DFWREALESTATEREVIEW.COM
THE
PARK
EFFECT
HOW KLYDE WARREN PARK UNIFIED DALLAS’ URBAN CORE AND BECAME A CATALYST FOR NEW DEVELOPMENT
FALL 2017
ALSO INSIDE:
MEGA DEALMAKERS INDUSTRIAL ROUNDTABLE THE CRANE REPORT
Design with community in mind Land Planning Civil Engineering Landscape Architecture Survey/Geomatics Transportation Planning & Traffic Engineering
Supporting our communities from local offices in Dallas, Fort Worth, and Plano. stantec.com
WHITLEY PENN
UNDERSTANDS... Breadth of knowledge and depth of experience are essential in an ever-changing real estate market. For more than 30 years, our professionals have provided audit, tax, fund administration, and consulting services to real estate developers, lenders, contractors and investors around the country.
Austin | Dallas | Fort Worth | Houston
whitleypenn.com
WELCOME TO
3201 DALLAS PARKWAY 12 Stories 300,000 Square Feet Class AA Building
AMENITIES
Dynamic Art Throughout the Building 24/7 Onsite Security 100% Structured Parking Corporate Lounge (2nd Floor) Conference/Training Center Outdoor Event Lawn & Meeting Space 3,500 Square Feet Fitness Center
THE ART OF WORK LIKE WHAT YOU DO - LOVE WHERE YOU DO IT. HALL Park is redefining the workplace in the dynamic Frisco market. Featuring 17 buildings, HALL Park has more than 200 works of art, picturesque lake views and amenities including HALL Sip wine lounge, HALL Active fitness center, HALL Eats food truck park, HALL Connect conference center and outdoor meeting space and HALL Plaza retail and restaurants. HALL Park offers flexibility and can customize to fit your needs.
FOR LEASING INFORMATION:
KIM BUTLER, DIRECTOR OF LEASING 972.377.1100 | KBUTLER@ HALLGROUP.COM
BRAD GIBSON, LEASING MANAGER 972.377.1124 | BGIBSON @ HALLGROUP.COM
CYNTHIA COWEN, LEASING MANAGER 972.377.1101 | CCOWEN @ HALLGROUP.COM
ON THE COVER: Construction continues on Park District, a mixed-use development on the Uptown side of Klyde Warren Park. Photo by Michael Samples
FALL 2017
CONTENTS
23 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 International Outreach . . . . . . . . . . . . . . . . 15
THE CRANE REPORT
38 ROUNDTABLE
Who’s Building What, Where . . . . . . . . . 23
SCORECARD DFW’s Top Office, Industrial, and Retail Leases . . . . . . . . . . . . . . . . . . . . . . 31
ROUNDTABLE Taking Stock: Industrial real estate experts evaluate the present and look to the future . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
FA L L 2 0 1 7
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 / 3
E XC L USI V E LY P UB L ISHE D B Y D MAGAZINE PARTNERS
50 FEATURE
DFWREALESTATEREVIEW.COM
Mega Dealmakers:
The people behind the deals that have shaped the Dallas Region . . 50
D MAGAZINE PARTNERS BUSINESS GROUP PUBLISHER Josh Schimmels
PUBLISHER Quincy Curé Preston 214-523-5215 quincy.preston@dmagazine.com
MANAGING EDITOR Lance Murray
CREATIVE DIRECTOR Michael Samples CONTRIBUTING EDITOR
60 ANATOMY OF A DEAL
Julia Bunch
The Park Effect
CONTRIBUTING WRITERS Kerry Curry
How Klyde Warren Park unified Dallas’ urban core and became a catalyst for new development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Nicholas Sakelaris
TOOLBOX
Robert Cawallader
SPECIAL ADVERTISING SECTION
DIRECTOR OF SALES Kyle Moss 214-523-5247 kyle.moss@dmagazine.com
BUSINESS DEVELOPMENT MANAGER
Economic Development Guide Profiles of cities around the region . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Stephanie Mojonnet 214.523.0311 stephanie@dmagazine.com
MEDIA DEVELOPMENT MANAGER
COMMUNITY
4 / 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
Heather Noel Amy Wolff Sorter
Labor Market Spotlight Las Colinas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 Rockwall / Terrell / Forney . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
Placemakers: Hamilton Properties Corp. . . . . . . . 19 The Real Estate Council, Impact Investors . . . . . . . . . . . . . . . . 77 Dallas Regional Chamber, Top-Level Members . . . . . . . . . . . . . 79 Dallas Regional Chamber, Leadership Dallas . . . . . . . . . . . . . . . 80
Dave Moore
Vanessa Santillan
Calendar of Events . . . . . . . . . . . . . . 81 Photos: TREC Speaker Series: Danielle DiMartino Booth . . . . . . . 82 The Real Estate Council, TREC Leadership . . . . . . . . . . . . . . . 83 View From the Top: Scott Moore . . . . . . . . . . . . . . . . . . . . . 84
INTERNS Jewels Clark Meredith Mills Christina Phillips D’Anzia Robertson
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. ©2017 All rights reserved. No part of ths 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.
WE PLAN. IT’S BUILT. Urban Design Entitlements/Incentives Infrastructure
REPRESENTATIVE PROJECTS CITYLINE TOD TRINITY LAKES TOD MONTGOMERY RIDGE HERITAGE CREEKSIDE DOWNTOWN MCKINNEY DOWNTOWN ROANOKE CHISHOLM TRAIL PARKWAY DALLAS CITYMAP (depicted)
gatewayplanning.com
214.529.7430 | 817.348.9500
WELCOME
A letter from the Dallas Regional Chamber and The Real Estate Council 2017 CHAIRMAN OF THE BOARD Hilda Galvan Partner-in-charge, Jones Day
CHASING AMAZON:
PRESIDENT & CEO
THE REGIONAL STORY The unprecedented Request for Proposal (RFP) delivered by Amazon to our inboxes a few weeks ago has set the country on fire. Every major city, metro region, and state is pulling out all the stops to lure the ubiquitous behemoth to their communities. We in Dallas-Fort Worth are not above imagining what an Amazon headquarters would do for our region. The creation of 50,000 jobs paying an average wage of $100,000 a year is tantalizing — even for our North Texas region, which has been growing more than any other in recent years. Since the end of 2016, employment alone has grown by almost 47,000 jobs. In the last 10 years, our region has increased employment by nearly 700,000 jobs* (Bureau of Labor Statistics). An additional 50,000 jobs over the next decade will only continue this impressive trend — especially when you consider the multiplier effect of other businesses that will grow, relocate, or be created just to serve Amazon in our region. Amazon’s halo effect would shine on everyone in North Texas. What is Amazon looking for? North Texas has it all — beginning with our DNA, which causes us to always look to the future and to innovate. Look at what Texas Instruments did for the computing industry. We are the global headquarters for AT&T. We have a very diverse economy. Amazon bringing those 50,000 jobs will add to that diversity, but we will not become a “company town” just because of their presence. Having them in our region will certainly add to our cache as a magnet for all kinds of businesses, both large and small. And while we’re already an innovation economy, we are not yet globally recognized as such. However, no other region in the nation can claim such a convergence of futuristic transportation technology – the first high-speed rail system in the U.S.; a finalist site for the Hyperloop project; one of two global locations for Uber Elevate (the other: Dubai). We are home to 22 Fortune 500 companies, second only to New York City. Companies recently announcing or opening
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
Dale Petroskey CHIEF OPERATING OFFICER & CHIEF FINANCIAL OFFICER Pat Priest DALE PETROSKEY President and Chief Executive Officer Dallas Regional Chamber
LINDA McMAHON President and Chief Executive Officer The Real Estate Council
shiny new campuses in Dallas-Fort Worth include Toyota, Charles Schwab, Boeing, Liberty Mutual, Raytheon, and State Farm. They see the benefits of being in our region and serve as beacons to others. A lot of leaders have said that getting Amazon is the equivalent of getting the Olympics. We think it is much bigger and better than that, given how long the tail of economic impact would be. And as with other big projects that we have won, if Amazon does decide to locate in our region, it will be a win for all of us. We have been preaching regionalism for years — and this bid reinforces what that really means. Every city in the area that wants to put its incentives and sites to the test in the regional response will be included. The challenge and opportunity that we have is to tell a unified regional story by including every individual city that participates in the process. The spirit of cooperation and communication throughout this process has been incredible. We are proud that individual cities have joined together in showing the world the power of what we can do together. So, we are polishing up the RFP response to Amazon — and sharing with them what we already know: North Texas represents the future — the new economy, not the old establishment. We are excited for this privilege of showcasing our region to the world, and regardless if Amazon decides North Texas is in their destiny, this exercise has served to reinforce our reason for being — to strive every day to make this the best place in America to live, work, and play. We have a great story to tell — and we are always proud to share it.
COMMUNICATIONS & MARKETING, SENIOR VICE PRESIDENT Darren Grubb RESEARCH AND INNOVATION, SENIOR VICE PRESIDENT Duane Dankesreiter RESEARCH AND INNOVATION, MANAGING DIRECTOR Eric Griffin
2017 CHAIRMAN Greg Kraus Invesco VICE CHAIR Ran Holman Cushman & Wakefield PRESIDENT & CEO Linda McMahon VICE PRESIDENT, LEADERSHIP & CULTURE Holland Morris VICE PRESIDENT & FOUNDATION DIRECTOR Robin Minick CFO Carla Brandt
FA L L 2 0 1 7
UPFRONT QUINCY CURÉ PRESTON Publisher Dallas-Fort Worth Real Estate Review
A letter from the Publisher
Industrial, retail, multifamily, office. All the real estate sectors in Dallas-Fort Worth are moving full steam ahead, continuing to fuel North Texas as one of the top markets in the nation. In this edition of the Real Estate Review, we examine how Klyde Warren Park has done more than simply connect Uptown and Downtown. It’s driving a development boom around its edges as office and residential tenants take advantage of its green lawns and inviting spaces. Our cover story details the origins of Klyde Warren Park’s effect on the surrounding area, from its inception to its current place as a development magnet. With the Park District tower development moving toward completion, business and residential development by the deck park continues to unite Uptown, the Arts District, and downtown Dallas. You’ll find that story beginning on Page 60. DFW is a major real estate force in Texas, which means deals here are big like the state. We profile eight of the region’s biggest dealmakers, and the projects they’ve spearheaded, beginning on Page 50. All across North Texas, industrial properties help move goods locally and across the nation. Fulfillment centers send orders out to the doorsteps of e-commerce customers. In this edition, our roundtable experts look at how new technologies, increased opportunity, and available land are forging a strong future in the industrial real estate sector. You’ll find it beginning on Page 38. Beginning on Page 69, our Labor Market Spotlight looks at Las Colinas, the giant business park in Irving that is home to major corporations, the Music Factory development, and strong residential growth. Our Placemakers feature looks at how Larry and Ted Hamilton of Hamilton Properties have been reshaping the downtown area by reimagining old properties and giving them new lives — attracting new residents and visitors to the urban core in the process. That feature begins on Page 18. On Page 84, PwC Dallas Managing Partner Scott Moore tells us about why the global consulting firm chose to relocate its Dallas office to the Park District tower adjacent to Klyde Warren Park. As always, you’ll find the biggest lease transactions in office, retail, and industrial in DFW in Scorecard, starting on Page 31, and the latest in construction projects beginning on Page 23 in the Crane Report. Look for extended content on our website, www.dfwrealestatereview. com, and in our Facebook feed. Let us hear from you.
Quincy Curé Preston Publisher
8 / 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
FA L L 2 0 1 7
WR STARKEY MORTGAGE, LLP IS NOW
NEW NAME. SAME GREAT SERVICE. What’s in a name? Everything. Over the years, Starkey Mortgage has built a stellar reputation on exceptional customer service. Today, as Certainty Home Loans, it’s business as usual, only better... and ultimately more. We are still the same team, ownership, and management—a group of great people committed to delivering outstanding customer service, offering quality products, and making our customers’ dreams come true.
Be sure to visit CertaintyHomeLoans.com
Certainty Home Loans, LLC, f/k/a WR Starkey Mortgage, LLP, 6101 W. Plano Parkway, Plano, TX 75093 (NMLS#2146). 1-866-599-5510. Copyright©2017. All Rights Reserved. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates, and programs are subject to change without prior notice. All products are subject to credit and property approval. Not all products are available in all states or for all dollar amounts. Other restrictions and limitations apply. Certainty Home Loans, LLC is required to disclose the following license information: Texas Mortgage Banker Registration No. 2146, NMLS ID# 2146 (www.nmlsconsumeraccess.org)
FOUNDATIONS 20.5 MILLION SF
The recent pace has come in closer to 5 million square feet a year, as tenants look for space in new buildings or optimize floor plans to meet their individual needs, JLL says. The commercial real estate community is abuzz about future leasing possibilities, with nearly 2.5 million square feet of office space under construction or soon to break ground in the Dallas
urban center. Tenants with leases expiring between 2020 and 2023 account for nearly 6 million square feet of space in the urban core. Leasing velocity should stay robust for the years ahead, as some may choose to leave the urban core, while others may choose new buildings or renew/ restack their current buildings.
45
URBAN CORE OFFICE SPACE
40
(CBD, Uptown, Central Expressway and Preston Center)
35
2,500,000 2,000,000
30 1,500,000
25 20
1,000,000
15 10
500,000
5 0
2020
2021 SPACE EXPIRING
2022
2023
0
SOURCE: JLL
NUMBER OF EVENTS
CHART-TOPPING ECONOMIC GROWTH PROJECTED FOR TWO NORTH TEXAS COUNTIES Two North Texas counties are projected to be among the nation’s fastest-growing economies over the next fi ve years. According to a forecast by Oxford Economics, Denton, and Collin counties in North Texas and Montgomery County in South Texas are expected to top the nation’s county economies. Oxford said that over the next fi ve years, the fastest-growing cities in the United States will be in “sprawling, suburban metro areas,” which it described as places such as Austin. Driving the assessment is that Americans are leaving high-cost, densely populated cities in search of cheaper areas with strong job growth, Oxford said. According to the forecast, Denton and Collin counties ranked third and 10th, respectively, in net migration and immigration from 2009 through 2013. During that period, Denton County gained 23,000 residents, and Collin County gained 8,800 people.
PROJECTED ECONOMIC GROWTH IN GDP DENTON COUNTY, TX - 4.1% COLLIN COUNTY, TX - 4% MONTGOMERY COUNTY, TX - 3.4% SOURCE: Oxford Economics
1 0 / 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
What’s happening with office space in the Dallas urban core? New research by JLL suggests plenty. JLL says that Class A and B office leasing activity in the urban core typically has averaged roughly 4 million square feet a year over the past decade. During the tech boom of the late 1990s, however, leasing activity nearly doubled that pace, JLL says.
SPACE EXPIRING (SQUARE FEET )
An unprecedented building boom is underway across the globe, and North Texas is playing a significant role. A new report from Cushman & Wakefield predicts that more than 700 million square feet of office space will deliver globally between 2017 and 2019. Dallas is projected to rank No. 1 in office DALLAS IS completions in the PROJECTED TO Americas, at 20.5 RANK NO. 1 million square feet. IN OFFICE Dallas has COMPLETIONS IN gotten into trouble THE AMERICAS AT in the past for overbuilding. That doesn’t seem likely for this cycle, however, as the region is expected to create 92,700 office jobs during the same period. This puts it at No. 2 in the U.S., slightly behind New York City, which is nearly twice the size of Dallas. “Job growth is expected to continue keeping pace with construction,” says Curtis Hornaday, Dallas Market Research Director for Cushman & Wakefield. “Typically, space planners allocate about 200 square feet per employee, which adds up to more than 18.5 million square feet.” Cushman & Wakefield is currently tracking 59 companies looking for office space in the region, for a total of more than 5.6 million square feet. The firm’s study revealed that Dallas ranked No. 6 in the world for rent growth during 2014-2016, at 9.9 percent. It’s expected to slow and stabilize to 1.9 percent between 2017 and 2019. Overall, Dallas is expected to maintain a “neutral” status over the next several years, striking a healthy balance between tenant-favorable and landlord-favorable conditions. In the United States, newly built space has accounted for 65 percent of all office absorption since 2012. Developers are hoping that trend continues. They are “certainly placing some big bets on new product, but the bulk of it is concentrated in the major global cities, which is precisely where the greatest appetite is for these shiny new buildings,” says Kevin Thorpe, Cushman&Wakefield’s Global Chief Economist.
BY LANCE MURRAY
OFFICE FORECAST: THE DALLAS URBAN CORE
NUMBER OF TENANTS
DALLAS EXPECTED TO BE A TOP U.S. OFFICE GROWTH MARKET THROUGH 2019
A baseline for the region’s future
WILL COUNTY, IL - 3.2% SAN FRANCISCO COUNTY, CA - 3.2%
FA L L 2 0 1 7
F FOUNDATIONS REPORT: E-COMMERCE FACILITIES ARE CLOSE TO CONSUMERS
DALLAS REGION BOASTS THE MOST LEED-CERTIFIED RESIDENTIAL CONSTRUCTION IN TEXAS When it comes to Leadership in Energy and Environmental Design-certified (LEED) projects, North Texas is a bright spot in the state. Dallas, Fort Worth, and Arlington have more than half of the 6,945 LEED-certified residential construction projects in Texas, according to an analysis by the apartment locator website ABODO. “Texas is one of our best markets for LEED building. The residential sector in Texas has the second most LEED-certified single and multifamily residences in the country,” U.S. Green Building Council Project manager Nick Brousse told Anna Clark for her GreenBiz column. The LEED rating system was created by the USGBC to evaluate a building’s environmental performance and to move the market toward sustainable design. Thom Powell, architect and director of sustainable design at the Dallas-based design
firm GFF, told Clark the road to green growth has not been an easy one because building owners tend to focus solely on construction costs and have a tendency to pass along operation costs to the end user. “When I joined the USGBC North Texas Board of Directors in 2009, our collective goal was market transformation,” Powell said. Since then, the green building movement has been doubling globally every three years and currently, there are about 1.3 million residential square feet of green construction in the U.S. alone, according to ABODO’s analysis. That’s enough to cover about 89 percent of Staten Island or roughly 23,000 football fields. By 2018, LEED-certified construction is expected to contribute nearly $30 million to the nation’s gross domestic product — a number that is likely to grow as the USGBC certifies more than 2.2 million new square feet of LEED space daily.
6.9 MILES
SENIOR HOUSING SECTOR CONTINUES TO THRIVE
2017 2016 2015 2014
SENIOR HOUSING CONSTRUCTION EXPECTATIONS What is your outlook for the construction starts of senior housing units over the next 12 months? 22%
51%
14% 6% 8%
INCREASE SIGNIFICANTLY
21%
55%
22%
39%
31% 50%
INCREASE SOMEWHAT
REMAIN THE SAME
8%
23% 26%
terms of boomers hitting retirement age,” Scott Stewart, a managing partner at Capitol Seniors Housing, a private equity-backed real estate acquisition, development and investment management firm Washington, D.C., tells National Real Estate Investor. “The fast-paced growth of that population in that sector
5%
DECREASE SOMEWHAT
15%
DECREASE SIGNIFICANTLY
SOURCE: NREIOnline.com
The steady stream of new supply in the senior housing market has been a hot topic of conversation in the construction industry, and survey results from the fourth annual NREI/NIC Senior Housing Market Study shows enthusiasm for that sector remains strong. It’s a real estate sector that has shown steady activity in Dallas-Fort Worth, one of the leading locations for senior housing in the nation. Construction of senior housing across the nation continues to set a steady pace, with its share of existing inventory maintaining a robust pace of 5.8 percent in the second quarter, according to a report in National Real Estate Investor. Demographics and an increased focus on updating outdated product are two major drivers in the industry. “As active as the market is with the product that we have today, we are looking at the tip of the iceberg in
is going to make today’s discussion of overbuilding obsolete, because there just aren’t enough places for everybody today.” In the nation’s biggest metro areas over the past year through June, NREI reports there has been roughly 35,000 units added to the stock of senior housing inventory.
DALLAS REGION LEADS NATION IN SELF-STORAGE DEVELOPMENT If you need a place to store things under lock and key, Dallas-Fort Worth is the top place in the nation to find a storage space, according to a new report released by the self-storage brokerage Argus Self Storage. DFW leads the nation in the amount of self-storage space under development — more
FA L L 2 0 1 7
than 9 million square feet. That’s a 16 percent increase over the existing supply, according to the report. Here are few more numbers to show just how big DFW is: 164 projects under some stage of development this year — 49 planned, 82 under construction or awaiting certificate of occupancy, and 33 sites in
the lease-up stage, Argus reported. We’re one of the most oversupplied storage markets in the nation, according to the report. The report looked at development in 35 metropolitan areas, and DFW led secondplace Miami (70 projects) by a large margin. Miami, however, is considered undersupplied.
Real estate firm CBRE has taken a look at the proximity of e-commerce facilities around the population centers in the U.S. and has found they are positioned between 6 and 9 miles from the center point of the population areas they serve. That holds true in the sprawling Dallas-Fort Worth area, where people imagine wide-open spaces. Facilities in DFW are, on average, 6.9 miles from consumers, CBRE said. That ranks us among the top six out of the 15 largest metro areas in the nation. Distribution facilities are a foundation for AVERAGE rapid-delivery service that DISTANCE FROM didn’t exist on this scale as E-COMMERCE recently as a few years ago, FACILITY TO CBRE said in its new report. CONSUMER IN THE CBRE analyzed the location of last-mile DALLAS REGION: distribution facilities opened in the past two years in the 15 biggest U.S. population centers. CBRE found that denser cities tended to have shorter average distances, such as the 6-mile average in San Francisco and the 6.3-mile average in Philadelphia. But cities that are more spread out have more distant averages, such as 7.5 miles in Houston, 8.5 miles in Phoenix and 9 miles in Southern California’s Inland Empire, CBRE said. “As consumers grow accustomed to purchasing almost everything online, they are also expecting delivery times to remain the same regardless if they have ordered a small electronic or a large home furnishing. As a result, it is driving the need for more finalmile facilities,” says Ryan Keiser, senior vice president with CBRE in Dallas. “The type of product being shipped (e.g. an iPhone vs. a sofa) and how it is being shipped is a key factor in the types of final-mile facilities that are being established in close proximity to both primary and secondary population centers.” The close proximity of the last-mile facilities to huge populations of customers makes the growing expectation of shoppers for nearly instantaneous delivery of their orders closer to a reality. “These close-in fulfillment centers have proliferated within the past two years, underscoring the need for retailers to have large batches of inventory within 10 miles of most of their customers so they can fulfill orders as rapidly as possible,” David Egan, CBRE global head of industrial and logistics research says in the study. “This is an entirely new link in most supply chains that delivers on the promise of fast, super-high-performance delivery.” Last-mile distribution centers are the final point of distribution for goods before they arrive on customers’ doorsteps. CBRE focused on newly opened distribution centers of less than 200,000 square feet in the nation’s top 15 markets.
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 / 1 1
F FOUNDATIONS
A GLOBAL PERSPECTIVE ON CAPITAL MARKETS BY HE ATHER NOEL
JIMMY HINTON, HFF
The Sept. 13 “Industry Insights” event from The Real Estate Council and Real Estate Deal Sheet offered a global perspective on capital markets. Keynote speaker Jimmy Hinton, managing director of HFF, kicked things off with an overview of market trends and the factors enticing foreign investors into U.S. real estate. Following his presentation, real estate experts took a deeper look at international capital in a panel moderated by CBRE’s Jeanette Rice. Here are some of the takeaways:
Certainly you’ve seen Chinese capital come into multifamily development projects here in Dallas and elsewhere in the U.S. There’s a lot of concern on whether that funnel’s going to stop, and my answer is, ‘no it’s not.’
JACK FRAKER, CBRE Our asset class [industrial] is finally one of the most popular asset classes in the world. All of the foreign investors that we’ve worked with are very interested in getting into this sector. … The thing about industrial real estate these days is the fundamentals are at an all-time high so you’re seeing very tangible examples of rental rate growth.
MICHAEL ZIETSMAN, JLL There is a significant amount coming out of Asia — about 50 percent of capital at the moment — but Canadians make up a big chunk as well, they’re about 30 percent of capital coming into the U.S.
SABINE STENER, GAEDEKE GROUP The underlying fundamentals are such that people who do look at them will realize that Dallas has become not only a primary market, but a very lucrative one. I think we will see over the next five to 10, maybe 15 years, this image will change. A large part of that is that Dallas, because of many factors, has been able to attract so many companies.
TAL PERI, UNION INVESTMENT REAL ESTATE It is easier to go to a New York or a San Francisco, but many of these markets have seen rent growth slow down. … Dallas benefited from the primary markets being priced out and having more people coming and looking in the secondary markets.
1 2 / 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
FA L L 2 0 1 7
TEXAS
YOU FOUND THE SWEET SPOT. Welcome to Addison, where you’re 15 minutes from anywhere in Dallas. There are more than 1,600 businesses here, surrounded by 180 restaurants, 24 hotels and the top-ranked general aviation airport in Texas. With over 10 million square feet of office space, highly qualified workers in every field close by and a city government dedicated to helping you succeed, it’s no wonder NerdWallet voted Addison the #1 city in Texas to start a business. AddisonED.com • 972.450.7076
DISCOVER WHAT’S NEW + NEXT IN DALLAS-FORT WORTH E N T E R P R I S E | S TA RT U P | I N V E N T I O N | E D U C AT I O N | S O C I A L | C R E AT I V E
DALLASINNOVATES.COM COLLABORATION OF OF THE THE DALLAS DALLAS REGIONAL AACOLLABORATION REGIONAL CHAMBER CHAMBERAND ANDDDMAGAZINE MAGAZINEPARTNERS PARTNERS
B BUILDING TOMORROW TOGETHER
PHOTO: NIRODESIGN / ISTOCK
INTERNATIONAL OUTREACH BY MELISSA MAGUIRE MANAGER OF INTERNATIONAL ECONOMIC DEVELOPMENT DALLAS REGIONAL CHAMBER
FA L L 2 0 1 7
Sometimes, the best way to see what’s going on at home is to leave and look back from a different, more developed perspective. That’s what we do for companies that expand to the Dallas-Fort Worth region from other parts of the world: We bring them here, help them look back at what works and what needs improvement, and show them how this region can be part of their future success. International outreach missions are just one of the ways in which we grow this region’s prosperity at home and abroad. In the paraphrased words of John Olajide, CEO of health-care technology company Axxess, “When we visit other cities, we take parts of our community with us to leave with them, and bring parts of their community back with us to plant and grow at home.” John spoke these words in a small restaurant in Montreal during our June 2017 international mission to Canada. In case you didn’t know, DFW does about $1.19 billion in bilateral trade annually with Montreal and about $1.66 billion with Toronto, which
is partly why Canada was chosen as a 2017 mission destination. International missions like the one to Canada are hosted by Dallas Fort Worth International Airport, Mayor Mike Rawlings of Dallas, and Mayor Betsy Price of Fort Worth. A select handful of business executives from the Dallas Regional Chamber and the Fort Worth Chamber member rosters participate and fill out the business pillar of mission activities, which include business dinners such as the one John attended, informational seminars about investing in the DFW region, and small, private meetings with the executives of foreign companies. The group of delegates also includes representation from VisitDallas and the Fort Worth Convention and Visitors Bureau, which work together to supplement the mission with a travel- and tourism-focused pillar of events. The airport divides and conquers the aviation pillar by meeting with airport and airline executives around the world, which supports our
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 / 1 5
B BUILDING TOMORROW TOGETHER strategic goal of bringing five new direct international flights to the region annually. Finally, the mayors devote their time to representing the region at diplomatic events, often speaking on panels and exchanging remarks with other elected officials, such as the mayors of Toronto and Montreal. One airport, two mayors, two chambers, and two CVBs walk into a bar…and work together to bring new foreign direct investment into the region that we believe is the best place in the country (if not the world) to live, work, and play: Dallas-Fort Worth. Looking back, we’ve had some pretty great success in making this dream a reality. In the past few years, we’ve visited Canada, Mexico, Peru, Brazil, Japan, China, Hong Kong, France, the United Kingdom, and the United Arab Emirates. We’ve built lasting relationships with businesses in these countries, which have led to successes like last July’s sold-out Japan Summit at the DRC and a brand new year-round direct flight to Montreal, thanks to Air Canada. As exciting as international missions are, the destinations are chosen with great care. Two years ago, the DRC conducted research into which countries were investing the most in our economy, university systems, tourism industry, and overall GDP. We also looked at different countries’ tax, employment, real estate, and union laws to determine if there was a need for Texas’ light touch. In developing our international strategy, we also found that the availability of a direct flight to DFW significantly increased cargo, business, and passenger traffic to the region, so we built that into our list of
IN THE PAST FEW YEARS, WE’VE VISITED CANADA, MEXICO, PERU, BRAZIL, JAPAN, CHINA, HONG KONG, FRANCE, THE UNITED KINGDOM, AND THE UNITED ARAB EMIRATES. factors for consideration. Countries that were identified through these metrics were identified as our top 10 countries of focus, a list which includes some obvious players — like Mexico and China — but also some surprising ones, like Australia and Spain. A flex list of countries including the Netherlands and Ireland are within our peripheral vision, and we will give due consideration to political and economic happenings in these markets as we plan for future missions. Despite political tension, we will find ourselves in China and South Korea in October, pressing forward with our shared mission of raising this region’s international profile. Trade with China accounts for 31 percent of our regional trade with a foreign country, and trade with South Korea isn’t far behind — they’re our No. 1 largest export market and No. 2 largest import market, after China. It’s obvious why we need to be there. As we look back on 2017 missions and look forward to 2018 missions, I am reminded once again that no matter the success of the global outreach we do, and no matter the lessons learned and ideas exchanged abroad… It’s always nice to come home.
WANT TO LEARN MORE ABOUT HOW TO GET INVOLVED IN BUILDING TOMORROW TOGETHER?
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 Dallas-Fort 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.
1 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
FA L L 2 0 1 7
ARLINGTON
Perfect Location | Vibrant Economy | Can-Do Culture
101 Ce nter
ive! Texas L
D.R. Hor ton
JOIN THE TEAM
Arlington welcomes corporate relocations, new business partnerships and redevelopment opportunities. The future is bright and the economy is strong in the American Dream City. IN THE NEWS: • • • • • • • •
Rangers, City Announce Texas Live! $250 Million Entertainment Complex & Hotel/Convention Facility UPS to Open Regional Hub in Arlington Bringing 1,400 Jobs GM Financial Announces $35 Million Addition to Arlington Operations Center Champions Park 14-Acre Mixed-Use Development to Include Retail/Restaurants and Festival Park 101 Center Mixed-Use Development Set to Bring Innovation, Excitement and Urban Living to Downtown Summit Racing Announces $82 Million Regional Distribution Center and Superstore Coming to Arlington D.R. Horton, America’s Largest Home Builder, Relocates Corporate Headquarters to Arlington GM Invests $1.4 Billion In Expansion of the Arlington Assembly Plant
Office of Economic Development
ArlingtonTX.gov/ecodev | 817-459-6155 | ecodev@arlingtontx.gov
P PLACEMAKERS
BRINGING THE HIP TO DOWNTOWN DALLAS
Hamilton Properties’ Larry and Ted Hamilton have been developing a portfolio of Dallas renovations that inject cool, modern design into historical buildings
BY ROBERT CADWALLADER
Dallas developer Larry Hamilton makes his mark by creatively repurposing vacant high-rises for downtown residential-retail living, helping to make the urban core a destination for people looking for the amenities of city life. It was a mark he had wanted to make in Denver, where he founded Hamilton Properties Corp. 41 years ago. But by the time he was ready to buy a big building and partake in the downtown Denver revitalization fury of the early 1990s, the dwindling supply had priced him out of the market.
1 8 / 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
PHOTO: MICHAEL SAMPLES
LARRY AND TED HAMILTON OF HAMILTON PROPERTIES
So, he came to Dallas in 1996, prospecting for empty, architecturally interesting — and affordable — buildings. At the time, little was going on in the central business district. “It was like stepping back in time,” said Hamilton, the company CEO who opened a Dallas office in 2000 and finished phasing out his Denver office in August. “We had seen the gentrification of downtown Denver. Prices had gone up. We came here, and all of these beautiful older buildings were vacant, but [we thought] the architecture was priceless, near irreplaceable. And we could get them on the cheap.” He said buying a warehouse in Denver at the time could cost $40 to $45 a square foot, while promising, old, restorable buildings in Dallas would set you back only $7 or $8 a square foot. And that’s what he paid — $2 million -– in 1997 for the former home of the Republic National Bank headquarters, later renamed the Davis Building, in honor of the bank’s longtime chairman. The 20-story structure was one of the tallest buildings in Dallas when it debuted in 1926. It was one of the very first big-building conversions to apartments in downtown Dallas. It also was the first for Hamilton, who had focused mostly on smaller suburban office developments during his two decades in Denver. Hamilton and his son, Ted Hamilton, president of the firm that he joined in 1996, reopened the Davis in 2003 as a mixed-use complex of 183 loft apartments above 50,000 square feet of first-floor retail with a 607-space parking garage. The Davis building, which now is owned by Dallas billionaire Tim Headington, set the tone for the kind of creative historic preservation Hamilton intended to bring to Dallas. The building’s interior had been demolished, leaving exposed sections of brick under missing chunks of plaster, as well as exposed electrical conduit and water piping along the walls and ceilings. “It was kind of in a ruined state, and we left it that way,” Larry Hamilton said. “So you get the juxtaposition of new and old. We had new kitchens and cabinets and bathrooms, but the walls are in their primitive state.” The same approach characterized the repurposing of a warehouse in the 90-year-old Santa Fe Terminal Complex in downtown Dallas as a hotel under the Aloft Hotels brand. It was the first of the chain’s 50 hotels that was not newly built. “It really captured the DNA of the brand,”
FA L L 2 0 1 7
P PLACEMAKERS
LOBBY OF THE LORENZO HOTEL IN THE CEDARS NEIGHBORHOOD OF DOWNTOWN DALLAS PHOTO: MICHAEL SAMPLES
FA L L 2 0 1 7
THE MOSAIC
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 / 1 9
PHOTO: OLYMPUS PROPERTY
Hamilton said, noting that Aloft has since recycled many historic buildings into hotels. “This is the look they were trying to achieve. They changed their direction.” The firm would repurpose five more building properties. The latest was the recession-stalled transformation of the original 45-yearold Ramada Inn building in The Cedars area just south of downtown Dallas. It reopened in March as the 12-story, 237-room Lorenzo Hotel. In all, Hamilton Properties’ projects total 1,011 apartments, 430 hotel rooms, 108,000 square feet of retail and more than 2,000 parking spots, adding a total value of $312 million, according to the company’s website. Hamilton Properties quickly built a reputation in Dallas. As former Dallas Mayor Laura Miller put it — in a comment displayed on the Hamilton website — “Larry and Ted Hamilton have single-handedly made it possible for us to use the words ‘downtown’ and ‘hip’ in the same sentence.” It’s been a long journey for Larry Hamilton, who had no early desire to be a developer. Born and raised in Chicago, he was a history major at Ripon College, a liberal arts school in Ripon, WI, birthplace of the Republican Party. While there, he also dabbled in theatre, where his claim to fame was his friendly association with Harrison Ford, a philosophy major who later dropped out and found solace in the Star Wars movie franchise. “I actually directed him in the Upper Class Talent Night,” Hamilton said. Decades later, seeking investors in Dallas, Hamilton would pitch each of his first three building projects to Ford. “But we never heard back from him,” Hamilton said with a laugh. After serving two years in the Army, Hamilton returned to Ripon College as its assistant to the vice president of finance, where he was responsible for doling out federal funds to all Wisconsin colleges. “I thought I was on a career path to become a college president,” he said. Hamilton’s first shot at a development project came while he worked for the Colorado Commission on Higher Education in the early 1970s. He was “a bureaucrat” put in charge of plans to build the Auraria Campus on a 44-block site in downtown Denver, where two universities and a college would be relocated onto one campus to
boost operational efficiencies. A feasibility study assumed all buildings on the site would be demolished, including a block of 15 Victorian homes built by early Denver settlers. Hamilton opposed the broad demolition and succeeded in preserving and repurposing 20 to 25 of the buildings, including all the historic homes, now called Ninth Street Park, most of which now serve as school offices. Later, a nearby home where future Israeli Prime Minister Golda Meir lived briefly as a teenager was relocated to Ninth Street, where it’s a tourist attraction. Hamilton’s first development had turned into a $100 million project. His next break was for a job with noted mall developer Gerri Von Frellick whose major shopping centers include Big Town Mall in Mesquite. “It’s fun to build something, to get a sense of closure,” Hamilton said, something he felt he wouldn’t experience as a career government employee. Then-Denver Mayor Federico Pena appointed Hamilton to a committee that created a redevelopment plan for downtown Denver in 1984. It guided the revitalization that caught fire in the late 1980s and early 1990s. “Denver was similar to Dallas in that, historically, the downtown hardly had any residential,” he said. “What residential there was were these cheaper hotels. There weren’t any affluent people who lived in downtown Denver in the ’40s and ’50s and ’60s.” Ted Hamilton said that when he and his father came to Dallas, they had a little advantage in that they had seen “all these other downtowns revitalized and we knew it was going to happen. ... We were seen as the experts from Denver.” But their first project was a challenge. “We tried everything on the Davis Building,” Ted Hamilton said. “First it was all apartments. Then we tried to do the ‘uncorporate’ thing and wanted to try it half hotel and half apartments. We even had a partner out of New Orleans, but we just couldn’t get it done.” Furthermore, it took four years and “a hundred lender tours” of the building to get a construction loan. Hamilton Properties’ biggest project was Mosaic, a mixed-use development carved from a full city block consisting of two vacant office buildings of 33 stories and 21 stories, and an eight-story parking structure, built for the Fidelity Union Life Insurance Co.’s headquarters more than a half century ago.
2 0 / 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
PHOTO: THEDAVISBUILDIONG.COM
P PLACEMAKERS
FOR THE DAVIS BUILDING, HAMILTON LEFT EXPOSED SECTIONS OF BRICK, ELECTRICAL CONDUIT, AND WATER PIPING ALONG THE WALLS AND CEILINGS.
The 440 loft units, 19,000 square feet of retail and 660 structured parking stalls and amenities including drive-in theater movie screens opened in late 2007 at a total cost of $107 million. Hamilton hired three designers to create three different design packages for the Mosaic including cabinets, backsplashes, tiles, paint colors, floor finishes and other elements. Each design palette was featured on every third floor. “That’s very ‘uncorporate.’ No big developer would take the time to do that,” Ted Hamilton said. Also, large, “real funky” displays of modern art were installed in the elevator lobbies of each floor, he added. Among the other touches, gobo lights on each apartment door project the room number onto the hallway floor. Gobos are pieces of flat steel or glass in a lighting fixture that project an image. The design strategy “varies from building to building,” Larry Hamilton said. “The idea is to take the historic character and keep that and exploit that, but adapt it to today’s needs.” Their latest project, The Lorenzo, a boutique hotel with its name spelled out in giant block letters running up its exterior, features an eclectic mix of paintings, woodwork, modern art displays, room styles, colors and quirkiness (like a 30foot image of a pair of eyeballs peering down from the 12th floor) that call out to millennials. He commissioned Shaw Carpets to create a unique print featuring Hamlet’s tobe-or-not-to-be soliloquy, for each room. The final touch on the Lorenzo is yet to come. Hamilton has plans to commission a 42-foot-tall umbrella sculpture to be installed on a median on Akard Street next to the hotel. The plan is awaiting final approval from the city. He’s inspired by Artist Keith Turman’s two-ton sculpture of a British bowler hat on a giant coat rack placed in a vacant grass lot just a block away from the proposed umbrella installation. “We wanted something that was iconic and vertical,” Hamilton said. While the Lorenzo — which towers over The Cedars neighborhood south of downtown Dallas — makes an especially bold statement, Larry Hamilton said, “All of our downtown projects kind of appeal to younger people. We’re shooting for something hip and cool.”
FA L L 2 0 1 7
SEEING IS BELIEVING...
come experience the newly renovated Pinnacle Tower for yourself!
Exterior Lighting
Coffee Bar
Tenant Lounge
Fitness Center
Restaurant
A PROPERTY OF
LEASED & MANAGED BY
Lobby
For leasing information, please contact: J.J. Leonard, Sara Terry, or Chase Lopez at 214.267.0400
www.pinnacletowerdallas.com
RED DEVELOPMENT’S VILLAGE AT RAYZOR RANCH, COMING TO DENTON
THE CRANE REPORT
Fall 2017
The demand for office space in Dallas-Fort Worth continues to be strong with many firms looking for a “work, live, play” environment. Lenders have tightened requirements for speculative development, and that could have an impact on preleasing for many of the new developments. In each issue of the Dallas-Fort Worth Real Estate Review, we showcase projects that are underway or planned in the Crane Report. Data for the office and industrial sectors is provided by Xceligent Inc., while data for the multifamily market is provided by Axiometrics, a RealPage Company. BY LANCE MURRAY
ON-THE-GRO U N D I N S I G H TS
OFFICE
JEFF EITING
Vice President, CBRE Dallas
“The primary workplace amenity is the sum of all the off erings inside a space or within a building that help to attract employees. Today’s employer wants choices that render employee engagement, whether it be bike share, outdoor spaces, wellness initiatives, multipurpose spaces, or coworking space that spurs creativity.”
FA L L 2 0 1 7
NATHAN DURHAM Senior Vice President, Transwestern
“The office tenant of the future desires central spaces, promoting the kind of spontaneous conversations that lead to company innovation and increased workflow. These include wellness centers, outdoor lounges, indoor/outdoor food halls and coff ee bars that encourage communication as opposed to the isolated heads-down work environment of the past.”
INDUSTRIAL
MULTIFAMILY
STEVE BERGER
BRIAN O’BOYLE SR.
Senior Vice President, CBRE
“Evolving improvements in technology have improved efficiencies of industrial space utilization, but have also allowed for change of the physical space, enabling for example, utilization of taller buildings.”
Vice Chairman, ARA Newmark
“Here are some of the design trends we are seeing in more upscale multifamily communities: USB ports, BlueTooth speakers, Wi-Fi Nest thermostat, cabanas by the pool, valet dry cleaning, Luxer One package lockers.”
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 3
THE CRANE REPORT:
● ANNOUNCED ● UNDER CONSTRUCTION
OFFICE
CYPRESS OFFICE 1317 E MCKINNEY ST
OAKMONT OFFICE CONDOS
ANNOUNCED + UNDER CONSTRUCTION
OLD TOWN BLVD NORTH BUILD TO SUIT PAD # 1
ANNOUNCED DEVELOPMENTS
PRAIRIE COMMONS OFFICE CONDOMINIUMS LAKESIDE CROSSING
LEGACY SOUTH
2
8010 PARK LANE
SIZE: 340,000 square feet DEVELOPER: Northwood Investors LEASING AGENTS: Trey Smith and Ward Eastman, Cushman & Wakefield DETAILS: This new 11-story building, designed by Gensler, will include a 50,000-square-foot trading floor and 20,000-square-foot loft office, with up to 20-foot ceiling heights. It will be located within The Shops at Park Lane, which provides on-site access to the DART rail line and features 11 restaurants, 550,000 square feet of retail space, and 550 luxury apartment units.
2 4 / 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
801 ENTERPRISE DR PARK WEST PLAZA
SOUTHLAKE MEDICAL OFFICES 404 KELLER PKWY
7105 GOLF CLUB DR PAD SITE
3665 WESTERN CENTER BLVD FOSSIL CREEK STATION
GRAPEVINE STATION
1750 KELLER PKWY
BEAR CREEK SE OF 8821 DAVIS BLVD OFFICE PARK GOLDEN TRIANGLE THE PONDS BLVD AND OLD DENTON RD
DATA SOURCE: XCELIGENT INC., A COMMERCIAL REAL ESTATE RESEARCH FIRM IN PARTNERSHIP WITH NTCAR
1
MONTEREY OFFICE PARK TANGLEWOOD OFFICE PARK
NORTHWEST PLAZA 104 COUNTRY VIEW DR
TROPHY CLUB TOWN CENTER
SIZE: 210,000 square feet DEVELOPER: Heady Investments DETAILS: The seven-story, 210,000-square-foot office building will be constructed on one of the last vacant sites on the Dallas North Tollway near Spring Creek Parkway. The site is less than a mile from the new Legacy West mixed-use development. The speculative project is expected to open in early 2019.
460 E JONES ST
MEADOWLANDS ADDITION
FREEPORT COMMONS HERITAGE OFFICE PARK PHASE II
THE APEX AT LAS COLINAS CROSSING
ADVENT PARC BLDG 2
AIRPORT 161 HQ CENTER
7114 MID CITIES BLVD AMERICAN AIRLINES THE OFFICES @ HAMPDEN WOODS
EXPEDITION PLAZA
FAIRWAY CENTRE OFFICE
2901 WINGATE ST
9701-9703 WHITE SETTLEMENT RD
BALLPARK PLAZA PH
FROST TOWER FORT WORTH
D. R. HORTON HEADQUARTERS
OVERTON TOWER III 1200 6TH AVE
NEAR SOUTHSIDE MERCANTILE BLDG 2
CLEARFORK PHASE I
3001 BRYANT IRVIN RD
701 SECRETARY DR
WATERSIDE
THE GARDENS AT TOWN CENTER
111 LARSON LN
4015 W I-20 6940 HARRIS PKWY SE OF ALTAMESA BLVD AND QUAIL RIDGE RD
MATLOCK PROFESSIONAL OFFICE PARK
SUMMER CREEK STATION GARDEN OFFICE
2909 TURNER WARNELL RD
HULEN VILLAGE OFFICE
CANNON PROFESSIONAL PLAZA HIGHPOINT COMMONS
THE ATRIUM REGENCY STATION
UNDER CONSTRUCTION 3
USAA
SIZE: 150,000 square feet DETAILS: The San Antonio-based insurer is expanding its North Texas hub by building a new facility of up to 150,000 square feet of office space next to its existing campus in Plano’s Legacy Business Park. Upon completion, USAA will employ up to 850 employees at the new building.
4
ROYAL 10 OFFICE CENTER
SIZE: 114,500 square feet DEVELOPER: Myers & Crow Co. DETAILS: The two-story, 100-percent spec building is targeted for a single corporate tenant and is at 3600 Royal Lane in Irving. The project is located south of LBJ Freeway and north of Dallas Fort Worth International Airport. The building should be ready for occupancy by next summer.
FA L L 2 0 1 7
VICTORY AT FRONTIER BLDG. 4
GARDENIA VILLAGE OFFICE PARK
PROSPER CROSSINGS
2020 E MELISSA RD BUILDING 1
WHISPERING FARMS
THE FORUM AT PROSPER WEST
CRESCENT PARC
COBB FARM WEST OFFICE PARK
CONLEY COMMONS
VICTORY AT STONEBRIDGE
1840 LAKE FOREST BLVD 6579 VIRGINIA PKWY SUMMIT PARK II
NE OF ELDORADO PKWY AND TEEL PKWY
TOWER AT FRISCO SQUARE FRISCO SQUARE
4645 WYNDHAM LN
3900 S STONEBRIDGE DR WESSEX@ ALMA ROAD 5001 COLLIN MCKINNEY PKWY
STEWART CREEK OFFICE CENTER I
ONE FOUNTAIN COURT
STONEBROOK BUSINESS PARK THE GATE
PRESTON @ WADE CROSSING
NW OF WARREN PKWY & DALLAS NORTH TOLLWAY
PRESTON WATTERS CREEK BEND ONE OFFICE PARK
STONEBRIAR COMMONS ON LEGACY SANYO ENERGY HEADQUARTERS CENTRE AT THE COLONY THE REALM
PLATINUM TOWER
CROWN CENTRE INTERNATIONAL BUSINESS PARK INTERNATIONAL BUSINESS PARK 190
4101 HIGHWAY 121 BYPASS BLVD VISTA RIDGE ROCKBROOK
3
CORPORATE CENTER FOUR ALLEN PLACE ANGEL FIELD CENTER WATTERS CREEK AT MONTGOMERY FARM
3400 @ CITYLINE PALISADES CENTRAL
MURPHY MEDICAL OFFICES CAMPBELL CROSSING OFFICE PARK
399 MELROSE DR FOURTEEN555
9797 ROMBAUER RD 3000 OLYMPUS BLVD THREE HICKORY CENTRE
FOUR GALLERIA TOWER
ROCKWALL COMMONS PHASE II
PARK TOWER AT DALLAS MIDTOWN OFFICE
ROYAL TOWER PINNACLE TOWER II 5400 WHITE TEXAS MUSIC HALL ST FACTORY HIDDEN RIDGE
2
RIDGEMARK OFFICE BUILDING NWC OF DALROCK RD AND I-30
FOUR ENERGY SQUARE 4437 BUENA VISTA ST 2505, 2727, & 3001 TURTLE CREEK BLVD PARK DISTRICT TOWER TWO ARTS PLAZA
WEST LOVE VICTORY CENTER TWO VICTORY PARK THE UNION
DAVIS STREET MARKET
SPRINGFIELD PROFESSIONAL CONDOS - PHASE II TOWER AT PRESTON HOLLOW VILLAGE
PARK CITIES PLAZA
THE TERRACES 4401 W LOVERS LN
HASE II
WATCHGUARD VIDEO
LEGACY BUSINESS PARK LAKES OF TENNYSON PROFESSIONAL LEGACY CENTRAL 5 LEGACY III WINDHAVEN PLACE ONE DEXTER PROFESSIONAL NW OF W FM 544 & N MURPHY RD
1
NORTH DALLAS MEDICAL CENTER II
RED HAWK OFFICE VILLAGE 2 MAIN STREET COPPELL
5 4
WATTERS JUNCTION
EPIC SOLA ON LAMAR
324 & 336 W JEFFERSON BLVD
SUNNYVALE PROFESSIONAL PLAZA 207 S FM 548
CLIFFVIEW CROSSING
ONLINE EXTRA
THE CRANE REPORT: INTERACTIVE VERSION
online at dfwrealestatereview.com
MIDTOWNE
5
BRINKER INTERNATIONAL
SIZE: 216,300 square feet DEVELOPER: Billingsley DETAILS: The Dallas-based parent company of Chili’s Grill & Bar and Magliano’s Little Italy is moving into a new headquarters in Cypress Waters. The custom-built, fourstory office building will be part of Billingsley’s The Sound project which includes apartments, retail, restaurant and corporate office space at 3000 Olympus on the shore of North Lake near Belt Line Road.
FA L L 2 0 1 7
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 5
US 380 BUSINESS PARK WEST GATE BUSINESS PARK
THE CRANE REPORT:
INDUSTRIAL
MA OAK HILL BUS PARK
5075 TIM DONALD RD BLDG 3
ANNOUNCED + UNDER CONSTRUCTION
GATEWAY BUSINESS PARK
SPEEDWAY DISTRIBUTION CENTER
ANNOUNCED PROJECTS
TRAMMELL CROW @ 35-EAGLE
1
UNIVERSITY BUSINESS PARK
ALLIANCE CENTER NORTH 15
PROLO
LOGISTIC 12801 HARMON RD
1005 CHISOLM TRL
5761 PARK VISTA CIR
35/820 @ MERCANTILE
PARKER PRODUCTION FACILITY 901 S CHERRY LN
PHASE I - BLDGS I & 2 @ COLLEYVILLE BLVD
PARC NORTH BLDG 5
RAILHEAD INDUSTRIAL PARK
1815 RELIANCE PKW
4000 STATE 157 HWY
TTI, INC
1009 NE 11TH ST
CEN
1460 AV
5
360 GLOB LOGISTIC PARK LAN 2809 SHAMROCK AVE
1431 S CHERRY LN
GRAND LAKES 4053
SIZE: 189,000 square feet DEVELOPER: Duke Realty DETAILS: Duke announced it will build a 189,000-square-foot industrial building on the final site at the Grand Lakes development in Grand Prairie. The new structure is scheduled to deliver in February in the 2.2-million-square-foot industrial park. It will have a 32-foot clear height and a 185-foot truck court.
LAK
12500 WILLOW SPRINGS RD
SIZE: 400,000 square feet DEVELOPER: Hunt Southwest DETAILS: Hunt Southwest has been picked by the city of McKinney to build the University Business Park near U.S. 380 in McKinney.
2
LA R
4925 SUN VALLEY DR
! ● ANNOUNCED ● UNDER CONSTRUCTION
SOUTH CENTRAL DISTRIBUTION CENTER II
NW OF TECH CENTRE PKWY & GAMBREL RD
PAR
KENNEDALE PKWY F
8600 WILL ROGERS BLVD
1102 ENTERPRISE PL
350 GARDEN ACRES DR BLDG B
ONLINE EXTRA
THE CRANE REPORT: INTERACTIVE VERSION
619 S WISTERIA ST
online at dfwrealestatereview.com SW OF E FM 917 AND LONGHORN DR
DATA SOURCE: AXIOMETRICS INC.
UNDER CONSTRUCTION 3
MIDLOTH
MOUNTAIN CREEK BUSINESS PARK
SIZE: 155,000 square feet DEVELOPER: Courtland Development DETAILS: The company will build two more industrial buildings in the Mountain Creek development, totaling roughly 155,000 square feet. The site is on Merrifield Road, north of Interstate 20 in southwest Dallas. The buildings are being developed in partnership with Trez Capital Texas. The project was designed by Alliance Architects.
2 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
4
WILMETH ROAD SPEC BUILDING
SIZE: 202,270 square feet DEVELOPER: Hunt Southwest DETAILS: The construction on this speculative building on Wilmeth Road just east of Redbud is expected to begin in October. The facility sits on 13.3 acres and will be configured as a front-park, rearload building.
FA L L 2 0 1 7
PROSPER BUSINESS PARK
ARKET STREET INDUSTRIAL PARK
FRISCO PARK 25
2211-2241 REDBUD BLVD
4
1
COBB BUSINESS PARK
THE TECH CENTER ON GREENVILLE LEWISVILLE CORPORATE CENTER
INTELLIGENT EPITAXY TECHNOLOGY, INC
CREEKVIEW 121 121 RIVERVIEW CROSSING
NW OF HILLSIDE DR & N MILL ST
4814 DOZIER RD PLANO TECH CENTER 8
LINCOLN RIDGE
AKESIDE RIDGE II
MARY KAY
PLANO COMMERCE PARK SITE A
MAJESTIC AIRPORT CENTER DFW
KESIDE RANCH
OGIS PARK 121
MAIN STREET COPPELL FREEPORT NORTH
AMAZON
CS CENTER VII SIGNET JEWELERS
PROLOGIS VALWOOD CORPORATE CENTER
COTTON RIDGE BUSINESS PARK
ROYAL TECH 18 PARC 114 DFW EAST LOGISTICS CENTER
WY
JUPITER MILLER BUSINESS CENTER JUPITER MILLER BUSINESS CENTER NORTHGATE GARLAND LOGISTICS DIST CENTER CENTER BLDG
4.93 ACRES N STEMMONS FWY
DFW/161 DISTRIBUTION CENTER 300 9749 CLIFFORD BEAR CREEK CORPORATE CENTER
NTREPORT
MESQUITE INDUSTRIAL BUSINESS PARK
LIBERTY PARK GSW NORTH BLDG 1
VENUE S
2909 W OAKDALE RD
5
FEDEX
WILDLIFE COMMERCE PARK
BAL CS ND
SKYLINE DISTRIBUTION CENTER
GRAND LAKES 4003 EXPANSION
2
PROPOSED UPS EXPANSION
DCT MIDPOINT DISTRIBUTION CENTER
SOUTHWEST DISTRIBUTION CENTER LIBERTY PARK MOUNTAIN CREEK
3
PARK 20/45
RK 20/360 FIRST MOUNTAIN CREEK DISTRIBUTION CENTER
STONERIDGE 16
SOUTHFIELD PARK 35
PLANNED POINTSOUTH LOGISTICS & COMMERCE CENTRE SOUTHPOINTE 20/35 LOGISTICENTER AT DALLAS 1600 W WINTERGREEN RD SUNRIDGE BUSINESS PARK LOT 10
I 35 LOGISTICS CROSSING
SOUTHPORT TRADE CENTER DALPORT TRADE CENTER 6
DALPORT TRADE CENTER DFW INLAND PORT I
NW OF E OVILLA RD & N CENTRAL BLVD
DATA SOURCE: XCELIGENT INC., A COMMERCIAL REAL ESTATE RESEARCH FIRM IN PARTNERSHIP WITH NTCAR
HIAN BUSINESS PARK
5
INTERNATIONAL LOGISTICS CENTER
SIZE: 646,796 square feet DEVELOPERS: Cabot Properties Inc. and Stream Realty Partners DETAILS: Work has begun on the new 40-acre industrial park near Dallas Fort Worth International Airport. The three-building project is near State Highway 360, between DFW Airport and Great Southwest Industrial District.
FA L L 2 0 1 7
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
WOODLANDS APARTMENTS I
1
THE CRANE REPORT:
MULTIFAMILY
THE VERANDA
EPIC APARTMENTS
ANNOUNCED + UNDER CONSTRUCTION
DISTRICT O HIGHLAND VILL
ANNOUNCED DEVELOPMENTS 1
HILLSTON RIVER WA
● ANNOUNCED ● UNDER CONSTRUCTION
VILLAGE AT RAYZOR RANCH
UNITS: 292 DEVELOPER: RED Development DETAILS: A 292-unit luxury apartment complex and several new retailers are coming to Rayzor Ranch Town Center in Denton. In August, RED sold 11 acres to EPC Real Estate Group for the development of The Village at Rayzor Ranch. The apartment units will be a mix of studio, as well as oneand two-bedroom homes. Construction is expected to begin in early 2018.
ONLINE EXTRA
AURA GRAPEVINE
THE CRANE REPORT: INTERACTIVE VERSION
JUNCTION CROSSING
online at dfwrealestatereview.com
SAGEWOOD VILLAGE VERA PRESIDIO DOLCE LIVING HOME TOWN
MERRITT STREET APARTMENTS
ELAN AT RIVER DISTRICT ALEXAN SUMMIT THE MONARCH
NINTH AND COMMERCE, FORT WORTH
SIZE: 250-295 units DEVELOPER: Southern Land Co. DETAILS: The Nashville-based developer announced plans to build a high-rise apartment tower of up to 32 stories in downtown Fort Worth on land it bought from XTO Energy near the Fort Worth Convention Center. The project will be between 250,000 and 280,000 square feet.
2
ARLINGTON COMMONS PH I
THE FLATS AT ALTA LEFTBANK BROWNSTONE 5TH AND SUMMIT 250 LANCASTER
MAGNOLIA
TH WATS
COLUMBIA AT RENAISSANCE SQUARE
QUAD
DATA SOURCE: AXIOMETRICS INC.
2
RIVERVUE
HILLS AT CENT
THE KELLEY AT SAMUELS AVENUE THE SCENIC AT RIVER EAST I FORT201 AT THE FOUNDRY
AURA 3SIXTY
THE MAIN STREET LOFTS I
UNDER CONSTRUCTION 4
3
FRISCO SQUARE
SIZE: 298 units DEVELOPERS: Wood Partners DETAILS: Work has started on the next phase of Frisco Square, an apartment community on Main Street just east of the Dallas North Tollway. The first 298 units should be completed by early summer of 2018. The site is across from Toyota Stadium.
2 8 / 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
FIREWHEEL SENIOR LIVING RESIDENCES
UNITS: 154 DEVELOPER: KWA Construction and Seneca Investments DETAILS: Construction has begun on the 154-unit seniorliving community near the Firewheel Golf Course in Garland. David Kirch is working with KWA Construction and Seneca Investments on the 171,572-square-foot development. Completion is expected by the end of 2018.
FA L L 2 0 1 7
REGALIA MANSFIELD II
ADARA WINDSONG RANCH
I
SOVEREIGN PRESTON RD ASCEND AT WESTRIDGE
THE LUXE 3EIGHTY
DAVIS ST AND MCDONALD ST
WESTRIDGE VILLAS PALLADIUM LITTLE ELM APARTMENTS
EMERSON COURT
PARKVIEW APARTMENTS
PDG FRISCO WATERFORD AT FRISCO PH I
3
MAXWELL ARTISTRY AT PCR
STATION HOUSE
RAVELLO STONEBRIAR LVL29
OF LAGE
CENTRAL PARK AT CRAIG RANCH PH I
COMMONS OF CHAPEL CREEK ECHELON AT THE SUMMIT VERUS HUNTINGTON APARTMENTS
ALEXAN CARROLLTON
BREEZEWAY FARMS ADDITION AVILLA PREMIER PLACE
BROADSTONE CITYLINE PARK EVOKE APARTMENTS
SLOANE STREET ON PARK
Situated for business.
TWIN CREEKS CROSSING II DOLCE LIVING TWIN CREEKS PH I
THE RESIDENCES THE HUDSON AT AT LEGACY AUSTIN RANCH
DISCOVERY AT THE REALM
NE ALK
5
McKINNEY, TX
THE MANSIONS OF MCKINNEY
SOUTHERN LAND CO DEVELOPMENT
THE PARC AT WYLIE PARK AT GATEWAY HEIGHTS AT JEFFERSON WOODS I CAMPFIRE TRINITY MILLS THE FLATS AT CROSSING VILLAGE TOWERS ALTA PALISADES IMT AT SPRING MANSIONS AT SPRING CREEK PRESTONWOOD CREEK JEFFERSON THE MALLORY LANDMARK AURA 5515 EASTSIDE I
HEBRON 121 STATION IV GRAPEVINE BLUFFS THE SWITCHYARD THE SOUND
E
4
MODERA NEAR THE GALLERIA JPI MERCER CROSSING I
WATERWALK LAS COLINAS
RIVERSIDE PARK APARTMENTS CREST AT LAS COLINAS STATION APARTMENTS GABLES WATER STREET
TERRA LAGO
THE DOMAIN AT FIREWHEEL
VITRUVIAN WEST CREST AT PARK CENTRAL II
VILLAGE OF ROWLETT
VALENCIA AT MIDTOWN HANOVER THE ROYAL MIDTOWN PARK LAKE HIGHLANDS TOWN CENTER THE PRESTON
THE LAUREL THE ATWOOD
PARC AT GARLAND
RESERVE ON ABRAMS THE ASH AT THE BRANCH
STONE TREPORT
Try our location on for size.
JEFFERSON WEST LOVE
HE SON
THE DRANGLES
EAGLE CROSSINGS
INWOOD STATION
ALEXAN KATY TRAIL
THE MCKENZIE B & F FLATS THE KATY ALEXAN LOWER GREENVILLE MODERA TURTLE CREEK APARTMENTS AT M STREETS ENCORE SWISS AVENUE
ALTA STRAND THE RESIDENCES AT PARK DISTRICT THE CHRISTOPHER
THE CASE BUILDING
THE AUSTIN AT TRINITY GREEN I EPIC
THE ENCLAVE AT MIRA LAGOS II
MAGNOLIA AT ZANG THE COLORADO PLACE
DIGIT 1919
CRESCENT BISHOP ARTS
Thirty minutes north of Dallas and conveniently located at the crossroads of three major highways, McKinney is ready for business. Direct access to domestic and world markets, the newly widened U.S. 75 corridor, McKinney National Airport and a nationally acclaimed quality of life are just a few reasons why companies ямБnd success in McKinney. Discover how McKinney can be the gateway to your business future.
BISHOP HIGHLINE
I
Start Your Property & Land Search
5
WINDROSE TOWER AT LEGACY WEST
UNITS: 90 DEVELOPER: Windrose Condominiums LLC DETAILS: Work has begun on the tower in Legacy West that will bring 90 luxury residences in the $3.2 billion, 255-acre corporate development.
McKINNEY ECONOMIC DEVELOPMENT C O R P O R AT I O N McKINNEYEDC.COM INFO@McKINNEYEDC.COM 972-547-7651
FA L L 2 0 1 7
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 9
WELCOME TO THE NEW TRAMMELL CROW CENTER. ROSS AVENUE REINVENTED.
FOR MORE INFORMATION, CONTACT: Ramsey March, Sara Terry, or Scott Sowanick at 214.267.0400 TRAMMELLCROWCENTER.COM
S SCORECARD
GLOBAL LAW FIRM WINSTON & STRAWN LLP HAS LEASED SPACE IN THE PWC TOWER AT PARK DISTRICT.
SCORECARD
RENDERING: TRAMMELL CROW
Fall 2017
The overall markets for office and industrial leases remain strong in the Dallas-Fort Worth area. Companies continued to move to Dallas-Fort Worth, many seeking amenity-rich buildings in prime locations. The retail sector saw several large lease deals throughout the area. Here, we examine the top five office, industrial, and retail leases in the past three months throughout North Texas. As always, data is provide by Xceligent Inc. BY LANCE MURRAY
ON-THE-GRO U N D I N S I G H TS
OFFICE
INDUSTRIAL
RETAIL
MIKE GEISLER
GREG BIGGS
DAN HARRIS
NATHAN ORBIN
“With rising rental rates, today’s tenants are trying to get as much value as possible within their office space. Building amenities, like conference centers and fi tness centers, allow tenants to utilize and maximize their individual space more efficiently.”
“The more that an office environment can meet an employee’s day-to-day demands the better. On-site car washing, modernized fi tness centers, dry cleaning services, etc.—amenities previously thought of as bonuses — are now par for the course.”
“Industrial tenants are using more robotics and technology within their facilities, which is creating a need for more people and more sophisticated labor. This, in turn, is impacting building design. Developers must also plan for more parking to accommodate the higher labor counts tenants now have.”
Managing Director/Market LeadTenant Representation, JLL
FA L L 2 0 1 7
Managing Director, Cushman & Wakefield
Executive Managing Director, Cushman & Wakefield
Founding Principal, Managing Partner, Venture Commercial Real Estate
“North Texas property owners have adapted to the changing demands by welcoming tenants into retail centers that were once considered undesirable. Tenants such as restaurants, hair salons, and exercise-related businesses were once frowned upon because there were once deemed to be too parking intensive. Today, they are considered valuable traffic generators.”
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 / 3 1
S SCORECARD 2
OFFICE LEASES
1
4 3
5 0-11,199 SF 11,20050,706 SF 50,707152,058 SF 152,059327,183 SF C
327,184750,000 SF
M
Y
CM
DATA SOURCE: XCELIGENT INC., A COMMERCIAL REAL ESTATE RESEARCH FIRM IN PARTNERSHIP WITH NTCAR, AND REAL ESTATE REVIEW RESEARCH.
LARGEST OFFICE LEASES
MY
CY
1
NTT DATA
CMY
SIZE: 200,000 square feet DETAILS: NTT Data is leasing 200,000 square feet of office space in the former J.C. Penney headquarters building in Plano’s Legacy business park. The company’s U.S. headquarters is in a nearby high-rise office tower. NTT Data is the first new tenant in the $400 million redevelopment of the former Penney campus on Legacy Drive, just west of the Dallas North Tollway.
2
NETSCOUT
3
GAINSCO INSURANCE
SIZE: 65,737 TENANT REPS: CBRE’s Shelby Sanders and Josh White LEASING AGENTS: Granite Properties DETAILS: The insurance company has signed a lease expansion for its headquarters at 3333 Lee Pkwy. in Dallas.
3 2 / 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
4
FRANKLIN AMERICAN MORTGAGE CO.
SIZE: 58,000 square feet DETAILS: The mortgage company renewed its lease for 58,000 square feet of office space at the Towers at Williams Square in Las Colinas. The office tower is owned in a partnership between Vanderbilt Office Properties, Hillwood Urban and an investment fund managed by a subsidiary of Apollo Global Management.
5
WINSTON & STRAWN LLP
SIZE: 56,000 square feet LEASING AGENTS: Global law firm Winston & Strawn LLP has leased 56,000 square feet of office space in the PwC Tower in the Park District development tower in Uptown. The lease covers two floors of the new building and will include signage rights. IMAGES VIA XCELIGENT OR COURTESY OF THE COMPANIES.
SIZE: 145,000 square feet TENANT REPS: JLL’s Greg Biggs, Brendan Callahan, and Conor McCarthy LEASING AGENTS: JLL’s Daryl Mullin, Chris Dugget, and Blake Shipley for Kaizen Development Partners DETAILS: The 145,000-squarefoot building is under construction, with the tech firm NetScout leasing all of the three-story structure at One Bethany for a new regional research and development office in Allen. It will house roughly 500 employees and open in summer of 2018.
K
FA L L 2 0 1 7
S SCORECARD
INDUSTRIAL LEASES
3 2
5
1 12339,440 SF
4
39,441160,272 SF 160,273492,500 SF 492,5011,440,000 SF 1,440,0013,018,708 SF
LARGEST INDUSTRIAL LEASES
1
DATA SOURCE: XCELIGENT INC., A COMMERCIAL REAL ESTATE RESEARCH FIRM IN PARTNERSHIP WITH NTCAR, AND REAL ESTATE REVIEW RESEARCH.
CAMPBELL SOUP SUPPLY CO.
SIZE: 577,000 square feet TENANT REPS: CBRE’s Nathan Lawrence, Ryan Keiser, Seth Kelly, Jon Sarkisian, and Bill Wolf LEASING AGENTS: CBRE’s Dave Anderson, Nathan Lawrence, and Krista Raymond DETAILS: The company is leasing 80 percent of the 713,000-square-foot distribution building in North Fort Worth.
2
MOTIVATING GRAPHICS
3 4 / 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
ALLEN DISTRIBUTION
4
FREEMAN AUDIO VISUAL SOLUTIONS
5
KUEHNE & NAGEL
SIZE: 201,172 square feet DETAILS: The company has leased and moved into a new 201,172-squarefoot office and warehouse building at 3801 Adler Rd. in the I-30 Business Park in Dallas. Trammell Crow built the office/warehouse project that was designed by Alliance Architects Inc. General contractor was FCL Builders.
IMAGES VIA XCELIGENT OR COURTESY OF THE COMPANIES.
SIZE: 360,000 square feet LEASING AGENT: Hillwood’s Reid Goetz DETAIL: The full-service printing company leased 360,000 square feet of industrial space in Alliance Westport 19 at 1624 Intermodal Pkwy. in Haslet.
3
SIZE: 349,425 TENANT REP: JLL Senior Associate Elizabeth Jones LEASING AGENTS: Stream Realty’s Cannon Green, Bog Hagewood, and Forrest Cook for Clarion DETAILS: The food and distribution service company’s new warehouse will be in Northlake at Northlake 35 Business Center at 4250 Dale Earnhardt Way. The Class A property is near Interstate 35W and State Highway 114.
SIZE: 189,000 TENANT REPS: Cushman & Wakefield’s Blake Anderson, David Eseke and Chris Hillman DETAILS: International freight forwarder Kuehne & Nagel leased 189,000 square feet of industrial space in the Valley Parkway Distribution Center at 255 Valley Pkwy. in Lewisville.
FA L L 2 0 1 7
53,128 DESOTO POPULATION
$71.7K
DESOTO, TEXAS
AVG. HOUSEHOLD INCOME
AT THE HEART OF BUSINESS
92.5%
HIGH SCHOOL DEGREE OR HIGHER
LOCATION,
WW
LOCATION,
W.D ED
LOCATION!
15 10 31
MINUTES SOUTH OF DOWNTOWN DALLAS MINUTES FROM THE DALLAS EXECUTIVE AIRPORT MINUTES FROM THE DFW INTERNATIONAL AIRPORT
G
•
Business and industrial park offering more than 400 acres of land with easy access to I-35E, I-20, and I-45
•
Low-cost, building-ready land with an existing space inventory
•
Home to Kohl’s e-Commerce Fulfillment Center, Solar Turbines – A Caterpillar Company, and Sam’s/Wal-Mart Distribution
•
Development plans that aid in our partners success
•
Skilled workforce
FOR MORE INFORMATION CONTACT:
DeSoto Economic Development Corporation 972-230-9611
C .O R
211 E. Pleasant Run Rd. DeSoto, TX 75115
3
S SCORECARD
4
RETAIL LEASES 1 5 0-4587 SF 458814,022 SF
2
14,02332,637 SF 32,63876,429 SF 76,430152,946 SF
DATA SOURCE: XCELIGENT INC., A COMMERCIAL REAL ESTATE RESEARCH FIRM IN PARTNERSHIP WITH NTCAR, AND REAL ESTATE REVIEW RESEARCH.
LARGEST RETAIL LEASES
1
OVERSTOCKS & BARGAINS
SIZE: 51,093 square feet DETAILS: The big box retailer that buys inventories when retailers file for bankruptcy and then passes on the savings to customers, signed a lease in August for a retail space at the North Hills Village center in North Richland Hills.
3
HOMEGOODS
SIZE: 39,996 square feet LEASING AGENT: Weingarten’s Blane O’Banion DETAILS: Burlington has leased 39,996 square of retail space at Overton Park Plaza Building D. The location is off of Interstate 20 in southwest Fort Worth.
TUESDAY MORNING
SIZE: 12,000 square feet TENANT REPS: The Retail Connection’s Jeremy Zidell, Jennifer Reynolds, and Kathleen Nash DETAILS: The retailer leased 12,000 square feet in Denton from RR Marketplace LP.
3 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
BURLINGTON COAT FACTORY
5
CINEMARK
SIZE: 27,680 square feet LEASING AGENT: Woodcraft Capital LLC’s Jordan Cluff DETAIL: The movie theater chain has leased 27,680 square feet of space at North Hills Village in North Richland Hills.
IMAGES VIA XCELIGENT OR COURTESY OF THE COMPANIES.
SIZE: 23,000 square feet TENANT REP: CBRE’s Robert Aycock LEASING AGENTS: The Retail Connection’s David Levinson and Jack Weir DETAILS: HomeGoods leased 23,000 square feet of space at 1400-1800 South Loop 288 in Denton. The landlord is 3503 RP Denton Crossing LP. HomeGoods is a home-decor retail chain featuring a variety of furnishings, bedding, kitchenware, holiday goods and more.
4
2
FA L L 2 0 1 7
THANKING OUR DEVELOPMENT PARTNERS
WHO HELP MAKE THE COLONY SUCH A GREAT PLACE TO LIVE AND WORK
Keri Samford, Executive Director of Development 972.624.3127 • edc@thecolonytx.org • www.TheColonyEDC.org
R ROUNDTABLE
INDUSTRIAL REAL ESTATE
TAKING STOCK
WITH MORE FULFILLMENT AND DISTRIBUTION CENTERS SPRINGING UP ACROSS NORTH TEXAS, INDUSTRY EXPERTS WEIGH IN ON HOW NEW TECHNOLOGIES, OPPORTUNITIES, AND AVAILABLE LAND ARE SHAPING A STRONG FUTURE FOR THE INDUSTRIAL SECTOR — AND LOGISTICS — IN DALLAS-FORT WORTH. BY L ANCE MURR AY
|
PHOTOGR APHY BY MICHAEL SAMPLES
3 8 / 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
FA L L 2 0 1 7
R ROUNDTABLE
Whether you need a 50,000-square-foot industrial building or a 1.5-million-square-foot distribution hub, DFW can meet your needs. North Texas construction and leasing remains strong in the industrial sector, driven by fulfillment and distribution centers for major retailers, suppliers, and logistics companies. We gathered six of the top minds in the industrial sector — Kurt Griffin, Craig Jones, Jon Napper, Terry Pohlen, and Nick Cassavechia — to talk about the past, the present, and the future of the North Texas industrial arena during a roundtable at the Amenity Lounge conference room at St. Paul Place in Dallas. LANCE MURRAY: What are your impressions on the general state of industrial real estate in and around Dallas-Fort Worth right now? KURT GRIFFIN: The industrial real estate market is very healthy. I’ve been a broker in this market for a long time, and I’ve never been through a cycle that’s been so robust, deep, and active. Last year [in 2016], we had record absorption of 23 million square feet. We’re tracking about 12 million square feet of absorption through the first half of this year. Our fundamentals are still very good. Overall, we’re under 7 percent vacancy. On the demand side, we see lots of requirements in the market. CRAIG JONES: Earlier this year it felt like, ‘Hey, we’ve got a little bit too much
FA L L 2 0 1 7
going on in this market.’ A lot of construction was going on, but the [leasing] activity wasn’t happening. As we got toward the middle of the year, we’ve seen some deals land, some deals signed, and some that were right on the [cusp]. Now it feels very balanced. We’re seven—going on eight— years into this cycle. Two years ago, a lot of us were saying ‘Where is the bump in the road?’ Balance is the word that keeps coming to mind. JON NAPPER: I agree with you. Six months ago, we were getting ready to start the first of our two buildings in Mountain Creek [Business Park in Dallas] and we backed off [DFW Inland Port] in Wilmer simply because we felt like there was a tremendous amount of oversupply along the (Interstate) 20 corridor. In the last six months, most of that product has been absorbed. Now seems to be a good opportunity to go ahead and start building in the south.
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 / 3 9
R ROUNDTABLE GRIFFIN: We are tracking vacancy at about 20 percent in South Dallas. NAPPER: Obviously the best location is the south [DFW] Airport, right? All these developers are lining up to acquire new product in the South Airport submarket. GRIFFIN: That’s true. That whole area is getting ready to open up. JONES: We’re tracking right around 7 percent [vacancy] in the overall market. There are some dominos that will fall in South Dallas that will bring that vacancy down pretty fast. There’s a lot of activity in the 200,000- to 500,000-square-foot range. It’s picked up a lot of South Dallas. The tag line in our market has always been the 900,000- to 1-millionsquare-foot buildings. There are a few of those [projects] in South Dallas where the activity has been slower. The matrix has flipped from the past year or so. We see more [leasing] activity around the 500,000-square-foot size, rather than the 700,000-, 800,000- or a million-square-foot size. When a couple of those leases pop, vacancy goes from 20 percent to 10 or 11 percent. GRIFFIN: The market was building a lot of new speculative product, and some of these bigger deals that are coming into town have ended up being built since. A lot of speculative product has come online at the same time. Some of those bigger deals are going to develop soon
because they have special requirements and need amenities. NAPPER: That hurts those guys sitting on a million square feet. BRAD STRUCK: Yeah. How many 1-million-square-foot buildings are vacant or on the market? JONES: Five or six. STRUCK: That’s a lot of competition for a speculative project. GRIFFIN: There are currently only two projects that are delivered and on the ground. You’ve got PLR [Port Logistics Realty] on I-45, and Copeland Commercial’s I-20 Commerce Center on Houston School Road. GRIFFIN: There are a couple more coming. STRUCK: It would be fair to say South Dallas is the only part of the city that would be at risk. I mean, the (DFW) Airport market and the GSW [Great Southwest] all seem to be very strong. Even the Garland activity is picking up. JONES: I wouldn’t even use the word risk, in my opinion. NAPPER: It’s just a fact that the only readily available sites are in the southern sector. Except for new products that come along the airport, you’re not going to find any additional sites at GSW. GRIFFIN: That’s 12 or 18 months away. One of the comparisons we often make
NICK CASSAVECHIA
KURT GRIFFIN
CRAIG JONES
Nick Cassavechia is Partner and Chief Operating Officer at Frontier Equity. He’s a graduate of the Hankamer School of Business at Baylor University. Prior to Frontier Equity, Cassavechia worked at Quadrant Investment Properties LLC, HFF, and was a pitcher in the Detroit Tigers organization.
Kurt Griffin is Executive Managing Director at Cushman & Wakefield, having returned to that company from JLL. During his more than 26 years in real estate, Griffin has completed more than 300 transactions totaling 40 million square feet of space valued at more than $800 million.
Craig Jones is Managing Director at JLL where he is responsible for overseeing the strategic development and growth of the company’s industrial focus, and the execution of industrial and office-technical transactions. In his 19-year career, Jones has completed over 32 million square feet of transactions, valued at more than $350 million.
4 0 / 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
FA L L 2 0 1 7
R ROUNDTABLE
is from when the North Airport sale market was emerging. It always led in vacancy. It always led in absorption as well. That’s the same dynamic that we’re seeing in South Dallas right now. It does lead in vacancy, but it has also led in market absorption for past three years. JONES: The other word is opportunity. We’ve looked in the northeast part of the country for buildings from 800,000 to a million square feet, and they don’t exist. These companies have a “right now” requirement, and we all know how hard it is to title land up in the northeast. If you have to do a build-to-suit development, it might take 18 to 24 months. When we look at these buildings in South Dallas, or the two more that are about to come online that are 900,000 to a million square feet, there’s an opportunity there. GRIFFIN: An example of that is the VanTrust building, which just broke to Amazon for 920,000 square feet. That deal came to market and was done within two weeks. JONES: Bam. STRUCK: Dallas, overall, is in a bubble though. Compared to the rest of the country, we’re in a great place, even if we might have availability in South Dallas. I wouldn’t want to be in any other industrial market in the country.
NICK CASSAVECHIA: We’re seeing some developers redeveloping obsolete property. We see it in Garland. You finally see people raising roofs and looking at those opportunities and asking, “How can we take advantage of such a great location and turn it into a product that meets the needs of these tenants?” JONES: You bring up a great point. Those are the groups that have been lost in this whole puzzle. When you start off something like this, the first thing you start talking about is new development. But we forget where we were when we all started — those 25,000- to 150,000-square-foot deals [that] are the bread-and-butter deals, always. And that’s what’s been in those infill sites. CASSAVECHIA: [The vacancy rates] are all below 5 percent. JONES: It’s built a little bit of tenant frustration.
TERRY POHLEN
BRAD STRUCK
Jon Napper is Managing Partner and Founder of Courtland Development, a regional development firm with offices in Dallas and Houston. He has more than 25 years and 18 million square feet of commercial real estate expertise.
Terry Pohlen, Ph.D., is Associate Professor of Logistics and Director of the Center for Logistics Education and Research at the University of North Texas. Pohlen’s research focuses on the costing and financial management of logistics and supply chain management.
Brad Struck is President of Industrial Services at ESRP, where he is responsible for building and growing the industrial services team and overseeing daily operations. His focus is on total cost of occupancy including transportation, labor, logistics, taxes, electricity, and real estate in areas such as e-commerce fulfillment, food storage, and rail-served real estate.
FA L L 2 0 1 7
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 / 4 1
PHOTOS: CHASE MARDIS
JON NAPPER
R
ROUNDTABLE
They’re like, “Where do I go?” … “and my rates have gone up 30 percent.” If, all of the sudden, we turn around and something that we’ve been doing every day is increased by 30 percent, that’s a significant number. GRIFFIN: We were looking at a national statistic our research department put out recently, and I think it’s true for Dallas, too: Infill vacancy is 370 basis points lower than greenfield vacancy. To Craig’s point, there’s a lot of rent growth on infill locations because sometimes they’re a little more challenging. Sometimes there are additional costs involved in the entitlement. STRUCK: Some of the bigger deals can afford to go to Dallas. But if you’re a 20,000- or 30,000-square-foot distribution company, you have to be right in the middle of the action because of traffic patterns. You can’t afford to get way outside of town. They have no choice but to pay those rents. NAPPER: One thing you can do to entice them is to sell it to them. There’s a tremendous market right now for just selling those smaller buildings. GRIFFIN: That’s a fairly recent phenomenon. For the majority of our careers, those types of tenants said, “No, we just want to lease.” Why don’t more users in Dallas want to own their real estate? We’re seeing that change now. CASSAVECHIA: At some point, you’ve got to think that it’s going to tip when these businesses aren’t doing so well with their found income. They say, “Well, I can go put my real estate in a lump sum and put it back in my business.” If everyone is healthy and flush with cash, they might as well [buy], especially when we’re [increasing] rents 20 or 30 percent.
Let’s talk more about the tenants. What trends are you seeing on the occupier side? STRUCK: Tenants are definitely looking at longer-term leases. A three-year lease is nonexistent. We’re seeing tenants saying they’d rather negotiate a seven-year lease. Then during [final] stages, they [want] a 10-year lease. NAPPER: One of the biggest things that’s happened in this cycle — one that’s never happened before — is built-in rent growth. We’ve got a bump system now where you can go into base rent, and you’ve got 2- or 3-percent bumps [each] year. That has given our real estate sales market the opportunity to see built-in increased pricing or increased growth in their financials. GRIFFIN: It’s brought new investor interest to
4 2 / 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
TERRY POHLEN
this market, and capital is more interested in owning in Dallas. Great fundamentals make for a hot market. STRUCK: It’s why we are where we are. NAPPER: All of the sudden, we’ve got rent growth. We’ve never had rent growth before. GRIFFIN: Do you think because of the restriction on available land for development—almost every established submarket is now an infill market except for South Dallas or Alliance? NAPPER: It’s like [when] office rents went to net leasing. The brokerage community seemed to promote it. Then all of the sudden the industrial [sector] said they’re going to do rent growth, and we’re going have bumps. Every developer said, “I’m for that.” GRIFFIN: I think every broker was for that, too. NAPPER: Their commissions went up. You could see rent growth. Everybody said, “That’s a great idea.” JONES: Coming out of the crash, tenants got used to that annual increase. And then around 2011 or 2012, we started promoting it more. It’s become a market trend. It’s become normal, and tenants are used to it. They can budget for it. STRUCK: Because of the dynamic market, occupiers are now making much faster decisions than they were in the past. We’ve all been in situations where tenants are going to lose the building, or you’ve got multiple people competing for a space. They no longer have the luxury of thinking about a decision for months and analyzing it. If they don’t act quickly, they’re going to lose their preferred building. CASSAVECHIA: The landlords aren’t scared to have a vacancy. The infill markets are so tight that you feel pretty confident that your down time is going to be minimal. GRIFFIN: From a development perspective we continue to see buildings change. A 500,000-square-foot building three or four years ago would be a 32-foot clear [height] building. Today it’s going to be a 36-foot clear building. Truck courts that were 180 feet now need to be 190 feet or 195 feet. Everyone needs more parking. E-commerce is affecting that. NAPPER: Access drives around the perimeter are back: No common truck courts allowed. There have been technology changes here in the last few years. GRIFFIN: We were involved with the first 40-foot clear speculative building in South Dallas. That’s another building that’s about a million square feet. It won’t deliver until 2018. But a 40-foot clear building with 70-foot speed bays, that’s the
FA L L 2 0 1 7
first time that type of product has ever been built here on a speculative basis. CASSAVECHIA: What’s driving a wider base? GRIFFIN: The thinking is that on a 60foot speed bay, which is the norm today, you can unload a 53-foot trailer, but you’ve only got 7 feet of maneuverability for the forklift driver. If you go to 70 feet, you can unload the entire 53-foot bay and still have plenty of maneuverability for the forklift driver. MURRAY: What’s driving that? CASSAVECHIA: I’ve heard it’s been more capital-markets driven. Some of the consensus is that you want to kind of check those boxes. I’m really interested to hear from those of you on the tenant side. GRIFFIN: I would agree with that. I think it is somewhat capital driven. NAPPER: It is capital driven. You sit here and build a 50,000-square-foot building, and you make a 32-foot clear. You wouldn’t do that 10 years ago. It would have been an 18-foot clear. Capital markets demand that it have the functionality of a traditional warehouse. GRIFFIN: We wanted to go 40[-foot] speculative so we would appeal to e-commerce users. NAPPER: Do we have the equipment and the technology to get up there and get that? Because for a long time that was the big negative on going clear — everybody had to retool their warehouses to go up and reach that high. GRIFFIN: Amazon is spending, in some cases, $200 million dollars to outfit the interior of their buildings. They are spending a lot of money to make sure that they can make use of all that cube. NAPPER: On those 18-month leases. GRIFFIN: I think they do long-term leases on those deals. TERRY POHLEN: When you look at e-commerce and the type of materials, they are no longer doing the full pallet in and full pallet out. You have to do parcel in, parcel out. It’s very small quantities. If you are going to be doing that combined with robotics or automation, then it makes sense to go up. They’re holding a tremendous amount of inventory at any one of these e-commerce facilities.
FA L L 2 0 1 7
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 / 4 3
R ROUNDTABLE JONES: It’s very specific to each user. Like Kurt said, going spec on a 40-clear building will be an interesting experiment for this market to see whether it’s a consumer goods-type outfit that uses it and says, “We’re only going to go 36 clear.” Or is it an e-commerce user that can invest the money to put the conveyors in and maybe situate it to utilize the building? CASSAVECHIA: Kurt, do you know if Heinz is concerned doing a 36 clear? GRIFFIN: We definitely considered the 36 and did sort of a national poll of our co-[representatives] in other markets to see what developers were doing 40 foot clear elsewhere. There are some buildings in Atlanta, Chicago, and Inland Empire with 40-foot clear. We looked at how long it took those to lease up. There wasn’t any appreciable lead time on lease-ups. Those buildings may not demand a rent premium, but we think that capital will be very interested in owning those types of assets long term. NAPPER: You are not going to get an increased rent for your 40 clear, but your exit is going to be better long term.
KURT GRIFFIN
IF YOU’RE NOT A MARKET EXPERT, THEN YOU’RE NOT A GOOD BROKER. ... — KURT GRIFFIN
What challenges do you face that might not have been in existence 10 years ago? NAPPER: There’s an interesting technology concept about where the brokerage business is going, kind of like a VRBO (vacation rental by owner) for owners to get on the computer and ask, “Where can I find 100,000 square feet?” If that amount of information gets pushed to the private sector, is that going to impact your business? JONES: I remember having this discussion 10 years ago with a friend asking if brokerage is going to be extinct. NAPPER: I go back to when the brokers had a fiduciary responsibility between the owner and the user, and they worked both sides of the deal. It wasn’t until the 1980s where you ended with tenant rep and landlord rep. JONES: Let’s compare it to VRBO. I mean, I can go down to Austin, and I can call a hotel and book a room, or I can get online and book a room and just go — find a house and go down there with more enjoyment, right. It’s more recreation. For a company that is building and selling widgets every day, for them to then stop their business developments and sales to focus on real estate needs—I expect it a little bit harder to do. Autonomous driving for vehicles and trucks, and robotics in the warehouse—we’re in the infancy stages. It’s a very
4 4 / 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
fashionable thing to talk about as far as the way buildings are being developed. But I think we’re still a ways off before we see how much that’s going to impact what we’re doing every day. GRIFFIN: The brokers are not going to be extinct, or even obsolete anytime in the near future. I’ve got teen-aged kids, and they’ve talked to me about going into the real estate business. And I wouldn’t hesitate to tell them to follow that career path. If you’re not a market expert, then you’re not a good broker. Also, there’s a psychology and emotion involved in selling, which you can’t really do just on a computer. STRUCK: To me, tenants have become more sophisticated. They know what they want from the column spacing to the speed bays. Brokerage has become more sophisticated. It’s not just about going and finding 500,000 square feet and negotiating the best rate. They are expecting you to analyze labor, incentives, taxes, and traffic patterns. As long as you’re a broker who is providing those types of services, that’s something that can never be provided by a computer. NAPPER: I agree. The expertise is the factor that makes all the difference. GRIFFIN: I would like to hear Terry’s opinion on autonomous trucking. POHLEN: Look at how companies are structuring their supply chain trying to get very high velocity through their facilities. They can’t just sit on the inventory because of the obsolescence. You need the inventory to turn. To find a facility that will support that technology—that’s what’s driving a lot of this new construction. Whatever you look at in logistics, labor is your number one expense in terms of the operations. If you look overall, it’s transportation. So what they are going to be doing in the warehouse is trying to figure out how minimize that critical component of labor with a lot more automation. That’s why you see robotics, especially in parcel picks. You cannot get that pick wrong and have a return. So you are going to see a lot more robotics to get accuracy. We are going to see artificial reality playing out in the warehouse: When a box comes, it’s scanned. Then a device, maybe a pair of
FA L L 2 0 1 7
BRAD STRUCK
CITY OF
NORTH RICHLAND HILLS
ECONOMIC DEVELOPMENT DEPARTMENT 35W
35E
377 114 121
114 377 26
35W
121 183
183
FORT WORTH
35E
635
360
820 30
20
TENANTS HAVE BECOME MORE SOPHISTICATED. THEY KNOW WHAT THEY WANT FROM THE COLUMN SPACING TO THE SPEED BAYS. BROKERAGE HAS BECOME MORE SOPHISTICATED. — BRAD STRUCK glasses, tells me what the item is. I would have laughed five years ago at the thought of autonomous trucks. Now, I’m taking it a lot more seriously. I believe what we’ll see within the next five years is truckable platooning, where your trucks are connected wirelessly and lead drivers will run a convoy at separations of 6 feet between trucks. TxDOT is already looking at the corridors [to put that in.] It’s coming. But I think where we’re going to see most of the automation will be inside the facility. GRIFFIN: Your point is well made. Users are combining different uses inside the same box. Before, they just had an e-commerce facility and a separate distribution facility. Now, we’re seeing users go to an operation that’s one-third e-commerce, one-third fulfillment, and one-third distribution. CASSAVECHIA: Do you think this technology is going to replace jobs? Will there be the same number of people working in the warehouses? POHLEN: It could result in head-count reduction, but I think you’re primarily going to see people moving to value-added roles. There’s probably going to be more light assembly, finishing, and postponement. You see some of that shifting going on now: I can put a human workforce where I will get the most value added. Having somebody walk up to a warehouse, pick an item, and then bring it back to a shipping bay doesn’t have a lot of value. We’re going to see a conversion. Another technology that’s going to have a major effect on supply is 3D printing. Combining that technology with last-minute customization is where [we’ll] get a human element. GRIFFIN: Every tenant in the market wants to know where the available labor is: Where is the new labor coming from? How do we attract more labor? POHLEN: We have a lot of people moving to the area, but the challenge is the sophistication [that’s needed] in warehouses. We’re expecting people in the warehouse to perform a variety of functions. People are going out farther
FA L L 2 0 1 7
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 / 4 5
R ROUNDTABLE from the Dallas-Fort Worth area [and we’ll ] try to get people to commute into those distribution centers. We’re going to have to get creative in how we move people from one area to the industrial locations. JONES: I think labor is our biggest issue right now, and that’s no surprise. It costs companies more for hiring. Readily available skilled labor—what if they’re repurposing? POHLEN: When the job market isn’t that strong, and wages aren’t that high, I’ll be a truck driver. With all of the construction that we are going to need after the hurricanes, most of those people working construction also have a [commercial driver’s license]. They shift wherever they make more money. Then we have electronic logging devices that are going to be mandatory in December (2017). We don’t know how much cheating is going on with these small trucking companies. And 94 percent of trucking companies out there have six or fewer trucks, and there are over 600,000 trucking companies in the United States; 400,000 [companies] in the long-haul market. So if they’ve been cheating, and now all of the sudden you have to have an electronic device, you can’t cheat. That’s going to take capacity out of the market. ... And if the economy gets above two and a half percent [GDP growth] and stays there, that’s going to pull these drivers out [of the trucking workforce]. That’s why I think South Dallas and Alliance — and being near those inner mobile facilities— is going to be critical. NAPPER: Some of the new companies coming in are looking at the demographics of Texas. Everything seems to be south of Dallas-Fort Worth. It’s been a real positive to be in the southern sector because stuff coming out of Mexico gets here — especially with the electronic monitoring of these trucks. My boys at Alliance—they’ve got to travel through the Metroplex to get through to the north. That may take them another hour at 4 o’clock in the afternoon, whereas if they hit the southern sector, I-20 corridor, it’s possible. JONES: We’ve had quite a few clients that have talked specifically about that: “I’m leaving Laredo. I can come right up, and in about eight hours I’m right there in South Dallas.” NAPPER: Right. Whereas if I have to go to Plano, that’s another two hours. POHLEN: Because you can just about hit off the Mexican border within the hours of service limitations. When you look at the importance
4 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
CRAIG JONES
of that border to South Dallas, 80 percent of the trade that comes off of the Texas/ Mexico border comes through Dallas-Fort Worth. Having that flow—South Dallas is very well positioned to take advantage of that. JONES: You look at Laredo as a port. If you compare it to the ports of the East Coast and West Coast, it’s astonishing how much inventory they handle coming through Laredo.
Will potential changes to NAFTA impact warehouse and fulfillment facility placement? JONES: I think it’s very real. A couple of clients of mine over the past year have had to make some decisions. Because there’s quite a bit of uncertainty as to what will happen … for a couple of these specific instances, they’ve had to make decisions based on its business as usual. It’s real, but it’s hard to say what will happen. STRUCK: The larger tenants are driven by the intermodals. Overseas shipments are really where the majority of them are, so they’re not affected by that. It might hurt a little, but I think we’re still poised for a lot of growth.
Where is the most interest right now, and for what size range? GRIFFIN: It’s on both ends of the spectrum. We see a lot of activity for requirements for 200,000 square feet and below—both companies growing organically and new companies coming to town. Then we also have several large requirements of 700,000 square feet and above. Where we haven’t seen a lot of deal activity is between 400,000 and 600,000 square feet. That’s been the hole in the donut for two or three years now. JONES: There is a ton of organic growth in the infill sites. A lot of companies are smaller users. These 50,000-square-foot users are signing a five- or seven-year lease and calling us the second year asking to expand. The issue becomes about getting creative on how to solve that expansion because they want to be next door. CASSAVECHIA: We’ll go in and acquire a 100,000-square-foot multitenant building. When we talk to all the tenants before we acquire, every single one of them tells us they want to grow. And we just bought 100 percent of these buildings, so we’re sitting here thinking someone has to go, and someone has to expand in that space. GRIFFIN: And rent’s going up. CASSAVECHIA: It’s a jigsaw puzzle. It’s all positive from what you guys are saying. These big deals, big buildings, and big trades dominate the market and all the stats. But there’s so much competition on the smaller ones, it just doesn’t move the needle.
FA L L 2 0 1 7
JON NAPPER
R ROUNDTABLE
EVERYTHING SEEMS TO BE SOUTH OF DALLAS-FORT WORTH. IT’S BEEN A REAL POSITIVE TO BE IN THE SOUTHERN SECTOR ... — JON NAPPER So, picking up on that, what’s going on with the multitenant market? CASSAVECHIA: Extremely robust. And not many people are building it. We are, and we hope our competitors are trying to build them. GRIFFIN: They want to, but it’s hard to find good sites. CASSAVECHIA: Extremely hard. NAPPER: Typically, the smaller tenants, they want to be infill. They want to be in GSW or where their labor is. They don’t want to move too far from an existing facility where they might have labor, so a guy in GSW doesn’t want to move to South Fort Worth or Wilmer. Finding sites there becomes a challenge. Construction costs are up, but so are rents, and so is demand. What used to be a $4 [per square foot] rent rate is now a $5 [per square foot] rent rate. Instead of giving them $3.50 in [tenant improvements (TI) per square foot], you give them $5 in TI. You just see that pushing up — who would think you would also be selling them at $70, $80, or $90 a foot? It’s a good thing. CASSAVECHIA: The obsolete sites and infill markets are where we’ve seen some people need traction. If you do it right and have the right price, it will be successful because a lot of these markets haven’t seen new product. There’s literally no site unless you overpay for something and demolish it, and then the other rents there are going to go up. JONES: We see some of that up in Northwest Dallas in Valwood. It’s not about just having what everyone else has. It’s about who can be more creative.
How is industrial as an investment class? GRIFFIN: Most stable. JONES: Stable. CASSAVECHIA: It’s the least capital intensive, good steady cash flow. The real estate in general capital is flowing with real estate and pension funds and have increased their allocations to the real estate sector. We go with product lines. It’s fascinating to see industrial being the top choice and top performer. And it’s the hardest asset class on which to actually place the capital. It’s a lot easier to go place one hundred million, two hundred million in an office building. Much harder in an industrial. It’s the supply and demand effect. That’s really been astounding to watch. POHLEN: Everybody is looking at Wal-Mart and Amazon, and they are trying to figure out how they got competitive advantage. They got it through managing their supply chain as efficiently as possible and working out those relationships across the supply chain. They’re willing to make more and more investments into
FA L L 2 0 1 7
industrial real estate and into logistics to get that competitive advantage.
How does customer demand impact e-commerce companies and how they plan? Going further, how does that impact what distribution product comes to the market? JONES:E-commerce is the big tag line for all of us in this room. When you look at the percentage of retail sales of e-commerce occupiers and users [compared] to overall sales, it’s astonishing. What is it—7 or 8 percent? GRIFFIN: 10. JONES: A real example — this week there’s a household name retailer that signed a letter of intent in another submarket for a-millionsquare-foot facility, solely for e-commerce. Three percent of its retail sales are online. Only 3 percent! And they are sitting there saying we are missing the boat. This is a product everybody has in their house, and they’ve never had an e-commerce facility.
Where do manufacturing and factories fit into the DFW industrial market? GRIFFIN: Our market is predominantly a distribution market. Probably 80 percent of the deals we see are primarily distribution. Some companies are doing production, but from a heavy manufacturing standpoint, we don’t see a lot of that. NAPPER: Mountain Creek is a bit of an exception. We have a lot of manufacturing there because of the labor availability and 24-inch water lines. We’ve got Niagara and Nestle both bottling water down there. American Leather is producing
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 / 4 7
R
ROUNDTABLE
NICK CASSAVECHIA
furniture. We got 3,300 employees working in Mountain Creek, which is a ridiculous number for the distribution side. It’s only 6 million square feet. But we’ve got Chewy, and we’ve got the Atlas. We do have the e-commerce effects, too, which just adds to the employment. STRUCK: I’ve gotten a couple of opportunities from when the political environment changed and some overseas companies felt like they needed a U.S. presence for manufacturing, and they zeroed in on Dallas. It remains to be seen if these companies go through with their plans, but they are considering. GRIFFIN: I think labor is going to constrain the manufacturing capacity that we see coming to this market.
So, where are the opportunities in the industrial sector? NAPPER: Continued e-commerce growth. As Kurt said, you’ve got a lot of these guys who are just doing it inside the warehouse right now. And a lot of them are saying, “I can’t comingle that. We’ve got to have several facilities.” Having several facilities makes our market thrive. All of the sudden, we’re seeing more and more of it come here because we have such a great reputation with the MO [manufacturing only] facilities in Alliance, South Dallas, as well as DFW airport. We’ll continue to see e-commerce growth that will add to our normal distribution growth. JONES: Continued population growth. We’ve been a very fortunate recipient of that, and people are still coming here. That’s driving more and more demand. GRIFFIN: Dallas is well-positioned too. We don’t have a regional competitor. Dallas is a regional distribution area. We don’t compete with Houston. We don’t compete with Oklahoma. We don’t compete with Kansas. Our nearest competitor is probably Atlanta or Memphis. We’re fortunate to be positioned where we are. POHLEN: Another thing that is going to greatly shape and drive the future will be intermodal. We essentially have five intermodal hubs in this area. We can bring freight from the West Coast, marry it up with freight from Mexico, and distribute it out of here. We’re also seeing the global supply chains [becoming] a lot more innovative at the intermodal hubs.
Given that, are there companies that might be looking through the windows and knocking on our doors, wanting properties that fit the intermodal needs?
4 8 / 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
STRUCK: We’re a consumer-driven market. Any company, such as a plastics or cotton company, likes being here because that gives them a lot of cars where they can send it back out. Those types of companies will continue to come here because other markets don’t have such a strong inbound intermodal.
Is there a practical limit to the size that a facility could be? NAPPER: I don’t think there is a limit at all. As long as the topography is flat enough, you can keep going—and even then, you could stairstep it. JONES: Coming back to what we said earlier, it’s the exit strategy. [The size is tied to] what the capital markets want. GRIFFIN: And it’s impacted by what Terry was talking about: Technology. Inventory turns are really important. As long as building systems and technology can keep up, we’ll continue to have high inventory turnover. That’s the thing that will impact the ultimate size. POHLEN: You’re still constrained by how long it takes an order-picker to go out, pick something, and bring it back. Then you’re staging all those orders. That’s where you’re going to have to have a very sophisticated warehouse management system. Otherwise, you are just sitting in that staging area with a whole bunch of product. There are some physical limitations, but as the warehouse management systems become more sophisticated, it will overcome some boundaries. Until you get a lot more automation, somebody driving up a forklift to pick up that property and then bring it back — that’s a lot of time. That’s a lot of labor. I think there’s still a physical constraint, and it’s going to be driven by the size of our market. ... The e-commerce is going to be driving some of that, but even then, they’re not looking at a 2 million-square-foot facility because they are faced with that restraint. And, when you put that many people in there, you have to have all the parking to go with the facility. That’s going to be a huge constraint GRIFFIN: We got an inquiry on a new million-square-foot [project] that has a trailer requirement of 800. That building sitting by itself doesn’t exist. People with million-square-foot spec buildings are going to need some additional land or go out and buy some to try to solve for that requirement. Amazon just did — it’s going to be signed soon — a 500,000 square foot deal in South Dallas where they have a parking requirement for about 800 folks. That developer had to go out and buy additional land to accommodate that. NAPPER: If you go to any apartment building downtown when UPS or FedEx comes in, you’ll see all those smiling faces and boxes coming off that truck. They are supplying those people upstairs who can’t walk to a grocery store.
FA L L 2 0 1 7
POHLEN: We’re going to see Amazon continue to expand. Because the challenge they face is getting enough density going to that doorstep. It’s not just bringing one item. I’m bringing your shampoo, toilet paper, food, clothes, pressed shirts, everything. That’s how they are going to make money. If I have to take one box out there, I can’t make money off of it with free shipping. I’ve got to take a whole bunch of freight out to you. Amazon’s profit margin is almost flat. STRUCK: They’re pushing some of their suppliers to warehouse more and do it directly. They’ve built up this platform where the retailer has to come to them.
How do airports play into the e-commerce and distribution scenario? UPS and FedEx have major hubs here. That’s got to be an attractive proposition.
FA L L 2 0 1 7
type users. That’s what’s reconverting a lot of the old retail strip centers, shopping centers, and malls to be local distribution hubs. We’ll see more of that. You must be able to get it—not just the intermodal facilities—but get it into the marketplace where you can supply Frisco in the middle of Frisco.
Any closing thoughts?
POHLEN: If you’re going to have a major distribution hub anywhere in the United States, you’ve got to plug and play in the global economy. For example, I want to say we had $70 plus billion in trade clearing customs at DFW Airport alone last year. That brings in the high-end electronics. It brings in the Apple products, the medical devices, the stuff that we’re going to be seeing. Airports can feed this market [with products] that wouldn’t move by rail or truck. And DFW Airport is one of the few in the country that is not completely at capacity. It’s still going to be a while before we see anything spill over to Alliance because you’ve got 50 airlines delivering freight into DFW Airport, and 250 freighters that focus on the airport. Trying to get somebody to come all the way over to Alliance and getting them occasional airplanes—Alliance needs volume, and they need to be able to do overnight shipments. That’s what all those carriers provide to you. GRIFFIN: Even the guys at Hillwood would tell that you their growth has been primarily from intermodal, not the [Alliance] airport. NAPPER: Last-mile delivery seems to be a major concern for all these e-commerce
Imagine. Empower. Impact.
R ROUNDTABLE
JONES: We’re very blessed to be where we are. There’s still a tremendous amount of opportunity and I don’t think there’s a cliff in the horizon. There will be some sort of a macroeconomic correction at some point. But the strength of this market will push us through it. GRIFFIN: More dollars are going into industrial than office, retail, multifamily, or any other sector. It’s the most desired asset class from an investment perspective. And, it’s interesting how the perception of industrial real estate has changed over the past decade. For those of us who have been in industrial real estate for a long time, it was never viewed as sexy. Industrial real estate is actually sexy now.
NOVEMBER 2
TICKETS AVAILABLE NOW
GIL L E Y ’S SOU T HSIDE BA L LROOM
R ECOU NCIL .COM
6:0 0 P.M.
214 692 3600
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 / 4 9
F FEATURE
GLOBE LIFE FIELD
OLD PARKLAND
FOURTEEN 555
AMERICAN AIRLINES’ NEW FORT WORTH HEADQUARTERS
MCKINNEY & OLIVE
17SEVENTEEN MCKINNEY
CYPRESS WATERS
CHARLES SCHWAB CORP. — CIRCLE T RANCH
ONE LEGACY WEST
KPMG PLAZA HALL 5 0 / D A L L A S - F O R T W O R T H R E A L E SAT TAT E R ARTS EVIEW
TOYOTA NORTH AMERICAN HEADQUARTERS
FA L L 2 0 1 7
MEGA DEAL MAKERS
MEET THE PEOPLE BEHIND THE DEALS THAT HAVE SHAPED THE DALLAS REGION BY NICHOL AS SAKEL ARIS
Arlington pulled the trigger on a new air-conditioned stadium for the Texas Rangers before other cities could blink. Toyota secretly showed interest in one of Plano’s most-soughtafter properties for a new North American headquarters not long after the tract hit the market. Craig Hall waited more than 20 years to develop high-profile properties in the Arts District in Dallas. Additionally, in 1990, he had the foresight to buy 160 acres in Frisco for a master-planned office project decades before Jerry Jones moved the headquarters for the Dallas Cowboys across the street. All of these mega deals have a story behind them, whether it’s hard bargaining, tapping relationships, or just the patience to wait years to complete a vision. Sometimes, city officials don’t know who they are negotiating with until a deal is finalized. “Dallas is really on fire right now. It’s a great place to be in the real estate business,” said Hall, chairman and founder of the HALL Group. “We’re long-term holders, and we develop when the timing is right. You have to be kind of crazy and stay with them. A lot of things have to come together at the same time. But frankly, that’s what makes it fun.” FA L L 2 0 1 7
F FEATURE True to Texas’ reputation, the dealmakers in Dallas-Fort Worth are larger-than-life figures and household names. The roster includes Ross Perot Jr., the mastermind behind AllianceTexas in Fort Worth; John Goff, whose influence extends all over Uptown Dallas; and Hall, a Michigan native whose portfolio extends from downtown Dallas to Frisco. Developers like Bill Cawley have shaped the landscape along the Dallas North Tollway. The vision of real estate moguls like Sam Ware and Harlan Crow will bring new life to decades-old buildings such as the former J.C. Penney headquarters in Plano and Old Parkland Hospital in Dallas. And it’s not just a men’s club, either. Women like Sabine Gaedeke Stener and Lucy Billingsley are shaping the employment centers of the future with major projects that include One Legacy West (Plano), 17Seventeen McKinney Tower (Uptown Dallas) and Cypress Waters (Coppell). The building boom that North Texas is experiencing means more deals are getting done now than in recent years, including speculative office buildings and warehouses. Hall has been at this a long time and he doesn’t think the region is overbuilding right now. “We need to be thoughtful and careful as a development community not to overbuild, and I don’t think we are at this point,” Hall said. “I think we’re building just what we need to build.” Here, we look at some of the biggest deals in North Texas and how they happened.
KEEPING AT&T
For years, downtown Dallas became a ghost town after 5 p.m. as suburban flight pushed people farther north. Just in the last decade, that trend has reversed, with downtown Dallas growing from about 200 residents 10 years ago to 11,000 today and many more coming, said Kourtny Garrett, president and CEO of Downtown Dallas Inc. As patient as he is, even Hall never expected it would take 20 years to develop the mixed-use HALL Arts development at Ross Avenue and Leonard Street. He kick-started the HALL Arts development with the 18-story KPMG Plaza at Hall Arts, which opened in 2015. The next phase will be HALL Arts Residences and HALL Arts Hotel, a $250-million, 25-story
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 / 5 1
F FEATURE LUCY BILLINGSLEY PARTNER AT BILLINGSLEY COMPANY
PHOTO: MICHAEL SAMPLES
Real estate mogul Lucy Billingsley has been a fixture in Dallas since she founded Billingsley Company with husband Henry in 1978. She’s got her fingerprints on apartments, offices, retail, industrial, and master planned mixed-use projects. She’s perhaps best known for Cypress Waters in far northwest Dallas/Coppell and One Arts Plaza in the Arts District. Cypress Waters mixes offices, townhomes, and retail space. Major headquarters such as 7-Eleven have already opened headquarters in the development, with Brinker International and Signet Jewelers moving in next year. Billingsley also made a statement with the One Arts Plaza in the Arts District that lights up with an LED square every night. The building houses corporate offices, residences and retail space.
BILL CAWLEY CEO OF CAWLEY PARTNERS
PHOTO: CAWLEY PARTNERS 5 2 / 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
Bill Cawley’s legacy can be seen by driving the Dallas North Tollway, where his Class A offices dominate the horizon. From North Dallas to Addison, he’s developed 1 million square feet of office space in the last decade alone. That includes the Fourteen 555 building on the Tollway, north of Interstate 635, that will be the new headquarters for Occidental Petroleum Corp. Over the course of his 30-yearcareer, Cawley has acquired or developed more than 12 million square feet of office space. The Chicago native’s Cawley Partners is based in Dallas. This year, D CEO Magazine named Cawley one of the most influential business leaders in North Texas.
residential and hotel building. The development will add 44 luxury condominiums and 183 hotel rooms to the downtown mix. “Downtown is coming back as the urban parts of Dallas are doing well,” Hall said. The influx of young, educated residents back into downtown and Uptown helped Downtown Dallas Inc. grease the wheels for other big deals, including AT&T’s decision to keep its headquarters on Akard Street. “We were right at the table holding hands with them the entire way,” Garrett said. “They were interested in both their existing location and several others that were outside of downtown. They are trying to compete with tech talent, and what tech talent wants is urban living. They feel like this gave them a leg up. Our role was to reinforce those decisions.” The Dallas-based telecom will invest $100 million in expanding, renovating, and opening up its headquarters while adding 500 new jobs.
A NEW JOB CENTER
As the metro area pushed northward, Plano began positioning itself, not as a bedroom community but as a job center. Much of that responsibility falls to the city’s biggest cheerleader, Sally Bane. As executive director of economic development, Bane takes pride in the fact that the city is a net importer of jobs. “We have more jobs than we have workforce population in the city,” Bane said. “Plano has a very long, solid history of attracting companies all the way back to 1985, when Frito Lay made the important decision to locate its North American headquarters in Legacy Business Park.” The completion of the Sam Rayburn Tollway a decade ago opened up prime land near the Dallas North Tollway to development. Long owned by J.C. Penney, the land sat vacant just waiting for the right project to come along. “There’s always been a lot of interest but the land was controlled by J.C. Penney. Until they made the decision to put that 240 acres into play all those inquiries never developed into much,” Bane said. “We had over the years some very interesting opportunities to put a project on that land.” FedEx Office moved first, putting its world headquarters at the corner of the appropriately named Headquarters and Legacy drives. Then the mysterious meetings with an unidentified company started in late 2013. It’s
FA L L 2 0 1 7
RANKED IN THE
TOP
4
FARMERS
ECONOMIC DEVELOPMENT AGENCIES
BRANCH
To learn more about our generous incentive packages contact the
FARMERS BRANCH ECONOMIC DEVELOPMENT DEPARTMENT Allison Cook , Economic Development Director, 972.919.2507
FARMERSBRANCHTX.GOV
Tollway Center
Ross Tower
Here’s to the Deal Makers.
Perot Family Offices
architecture interiors planning graphics strategy bokapowell.com
Granite Park Four & Five
Fourteen555
One McKinney Plaza
CoreLogic Dallas Campus
F FEATURE PHOTO: MICHAEL SAMPLES
The son of legendary real estate magnate Trammell Crow, Harlan Crow carries on the real estate legacy. The private family business manages real estate, investments, and other capital. Crow has worked at the firm since 1974 and became CEO in 1988. One of Crow’s biggest deals is the renovation of the Old Parkland Hospital on Oak Lawn Avenue in Dallas. Work is underway on transforming the century-old hospital into an exclusive office for Crow Holdings headquarters and other tenants who want to keep a low profile. Crow’s portfolio includes other Dallas landmarks such as the Anatole Hotel and the Dallas Market Center.
LARGEST DEALS IN THE DALLAS REGION SINCE 2015 $825 MILLION: State Farm Auto Insurance Company sold the City Line buildings in Richardson to Transwestern Investment Group + Mirae Asset Global Investments in November 2016. $353 MILLION J.C. Penney sold its Plano headquarters in December 2016 to Dreien Opportunity Partners. $344 MILLION Verizon sold its headquarters buildings at 600 and 700 Hidden Ridge in Irving to Mesirow Financial in August 2016. $330 MILLION Brookdale Group sold the Towers at Williams Square in Irving to Apollo Global Real Estate + Vanderbilt Partners in October 2015. $300 MILLION Cannon Commercial sold the Galleria Towers in Dallas to CBRE Global Investors in September 2015.
$250 MILLION HALL Financial Group sold KPMG Tower at Hall Arts in April 2016 to Civitas Capital Group, on behalf of an Asian Investment Fund.
not uncommon for corporate representatives to come in asking questions without revealing the companies for whom they work, Bane said. Though Bane and the other economic development employees didn’t know the name of the interested party, everyone worked tirelessly without getting much sleep. “We never had an obsessive desire to figure out who it is,” she said. “Our biggest focus is always satisfying the site requirements of the project.” They also knew that area business leaders had been contacted and asked what they liked about working in Plano. Additionally, Dallas Fort Worth International Airport executives visited with representatives from the mystery suitor. “You can’t underestimate how solid of a business community we have,” Garrett said. “It reinforces [a company’s] decision-making. They can see the other global investments that are here.”
FA L L 2 0 1 7
SOURCE: Yardi Matrix
$285 MILLION Hines Interests sold Chase Tower in downtown Dallas to Fortis Property Group in August 2016.
PHOTO: CROW HOLDINGS
CHAIRMAN AND CEO OF CROW HOLDINGS
JOHN GOFF CHAIRMAN & CEO OF CRESCENT REAL ESTATE HOLDINGS
From the sparkling new McKinney & Olive tower to the newly remodeled Crescent, John Goff’s fingerprints are all over some of Uptown Dallas’ most exclusive addresses. The Fort Worth investor’s portfolio extends throughout North Texas and across the country, and includes hotels, upscale condominiums, and resorts. Goff co-founded Crescent Real Estate Equities in the early 1990s and went public in 1994. Just 13 years later, the company had grown from $500 million to $6.5 billion in value. In 2009, Goff led a joint venture to buy his company back.
PHOTO: CRESCENT REAL ESTATE HOLDINGS
CITYLINE
HARLAN CROW
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 / 5 5
F FEATURE CRAIG HALL CHAIRMAN AND FOUNDER OF HALL GROUP
PHOTO: HALL GROUP
Craig Hall got into real estate at age 18 and has never looked back. He’s developed office towers, corporate campuses, hotels, and owns a California winery. He’s also an avid art collector. The Michigan native moved to Dallas in the 1980s and thrived until the real estate crash of 1986. Most recently, he opened KPMG Tower at Hall Arts, an office building in the Arts District in downtown Dallas. Construction has started on the land next to it on a 25-story luxury condominium and hotel tower. Hall plans to continue building upward on a parking lot east of Chase Tower on Ross Avenue.
ROSS PEROT JR. CHAIRMAN OF PEROT COMPANIES AND HILLWOOD
PHOTO: HILLWOOD 5 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
The man behind the booming AllianceTexas development in north Fort Worth has been closing megadeals in North Texas for more than three decades. His master plan for the 18,000acre Alliance as a live, work, and play area includes the new Facebook data center, Alliance Town Center, Charles Schwab Corp.’s new campus at Circle T Ranch, plenty of singlefamily houses and apartments, Alliance Airport, and the Burlington Northern Santa Fe intermodal hub, just to name a few. His Hillwood Properties also is behind the Frisco Station development in Frisco. There’s even talk of Perot developing a 70-story skyscraper in downtown Dallas that could rival Bank of America tower, currently the tallest building in North Texas. Perot also invests in startup companies through the family fund.
Then came the big reveal. Plano had beat out 100 other cities across the nation as the new location for Toyota’s North American headquarters. “We were absolutely delighted that it was Toyota,” Bane said, also praising the support from the Plano City Council and city administration to help drive the corporation’s decision The Japanese automaker began moving into the eight-building, 2.1-million-squarefoot campus in May and ultimately will have 4,000 people working there, mostly transplants from California. The Toyota campus marked the largest new office delivery in the second quarter in Texas. For the third quarter in 2017, Plano’s Legacy Central, at 900,000 square feet, will be the largest and is revitalizing the former Texas Instruments headquarters at Legacy Drive and U.S. 75.
SILICON VALLEY COMES TO ALLIANCE
Fort Worth has had its share of mega deals, too. Tower cranes soar over the trees south of Dallas Fort Worth International Airport where American Airlines’ new $350 million headquarters is being built. Bell Helicopter is spending $235 million to expand its operations, too. City incentives were key to retaining these longtime Fort Worth staples. Then, there was another mysterious newcomer who came knocking. The unidentified company wanted to build a billion-dollar data center in the Alliance area of north Fort Worth. From the size of the project and the utility demands, it had to be one of the giant Silicon Valley companies, said Robert Sturns, economic development director for the city of Fort Worth. “They held everything close to the vest,” Sturns said. “We really weren’t sure who the company was the entire time we were negotiating. We knew it was a data center project.” Finally, it was revealed that the mystery suitor was none other than Facebook. “Having that name locate within Fort Worth was amazing because, obviously, Facebook has widespread appeal,” Sturns said.
ARLINGTON THROWS OTHER CITIES A CURVE BALL
The Texas Rangers still had seven years left on its lease for Globe Life Park, but that didn’t stop endless sports debates about other cities courting the Major League Baseball team. Rumors swirled that Dallas could steal them away with an air-conditioned stadium
FA L L 2 0 1 7
Welcome to the family. Allen is home to many businesses, and we’re proud of every single one. From our diverse, well-educated population to our business-friendly economic development corporation, we give the companies that call us home the tools they need to succeed. To find out if this is the family for you, visit AllenEDC.com.
The Place to Raise Your Business
“ TREC enables me to connect with industry leaders who share a common goal of building a better city.
Greg Kraus INVESCO REAL ESTATE
”
Imagine. Empower. Impact.
Join TREC for 2018 now & build the city you’ve imagined. RECOUNCIL.COM
214 692 3600
PHONE
3100 McKinnon Street NO. 1150, Dallas, Texas 75201
PHOTO CREDITS FOR OPENING PAGE: GLOBE LIFE FIELD - HKS OLD PARKLAND - Crow Holdings FOURTEEN555 - Cawley Partners AMERICAN AIRLINES HQ - American Airlines McKINNEY & OLIVE - Crescent Real Estate Holdings 17SEVENTEEN McKINNEY — Gaedeke Group CHARLES SCHWAB CORP. — Hillwood CYPRESS WATERS - Michael Samples KPMG PLAZA AT HALL ARTS - Michael Samples TOYOTA HEADQUARETERS - Toyota USA ONE LEGACY WEST - Gaedeke Group FA L L 2 0 1 7
F FEATURE SABINE GAEDEKE STENER German-born Sabine Gaedeke Stener has been involved with Dallas real estate deals for more than 20 years. The Gaedeke Group mostly remodels existing buildings into Class A offices. One of the company’s largest projects to date is the One Legacy West building in the shadow of Toyota’s North American headquarters and other corporate headquarters in Plano. The 14-story tower is set up for multiple tenants, helping it stand out among the single-occupant buildings. Stener made inroads into Uptown Dallas by snatching up the 17Seventeen McKinney tower in 2016.
PHOTO: GAEDEKE GROUP
CEO OF GAEDEKE GROUP
SAM WARE MANAGING PARTNER AND CEO OF DREIEN OPPORTUNITY PARTNERS
Sam Ware takes an unconventional approach to real estate by targeting older properties that need some TLC. He brings offices and retail centers into the modern age and turns them around for a nice profit within two to four years. Now the Dallas-based developer is taking on some of the biggest projects yet. He paid $350 million for the J.C. Penney campus in Plano. The retailer sold the sprawling campus as it downsized its headquarters space and leased it back. Ware is preparing the space for multiple tenants. Ware and his business partner, Jeff Blakeley, have finalized a sales-leaseback deal for the former Parkland Hospital campus along Harry Hines Boulevard in Dallas, and will repurpose the 1.4-million-squarefoot property as an amenities-rich development called The District.
PHOTO: DREIEN OPPORTUNITY PARTNERS
near downtown Dallas. Arlington City Manager Trey Yelverton made sure that never happened by offering the Rangers a deal on a stadium with a retractable roof just south of the existing one. The surprise announcement came a year ago, and Arlington voters approved the city’s $500 million participation in November 2016. Construction on the Rangers new ballpark is just starting and is expected to be finished in time for the 2020 baseball season. “By moving ahead and building the facility now we’ll be able to have larger attendance and bring in more revenue,” Arlington Mayor Jeff Williams said. “We’ll be able to do yearround events with that retractable roof. And there are no questions about whether they are leaving or not.” In a separate but also critical deal, Arlington fulfilled its promise to bring entertainment, restaurants, and hotels within walking distance of the baseball stadium with Texas Live! The Cordish Cos. broke ground on the mixeduse project this summer, and it’s expected to be open in late summer 2018. “It’ll be a great opportunity for fans to come before and after games,” Williams said. “Even when there’s no games going on there, Texas Live! will have concerts and sports watch parties.” Much like the Dallas Cowboys deal a decade prior, the Rangers’ new stadium was all about relationships and reputation, Yelverton said. “Mayor [Robert] Cluck was here when the Cowboys Stadium came and he formed a relationship with [Cowboys owner] Mr. [Jerry] Jones to pursue that opportunity, much the same way that Mayor Williams did with the Rangers ownership and the Cordish Group,” he said. It also helped that the Arlington mayor was a civil engineer who worked more than 20 years ago on the development of Globe Life Park, the Rangers’ current ballpark. Arlington has a proven track record with both teams of being able to execute these types of deals. “We were coming from a position of strength as it relates to the long-term relationship with the franchise,” Yelverton said.
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 / 5 9
A ANATOMY OF A DEAL
6 0 / 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
FA L L 2 0 1 7
A ANATOMY OF A DEAL CONSTRUCTION CONTINUES ON PARK DISTRICT, AS SEEN FROM THE ROOFTOP OF SAINT PAUL PLACE IN DOWNTOWN DALLAS.
T H E
PARK
EFFECT
KLYDE WARREN PARK’S EXPANSE OF GREEN HAS BECOME THE EPICENTER OF NEW COMMERCIAL AND RESIDENTIAL DEVELOPMENT, BRIDGING THE GAP THAT ONCE SEPARATED UPTOWN, THE ARTS DISTRICT, AND DOWNTOWN BY KERRY CURRY
At just five years old, Klyde Warren Park gets plenty of credit for the transformation that has occurred around its edges — new commercial and residential development, rising rents and property values, and a growing fan base that flocks to its myriad free events. The park’s benefits are far-reaching: There’s the connectivity between downtown, Uptown, and the Arts District — a walkability that didn’t really exist in Dallas before the deck park was conceived and built. Klyde Warren’s green expanse of lawn and trees provides respite in a concrete jungle for nearby office and residential tenants.
PHOTO: MICHAEL SAMPLES
“I don’t think anybody remotely realized the impact the park would have,” said Phil Puckett, who makes his living leasing office space in Uptown and downtown Dallas for CBRE. “It literally has become the epicenter of downtown/Uptown.” One of the park’s biggest economic benefits has been its profound impact on commercial rental rates and property sales. Office rents skyrocketed in the first two years that park was open, rising between 30 percent and 60 percent, with the largest increases for those buildings immediately adjacent to the park, according to statistical data compiled by Puckett. “Klyde Warren Park is really where the office market has shifted to from downtown,” Puckett said. “No one knew the impact and how great it would be.” Today, office rental rates that were between $22 and $25 per square foot are about $40 per square foot, a 60 percent to 82 percent increase since opening day,
FA L L 2 0 1 7
he said. Puckett has long been compiling office lease data around the park. Looking at data from 2015, Puckett is able to show how triple net lease rates per square foot for 2000 McKinney and 2100 McKinney rose 56 percent and 64 percent, respectively, according to the Urban Land Institute. Adjacent property, which was selling for about $150 a foot before the park came online, has more than doubled since it opened. Last year, 2000 McKinney St., a 21-story building that fronts Klyde Warren, sold for a record price of $200 million or $500 per square foot. Nearby, 17Seventeen at 1717 McKinney sold at a similar per-square-foot price. The residential market near Klyde Warren is also booming. Back in the mid-1990s, the total property value of the area now known as
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 / 6 1
A ANATOMY OF A DEAL
Uptown was only about $500 million. Today, it has ballooned to about $5.1 billion, according to Uptown Dallas Inc. The residential population in Uptown also has risen significantly, up by more than 50 percent between 2010 and 2016. A second-quarter 2017 report by CBRE notes that the Uptown/ Oaklawn/Highland Park market now has 30,000 multifamily units with the highest rents in the region: $1.75 per square foot.
HOW THE PARK CAME TO BE. John Zogg, managing director of Crescent Real Estate Equities, recalls how Uptown was beginning to flourish in the early 2000s with growth in the Arts District, while downtown was struggling. “I was working on a lot of downtown initiatives with (Belo’s) Robert Decherd in what was called the ‘Inside the Loop’ committee to revitalize downtown,” Zogg said. He recalled how he and Crescent owner John Goff were hosting investors in the Trammell Crow Center one day when the Nasher was under construction and American Airlines Center was completed.
6 2 / 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
“They said, ‘You have great assets but what a shame they are so disconnected.’ After the meeting, John and I were looking down from the 42nd floor and wondering, ‘How do we solve that?’ Woodall Rodgers was the moat that disconnected everything.” From that off-the-cuff conversation came the idea of putting a park over the freeway, Zogg said. (See the Klyde Warren Park Timeline on Page 63.) Crescent hired architect James Burnett to do an initial site plan of what might be possible and hosted a party, inviting property owners and others they thought might be interested. Linda Owen, then president of The Real Estate Council, also was an instrumental cog in getting the park off the ground. TREC decided to provide $1.5 million in seed money to explore the feasibility of a deck park which got the project rolling. Jody Grant, then head of Texas Capital Bank, said he learned of The Real Estate Council’s decision and reached out to Zogg with an offer to help lead a private fundraising effort for the park. Grant would become an early donor, giving a $1 million personal commitment from himself and his wife, Sheila, and another $1 million from the bank, and would go on to lead the private fundraising efforts. Initial funding led to city, state, federal, and private funding, as well as the creation of the Woodall Rodgers Park Foundation with Zogg, Grant, and The Real Estate Council’s Owen as the founding members.
BECOMING A CATALYST. The 5.2-acre park has had a strong impact on the commercial real estate sector since its October 2012 debut, including four new adjacent projects: 1900 Pearl, which is expected to open soon; Park District, which is under construction; 2000 McKinney; and 1717 McKinney. Real estate experts say the higher rates that
FA L L 2 0 1 7
A ANATOMY OF A DEAL KLYDE WARREN PARK TIMELINE The concept for building over Woodall Rodgers Freeway was first considered in 1968 when Vincent Ponte, an urban planning consultant hired by the city of Dallas to advise on the freeway, advanced the idea. The idea resurfaced in 1996. That’s when Kevin Sloan, a Dallas-based urban planner and landscape architect, is believed to have suggested a park over the freeway. Sloan’s idea, called Dallas Esplanade, was embraced by Gail Thomas and Louise Cowan at the Dallas Institute of Humanities and shown to city leaders, including the group developing what is now the AT&T Performing Arts Center. Below is a timeline of events once the idea took off. 2002: John Zogg of Crescent Real Estate Equities holds informal meetings and rallies support in the business community. Crescent Realty funds an initial site plan by landscape architect James Burnett. (Around this time period, the “Inside the Loop” committee also raised the idea of a deck park but instead pursued other park sites.) 2004: The Real Estate Council, via an effort led by then TREC President Linda Owen, provided $1.5 million seed money to kick off funding of a feasibility study. 2005: Jody and Sheila Grant provide a $1 million private donation and a $1 million donation from Texas Capital Bank. PHOTO: KANONSKY / ISTOCK
“KLYDE WARREN PARK IS REALLY WHERE THE OFFICE MARKET HAS SHIFTED TO FROM DOWNTOWN. NO ONE KNEW THE IMPACT AND HOW GREAT IT WOULD BE.” — PHIL PUCKETT, CBRE
2005: Grant, Zogg, and Linda Owen form The Woodall Rodgers Park Foundation, the organization that led the project from design to completion and currently oversees the park’s operations on the city’s behalf.
2006: The city of Dallas allocates $20 million in bond funding to help build the park. The park also receives $20 million from the state, $17 million from the federal government, and $55 million in private donations. 2007: The city and foundation sign a formal
development-and-use agreement, setting out that the park will be owned by the city, while being privately managed and funded.
2009: Construction begins. FEB. 2012: Dallas billionaire Kelcy Warren donates an estimated $10 million to the park and names it for his then-9-year-old son, Klyde.
OCT. 27, 2012: Klyde Warren Park officially opens. landlords are able to command near the park have enabled development to occur despite rising construction and labor costs, which might have otherwise stymied such projects. Also nearby is Parkview at 1920 McKinney, a two-story, mixed-use, property, which was renamed last year to focus on its proximity to the park and RED Development's Union mixed-use project at Akard Street and Cedar Springs Road, which is scheduled to open next year. Construction recently began on HALL Art’s second phase,
FA L L 2 0 1 7
2014: The park wins the prestigious Urban Land
Institute Open Space Award and receives LEED Gold certification for its sustainable design and construction — two of multiple honors and awards received.
NOV. 7, 2017: A city bond election will take place, which includes partial funding for a private-public effort to expand the park. Sources: Klydewarrenpark.org, D Magazine, Dallas Morning News, John Zogg
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 / 6 3
A ANATOMY OF A DEAL RENDERING OF PARK DISTRICT
RENDERING: TRAMMELL CROW COMPANY
a 183-room boutique hotel, and 44 luxury high-rise condominiums. HALL Arts completed its first phase in 2015 with the opening of KPMG Plaza at HALL Arts and an adjacent half-acre park. Though the development is a block away from Klyde Warren Park, it is experiencing the benefits of being both in the Arts District and close to the park, said Kim Butler, director of leasing for HALL Group. “The Arts District has been there for much longer than the park, but the park has helped activate the district and brings more pedestrians to the Arts District,” making the area more desirable from a development standpoint, she said. “What it does most effectively is knit together Uptown and the Arts District such that it has benefited both districts in the
6 4 / 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
growth in property values,” Butler said. Lucy Burns, a partner with Billingsley Co., agreed, saying the park has had a positive impact on One Arts Plaza, 1722 Routh St., which opened in 2007. “The activity it’s created has given increased life and attention to the Arts District,” she said. “When people are coming down to the park, the probability that they might go to the DMA (Dallas Museum of Art) or the Nasher or one of these other places is a lot higher.”
STRONG DEMAND FOR PARKSIDE PROPERTY. New buildings directly on the park have had strong leasing demand, said Bret Bunnett, executive managing director at Cushman & Wakefield. “2000 McKinney and 1717 McKinney are 97 percent leased, and we expect that 1900 Pearl and Park District will be fully leased in the very near future,” he said. Park District, a partnership between Trammell Crow and MetLife, is the largest project underway directly adjacent to Klyde Warren. It consists of a 20-story, 500,000-square-foot office tower facing Pearl, and a 34-story apartment building facing Olive with about 21,000 square feet of retail. Completion on the office tower is expected in late 2017 and the residential component in early 2018. “The park is an incredible amenity to have on your front door,” said Scott
FA L L 2 0 1 7
A ANATOMY OF A DEAL
FA L L 2 0 1 7
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 / 6 5
Y AV E. INNE
E
AR
IV
PE
OL
L
ST
ST
.
ST ,
1900 MCKINNEY 1909 WOODALL RODGERS FWY
KL ST
YD
E
W
AR
R
EN
MUSEUM TOWER
THE NASHER SCULPTURE CENTER
.P A
UL HUNT OIL S T . COMPANY
EXISTING BUILDING
1900 PEARL
TRAMMELL CROW CENTER
DALLAS MUSEUM OF ART
UNDER CONSTRUCTION
feet and could eventually bring a new skyscraper that alters Dallas’s skyline. About a year ago, Hillwood held a “design charrette” with world-class architects to understand what might be possible. British architect Sir Norman Foster designed a circular high-rise of more than 70 stories to conceptualize what could be done at the site. Reese said that there are no plans at this time to build that kind of iconic, signature building, unless there’s a demand for it. But he believes such demand could exist at some future date. “We think it could be a significant building for the city but we’d only do something like that if we had a large tenant in hand that had that kind of vision,” Reese said. “Klyde Warren has now set the stage for what is expected in terms of quality office product in Uptown/downtown: great space, the connection to green space, the food, the activation, all of those things that Klyde Warren provides is the new benchmark.”
A POSSIBLE VISION FOR THE FUTURE OF KLYDE WARREN PARK BY THE BRITISH ARCHITECT SIR NORMAN FOSTER.
RENDERING: HARWOOD
PARKVIEW AT 1920 MCKINNEY
R A P
K
.
2000 MCKINNEY
D
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
PARK DISTRICT
OO
The park has produced a spark for downtown Dallas, spurring a variety of renovation projects beyond its edges such as the major redo underway at Fountain Place. “We see Klyde Warren as important for a number of reasons: one is the physical connectivity it brings, blending two areas of our urban core — the Arts District and Uptown,” said Kourtny Garrett, president and CEO of Downtown Dallas Inc. “As we think through our strategic planning processes … we are moving toward an ability to better connect downtown and all of our urban neighborhoods.” Klyde Warren Park’s draw of over 1 million people a year is creating a huge impact in the urban core, she said. “It opened when we were still working toward an awareness to help people understand all there is to do and see [downtown]. Klyde Warren reached a much wider circle of people to come experience the park and see all the other improvements happening,” Garrett said. “It continues to do that.” Real estate and development experts said the park has become a development epicenter of sorts and will continue to be one in the future. “These [properties near Klyde Warren Park] have become, probably, the most desirable properties in all of Dallas-Fort Worth, and one thing we were missing was a signature park,” HALL’s Butler said. “Having that, along with the Arts District, has matured Dallas as a city.” And the development isn’t over, although land is certainly more scarce for building. The Miyama family of Japan owns two properties adjacent to the park: a low-rise office building and a motor bank, both fronting the park at St. Paul. They haven’t yet disclosed their plans for the property. Ross Perot Jr.’s Hillwood also owns property at Field and Woodall and says it isn’t in any hurry to develop it. “The unification of Uptown and Downtown through Klyde Warren has made that beachfront property,” said Ken Reese, executive vice president of Hillwood Urban. “We see this as a gateway site for people coming into downtown.” The site allows for as much as 1.5 million square
FEDERAL RESERVE BANK OF DALLAS
RW
A SPARK FOR DOWNTOWN.
2100 MCKINNEY
HA
Krikorian, senior managing director and principal at Trammell Crow. Law firms, real estate companies, financial institutions, architectural firms, and others pursuing top-tier talent and the retention of professionals desire to be in highly compelling locations and well-amenitized buildings such as those being built adjacent to the park, and are among the industry sectors that have sought out space near the park.
PROPERTIES SURROUNDING KLYDE WARREN PARK
MCK
A ANATOMY OF A DEAL
FA L L 2 0 1 7
BIG THINGS
HAPPEN IN DALLAS
WHEN YOU PARTNER WITH US
The City of Dallas Office of Economic Development is here to partner with you on your project, big or small. When you’re ready to discuss your business or development needs, contact us: (214) 670-1685 DallasEcoDev.org
BUSINESS. SKILLS. IDEAS. NETWORKS. LIVING. CULTURE. Photography: Large Dallas skyline, Dallas Love Field Airport - Urban Fabric Photography; Winspear Opera House - DCVB FA L L 2 0 1 7
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 / 6 7
T TOOLBOX
LAS COLINAS PHOTOS: ALLIANCETEXAS
TOOLBOX:
LABOR MARKET SPOTLIGHT A talented and highly skilled workforce is a driving force behind North Texas’ booming commercial and residential real estate markets. In this section of the Dallas-Fort Worth Real Estate Review, we profile specific areas that have grown in conjunction with the influx of professionals who continue to relocate to the Dallas region. We also profile worker commuting preferences and highlight the proximity of employees’ homes to their places of work.
ROCKWALL/TERRELL/FORNEY
FA L L 2 0 1 7
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 / 6 9
T TOOLBOX
LABOR MARKET SPOTLIGHT: LAS COLINAS BY DAVE MOORE
What was once known as a sprawling ranch owned by city patriarch John Carpenter, has grown into a 12,000-acre planned development called Las Colinas, an office, residential, commercial and retail center that employs more than 100,000 workers and serves as home to roughly 31,000 people. The site – said to be one of the first master-planned developments in the United States – is home to 44 Fortune 500 companies, including Commercial Metals, ExxonMobil, Fluor, Kimberly-Clark, and Celanese. Top employers include Citi, Allstate Insurance, Pioneer Natural Resources Co. and Microsoft. The hospitality sector is also strongly represented, with the Four Seasons Resort and Club Dallas at Las Colinas and the Omni Mandalay Hotel at Las Colinas. Nearly 18 percent of all employees working in Las Colinas are in the accomodation, food services, and health care sectors. Even during the early stages of the development, the site’s proximity to Dallas Fort Worth International Airport and central location figured strongly into the success of the development. Roughly 14 percent of the workers are employed in the retail sector. Roughly three fourths of all employees commute 24 miles or less to work in Las Colinas; nearly two-thirds of the workers earn more than $3,333 per month. More than half have some college, an associate degree, or more education. In the center of it all is Lake Carolyn, a 125-acre lake that connects the development’s hotels, apartments and corporate offices and retail establishments. “We wanted to develop the land with its unique features in such a manner that the environment would be enhanced and preserved,” the late Ben Carpenter, son of John Carpenter, told the Dallas Morning News in 1973. “We wanted to make it a place that our grandchildren would enjoy.”
INDUSTRY SECTORS BY PERCENTAGE OF EMPLOYEES Accomodation & Food Services
10%
Information
9%
Health Care & Social Assistance
8%
Finance & Insurance
7%
Construction
6%
Real Estate, Rental & Leasing
6% Manufacturing
Administrative & Support & Waste Management & Remediation Services
10%
4%
Wholesale Trade
Professional, Scientific & Tech Services
4%
Retail Trade
13%
Other Services
14%
(except Public Administration)
4%
*Includes Administrative & Support & Waste Management & Remediation Services; Wholesale Trade; Other Services (except Public Administration); Mining; Educational Services; Transportation & Warehousing; Public Administration; Arts, Entertainment & Recreation; Management of Companies & Enterprises; Utilities; Unclassified Establishments; Agriculture, Forestry, Fishing & Hunting Source: ESRI Total Residential Population forecasts for 2016
DISTANCE AND DIRECTION OF WORKER COMMUTE N NW
W
15000 25000
NE
E
5000
SE
SW S DISTANCE TO JOB Less than 10 miles 10 to 24 miles 25 to 50 miles Greater than 50 miles
% OF WORKERS 22.2% 50.1% 8.7% 18.9%
The U.S. Census Bureau pairs home/work census blocks to describe geographic patterns related to the workforce. Mapping commuter flows, for example, can help employers determine where potential workers live, as well as how far they might be willing to travel for work. Radar images dynamically communicate several important aspects about worker commute patterns. The radar indicates primary and secondary cardinal directions from which a worker travels to a job, and the distance traveled as determined by the color of each pie piece. The size of each pie piece indicates the volume of workers who commute from that direction and distance as indicated by the dashed and numbered concentric circles. Source: U.S. Census Bureau, Longitudinal Employer-Household Dynamics
ESTIMATED TOTAL JOBS IN LAS COLINAS: 114,863 7 0 / 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
FA L L 2 0 1 7
15 19
T TOOLBOX
26 16
3 21 23 9
37 28 6
1 35
14
4
7 11
22
30
8 32
31 36
5
20 39
27
10
29 34
17
38 33 2
12
25
18
24 1340
WORKER CHARACTERISTICS AGE
EDUCATIONAL ATTAINMENT
Age 29 or younger. . . . . . . . . . . . . . . 19.2% Age 30 to 54 . . . . . . . . . . . . . . . . . . . . 64.4% Age 55 or older . . . . . . . . . . . . . . . . . . 16.4%
Less than high school. . . . . . . . . . . . . . . . 8.9% High school or equivalent, no college. . . . . . . . . . . . . . 16.7% Some college or Associate degree . . . . . . . . . . . . . . . . . . 24.5% Bachelor’s degree or advanced degree . . . . . . . . . . . . . . . . . . 30.7% Data not available
EARNINGS $1,250 per month or less . . . . . 10.7% $1,251 to $3,333 per month . . . . 23.7% More than $3,333 per month . . . 65.6%
(workers aged 29 or younger) . . . . . . . . .
19.2%
INDUSTRY SECTORS BY PERCENTAGE OF ALL BUSINESSES Accommodation & Food Services
8%
Real Estate, Rental & Leasing
8%
Retail Trade
7%
Health Care & Social Assistance
Other Services (except Public Administration)
9%
6%
Information
6%
Administrative & Support & Waste Management & Remediation Services
Finance & Insurance
9%
Unclassified Establishments
11%
FA L L 2 0 1 7
5% Professional, Scientific & Tech Services
15%
Construction
5%
*Includes Administrative & Support & Waste Management & Remediation Services; Construction; Manufacturing; Wholesale Trade; Educational Services; Transportation & Warehousing; Arts, Entertainment & Recreation; Mining; Public Administration; Management of Companies & Enterprises; Utilities; Agriculture, Forestry, Fishing & Hunting
Source: ESRI Total Residential Population forecasts for 2016
SAMPLE OF MAJOR EMPLOYERS IN LAS COLINAS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40
Citi Pioneer Natural Resources Co Microsoft Corp Neiman Marcus Direct Nokia HMS Signet Jewelers North Lake College Goldman Sachs & Co Verizon Wireless CVS Caremark Operations Ctr Four Seasons Resort & Club Vizient Inc Ace Cash Express Inc Nissan North America Michaels Co Inc Liberty Mutual Middle Market Cigniti Technologies Aviall Cap Digisoft Solutions Miraca Life Sciences Inc Boy Scouts Of America Commercial Metals Co JPI Leasing Lehigh Hanson Inc Targetbase Marketing Las Colinas Medical Ctr H D Vest Investment Securities Kimberly-Clark Lq Management LLC Fluor Enterprises Inc Bioworld Merchandising Celanese Corp Darling Ingredients Inc Exxon Mobil Corp Fluor Corp HD Vest Financial Svc Inc Health Smart Network Solutions Mentor Texas Provista
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 / 7 1
T TOOLBOX
LABOR MARKET SPOTLIGHT: ROCKWALL / TERRELL / FORNEY BY DAVE MOORE
Nearly 100 years ago, a teenager created a stir when he came across what appeared to be an ancient, hand-hewn “rock wall,” raising questions of whether a prehistoric civilization existed thousands of years before Rockwall County was settled. Over the past century, the Rockwall-TerrellForney area has evolved from agricultural production into a diverse economy, attracting defense, health care, technology, numerous manufacturing industries, and a wide range of residential and retail development. The concentration of homeowners and renters has made the Forney Independent School District this area’s top employer, followed by Texas Health Presbyterian Hospital. Another notable workplace in this area includes international defense and commercial communications, electronics and avionics contractor L-3 Technologies. Other top employers include corrugated package manufacturer Smurfit Kappa and Texas Star Express, which serves as a major southwestern trucking hub for Greensboro, N.C.-based Epes Transport System. Aside from serving as a base for L-3 and ColMet Engineered Finishing Solutions, the 400-acre Rockwall Technology Park also serves as a location to a $75 million Bimbo Bakeries facility. Bimbo USA owns several brands including Mrs. Baird’s, Oroweat, Sara Lee and Tia Rosa. Nearby, 22,000-acre Lake Ray Hubbard serves a dual purpose: as a recreational water body, and as a water reservoir for North Texans. The lake and its 111 miles of shoreline have been a magnet for retail, commercial, recreational and residential development. The Harbor District, started by Rockwall City Council in 2003, was created to ensure that the public could access the shores of Lake Ray Hubbard. Since then, the development has grown to include a Hilton Hotel, a Cinemark Movie Theater, a marina and more than a dozen shops and restaurants. Roughly 20 percent of this area’s workforce is in the retail sector. More than a third of all workers commute less than 10 miles to their jobs; the vast majority of those commuters travel eastward. Two thirds have post-high-school educations. Whatever came of the rock-wall mystery? “The verdict of the scientists was that the walls are of natural origin,” the Dallas Morning News deadpanned in 1925. “Volcanic sands thrust up through strata of clay formations, and solidified into sandrock.”
INDUSTRY SECTORS BY PERCENTAGE OF EMPLOYEES Manufacturing
Other Services
7%
(except Public Administration)
7%
Educational Services
9%
Construction
6%
HealthCare & Social Assistance
Wholesale Trade
13%
5%
Accommodation & Food Services
Public Administration
4%
13%
Finance & Insurance
Retail Trade
3%
20%
Professional, Scientific & Tech Services Real Estate, Rental & Leasing
3%
3%
*Includes Adminstrative & Support & Waste Management & Redemption Services; Real Estate, Rental & Leasing; Finance & Insurance; Information; Arts, Entertainment & Recreation; Agriculture, Forestry, Fishing & Hunting; Utilities; Unclassified Establishment; Mining; Managment of Companies & Enterprises. Source: ESRI Total Residential Population forecasts for 2016
DISTANCE AND DIRECTION OF WORKER COMMUTE N NW
W
5400
NE
E
1800
9000
SE
SW S DISTANCE TO JOB Less than 10 miles 10 to 24 miles 25 to 50 miles Greater than 50 miles
% OF WORKERS 35.4% 29.4% 16.7% 18.5%
The U.S. Census Bureau pairs home/ work census blocks to describe geographic patterns related to the workforce. Mapping commuter flows, for example, can help employers determine where potential workers live, as well as how far they might be willing to travel for work. Radar images dynamically communicate several important aspects about worker commute patterns. The radar indicates primary and secondary cardinal directions from which a worker travels to a job, and the distance traveled as determined by the color of each pie piece. The size of each pie piece indicates the volume of workers who commute from that direction and distance as indicated by the dashed and numbered concentric circles. Source: U.S. Census Bureau, Longitudinal Employer-Household Dynamics (data based on 2014 employment estimates)
ESTIMATED TOTAL JOBS IN ROCKWALL / TERRELL / FORNEY: 35,939 7 2 / 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
FA L L 2 0 1 7
SAMPLE OF MAJOR EMPLOYERS IN ROCKWALL / TERRELL 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34
T TOOLBOX
35 Multi-Metal & Manufacturing Co 36 TransAm Trucking 37 EZ-Flo International 38 Falcon Fine Wire 39 Precision Sheet Metal Products 40 Graham Packaging 41 Elements International 42 Terrell State Hospital 43 Madix, Inc. 44 Old Castle Building Envelope 45 AutoZone Distribution Center 46 Walmart Distribution 47 American National Bank 48 Nucor Co. 49 Exel/Goodyear 50 Fine Line Metal Fabricators 51 Country View Manor 52 Windsor Nursing Home 53 Maines Paper & Food Service, Inc 54 R&R Design 55 Renfro Industries, Inc. 56 Lakes Regional MHMR Center 57 Conecsus 58 Preferred Powder Coating 59 Oncor 60 Unified Power 61 Veka Inc. 62 Family Medical Center at Terrell 63 Carlisle Syn Tec/ Hunter Panels 64 Carlisle Coatings & Waterproofing 65 The Terrell Tribune 66 The Van Tone Co.
Walmart Smurfit Kappa Intex Electric Steve Silver Company Kroger Marketplace Lowe's Home Improvement ABOX Packaging Ridgecrest Healthcare & Rehabilitation Center Brookshire's Eric L. Davis Engineering Three Forks Senior Living Emergicon Baylor Scott & White Emergency Center Dal-Bac Aircraft Ducting Repair Inc. Luminant Care United Oncor Electric Delivery Texas Lamp The Sophia Design Group Forney Wellness Classic Industries Texas Health Presbyterian Hospital L-3 Technologies Texas Star Express/ Epes Transport Hilton Dallas/Rockwall Lakefront Bimbo Bakeries Channell Commercial Pratt Industries Pegasus Foods SPM (Special Products & Mfg.) Whitmore Manufacturing Col-Met Engineered Finishing Solutions SPR Packaging
32
26
34 40 28 39 41 29 35 30 24 27 33 38 31 36 37 25
23
ROCKWALL COUNTY KAUFMAN COUNTY
16
INDUSTRY SECTORS BY PERCENTAGE OF ALL BUSINESSES Professional, Scientific & Tech Services Health Care & Social Assistance
9%
Finance & Insurance
7%
Real Estate, Rental & Leasing
(except Public Administration)*
14%
Retail Trade
19%
EARNINGS
EDUCATIONAL ATTAINMENT
Wholesale Trade
4%
Public Administration
3%
*Includes Manufacturing; Wholesale Trade; Public Administration; Administrative & Support & Waste Management & Remediation Services; Educational Services; Transportation & Warehousing; Information; Arts, Entertainment & Recreation; Agriculture, Forestry, Fishing & Hunting; Mining; Utilities; Management of Companies & Enterprises. Source: ESRI Total Residential Population forecasts for 2016
FA L L 2 0 1 7
Age 29 or younger. . . . . . . . . . . . . . . 26.2% Age 30 to 54 . . . . . . . . . . . . . . . . . . . . 53.4% Age 55 or older . . . . . . . . . . . . . . . . . . 20.3%
Manufacturing
4%
Other Services
WORKER CHARACTERISTICS
Unclassified Establishments
5%
10%
45
$1,250 per month or less . . . . . 28.8% $1,251 to $3,333 per month . . . . 37.7% More than $3,333 per month . . . 33.5%
6% Construction
61 66 59 65 47 42 48 62 50 60 58 46 54 64 57 56 43 55 49 63 44 52
AGE
Accommodation & Food Services
9%
10%
51
6 9 20 19 8 4 5 10 21 18 15 1 17 13 2 22 11 14 7 3
Less than high school. . . . . . . . . . . 11.9% High school or equivalent, no college. . . . . . . . . . . 20.6% Some college or Associate degree . . . . . . . . . . . . . . . 24.3% Bachelor’s degree or advanced degree . . . . . . . . . . . . . . . .17.0% Data not available (workers aged 29 or younger) . . . . . .
26.2%
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 / 7 3
53
SPECIAL ADVERTISING SECTION
ECONOMIC DEVELOPMENT DIRECTORY Looking for a new place for your company to call home? Consider this the start to your search. Dallas-Fort Worth is a great place to do business, and its vibrant and thriving communities offer myriad resources to help companies grow. With its high quality of life, strong state and regional economies, low cost of living, skilled labor force, and lack of corporate and personal income taxes, companies in DFW are well positioned to flourish in a market that ranks among the top three U.S. metropolitan areas for business expansions, relocations, and employment growth. The hardest part of your relocation search might just be choosing between DFW’s various communities, as they each provide unique qualities and impressive benefits. This guide to area economic development agencies at some of the best and most rapidly growing cities can help you get started.
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
74 / 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
Allen is a vibrant community of creative and talented people driven by achievement. Allen’s success is no accident—it is a testament to the community spirit of amazing people who want a better place for their families. A probusiness environment and a superior quality of life come together to empower Allen’s residents and businesses to achieve higher levels of success. Be Part of Something Bigger– Allen’s community spirit, highperforming schools, family friendly recreation, and vibrant economy continue to attract business and residents to our city. We can rattle off the standard stats and accolades, but we do things differently. And that is what makes us great–we are a vibrant and active community that connects our businesses, workers, and residents together to open the door for new opportunities. ALLEN ECONOMIC DEVELOPMENT CORPORATION 700 Central Expy S No. 210, Allen, Texas 75013 allenedc.com
Perfectly situated in the heart of North Texas and only 8 miles from Dallas/ Fort Worth International Airport, Arlington enjoys unparalleled access to the Metroplex. Its convenient location, combined with a strong economy, businessfriendly environment, and a skilled, diverse workforce continues to attract high-profile investments to the city. Arlington has an extensive track record of recruiting globally recognized corporations and developing largescale projects. Arlington is home to the only General Motors assembly plant that builds GM’s award-winning, full-size SUVs. It is also home to the University of Texas at Arlington, Texas Rangers’ Globe Life Park, Six Flags Over Texas, and the Dallas Cowboys’ $1.2 billion AT&T Stadium. Arlington is increasingly becoming known as a hub for engineering, advanced manufacturing, technology and medical sciences. This emerging innovation center is fueled in part by Arlington’s skilled, educated workforce. BRUCE PAYNE, Economic Development Manager CITY OF ARLINGTON ECONOMIC DEVELOPMENT 101 West Abram St. PO Box 90231 MS 01-0300, Arlington, Texas 76004 bruce.payne@ arlingtontx.gov arlingtontx.gov
FA L L 2 0 1 7
SPECIAL ADVERTISING SECTION
Opportunities grow naturally in Cedar Hill, with its vibrant businesses, natural beauty, and a familyfriendly quality of life. With a location just 20 minutes from downtown Dallas, 30 minutes from Dallas Fort Worth International Airport, and 40 minutes from downtown Fort Worth, Cedar Hill offers outstanding amenities for business growth and relocation. ALLISON J.H. THOMPSON, Director CEDAR HILL ECONOMIC DEVELOPMENT 285 Uptown Blvd., Bldg. 100 Cedar Hill, TX 75104 972.291.5132 ext. 3 allisonthompson@ cedarhilltx.com cedarhilledc.com
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 new 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, Texas 75056-1133 972.624.3127 edc@thecolonytx.org thecolonyedc.org
FA L L 2 0 1 7
The City of Dallas Office of Economic Development is a fullservice shop that offers business development and area redevelopment programs, small business assistance, and innovative programs such as the City of Dallas Regional Center and New Market Tax Credits. We can successfully usher a project from beginning to end. The Office of Economic Development offers a range of programs and services to assist developers, investors, and businesses looking to expand or relocate, and small businesses looking to grow. With innovative programs, a supportive business climate and a city full of opportunities, we are ready to make your project a success. HAMMOND PEROT, Assistant Director, Business Services CITY OF DALLAS OFFICE OF ECONOMIC DEVELOPMENT 1500 Marilla St. Dallas, TX 75201 214.670.1685 joseph.perot@ dallascityhall.com dallas-ecodev.org
Located 15 minutes south of downtown Dallas. DeSoto’s competitive advantage lies in a great business park location, excellent transportation access, low-cost building-ready land with an existing space inventory, a skilled workforce and development plans that ensure our partners achieve maximum ROI. The Eagle Business and Industrial Park offers more than 400 acres of land with superb access to Interstate 35 E, Interstate 20, and Interstate 45 via Centre Park Boulevard and Polk Street. For executive air travel, Dallas Executive Airport is less than a 10 minute drive away. In addition, DeSoto offers a wide variety of competitive incentives to help your business grow and prosper. Whether your company needs a new commercial office building on I-35, a manufacturing facility on a hill overlooking downtown Dallas, a fulfillment warehouse, or a service-oriented facility, DeSoto is the place to build your business, raise your kids, enjoy life and retire in style.
QUICK FACTS : ■ 20 minute primary trade area responsible for 51,112 businesses and 1,211,467 employees ■ Primary trade area purchasing power is $83,443,084,227 LOCATION ■ 12.8 miles to DFW International Airport ■ 11 .5 miles to Love Field Airport ■ 13.5 miles to Downtown Dallas ■ 22 miles to Frisco ■ 35 miles to Fort Worth Bordered by 1-35, 635, and the Dallas North Tollway, Farmers Branch is perfectly located with easy access to wherever you need to go. And Farmers Branch Station provides direct access to the DART Light Rail for you and your employees. ALLISON COOK, Director of Economic Development and Tourism FARMERS BRANCH ECONOMIC DEVELOPMENT DEPARTMENT 13000 William Dodson Parkway Farmers Branch, TX 75234 972.919.2509 farmersbranchtx.gov
DESOTO ECONOMIC DEVELOPMENT CORPORATION 211 E. Pleasant Run Road DeSoto, Texas 75115 972.230.9611 dedc.org
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 / 7 5
SPECIAL ADVERTISING SECTION
ECONOMIC DEVELOPMENT DIRECTORY Conveniently located 21 miles east of Dallas, Forney provides businesses and residents access to big city amenities in a peaceful environment. Complete with U.S. Highway 80 and Interstate 20, Forney offers a coast-to-coast transportation network and plenty of room to grow, including 800+ acres of available light industrial land. Forney’s primary trade area population of 45,000 offers businesses a builtin workforce of white and blue collar employees, along with an average household income of over $97,000. In addition, our quality of life is hard to beat, complete with state recognized public schools, a 170-acre park, community festivals and a unique historic downtown. When it comes to opportunity, Forney knows no boundaries. That’s why we’re called the “City Without Limits.” WARREN KETTEMAN,
Executive Director
FORNEY ECONOMIC DEVELOPMENT CORPORATION
101 E. Main St. P.O. Box 826 Forney, Texas 75126 (972) 564-5808 wketteman@ cityofforney.org
www.forneytexasedc.org
Frisco is DFW’s boomtown. It’s hard to believe the area was a stretch of farmland a decade ago; now, it’s exploding with urban growth, and its population and skyline continue to reach new heights. The city is located across Collin and Denton counties, and boasts an easy 25-mile commute to downtown Dallas. Frisco’s residents have pride, and they’ve created a close-knit community atmosphere. They gather for Christmas parades on Main Street, and catch games at Dr Pepper Ballpark. Locals love Stonebriar Centre and Frisco Square, both filled with upscale stores, tiny restaurants, and street musicians. Kids adore Frisco’s abundance of playgrounds, such as the special-needs-friendly Hope Park, and with some of the best schools in North Texas, Frisco is a family’s dream. Luxe mixed-use communities, a pedestrian-friendly atmosphere, and the laid-back bar scene draw young professionals, too. Frisco has unbounded potential, and today is just the beginning. JAMES L. GANDY, CECD, CCIM, President FRISCO ECONOMIC DEVELOPMENT CORPORATION 6801 Gaylord Parkway, Suite 400 Frisco, Texas 75034 972-292-5150 / JGandy@ FriscoEDC.com www.friscoedc.com
7 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
The McKinney Economic Development Corporation (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. DARRELL AUTERSON, President and CEO MCKINNEY ECONOMIC DEVELOPMENT CORPORATION / CITY OF MCKINNEY 5900 S. Lake Forest Dr., Ste. 110 McKinney, Texas 75070 info@mckinneyedc.com 972.547.7651 mckinneyedc.com
Centrally located between DFW 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 3 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. Late 2015 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.
Rockwall Economic Development Corporation assists new and existing companies, both large and small, in the development, modernization, and expansion of business in a booming global economy. We are dedicated to your company’s growth through incentive programs, financial assistance, comprehensive sites, and resource collaboration. While collaborating with city leaders, we have secured the necessary infrastructure, services, and high-tech amenities to maintain thriving, profitable businesses. Rockwall has big-city conveniences yet maintains a small-town atmosphere. Rockwall offers quality of place and peace of mind. SHERI FRANZA, President and CEO ROCKWALL ECONOMIC DEVELOPMENT CORPORATION 2610 Observation Trail Rockwall, Texas 75032 972.772.0025 sfranza@rockwalledc.com rockwalledc.com
CRAIG HULSE, Director of Economic Development 7301 NE Loop 820, North Richland Hills, Texas 76180 chulse@nrhtx.com / 817427-6090 www.nrhed.com
FA L L 2 0 1 7
C COMMUNITY
Greg Kraus, Chairman Ran Holman, Vice Chairman
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.
CHAMPION’S CIRCLE
PRESIDENT’S CIRCLE
BENEFACTOR’S CIRCLE
Bank of Texas
42 Real Estate, LLC
Adolfson & Peterson Construction
KeyBank
Compatriot Capital
BB&T
AECOM
Kimley-Horn and Associates, Inc
Granite Properties
BBVA Compass/BBVA Foundation
American National Bank of Texas
Locke Lord LLP
NexBank
Chief Partners LP
Arch Con Corporation
Matthews Southwest
Comerica Bank
Bank of the Ozarks
Mill Creek Residential Trust LLC
Corgan Associates, Inc
BBG
Mohr Partners
Cushman & Wakefield of Texas, Inc.
Beck Group
OMNIPLAN, Inc.
Bank of America Merrill Lynch
DPR Construction, Inc.
Berkadia Commercial Mortgage
ORIX Real Estate Americas
Billingsley Company
PegasusAblon Properties
CBRE
Eastdil Secured
Bradford Companies
Frost Bank
Capital One Bank
PGIM Real Estate Finance
Crow Holdings Capital Partners, L.L.C.
Capright, LLC
Real Estate Deal Sheet
Deloitte
Regions Bank
Haynes and Boone, LLP
Chicago Title Company/Fidelity National Financial (FNF)
Invesco Real Estate
Colliers International
Schwob Building Company
Jackson-Shaw
Communities Foundation of Texas
Stream Realty Partners
JP Morgan
Corinth Properties
The Retail Connection
KDC
Cortland Partners
TIER REIT, Inc.
KPMG
Davidson & Bogel Real Estate
Todd Interests
LegacyTexas
EMJ Corporation
Trammell Crow Residential
Munsch Hardt Kopf & Harr P.C.
Gaedeke Group LLC
Transwestern
NorthMarq Capital
Gardere Wynne Sewell LLP
Walker & Dunlop
PM Realty Group
Grant Thornton
Wells Fargo Bank
Spirit Realty Capital
HALL Group
Westmount Realty Capital, LLC
Thackeray Partners
Holt Lunsford Commercial
Trammell Crow Company
Hunt Mortgage Group
PATRON’S CIRCLE
Invitation Homes
Fauxcades
Jones Day
Hilton Anatole Hotel
JPI
Parmenter Realty Partners
CHAIRMAN’S CIRCLE Balfour Beatty Construction
EY HFF Jackson Walker L.L.P. JLL Republic Title of Texas, Inc. Stantec Stewart Title StreetLights Residential The Howard Hughes Corporation Winstead PC
GFF
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. FA L L 2 0 1 7
Kane Russell Coleman & Logan PC
Sarofim Realty Advisors
Learn more at recouncil.com or by calling 214-692-3600.
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 / 7 7
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.
1820 Productions
Benchmark Title
Collective Residential
Exxon Mobil Corporation
7-Eleven, Inc.
BG Staffing, Inc.
Colliers International
EY
Acadian Ambulance Service of Texas
Big 12 Conference
Comerica Bank
Fairmont Dallas
Billingsley Company
Commemorative Air Force
FASTSIGNS - Northeast Dallas
BKD LLP
Commerce Bank
FASTSIGNS | West Mockingbird
bkm Total Office of Texas
Commit! Partnership
FedEx Office
Addison Law
Blue Cross and Blue Shield of Texas
Consolidated Communications
Fidelity Investments
AECOM
Boeing Global Services
Conway MacKenzie
Fluor Corporation Headquarters
Aegis Therapies
BOKA Powell
Aerotek
Boston Consulting Group
Akin Gump Strauss Hauer & Feld LLP
Bottle Rocket
Accenture Acme Brick Company Active Network
AlixPartners LLP Altair Global Amegy Bank of Texas American Airlines, Inc. American Heart Association, Dallas Division Andrews Distributing Company of North Texas Andrews Kurth LLP Armanino LLP Armstrong Relocation At Home AT&T Atmos Energy Corporation
Bracewell LLP Brandt Companies
G6 Hospitality LLC
Dallas Cowboys Football Club Ltd.
Brinker International, Inc.
Dallas Mavericks
Business Jet Center
Dallas Morning News
Business Wise, Inc.
Dallas Stars Hockey Club
C.C. Young
Dallas Wings
Capital One Bank
Dallas Women’s Foundation
Carrington, Coleman, Sloman & Blumenthal, L.L.P.
Dal-Tile Corporation
CBRE Group, Inc.
Gensler George W Bush Foundation Goldman Sachs & Co, LLC Granite Properties Grant Thornton LLP Greenberg Traurig, LLP Gruber Johansen Hail Shank
Gupta & Associates Inc.
DHD Films
Halff Associates, Inc.
DLR Group Staff elbach
Hall Group
Door
Haynes and Boone
Dr Pepper Snapple Group
Hazel’s Hot Shot, Inc.
DSI Telecom
HDR Inc.
Choctaw Nation of Oklahoma
Dunavant Distribution Group
H-E-B/Central Market
CHRISTUS Health
Ebby Halliday Real Estate, Inc.
Heritage Health Solutions Inc.
Cindy Lu
Edelman Public Relations Worldwide
Hill & Wilkinson General Contractors
ESRP
Hill + Knowlton Strategies
Estrada Hinojosa & Company, Inc.
Hillwood Development Company, LLC
Etihad Airways
Hilti North America
Ewing Automotive Group
Hilton Anatole
Baker & McKenzie, LLP
Chickasaw Nation
Baker Botts L.L.P.
Children’s Health System of Texas
Bell Nunnally & Martin LLP
Gardere Wynne Sewell LLP
DFW International Airport
Chase
BDO USA LLP
Dean Foods Company
Gaedeke Group
Gulfstream Aerospace Corporation
Bain & Company, Inc.
BBVA Compass
DataMob
Furniture Marketing Group
Deloitte LLP
Charter Communications
BB&T
Frito-Lay North America
Briggs Freeman Sotheby’s International Realty
Axxess Technology Solutions
Baylor Scott & White Health
Crowe Horwath LLP
Fox Sports Southwest
Brierley+Partners
Champion Partners
Barnes & Thornburg
CP&Y, Inc.
Foster Blair Consulting, LLC
Dallas County Community College District
AustinCSI
Bank of Texas
Corrigan Investments, Inc.
Forest City Texas Inc
Frost Bank
Austin Industries
Bank of America
Corgan
Dallas Baptist University
Brasfield & Gorrie
CENTURY 21 Judge Fite Company
Balfour Beatty
Copart
Citi City Electric Supply Civitas Capital Group CliftonLarsonAllen LLP ClubCorp USA, Inc. Coca-Cola Refreshments
7 8 / 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
FA L L 2 0 1 7
Hilton Garden Inn Downtown Dallas
Luminant
Regions Bank
The Beck Group
Hines Interests Limited Partnership
Mary Kay Inc.
Reliant, an NRG Company
The Freeman Company
McCarthy Building Companies, Inc.
Rent-A-Center
The Kroger Co.
RMG Networks Rosewood Property Co.
The MetroTex Association of Realtors
RSM US LLP
Thompson & Knight LLP
Saulsbury Industries
Thomson Reuters
SCHMIDT & STACY Consulting Engineers, Inc.
Tom Thumb Food & Pharmacy
HKS Inc. HMS HNTB Corporation
McKinsey & Company, Inc. McLarty Capital Partners Methodist Health System
Hoar Program Management, LLC
MHBT, a Marsh & McLennan Agency LLC company
Holland & Knight LLP
Microsoft Corporation
HollyFrontier Corporation Holmes Murphy & Associates
Miller, Egan, Molter & Nelson LLP
HOLT CAT
Milliman
Sewell Automotive Companies
Hotels.com
MINT Dentistry
Sheraton Dallas
HPI Real Estate Services & Investments/Ross Tower
Mission Foods USA
Showcall
Moss Adams LLP
Sidley Austin LLP
Huawei Technologies
Munck Wilson Mandala, LLP
Skanska USA Building
HUB International Insurance Services
NCH Corporation
Slalom Consulting
NEC Corporation of America
Southern Glazer’s Wine and Spirits
Hunt Consolidated, Inc. IBC Bank
Neiman Marcus
IBM Corporation
New York Life Regional Headquarters
Imaginuity Interactive Inc
Newmark Grubb Knight Frank
Infomart Data Centers
Northwood University
Innovate + Educate
Norton Rose Fulbright
Integer Holdings Corporation
Novataris Inc.
Interceramic
NTT DATA Inc.
International Leadership of Texas
Omni Dallas Hotel
Invitation Homes
On the Road Lending
Jackson Walker LLP Jacobs Engineering Group Inc. Jamba Juice
Omnitracs, LLC ONCOR Origin Bank ORIX USA Corporation
Schneider Electric
Topgolf Torchmark Corporation
SCORE Dallas
Town of Addison Toyota Motor North America Trane Commercial Systems Transwestern Trinity Groves, LLC Trinity Industries, Inc. Turner Construction Company TXU Energy
Southern Methodist University
UMB Bank N. A.
Southwest Office Systems, Inc.
UnitedHealthcare
Spectrum Enterprise
Universal Mind University of North Texas at Dallas
Spirit Realty Capital Squire Patton Boggs (US) LLP Staff One, Inc. Stantec
University of North Texas System University of Texas at Arlington
State Farm Insurance Companies
University of Texas at Dallas
Stewart Title
UT Southwestern Medical Center
Stifel Strasburger & Price, LLP Strategic Staffing Solutions
Verizon Wireless Regional Corporate Office
JE Dunn Construction
Oscar Health Insurance
JLL
Pacific Builders Inc.
Jones Day KDC Real Estate Development Investments
SunTrust Robinson Humphrey Inc
Vinson & Elkins LLP
Parker University Parkland Foundation
Susan G Komen
Walgreens Company
Keller Logistics Group
Parkland Health and Hospital System
TDIndustries
Weaver
Ketchum Public Relations
Paul Quinn College
TDJ Enterprises
Weber Shandwick Southwest
Kilpatrick Townsend & Stockton LLP
PDS Tech, Inc.
Teladoc
Weil, Gotshal & Manges LLP
Tenet Healthcare Corporation
Weitzman
KPMG LLP LegacyTexas Bank Life School Linebarger Goggan Blair & Sampson, LLP Littler Mendelson, P.C. Live Nation Locke Lord LLP Lockheed Martin Lockwood, Andrews & Newnam, Inc. FA L L 2 0 1 7
Penske Motor Group Perkins+Will Pierpont Communication PlainsCapital Bank PNC
Summit
Texans Can Academies
Village Green Holdings, LLC Vistra Energy
Wells Fargo
Texas A&M University
WFAA-TV
Texas Capital Bank
Whitebox Real Estate
Texas Central Partners Texas Health Resources
Whiting-Turner Contracting Company
Texas Instruments Incorporated
Whitley Penn
PSA Constructors, Inc.
Texas Scottish Rite Hospital for Children
Women’s Foodservice Forum
PwC
Texas Star Alliance
WorldLink
Real Eyez Beauty Group
Texas Woman’s University
WorldVentures Holdings
Premier Truck Group Prime Rail Interests LLC Primoris Services Corporation
Winstead PC
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 / 7 9
L LEADERSHIP
KATY SLADE
BUILDING COMMUNTIES AND GIVING BACK Katy Slade has been involved with some of the area’s most high-profile mixed-use projects, but she still finds time to help those in need
community and the way people operate there.” The tower has 222 upscale apartments and a rooftop buzzing with activities, including an infinity pool, a dog park, grills, and cabanas.
BY NICHOLAS SAKELARIS
WHAT’S NEXT
From McKinney Avenue in Uptown Dallas to Lake Carolyn in Las Colinas, some of the region’s most upscale mixed-use projects all have one common denominator: Katy Slade. The area vice president of investments for Gables Residential, Slade, has a background in urban planning, and it shows in the apartment communities she develops. They’re walkable, vibrant, and have access to mass transit. Most famously, she got Whole Foods to anchor the Gables McKinney Ave. project at 2500 McKinney Ave., bringing much-needed grocery space to that fast-growing area. “Whole Foods is continuing to attract a high number of pedestrian customers,” Slade said. “It’s really changed the
Slade is wrapping up construction on the Gables Water Street project on O’Connor Boulevard in Las Colinas. The first residents are moving into the 316-unit apartment complex this month and another 60,000 square feet of retail and restaurant space will open in the first half of 2018. Several restaurants will have patios overlooking Lake Carolyn — something few developments in North Texas can offer. Confirmed restaurants include The Londoner Pub, Grabbagreen, Go Fish Poke, State Fare Kitchen & Bar, Cafe Herrera, Olivella’s Pizzeria, Main Street Bistro & Bakery, El Famoso, and Cork & Pig Harbor. Retail shops include Castle Nails, GQ Tailor, and Waxing the City.
“They’re very unique, and there’s such a range of them that it will be a great offering for the growing residential population in the area there,” Slade said. The center is 70 percent leased. With that project wrapping up, Slade has turned her attention to the Gables Turtle Creek project in Uptown Dallas. The 232unit complex built in the 1990s will be redeveloped into high-rise apartment towers with up to 750 units, Slade said. The existing buildings will be torn down in phases at the intersection of Cole and Lemmon avenues. Zoning is approved for the three new residential towers.
EVOLUTION OF RENTING The new wave of apartments have highend finish outs with wood floors, quartz countertops, built-in speakers, and amenities aplenty. Today’s apartment complexes have swimming pools that resemble resorts with cabanas, barbecue grills, and flat-screen televisions — perfect for entertaining. The clubhouses are loaded with common area
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. 8 0 / 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
FA L L 2 0 1 7
space with games, free Wi-Fi, and concierge services. “It’s about building something that’s comfortable for people to use in their down time,” she said. Dog parks are almost essential for today’s renter, even if they’re on the roof. “We have dog parks in almost all our communities,” Slade said. “Pet amenities are a very significant component of where people choose to live.” Mass transit is another major component of these projects and something today’s market really wants. The Gables McKinney Avenue project connects right to the M-Line Trolley, a free service that links Uptown to downtown Dallas and Dallas Area Rapid Transit. The Turtle Creek project will also connect to the M-Line Trolley. “The trolley has become an important part of the transportation infrastructure in the downtown and Uptown areas,” said Slade, who sits on the M-Line board. “It’s shifting people’s patterns on where they choose to live.” In Las Colinas, the Gables Water Street project is right next to the Las Colinas Urban Center Station for DART’s Orange Line and the APT (Area Personal Transit System). While all these perks do appeal to the young professional demographic, Slade said the surprising trend they’ve seen in Uptown Dallas has been the rise of young families and empty nesters. The fastest-growing renter’s group includes families with children 5 years old and under. “It is becoming more and more diverse in terms of age and population,” Slade said. “Uptown is changing significantly.”
WORKING IN HER COMMUNITY Slade’s fingerprints are all over the community as she volunteers for several city boards and groups. She’s the CEO and chair of Uptown Dallas and a board member for the McKinney Avenue Transit Authority, Preservation Dallas and
FA L L 2 0 1 7
the Real Estate Council Foundation. She’s also the executive board member, chair and CEO for the Uptown Public Improvement District. Recently, she participated in the Dallas Regional Chamber’s Leadership Dallas class, a 10-month program that teaches leadership skills and takes on a community project. The 2017 class raised money to design and build a community garden at the Austin Street Center shelter. Several area contractors and construction companies donated time, labor and materials to make the garden happen. Earlier this year, the homeless shelter dedicated the New Hope Garden, a fruit and vegetable oasis that provides nutritious food to some of the city’s most vulnerable residents. It’s more than a source of food — the garden is educational and therapeutic as the residents learn to till the soil and grow their own food. Daniel Roby, executive director of the Austin Street Center, was also in the class and brought awareness to what the shelter does for the city’s homeless. “It was an incredible experience to learn from him about the needs of the facility,” Slade said. “Our class was exposed to so many elements about what happens in Dallas. Being able to build that garden and help his facility so significantly was very meaningful. We all gained a lot from each other.” Slade’s lifework is shaping the very fabric of North Texas, contributing to a new generation of live, work, and play mixed-use developments. But this Dallas native valued her time in the Leadership Dallas class because it was her chance to give back. “We had a great year. We learned about the different facets of Dallas and the metro region, from education to transportation and health care and everything in between,” Slade said. “It was a great opportunity for me. I learned more from my classmates.”
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.
OCTOBER. OCT. 19 TRECWebinar: Market update with Jimmy Hinton, HFF 8:30 a.m., Online Jimmy Hinton of HFF gives you the latest market news and updates in the return of TREC’s live webinar series. Registration is available through TREC’s website.
OCT. 25 TREClympics 2017 Sponsored by Harwood International 5 p.m., The Grove TREC’s Young Guns members will compete for glory in events like volleyball, cornhole, hula hoop, bocce ball and the water balloon toss. Tickets are available for participants and spectators.
OCT. 26 Cities, Suburbs & the New America 7:15 a.m., Collins Center at SMU The suburbs of tomorrow will look and feel significantly different from what we see today and have known in the past. This event unites TREC and Southern Methodist University in exploring the rapidly changing demographic, economic and physical landscape of America’s metropolitan areas. (TREC]
NOVEMBER. NOV. 1 Industry Insights: Heavy Hitters in Industrial & Office 7 a.m., Dallas Country Club
Deal Sheet have partnered to bring you the latest in their Industry Insights series, presented by D CEO.
NOV. 2 TREC Shark Tank 6 p.m., Gilley’s Modeled after the hit television show, the firstever TREC Shark Tank will feature three teams pitching their projects to redevelop parcels located within the City of Dallas’s GrowSouth footprint before a panel of real estate investors and live audience.
NOV. 9, 2017 The Year Ahead Summit Hilton Anatole A forward-looking discussion on the economy, important trends, political environment, and the issues and challenges that Dallas Regional executives will face in the year ahead. Keynote remarks from John Stephens, Chief Financial Officer of AT&T, in conversation with Ben White, Chief Economic Correspondent at POLITICO. Roundtable discussion will follow. [DRC]
DECEMBER. DEC. 5, 2017 2017 State of the City Hyatt Regency Dallas The Dallas Regional Chamber is honored to host Dallas Mayor Mike Rawlings for his annual State of the City address.
Dallas is setting the national standard for office and industrial development. Now find out what the future holds. TREC and Real Estate
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 / 8 1
C COMMUNITY
TREC SPEAKER SERIES: DANIELLE DIMARTINO BOOTH On two occasions this summer, more than 300 guests filled the Hilton Anatole Hotel’s Stemmons Ballroom for installments of TREC’s Speaker Series, sponsored by Bank of Texas, the Dallas Morning News and Stewart Title. In June, author and commentator Danielle DiMartino Booth shared her insights on the future of the Federal Reserve and what to expect from U.S. monetary policy. Then, in late September, The Dallas Morning News Real Estate Editor Steve Brown moderated a panel discussion between JPMorgan Chase & Co Managing Director Steve Hemperly, AT&T Vice President of Talent Acquisition Jason Oliver and KDC Chairman and Chief Executive Officer Steve Van Amburgh about the battle to attract and retain talented employees in DFW. Each event took a fascinating look at facets of the commercial real estate industry here in Dallas that will impact our city for years to come.
TREC CHAIR GREG KRAUS, TREC PROGRAMS CHAIR DAVID EVEMY, TREC PRESIDENT LINDA MCMAHON, STEVE VAN AMBURGH OF KDC, JASON OLIVER OF AT&T, STEVE HEMPERLY OF JPMORGAN CHASE & CO., BANK OF TEXAS’S KIM KITTLE, THE DALLAS MORNING NEWS’S STEVE BROWN, BUTLER ADVISERS’ DIANE BUTLER, BANK OF TEXAS’S DAN EASLEY
ROBIN MINICK, MELISSA EASTMAN OF STEWART TITLE, BUTLER ADVISERS’ DIANE BUTLER, DANIELLE DIMARTINO BOOTH, TREC PROGRAMS CHAIR DAVID EVEMY
STEVE HEMPERLY AND JASON OLIVER
STEVE BROWN, JASON OLIVER, STEVE HEMPERLY, STEVE VAN AMBURGH
JASON BROWN, STEVE HEMPERLY, STEVE VAN AMBURGH
8 2 / 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
FA L L 2 0 1 7
L LEADERSHIP
STANTEC’S JIM KNIGHT: LEADING THROUGH A SERVANT PHILOSOPHY BY AMY WOLFF SORTER
DANIELLE DIMARTINO BOOTH
STEWART TITLE’S KATE CAVANAUGH, DANIELLE DIMARTINO BOOTH, STEWART TITLE’S MELISSA EASTMAN
BANK OF TEXAS’S MARTY HALL, DANIELLE DIMARTINO-BOOTH, BANK OF TEXAS’S DAN EASLEY FA L L 2 0 1 7
Jim Knight lives by two mottos. First, “every day you get up, you have to do something that makes the world a better place, and make others’ lives better,” says Knight, senior principal with Stantec’s Dallas office. The second? “You have to raise your family, so they can make the world a better place, after you are gone,” he says. Knight is the driver behind such master-planned communities as Trinity Groves, an 80-acre development west of downtown Dallas that offers restaurants, retail, hotels, and housing. For more than 30 years, he has focused on land development, master planning and infrastructure design. He’s driven by a desire to serve family, industry and community. In fact, Knight believes he is a servant to his community. “If I can’t make my community better, in some way, every day,” he says, “I’m not doing my job.” Knight says he is focused on future generations, in part, because he and wife, Alexa, have three children. His eldest son, Jared, is an attorney; middle son Zander is in high school, and daughter Harper Leigh attends middle school. “I believe my job is to make the world better for them and others their age,” he says. “When they grow up, they can avoid my mistakes, and pay the philosophy forward.” Part of Knight’s beliefs also can be tied to changes in civil engineering and real estate. “Back in the 1980s, you had to be a good technical engineer to survive,” Knight says. In the 1990s through the early 2000s, relationships were the focus. These days, “thanks to advances in technology, everyone is technically good at the job, and everyone has great relationships,” Knight says. The next logical step is adding value. “I have to make a difference, every day, to make my client’s project a success,” he says. “If I can’t make my clients’ projects better, they don’t need me.” Then, there is service to the community. Knight was active with the Real Estate Council in Austin (RECA), ultimately becoming that organization’s president. When he and his family moved to the Dallas area in 2011, he joined RECA’s sister organization
JIM KNIGHT
in Dallas, The Real Estate Council (TREC). Knight is TREC’s vice chair for 2018; in 2019, he’ll step into the role of chairman. One of his goals is to work with governments on regulations to drive economic development and sustainability. He also wants to address education. “The better we’re able to educate our young people, the better the next generation will be,” he says. Knight is on the boards of Downtown Dallas Inc. and the Dallas Regional Chamber. “Downtown Dallas Inc. is working on economic drivers for downtown Dallas,” he says. “The Dallas Regional Chamber wants to grow the entire community. And TREC focuses on improving the CRE world. They work in tandem.” Knight’s service philosophy can be traced to his upbringing. Born and raised in Temple, Knight is a seventh-generation Texan, who learned, from his parents, that humans are Earth’s tenants, and are responsible for the planet. He affirmed his philosophy while in school, earning a bachelor’s degree in mechanical engineering from the University of Texas and an MBA in finance from Texas State University. Ultimately, his beliefs crystalized throughout his career, from his start at Baker-Aicklen & Associates in Round Rock, Texas through 2016, when Stantec bought Bury, the company he had co-founded. It’s safe to say that Knight’s overall belief is servant leadership, that doing right to do good eventually leads to success. “The real power is being able to reach out, with hands open, and ask how I can help you,” Knight said. “It’s not about putting yourself above everyone else.”
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 / 8 3
VIEW FROM THE TOP
BY LANCE MURRAY
WHAT PROMPTED PWC TO WANT TO RELOCATE THE DALLAS OFFICE? We were seeking a real estate solution. It wasn’t just about room to grow, though that was a priority. We were really looking to create a more collaborative working environment for our people — a space that fosters teamwork and interaction. And of course, we needed the space to accommodate our projected growth in Dallas.
IN YOUR SITE-SELECTION PROCESS, WHAT TIPPED THE SCALE IN FAVOR OF THE PARK DISTRICT DEVELOPMENT? PwC’s move to Park District was a win-win. It allows the firm to create a great office environment in a place where our people want to work and live. The advantages of being in a mixed-use space create a better working environment for our people, that together with PwC’s current design standards made it incredibly appealing. Not to mention that having the letters PwC above the Woodall Rodgers Freeway is a tremendous opportunity to show that we are committed to Dallas and it wasn’t something we had previously.
HOW DOES THE UPTOWN AREA FIT INTO THE NEEDS OF YOUR EMPLOYEES?
SCOTT MOORE PwC Dallas Managing Partner Global consulting firm PwC has been a fixture in Dallas for more than 70 years, and when company officials started looking for a new home to expand the Dallas office, it boiled down to the old adage, “location, location, location.” PwC Dallas Managing Partner Scott Moore explains how moving to the Park District tower in Uptown will create a great working environment for employees, provide for future growth, and show its commitment to the city of Dallas. The company will occupy 200,000 square feet of space — floors 12 to 19 — within the 20-story tower adjacent to the lush green lawns of Klyde Warren Park.
8 4 / 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
Quite simply, our people are our greatest asset. It is crucial to provide an environment that integrates seamlessly with the way our partners and staff want to live and work. That means a location equally appealing and accessible for people who want to live downtown and those who commute. Dallas is a top market for PwC and this kind of environment serves as an asset in recruiting and retaining top talent.
YOU CHOSE TO STAY IN THE DALLAS URBAN CORE RATHER THAN LOOK TO SUBURBAN AREAS SUCH AS PLANO OR FRISCO. WHY? We have been in Dallas for over 70 years and I can’t think of a better way to show our commitment to the city and the market than by actually being in Dallas. On a strategic level, our location keeps us in close proximity to many of our clients and all that downtown has to offer.
FA L L 2 0 1 7
THE HEIGHT OF LO C A L E
Ross Tower’s 45 stories of Class A office space provide distinctive accommodations at an iconic, architecturally stunning downtown destination. Conveniently located near Klyde Warren Park and the Arts District, and featuring a selection of on-site dining options and amenities, Ross Tower places you in an unparalleled setting at the heart of the city.
For leasing info contact HUNTER LEE 214.954.3304 hlee@hpitx.com
R O S S TOW E R .CO M