with expanding Matthews Group to either Southern California, South Florida, or North Texas. Students of the Texas economy will recognize the late 80s as an agonizing time, when the energy bust that started in 1986 eventually took down nine of the state’s ten largest banks and decimated real estate as well.

“Dallas was so beat up at the time,” Matthews says. He figured that “if we’re going to invest someplace,” go where there’s plenty of upside, settling on Lewisville and setting up Matthews Southwest. By 1994, he had moved down to live here fulltime.

In 1997, Matthews bought the old Sears Roebuck building on the south side of downtown Dallas, sparking renewal in a neglected corner of the city. Everybody told him it was a bad part of town; lenders were wary of the area. But that might just have been an example of what Matthews says can be the upside to being an

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outsider to the market. “It’s a strength in that you come in without historical blinders,” he says.

“Sears was a huge building. He saw multifamily as the anchor for a multi-use project,” Garrett says. Noting the worries about crime in the area, Matthews made quite a move when he donated nearby land to build a new headquarters for the Dallas Police Department. After the Sears building opened in 2000 as South Side on Lamar, it was followed by night clubs, restaurants, the NYLO Hotel (now Canvas Hotel), and apartments. Different for Dallas, maybe, but not for Matthews.

“Jack does it better than most. I really respect the work he has done,” Brad Bell says. “As I understand it, there was a clear understanding” when Matthews finally won the competition to build the Omni Dallas Hotel next to the Dallas Convention Center, a prime consideration was workers “in the service groups, and the proximity to housing and public transportation.”

In the Canadian province of Ontario, where London sits about halfway between Detroit and Cleveland on the north shore of Lake Erie, “we had developed office/retail/apartments.

All I was trying to do was give people a taste of downtown in areas that didn’t have a downtown,” Matthews says. “People want different things. You need different populations to keep restaurants busy, fill a hotel, fill apartments.

Lots of cities went away from that, keeping residential separate from commercial.”

But mixed-use, “done right in the right spot,” bridges all those activities to create livability.

The need for affordable housing, also termed “workforce” housing, often comes with government red tape, but that’s not an issue for Matthews Southwest.

“When you grow up in Canada, you get used to working through bureaucracy and getting things done slowly. We don’t have any problem with that. We like bringing in the cities as true partners,” he says.

The finishing touch on South Side on Lamar could be a high-speed rail station. Matthews is an investor in Texas Central Railway, a private venture that aims to build a 200-mph bullet train between Dallas and Houston. “It’s a perfect addition” to the downtown’s south side, Matthews says of the 60 acres designated for the rail station.

“It drops 15,000 to 50,000 people, depending on the day,” into the growing south end of downtown Dallas.

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F FEATURE

Fehmi Karahan Istanbul, Turkey

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PHOTO: THE KARAHAN COMPANIES

F FEATURE

LEGACY WEST

How’s this for a report card?

Name: Legacy West in Plano Evaluation: “The most successful real estate development in the history of North Texas.”

PHOTO : LANCE MURRAY

That was longtime Dallas Morning News real estate reporter Steve Brown’s assessment last year of Fehmi Karahan’s $3-billion, 250-acre mixed-use project that launched in 2014. What was forecast as a 10-year job bolted out of the gate and stampeded to a finish in barely four years. In that time, Toyota, JPMorgan Chase, Boeing, and others built corporate offices with thousands of employees, hotels accommodated them, and apartments, retail, and restaurants filled the rest.

A quick stroll through the retail section of Legacy West offers a village-like setting that just feels right. Karahan declined an interview for this article, but it would be unthinkable not to include him. This summary of his accomplishments relies on past interviews, including one with us in April, and on comments by other real estate professionals.

Karahan left his native Istanbul to attend Columbia University on scholarship in 1978 and after that moved to Texas, which he found quintessentially American. Playing weekend soccer, he met a fellow countryman who worked in real estate and went to work for him in 1982.

By 1984 he struck out on his own and did his first deal—an 8,000-squarefoot strip center on Webb Chapel Road. In 1993, he hit pay dirt with MacArthur Crossing in Irving, a retail center in what at the time was not considered a good location.

“Early on, I learned what deals to make and what deals not to make,” he told us in April, and it’s a selectivity that’s served him well.

Karahan leaped into the upper levels of the business in 1999 when he bought land in Electronic Data System’s vast Legacy corporate campus in Plano. That led

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to the Legacy Town Center mixed-use development that includes The Shops at Legacy, a project of which he’s proud.

“It’s not an ordinary shopping center. It’s not an ordinary real estate development. It has heart, it has soul, it has character. It’s a gathering place.” That was followed by Legacy West, and now, Karahan has embarked on his largest development yet.

With Hunt Realty Partners, he will develop a 2,554-acre former ranch owned by the Fields family in north Frisco. The mixed-use project has already attracted the new headquarters of PGA of America, which will also bring high-profile golf tournaments to the area. The golf connection is appropriate, because back in April, Karahan said that Legacy West was like winning the Masters, and what does one do after that? “Keep playing,” he said.

“What attracted me [to the Fields project] was the sheer size—2,600 acres in a strategic location,” he says. “I felt that this is an incredible opportunity to create something significant.”

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F FEATURE

Mehrdad Moayedi Tehran, Iran

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PHOTO: MICHAEL SAMPLES

F FEATURE

THE STATLER

Ask Mehrdad Moayedi how he got into homebuilding and he has a quick answer. Three answers, really: Herman Smith, Don Horton, Larry Cole.

PHOTO COURTESY OF D MAGAZINE

In Tarrant County, those three are about as close to residential real estate royalty as it gets. Smith developed Fort Worth’s Wedgwood neighborhood and served as president of the National Association of Home Builders; Horton founded Arlington-based D.R. Horton Co., today the nation’s largest homebuilder; and Cole, a former Dallas Cowboys defensive lineman, built hundreds of high-end homes. Moayedi learned from them all.

He arrived in Bedford in 1976 to live with guardians while his mother and stepfather, an American Air Force helicopter pilot, remained overseas. But when the Iranian Revolution arrived in 1979, “we lost everything,” he says. “That’s the best motivation.” Moayedi quit the University of Texas at Arlington and got a job landscaping. It took him just days to decide he could run a landscaping business, which he quickly did and later expanded into brick contracting. Contacts with the homebuilders followed.

“Herman was instrumental in helping me get started,” he says. Moayedi had attended Bell High School in Bedford while Smith was active in the school’s alumni association, starting a personal relationship that continued until Smith’s death in 1994. “I did landscaping and hardscaping and worked on Herman’s houses” as well as doing work for Cole’s splashy Tara development in Colleyville.

And he worked on residential projects for D.R. Horton, which Don Horton and his brother, Terry Horton, had launched in 1978. Moayedi remembers Terry Horton picking him up to go to church.

When Moayedi was ready to try his own hand at development, Smith’s First American Bank was there to provide financing. “I lost money on my first project,

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so I had to make money on my second,” Moayedi laughed. But Centurion American, which he started in 1990, has gone on to develop more than 25,000 single-family lots in the area and in recent years has been among the most active commercial developers in North Texas. In 2017 he completed the Residences of the Statler Hilton, renovating the downtown Dallas hotel landmark that had been empty for a decade.

At the same time he converted the old Dallas Public Library to offices. He has since acquired the Cabana Hotel on Stemmons Freeway and most recently the former Braniff flight attendant college building, built in 1968 and vacant since 2015.

Brad Bell applauds Moayedi’s willingness to work through the difficulties of such restorations. “The Statler is an adaptive reuse. We don’t always have to tear things down. We can rejuvenate and extend new life to other buildings around it.”

In North Texas, “landmark” and “old” are relative terms, of course.

Moayedi remembers his parents, after their return to DFW, hosting overseas guests. “What was there to see in Dallas? In Fort Worth, the Stockyards is about what we had to offer,” he says. “History takes time.” But in North Texas terms, the Statler Hilton was historical. It opened in 1956 as the epitome of mid-century architecture, and he was thrilled to save it from the wrecking ball. When he started the Statler, the number of people who came to him with their historical perspectives let him know he wasn’t the only one that wanted the building restored. “That was a very tough undertaking,” he says. “We’re proud of bringing it back. I’ll be long-gone before these historical buildings.”

And then there’s Collin Creek Mall, 38 years old by the calendar, but of an entirely different age in mall years. Moayedi bought the property last year. Its anchor stores and most of the rest are being demolished, but Moayedi says that doesn’t mean he can put up whatever he wants.

“We went to all the homeowners’ associations” to pitch a redevelopment plan that includes transitions from more-dense to less-dense use, as it nears existing residences, he says.

When it was time for a public hearing on the project, 74 of the 75 speakers backed Centurion’s proposal, he says.

“People are passionate about where they live,” he says. They want to know you are adding value to both the mall and its surrounding residents, “and I think we definitely accomplished that.”

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F FEATURE

Mike Hoque Dhaka, Bangladesh

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PHOTO: HOQUE GLOBAL

F FEATURE

SoGood @ Cedars

When Boeing Co. went looking for a new corporate headquarters in 2001, they came to North Texas, flying over Exxon Mobil’s Irving facility and Las Colinas by helicopter, checking out the downtown street-level views by car.

PHOTO: HOQUE GLOBAL

One evening their driver, a young Bangladeshi named Mike Hoque, overheard an executive note how quiet—too quiet—downtown Dallas was after work hours.

He’s right, Hoque says he realized.

Hoque had already started his limo business, first as a driver with one vehicle, but quickly expanding into corporate transportation services. A few years after his Boeing experience, he went into restaurants.

After a couple of false starts, he opened four downtown Dallas eateries—Dallas Chop House, Chop House Burger, Dallas Fish Market, and Wild Salsa. His DRG Concepts has since expanded to downtown Fort Worth and has more than 300 employees. “Mike saw the core of downtown was highly underserved. He’s certainly been one of our visionaries,” Downtown Dallas’ Garrett says.

Most people would find their hands full at that point, but Hoque, a high-energy guy if ever there was one, had his next venture planned. So, he has turned management of the transportation and restaurant companies—as well as sizable chunks of ownership—to employees and his hand-picked executives and moved into real estate development. In 2015, he bought the 27-floor, 1950s-era Adolphus Tower in downtown Dallas for renovation. And all the while, he was

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also chasing acres of property.

He says he has spent six years and an undisclosed amount of his own money on the effort. He dealt with close to 100 landowners and has had to piece together tracts as small as 7,000 square feet. For his troubles, he has a 15-acre tract in the Cedars neighborhood south of Interstate 30 between the Trinity River and Interstate 45, and the site near City Hall and Farmers Market, which is 20 acres. He has named the Cedars project SoGood @ Cedars, with plans for housing, retail, and office space.

He calls the other project New Park, and has partnered with Dallas corporate developer KDC. He hopes it will be a testament to the “revelation” he felt when he first saw Dallas. Back home in Dhaka, his hometown, he had never taken a plane trip longer than three hours.

Flying halfway around the world to Dallas to visit an aunt, he was amazed by all he saw, especially the freedom to pursue what seemed like unlimited opportunities. And he sees a huge opportunity.

“All over the world, people want to get back to the city center,” to be close to stimulating places, he says. “They all want local experiences.

People look for purpose. It is all about creating a place with a purpose. I have more than 300 DRG employees. Downtown housing costs $2-$4 a square foot a month. They can’t afford that. If developers, private-equity investors, the city all work together, we can solve that issue.”

He wants public transportation, nearby educational opportunities, and inviting public spaces near where people live and work.

“If you create a project with mixed incomes and uses, people who might be down on their luck will meet a lot of people who have luck.

They will learn,” he says.

In this group of developers, Hoque is the new kid on the block at age 46. He and KDC earned kudos locally for their bid to attract one of Amazon’s proposed second-headquarters (HQ2) locations. It was a finalist in the nationwide race for the corporate plum that ultimately went to suburban Washington D.C. So he has yet to pull off one of the mega-projects. That doesn’t bother him.

He says he has spent nine years talking to and learning from Jack Matthews, whose second-generation experience is something Hoque finds valuable. “What I learned is patience, and being the underdog. Jack fought for the Dallas Convention Center hotel when nobody knew him.” Hoque is OK doing the same.

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F FEATURE

Gabriel Barbier-Mueller Geneva, Switzerland

4400 // DDAALLLLAASS -- FFOORRTT WWOORRTTHH RREEAALL EESSTAT TATEE RREEVVI IEEWW

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PHOTO: HOQUE GLOBAL

RENDERING: HARWOOD INTERNATIONAL

F FEATURE

In 1979, Barbier-Mueller moved to Dallas, just out of college and seeking a real estate career.

PHOTO: MICHAEL SAMPLES

He joined the big Henry S. Miller brokerage company before setting out on his own, developing small facilities in the suburbs.

It was less than satisfying, but then he had the kind of idea that a 26 –year-old comes up with: Why not approach Swiss watch giant Rolex and propose building a Dallas office to service its Central America business? And why not put it in the decidedly down-market land across the Woodall Rogers Freeway from Dallas’ central business district? Brilliant!

In 1984, the seven-story Rolex building opened at 2651 N. Harwood St., the first office tower in Uptown. Overshadowed now, and renamed Harwood One, it’s still Barbier-Mueller’s favorite building “because it was the start of it all.”

But right behind is the new Rolex Building, a distinctive, twisting structure “built with my two sons, Alexis and Oliver, and their team, designed by Tokyobased Kengo Kuma and Dallas-based HDF,” Harwood’s in-house design group.

The two buildings are now part of the 19-block Harwood District, which Barbier-Mueller says includes ten pocket parks covering 8.5 acres, “eight restaurants, a lobby art program in ten buildings, and a museum free of charge and open to the public.” That’s The Ann & Gabriel Barbier-Mueller Museum: The Samurai Collection, which Harwood says has seen more than 1.5 million visitors. Its traveling exhibition has visited 11 cities, including Paris, Quebec City, Santiago, and recently the Kunsthalle Museum in Munich. The museum in Dallas has about 80 pieces on display.

Overall, Harwood District has about 2 million square feet of office space and a million square feet of residential and retail. The latest addition was Harwood No. 10, a 235,000-square-foot, 22-story building with retail below and Class AA office space above. In July, Harwood bought the 11-story Citymark office building at 3100 McKinnon St., just outside the existing Harwood District.

“We currently have nearly 2 million square feet under development, including a boutique hotel,” Barbier-Mueller says. “Our mixed-use masterplan will grow to include over 11 million square feet.”

Kourtny Garrett says Harwood District has been a leader in the community.

“Anytime you see forward-thinking development, it reinforces the trajectory

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Harwood No.10

we’re on,” she says. Downtown Dallas has “created these successful nodes of development, but we’ve been slow to fill in between them.

Harwood District does that. Their wider sidewalks, their retail and restaurants and architecture, is very important.”

“One of my first deals was the 1530 Main St. Building, now known as the Joule Hotel. I noticed that Dallas was a car city, and I wanted to change that,” Barbier-Mueller says. “Coming from Switzerland where walkability and greenery are important, I applied the principles learned in Switzerland to each development we have in Dallas.”

He says Harwood District has a Walk Score of 92. One week in October, “we greeted more than 40,000 customers to our restaurants, and 20,000 of those came to work in our office buildings.”

The public transit-oriented sponsor of Walk Score says its algorithm combines walking routes with the proximity of restaurants, retail, and other amenities for 2,500 U.S. cities. Dallas overall rates a 46 Walk Score and is judged “car dependent.”

“When I come back from Paris, Geneva, Vancouver, or Zurich, I want Dallas people to enjoy the same environments and amenities found in those places,” Barbier-Mueller says.

“For our family, giving back to the community is very important to us, and we wanted to give our tenants, residents, and visitors something to do and discover.”

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I INNOVATION: TELECOM

TELECOM CENTRAL

THE EVOLUTION OF WIRELESS TECHNOLOGY IN THE U.S.

AS5GROLLSOUT,NORTHTEXASTELECOMGIANTS CONTINUETOEXPANDFORTHEFUTURE

BY JIM FUQUAY

As the telecommunications industry’s latest iteration—so-called 5G wireless service—rolls out across the country, North Texas is very much at the forefront of many companies’ efforts.

The term 5G refers to “fifth generation” wireless, the latest and fastest version of the radio network technology underlying today’s cell service.

Thanks to a history in technology that dates back the founding of Texas Instruments in 1956 and Collins Radio in 1957, both in Richardson, the DallasFort Worth region long has hosted some of the biggest names in telecom. That means that as investment spending rises, area players increasingly play leading roles in how the future of wireless unfolds.

Investment by the four biggest wireless service providers—AT&T, Verizon, T-Mobile and Sprint—totaled $55.7 billion last year, according to Standard & Poor’s Global Market Intelligence. That was up from $53.7 billion in 2017 and just under $50 billion in 2013.

“While the number of 5G markets remains relatively limited at this point, all of the operators say recently that they are making the necessary investments both to deliver faster 4G LTE speeds in the near-term and to pave the way for widespread 5G deployment in the coming years,” S&P analyst Sarah Barry James wrote in a February research report.

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.

GENERATION

YEAR

CAPABILITIES

1G 2G 3G 4G/LTE 5G

1983

Voice calls

1991

Text and photo messages (SMS)

2001

Mobile internet and video calling

2009

Multimedia, GPS, high-speed apps

2019

To be determined

*First-generation cell service used an analog signal.

Second and succeeding generations are digital.

Jon Freier, T-Mobile’s executive vice president of consumer markets, says the nation’s No. 3 wireless provider will spend about $30 billion in the next five years on 5G. And when T-Mobile’s pending merger with No. 4 Sprint closes, expected later this year, it will add another $4 billion in the next three years, he says. A good bit of that will be spent in North Texas.

T-Mobile employs 2,365 people locally in its numerous stores and at its Frisco regional office.

It’s the company’s second-biggest concentration of workers in the country, behind only its

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I INNOVATION: TELECOM

Bellevue, Wash., headquarters. That includes about 1,000 people in T-Mobile’s national engineering and information technology center in Frisco, a number that is growing, Freier says.

“Texas will be above-trend” on 5G spending, says Freier, a Fort Worth native and longtime West Texas resident now based in Bellevue. “You’ve got two of the top five markets in DFW and Houston. And with the population and job growth, this is ground zero for investment.”

All of the big wireless providers have sizable employment locally. Dallas-based AT&T has about 15,000 employees in North Texas and has begun 5G coverage here and in other large markets. Verizon, which last year moved about 3,000 employees into its huge new Hidden Ridge development in Irving, first launched 5G in Chicago and Minneapolis this spring.

In May, Sprint held its nationwide 5G launch party in Irving. The event marked the launch of 5G service in Irving, downtown Fort Worth, and parts of north Dallas.

The wireless service providers are the most visible players in telecom, but plenty of others are just below the surface. Like Richardson-based Fujitsu Network Communications, which provides fiber optics switching equipment and services to the industry. Fujitsu Network Communications has “well over 1,000” employees working in 1 million square feet of office and manufacturing space, says Paul Havala, the company’s vice president of planning.

“At its simplest, we help accommodate the flood of data” that the move to 5G is bringing, Havala says. Part of 5G is the quicker response it brings. The lag between when a user sends a signal and the network replies—called latency—is much shorter with 5G than the previous generation service, and that requires more cell towers.

“The radios move closer to the user, and the radios get closer together,” he says. “It’s just a massive infrastructure build-out. It means a lot more fiber, a lot more radios and cell towers. That’s a really, really big thing.”

Which is why it’s not going to happen all at once. Kagan Research, part of S&P, in September estimated that “5G has yet to reach more than a small fraction of current customer bases.” It will probably be “at least two to three years” before 5G matches today’s 4G/LTE coverage.

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In the meantime, there are opportunities for smaller telecom players in North Texas.

Infinera, a fiber networking company based in Sunnyvale, Calif., has announced plans for a Richardson office with room for 250 employees.

Infinera was attracted to Richardson because it “is near our customers and partners, offers an exceptionally strong local talent pool, and an existing business infrastructure,” spokeswoman Anna Vue says.

That concentration of tech talent has been building ever since TI and Collins Radio came to town. The breakup of Bell Telephone and telecommunications deregulation in the 1980s attracted big players like Canada’s Nortel, Ericsson, Nokia, Fujitsu, MCI, and others.

Mergers and buyouts have reduced the number of big names, but not necessarily the number of workers with the skills telecom companies need. Richardson’s location in the middle of the country cemented its standing as Telecom Central.

“The one thing that will motivate an employer to move or reinvest is appropriately skilled labor,” says Don Hicks, an economics professor at the University of Texas at Dallas.

Remember Collins Radio, later purchased by Rockwell International and now part of defense contractor Raytheon? Never forget that at the heart of today’s wireless networks are radios— advanced far beyond their beginnings, but still radios.

“With the emergence of wireless, we were the

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I INNOVATION: TELECOM

PHOTO: MICHAEL SAMPLES

RICHARDSON’S TELECOM CORRIDOR

RICHARDSON’S LARGEST PRIVATE EMPLOYERS

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The past decade has seen an influx of major employers into the Telecom Corridor area.

While many are not classed as telecommunications companies, in many cases the functions at these local operations are communications- and data-related.

EMPLOYER

INDUSTRY

EMPLOYEES

State Farm Insurance

Insurance

8,000

Blue Cross & Blue Shield

Insurance

3,100

RealPage

Software

2,100

Cisco Systems

Telecommunications

2,000

GEICO

Insurance

1,900

United Healthcare

Insurance

1,700

Raytheon

Aerospace

1,700

Fujitsu Network Comm.

Telecommunications

1,500

Fossil Inc.

Retailer

1,400

AT&T

Telecommunications

1,300

Texas Instruments

Semiconductors

1,200

Qorvo

Semiconductors

1,000

SOURCE: Richardson Economic Development Partnership

No. 1 location in the world” as wireless phone services grew in the 1980s, Hicks says. “It was a low-friction place to invest and grow,” with companies eying it as a staging ground for South American business. You could recruit young people here who could start a family and buy a house, which you couldn’t do on the coasts.”

John Jacobs, executive vice president of the Richardson Economic Development Partnership, noted another artifact of that long history.

“Richardson buildings exist in a highly robust telecom infrastructure environment. One of the largest fiber optic line junctions in the United States is right here in Richardson,” he says.

Another echo of North Texas’ past is heard in Plano, where TI once operated an 84-acre campus. In 2015, Regent Properties bought the property, renamed it Legacy Central, and committed $100 million to refurbish existing facilities and also add new offices, retail and apartments. It now has more than 1 million square feet of offices, the California-based company says.

Last year Samsung Electronics America agreed to consolidate its existing Plano and Richardson operations in more than 200,000 square feet in Legacy Central. It moved more than 1,000 employees into the new location this year, making it Samsung’s second-largest concentration of employees in the United States.

While telecom’s past and present continue to mix in North Texas, another trend—driven by those higher speeds and faster response times—is helping create the future. Telecom is spilling into the basic operations of non-tech companies, like automakers, insurers, health providers, warehouses, and others, making the users of these technologies as important to driving jobs and investment as the equipment-makers once were.

In a word, telecom is everywhere. In automobiles. In factories and warehouses.

In financial services. In healthcare. It’s become so much a part of companies’ and individuals’ daily lives and operations, it’s tricky to separate where telecommunications stops and the rest of the world starts.

Is Amazon just a retailer, or does its vast internet presence and cloud

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ACCESS TO EVERYTHING

ACCESS TO EVERYTHING

ALLIANCE AIRPORT – 9 MILES

ALLIANCE AIRPORT

ALLIANCE AIRPORT – 9 MILES

DFW INTERNATIONAL AIRPORT – 11 MILES

DFW INTERNATIONAL AIRPORT – 11 MILES

DALLAS FORT WORTH INTERNATIONAL AIRPORT

FORT WORTH MEACHAM INTERNATIONAL FORT WORTH AIRPORT

DALLAS FORT WORTH INTERNATIONAL AIRPORT FORT WORTH

MEACHAM INTERNATIONAL AIRPORT

FORT WORTH

ALLIANCE AIRPORT

DOWNTOWN FORT WORTH – 18 MILES

DALLAS

DALLASALLIANCE LOVE FIELD – 30 AIRPORT – 9MILES MILES

LOVE FIELD

DALLAS

FORT WORTH

DALLAS LOVE FIELD – 30 MILES

DALLAS – 32 DFWDOWNTOWN INTERNATIONAL AIRPORT – 11MILES MILES

DOWNTOWN DALLAS MILES DOWNTOWN FORT WORTH–– 32 18 MILES

DALLAS FORT WORTH INTERNATIONAL AIRPORT

FORT WORTH MEACHAM INTERNATIONAL AIRPORT

LOVE FIELD

DALLAS

FORT WORTH

341 ACRES OF 341DEVELOPED ACRES OF PARK LAND DEVELOPED

DOWNTOWN ACCESS FORT WORTH – 18 MILES TO EVERYTHING

LOVE FIELD

AN EDUCATED ANWORKFORCE EDUCATED

HOUSEHOLDS

38%

AN EDUCATED 14% WORKFORCE

DEVELOPED BACHELOR’S DEGREE MASTER’S DEGREE PARK LAND 38% 14% 27 MILES OF TRAILS 122-ACRE BACHELOR’S DEGREE MASTER’S DEGREE SPORTS PARK 27 MILES OF TRAILS 38% 14%

122-ACRE 150 EVENTS SPORTS PARK122-ACRE

ANNUALLY SPORTS PARK

BACHELOR’S DEGREE

DOWNTOWN DALLAS – 32 MILES

HOUSEHOLDS POPULATION: 45,090

WORKFORCE

ACRES OF PARK 27 LAND MILES OF341 TRAILS

DALLAS LOVE FIELD – 30 MILES

2018 AVERAGE 45,090 POPULATION: HOUSEHOLDS TAXABLE HOME VALUE

2018 AVERAGE $346,378 POPULATION: 45,090 TAXABLE HOME VALUE CITY OF2018 KELLER AVERAGE $346,378 TAXABLE PROPERTY TAXHOME RATE VALUE

/ $0.3999 CITY OF$346,378 KELLER $100 TAXABLE VALUATION PROPERTY TAX RATE CITY OF KELLER

MASTER’S DEGREE

PROPERTY / TAX RATE $0.3999 TOTAL PROPERTY $0.3999/

150 EVENTS 150 EVENTS 92K SQUARE-FOOT ANNUALLY ANNUALLY

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I INNOVATION: TELECOM computing services and streaming business make it a telecommunications company? Is Uber in the transportation business, or is it a wireless-communications enterprise with a vehicle on one end? Is an automated facility that uses wireless networks to take orders and pluck goods from the shelves a warehouse or a data-processing center? Is Richardson’s Telecom Corridor properly named if its newest corporate residents have names like Steward Health and Goldman Sachs?

And given that telecommunications employment is down 14 percent in North Texas and 26 percent nationally over the past decade, is it still a robust industry? According to the U.S. Bureau of Labor Statistics, telecommunications jobs in the Dallas-Fort Worth-Arlington metro area stood at 35,200 as of August, the latest numbers available. That’s down from 41,100 in August 2009. Figures don’t lie.

Or maybe they do. Not lie, but not tell the whole truth, either.

“Newer and high-demand jobs like those in cybersecurity, data-center management, and information technology aren’t in the BLS ‘Telecommunications’ category, even though they clearly require a deep knowledge of communications networks,” Jacobs says. It’s likely that many of the telecommunications sector jobs have evolved and those workers are now counted in other BLS categories like “information,” “business services,” and “technical services.”

He could well be correct.

The broader “information” category Jacobs mentions has held more or less steady in the past decade, standing at 82,200 as of August.

But a broader category of “computer and mathematical occupations” outnumbers telecommunications and information put together.

There were 150,970 of those jobs in Dallas-Fort Worth-Arlington, according to the BLS. That’s the fourth-highest in the nation, behind the metro areas of New York City, Los Angeles, and Washington, D.C. And, North Texas outranks such tech powerhouses as San Jose, San Francisco, Seattle, and Boston, as well as Chicago and Atlanta.

UTD’s Hicks, who has followed technology for years, also is familiar with the job statistics and has a similar explanation. He says there are still plenty of people working in telecom, but they just might be doing it for an employer that uses telecom, not working at a company

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“Tomany,telecomhaslostits

luster,hasbeeneclipsed.

Theycouldnotbemorewrong..”

—DonHicks,UniversityofTexasatDallas

that makes the equipment or provides telecom services directly.

“To many, telecom has lost its luster, has been eclipsed. They could not be more wrong,” he says. “Now it’s embedded in everything. Companies require high-capability networks. The ability to use your devices all over the world?

Telecom did that. Today, the focus is not on the producers. Ericsson and Nokia are no longer viewed as the heroes. The focus is on companies that use this technology, to the users.”

A new Lewisville factory announced recently by Ericsson may be an example of both.

Ericsson, which bills itself as one of the world’s largest makers of information and communications technology, in September said it would build a $100-million “factory of the future” to build 5G wireless communications equipment.

The 300,000-square-foot plant, expected to open next year, is a short drive from the company’s North American headquarters in Plano, where it already has about 2,500 employees in 500,000 square feet of space.

Basically, the factory will employ Ericsson’s own systems to build the brand’s own new gear.

“This first-of-its-kind factory will be fully automated and will be powered

by Ericsson 5G solutions tailored for the industrial environment,” Plano-based spokesman Jimmy Duvall says. It will combine “automated warehouses, connected logistics and automated assembly, packing and product handling, as well as the use of autonomous carts,” he says.

While 5G networks are being rolled out around the nation, including in North Texas, Ericsson says “the first major impact will be seen in the industrial space.”

The company calls the merging of manufacturing and technology “Industry 4.0,” another step toward what it calls the “goal of becoming a ‘lights-out factory,’ a new term that describes the vision of a fully automated factory.”

Another expanding user of wired and wireless networks is the humble warehouse.

Once, an advanced warehouse was one whose floor had been leveled like a pool table to allow the use of sky-high forklifts. Today, it’s almost like warehouses and office buildings are merging, says Tony Creme, senior vice president at Hillwood Properties, the developer of Fort Worth’s AllianceTexas.

“The warehouse has over the past 10 years adapted to e-commerce and automation,” Creme says. Where in the past, relatively few workers handled bulk goods in big loads, today “people are picking and packaging boxes filled one at a time.”

The communications networks in those buildings don’t have to be 5G or even 4G, but they do have “robust Wi-Fi networks, redundant fiber, redundant power supplies. We have fiber loops through Alliance,” he says.

AllianceTexas even has what it calls a Mobility Innovation Zone, “an environment where customers can test drones and autonomous cars and trucks,” Creme says.

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I INNOVATION: TELECOM

AT&T, VERIZON DEVELOPMENTS RESHAPING NORTH TEXAS

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HIDDEN RIDGE

RENDERINGS: GENSLER

When AT&T moved its headquarters to downtown Dallas from San Antonio in 2008, everybody knew it meant thousands of new workers in the central business district. But it would have been hard to foresee the company’s plans for its offices a decade later.

Last year, AT&T announced a $100-million, fourblock development called the Discovery District. It was a welcome outcome after the telecom giant announced some 18 months previously that it was exploring a move to the suburbs. The project basically creates a public gathering place with restaurants, art exhibits, music performances, and sports-watching parties.

“We’re planning to transform the entire area around our downtown complex. AT&T Discovery District will be a first-of-its-kind ‘urban tech campus’ in downtown Dallas—a showcase for new technology and innovation,” the company said in a prepared statement. Befitting the nation’s largest wireless service provider, it will also feature public Wi-Fi access and the latest 5G wireless service.

The company has about 5,500 downtown workers. Discovery District is expected to open later this year.

AT&T’s project comes about the same time as Verizon’s 150-acre, mixed-use development around its Irving campus. Verizon, the nation’s second-largest wireless provider, teamed with big Dallas developer KDC to create the Hidden Ridge project, which has attracted the new headquarters of energy producer Pioneer Natural Resources. It’s expected to be a $1-billion project.

Verizon has held the land since before it was created from its corporate predecessor, GTE, in 1990.

Close to 3,000 employees work at the Irving campus.

Like AT&T’s Dallas development, the Verizon project will feature 5G wireless connectivity. Plans include a business incubator aimed at small enterprises using 5G networking. The company wants to partner with retail and apartment developers to incorporate “smart” technologies in buildings and infrastructure.

The developers have also worked with Dallas Area Rapid Transit to put a rail station at Hidden Ridge as part of DART’s Orange Line, which runs from downtown Dallas to Dallas/Fort Worth Airport.

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FA L L Photos: 2 0 1 9 Dallas Skyline-Urban Fabric Photography; Klyde Warren Park Book Kiosk, Office Workers, Southwest Airlines Headquarters-Kauwuane D A L L A S - F O R T W O R T H R EBurton A L E S TAT E REVIEW / 49 Photography

I INNOVATION: TELECOM AT&T DISCOVERY DISTRICT

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If growth is the goal, you’d better have room to make it happen. With over 37 million square feet of existing office space, 39 million square feet of existing industrial/flex space and a passionate and talented workforce of over 3.3 million highly educated employees within a 30-minute commute, Irving-Las Colinas has room for you to expand to your full potential.

IRVING, TEXAS Recognized as the Headquarters of Headquarters, it’s time to pick up your business plans and grow your company in this dynamic business community.

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irvingchamber.com | (214) 217-8484 FA L L 2 0 1 9

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A ANATOMY OF A DEAL

THE EAGLE HAS LANDED A M E R I C A N A I R L I N E S I S F U L F I L L I N G I TS M I S S I O N W I T H A $ 3 5 0 - M I L L I O N E X PA N S I O N O F I TS F O RT W O RT H C O R P O R AT E CAMPUS, UNIFYING 12,000 TEAM MEMBERS ON ONE SITE.

BY PAY TON POT TER

One Campus, One Team. That’s the motto behind American Airlines’ new corporate campus, a project more than five years in the making.

The Fort Worth-based airline is the world’s largest by fleet size, according to Forbes. As

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of March 2019, its fleet included 956 individual aircraft with a capacity of 256,928,663 seats.

And behind that fleet is a workforce of some 130,000 employees keeping the gears turning.

A $350-million, 90-acre campus expansion, complete with three new buildings and a mobility plan, is the airline’s latest effort to unify its workers on one site and provide a new training facility for its newest recruits.

The campus expansion was developed by Dallas’ Crescent Real Estate, which

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A ANATOMY OF A DEAL has offices in Uptown Dallas and Denver. It’s the noted developer behind The Crescent, McKinney & Olive, and the Ritz-Carlton hotel in Dallas.

The campus addition, says Joseph Pitchford, managing director of development at Crescent Real Estate, will bring together 12,000 workers on one site and unite departments across outdoor green space, food options, and mobility initiatives.

Two office buildings, named Skyview 7 and 8, face each other across a water-filled ravine accessible by a bicycle and cart bridge. To the east of Skyview 7 sits Skyview 6, a 600-room hospitality complex used to house and train pilots, flight attendants, and other airline employees visiting the campus.

Pitchford says campus planning took over five years and was spurred along by biweekly meetings in what he calls a “war room,” a Crescent-owned conference room that was dedicated solely to the campus development.

In the war room, representatives from American Airlines and Crescent met with three other key players, including design architect Pelli Clarke Pelli, the New Haven, Conn.-based firm behind Crescent’s McKinney & Olive development.

The project’s landscape architect was the Office of James Burnett, or OJB, best known locally for its work on Klyde Warren Park in the Dallas Arts District, and interior design was led by Gensler, an interior design architect who also worked on McKinney & Olive with Crescent.

Every two weeks, the teams met in the war room to discuss the campus plan.

In the room, Pitchford says collaborators presented their ideas on 3-foot-by-7foot banners.

“We wanted to be able to document the project later on the banners, so everything was the exact same size no matter what you did,” he says. “It was a great way to literally wrap the room in information. The client can literally walk all the way around the room, see every wall and be able to look at a landscape plan on one side and flip and look at a building planning on the other side.”

Pitchford says the war room was the project’s “secret weapon” because it united a far-flung team, bringing together collaborators from Dallas to Houston to New Haven. “[We went through about] 50 different site plans trying to figure out the best way to use this incredible site,” he says. The war room team had to “knit together not just the 90 acres, but also the 210 acres that American already controlled.

How could this project help them create what they now call, both simplistically and brilliantly, ‘One Campus, One Team.’”

Kirk Hotelling, American’s managing director, campus properties, says choosing the site was the only logical way to unite American’s 130,000 employees and transform the airline’s future.

“Already home to American’s Flight Academy, largest reservation center, Robert W. Baker Integrated Operations Center (IOC), Training & Conference Center, and C.R. Smith Museum, redevelopment of this scale would have only happened on this site,” Hotelling says.

SELECTING THE SITE

The first key player to come on board for the American Airlines project was its developer, Crescent Real Estate, a partnership that began in 2014.

Joseph Pitchford, of Crescent, speculates the developer was chosen because of its work on McKinney & Olive, a mixed-use building in Uptown Dallas.

“Right at the time, McKinney and Olive was coming up out of the ground,” he says. “It was successful; it was good-looking. It had a high-powered design team.”

Those attributes, he says, were “interesting to American Airlines as they were trying to figure out who should be their developer for their new headquarters.”

He admits he was never told point-blank that McKinney & Olive is the reason Crescent was chosen, but “they really liked that building an awful lot,” he says.

Crescent, he says, went through a formal FRP process in mid-2014 along with

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KEY PLAYERS SKYVIEW 7 & 8 DEVELOPER: CRESCENT REAL ESTATE DEVELOPMENT DESIGN ARCHITECT: PELLI CLARKE PELLI ARCHITECTS EXECUTIVE ARCHITECT: KENDALL HEATON ASSOCIATES INC. INTERIOR DESIGN ARCHITECT: GENSLER LANDSCAPE ARCHITECT: OFFICE OF JAMES BURNETT GENERAL CONTRACTOR (SKYVIEW 8): AUSTIN COMMERCIAL GENERAL CONTRACTOR (SKYVIEW 7): HOLDER CONSTRUCTION

SKYVIEW 6 DEVELOPER: CRESCENT REAL ESTATE DEVELOPMENT DESIGN ARCHITECT: PELLI CLARKE PELLI ARCHITECTS EXECUTIVE ARCHITECT: HKS LANDSCAPE ARCHITECT: OFFICE OF JAMES BURNETT GENERAL CONTRACTORS: THE BECK GROUP some of Dallas-Fort Worth’s other prominent firms such as KDC, Trammell Crow Co., and Hillwood.

For the RFP, he says, considerations included things like the developer’s capacity to complete the project, special talents, ability to persevere through the project’s “long haul,” and ability to unify with American on its singular vision.

“We had to write good proposals and get into the room with our prospective client and say, ‘we get it. Here’s how we can persuade you that we get it.’ And so, we did that,” he says. “And we were unbelievably proud to prevail over that really top-notch field of developers.”

Crescent also highlighted its experience with hospitality, pointing to 2-million-plus-squarefoot campuses it had owned and operated in Houston.

“While we weren’t the developers of those, we were the operators,” he says. “We understood what it took to tweak the buildings and make it feel like a campus. We talked about our hospitality.”

When Crescent came on board, the team joined ranks with CBRE and American Airlines’ real estate division and set to work identifying and securing a site for the new campus.

Pitchford says American had the choice of

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A ANATOMY OF A DEAL two parcels of land: One, the site of the former Texas Stadium in Irving, and two, the chosen location in Fort Worth.

After deliberation, he said, the airline chose the 90-acre-plus parcel in Fort Worth, namely because it afforded American the chance to unify existing operations on an adjacent site with the campus expansion.

Because the land was owned by Dallas/Fort Worth Airport, Pitchford says, Crescent and American’s real estate team went through “a series of very high-level negotiations” with the airport, including explorations of the cost of the land.

When it comes to land owned by the airport

authority—of which there are some 18,000 marketable acres—the property can’t be sold but can be leased.

Negotiations led to a solution, he says. The airport agreed to a 99-year ground lease, which was made coterminous to the existing American campus in Fort Worth. The deal took place five years ago.

Crescent also was tasked with putting together what Pitchford calls the project’s “core team,” which included Pelli Clarke Pelli Architects, Gensler, and the Office of James Burnett. The core team worked on the development of the entire project, and additional organizations were brought on later to handle other individual aspects of the project.

Putting together the core team wasn’t exactly cut-and-dried, either, Pitchford says. The exhaustive project included pitching three candidates for each major discipline—design architect, architect of record, and landscape architect.

“We got proposals, we got qualifications, we had interviews,” he says. “We did an exhaustive process—it was probably three months—of filling out the team.”

LAY OF THE LAND

NEW CONSTRUCTION RENOVATION

CONSTRUCTION STATS: > Over 102,000 cubic yards of concrete > Over 1,000 construction workers onsite > 10 tower cranes

1

11

11 11

10 8

2

7

6

5 3

9

11

1 SKYVIEW 1 — DFW RES

7 SKYVIEW 7 — Leadership/Support Staff

2 SKYVIEW 2 — Robert W. Baker Integrated Operations Center (IOC)

8 SKYVIEW 8 — Leadership/Support Staff

3 SKYVIEW 3 — Flight Admin, Flight Academy, Simulators, Classroom

SOURCE: American Airlines

11

4

9 Museum

4 SKYVIEW 4 — Tech Ops Center

10 FAA

5 SKYVIEW 5 — Training and Conference Center

11 Parking Garages

6 SKYVIEW 6 — Hospitality Complex

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Crescent Real Estate

is proud to partner with American Airlines to redevelop the Robert L. Crandall Campus.

A ANATOMY OF A DEAL

SKYVIEW 7 & 8 TOTAL SQUARE FEET: 1.7 million WORKERS IN SKYVIEW 7 AND 8: 7,200 TEAM MEMBERS TOTAL DAILY WORKERS ACROSS CAMPUS: 12,000

SKYVIEW 8 OFFICE BUILDINGS: 7 stories CONNECTING WINGS: 2 stories

90 ACRES OF OPPORTUNITY WITH A CHOSEN SITE IN HAND, DESIGNERS SET TO WORK CREATING CLASS A OFFICES AND A HOSPITALITY COMPLEX FOR THE AIRLINE’S 130,000 EMPLOYEES. On the land that now houses American Airlines’ campus expansion once sat the headquarters for Sabre. Joseph Pitchford, of Crescent, says the core team explored updating the buildings and incorporating them into the campus, but they were too skinny, too awkward, and lacked the finishings of an efficient Class A office building.

The former Sabre headquarters aside, the parcel of land remained largely untouched, creating an opportunity to embrace its natural texture and waterways rather than developing over them.

Glenn Jones, principal at Pelli Clarke Pelli Architects, the project’s design architect, says the core development team began the process of designing around it.

TOWN CENTER: 3 stories GAME ROOMS: 2

FLOOR PLATE OF OFFICE TOWERS: 42,000 square feet

Jones says the first thing he noticed is a ravine that runs, in effect, east to west through the property. The ravine curves down to the east, and south of it sits an area of rolling topography.

Jones says the shape of the ravine and the hill to its south reminded him of concentric circles in the disturbed surface of otherwise calm water, and it’s that shape that drove the layout of the American campus.

“Maybe I don’t think like most people, but my mind instantly saw an opportunity to take the offices and arrange them in a ratio,” he says.

Today, a parking garage, Skyview 8, and the ravine all mirror each other in shape as they look north toward Skyview 7 and the remainder of the campus.

SKYVIEW 8

PHOTO: MICHAEL SAMPLES

In an effort to preserve the site’s natural beauty while accommodating the needs of the airline, Jones says the design team chose to place the parking garage into the side of the hill, several stories below the grade at which Skyview 8 sits.

“I took the garage and, like a submarine, just drove it right into the ravine, also in this concentric art form,” he says. “If you’re on that side, rather than seeing a seven or eight-story garage, it’s really only two or three stores tall because the rest was plowed into the landscape.”

The Skyview 8 building is composed of four seven-story office buildings connected by two-story wings. At its center sits a three-story “Town Center,” which houses dining and meeting spaces and has capacity for 1,000 patrons at a time.

Pitchford says he was originally resistant to the idea of the Town Center, but he realizes now “they were right.”

“They wanted the dining right in the middle so that you walk into town square, you look down to the next level, and people are eating,” he says. “Even when it’s not being used for eating, it’s being used for meetings, and it’s incredible.”

The Town Center also serves as the only entrance to the building, emergency exits notwithstanding. Pitchford says limiting the building to one unified entrance causes people to collaborate and form connections they wouldn’t under different circumstances.

Jonathan Pierce, American’s director of campus culture and change management, says a key part of the airline’s vision for the site was unifying its employees, formerly spread across Dallas-Fort Worth, and creating more collaborative, nimble teams.

“Flexible workspace was a key part of this SKYVIEW 8 vision, however, the most essential element was building a campus that welcomed and celebrated our frontline team members,” he says. “By bringing our workgroups together on one site, we believe we will build a more connected airline and will thrive forever.”

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SKYVIEW 7

A ANATOMY OF A DEAL

BUILDING HEIGHT: 3.5 stories STANDARD FLOOR PLATE: 90,000 square feet

PRESERVATION EFFORTS

SKYVIEW 7

Across the river from Skyview 8 sits Skyview 7, another new development on American’s Fort Worth campus. Interior design for both buildings, along with that of the Skyview 6 hospitality complex, was completed by Gensler.

Paul Manno, principal at Dallas-based Gensler, says both buildings are designed on a flexible seven-foot-six by seven-foot-six modular grid.

“Everything shifts on that module whether it’s lighting, walls, workstations, or sprinkler heads. It doesn’t matter,” he says. “As we begin to change and morph over time, we’re not necessarily moving infrastructure. We’re moving a wall, or we’re moving a workstation, or we’re moving a diffuser in the raised floor.”

Coming to this grid-based design, however, was no simple task. Manno says the project’s core team, in addition to the war room in Dallas, developed a test room in Fort Worth to put conceptual design ideas into practice.

The testbed, he says, was a 4,000-square-foot mock-up space used to test everything from light fixtures to individual workstations to raised-air floor diffusers to carpet.

“The mock-up was a key part,” Manno says. “It was not a cheap mock-up because we ripped stuff out and put it back in. We built half a bathroom two, three times before we got everything right.”

Manno says work performed in the office mock-up was not only critical to the project but also meticulous.

“So, if we’re going to build 105 restrooms, we want to make sure we get them right,” he says. “And then the same thing with the furniture… They were changing parts and pieces out for probably six or nine months before we finally decided on the right workstation.”

SKYVIEW 6

American’s campus formerly housed a hospitality complex for employees visiting the site to undergo training and other things.

Built in 1957, some have described the facility as dorm-like. But the days of dorm living are gone for American Airlines thanks to Skyview 6, the campus’ new hospitality complex.

The 600-room complex includes a medical clinic, a fitness center, a dining facility, a rooftop pool, and a two-story, 70,000-square-foot fitness center.

But the new complex isn’t without the charm and memories of the former hotel.

Manno says the complex retains “some of the spirit that was there back when it was the old 1960s dorm room.”

The original hotel also housed a bar known as The Tavern. A similar tavern is included in the new site as well, but it will be able to seat up to 275 guests across indoor and outdoor dining spaces.

Other preservation efforts were made in the hospitality complex as well, says Mike Menefee, principal at HKS, the architect of record behind the hospitality complex.

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> Icons from the original Stewardess College, built in 1957, are being preserved to honor the history of the airline.

PHOTO: MICHAEL SAMPLES > Recreating the graduation staircase for the new hotel lobby > Relocating the original staircase to the CR Smith Museum, adding a walk-thru exhibit > Reinstalling the original medallion and 1995 time capsule > Preserving the Kiwi sculpture > Preserving original building documentation > Preserving existing construction drawings

Chief among the preservation efforts was a grand staircase long used to photograph graduating flight attendants. Although the original staircase was not up to code requirements and couldn’t be relocated to the new complex, a similar re-creation of it will stand in Skyview 6.

But, the original staircase won’t be lost to time. Menefee says the original staircase will be relocated to the CR Smith Museum, an on-campus museum documenting the history of the airline.

Other preservation efforts included salvaging a floor medallion and a mural, both of which will sit prominently in Skyview 6.

Menefee says perhaps one of the most important pieces of creating a collaborative environment is the complex’s ballroom, designed to accommodate 1,000 visitors.

The site of future State of the Airline addresses from CEO Doug Parker, the ballroom has gardens on both sides and several exterior windows, Menefee says.

Jonathan Pierce, American’s director of campus culture and change management, says design teams put “thoughtful consideration” into building a campus geared toward team member wellness without sacrificing history.

“We are extremely proud of what the college meant to both our team members and aviation history,” Pierce says. “Relocating these items to the museum will not only allow all visitors to see the staircase but will also give important context to these items.”

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A ANATOMY OF A DEAL

LANDSCAPE STATS: > > > > > > >

21 ACRES of pavement converted to green space 8.3 MILES OF TRAILS added to campus 3,000 NEW TREES planted 90 ACRES OF WOODLANDS preserved Over 30 MATURE TREES were saved and replanted C02 ABSORBED by trees each year: 166,560 pounds LIMESTONE BOULDERS SALVAGED for landscaping: 1,500 tons PHOTO: AMERICAN AIRLINES

STEP OUTSIDE THOUGHTFUL LANDSCAPE PUTS THE CAMPUS’ 12,000 WORKERS ONLY STEPS FROM NATURE AND WELLNESS. The site’s landscape was designed by the Office of James Burnett, the landscape architect behind Dallas’ Klyde Warren Park.

Cody Klein, a managing principal at OJB, says the firm was first contacted by Crescent Real Estate for the project.

“We were contacted by Crescent, with whom we have done projects in the past in Dallas over several years,” he says. “We had a great relationship with Crescent.”

OJB, along with three or four other landscape architecture firms, presented to American and was selected for the job, he says. The team then went to explore the site.

“And as we arrived on the site we were struck by the beauty,” he says. “We were like, ‘wow, we

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have to celebrate this, we have to take advantage of this.’”

During exploration, the OJB team was struck by the landscape and set to work identifying 35 to 40 existing trees and tagging them for preservation. The trees were then uprooted and moved to an on-site nursery, where they were held for three and a half years before being planted.

In addition to preserving the trees, Klein says, the job team focused on preserving the overall ecology of the site, which sits in the Blackland Prairie region of North Texas.

The landscape, he says, varies by proximity to the Skyview buildings with native trees and grasses surrounding the ravine and a more refined landscape surrounding the offices and hospitality complex.

Environmental sustainability was also at the forefront of OJB’s plans for the site’s landscaping, Klein says, and that included a focus on responsible use of water.

Plants on the campus all have low water requirements, but that’s only the tip of the environmental iceberg.

Water features throughout the campus, Klein says, responsibly recycle condensation from the offices’ HVAC systems, rather than releasing it into the sewerage system.

American Airlines, Klein says, prioritized mobility, connectivity, and wellness throughout the 300-acre campus, a task OJB highlighted in site-planning phases.

From outdoor work pods and conference sites to a two-mile bridge connecting northern and southern ends of the site, the campus will, for the first time, have internal transportation options.

“We created a mobility plan that included bikes, shuttles, electric shuttles,” he says. “Eventually, the hope is that they’re going to go autonomous. But really thinking about connecting people to people, people to their workplace, and people to the environment was a really important part of our planning strategies for the campus.”

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C COMMUNITY

Jim Knight, Chairman Bill Cawley, Chairman-Elect

CHAMPION’S CIRCLE

Bank of America Merrill Lynch/ Bank of America Charitable Foundation, Inc. Bank of Texas CBRE Compatriot Capital, Inc. Deloitte.

Federal Reserve (Community Development Financial Institutions Fund) HFF JLL JP Morgan/JP Morgan Chase Foundation NexBank SSB Stantec

CHAIRMAN’S CIRCLE

Balfour Beatty Construction Billingsley Company Corgan Crow Holdings Capital Partners, L.L.C. Cushman & Wakefield DPR Construction, Inc. Eastdil Secured EY Frost Bank Granite Properties Invesco Real Estate Jackson Walker KPMG LegacyTexas Munsch Hardt Kopf & Harr P.C. Republic Title of Texas, Inc. Stewart Title The Howard Hughes Corporation Wells Fargo Bank/ Wells Fargo Foundation Winstead PC

IMPACT INVESTORS

Each year, The Real Estate Council receives both financial and volunteer support from funding partners and member companies. Special thanks to each of you for contributing your time, talent, and resources to help us achieve our mission.

PRESIDENT’S CIRCLE

BB&T BBVA Compass/BBVA Compass Foundation Brasfield & Gorrie, LLC Cawley Partners Gables Residential GFF Goldman Sachs Grant Thornton Haynes and Boone, LLP Jackson-Shaw KDC NorthMarq Capital PGIM Real Estate Finance PUREPOINT Financial Simmons First Foundation StreetLights Residential Texas Capital Bank Thackeray Partners The Beck Group TIER REIT, Inc. Todd Interests Trammell Crow Company Transwestern US Bank/ Foundation Westmount Realty Capital, LLC

BENEFACTOR’S CIRCLE 42 Real Estate, LLC Acore Capital AG&E Structural Engenuity Alston Construction American National Bank of Texas Associated Bank Bank of America Plaza Bank of the Ozarks Benchmark Title Berkadia Commercial Mortgage Bradford Companies

CallisonRTKL Capital One Bank Chicago Title, NCS Dallas Citigroup Global Markets, Inc. Colliers International Corinth Properties Deutsche Bank Gensler Greenberg Traurig-Dallas HALL Group Hill & Wilkinson Hillwood Urban Hunt Real Estate Capital JPI Jones Day Kane Russell Coleman Logan PC Kennington Commercial KeyBank Kimley-Horn and Associates, Inc Lincoln Property Company Locke Lord LLP Matthews Southwest Merriman Anderson Architects, Inc. Mill Creek Residential Trust LLC MYCON General Contractors ORIX Real Estate Americas Pacheco Koch Consulting Engineers, Inc. Perkins+Will PlainsCapital Bank Primera Companies, Inc. Regions Bank Sarofim Realty Advisors Spirit Realty Capital Stream Realty Partners t. howard and associates architects, inc. (th+a) The Muse Family Enterprises The Retail Connection

Trammell Crow Residential Turner Construction Company VanTrust Real Estate, LLC VCC Construction Vinson & Elkins L.L.P. Walker & Dunlop Younger Partners, LLC

PATRON’S CIRCLE

AG&E Structural Engenuity Bay Miltenberger Benefit Cosmetics Boutique Preston Cherry Painting Company, Inc. Designer Draperies And Floors DPR Construction, Inc. Eastman Law Fairmont Hotel Fauxcades Gaedeke Group LLC Gemini Stage Lighting & Equipment, Co., Inc. Global Furniture Group HALL Group Hilton Anatole Hotel Imlach & Collins Brothers J&S Audio Visual Joel M. Eastman, PLLC Jones Day Lasco Acoustics and Drywall Legacy Hedgcoxe Office Partners, LP Performance Door and Hardware, Inc Polk Mechanical Co LLC Terracon Consulting Inc. The Demo Company The Ritz-Carlton - Dallas TX Office Installation Services Inc Wccw Western Rim Windsor Court Hotel

WHO WE ARE TREC is where 2,000 commercial real estate professionals spark community transformation, influence policy, and propel careers in DFW and beyond. Only TREC provides the road map for success and the platform to Build the City You’ve Imagined.

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Learn more at recouncil.com or by calling 214-692-3600.

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C COMMUNITY The Dallas Regional Chamber recognizes the following companies and organizations for their membership investment at one of our top levels. Bolded companies are represented on the DRC Board of Directors. For more information about the benefits of membership at these levels call Diana Rivas-Smith at (214) 746-6744.

[x]cube LABS 1820 Productions 7-Eleven, Inc. A G Hill Partners LLC Accenture Acme Brick Company Active Network AECOM Aimbridge Hospitality Akin Gump Strauss Hauer & Feld LLP Alaska Airlines AlixPartners LLP Alkami Technology Alston & Bird LLP Altair Global Amegy Bank of Texas Amerant Bank, N.A. American Airlines, Inc. American Heart Association, Dallas Division American National Bank of Texas AMN Healthcare Andrews Distributing Company of North Texas Aon Arcosa Armstrong Relocation Ashford Hospitality Trust, Inc Associa At Home AT&T Atmos Energy Corporation Audi of America, LLC Austin College Austin Industries AustinCSI Axxess Bain & Company, Inc. Baker & McKenzie, LLP Baker Botts L.L.P. Baker Tilly Balfour Beatty Bank of America Bank of Texas Barnes & Thornburg Baylor Scott & White Health BB&T BBVA BDO USA LLP

BE&K Building Group Bell Flight Bell Nunnally BG Staffing, Inc. Big 12 Conference Billingsley Company BKD LLP bkm Total Office of Texas BLNelson Group LLC Blue Cross and Blue Shield of Texas Boeing BOKA Powell Borden Dairy Company Bottle Rocket Brasfield & Gorrie Brierley+Partners Briggs Freeman Sotheby’s International Realty Brinker International, Inc. BRP Business Jet Center Business Wise, Inc. Capital One Bank Carrington, Coleman, Sloman & Blumenthal, L.L.P. Cawley Partners CBRE Group, Inc. Centurion American Development Group CENTURY 21 Judge Fite Company Champion Partners Chickasaw Nation Children’s Health System of Texas Choctaw Nation of Oklahoma CHRISTUS Health CHRO Partners CiCi Enterprises, LP Cinemark Holdings (Cinemark USA, Inc.) Cisco Systems Citi City Electric Supply Clark Hill Strasburger Cleaver-Brooks Sales and Service ClubCorp USA, Inc. Coca-Cola Refreshments Colliers International Comerica Bank Commemorative Air Force

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Commerce Bank Consolidated Communications Copart Corgan Corinth Properties Corrigan Investments, Inc. Cousins Properties CP&Y, Inc. Crow Holdings Crowe LLP CSRS Cyber Group, Inc. CyrusOne Dallas Baptist University Dallas Business Journal Dallas County Community College District Dallas Cowboys Football Club Ltd. Dallas Mavericks Dallas Stars Hockey Club Dallas Summer Musicals Dallas Wings Dal-Tile Corporation Dannenbaum Engineering Corporation DeGolyer and MacNaughton Deloitte LLP DFW International Airport DHD Films Diodes Inc. DLR Group Staffelbach Dreien Opportunity Partners LLC E Smith Legacy Holdings EarthX East West Bank Ebby Halliday Real Estate, Inc. Egan Nelson LLP Eric Affeldt Ernst & Young LLP Estrada Hinojosa & Company, Inc. Ewing Automotive Group Exxon Mobil Corporation FASTSIGNS - Northeast Dallas FedEx Office Fidelity Investments Fluor Corporation Headquarters Foley Gardere LLP Forest City Texas Inc Fox Sports Southwest

Frito-Lay North America Frost Bank Frost Brown Todd LLC Furniture Marketing Group G6 Hospitality LLC Gaedeke Group Gensler George W Bush Foundation Goldman Sachs & Co, LLC Gordon Highlander Granite Properties Grant Thornton LLP Green Brick Partners Gulfstream Aerospace Corporation Gupta & Associates Inc. Hall Group Harness Dickey & Pierce Hartline Dacus Barger Dreyer LLP Haynes and Boone, LLP H-E-B/Central Market Hedera Hashgraph HFF Hill & Wilkinson General Contractors Hill+Knowlton Strategies Hillwood Development Company, LLC Hilti North America Hilton Anatole HKS Inc. HMS HNTB Corporation Hoar Program Management, LLC HOK Holdingham Group North America HollyFrontier Corporation Holmes Murphy HOLT CAT Howard Hughes Corporation HPI Real Estate Services & Investments/Ross Tower HR&A Advisors HSBC Bank USA HUB International Insurance Services Hunt Consolidated, Inc./ Hunt Oil Company Husch Blackwell LLP IBC Bank IBM Corporation

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C COMMUNITY Interceramic International Leadership of Texas Invesco Real Estate Invitation Homes Jackson Spalding Jackson Walker LLP Jacobs Engineering Group Inc. Jamba Juice JE Dunn Construction JLL Jones Day JPMorgan Chase & Co. Kane Russell Coleman & Logan PC KDC Real Estate Development & Investments Ketchum Public Relations Kilpatrick Townsend & Stockton LLP Kimley-Horn and Associates Kirkland & Ellis Kosmos Energy LLC KPMG LLP Kubota Tractor Corporation L.A. Fuess Partners Structural Engineers LegacyTexas Bank Life School of Dallas Linebarger Goggan Blair & Sampson, LLP Littler Mendelson, P.C. Live Nation Locke Lord LLP Lockheed Martin Lockwood, Andrews & Newnam, Inc. Bobby B. Lyle Lyft Inc M2 Studio MAPP Mary Kay Inc. Mbroh Engineering, Inc McCarthy Building Companies, Inc. McGinnis Lochridge McGough Construction McGuire, Craddock & Strother, PC McKissack & McKissack McKool Smith McLarty Capital Partners McRight-Smith Construction Medical City Dallas Hospital/ Medical City Children’s Hospital Methodist Health System MHBT, a Marsh & McLennan Agency LLC company MHT Partners LP Microsoft Corporation MidFirst Bank

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Mohr Partners, Inc. Munck Wilson Mandala LLP MV Transportation, Inc. NEC Corporation of America Networking Results Inc. Newmark Knight Frank Nicholas Residential Norton Rose Fulbright NTT DATA Inc. Oklahoma State University Omni Dallas Hotel Omniplan, Inc. Omnitracs, LLC Oncor Operation Kindness Options Clearing Corporation Origin Bank ORIX Corporation USA Pacific Builders Pape-Dawson Park Place Dealerships Parkland Foundation Patriot Truck Sales Paul Quinn College Penske Motor Group Perkins Coie LLP Perkins+Will Pierpont Communication Pioneer Natural Resources Company PlainsCapital Bank PNC Point B Polsinelli Preferred Freezer Services Premier Truck Group Prime 45 Development LLC PSA Constructors, Inc. PwC Qatar Airways RealCom Solutions Regions Bank Reimagine RedBird Reliant, an NRG Company Rent-A-Center Rosewood Property Co. RSM US LLP Santander Consumer USA Sbase Technologies Scheef & Stone, LLP SCHMIDT & STACY Consulting Engineers, Inc. Scovell Family Foundation Sendero Sewell Automotive Companies Shackelford, Bowen, McKinley & Norton LLP Sheppard Mullin

Sheraton Dallas Showcall Sidley Austin LLP Silicon Valley Bank Silverado Interests Simmons Bank Slalom Smith Group Asset Management Smith Limousine Smoothie King Southern Glazer’s Wine and Spirits Southern Methodist University Southwest Airlines Southwest Office Systems, Inc. Spectrum Enterprise Spectrum Reach Squire Patton Boggs St. Mark’s School of Texas Stantec State Farm Insurance Companies Steinhart Family Advised Fund Stewart Title Stinson Leonard Street Stout Suffolk Construction Sumitomo Mitsui Banking Corporation SMBC SunTrust Robinson Humphrey Inc Target Headquarters TBK Bank TD Ameritrade TDIndustries TDJ Enterprises Teladoc Telios Tenet Healthcare Texans Can Academies Texas A&M University Texas Capital Bank Texas Central Texas Health Aetna Texas Health Resources Texas Instruments Texas Mutual Insurance Company Texas Scottish Rite Hospital for Children Texas Star Alliance Texas Woman’s University Texas Women’s Foundation The Asset The Beck Group The Boston Consulting Group The Brierley Group LLC The Broaddus Companies The Commit Partnership The Crowther Group The Dallas Morning News

The Edelman Group The Fairmont Dallas The Freeman Company, LLC The Kroger Co. The Parvin Group The University of Texas at Arlington Thompson & Knight LLP Thompson Coe Thomson Reuters Thryv T-Mobile US Inc Tom Thumb - Albertsons Topgolf Torchmark Corporation Town of Addison Toyota Motor North America TracyLocke Transwestern Travelers Insurance Company Trinity Groves, LLC Trinity Industries, Inc. Turner Construction Company TXU Energy Uber Technologies, Inc. UBS Hawthorne Family Fund UBS Realty Investors LLC UMB Bank N. A. UnitedHealthcare University of Dallas University of North Texas at Dallas University of North Texas System University of Texas at Dallas UT Southwestern Medical Center Veritex Holdings Verizon Wireless South Central HQ Volunteers of America Texas Walgreens Company Weaver Weber Shandwick Weil, Gotshal & Manges LLP Weitzman Wells Fargo West Monroe Partners LLC WFAA-TV Whitebox Real Estate Whiting-Turner Contracting Company Whitley Penn Willis Towers Watson Winstead PC Women’s Foodservice Forum Zinwave Ztar Mobile, Inc.

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SPECIAL ADVERTISING SECTION

ECONOMIC DEVELOPMENT DIRECTORY Addison is certainly the place where it all comes together, and the Economic Development & Tourism Department can help. The department’s professionals are charged with developing programs and supporting projects that will help promote economic prosperity in the community.

For companies that are looking to relocate or expand, the department can provide information about Addison so that key decision makers can get a well-rounded understanding of all that the community has to offer. In addition to this, the department can help identify the right space for businesses, evaluate projects for public support, and open the doors for opportunities that abound in Addison and the North Texas region. With the support of our key stakeholders, the department can also get you connected in local business networks.

ADDISON ECONOMIC DEVELOPMENT & TOURISM: 972.450.7076 14681 Midway Road Suite 200 Addison, TX 75001 addisoned.com

Located at the highest elevation in Dallas County and 20 minutes from the city center sits the beautiful, family-friendly City of Cedar Hill, where opportunities grow naturally.

This bustling and diverse community of just over 45,000 people combines the best of big-city living with natural beauty and outdoor recreation found nowhere else in the Metroplex.

With its low cost of doing business, ample workforce, and attractive quality of life, Cedar Hill is experiencing an influx of both startups and established companies.

Growth-minded companies are gaining handsome dividends from opportunities that exist throughout the City.

In addition to the growing business climate, Cedar Hill corners the market on natural beauty.

The Cedar Hill State Park and Dogwood Canyon Audubon Center allows residents and visitors access to the most uniquely diverse geological area, abundant wildlife, and the most breathtaking views in North Texas.

To facilitate and energize relocation and expansion, Cedar Hill offers aggressive economic development incentives.

CEDAR HILL ECONOMIC DEVELOPMENT 972.291.5132 285 Uptown Blvd, Bldg 100, Cedar Hill, Texas 75104 cedarhilledc.com

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The Colony is a growing city on the east side of Lewisville Lake, 25 minutes from downtown Dallas and 15 minutes from the Dallas Fort Worth International Airport, located along the Sam Rayburn Tollway. Home to approximately 40,000 residents with businesses and retail locating here daily, The Colony continues to maintain its “hometown” feel.

Affectionately known as “the city by the lake,” The Colony features 23 miles of shoreline along Lewisville Lake and two lake parks with boat ramps, camping, and many other amenities.

Golf courses within the city all provide outstanding lake views with two courses being recognized among Golf Magazine’s top five in Texas in 2010.

The Colony is the proud home of the nation’s largest home furnishings store, the Nebraska Furniture Mart of Texas, anchoring the 400-acre Grandscape development.

When complete, Grandscape will feature unique entertainment, dining, and retail venues.

KERI SAMFORD, Economic Development Director THE COLONY ECONOMIC DEVELOPMENT CORPORATION 6800 Main St., The Colony, TX 75056-1133 972.624.3127 edc@thecolonytx.org thecolonyedc.org

The McKinney Economic Development Corp.

(MEDC) was created in 1993 to support the development, expansion, and relocation of new and existing companies. The MEDC is an organization with a mission to work to create an environment in which communityoriented businesses can thrive.

PETER TOKAR III President and CEO MCKINNEY ECONOMIC DEVELOPMENT CORP. / CITY OF MCKINNEY 5900 S. Lake Forest Drive Suite 110 McKinney, TX 75070 info@mckinneyedc.com 972.547.7651 mckinneyedc.com

Centrally located between Dallas Fort Worth International Airport and downtown Fort Worth in affluent Northeast Tarrant County, North Richland Hills (NRH) is the third largest city in Tarrant County behind Fort Worth and Arlington. Rapidly growing, NRH added over 500 new single family homes valued over $350,000 in the past three years within the highly-rated Birdville and Keller ISDs. Growth is expected around two transit-oriented developments (TODs) along the Fort Worth Transportation Authority’s new commuter rail system, TEXRail. Scheduled for 2018, TEXRail will run along the famous Cotton Belt line connecting Downtown Fort Worth to DFW Airport along two separate NRH rail stops.

Business additions include the expansion of Santander Consumer USA into 200,000 SF and 1,650 employees, the new addition of Southwest ADI, a distributor that purchased and converted a former Sealy bedding plant into their corporate headquarters, and the addition of Digital Alchemy, a technology company occupying 24,000 SF of office space.

CRAIG HULSE Director of Economic Development 4301 City Point Drive North Richland Hills, TX 76108 817-427-6090 chulse@nrhtx.com www.nrhed.com

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The Real Estate Council Thanks You For Helping Us Build the City You’ve Imagined Volunteers Robert Acuna-Pilgrim, TBG Partners

Lauren Goodman, Invesco Real Estate

Brian Mullen, StreetLights Residential

Tillie Borchers, Civitas Capital Group

Derek Grego, Goldman Sachs

Sarah Ozanne, Steam Realty Partners

Hoshi Brooks, Perkins+Will

Travis Gunter, The Beck Group

Courtney Pogue, City of Dallas

Kimberly Byrum, Meyers Research, LLC

Robert Henning, Northwestern Mutual Real Estate

Jim Rainbolt-Bailey, Staffelbach

Andrew Henry, Hill & Wilkinson

Scott Rohrman, 42 Real Estate

Erreka Campbell, Polsinelli PC Kate Cavanaugh, Stewart Title Fernando Ceballos, Pape-Dawson Engineers Yang Chen, Perkins+Will Joe Chu, Thackeray Partners Brett Clark, 42 Real Estate, LLC Troy Daniel, Thackeray Partners Jackie Dyer, Munsch Hardt Kopf & Harr P.C. Seth Eaton, Winstead PC Amanda Ethridge, Haynes and Boone, LLP David Fazio, The Retail Connection Eric Fleps, ARCO/Murray Design Jennifer Gansert, Kimley-Horn Bradley Gaulden, EY Mike Geisler, Venture Commercial Real Estate Gilbert Gerst, BOK Financial Mandi Giles, The Beck Group

Emily Henry, Studio Outside Kim Hogan, KDC Zach Jacques, Independent Bank Suzan Kedron, Jackson Walker LLP Jaime Kelley, Invesco Real Estate Patrick Kennedy, Space Between Design Studio Greg Kraus, Invesco Real Estate Zach Lamp, HKS Kristi M. Leonard, JLL Capital Markets Edmund Lord, Diamond Realty Investments Kris Lowe, Capital Markets to JLL Matt Lucas, Kimley-Horn Karyn Martin, Interprise Design Joshua Millsap Jesse Montgomery, HPM

Marie Robirds, Kimley-Horn Meredith Rooker, OMNIPLAN, Inc. Adam L. Roossien, JLL Capital Markets Daunte Rushton, City of Dallas Matt Shem, Hill & Wilkinson Parker Sherrill, JLL Capital Markets Thomas Simpson, HR&A Advisors, Inc Brian Smith, Crescent Real Estate Equities Elizabeth Solender, Solender/Hall, Inc Chase A. Stone, Cawley Partners Randy Streig, 42 Real Estate, LLC Jeff Swope Rod Washington, Frost Bank Peter Yates, KDC *Volunteer names/companies as of time of printing

In-Kind Donors Ace Decor & Finishes, Inc

Kimley-Horn

Balfour Beatty Construction

Lundy Services

Bauhaus Interiors

Mechanical Partners, Inc.

BrightView Landscape

Mid Cities Erectors, LLC

Carrco Painting

MMW Fabrication

Chamberlin Dallas LLC

Oak Cliff Mirror & Glass

Corgan

Office Furniture Source

Gaedeke Group

OMNIPLAN, Inc.

Greyhawk Services LLC

Performance Door and Hardware, Inc

Hatfield Acoustical & Drywall, Inc.

Perkins+Will

Hill & Wilkinson

Property Solutions Network

Jackson Walker LLP

Republic Title of Texas, Inc.

Imagine.

Empower.

Impact.

SCHMIDT & STACY® Consulting Engineers, Inc. Spectra SOVA Hospitality Sterling Roof Systems Texas Building Specialties, LLC Trane Commerical Varidesk Venture Mechanical, Inc. Veritex Community Bank Winstead PC

JOIN TREC NOW AND BUILD THE CITY YOU’VE IMAGINED RECOUNCIL.COM

214 692 3600 PHONE 3100 McKinnon Street No. 1150, Dallas, Texas 75201

L LEADERSHIP LEADERSHIP DALLAS:

Building relationships that matter Hattie Peterson, Senior Vice President of Marketing and Communications, TDIndustries

BY SANDRA ENGELLAND

Hattie Peterson can trace landing a dream job to her involvement in Leadership Dallas.

At an event for Peterson’s Leadership Dallas Class of 2013, Jack Lowe Jr. spoke to the group about servant leadership, the model he followed as Chairman of the Board at TDIndustries, and the importance of accountability as a member of the Dallas ISD School Board.

“He talked about the school district’s financial struggles. While he wasn’t a part of the board when the problems occurred, he said, ‘I’m accountable. It’s my responsibility to do what I need to do to make this right,’” Peterson says.

She was so moved by his message that she was eager to apply for an opening when company officials sought a new marketing director.

As the Senior Vice President of Marketing and Communications, Peterson helps get out the message about TDIndustries’ approach to serving customers and the community.

“I’m really passionate about providing value and being that trusted partner to our clients and to the community,” she says. “I emphasize the importance of face-to-face communications and trying to accelerate the speed of trust.”

Every project encounters obstacles, Peterson says, but the parties can find solutions and move forward faster if they’ve established a positive working relationship.

Lowe — who also served as CEO from 1980 to 2004 — retired from the company’s board at the end of 2016, but his model of serving customers, the community, and employees continues as part of TDIndustries’ DNA, Peterson says.

While the company has grown far beyond its start in 1946 as a small Dallas air-conditioning business to open offices throughout Texas and Phoenix, Arizona, it maintains a strong presence in North Texas.

Peterson says that the company’s biggest recent mechanical construction projects include the new Dickies Arena in Fort Worth, Arlington’s Globe Life Field, Texas Scottish Rite Hospital in Frisco, Dallas Fort Worth International Airport’s massive remodeling, and JPMorgan Chase in Frisco.

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In addition to designing and building air-conditioning, plumbing, and electrical systems, TDIndustries also provides service on systems for a variety of local clients such as Denton ISD, the city of Coppell, and American Airlines headquarters in Fort Worth.

For Peterson, serving others is a theme that goes beyond the workplace, and Leadership Dallas plays a role there, too.

Each year, up to 55 people are selected to participate in Leadership Dallas, a 10-month educational program to develop leaders in the region. As part of their training, members select, develop, and execute a community service project.

Peterson’s Class of 2013 established the Leadership Dallas Reading Advancement Center with the Oak Cliff Boys & Girls Club to enhance the reading skills of area kids.

She is drawn to projects such as the reading center because of the focus on children.

“I’ve always had a passion for youth and education,” Peterson says.

Both her parents were involved in education. Her father worked at a university and her mom was a fifth-grade teacher.

“My parents worked hard to ensure my brother and I had outside experiences to enhance our education,” Peterson says.

She remains passionate about helping children learn. Peterson has been involved with Big Thought, a youth development organization. Peterson met Byron Sanders, the CEO of Big Thought, through Leadership Dallas. Big Thought aims to help at-risk kids develop creativity and critical thinking skills through camps, after-school programs, and academic support.

Peterson also worked with kids through a foundation she started called Our Lands and Waters. The group’s mission is to revitalize parks around Corps of Engineers’ lakes.

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C COMMUNITY TDIndustries: Key projects Dickies Arena Fort Worth

Globe Life Field Arlington

Texas Scottish Rite Hospital Frisco

Dallas Fort Worth International Airport

JPMorgan Chase Frisco

CALENDAR OF EVENTS Make plans now to attend these upcoming real estate and business events. For information on programs hosted by The Real Estate Council, visit recouncil.com. For details on events presented by the Dallas Regional Chamber, visit dallaschamber.org.

2020.

JANUARY 9 DRC Annual Meeting Hilton Anatole

“It’s a place for people in urban areas to get in nature,” she says.

In recent years, the group offered water safety programs for kids and took school groups on field trips to see dinosaur tracks at Lake Lewisville.

Peterson remains active with Leadership Dallas through its alumni programs. This year, she is helping organize the 2020 Leadership Dallas Alumni Community Day. On Jan. 25, alumni members will spend half a day helping in a variety of projects, from a Dallas elementary school and Trinity River Mission to Dallas Animal Services and Brother Bills Helping Hand, which operates a food pantry and community clinic.

Outside of business hours, Peterson is “a classic minivan mom,” taking her two kids to cheer, dance, and church events, with a lot of help from her husband, Carl.

She’s thankful for her busy life with family, work, and the community.

“I’m blessed to be in the DFW Metroplex building solid relationships because it’s the one-on-one relationships that really matter,” Peterson says.

Leadership Dallas, the flagship program of the Dallas Regional Chamber for leadership development, is aimed at increasing the leadership pool for community activities in the Dallas area.

Visit dallaschamber.org for more information.

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The DRC’s biggest event of the year celebrates business and community leaders who make Dallas a vibrant and dynamic place to live, work, and do business.

Cynt Marshall, CEO of the Dallas Mavericks, is the keynote speaker

MARCH 6 23rd Women’s Business Conference

Presented by Jackson Walker LLP Hyatt Regency The theme, “The 100,” marks the centennial of the 19th Amendment’s passage, which granted women the right to vote.

Through a full day of programming, we will convene executive and young professional women from across the region to celebrate the modern professional woman and honor those who have led the fight for inclusion and equality.

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C COMMUNITY

CORNERSTONE COMMUNITY LAUNDROMAT OPENING Laundry services returned to the Forest District in South Dallas for the first time in decades on September 25 as officials from The Real Estate Council (TREC) and Cornerstone Baptist Church cut the ribbon on the Cornerstone Community Laundromat. The laundromat was constructed as part of the Dallas Catalyst Project—selected

by TREC’s young professionals members as their annual service project—and considered a key priority for Cornerstone in revitalizing the Forest District neighborhood. We’d like to thank Cornerstone for their partnership and leadership in bringing the project to fruition, Balfour Beatty Construction for its help in constructing the laundromat, Varidesk for their generous furniture donation, and Soulgood Vegan and Vegetarian Food Truck for keeping everyone fed during the grand opening!

FROM LEFT: CORNERSTONE BAPTIST CHURCH PASTOR CHRIS SIMMONS, VARIDESK PRESIDENT AND COO JEFF LAMB, TREC PRESIDENT AND CEO LINDA MCMAHON, AND VARIDESK CEO JASON MCCANN, PRIOR TO THE GRAND OPENING OF THE CORNERSTONE COMMUNITY LAUNDROMAT.

SOULGOOD VEGAN AND VEGETARIAN FOOD TRUCK CATERED THE RIBBONCUTTING CEREMONY. 6 6 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W

CORNERSTONE BAPTIST CHURCH PASTOR CHRIS SIMMONS AND STAN HART OF BIKE FRIENDLY SOUTH DALLAS–WHOSE CORNERSTONE-OWNED FACILITY WAS RENOVATED BY TREC’S 2019 ASSOCIATE LEADERSHIP COUNCIL CLASS–CHAT PRIOR TO THE GRAND OPENING. FA L L 2 0 1 9

L LEADERSHIP MICHAEL KRYWUCKI

MICHAEL KRYWUCKI:

TREC COMMUNITY FUND CHAIR KATE CAVANAUGH ADDRESSES GUESTS DURING THE RIBBON-CUTTING CEREMONY.

HELPING OTHERS FIND SOLUTIONS DRIVES REAL ESTATE ATTORNEY’S CAREER

BY SANDRA ENGELLAND

DONALD WESSON, PROGRAM DIRECTOR FOR CORNERSTONE BAPTIST CHURCH, THANKED EVERYONE INVOLVED WITH THE PROJECT IN HIS REMARKS.

PASTOR CHRIS SIMMONS OF CORNERSTONE BAPTIST CHURCH EMBRACES WITH A GUEST PRIOR TO THE GRAND OPENING.

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Whether its practicing law, partnering with local charities, or mentoring the leaders of tomorrow, Michael Krywucki aims to help others thrive just as he has from opportunities and mentors in his life.

Krywucki, a real estate and transactional attorney and shareholder at Munsch Hardt in Dallas, says he decided to become a lawyer after seeing what his stepfather accomplished in the profession.

“I saw how he got to help people,” Krywucki says. “You get to bridge the gap between a person’s need and a solution.”

In almost a quarter of a century with Munsch Hardt, Krywucki has helped clients in a variety of ways, from helping launch Legend Airlines and selling Ross Tower in Dallas to working on the mixed-use development Gables Water Street in Las Colinas.

Gables Water Street, built by Atlanta-based Gables Residential on Lake Carolyn, includes upscale apartments, a park, trails, retail shops, and restaurants.

“I’ve supported them in all their retail-leasing matters,” Krywucki says. “I’ve been with them for the entire lease-up of the project.”

Although he continues to do plenty of work in real estate for clients, most of his time these days is spent on a variety of transactional matters.

As a transactional lawyer, in addition to clients’ real estate acquisitions, development, and

leasing, he handles legal framework for internal practices, deals with vendor engagements, and more.

His biggest current client is Toyota Motor North America in Plano. Much of Krywucki’s work at Toyota is confidential, but a recent high-profile deal he worked on was the deployment of the largest corporate onsite solar array system in Texas at Toyota North America’s $1-billion headquarters.

“My approach to law is you pay attention, understand who your client is and what their needs are, and try to address those needs in the best way to advance their interests,” he says. “You try to treat every transaction as if it was your deal.”

When he’s not at work, Krywucki wants to enrich the lives of others because others invested in him.

He considers his involvement in The Real Estate Council (TREC) as “the most formative and contributing participation I’ve had in any organization.”

He first got involved in TREC in the early ‘90s, working on membership and professional services initiatives. In 1997-98, he was a member of the Associate Leadership Council (ALC) class. Since then, he’s served several terms on various TREC boards (he’s secretary this year) and chaired the ALC Class of 2010-11. In 2012, Krywucki chaired the organization’s biggest fundraiser, FightNight.

Krywucki calls his involvement in TREC “a little bit of a fountain of youth” because of the opportunity to get to know young, ambitious real estate professionals.

Krywucki says that although those under 35 may approach life a bit differently, they are just as eager as he was to gain mentors and to help others.

“TREC is something of a one-stop shop, not just for networking, but a chance to give back to the community, and for education,” he says.

Each ALC class adopts a community service project, raises funds for it, and performs much of the labor. FightNight provides seed money, but class members must multiply that amount several times over through donations of materials, services, additional funds, and sweat equity.

In 1998, Krywucki’s class converted a Dallas liquor store into a computer center for the community. The class he chaired in 2011 renovated a significant portion of Promise House for homeless youth in Dallas, adding more housing and storage space.

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VIEW FROM THE TOP

BY LANCE MURRAY

WHAT FIRST ATTRACTED PIONEER NATURAL RESOURCES TO THE NEW HIDDEN RIDGE DEVELOPMENT AS THE NEW HOME FOR THE COMPANY? We were first attracted to the location because of its close proximity to our current building, which provided minimal disruption to employees’ commute to work. The site is also a beautiful piece of property and was the location of the old Carpenter Ranch. The building is centered over the original ranch headquarters, and it sits on a ridge, which is one of the highest points in Irving, allowing for spectacular views. Also, in designing the building, we tried to leverage the natural beauty of the site, leaving much of the original vegetation intact.

HOW WILL HIDDEN RIDGE MEET THE NEEDS OF PIONEER NATURAL RESOURCES AS A PLACE TO GROW ITS BUSINESS?

BILL HANNES Senior Vice President of Special Projects, Pioneer Natural Resources

Pioneer Natural Resources is relocating its headquarters within Irving to Verizon’s Hidden Ridge development, the 150acre mixed-used project being built in partnership with real estate development firm KDC. It’s a state-of-the-art, high-tech, 5G-enabled development that will give Pioneer its own building from which to operate. Move-in should be completed in December. Bill Hannes, senior vice president of special projects at Pioneer, took time to detail the move and how it will benefit the longtime oil and gas firm to grow into the future.

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Our new Pioneer headquarters was designed with our employees in mind. The goal was to create an efficient and technologically advanced workspace that caters to the needs of our employees and inspires them to be innovative. The new headquarters offers individual offices but has many collaborative workspaces throughout the building. Many amenities have been designed for our employees including a fitness center, medical clinic, daycare, cafeteria, wellness rooms, walking trail, and basketball and sports court. The building was not only built for our current employees to perform their work in a great environment, but also will be a key piece to attract and retain future employees.

HOW DOES BEING LOCATED AT HIDDEN RIDGE BENEFIT YOUR EMPLOYEES?

The new location gave us the opportunity to work in a newly constructed, single-tenant building. As a result, we were able to design and build it solely to suit Pioneer’s needs. Also, since we are leasing the building, we did not have to invest any of our own capital in the building.

PIONEER IS AIMING FOR LEED SILVER CERTIFICATION. WHY ARE GREEN BUILDING STRATEGIES IMPORTANT FOR YOUR NEW HOME? Actually, we feel confident that we will achieve LEED Gold certification. For many years, Pioneer has been an advocate of environmental sustainability, not only in our words, but in our actions. We actively promote environmental stewardship, encouraging Pioneer employees to continue improving their environmental focus and empowering them to do the right thing each and every day. We wanted to ensure our new building was built in a manner that prioritized stewardship and reflected a company core value: No job is so important that it cannot be done in a safe and environmentally sound manner.

PIONEER HAS A LONG HISTORY OF SUCCESS IN THE OIL AND GAS SECTOR. HOW WILL YOUR NEW CAMPUS HELP YOU INNOVATE IN YOUR INDUSTRY?

The new headquarters provides an inspiring work environment for employees to continue developing the best practices and innovations in the business. We believe leveraging our current employee workforce and attracting new talent will keep us at the forefront of our industry.

HIDDEN RIDGE WILL BE A TECHNOLOGICALLY ADVANCED DEVELOPMENT. HOW WILL 5G CAPABILITY AND OTHER TECH INNOVATIONS AT HIDDEN RIDGE HELP PIONEER? The state-of-the-art facility is designed to enhance our innovation and efficiency through technology centers designated for our drilling, completions and operations teams. The remote operating hubs enrich collaboration between field operations, engineering and geoscience teams to promote continuous improvement through real-time data visualization and analysis.

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