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Making safe, smart transportation solutions a reality Supporting our communities from local offices in Dallas, Fort Worth and Plano.

Visit stantec.com to learn more


A

TEXAS DESTINATION FOR

Keri Samford, Executive Director of Development 972.624.3127 • edc@thecolonytx.org • www.TheColonyEDC.org


S:7”

DOWNTOWN DALLAS

EXPECTATIONS SHATTERED

S:10”

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

T:10.75”

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


ON THE COVER Hidden Ridge rendering courtesy of Gensler

FALL 2018

CONTENTS

21 THE CRANE REPORT

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

FOUNDATIONS DFW Market Statistics, Economic Indicators, and Commercial Real Estate News. . . . . . . . . 12

PLACEMAKERS Jeffory D. Blackard, Founder/CEO of Blackard Global . . . . . . 12

32 PANEL DISCUSSION

BUILDING TOMORROW TOGETHER The Year in Review . . . . . . . . . . . . . . . . . . . . 14

THE CRANE REPORT Who’s Building What, Where . . . . . . . . . 17

SCORECARD DFW’s Top Office, Industrial, and Retail Leases . . . . . . . . . . . . . . . . . . . . . . 25

PANEL DISCUSSION Transportation Revolution. . . . . . . . . . . . 30 FA L L 2 0 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 / 3


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

DFWREALESTATEREVIEW.COM

42 FEATURE 121: The Road to Everywhere A corridor 20 years in the making has blossomed into another Dallas-Fort Worth CBD . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

D MAGAZINE PARTNERS BUSINESS GROUP PUBLISHER Josh Schimmels

PUBLISHER Quincy Preston 214-523-5215 quincy.preston@dmagazine.com MANAGING EDITOR Lance Murray ASSOCIATE EDITOR Alex Edwards CREATIVE DIRECTOR Michael Samples

50 ANATOMY OF A DEAL

CONTRIBUTING EDITOR Christine Perez

Hidden Ridge

CONTRIBUTING WRITERS

Verizon’s $1B, 5G-enabled development in Irving rises from its ranching roots . . . . . . . . . . . . . . . . . . . . . . . . . 50

INNOVATION

Brandon Call Kerry Curry David Kirkpatrick Nicholas Sakelaris ACCOUNT EXECUTIVES Samantha Ragsdale

Hotel Boom

214-523-0384

New hotel projects are bringing innovative concepts that will keep the North Texas hospitality sector moving forward . . . . . . . . . 56

SPECIAL ADVERTISING SECTION

samantha.ragsdale@dmagazine.com Carson Rice 214-523-5259 carson.rice@dmagazine.com BUSINESS DEVELOPMENT MANAGER

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

Stephanie Mojonnet 214-523-0311 stephanie@dmagazine.com MEDIA DEVELOPMENT MANAGER Payton Potter

COMMUNITY Dallas Regional Chamber, Top-Level Members . . . . . . . . . . . . . 64 The Real Estate Council, Impact Investors . . . . . . . . . . . . . . . . 66 Dallas Regional Chamber, Leadership Dallas . . . . . . . . . . . . . . . 68 Calendar of Events . . . . . . . . . . . . . . 69

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INTERNS

The Real Estate Council Photos: TREC’s Giving Gala . . . . . . . . . . . . . . 70

Lauren Hawkins

The Real Estate Council, TREC Leadership . . . . . . . . . . . . . . . 71

Blair Welch

View From the Top: “J.” Hedrick,CEO, Pei Wei . . . . . . . . . 72

Dana McCurdy Michelle Quiroz

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. ©2018 All rights reserved. No part of this publication may be reproduced or reprinted without written permission. Neither the Dallas Regional Chamber nor The Real Estate Council nor D Magazine Partners is a sponsor of, or committed to, the views expressed in these articles. The publisher is not responsible for unsolicited contributions.


Richardson’s CityLine

Downtown McKinney

Downtown Roanoke

Allen’s Montgomery Ridge

Blackard Global Craig International CWA Management Dreien Opportunity Partners Embrey Partners KDC Malcolm Bryant Co. Montgomery Family Newell Companies Options Real Estate Parliament Group Rex Real Estate Rosewood Property Co. Suburban Land Reserve Standridge Companies Thompson Realty Trike Investors Westcott Woodhouse Allen Argyle Burleson Celina Dallas DART Duncanville Fate Flower Mound Fort Worth Frisco Garland Grapevine Irving Mansfield McKinney Melissa NCTCOG North Richland Hills Roanoke Richardson Plano

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We Plan and Design. It’s Developed.

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DALLAS • FORT WORTH • AUSTIN • CHICAGO gatewayplanning.com | 214.529.7430 | 817.348.9500


WELCOME

A letter from the Dallas Regional Chamber and The Real Estate Council

OPPORTUNITY ZONES

2018 CHAIRMAN OF THE BOARD John Stephens Senior Executive Vice President & Chief Financial Officer AT&T PRESIDENT & CEO

ARE KNOCKING

Dale Petroskey CHIEF OPERATING OFFICER & CHIEF FINANCIAL OFFICER Angela Farley

DALE PETROSKEY President and Chief Executive Officer Dallas Regional Chamber

LINDA McMAHON President and Chief Executive Officer The Real Estate Council

If you have not yet heard about Opportunity Zones — you will soon. As part of the Tax Cuts and Jobs Act passed by Congress in 2017, Opportunity Zones were added to the tax code. An Opportunity Zone is an economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. The U.S. Treasury has certified 8,700 Opportunity Zones across the country. Texas has 628, and the Dallas-Fort Worth Metropolitan Statistical Area has 52 designated zones, 18 of which are within the City of Dallas. The code allows for businesses or individuals who have capital gains exposure the ability to invest in small businesses, the expansion of existing businesses, or real estate development within those zones, and receive a delay and decrease in their capital gains tax liability. This new investment opportunity virtually creates a domestic emerging market fund that could unleash the estimated $2.3 trillion in capital gains in this country. This flow of funds could generate significant economic growth and opportunity in communities that have not seen investment in decades. This is potentially the strongest economic development tool

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we have ever seen and will spur job creation and economic development in our distressed communities in Dallas-Fort Worth. This is not a short-term investment but a long-term investment—with capital gains reductions realized only after holding investments for 5-7 years. And a bonus—if those investments are held for 10 years, the growth in value of those investments will not be subject to capital gains taxation at all. According to the Economic Innovation Group’s 2017 Distressed Communities Index, 1 in 6 Americans live in ZIP codes that are considered economically distressed. The Communities Foundation of Texas, in partnership with the Center for Public Policy Priorities, recently released the Economic Opportunity Report for Dallas which shows household income in Dallas County has decreased 16 percent since 1999. Even with our strong regional economy, investment in our distressed communities has faltered. Opportunity Zone Funds are popping up around the country. In Dallas, there are already several being discussed and created. The Real Estate Council recently held two well-attended information sessions, featuring top experts from Novogradac & Company and Locke Lord, to inform local investors and developers on the topic. It is evident that interest is growing across the region in how we can best utilize this new vehicle to harness significant wealth and investment into our neighborhoods that need it most. As a region that is already attracting top talent and corporate relocations from around the country, this is another arrow in our quiver to attract even more business and jobs and drive economic growth.

COMMUNICATIONS & MARKETING, SENIOR VICE PRESIDENT Darren Grubb RESEARCH AND INNOVATION, SENIOR VICE PRESIDENT Duane Dankesreiter RESEARCH AND INNOVATION, MANAGING DIRECTOR Eric Griffin

2018 CHAIRMAN Ran Holman Cushman & Wakefield CHAIRMAN-ELECT Jim Knight Stantec PRESIDENT & CEO Linda McMahon VICE PRESIDENT, LEADERSHIP & CULTURE Holland Morris CFO Carla Brandt

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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


UPFRONT QUINCY PRESTON Publisher Dallas-Fort Worth Real Estate Review

A letter from the Publisher

If you drive in North Texas, it’s likely that you’ll travel on S.H. 121, a highway that runs from Dallas Fort Worth International Airport to McKinney. In a way, it’s the “Road to Everywhere,” and cities all along the route are benefitting from the economic growth generated by the 121 corridor. The Sam Rayburn Tollway encompasses much of the highway, which has been 20 years in the making, and is becoming another central business district for the region. Brandon J. Call’s story begins on Page 42. Starting on Page 30, you’ll discover what industry experts had to say at The Real Estate Council’s panel discussion on transportation. They say there’s a revolution underway—from flying taxis and autonomous cars to The Hyperloop. What do you get when you combine the lore of North Texas ranching with the future of a high-tech, 5G-enabled, transportation-driven mixed-used development? You get Verizon’s $1 billion Hidden Ridge project in Irving. Rising on land that once was a prominent ranch, Hidden Ridge is rewriting history in Las Colinas, where it will be the headquarters of Pioneer Natural Resources, new-tech apartment homes, and the latest in retail and restaurants. You’ll find Nicholas Sakelaris’ Anatomy of a Deal article beginning on Page 50. In our Innovation feature, beginning on Page 56, writer David Kirkpatrick unlocks the doors on the booming construction in the Dallas-Fort Worth hotel sector. Companies and developers are building innovative spaces to rest your head, hold a meeting, or attend a convention. Names such as The Peabody, The Texican Court, The Statler, The Pittman, and The Lorenzo are changing how we think of hotels. Our Placemakers feature, beginning on Page 12, highlights the work of Jeff Blackard of McKinney-based Blackard Global. He patterns his development philosophy, called “NeoRetroism,” on what he discovered in European villages where “every structure had a purpose.” In our View from the Top feature on Page 72, Pei Wei CEO J. Hedrick talks about the restaurant company’s move to Irving, where it has a research center and enough space for him to “reboot” the chain. You’ll also find the biggest lease transactions in the office and industrial sectors in Scorecard, beginning on Page 29, and the latest in North Texas construction projects in the Crane Report beginning on Page 17. Starting on Page 10, we’ve got DFW market statistics, ecomic indicators, and commercial real estate news in Foundations. You can find extended content on our website, www.dfwrealestate.com, and in our Facebook feed. Stay in touch. We want to hear from you.

Quincy Curé Preston Publisher

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Onward and Upward

Uber Elevate Skyport Concept Exhibited at Uber Elevate APAC Expo Tokyo, Japan | August 2018

architecture interiors planning graphics strategy


FOUNDATIONS

A baseline for the region’s future

INCENTIVES

MAPPING OPPORTUNITY ZONES IN THE REGION As discussed in this issue’s Welcome Letter, Opportunity Zones are attracting a lot of interest. Created by the recent tax reform, they’re low income or low income-adjacent census tracts designated by state governors as areas in need of an economic shot in the arm. Investors and developers can achieve significant tax breaks on their capital gains by reinvesting those gains in a designated Opportunity Zone and holding it there long term.

According to some estimates, Opportunity Zone funds could garner as much as $30 billion in capital over the next few years.

MULTIFAMILY

WHERE IT’S HAPPENING Multifamily units currently under construction

55,000+ UNITS NOW UNDER

South Dallas Southeast Fort Worth Lewisville/Flower Mound Southeast Dallas Intown Fort Worth/University

CONSTRUCTION

North Fort Worth

SOURCE: Dallas Regional Chamber

52 Opportunity Zones in DFW Gov. Greg Abbott designated 628 opportunity zones in Texas, 52 of which are in the Dallas-Fort Worth metro. Of those 52 DFW opportunity zones, 18 are within the Dallas city limits. This map details their specific locations.

Northeast Fort Worth Southwest Fort Worth Denton Outer Counties

DFW MULTIFAMILY PIPELINE STILL BULGING TO KEEP UP WITH DEMAND Multifamily supply levels remain elevated this year to keep pace with population growth, driven by the 122,000 jobs added in the last year. According to data from JLL, more than 55,000 units are now under construction. In the first half of this year, 12,500 units were

delivered, and if the pipeline stays within expectations, 2018 deliveries should come in at nearly 31,000 units by year end. Although all regional submarkets are seeing increased activity, the lion’s share of the pipeline is slated to fill up central Dallas,

where 28,000 units are underway. Overall, though, Frisco/ Prosper is leading the market in new construction activity with nearly 6,000 units. It’s followed closely by East Dallas, Farmers Branch, Downtown Dallas, and Richardson/Plano.

West Dallas

KEEPING UPTHE PACE

Las Colinas North Dallas

Units delivered vs. under construction

Allen/McKinney

35,000

Northwest Fort Worth

30,000

Garland/Rowlett

25,000

Midcities

20,000

Richardson/Plano

15,000

Downtown Dallas

10,000

Farmers Branch/Addison

5,000

East Dallas

0

Frisco / Prosper

2016 2,000

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4,000

6,000

■ DELIVERED

2017

2018

2019

2020

2021 SOURCE: JLL

0

■ UNDER CONSTRUCTION

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F FOUNDATIONS INDUSTRIAL

TRENDS

NEW INDUSTRIAL SUPPLY EXCEEDS HISTORICAL NORMS The Dallas-Fort Worth industrial market continues to grow at a remarkable rate. Once again this year, new supply is expected to exceed historical averages—by 105 percent, according to statistics released by Cushman & Wakefield. In the past 10 years, the market has grown by about 20

percent, from 602.1 million square feet to 734.1 million square feet. The market continues to lead the nation in building completions and absorption. It ranks No. 3 in size, behind Chicago and Los Angeles, and No. 4 in major markets with the lowest vacancy rate. As of the third quarter, 19.1

million square feet of industrial space was under construction in North Texas, with nearly 8 million square feet set to deliver before the end of 2018. Year-end completions are expected to total 27.2 million square feet, second only to the 29.2 million square feet that was developed in 2017.

TRACKING THE GROWTH OF DFW’S INDUSTRIAL MARKET The region has added more than 132 million square feet of industrial space in the past 10 years.

25

750

20

700

15

650

10

600

5

550

0

500 2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

SOURCE: Cushman & Wakefield, Oct. 2018

800

INVENTORY (MSF)

COMPLETIONS (MSF)

30

HOUSING

DALLAS RANKS NO. 1 IN HOUSING STARTS Dallas-Fort Worth continues to lead the nation in housing starts in the U.S., despite seeing a slight dip for the 12 months ending September 2018. According to a new report from Metrostudy, DFW builders started 34,924 homes during the yearlong period, with 9,042 coming in the third quarter. This represents a year-over-year drop of 1.3 percent and a stark contrast

from the 12.1 percent jump seen for the 12-month period ending in June. Home closings in the third quarter increased 8.7 percent year over year but dropped by 3.8 percent compared to the second quarter of 2018. “Builders report slower sales and developers report delays in builder lot purchases,” says Paige Shipp, regional director of Metrostudy’s Dallas-Fort

Worth region. “Inventory, both under construction and finished vacant, edges upward, toward the upper limits of equilibrium. While this cooling may worry some, it should be viewed as a positive stabilization of an overheated, frenzied market.” North Texas is a job node with a ton of momentum, which continues to make the metro an attractive site for homebuilders.

ULI EMERGING TRENDS IN REAL ESTATE: DALLAS-FORT WORTH TOPS IN NATION Dallas has ascended to the No. 1 perch atop the list of the most promising cities for real estate investment in ULI/PwC’s annual Emerging Trends in Real Estate survey. Last year, the metro took the No. 5 spot, and the year before it was at No. 3—not so much for lack of opportunity but because other cities like Seattle were burning fast and bright at the time. Now, stellar population growth, economic growth potential, and great liquidity have propelled the DFW back to the top of the charts.

OFFICE

DFW OFFICE FUNDAMENTALS REMAIN STRONG According to research from CBRE, the third quarter of 2018 yielded the most net absorption in a single quarter so far this year, at 847,191 square feet. The year-to-date total is just under 1 million square feet, according to a recent CBRE report. Across the region, Class-A space represented 63 percent of the absorption. Thanks to strong job growth of 3.3 percent—nearly double the national average of 1.4 percent—tenants continue to move into new space, with overall occupancy falling 20.8 percent and average asking lease rates ticking up to $25.03 per square foot. The market put up these numbers despite seeing 1.37 million square feet coming online during the third quarter.

RETAIL

VICTORY PARK RETAIL RESURGENCE PHOTOS: DANA MCCURDY

After 20 years, Victory Park’s retail space is seeing a revival. Just six years ago, the mixed-use development was only 28 percent leased. Now it boasts an occupancy of 83 percent. This year, the district is opening 10 eateries and entertainment concepts, and has already launched buzzy businesses like Orangtheory Fitness, WeWork, and Cinepolis Luxury Cinemas.

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P PLACEMAKERS

NEW WORLD ORDER Jeff Blackard’s “NeoRetroism” development philosophy takes an integrated approach, borrowing from evolution patterns in Old World villages. 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

BY BRANDON J. CALL

A trip to Croatia years ago led to a profound, life-changing epiphany for Jeff Blackard, CEO of McKinney-based Blackard Global. By that point in his life, he had developed thousands of residential lots in North Texas and throughout Texas and elsewhere. His multimillion-dollar projects, like Lakes on Legacy and Heritage Lakes in Frisco, had earned accolades. But he always felt something was missing. He had begun adding resort-style amenities at his master-planned communities and preserving more trees. It cut into his profits a bit, but he wanted to create a more fulfilling living environment for residents. Still, he had a nagging feeling that they could be better. Things came to a head in late 1999, when Blackard set up a meeting with PGA golfer Payne Stewart to consult on a new residential neighborhood. Tragically, the plane carrying Stewart and his business associates lost cabin pressure and crashed, killing all aboard. Devastated and wracked with guilt, Blackard fled to Croatia. He had visited the country before, having been invited by a Croatian government official after a chance meeting in Houston. This time, he began to look at real estate investment opportunities along the Adriatic coast. He fell in love with a small fishing village, Supetar, on an island called Brac, and bought a portfolio of

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P PLACEMAKERS ADRIATICA

“ONE OF THE FIRST THINGS I NOTICED WAS THAT EVERY STRUCTURE HAD A PURPOSE. THE PHYSICAL SPACE SUPPORTED THE NEEDS OF THE PEOPLE — AND ENCOURAGED INTERACTION.”

PHOTOS: BLACKARD GLOBAL

— JEFF BLACKARD, ON VISITING SUPETAR, A SMALL CROATIAN FISHING VILLAGE

SUPETAR, A SMALL CROATIAN FISHING VILLAGE, PROVIDED INSPIRATION FOR BLACKARD’S ADRIATICA DEVELOPMENT IN MCKINNEY

properties there that included a waterfront hotel. As he got to know some of the staffers at the hotel, he learned that one of the bartenders had a law degree. One of the maids was a doctor. When asked why they would take jobs at a hotel when they could have more lucrative careers in some big European city, they said they wanted to stay close to family. Supetar, they said, was home. “It was so different from what I was used to in America, where we think nothing of picking up and moving,” Blackard says. Wanting to learn more, he decided to go out and talk with other villagers and observe life in the little harbor town. He began taking photos and videos, studying people, buildings, roadways, and walkways, putting the question of “why” on everything.  “One of the first things I noticed was that every structure had a purpose,” Blackard says. “The physical space supported the needs of the people—and encouraged interaction.” His research ultimately spanned two years and resulted in a library of more than 250,000 photos and countless hours of video. It began to answer questions that had long plagued him about his approach to development, he says: “It was telling me that everything I had been doing was wrong.” All of this led Blackard to put into words his new development philosophy. Called “NeoRetroism,” its goal is to recreate the way communities throughout the world have evolved for centuries. By contrast, American suburbs have largely

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been designed around the car. True placemaking, Blackard argues, is the natural evolution of primitive needs. When designers and developers create plans for new projects, they need to ask themselves: Is this natural or artificial? “You can’t just put up a gazebo and call it placemaking,” he says. “You can’t force people to intersect and communicate. There has to be something natural and organic about that environment.” Blackard put his theory to the test with Adriatica, a 45-acre mixed-use development on Virginia Parkway and Stonebridge Drive in McKinney. It is, in fact, modeled after Supetar, the Croatian village that inspired him to rethink his entire approach to development, down to its cobblestone streets, stunning chapel, and landmark bell tower. Adriatica goes beyond “new urbanism” to truly mix uses and residents with different income levels—just like Old World villages that evolved naturally and have thrived for centuries. Today, Adriatica is flourishing. It has more than 400 residences, ranging from starter apartments to multimillion-dollar homes, plus 60,000 square feet of retail space and 144,400 square feet of office space. Leading experts in architecture, design, community development, and planning have visited and studied the project. Still, Blackard, who today maintains ownership of just the bell tower and chapel, says Adriatica has only partially achieved his vision. He has several other NeoRetroism projects in the works. His dream is to put his philosophy to the test in South Dallas. “I want to prove how village-building can lead to transformational change,” Blackard says. “I believe a village is the answer to all of our problems.”

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B BUILDING TOMORROW TOGETHER

THE YEAR IN REVIEW BY MIKE ROSA SENIOR VICE PRESIDENT, ECONOMIC DEVELOPMENT, DALLAS REGIONAL CHAMBER

In late October, while flying home after participating as a delegate on a State of Texas corporate recruitment mission to Chicago, I took inventory. I counted up the number of corporate recruitment projects we’ve hosted, companies we’ve helped land, and the marketing and pipeline-building accomplished over the past 12 months—forever to be remembered in economic development circles as the Year of Amazon HQ2. Early this year, I heard directly from site location consultants, privately, that some cities, regions, and states were “too busy” with Amazon to focus on other corporate location interests. That’s unacceptable not only to the Dallas Regional

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Chamber, but also to the economic developers representing our regional cities, our allies with the State of Texas, and everyone reading this, I’m sure. While working on Amazon, we were determined to maintain pace on other activities, not letting anything slip. After DFW’s selection as one of 20 Amazon HQ2 regional finalists on Jan. 18, we began to build the final-phase response and prepare for Amazon’s visit. Behind that scene—actually one day earlier—we also engaged another project through a site selection consultant. The project was known then as “Apollo.” Apollo wanted to visit our region on Jan. 25, one week later, and the same week we

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B BUILDING TOMORROW TOGETHER and many others locally knew we would be up to our ears in Amazon. Apollo requested that the DRC coordinate a regional presentation, complete a request for information, and organize meetings with multiple DFW cities—the full package. Apollo received our complete attention, no excuses, and got the same from our partners in local cities. “Apollo” turned out to be Vistaprint, formally announced in August, and a great win of manufacturing jobs by the City of Dallas, and for southern Dallas specifically. The project will employ 600 who are paid an average of $40,000 per year. Other DRC-touched projects have announced during the Amazon window. In addition to Vistaprint, Dallas landed the headquarters of Smoothie King. Plano recruited the U.S. headquarters of Bombardier Recreational Products, maker of Ski-Doo, Evinrude, and other wellknown brands. Plano also won a major corporate office location for Peloton, the fitness cycle company. Irving successfully located a substantial regional headquarters for Pacific Dental. Louis Vuitton announced it will build a manufacturing workshop in Johnson County, south of Fort Worth. Another landed project will be the region’s 23rd and newest Fortune 500 headquarters. Core-Mark, based in South San Francisco, quietly announced it will move its headquarters to Westlake in early 2019. The DRC first met Core-Mark executives in 2014. Our targeting research indicated Core-Mark might be a prime candidate for a headquarters move at some point. We kept in touch, meeting them twice while on California marketing trips, and this

THE PIPELINE REMAINS STRONG AS WE CLOSE THE YEAR AND HEAD INTO 2019. MULTIPLE HEADQUARTERS PROJECTS, CORPORATE OFFICE PROJECTS, AND INDUSTRIAL OPPORTUNITIES ARE ACTIVELY CONSIDERING DFW. summer we learned the company decided to make the move here. Since Amazon announced its HQ2 search, 30 projects have visited the DRC, and we’ve completed a dozen marketing trips and missions. Right now, we’re organizing to host several site selection consultants later this month. We will take missions to Japan and California before the end of this year. The pipeline remains strong as we close the year and head into 2019. Multiple headquarters projects, corporate office projects, and industrial opportunities are actively considering DFW. Finally, with help from VisitDallas, this summer we successfully bid to host the Site Selectors Guild’s 2019 Fall Forum. The Site Selectors Guild is an association of 44 location consultants with client lists full of U.S. and international corporations considering where to relocate or expand. Several corporate announcements for our region have originated from the DRC’s connection with members of the Guild. The 2019 event will be held in Plano in September, the Guild’s first time to meet in Texas. Thanks to the hard work of the DRC team, regional community leaders, the real estate and development community, and many others closely aligned with corporate recruitment efforts, DFW responded as one region to the Amazon opportunity while not missing a beat in 2018 to create jobs, attract investment, and to build a prosperous region.

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.

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NOVĒ AT KNOX

THE CRANE REPORT

Fall 2018

The demand for space in Dallas-Fort Worth is still strong, and interiors are being designed for collaboration. The bottom line in office campus design is, “People come first,” Fischer’s Sharon Friedberg says. In each issue, we showcase projects that are underway or planned in the Crane Report. Maps for the office and industrial markets are provided by Transwestern. Data for the multifamily market is provided by Axiometrics, a RealPage company. BY LANCE MURRAY

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

OFFICE

SHARON FRIEDBERG

Senior Vice President, Fischer

“Interiors are being designed for more networking and collaboration—more “we” space than “me” space. Urban locations are all the rage from Legacy West to Uptown. Campuses are designed to allow a young rookie to get on the elevator with an upper level executive. They are realizing the importance of providing a pathway to promotion to keep valued employees long term. Bottom line, people come first.” FA L L 2 0 1 8

INDUSTRIAL

MULTIFAMILY

NORA HOGAN

LARRY KNOX

JEREMY FALTYS

“Clients are committing more time initially to understand their ideal workplace strategy with an emphasis on labor analytics. The space branding and building image must reflect and support the culture and brand of the company, including a complete amenity package. Where the CEO lives is no longer the driving factor in determining the ‘right location.’”

“Quality floor slabs (are an important factor in industrial construction). As clear heights and racking heights increase, floor flatness and levelness becomes more critical. Without proper planning and remediation, the expansive soils in Dallas– Fort Worth tend to heave, which is destructive to floor slabs and disrupts business operations.

“Developers have gotten much more in tune with the targeted demographic at the property level and have begun catering project design to meet the renters’ needs. For example, we are seeing in-town assets being built with larger average square footages targeting empty nesters who are downsizing from higher-end single family neighborhoods.”

Principal-CCIM, SIOR, Transwestern

Executive Vice President, Bob Moore Construction

Senior Vice President, CBRE

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THE CRANE REPORT:

OFFICE

RAYZOR RANCH MEDICAL PARK

OFFICES AT RAYZOR RANCH DUCHESS OFFICE PARK FOURCORNERSTONES OFFICE BUILDING FORT WORTH DR PROFESSIONAL OFFICE PARK

ANNOUNCED + UNDER CONSTRUCTION

ANNOUNCED DEVELOPMENTS 1

RIVER WALK MEDICAL PARK IV LAKESIDE CROSSING

AUSPIRE

STONEGLEN OFFICE BUILDING

SIZE: 900,000 square feet LOCATION: Frisco DEVELOPER: Ryan Cos. and Dubai-based Invest Group Overseas DETAILS: The new office campus is part of the $700 million Gate development in Frisco and will include three office buildings in the mixed-use development. It will be on the Dallas North Tollway just south of Lebanon Road. Gensler is the architect on the Auspire project’s buildings, which will surround an urban park. The project is part of the Frisco’s North Platinum Corridor.

CHARLES SCHWAB CORPORATE CAMPUS

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

THE TRAD HEADQUA FREEPOR COMMON

THE BRAUN ON BELT LINE

HERITAGE GLEN MEDICAL CENTER

LAS COLINAS CORPORATE CENTER III

VILLAGE CREEK

USCIS BUILDING AMERICAN AIRLINES CORPORATE CAMPUS VIRIDIAN TOWN CENTER BUILDING I

THE OFFICES AT HAMPDEN WOODS

BROOKHOLLOW COMMONS II

MUSEUM PLACE III

FAIRWAY CENTRE

LOCKE TRIANGLE

2

BAYLOR SCOTT & WHITE HEALTH

SIZE: 600,000 square feet LOCATION: Dallas DETAILS: Baylor Scott & White Health announced plans for a 600,000-squarefoot administration office complex in the 3700 block of Elm Street on the edge of the Deep Ellum neighborhood. The complex would be just south of the system’s giant Dallas campus.

WATERSIDE OVERTON CENTRE TOWER III

CHISHOLM TRAIL PROFESSIONAL PLAZA

BARDIN ROAD CENTER PHASE II

WADDELL EXCAVATING

CHISHOLM TRAIL PROFESSIONAL CENTER

MANSFIELD WEBB AND LAFRONTERA TRAIL

BROAD STREET PLAZA

MANSFIELD MEDICAL OFFICE

UNDER CONSTRUCTION

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

3

GENERAL SERVICES ADMINISTRATION

SIZE: 259,947 square feet LOCATION: Irving DEVELOPER: Trammell Crow Co. DETAILS: Construction has begun on the Class-A, 259,947-squarefoot build-to-suit for the GSA in Irving. The one-story building will house the U.S. Citizenship and Immigration Services’ Texas Service Center. Gensler is the project architect and Manhattan Construction Co. is the general contractor.

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

1

4

OAKBEND CENTRE

NORTH DALLAS MEDICAL CENTER PHASE II

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

3 HIDDEN RIDGE

WEST LOVE BAYLOR SCOTT & WHITE MEDICAL CENTER MOB III

N PLANO RD & ARAPAHOE

VILLAGE ON THE PARKWAY

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

THREE HICKORY CENTRE PIONEER NATURAL RESOURCES

7 CITYLINE

THE POINTS THE GRID AT WATERVIEW

PHASE ONE OFFICE CONVERSION MEADOW GREEN MEDICAL CENTER

OGH MEDICAL CENTRE ROWLETT

BAYSIDE OFFICE TOWER

SWC SH 205 & FM 549

BOOKMARK CENTER

WEIR’S PLAZA

THE DESIGN DISTRICT TOWER PARKLAND KNIGHT

THE FAIRMOUNT BUILDING

GATEWAY OFFICE TOWER THE UNION

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

2

PHYSICIANS SPECIALTY CENTER SUNNYVALE MEDICAL CENTER

SOLA ON LAMAR DAVIS STREET MARKET OFFICE PARK

REDBIRD OFFICE

● ANNOUNCED ● UNDER CONSTRUCTION MAP COURTESY OF TRANSWESTERN

4

THE REALM AT CASTLE HILLS

SIZE: 235,000 square feet LOCATION: Lewisville DEVELOPER: Bright Realty DETAILS: This mixed-use development will be built in three phases and will include 235,000 square feet of office space in a 9-story office building in Phase 1 along the booming State Highway 121 corridor. The second phase will have 260 apartment units and 35,000 square feet of retail space.

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3

4940 HIGHWAY

THE CRANE REPORT:

INDUSTRIAL

990 N MASCH BRANCH RD

17887 US HIGHWAY 380 W

1635 N FM 156

ANNOUNCED + UNDER CONSTRUCTION

GATEWAY DR @ FM 407

ANNOUNCED PROJECTS

1502 EAGLE FM 156 & ELIZABETH CREEK

1

GOODYEAR TIRE & RUBBER CO.

SIZE: 1.2 million square feet LOCATION: Forney DEVELOPER: Hillwood DETAILS: The giant 1.2-million-squarefoot distribution center will be on U.S. Highway 80 in Forney on 102 acres rezoned for the project. It will be part of Dallas-based Petro-Hunt’s 2,000-acre Gateway mixed-use development. The center will employ roughly 160 people.

N BEACH ST

1-11 HASLET COUNTY RD

14484 AVONDALE HASLET RD

1000 GARDEN RIDGE BLVD 1901 LAKESIDE PKY 2601 S VAL 1001 LAKESIDE PKY LAKESIDE PKY @ GARDEN RIDGE BLVD

STATE HWY 12 & FREEPORT P

12451 WILLOW SPRINGS RD

1

1101 INTERSTATE 35 W 10488 HICKS FIELD RD

2W WALNUT HILL LN & E AIRFIE DR

5405 WATAUGA RD

VALLE

5651 MARK IV PKY 1201 & 1301 NE LOOP 820

2700

1501 ROYAL PKY

NWQ 14401 FAA BLVD 5251 F FRYE RD & 4000 S VALLEY VIEW LN HIGHWAY 157 O 2909 W OAKDALE RD

2400 GREAT SOUTHWEST PKY 850 RAILHEAD RD 2300 MEACHAM BLVD

1050 AVENUE K E 1308 E CORPORATE DR

5920, 5940 & 5960 LOWER BIRDVILLE RD

744 REFU 2915 E DIVISION ST 804-812 W WEATHERFORD ST

2525 E ABRAM ST

WJ 2909 E ARKANSAS LN

1450 MARKUM RANCH RD

UNDER CONSTRUCTION 2

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NWC I-20 & HWY 360 BARDIN RD

4940 DAVID STRICKLAND RD 7605 OAK GROVE

● ANNOUNCED ● UNDER CONSTRUCTION

DFW COMMERCE CENTER

SIZE: 1 million square feet LOCATION: Irving DEVELOPER: Copeland Commercial LLC DETAILS: This is the first phase of a four-building, three-phase industrial development that totals 2.9 million square feet of space. It’s in the southeast section of Dallas Fort Worth International Airport in a Foreign Trade Zone at 2601 S. Airfield Drive.

5054 VESTA 4908 SOUTH FWY 4900 FARLEY RD KATENBRUN RD 5528 MARIE JONES RD

8200 SOUTH FREEWAY 9600 TECHNOLOGY BLVD

2911 S GRE SOUTHWES

4551 NEW YORK AVE

8600 WILL ROGERS BLVD 425 W EVERMAN PKY

7901 VALCASI DR

350 GARDEN ACRES DR 4293 E FM 1187

FM HWY 1187 BUILD-TO-SUIT WISTERIA ST

MAP COURTESY OF TRANSWESTERN DATA SOURCE: REAL ESTATE REVIEW RESEARCH/ DALLAS REGIONAL CHAMBER / VARIOUS REAL ESTATE FIRMS

3

R+L CARRIERS

1 ENDEAVOR RD

SIZE: 142,000 square feet LOCATION: Sanger DEVELOPER: Bob Moore Construction DETAILS: Work has begun on the new truck terminal for R+L Carriers that totals 142,000 square feet of space, which is aimed at streamlining R+L’s operations in Texas. It includes a fuel island and three buildings. Once completed, the facility is expected to create 200 jobs over a five-year period.

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0 US Y 377 S

MCKINNEY FIVE INDUSTRIAL

I-75 & WILMETH RD 1581 CORPORATE DR

900 E UNIVERSITY DR

15815 EXECUTIVE DR

INDUSTRIAL BLVD

1650 FM 546

ALLEN COMMERCE PKY

4

E CT 2150 MIDWAY RD

CORE 5 BUSINESS CENTER

LLEY PKY 2930 TELECOM PKY

301 VISTA RIDGE MALL DR 4398 AIRBORN DR

1702 W CAMPBELL RD

121 PKY 1010 LUNA RD

1950 W DIPLOMAT DR

TBD CORPORATE CROSSING

13330 SENLAC DR

1200 S JUPITER RD

MORGAN PKY

11090 N STEMMONS FWY

2040 KRISTY LN

1601 S SHILOH RD

1200 S JUPITER RD

13435 JUPITER RD

EY VIEW LN & RENTAL C

0 MARKET ST

9749 CLIFFORD DR

Q CONFLANS RD & HWY 161 FRYE RD

949 W OAKDALE RD

S BUCKNER BLVD 120 CLAY RD

E WILDLIFE BLVD 1401 & 1501 CHALK HILL RD

UGE WAY

4025 E I-30

1

3301 INNOVATIVE WAY

1301 CHALK HILL RD

4000 E SCYENE RD

JEFFERSON BLVD

3584 MOUNTAIN CREEK PKY EAT ST PKY

1508 HAYMARKET RD I-20 HWY

4104 DUNCANVILLE RD

E INTERSTATE 35 BONNIE VIEW @ INTERSTATE 20 ROAD & TELEPH 8701 AUTOBAHN DR DANIELDALE ROAD 501 W DANIELDALE RD

E CLEVELAND RD

WINTERGREEN RD

201 EZELL ST 917 E CENTRE PARK BLVD

3401 N DALLAS AVE

2810 DANIELDALE RD

SWC LANCASTER HUTCHINS & RD

1610 N GOODE RD SUNRIDGE BLVD 6300 S I-45

MILLERS FERRY RD & LAVEND

110 BOWIE DR

4

SIGNAZON

SIZE: 55,000 square feet LOCATION: Plano DEVELOPER: Bob Moore Construction DETAILS: Construction is underway on the new office, manufacturing, and distribution facility for Signazon, an online retailer and manufacturer of signs, banners, and marketing materials. The building was designed by GFF Architecture and should be completed in early 2019.

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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 1


PALLADIUM DENTON DISCOVERY PARK

THE CRANE REPORT:

THE VILLAGE AT RAYZOR RANCH I

MULTIFAMILY

13 UNDERWOOD

THE MAJESTIC ON MCKINNEY 404 INDUSTRIAL PARK

MILL

OXF

ANNOUNCED + UNDER CONSTRUCTION

ANNOUNCED DEVELOPMENTS 1

HILLSTONE RIVER WALK

● ANNOUNCED ● UNDER CONSTRUCTION

SPRING CREEK FRISCO 45

ELAN FLOWER MOUND

SIZE: 1,000 units LOCATION: Frisco DETAILS: The development on the southern edge of the city is near the new Toyota Motor North America campus and the $3 billion Legacy West development in Plano and will feature 1,000 apartments, 1.4 million square feet of office space in four towers, and 80,000 square feet of retail.

ENCLAVE AT THE PARK JUNCTION CROSSING ARCOS AT PRESIDIO

CORTLAND RIVERSIDE

THE MILLENNIUM AT HOMETOWN

THE FLATS AT 901

GRAND ON BEACH THE KELLEY AT SAMUELS AVENUE

MONARCH CITY

SIZE: 4,000 units LOCATION: Allen DEVELOPER: Howard Hughes Corp. DETAILS: Howard Hughes Corp. is partnering with the city of Allen on this mixed-use development that will feature 4,000 units of multifamily residential, 4.5 million square feet of office space, 300,000 square feet of retail space, two hotels, restaurants, and entertainment space in a “live,work, play” model in the booming U.S. Highway 121 corridor. Omniplan is the project’s architect and JLL is the broker.

TRINITY UNION

TACARA VILLAGE THE LANDING AT CROSS CREEK

ENDEAVOR LEFT BANK

3

RIVERSIDE VILLAS RIVERSIDE PLACE

THE UNION AT RIVER EAST I

RIVERWALK 311 NICHOLS STREET MAGNOLIA

ELAN CROCKETT ROW SIENNA HILLS PALLADIUM

DATA SOURCE: AXIOMETRICS, A REALPAGE COMPANY

2

JEFFERSON SILVERLAKE

ALEXAN SUMMIT

THE MONARCH

ALTA WATERSIDE

AV HER

MAGNOLIA ON STANLEY THE QUADRANGLES ON TWENTY

THE DYLAN

AURA 3SIXTY II

MAP COURTESY OF REALPAGE MANSFIELD GARDEN AUBERGE OF BURLESON

THE JULIAN AT SOUTH POINTE I

UNDER CONSTRUCTION 3

JEFFERSON RIVER EAST

SIZE: 400 units LOCATION: Fort Worth DEVELOPER: JPI DETAILS: JPI has broken ground on the Jefferson River East project in Fort Worth. The project is on the cross streets of Oakhurst Scenic Drive and East Belknap Street, and sits on eight acres near the renovated Riverside Park and the Trinity River. It’s less that two miles from downtown Fort Worth.

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W AT


THE LANDING AT LITTLE ELM

WEST RIDGE VILLAS SATORI FRISCO I

EMERSON COURT AT FRISCO MARKET CENTER II

FOUR CORNERS

LENNIUM PLACE

FORD AT LAKE VIEW

THE CARMICHAEL ALTA FRISCO SQUARE

SKYHOUSE FRISCO STATION DOMAIN AT THE GATE CENTRAL PARK AT CRAIG RANCH I

STATION HOUSE

1

2570 LAKE RIDGE ROAD

McKINNEY, TX

THE ADLEY AT SPRINGS AT CRAIG RANCH MCKINNEY

CANTERRA

ALAQUA AT FRISCO TOWER BAY LOFTS

EDISON AT FRISCO

2

Situated for business.

CITRON ALLEN STATION

THE REFLECTION AT MONTGOMERY RIDGE BREEZEWAY FARMS I

ALTA 289 THE KINCAID AT LEGACY

MORADA PLANO HEBRON 121 STATION V

CITYLINE PARK

SLOANE STREET TRINITY MILLS PLACE

THE ASHER

SWITCHYARD OLYMPUS ADDISON THE SOUND ON MAIN GROVE WHARF & BLEECKER BRICKYARD AT MERCER PARK II

LAKESIDE LOFTS JEFFERSON EASTSHORE GABLES WATER STREET

WATERWALK

JEFFERSON ALPHA WEST

THE CAROLYN

THE MCKENZIE

JEFFERSON WEST LOVE II ALEXAN MAPLE ALEXAN KATY TRAIL MODERA HOWELL CYPRESS AT TRINITY GROVES II MAGNOLIA ON POLLARD

VICTOR PROSPER

4

ASPIRE AT PRESTON TRAIL

PALLADIUM GLENN HEIGHTS

4

TERRA LAGO

HARBOR URBAN CENTER THE TOWERS AT BAYSIDE

NOVE AT KNOX 4600 ROSS AVENUE ENCORE SWISS AVENUE THE GABRIELLA NOVEL DEEP ELLUM

Try our location on for size.

THE PARC AT WINDMILL FARMS

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 find success in McKinney. Discover how McKinney can be the gateway to your business future.

NOVĒ AT KNOX

SIZE: 310 units LOCATION: Dallas DEVELOPER: Southern Land Co. DETAILS: Construction is underway on the 19-story project at 3031 Oliver Ave. in the Knox-Henderson neighborhood. It will include 41 junior suites, 159 onebedroom apartments, and 90 two-bedroom apartments. On the building’s 18th and 19th floors, another 16 penthouses are planned.

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MAIN SHOREVIEW STREET VILLAGE THE ASH AT THE BRANCH ALEXAN LOWER GREENVILLE

AMBASSADOR NOVEL BISHOP ARTS

CLARK RIDGE CANYON

HARMONY HILL II

THE MANSIONS AT BAYSIDE HARPERS BAY AT THE SOUND

VILLA RITAGE PRAIRIE GATE

WINDING CREEK T THE PRESERVE

DOMAIN AT THE ONE FORTY

ABLON AT GALLERIA MUSE

AURA BLUFFVIEW

MANSIONS AT SPRING CREEK

NORTHSIDE AT THE WOODLANDS

AMLI ADDISON

MIDWAY URBAN JEFFERSON VILLAGE MERCER CROSSING I

THE TOWERS AT MERCER CROSSING

JEFFERSON RESERVE

IMT PRESTONWOOD

McKINNEY ECONOMIC DEVELOPMENT C O R P O R AT I O N McKINNEYEDC.COM INFO@McKINNEYEDC.COM 972-547-7651 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


DESTINATION: FUTURE. Enhanced mobile phone coverage throughout building

Wireless connectivity in all common areas

Parking Guidance System in new garage

Fully automated building systems

Smart Elevators with destination dispatch

#DestinationTCC

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

owned by institutional investors advised by

leased and managed by


S SCORECARD

FISERV HAS LEASED 75,000 SQUARE FEET OF OFFICE SPACE IN THE OFFICES ONE BUILDING AT FRISCO STATION

SCORECARD

PHOTO: FRISCO STATION

Fall 2018

Not only did large leases prove a strong second quarter for Dallas-Fort Worth, but the various submarkets reaping the benefits of new tenants were scattered throughout the region for office, industrial, and retail sectors. From Samsung’s Legacy Central consolidation to Rent the Runway’s Great Southwest debut, the entire region is welcoming newcomers. Data was provided by individual firms. Maps were provided by CBRE. BY LANCE MURRAY

ON-THE-GRO U N D I N S I G H TS

OFFICE

INDUSTRIAL

BROOKE ARMSTRONG

MIKE EBBITT

STEVE BERGER

KURT GRIFFIN

“Accessibility to top talent is vital for office tenants. Our deep and diverse labor pools are the envy of most major metro areas in the U.S., but the competition for talent in North Texas is fierce with corporate relocations, organic growth and historic low unemployment rates.”

“Companies are reevaluating their office space and location as a result of the tight labor market. They are choosing space that can be used as an asset to attract top talent rather than merely an expense. Whether that is an amenityrich building or a more urban location, tenants are willing to pay higher rates to accomplish this.”

“While costs are still favorable, there is steady pressure moving industrial lease rates gradually upward in the DFW area. Some submarkets, such as the north end of Dallas Fort Worth International airport, are experiencing more accelerated growth as demand outstrips supply. While the construction pipeline is still robust, our continued growth drives even greater demand.”

“Industrial lease rates are increasing for several reasons, including heightened demand and higher construction costs for raw materials and labor. Also, land prices have spiked due to a lack of available sites for new development.”

Executive Vice President, JLL

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Associate, Lee & Associates

Senior Vice President, CBRE

Executive Director, Cushman & Wakefield

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


S SCORECARD 5

OFFICE LEASES

3

1

4

2

4119,855 SF 19,855 69,624 SF 69,624 216,000 SF 216,000 535,731 SF 535,731 965,813 SF

MAP COURTESY OF CBRE RESEARCH

LARGEST OFFICE LEASES

1

NOKIA

SIZE: 350,000 square feet LOCATION: 3100 Olympus Blvd. TENANT REP: Randy Cooper of Cushman & Wakefield LANDLORD: Billingsley Co. DETAILS: Telecom giant Nokia signed on for 350,000 square feet of space at Cypress Waters. It will occupy 100,000 square feet in one building and 250,000 square feet in another.

2

METROPCS

SIZE: 115,583 square feet LOCATION: Richardson TENANT REPS: CBRE LEASING AGENTS: Tim Terrell and Chase Lopez of Stream DETAILS: MetroPCS, a prepaid wireless carrier brand owned by T-Mobile US, renewed its lease for 115,583 square feet of office space at Lakeside Centre II in Richardson.

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3

EATING RECOVERY CENTER

SIZE: 101,608 square feet LOCATION: 5120 Legacy Drive, Plano TENANT REPS: Tim Callahan and Liz Osborne of Cushman & Wakefield LANDLORD: Cawley Partners DETAILS: Parkside on Legacy II will be fully occupied by a Denverbased medical group. It’s one of the largest office leases of the year in the Legacy submarket.

4

MERIT ENERGY

SIZE: 101,306 square feet LOCATION: 13727 Noel Road, Dallas TENANT REPS: Jeff Ellerman and Scott Hobbs of CBRE LEASING AGENTS: Trey Smith, Lauren Napper, and Chris Taylor of Cushman & Wakefield DETAILS: The private oiland-gas company founded in 1989 has renewed its lease in this 13-story, Galleria-area office building.

5

FISERV

SIZE: 75,000 square feet LOCATION: Frisco DETAILS: The Wisconsinbased financial services technology company has leased 75,000 square feet of office space in the Offices One building at Frisco Station and has plans to shift 600 workers to that location.

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SEE YOURSELF IN FRISCO

Imagine living in Frisco, Texas. It’s 25 miles from DFW International Airport and downtown Dallas, and seven professional sports teams call it home. Imagine working with a highly skilled and educated workforce, and sending your kids to one of the most sought-after public school systems in America. Imagine being in the company of names like the Dallas Cowboys, Gearbox and Conifer. Can you see yourself in Frisco? You’ll fit right in.

Visit FriscoEDC.com to find out more.

Frisco Economic Development Corporation // @FriscoTXEDC 972.292.5150 FriscoEDC.com


S SCORECARD 5

INDUSTRIAL LEASES 4 3 41 63,000 SF

2

63,000 227,924 SF

1

227,924 555,321 SF 555,321 1,500,000 SF 1,500,000 6,054,840 SF

MAP COURTESY OF CBRE RESEARCH

LARGEST INDUSTRIAL LEASES

1

LIVING SPACES

SIZE: 858,445 square feet | LOCATION: Grand Prairie DETAILS: The California-based furniture retailer has leased the existing 882,445 square-foot-building at 1303 W. Pioneer Parkway that formerly was occupied by Restoration Hardware in Grand Prairie. It plans warehouse, retail, and restaurant space within the structure. Living Spaces is known for carrying the Magnolia Home line that is designed by Waco-based “Fixer Upper” star Joanna Gaines.

JOHN BREWER

2

BETTER HOME PRODUCTS

SIZE: 179,875 square feet LOCATION: Arlington TENANT REP: John Brewer of Transwestern DETAILS: Better Home Products has expanded its lease to 179,875 square feet of industrial space at the Great Southwest Distribution Center, 600 109th St., in Arlington.

3

CHASE INDUSTRIES

SIZE: 172,120 square feet LOCATION: Irving TENANT REPS: Colliers LEASING AGENTS: Kurt Griffin, Nathan Orbin, and David Eseke of Cushman & Wakefield DETAILS: Chase Industries, an Ohio-based manufacturer of custom traffic doors and specialty traffic door systems, has preleased the 172,120-square-foot Liberty Park GSW North Building 1 at 5350 Frye Road in Irving.

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4

ALLIANCE GLAZING

SIZE: 136,825 square feet LOCATION: Garland TENANT REPS: Nathan Denton of Lee & Associates Dallas/Fort Worth LEASING AGENTS: Chris Stout and Randy Touchstone of Jones Lang LaSalle. DETAILS: Alliance Glazing has leased 136,825 square feet of industrial space at 2901 W. Kingsley Road in Garland. Alliance is relocating its Las Colinas space to this facility.

5

CHELSEA BUILDING PRODUCTS

SIZE: 131,000 square feet LOCATION: Greenville REPRESENTATION: Chris Stout and Craig Phelps of JLL represented both Chelsea Building Products and the landlord DETAILS: The Pennsylvaniabased manufacturer has chosen Greenville for its second national production facility and has signed a lease for the 131,000-squarefoot industrial space at 1001 Ed Rutherford in Greenville.

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DALLAS THE URBAN CORE OF ONE OF THE WORLD’S MOST DYNAMIC AND DIVERSE ECONOMIES

AND RANKED THE #1 U.S. CITY FOR DOWNTOWN DEVELOPMENT POTENTIAL

#1 U.S. METRO FOR TALENT ATTRACTION COMMITTED TO A GREEN & SUSTAINABLE CITY 3 AIRPORTS & 5 MAJOR INTERSTATE HIGHWAYS HOME TO THE LARGEST URBAN ARTS DISTRICT IN THE U.S. INNOVATION HUB WITH 59,000 SMALL BUSINESSES DALLAS ECONOMIC DEVELOPMENT

CONNECT WITH US

17 FORTUNE 1000 CORPORATE HEADQUARTERS RANKED #1 U.S. METRO FOR FAMILY-FRIENDLINESS 4TH FASTEST GROWING U.S. METRO FOR TECH JOBS PERFECT 100 SCORE FOR HUMAN RIGHTS CAMPAIGN MUNICIPALITY EQUALITY SCORE #1 U.S. MARKET FOR LOCAL PUBLIC & PRIVATE INVESTMENT (214) 670-1685

ECODEVINFO@DALLASCITYHALL.COM

W W W. D A L L A S E C O D E V. O R G

Photos: Dallas Skyline-Urban Fabric Photography; Klyde Warren Park Book Kiosk, Office Workers, Southwest Airlines Headquarters-Kauwuane Burton Photography


P PANEL DISCUSSION

TRANSPORTATION

REVOLUTION AUTONOMOUS CARS. FLYING TAXIS. THE HYPERLOOP. INDUSTRY EXPERTS DISCUSS HOW THE FUTURE OF TRANSPORTATION WILL IMPACT REAL ESTATE IN DALLAS-FORT WORTH.

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P PANEL DISCUSSION Transportation is one of the most talkedabout, critical elements of modern urban life. How many times have you been asked, “How was your commute today?” It’s a topic that raises many questions, such as: How do we get around more quickly and safely? How can we reduce noise and our impact on the environment? The Real Estate Council held a panel discussion where five industry experts—led by the North Texas Council of Governments’ Thomas Bamonte—talk about what we’ll see next, from air taxis to autonomous vehicles to the Hyperloop. Bamonte and the experts tell us what to expect, and how it will impact real estate. THOMAS BAMONTE: Michael, what is Uber Elevate? Tell us more about the transportation technology. MICHAEL KAISER: Really, they’re air taxis—autonomous air taxis—and, eventually, they will fly you from point to point. They’re called eVTOL aircraft, which stands for vertical takeoff and landing. The Beck Group was tasked with designing a “vertiport” that would accommodate 150 takeoffs and landings per hour and that could be scaled to up to 1,000 trips per hour. It was a really interesting project. And when you’re given a project like that, you can dream and come up with some crazy architecture. Initially, you think, “This is in the future.” But then you realize, it’s actually very close. This is just five years out, according to certain projections. The Beck Group is an architecture and construction company. We wanted to understand the process and be realistic. We also wanted to design something affordable. We based our designs on the helipads themselves—the takeoff and landing spots. We looked at those geometries and the distances that they have to be from each other to accommodate simultaneous takeoffs and landings. That probe drove the design. We looked at a hexagon and thought about beehives. That [pattern] really generated the architecture, and we diagramed it. The design [called The Hive] is really modular. Another factor was, we were given seven minutes to recharge the vehicles. That’s a quick turn-around. I think each one of them can fly 60 miles on a charge. It was a tough problem to solve for: the ability to disembark, re-embark, and recharge in seven minutes. We also looked at how to mitigate sounds. The [eVTOLs] are not as loud as a helicopter, but they do make noise. We thought about the “last mile,” too. We had to think how to accommodate that—really, it’s idea of an airport— how airport dropoffs work. Once the eVTOLs land, a vehicle could pull up and take passengers that final mile.

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MEET THE EXPERTS MODERATOR THOMAS BAMONTE

NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS Bamonte is Senior Program Manager for Automated Vehicles for the North Central Texas Council of Governments, where he works on automated vehicle pilot programs and the regional data infrastructure for automated vehicles.

PANELISTS TRAVIS CONSIDINE UBER ELEVATE

Considine is Communications Manager for Uber in Texas, Oklahoma, and Arkansas. He’s primarily responsible for managing media relations and assisting Uber’s policy team at the state and local levels, as well as advancing Uber Elevate in North Texas.

STEVEN DUONG AECOM

Duong is Senior Urban Planner for the DFW Metro AECOM office. He works in transporation planning and urban design. He has managed a variety of projects, including the 100 Resilient Cities: Dallas plan and the North Texas Regional Joint Land Use Study.

MICHAEL KAISER THE BECK GROUP

As Director of Design for the Beck Group, Kaiser works collaboratively with Beck’s project teams in a variety of market sectors. “Maybe I’m best called an experience designer,” he says.

ROD SCHEBESCH STANTEC

As a regional business leader in western Canada, his teams pursue and deliver transportation infrastructure projects. Focused on smarter cities, he aims to find infrastructure efficiencies that positively impact the built environment.

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P PANEL DISCUSSION

UBER AIR VS. DRIVING TRIP COMPARISON DFW INTERNATIONAL AIRPORT TO FRISCO

SOURCE: UberAir

We provided the cost data … for the smaller one, we were looking at around $50 million for a total cost of construction. When the presentation was made about the initial study, I think $12 million was the number [brought up at the Los Angeles Summit in May] for a simple one that would be on top of a parking deck. Doing [that] construction at $50 million [for the smaller skyport version] may be a little cost prohibitive, so we’ll begin to drop those prices down to make it much more affordable.

BAMONTE: What’s your nomination for the transportation innovation that’s going to drive the most change in commercial real estate in the next 25 years? KAISER: Autonomous vehicles. For one thing, they’re going to reduce the requirement for parking. That’s a gamechanger because, right now, so much of what we design is around parking. BAMONTE: Speaking from the Council of Governments, and the ambition for both the public and private sector here in Texas, Uber Elevate gives us a chance to lead in the aerial space. We’re trying also to be a leader on ground automation as other new forms of mobility emerge such as Drive.AI and the EasyMile deployment in Arlington, as well as other efforts

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that you may hear about soon. The commercial real estate industry is starting to consider these new forms of mobility and building that into how they design and finance operations.

BAMONTE: Rod, moving to you next. Welcome from Canada. Tell us a bit about what Stantec is doing in the transportation space. ROD SCHEBESCH: As everyone is well aware, the future of driverless vehicles is exciting. At the same time, there are some pitfalls we have to keep an eye out for. Stantec has offices around the world. Here in Texas, we have about 750 people on staff, and we’re really excited about the market. There are a lot of growth opportunities as transportation intermingles with community development and land development. Stantec works on a wide range of projects, with all types of clients. About a year and a half ago, we completed a project in Dubai to implement CAV (connected autonomous vehicles) within the country. We also worked on the Wilmington station in Walnut Creek, California — the largest secured test bed in the U.S. The first self-driving shuttle in North America arrived there, and we tested there for about eight months before it moved on to a deployment. ACTIVE-AURORA is another test bed that we’ve been involved with since its inception about 8 years ago. We’re responsible for the infrastructure aspect of autonomous vehicles. We also started a project in Chamblee, Georgia—a suburb of Atlanta—at the beginning of this year. We went through a feasibility study and route selection, did some public engagement, procured a vehicle supplier, and now we’re moving to deployment. During the process, a large developer nearby heard about it. They were redeveloping an old GM assembly plant that had been demolished and became excited about the idea of connecting a shuttle to their development. Later, a community further down that line from Chamblee also expressed interest in something similar. So, there’s a trickle-down effect. I hope we see that in Frisco and Arlington as well. There are other projects such as Tennessee DOT, where we’re doing Traffic

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P PANEL DISCUSSION ROD SCHEBESCH

PHOTO: MICHAEL SAMPLES

Management Centers (TMC). Those are an important aspect of connecting people with technology—making sure you have that tied in to understand where the vehicles are and that they have the ability for communication from the vehicle to the TMC and back. We’re also doing a smart mobility plan for Nashville, again, connecting the different modes to provide a way for the area to deal with their mobility issues and get more efficiency out of existing infrastructure. Tied into that are “urban place” projects. That’s where we blend transportation with our community development roots at Stantec. The changes in transportation present opportunities to link the way people move around to community development. ... 100 Resilient Cities is another area we work in. We look at economic sustainability and the resiliency of communities. It’s a big part of our practice.

BAMONTE: Rod, you’ve got a great perspective—an international perspective. What do you see as the biggest driver of change in the commercial real estate market from transportation? SCHEBESCH: I’d say it’s the advent of car ownership starting to decline. While a vast majority of people can’t imagine not having a car, the reality is that it’s starting to happen. In some cities, it’s happening quite fast. If you look at your developments and think of the amount of money you spend in parking structures, I would strongly suggest that you rethink—or, at least, try to minimize—that as much as possible. ... Try to minimize structured parking and use surface lots that you can later redevelop when people start paying for their ride instead of paying for their vehicle. That’s happening at both ends of the demographic spectrum— millennials and the boomers. There’s going to be a lot of money spent on parking that’s not going to be needed, longer term.

BAMONTE: I think we all have a shared goal to make travel in the future faster than it is now. Travis, what are your thoughts on what’s going to be the driver of change in real estate over the next the next 25 years from Uber’s perspective. TRAVIS CONSIDINE: First, a bit about the Elevate initiative and the goal of what we’re trying to do here and with all of our partners. It’s an urban, on-demand, vertical take off-and-landing, flying ridesharing network—and we chose Dallas to be the pilot city in the U.S. and North America. There are five reasons for that. First, we have a clear opportunity here: We can serve dense populations of people

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  WHILE A VAST MAJORITY OF PEOPLE CAN’T IMAGINE NOT HAVING A CAR, THE REALITY IS THAT IT’S STARTING TO HAPPEN. ... THERE’S GOING TO BE A LOT OF MONEY SPENT ON PARKING THAT’S NOT GOING TO BE NEEDED, LONGER TERM. — ROD SCHEBESCH STANTEC

spread out over several urban areas. Whether it’s taking someone from here to Frisco, or to Plano, or to Fort Worth—there’s a clear purpose. Second, our ground business in Dallas, especially, is doing quite well. That gives us valuable insights on how people move around in North Texas in general. Third, we’re fortunate to have world-class leaders as partners, chief among them Hillwood, Bell Helicopter, and several of the architecture firms designing the vertiports. Fourth, we’re working very closely with senior leadership at Dallas Fort Worth International Airport. We have an opportunity for world-class integration there and also with NASA. NASA has a facility in North Texas where we’re running simulations on air traffic where the eVTOLs will go — both to and from — to test that.

BAMONTE: What’s your sense of what will be a big driver of change in commercial real estate? CONSIDINE: Just as skyscrapers and elevators were able to change how real estate maximized efficiency, using 3D transportation—getting off the ground—allows cities to use space more efficiently.

BAMONTE: Steven, tell us about your work at AECOM and on Hyperloop. STEVEN DUONG: At AECOM, we’ve been involved in a number of initiatives over the last several decades, most recently in the areas of emerging trends and transportation mobility—as well as smart cities and the future of urbanism right here in Dallas. I’m glad you mentioned 100

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P PANEL DISCUSSION

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TRAVIS CONSIDINE

PHOTO: MICHAEL SAMPLES

Resilient Cities. Our team worked with the city of Dallas on consulting. Dallas just published “Resilient Dallas,” the first holistic resilience strategy in the city’s history [this summer]. It was a kind of blueprint for Dallas to move forward to a new future, counting for the future of mobility and environmental concerns in a socially equitable way. Another major effort that we’ve been involved with recently is the Hyperloop of Texas initiative. Our team was part of the effort to win the Hyperloop One Global Challenge, which established Dallas-Fort Worth and Texas as one of the 10 first places in the world to focus on Hyperloop. If you’re not familiar with Hyperloop—and I always laugh when I describe it: It’s a next-generation mobility system in which you move into a pod that’s floating on magnets, inside a vacuum, zipping along to the next city at about 650 to 700 miles an hour. It still sounds great when I say that out loud. But it’s really what we’re looking at here. Theoretically, you could go from Dallas to Austin in about 19 minutes or so. You also may have heard that another version, Hyperloop One, was in Dallas-Fort Worth recently with some presentations. AECOM is working with several different firms on a concept that we call “hypermobility.” There are a lot of different technologies that will stretch our cities in interesting ways. What I think will be the most impactful technology on real estate is—and I’m not going to say the answer is Hyperloop—the concept of mobility as it’s surfacing. That doesn’t mean that people won’t own a car, although I do think most in the industry expect that to happen in the near future. Instead, it’s the idea of treating mobility as a commodity—something you can own, manage, and control—it’s a service, just like a Netflix is a service to all of us. It’s something you may subscribe to, and it operates in the background of your life. You can get access to mobility anywhere you’re sitting. You don’t have to worry about how to get someplace. You don’t have to worry about how much it costs: You just go. That impacts real estate. You can think about mobility as a service and as a trend. While you’re using an autonomous vehicle or a flying taxi or Hyperloop, you can do whatever you want in that vehicle because you don’t have to drive it. Transportation can recede into the back of your life. So what happens on the end points of your trip—the beginning and the

end—mean even more. When you boot up your phone, you have to tell it where to go. You won’t necessarily have that serendipitous experience of exploring. People have to know your development or business exists — and they have to want to go there. For them it’s not about a trip anymore, it’s about where they want to go. And that means placemaking and branding matters even more. Transportation is something that will happen in the background to get people from point A to point B. That’s a philosophical change in how we think about transportation and how we expect transportation to service us as citizens of a city. That’s going to take radical rethinking. That applies to every sector of urbanism, in general: placemaking, urban design, real estate, workforce development, economic development — everything. It’s the philosophical change itself that is a radical shift.

BAMONTE: Let me pick up on that. Pun intended, Uber is developing a vertical with Uber Elevates—literally—but also through shared vehicles and personal vehicles to things like bikes and electric scooters. What is the prospect for a shift to shared mobility versus vehicle ownership? What are the obstacles and challenges that Uber sees in making that transition? CONSIDINE: Our new CEO, Dara Khosrowshahi, has a clear vision to make Uber a multimodal platform from top to bottom. That means you can pull out your phone, and with the push of a button, you can get on a bike, on a scooter, in a car, or eventually, in an eVTOL. Let’s say you’re leaving work downtown, and it’s rush hour. Maybe you don’t want to hop in a car because you’ll just sit in traffic. So you grab a bike and ride it somewhere where it’s less densely populated. Then you can grab a car — or ride it to a vertiport. If, for example, you’re trying to get home to Plano, you could— still in the app—drop the bike off, get in an elevator, go to the top of the vertiport, and get in your eVTOL. That would take you to the Frisco station, and from there you could catch a ride in an Uber to get home. In the past, Uber has helped a lot of transit agencies do the first and last mile of a trip ... with this being fully multimodal, we can truly help get you from A to B.

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P PANEL DISCUSSION STEVEN DUONG

PHOTO: MICHAEL SAMPLES

BAMONTE: Let’s throw this to the panel. There’s some skepticism about the likelihood that a prototypical soccer dad—one with two kids in tow and a couple of bags full of equipment—would be willing to embrace that utopian vision. What’s the likelihood that North Texans—and folks in general—will move away from private ownership of transportation? After all, our ancestors had their own horse and buggy, and now that’s shifted to a private automobile. Why do we think that now is the time we’re going to see a shift to transportation as a service? SCHEBESCH: That’s a good point. By no means are we expecting everyone to put their car up for sale and move on. But, in reality, we’re talking about a transition period in the way we live our lives and how we get around in terms of mobility as a service. That’s moving forward in some parts of the world — very early stages are showing progress — but it’s going to take some time. It’s going to be a gradual transition. People are going to resist that change: They love their vehicles, and they have no intention of giving them up. But the implementation of connected vehicles—tying them to traffic management centers, and starting to develop the idea of a potential CAV (Connected Autonomous Vehicles) lane instead of a hot lane or a managed lane—is something that’s definitely in discussions. It’s a feasible option. It would allow those vehicles with the technology to be able to move forward. Toyota recently announced that all their vehicles are going to have connected vehicle onboard units as a standard feature across all models. There’s also a big move toward CAV technology in China. Really, the pace of that development is madness. The reality is that the technology is moving forward. The key is looking at how that’s implemented through this transition period. DUONG: My personal opinion about technology being adopted tends to be more optimistic. As generational changes happen, technology adoption also happens. Let’s talk about smart phones, for example. Spoiler alert, it was 2007 when the original iPhone was released. One decade later, I guarantee that almost every single person in this room has a smart phone in their pocket, and they get nervous when they accidently leave it behind. Technology is being adopted faster than ever.

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  IT’S NOT NECESSARILY OUR OPINION THAT PEOPLE LOVE THEIR CARS: IT’S THE FREEDOM THEY LOVE. TEXANS IN PARTICULAR. ... WHAT HAPPENS IF FREEDOM CAN BE GIVEN TO A POPULATION THROUGH SOMETHING OTHER THAN A VEHICLE? — STEVEN DUONG AECOM

With Uber, there’s a satisfaction of having someone —or something—else take you somewhere. You don’t have to worry about it. In our office at AECOM, it’s not necessarily our opinion that people love their cars: It’s the freedom they love. Texans in particular. And in Texas—with the way we design our cities—the car represents that. What happens if freedom can be given to a population through something other than a vehicle? What you might see is rapid adoption of something like an Uber or Lyft or any other kind of mobility as a service option. It’s not that far in the future, and I do think it’s going to happen sooner than later. In Helsinki, Finland—they launched a service called Whim last year. I think it was advertised as the first larger-scale mobility service model in the world. For the equivalent of [about] 600 U.S. dollars you get unlimited rideshare, unlimited car rental, unlimited transit, unlimited bike share—unlimited literally anything that can get you around the entire region of Helsinki. So you never have to worry about insurance, about maintenance, anything. You pay the fee, and you get unlimited access across the region. It’s doing really, really well. I think that [idea] will most certainly catch fire here in the U.S. We’ve seen technology adopted extremely quickly from 2008, forward. We should expect that same level of optimism here. KAISER: I have three daughters—two of them are

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P PANEL DISCUSSION

BAMONTE: Rod, you’ve talked about connected vehicles. Do you think that through electronic connections between vehicles, pooled rides where we share vehicles, and other techniques that we can squeeze more vehicles on existing roadways? Are we at peak roads? SCHEBESCH: I think we’re definitely approaching that. But there are development trends that have been going on for decades, and that’s not going to stop overnight. But I do agree that [technology and mobility options] will accelerate once they become more popular. I think the insurance companies will help to generate that. We haven’t talked about safety, but with the idea of going to a self-driving vehicle versus one that’s human driven, there’s a benefit you get from a safety perspective. … So I think there’s going to be a rapid adoption. Also, at the same time, there’s will still be some development. Not everyone is going to become an urbanist. I completely agree that this is [something of ] a generational thing, and that it’s evolving. ...I don’t know if politicians and governments have fully wrapped their heads around it yet, but the ability to free up [money] that’s spent in infrastructure and look at investing in sustainable infrastructure and technology is going to be a good opportunity, looking to the future.

BAMONTE: Steven, you were involved in the resiliency project for Dallas. Does greater reliance on automation in transportation advance resiliency, or does it expose us to a whole host of additional risks when you take humans out of the equation? DUONG: I’ll answer that a couple of different ways. If you’re looking at connecting vehicles in

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MICHAEL KAISER

PHOTO: MICHAEL SAMPLES

grown and driving now. They didn’t want a car [initially]. While I can’t imagine giving up my car, I do think it’s a generational thing. So maybe not everyone gives up their car, but if a family goes down to one car that’s still a tremendous reduction. As we look at how that impacts real estate, we’re trying to determine what that overall reduction will mean for the parking facilities. BAMONTE: Let’s do some public opinion polling here. Raise your hand if you would give up one of your vehicles if, for $5,000, you could have unlimited access to Uber, Lyft, scooters, everything else—basically offering mobility as a service? (Ed. note: There was a good showing of hands raised.) I think we’ve sparked a transportation revolution here.

a silo, I think we’re going to see a major spike in roadways. I don’t think we’re anywhere near peak roads. I say that for a couple of reasons which will help answer the resiliency question. First, people haven’t really considered that having autonomous vehicles means a greater segment of the population will be making trips. You won’t need a driver’s license anymore. Anyone of an age we think is reasonable can make a trip. The actual percentage of the population who will be making trips more frequently will expand. Second, throughout history, whenever we’ve made driving easier, we’ve built more roads and done more development. I don’t think that’s going to change. Let’s say our general comfort level for a commute is 45 minutes—and a lot of that is the pain of driving a long while. But if the drive to work was as comfortable to you as sitting in your PJs at home, you might drive a lot further. That means people are going to live further out, and that means more roads. Working with the City of Dallas on the Resilient strategy, we took a systems design approach. We looked at the major factors that are fluid in the cities, understanding that transportation is, in some ways, the building block of the modern city size. We used to design cities based on a human scale, the streetcar scale, then the automobile scale. What happens when we get to the CAV (connected automated vehicle) scale? There’s an argument that more sprawling, far from developments, can be negative on us as a society—especially in terms of resilience and adaptation. That means letting these technologies go forth without really thinking critically about how to curb the effects could actually lead us down a less resilient, less sustainable path. Both the public and private sectors would be considerate of that. While we know these technologies have the ability to unlock potential and do great good, they also have the potential to do the opposite.

BAMONTE: What Steve is saying is something that keeps planners up at night. They have new transportation technologies, and they increase the centrifugal effects of development. So how might the private and the public sectors respond to make sure our cities flourish as opposed to continuing to sprawl out? SCHEBESCH: I agree that trips are going to increase, but I think also the efficiency

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P PANEL DISCUSSION THOMAS BAMONTE

PHOTO: MICHAEL SAMPLES

of the road traffic is going to increase. So the idea of getting more trips and more vehicles through platooning and connected vehicle corridors will help to complement a lot of the growth and those trips taken. And I think the electrification of

vehicle speeds is definitely moving forward and will become the norm in the future. From a sustainability perspective that will help. The key thing with that is electricity itself isn’t necessarily clean unless it’s generated from a clean source. So if you are burning coal or fossil fuels to generate the electricity you’re not helping much—in fact, you would probably be hurting the environment more. BAMONTE: Let’s do another crowd-source opinion polling to test Steven’s point. If you could— safely in your vehicle—watch crazy cat videos to your heart’s content on your commute, how would that extend your tolerance for commuting? Would you have a longer commute if you could have another screen, and you wouldn’t have to do the driving task? Raise your hand. Okay ... We’re seeing sort of a mixed result. Maybe there’s just an inherant half hour, right? KAISER: That eventually could benefit smaller cities and towns in Texas that people have moved away from. But I think people are always going to want gathering places and public spaces. That could reenergize our smaller cities because now more people might move there

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R ROUNDTABLE

because the commute from there is not that bad. So it could have a very positive effect. The other thing is the heat item effect of just how many parking lots we have and how much parking we have in general. For example, look downtown at the parking garages and parking lots. Once we get rid of those and convert them to either sustainable buildings or to park space that should have a positive effect on the cities.

BAMONTE: I think we owe the audience some sense of timing. It’s a hard question because we’re talking about multiple technologies from the Hyperloop to automated vehicles on the ground to aerial vehicles. When are these technologies coming? When are they going to be mature and have an actual “real life” impact on the commercial real estate market? CONSIDINE: For Uber Air we want to start testing in DFW by 2020 with full commercial operation by 2023. BAMONTE: Uber is also active in the ground automated vehicle space. Any thoughts on timing there?

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CONSIDINE: After the incident in Arizona we hit pause and have been reevaluating, but we plan to move forward. Timing-wise, I’m not quite sure. BAMONTE: You also recently announced a major partnership with Toyota. CONSIDINE: Absolutely, another strong partnership here in North Texas.

BAMONTE: Steven, the techno optimist, what do you say?

DUONG: I will say it two ways. In terms of a hardware perspective, I think the tech firms seem to be moving quickly. A version of Hyperloop One intends to have a working Hyperloop somewhere in the world by 2022. That may or may not be the U.S., but it’s something that they expect to have in the ’30s or ’40s. This is something we expect in the next half decade to a decade. It’s moving quickly, but there’s a lot of innovation coming to transportation that’s not built on moving dirt and building things. Building hardware is a lot of it, as is software and policy. It has the ability to move incredibly fast. If you look at what’s happened over the last five to 10 years in transportation, it seems the seas have somewhat parted in a lot of ways on both the federal and local level in terms of regulation on allowing this technology to take a step forward. I think that’s reflective of the pent up frustration that people have with just driving around. Everyone can relate to it. When new innovations come out, such as the Hyperloop, people tend to be more optimistic about it because they see it as, “Maybe this can make my drive much less miserable.” It seems to be a consensus that people know it’s an issue. We all want to address everyone’s benefit. So it’s time to make the policy happen, and that seems to be happening. KAISER: Think about the growth in Dallas-Fort Worth. The numbers that I have seen are staggering: We’re going to double in population size in the region by

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R ROUNDTABLE 2030. ... We’re going to need multiple modes of transportation to make it work. DUONG: Tom, you and I have talked about this: Making huge investments into our transportation infrastructure. The long-term forecasts are, quite frankly, still pretty terrible. We’re still seeing parking lots. And we’re spending billions and billions and billions of our tax dollars to sit on a parking lot on highways. We need a lot of open-mindedness to look at different solutions. Clearly what we are doing now isn’t working.

BAMONTE: Let me take a quick detour. Rod, your region includes Western Canada. Vancouver is pursuing a development path of no expressways in the inner city and has a heavy emphasis on public transit and bike/ pedestrian environments. It’s generated some of the highest real estate values in the world. Is that a model Dallas-Fort Worth should emulate, or is there something about our development patterns that lend us strength and the ability to compete globally? SCHEBESCH: I think the Vancouver scenario is a little bit unique. One of the things that’s driving a lot of that is the cost of real estate. And one of the attractions of Dallas is that fact that the cost of living is relatively low. So that’s a draw. In Vancouver to buy a tear-down, thousand-square-foot bungalow was 2 million dollars. What that’s doing is preventing young people from moving there— from being able to live and own real estate. So it’s changing development patterns. I think it’s sustainable, but it’s very expensive. So to replicate something like that and market it here—I think that’s a challenge. Having said that, there’s a demand for it. As we mentioned, for the millennials and the baby boomers, the future of much of the growth moving forward is around transit-oriented

development, and you’ve got a great team at work here.

BAMONTE: When are folks in DallasFort Worth going to feel the impact of transportation innovation? SCHEBESCH: If you think about the amount of infrastructure that’s been built over the last 50 years, it’s been a tremendous investment. As far as fully-autonomous vehicles, those are still a little ways away ... it’s very, very challenging. They’ll figure it out over time.

BAMONTE: Michael, you have the final word in terms of your assessment of timing with this transportation revolution we’ve been talking about. KAISER: It needs to happen. ... I think it’s going to happen quickly. The Real Estate Council’s Transportation Revoltion panel discussion was held in September 2018 at the Belo Mansion. The transcript has been edited for brevity and clarity by the editors of the DallasFort Worth Real Estate Review.

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F FEATURE

THE 121 CORRIDOR HAS BEEN 20 YEARS IN THE MAKING. NOW, IT’S BLOSSOMED INTO A NEW CBD IN THE DALL AS - FORT WORTH REGION.

BY BR ANDON J. CALL

PHO TO: M ICHA EL S A

MPL ES

To say the nearly 35-mile stretch from Dallas-Fort Worth International Airport to McKinney along State Highway 121 and the Sam Rayburn Tollway is a hotbed for development would be a bit of an understatement. The region, with its booming population, easy access to transportation, and high-density development has been transformed from what not long ago was considered the far-off suburbs to an urban oasis with plenty of restaurant, retail, and office amenities.

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A new breed of urbanism is taking hold in edge cities all along the corridor, helping to make the area a destination for the live-work-play triangulate that is vital in attracting and retaining talent. But it wasn’t always this way. Rewind back 20 years to a time when State Highway 121 was two lanes, and a four-wheel drive vehicle was needed to access some of the more remote areas of the corridor. An enterprising—and some might say foolish— David Craig purchased his first 1,125 acres in September of 2000 along 121, located, as Craig puts it, “on the edge of nowhere.” “When we started developing, people thought we were crazy to be building in Oklahoma,” says Craig. His eponymous Craig Ranch hugs the easternmost edge of the corridor and now includes more than 2,200 acres. The development is among those that started it all and spurred a building boom in the early 2000s for the region. “Now, all the projects we’re working on could be considered infill,” he says. Other early visionaries include Chris and Clay Bright, owners of Bright Realty Co., whose 2,500acre Castle Hills master-planned community near the Dallas North Tollway and Park Boulevard in Denton County. The land was originally purchased in the 1950s by the Bright brothers’ late father and former Dallas Cowboys owner H.R. “Bum” Bright for the family’s recreational use. Craig Hall kicked off construction at his office park in Frisco back in 1998 when the development didn’t even have a paved road that led to it. Twenty years later, the developer continues to add to

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F FEATURE his 162-acre park—now on his 17th building. Frisco’s HALL Park led the way for development along 121 and up the Dallas North Tollway, including The Star and Frisco Station—all part of the city’s Frisco North Platinum Corridor. Robert Shaw, CEO of Columbus Realty, is famous for incorporating walkability into his multifamily developments in the region, with projects along the corridor currently underway in Legacy West in Plano and Craig Ranch in McKinney. And finally, any conversation about 121 certainly must include visionary Fehmi Karahan’s name. Karahan’s 250-acre Legacy West is one of the most successful mixed-use developments in the country, attracting corporate headquarters and regional hubs such as Toyota, Liberty Mutual, JP Morgan, Boeing, J.C. Penney, and Pizza Hut, to namedrop a few. L3 Technologies, a major defense contractor, is the latest corporate relocation to the southeast corner of the Dallas North Tollway and State Highway 121 development, announced in August. “Some of us have been developing along this corridor for a very, very long time. They’d call us overnight successes—18 years later,” Craig jokes. Among the most recent projects completed at Craig Ranch is a 160,000-square-foot Independent Bank headquarters in the 1-million-square-foot Hub 121 office project. Overall, the development includes some 20,000 residents and 5,000 daytime employees. Craig says those numbers are projected to increase to 30,000 residents and 10,000 employees within the next five years. His Craig International has bought and sold more than 5,000 acres along the 121 corridor in the past 30 years, and he says that as the project reaches full buildout and his original vision is achieved, he will continue to look toward 121 for future development. “With Craig Ranch, I always asked myself, ‘What makes a community?’” Craig says. “What I was singularly focused on is creating a sense of home here, a sense of belonging and place. … I’ve been fortunate to ride the wave through economic prosperity and depression and finish what I started. It’s been a fantastic 18 years— and you can bet that I’ll continue to develop on the corridor. That’s how much I believe in it.”

CONNECTIVITY AND NAVIGABILITY

The first expansion of State Highway 121 and the tollway first opened in May 2006. Three

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WHAT’S NEW, WHAT’S NEXT HIGHLIGHTS OF PROJECTS & DEVELOPMENT IN THE 121 CORRIDOR

Lewisville Lake

T Col

Lewisville Flower Mound

He

Carro

Coppell Grapevine DFW INTERNATIONAL AIRPORT

FLOWER MOUND Realty Capital’s Class A Speculative Office In April, the town entered into an incentive agreement with Realty Capital to bring Flower Mound’s first large-scale Class A spec office building to the Lakeside Business District. The roughly $35 million project is for a 4-story, 120,000-square-foot, state-of-the-art office building.

Duke Realty’s PPG Industries Distribution Facility Duke Realty broke ground on a $25 million, 635,000-square-foot industrial building, which will be the new home to PPG Industries distribution operations. PPG will occupy almost 450,000 square feet, leaving just under 200,000 square feet available to lease.

Restaurant Row — the River Walk at Central Park mixed-use development Centurion American, master developer of the mixed-use River Walk and Central Park project, broke ground on its “restaurant row,” which is three buildings that all have patios overlooking the water. The developer recently announced six restaurants that will occupy them.

Lakeside Village Realty Capital received zoning approval for a 30-acre, $1 billion mixed-use project on the north shore of Grapevine Lake, just south of the Lakeside DFW mixed-use project. Lakeside Village will bring new residences, office, hotel, retail, and restaurant uses, as well as an amphitheater, community greens, and trails.

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F FEATURE

THE COLONY SCHEELS

Galaxy Theatres Ground has been broken on the more-than 85,000-squarefoot, 16-screen venue with a projected open date of Spring 2019 at the $1.5 billion Grandscape development. It will be Galaxy’s first location in Dallas-Fort Worth

The Colony SCHEELS says it will be the world’s largest all-sports store with 300,000 square feet of name brands under one roof. It will have more than 85 specialty shops that will provide a retail adventure for the sports enthusiast, the outdoor adventurer, and for those who seek an array of fashion and footwear. The store is expected to open in 2020.

FRISCO Hyatt Regency Stonebriar

McKinney

The 18-story, 303-room Hyatt Regency Stonebriar hotel has broken ground in Frisco at Stonebriar Centre. It will feature a parking garage, conference center, and a city library. The hotel developer is Sam Moon Group; the contractor is Brasfield & Gorrie; the architect is HKS Inc.; and Looney & Associates will manage the interior designs.

Fairview

Frisco Allen

The lony

Frisco Station Kansas City-based VanTrust Real Estate LLC announced that it will be developing its second office building in Frisco, The Offices Two, at Frisco Station. Construction on the six-story office tower began in October and is slated to be completed next year.

Plano

ebron

MCKINNEY Independent Bank Independent Bank Group Inc., the holding company for Independent Bank, is building a new corporate headquarters—a 165,000-square-foot, 6-story building—at the McKinney Corporate Center Craig Ranch. It will be McKInney’s tallest building.

ollton

ALLEN One Bethany Plaza One Bethany at Watters Creek, the 17-acre, multiphase, corporate office park adjacent to all the amenities of Watters Creek, saw two major office buildings open in 2018 and immediately saw strong leasing activity, including NETSCOUT Systems.

WatchGuard Inc. The provider of mobile video solutions for law enforcement opened its new world headquarters in June. The 140,000-square-foot, 2-story facility houses roughly 500 employees and a 43,000-square-foot manufacturing facility where its products are assembled.

CyrusOne The global data center REIT opened the first phase of their newest data center campus, a 340,000 square-foot center that’s the first step in a campus that will offer more than 100 megawatts of power. It’s expected to be a $1 billion dollar investment at full completion.

GRAPEVINE

LEWISVILLE

PLANO

Paycom Texas Operation Center

MIXED-USE Development company Bright Realty announced a $1.5 billion project for a massive mixed-use development called Realm at Castle Hills.

Timmons Group

The center will open on city property in Grapevine facing the 121 corridor. Several office buildings eventually will comprise the campus, with the likely build out to include up to 1,000 employees.

Gaylord Texan Resort & Convention Center Another 300 rooms are now complete, as well additional meeting space, making the hotel one of the largest in Dallas-Fort Worth at over 1,800 total rooms.

Peppa Pig Merlin Entertainment continues its family themed projects with the announcement of the first Peppa Pig entertainment venue at Grapevine Mills Mall.

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INDUSTRIAL PARKS East Group completed two buildings totaling 500,000 square feet that were fully leased. Majestic Airport Center completed about 750,000 square feet of industrial space and retained Kellogg’s regional distribution hub within one of the 1-millionsquare-foot facilities.

Riverview Crossing Along 121 Business, ML Realty completed a 121,000-squarefoot facility that is leased to Toyota Motors Sales LLC USA, a marketing and sales arm of the Toyota Motor Corp. At Lewisville’s Lake Vista Office Park at Sam Rayburn and I-35E, TIAA expanded into a second office building and Nationstar Mortgage also located in the office park.

A Richmond, Virginia-based civil engineering and technology firm has opened a North Texas office. The group has subleased office space at Legacy Town Center III at 5801 Tennyson Pkwy. in Plano.

Granite Park Plans are underway for a $3.5-million capital improvement project for upgrades that will start with better access between the existing office towers, the Hilton hotel and retail space. New pedestrian crosswalks and streetscape improvements are also part of the plan.

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F FEATURE

MONARCH CITY RENDERING: OMNIPLAN

years later, it was expanded again, running all the way from Coppell to McKinney. It was then that the tollway was renamed in honor of Samuel Rayburn, a former Texas congressman and the longest tenured Speaker of the House. Not only did this vastly improve the connectivity of the corridor, it also made transportation a key component—and draw—for the burgeoning region. “The 121 corridor has become the place to do business,” says Andrea Roy, economic development director for the city of Flower Mound. “It offers a rare combination of desired amenities, connectivity, and navigability. Its physical location allows businesses to attract workers from a uniquely broad radius. Very few places in the country can offer such an extensive list of positive attributes. Bottom line is that the area checks all of the boxes.” Highlighting the connectivity on the western edge of the 35-mile corridor is Dallas Fort Worth International Airport. The fourth busiest airport in the country controls 17,000 acres, with 6,000 acres specifically earmarked for commercial development. According to the latest quarterly Cushman & Wakefield industrial report, more than 15 million square feet of industrial product is under construction in DFW. The airport submarket has 6.1 million square feet of industrial product under construction during the third quarter,

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the most of any submarket in the metro, according to the report. The small community of Coppell is seeing a solid amount of industrial activity. It’s home to a recently opened 2.4 million-square-foot Amazon fulfillment center. Grapevine, where state highways 121 and 114 converge, recently saw the addition of two new luxury dealerships where Grubbs Infiti, Park Place Jaguar Land Rover, and Audi Grapevine already exist. Along with Dallas Fort Worth International Airport, McKinney National Airport, which is on the eastern edge of the corridor, underwent a $16 million expansion and improvement project in late 2017. A recent study by the Airport Division of the Texas Department of Transportation Aviation found McKinney National Airport had a $212 million impact on the city last year—up nearly 400 percent from 2016. “The next big opportunity in Grapevine will be the opening of the new train station in downtown at Main and Dallas Road,” says Bob Farley, Grapevine’s economic development director. “Whether it is planes, trains, or automobiles, we’re very excited about the future of transit-oriented development here. Grapevine is uniquely positioned to lead the conversation about transportation, especially given our location on the crossroads on so many major highways (121, 114, and 183).”

‘DESTINATION SHOPPING’

Moving east — and square in the middle of the 35-mile stretch of the 121 corridor — is Warren Buffett-backed Grandscape, the $1.5 billion, 433-acre mixed use development in The Colony. It’s also where Nebraska Furniture Mart opened in 2015. David Palmer, executive vice president at Weitzman, says that led to an influx of more stores opening in the area. With IKEA less than four miles east near Frisco’s Stonebriar Centre, Palmer says the 121 corridor has become a must for home goods retailers relocating to the region. “What you see along 121 at Grandscape—especially since Nebraska Furniture Mart opened—is destination shopping,” he says. “Right across the highway from Nebraska Furniture Mart is

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F FEATURE

WHAT THE EXPERTS ARE SAYING HERE ARE SOME OF THE REASONS WHY THE ECONOMIC DEVELOPMENT LEADERS ALONG THE 121 CORRIDOR BELIEVE IT IS THE PREMIER PLACE TO DO BUSINESS IN DFW:

“Location and proximity to cities with growing populations and employment. The Sam Rayburn Tollway provides a direct link to the DFW Airport wherever you are along the corridor.” —NIKA REINECKE, ECONOMIC DEVELOPMENT DIRECTOR, LEWISVILLE

“All of the mixed-use developments that been announced along Highway 121 provide housing for a growing workforce and provide important infrastructure for future growth for cities along the corridor, like Allen.” —DAN BOWMAN, ECONOMIC DEVELOPMENT DIRECTOR, ALLEN

“Highway 121 offers a blend a state-of-art connectivity with an authentic community feel you can’t find anywhere else in the country.” —BOB FARLEY, ECONOMIC DEVELOPMENT DIRECTOR, GRAPEVINE

“Location, location, location.” —PETER TOKAR, ECONOMIC DEVELOPMENT DIRECTOR, MCKINNEY

“We’re a growing family entertainment destination, and the surplus of restaurant and retail options are unparalleled.” —KERI SAMFORD, ECONOMIC DEVELOPMENT DIRECTOR, THE COLONY

“Quality education. We’re educating tomorrow’s workforce. Some of the highest-performing schools in the state are located right here.” —RON PATTERSON, ECONOMIC DEVELOPMENT DIRECTOR, FRISCO

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one of the country’s busiest Rooms To Go stores. There’s also a Mattress Firm right there, and I dare you to try to find a spot in that parking lot on a Saturday afternoon. You won’t find it.” Destination shopping 10 years ago meant looking no further than Frisco’s Stonebriar Centre. It was a particular turning point in the history of the 121 corridor, spurring expansion of the Sam Rayburn Tollway to accommodate shopping traffic and creating a robust tax base for Frisco to drive economic expansion to the city. Destination shopping on the corridor today has paved the way for more entertainment options, like Topgolf, which opened its 121 location in April 2014, and, more recently, Hawaiian Falls water park in The Colony. The largest multifamily redevelopment right now nearest Grandscape and located on the north side of the highway across from Legacy West in Frisco, is the $850 million, 60-acre, 1,000-unit Spring Creek Frisco 45. There’s also 80,000 square feet of retail and a full-service hotel planned for the development, which will be constructed around a series of parks and open spaces.

‘CROSSROADS OF COLLIN COUNTY’

The easternmost border of the corridor sees the convergence of Highway 75 and the Sam Rayburn Tollway, known by many as the “Crossroads of Collin County.” The quadrants include the cities of McKinney, Frisco, Allen, and Plano. Most recently announced along the southeastern quadrant in Allen is the master-planned Monarch City, a 270-acre development with plans for 9 million square feet of Class-A office, retail, and residential space, plus a luxury hotel. The Howard Hughes Corp. is the developer. Mark Bulmash, the senior vice president overseeing the project for Howard Hughes, says the development will redefine the urban-suburban experience. “It wasn’t too long ago that you escaped the city for good schools to raise a family, with homes on big lots with large yards,” he says. “That all is changing. With Monarch City, we’re looking to attract 20,000 jobs to the development. There’s potential to have 600,000 to 700,000 people in the area, which is amazing.” He says Monarch City doesn’t have a timeline for development, and that the company is currently shopping the market for its first corporate tenants. However, Bulmash did say that Monarch City’s development would be focused on maintaining the natural ecosystems with more than 20 acres of parks, ponds, and hike and bike trails. “There is a creek that runs through the land that will make for great pathways and hiking,” Bulmash says. “When you think of North Texas, you might think of flat land. But that’s not the case. We’re excited to include the natural topography of the land into our future designs for Monarch City.” Bulmash says the name of the development derives from the area’s natural location in line with the migratory monarch butterflies that can be found in the region. “There was this beautiful ‘aha’ moment for early-day founders of the area,” he says. “Butterflies symbolize fertility and we think it is such a great metaphor for the area’s farming heritage. … If you think about it, just like butterflies’ migration, we’re on the path of development. If you look at how developments are heading east along 121, we’re right in the natural path.” It has all added up to form a region that is “coming into its own,” says Scott Polikov, the president of Gateway Planning, who did much of the ground work for rezoning in many of the cities along 121. “I think 121 is one of the coolest urban-suburban corridors in all of the country.” Polikov says. “David Craig set the stage and had the courage to say that this area could be an urban-suburban destination. Today, because of that vision, it is.”

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PA I D A DV E RT I S E M E N T

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A ANATOMY OF A DEAL

HIDDEN

RIDGE

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VERIZON’S $1B, 5G-ENABLED DEVELOPMENT IN IRVING RISES FROM ITS RANCHING ROOTS

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A ANATOMY OF A DEAL BY NICHOL AS SAKEL ARIS

On former ranch land that stood undeveloped for decades, Verizon is replacing sagebrush and grass with 5G technology, innovation labs, and high-rise buildings made of stone and shimmering glass. It’s the Hidden Ridge development, Verizon’s $1 billion, 150acre mixed-use project in partnership with real estate development and investment company KDC. The project is rooted in North Texas ranching, but is a rising symbol of the future as one of the region’s most important real estate projects. Hidden Ridge is close to the heart of KDC Chief Executive Officer Steve VanAmburgh, who started his working life on the ranch run

the Carpenter family. Now, he’s helping wrangle its future as an innovative tech- and transportation-driven real estate development. The development will have its own DART station, and will corral innovative amenities such as the latest in communications technology, coworking spaces, incubators, and high-tech apartment homes within a mixed-use roundup of retail, residential, and roughly 3 million square feet of office space. Verizon owns the land wedged between John Carpenter Freeway and MacArthur Boulevard, and had the vision, but it needed a big corporate tenant to kickstart the project. “Since the creation of Verizon, that land has sat undeveloped

RENDERING: GENSLER

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A ANATOMY OF A DEAL with no real plans for its use,” Verizon Realty Vice President James Tousignant says. About three years ago, Verizon decided it was time to expand in North Texas with a new office campus. Verizon wanted to be part of the philosophical shift away from traditional suburban office campuses in favor of the modern mixed-use developments, Tousignant says. That was the genesis of Hidden Ridge. “We wanted to bring the benefits of an urban lifestyle to the suburbs,” Tousignant says. “We thought it would be important to create an environment that’s attractive to employees—and prospective employees.” Verizon partnered with DART to put in a new Orange Line train station and started developing plans for retail, residential, and an innovation campus where small businesses and startups could work alongside Verizon on the latest technology. At the same time, VanAmburgh was helping energy company Pioneer Natural Resources find a site for a new headquarters. Irving-based Pioneer was interested in several sites in multiple cities. Ultimately, KDC and Pioneer decided Hidden Ridge would be the ideal spot for the oil and gas driller to build a 10-story glass-and-stone tower with a seven-story parking garage. KDC bought the land for the tower and will lease it to Pioneer, which will receive $6 million in incentives. In September, KDC hosted a topping out ceremony for the building and celebrated 1 million manhours of work on the project. Austin Commercial is the general contractor on the development, and Gensler is the project

architect. Duda|Paine Architects, HKS, and Corgan Associates are members of the design team.

LEVERAGING 5G TECHNOLOGY

With Verizon in charge of the development, cutting-edge telecommunications technology will be a key component. Through the innovation campus, Verizon plans to offer space where businesses can showcase the newest technologies and offer space for the public to come in and tinker with their own ideas. “We’re putting the pieces together to create an incubator space for small RENDERING: GENSLER

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RENDERING OF PIONEER NATURAL RESOURCES’ NEW HEADQUARTERS AT HIDDEN RIDGE

A ANATOMY OF A DEAL HIDDEN RIDGE KEY PLAYERS DEVELOPERS: VERIZON & KDC GENERAL CONTRACTOR: AUSTIN COMMERCIAL PROJECT ARCHITECT: GENSLER DESIGN TEAM: DUDA | PAINE ARCHITECTS HKS CORGAN ASSOCIATES

RENDERING: KDC

developers and small business to work with Verizon to create technologies that will ride on the new 5G technology,” Tousignant says. “We’re going to ‘light it up’ with 5G. We’re going to have all the infrastructure in place ready for people to experiment on.” Verizon will partner with the apartment home builders to roll out the latest smart home technologies. Retail shops will utilize the latest in smart advertising and pedestrian monitoring. The streets will be a testing ground for smart city technology, such as street lights. The 5G technology will extend to the 2-acre park, too, which he envisions being similar to Dallas’ Klyde Warren Park in its programming. It will feature entertainment venues, an education pavilion, water features, and the latest technology. “The innovation hub is integrated into the retail and public space—it’s woven through the lifestyle core,” he says. “A lot of people think it’s unusual for Verizon to be involved in a real estate development. But to us, it’s core to the business with the opportunity to create this living laboratory for developing technologies.” Verizon is also in talks with coworking giant WeWork to open a location near the innovation hub.

HOW VERIZON CAME TO OWN THE LAND

Verizon’s predecessor, GTE, actually built the existing office at the southeast corner of John Carpenter Freeway and Hidden Ridge in 1990. At one point, GTE was going to relocate its Connecticut headquarters to Irving but that deal fizzled when the Bell Atlantic merger happened. But GTE—and, later, Verizon— held on to the land. The lynchpin for making this whole deal happen, though, was Pioneer. Verizon sold KDC the land, and KDC contributed the financing to get the longterm lease with Pioneer. Verizon and KDC then created a partnership that will be

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the landlord for Pioneer’s headquarters. The 1-million-square-foot building is scheduled to open in the first quarter of 2020. “Verizon and Pioneer, to have those best-inclass brands be a part of establishing a development core for the future, is really exciting for Las Colinas,” says Beth Bowman, president and CEO of the Las Colinas Chamber of Commerce and Irving Economic Development Partnership. “It represents a new era in urban planning. This truly is a live, work, and play, transit-oriented development. Verizon had the vision to turn Mr. Carpenter’s former ranch land, which they owned, into the workplace of the future.”

HOPPING ON THE TRAIN

The DART rail station is funded and scheduled to be ready when the Pioneer headquarters opens. The Carpenter Ranch station is planned near Meadow Creek Drive and Green Park Drive on the northern edge of Hidden Ridge. That station will be about 15 minutes, or three stops away, from Dallas Fort Worth International Airport’s DART station at Terminal A. Access to a rail line means that Hidden Ridge will be a transit-oriented development, much like the Cypress Waters development around

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A ANATOMY OF A DEAL QUICK FACTS THE 150-ACRE HIDDEN RIDGE PROJECT WILL INCLUDE:

1.5 MILLION SQUARE FEET OF CORPORATE OFFICE SPACE 200-ROOM HOTEL 1,200 RESIDENTIAL UNITS 80,000-SQUARE-FEET OF RESTAURANT AND RETAIL SPACE AND GREEN SPACE.

“R E TAT HI LE AI NNNDOPVATU B ILOI CN SHPAU BC IES—IINTT’ SE GWROATV EE ND ITNHTROO UT HG EH THE LIFESTYLE CORE. A LOT OF PEOPLE THINK IT’S U N U S U A L F O R V E R I Z O N T O B E I N V O LV E D I N A R E A L E S TAT E D E V E L O P M E N T. B U T T O U S , I T I S C O R E TO THE BUSINESS WITH THE OPPORTUNITY T O C R E AT E T H I S L I V I N G L A B O R AT O R Y F O R DEVELOPING TECHNOLOGIES.

— JAMES TOUSIGNANT, REALTY VICE PRESIDENT, VERIZON

PIONEER’S 27-ACRE HEADQUARTERS

INCENTIVES THE INCENTIVES OFFERED BY THE CITY INCLUDE: ■ A 75 percent tax abatement on real property taxes for 10 years if the campus taxable value is $100 million or more.  ■ A 75 percent tax abatement on personal property taxes for 10 years if the business personal property value exceeds $15 million.  THE INCENTIVES FOR PIONEER ARE:  ■ A cash grant of $545,000 made in three payments over seven years of meeting certain obligations.  ■ A cash grant of $160,000 made in three payments at the rate of $500 per new job with an average salary of $90,000 up to 320 new jobs over a 10-year period. 

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Lake Carolyn just a few miles away. The mixture of apartments with ground-floor retail, offices, a hotel, and a park that’s reminiscent of Klyde Warren Park in Dallas will complement the train station and Pioneer headquarters, Tousignant says. The first two apartment communities will have a total of 800 units. Hidden Ridge is zoned for a total of 1,200. Tousignant says these apartments will have hotel-like amenities. The western end of the project closer to MacArthur Boulevard will have more traditional big box store retail, though the architectural style will carry over from the rest of Hidden Ridge. That center will have a Verizon retail store, of course, and a Starbucks. Construction is scheduled to start in 2019.

A 50-YEAR HISTORY COMES FULL CIRCLE

For VanAmburgh, overseeing this project is a great honor because of his close ties to Hidden Ridge’s history, present, and the future of Las Colinas, he says. As a teenager, VanAmburgh spent summers working on the Carpenter Ranch, a sprawling, working ranch in North Irving. Today, that land, and the Carpenter family, are known for the Las Colinas development. But in the 1960s, there was no Las Colinas—only the El Ranchito de Las Colinas—or “The Little Ranch of the Hills.” Ben Carpenter, a World War II veteran and legendary developer, needed help at the ranch, so he asked his son, John Carpenter III, then a teenager, to enlist his school friends, including VanAmburgh, to work there. “It was a commitment you had to make for the entire summer,” VanAmburgh says. “It was working outside building fences, hauling hay, cutting grass, painting fences. Just doing all sorts of ranch work. We worked on cows from time to time.” The Carpenter family also gave him his first job after college at Southland Financial, where he started leasing and marketing properties in the burgeoning Las Colinas development. “I thought it was so neat. If you think about it, from 14-years-old to 64, I’ve touched that site,” VanAmburgh says. “I’ve had some custodial responsibility for almost 50 years.”                                                  FA L L 2 0 1 8


for making Giving Gala such aa success! Your hard work and for making Gala such success! Your hard work and for generosity making Giving Giving Gala such a success! Your hard work and makes the Dallas Catalyst Project aa reality! generosity makes the Dallas Catalyst Project reality! generosity makes the Dallas Catalyst Project a reality!

Volunteer Impact Award Volunteer Impact Award Volunteer Impact Award Elias Bahar of Balfour Beatty Construction Elias Bahar of Balfour Beatty Elias Bahar of Balfour Beatty Construction Construction Legacy Leaders Impact Award Legacy Leaders Impact Award Legacy Leaders Impact Award Initiative Mayor Mike Rawlings and the GrowSouth Mayor Mayor Mike Mike Rawlings Rawlings and and the the GrowSouth GrowSouth Initiative Initiative presenting sponsor presenting sponsor presenting sponsor spotlight sponsors spotlight sponsors spotlight sponsors

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NEW HOTEL PROJECTS ARE CROPPING UP ACROSS DALLAS-FORT WORTH, BRINGING WITH THEM INNOVATIVE CONCEPTS THAT WILL KEEP THE NORTH TEXAS HOSPITALITY SECTOR MOVING FORWARD. BY DAVID KIRKPATRICK

Hotels are booming in North Texas. And Texas is dominating the sector. Dallas, Houston, and Austin all ranked in the top five among U.S. cities with the most hotels projected to open in 2017, according to industry research company STR. That projection is the best evidence of the strength of the hotel market in North Texas where occupancies are well above the long-term average and demand for hotel rooms is increasing. “New hotel construction is predicated by strong occupancies and rates. To that extent, it’s the strength of the market causing new hotel developments, which is positive for the market,” says Jeff Binford, director South Central Region and practice leader, CBRE Hotels Advisory and Capital Markets. “Since the hotel markets have shown sustained occupancies over a long cycle, new hotels are being built.”

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RENDERING: MARRIOTT

HOTEL BOOM

PHOTO: CANOPY

I INNOVATION: HOTELS

CANOPY

AC HOTELS AND RESIDENCE INN BY MARRIOTT

The increase in Dallas-Fort Worth hotel projects began in earnest in 2016, but became more significant in 2017, and is expected to run through 2019 before new development begins to slow down. One trade-off is that occupancy rates may go down, but Binford says the demand for new hotels remains strong, and occupancies are expected to settle in the mid-60 percent range, a figure ahead of long-term averages. Binford added average rates are also expected to rise, which would result in positive revenue per available room (RevPAR) increases. “Overbuilding in the hotel sector is the exception rather than the rule and not expected in North Texas,” Binford says.

IT’S ALL ABOUT THE ECONOMY

Basic business indicators offer a roadmap to the strength in hotels, says David Pickus, director of Business Development-Market Research at PWI Construction Inc. He points to strong job creation, as well as elevated consumer and business confidence, as factors in the increase in travel to North Texas. Hotel construction is supply keeping up with the increased demand. Pickus added the recent tax reform passed by Congress, including the 1031 Exchange, mortgage interest deduction, new depreciation rules, and 20 percent pass-through deductions— combined with the North Texas economic climate—makes hotel investment an attractive option.

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I INNOVATION: HOTELS

RENDERING: THE STATLER

THE STATLER

“THE DFW HOSPITALITY SECTOR CONTINUES TO BE ONE OF THE NATIONAL LEADERS, BOTH IN ACTIVITY AND OPERATING PERFORMANCE.” — DAVID PICKUS PWI CONSTRUCTION INC.

terms of the continued growth of the area as a leisure and business destination.

LIFESTYLES AND EXPERIENCES

“North Texas hospitality construction is the result of the tremendous economic climate. Positive corporate activity including office and industrial absorption, the addition of over 120,000 new jobs, and core professional high-wage relocations are all fueling the growth,” Pickus says. “The region’s hospitality sector continues to be one of the national leaders, both in activity and operating performance.” New hotel development has economic impacts beyond real estate and construction. The millions in tax dollars generated by North Texas hotels translates to tax relief for residents of Dallas and surrounding communities, says Traci Mayer, executive director, Hotel Association of North Texas. Per VisitDallas, hotels generate over $1 billion in room revenue annually along with hundreds of millions in ancillary food and beverage and associated revenue collected. In the fourth quarter of 2017, the Texas Workforce Commission found 164,827 people—9.7 percent of Dallas County’s workforce—were employed in the tourism and hospitality industry. “Dallas has seen a significant growth in hotels and tourism over the last three years, and we expect to see that trend continue over the next two to three years with new hotels coming into the market every month,” Mayers says. That continued increase in supply can help to offset additional tax burden to residents— and generate more direct and indirect job opportunities within the hospitality industry, he notes. Mayers is bullish on the future of North Texas in

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PHOTO: MICHAEL SAMPLES

THE LORENZO

Catering to lifestyles, with larger hotel companies featuring lifestyle brands, is a key hotel trend, says Pickus. He described trends in lifestyle focus for new projects and renovations including: appealing to millennials with easy check-in; personal interactions and gourmet dining; appealing to tech-savvy travelers with mobile check-in and apps; appealing to healthand wellness-conscious guests with yoga, dining choices, exercise and air purification; and offering a seamless technology experience through digital concierge services and door locks. The lifestyle trend in hotels is closely tied to the idea of creating an experience for guests. “Travelers are looking for more of an experience than just a place to lay their head. They want to make memories and have ‘Instagrammable’ moments,” says Craig Smith, vice president of brand development, Peabody Hotels & Resorts. The Peabody, known for its famed ‘March of the Ducks’ at its flagship hotel in Memphis, Tennessee, is coming to Texas with a new project in Roanoke. Binford agrees with both the lifestyle and experience trends, stating that the industry is seeing lifestyle hotel developments with more on the horizon. “Not to be confused with hotels oriented for just millennials, today’s traveler is not only seeking accommodations, but experiences,” he says. “Coupled with social media and the sharing economies, including Airbnb, developers are seeking to provide experiences for their guests—whether it be through location attributes, unique services, facilities, or amenities.”

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I INNOVATION: HOTELS

The onward march of technology is probably the strongest ongoing trend in hotels. Keyless entry and easy check-out have been industry standards for years. Now, artificial intelligence algorithms are increasingly driving the guest experience from behind the scenes and, for the last few years, major hotel brands have been testing in-room smart speakers like Amazon’s Alexa-powered devices and Google Home. The Peabody’s Smith says it is “keeping a very close eye on technology trends” to provide guests a more personalized experience. The brand’s main focus is on its networking infrastructure to offer superior internet speeds with the ability to scale, but it’s also looking into tech, ranging from energy management to Bluetooth-enabled door locks to a branded app that will allow guests to bring their own content solution for in-room entertainment. Branded custom apps have become an expected feature for hotel brands as guests become more technologically sophisticated. Dallas-based digital agency Bottle Rocket has a number of global hospitality clients, including its initial hospitality client, Starwood Hotels & Resorts. The agency created the Starwood Preferred Guest mobile app prior to Starwood’s acquisition by Marriott. Overall, hotel apps are typically a combination of loyalty programs, transactions, and enhanced capabilities for those Bottle Rocket’s Director of Strategy and Design Greg Flory calls “connected customers.” Technology is being used to enhance the guest experience, says Flory, and while tech’s biggest impact so far has been making booking more accessible and immediate, the trend is toward improving the actual on-property guest experience. This includes capabilities such as keyless entry via a mobile app and voice control via smart speakers. Flory also sees an increase in using technology to help staff offer a more personal and continuously connected experience for guests through knowing more about guests and their preferences. “Where brands have a real opportunity to delight guests is in utility and convenience— enabling people to do things more easily or efficiently than traditional methods,” Flory says. “Can you remove friction from the travel process and make my life easier on the road? How can we remove ambiguity and uncertainty? ‘Is my room ready? Can I stay a little longer? What are my food options when I get in late tonight?’”

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RENDERING: VIRGIN HOTELS

THE TECH EFFECT

VIRGIN HOTEL - DALLAS

“CONNECTED CUSTOMERS ARE STARTING TO HAVE EVEN GREATER EXPECTATIONS IN REGARD TO TECHNOLOGY DURING TRAVEL.” — GREG FLORY DIRECTOR OF STRATEGY AND DESIGN, BOTTLE ROCKET

Accomplishing this means hotels will have to use technology to surface the right information, at the right point in the journey, and provide travelers with a select range of choices that feels curated and prepared for them personally. That’s how tech can improve the experience regardless of the guest’s expectations, Flory says. He adds: “I do believe that connected customers are starting to have even greater expectations in regard to technology during travel. Whether or not there is broad receptivity to vocal interfaces like Amazon’s Alexa, it’s safe to assume that mobile and other digital ecosystem connections will be considered table stakes by customers.”

PROJECTS EVERYWHERE

There’s no shortage of projects around North Texas that illustrate exactly how much the hotel sector is booming. The Peabody is bringing its famous marching ducks to Roanoke, Deep Ellum has a new hostel, and new construction repurposing existing buildings and renovations abound across the region. Some standouts, according to CBRE’s Binford, include the Virgin Hotel, which he describes as a unique concept in an emerging market that could “forever change the Design District,” as well as the Pittman Hotel—slated to open in 2020—as part of a mixed-use development that will similarly forever change Deep Ellum. Other notable projects Binford cited are the reopening of the Statler Hotel, the conversion of the AC Hotels and Residence Inn by Marriott, and the

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I INNOVATION: HOTELS INNOVATIVE SPACES

CBRE HOTEL UNIT TURNS TO DALLAS DALLAS

HOUSTON

THE STATLER And generally speaking, Dallas is more diverse than Houston, which allows CBRE Hotels Advisory to provide a more stable practice, according to the company. Both cities have great hotel markets. It was just a decision long overdue to be close to the client base.

The downtown hotel originally opened in 1956, closed in 2001, and was nearly demolished in 2003. But Centurion American Development bought and renovated the now-reopened hotel as the largest tax credit project in Texas.

PHOTO: MICHAEL SAMPLES

THE LORENZO

The best way to describe the 237-room Lorenzo Hotel is to say it’s unique. Rising above The Cedars neighborhood near downtown Dallas, the hotel has more than 600 original works of art.

RENDERING: KDC

Texican Court Hotel in Irving as a lifestyle concept that “transforms guests to a different time and place.” Downtown hotel development is particularly significant, Binford says. “Downtown hotels appear to be performing well, attracting new travelers to downtown. As the buildings and their areas are redeveloped, more residential is enticed to the areas, requiring more residential retail support,” he says. PWI’s Pickus also mentions AC Hotels’ project and The Statler. He sees The Statler conversion as part of a nationwide trend of bringing back historic hotels. “The history of the hotel, along with the new design, make it an attractive option for someone coming to Dallas either as a hotel guest or looking for a residential component. People can feel a connection to the grand hotels of the past and still get the contemporary conveniences of today,” Pickus says. “The Statler renovation is similar to those at the Eden Roc and Fountainbleau in Miami Beach, and Stanford Court in San Francisco.” The sheer number of projects in North Texas is a great economic indicator for the area because, as Binford explains, hotels are developed based on need or demand. He says major corporate relocations to the West Plano/Frisco market have led to the need for new hotel rooms for business travelers. All of this generates business and office absorption, which translates into occupied room nights for the hotels. “Hotels play a much more significant role than often credited,” Binford says. “For many years, hotels were needed to support office and mixed-use developments, and frequently developed on out-parcels. Without a hotel, many times those developments did not occur. As real estate development has evolved, hotels are now major anchors for office and mixed-use developments, incorporating office, residential, retail, and entertainment uses.”

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PHOTO: MICHAEL SAMPLES

CBRE recently moved a regional hotels unit from Houston to Dallas. The Real Estate Review asked the firm the reason for the move. According to CBRE, the firm closed the Hotels Advisory practice in Houston and is now headquartered in Dallas. The Advisory practice was an office of PKF Consulting, which CBRE acquired in 2014. PKF maintained an office in Houston since the 1990s with an ancillary office in Dallas. But for years, the leadership was based in Houston. As CBRE began expanding the scope of Advisory services for our clients, they found Dallas has more hotel lenders, owners, developers, managers and franchise representation than Houston.

PITTMAN HOTEL AT THE EPIC

The 164-room hotel in Deep Ellum is being built within the existing Union Bankers Building, bringing a historical element to the planned mixed-used development.

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I INNOVATION: HOTELS

TEXICAN COURT

VALENCIA’S HOTEL IN IRVING GOES RETRO AUDIE MURPHY AND BRODERICK CRAWFORD STARRED IN THE 1966 MOVIE, “THE TEXICAN.”

THE TEXICAN COURT DESIGN BLENDS SPANISH MISSION-STYLE ARCHITECTURE WITH A SUBTLE LONE STAR STATE SENSIBILITY.

RENDERING: VALENCIA

THE RESTAURANT’S NAME, TWO MULES CANTINA, IS AN HOMAGE TO THE CLINT

AS YOU CHECK INTO THE HOTEL, THERE IS A TEQUILA BAR ACROSS FROM THE FRONT DESK TO SLAKE THE TRAIL DUST FROM YOUR JOURNEY.

RENDERING:S VALENCIA

THE ROUND SWIMMING POOL IN THE MAIN COURTYARD WAS INSPIRED BY THE GRAVEYARD SCENE IN “THE GOOD, THE BAD AND THE UGLY.”

BY DAVID KIRKPATRICK

Hotel trends are moving toward smaller rooms and an emphasis on communal lobbies, and while the industry’s conventional wisdom says you can’t build a new hotel with exterior corridors, John Keeling, executive vice president of Valencia a series Group, says the Houston-based hospitality company didn’t get the memo. For a photo tour go to DallasInnovates.com/ Valencia’s latest “court” concept hotel, the Texican Court InnovativeSpaces. in Irving’s Las Colinas business park, is a retro-style motor court with large 400-square-foot rooms featuring 9 ½-foot ceilings. Its first two court concept hotels include Austin’s Lone Star Court with a INNOVATIVE

SPACES

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quintessentially Austin German hill country feel — via its ranch house and barn along with an Airstream trailer as a secondary food spot. The second court concept was Cavalry Court in College Station, which took its inspiration from Texas A&M University Corps of Cadets’ Parsons Mounted Cavalry with the look of its Old West cavalry post. The Cotton Court, slated to open late next year in downtown Lubbock, will look like an old cotton gin, cotton exchange, cotton warehouses, and a dancehall. Currently, that space is a parking lot.

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GET YOUR KICKS ON ROUTE 66

The Texican Court space is built around two courtyards with one centered around the pool, and the other around an outdoor fireplace. Keeling says Valencia intentionally pays homage to mid-century designs that evoke a simpler, more innocent time and the heyday of Route 66 motor courts in the 1950s. The industry convention-busting design of Valencia’s court hotels is geared toward the traveler who is tired of the same old thing and looking for a fresh and original experience, Keeling says. The Texican Court isn’t a select-service hotel, though. It’s a full-service, upper-scale hotel disguised as a motel with its large rooms outfitted with luxury beds and full-sized Smeg refrigerator. Its a cool 1950s-style vibe. Location is crucial to any project and the Texican Court checks off Valencia’s guidelines for locating its hotels.

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RENDERING: PEABODY HOTELS AND RESORTS

“Each of our Courts hotels takes their inspiration from the local community,” Keeling says. The challenge was what to do for a court concept hotel in Irving, which is probably best known for its glass towers, he adds. For inspiration, Valencia looked back to the name of the origiDETAILS nal Carpenter ranch, El COMPANY NAME: Ranchito de las Colinas, Valencia Group a former ranch in Irving HQ: Houston, Texas with a Spanish name. CEO/FOUNDER (LOCAL): The ranch was the Doyle A. Graham, Jr. namesake of the Las TYPE OF CO.: Colinas development. Corporation “The Texican Court FOUNDED: 1999 is meant to look like an 2017 SALES/REVENUE: old Spanish mission Total revenues in 2017 that had been sitting were $75 million. there for several hunPRODUCTS: Upperdred years while the Upscale and Luxury independent boutique City of Irving grew up hotels. around it,” Keeling says. “There are two types of KEY PLAYERS architecture, with some DEVELOPER: Valencia Development buildings utilizing the Corporation flat roof adobe mission GENERAL CONTRACTOR: architecture complete Arch-Con Corporation with a bell tower, and ARCHITECT: Rottet the other reflecting the Studios and BOCA Spanish Colonial ranch Powell Architects architecture from a LANDSCAPE ARCHITECT: Christy Ten Eyck more recent era. The meeting space could have been the original chapel and bears a slight resemblance to the Alamo.”

THE PEABODY ROANOKE

THE REALIZATION OF A VISION BY DAVID KIRKPATRICK

DETAILS

The Peabody is bringing its almost 150-year history and famous marching ducks to the city of Roanoke as the anchor of the South Oak Street redevelopment. After several due diligence visits to the area, Craig Smith, vice president of brand development for Peabody Hotels & Resorts, says compelling factors became clear, including: Alliance Corporate Park as a demand driver for rooms and events, the area’s household income could support a luxury hotel, and the specific area was underserved in an upper upscale hotel market. “We also came to understand the brilliance of the city of Roanoke in the care they took in developing their downtown area in a very strategic way,” he says.

300

THE VALUE OF PLANNING

THE NUMBER OF DUCKS IN THE LOBBY BAR

The strategic development of Roanoke’s downtown can be traced to 2004. That’s when a number of players in the city began the process of creating an Oak Street redevelopment plan and rezoning with that process going into action in 2007. The idea was to reinvent the city center, says Scott Polikov, president of Gateway Planning Group, the lead master-planning firm for Oak Street and economic development consultant. Oak Street was redesigned to make it walkable. It was rezoned to make it easy for infill development that would enhance a “destination feel,” and the city spent $8 million in 2007 to achieve that goal, something individual property owners couldn’t have done on their own. The big picture was raising value in the Oak Street area while letting the area grow organically. Polikov says the redevelopment deliberately zoned the spot where the Peabody will be located to be a “significant development point” of Oak Street. For more on The Peabody Roanoke, go to DallasInnovates. com/InnovativeSpaces.

THE NUMBER OF GUEST ROOMS

25,000 SF

THE AMOUNT OF MEETING SPACE

15,000 SF

THE SIZE OF THE SPA/ ATHLETIC CLUB/POOL LOCATED ON THE ROOF

5

400

THE NUMBER OF ASSOCIATES WHO WILL WORK AT THE HOTEL THE PEABODY PROJECT WAS A “PERFECT STORM” WITH THE HOTELIER LOOKING FOR A MAJOR METRO LOCATION WITH AUTHENTIC HISTORIC CREDENTIALS, AND ROANOKE TEEING UP A WELL-DESIGNED STREET INFRASTRUCTURE THROUGH ITS OAK STREET REDEVELOPMENT, GATEWAY PLANNING’S SCOTT POLIKOV SAYS.

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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 in 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 decisionmakers can get a well-rounded understanding of all that the community has to offer. In addition to this, the department can help identify the right space for businesses, evaluate projects for public support, and open the doors for opportunities that abound in Addison and the North Texas region. With the support of our key stakeholders, the department can also get you connected in local business networks. ADDISON ECONOMIC DEVELOPMENT & TOURISM: 972.450.7076 14681 Midway Road Suite 200 Addison, TX 75001 addisoned.com

Located at the highest elevation in Dallas County and 20 minutes from the city center sits the beautiful, family-friendly City of Cedar Hill, where opportunities grow naturally. This bustling and diverse community of just over 45,000 people combines the best of bigcity living with natural beauty and outdoor recreation found nowhere else in the Metroplex. With its low cost of doing business, ample workforce, and attractive quality of life, Cedar Hill is experiencing an influx of both startups and established companies. Growth-minded companies are gaining handsome dividends from opportunities that exist throughout the City. In addition to the growing business climate, Cedar Hill corners the market on natural beauty. The Cedar Hill State Park and Dogwood Canyon Audubon Center allows residents and visitors access to the most uniquely diverse geological area, abundant wildlife, and the most breathtaking views in North Texas. To facilitate and energize relocation and expansion, Cedar Hill offers aggressive economic development incentives. CEDAR HILL ECONOMIC DEVELOPMENT 972.291.5132 285 Uptown Blvd, Bldg 100, Cedar Hill, Texas 75104 cedarhilledc.com

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The Colony is a growing city on the east side of Lewisville Lake, 25 minutes from downtown Dallas and 15 minutes from the Dallas Fort Worth International Airport, located along the Sam Rayburn Tollway. Home to approximately 40,000 residents with businesses and retail locating here daily, The Colony continues to maintain its “hometown” feel. Affectionately known as “the city by the lake,” The Colony features 23 miles of shoreline along Lewisville Lake and two lake parks with boat ramps, camping, and many other amenities. Golf courses within the city all provide outstanding lake views with two courses being recognized among Golf Magazine’s top five in Texas in 2010. The Colony is the proud home of the nation’s largest home furnishings store, the Nebraska Furniture Mart of Texas, anchoring the 400-acre Grandscape development. When complete, Grandscape will feature unique entertainment, dining, and retail venues. KERI SAMFORD, Economic Development Director THE COLONY ECONOMIC DEVELOPMENT CORPORATION 6800 Main St., The Colony, TX 75056-1133 972.624.3127 edc@thecolonytx.org thecolonyedc.org

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SPECIAL ADVERTISING SECTION

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, 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. CITY OF DALLAS OFFICE OF ECONOMIC DEVELOPMENT 1500 Marilla St. Dallas, TX 75201 214.670.1685 dallas-ecodev.org

Hundreds of people relocate to Frisco each month, so we understand the challenges and opportunities that come with being the “new kid on the block.” With a five-year compound annual growth rate of 4.7 percent, Frisco specializes in turning change and new beginnings into a success story for people and businesses alike. The city’s innovative culture is a magnet for a highly educated and diverse workforce, many of whom are raising the next generation of innovators in one of the safest and most prosperous places in America. A true and lasting partnership among the municipal government, public school district, and many community organizations is how a small farming community grew into the city with a $5 Billion Mile. The one-mile stretch along the Dallas North Tollway includes four mixed-use developments, either announced or under construction, worth more than $5 billion in capital investment. There’s room to grow in Frisco. Bring your dreams! Learn more about building a better business and a better life at FriscoEDC. com/videos and search #5BMILE on Twitter. RON K. PATTERSON, President FRISCO ECONOMIC DEVELOPMENT CORPORATION 6801 Gaylord Parkway Suite 400 Frisco, TX 75034 972.292.5150 friscoedc.com

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Grapevine Texas boasts a quality that embraces culture, tourism, community and natural beauty - all in an affordable setting. The community is home to one of the most authentic downtowns in America, world-renowned festivals and events, stateof-the-art healthcare and a Dallas/Fort Worth location second to none. Home to nearly 2,900 businesses, our economy reflects a balance of successful small businesses that serve the Texas market to major corporations that serve the world. From technology to tourism, come explore the entrepreneurial energy that is Grapevine, Texas. With TEXRail (commuter rail service) beginning service in Grapevine in January of 2019, eleven wineries, two golf courses, the Grapevine Vintage Railroad, Grapevine Lake, award winning events and festivals, more than 67 miles of trails, water-front cabins, and more than 200 dining options, Grapevine is your one-stop destination. BOB FARLEY, Director of Economic Development 817.410.3108

The McKinney Economic Development Corp. (MEDC) was created in 1993 to support the development, expansion, and relocation of new and existing companies. The MEDC is an organization with a mission to work to create an environment in which communityoriented businesses can thrive. ABBY LIU Interim President MCKINNEY ECONOMIC DEVELOPMENT CORP. / CITY OF MCKINNEY 5900 S. Lake Forest Drive Suite 110 McKinney, TX 75070 info@mckinneyedc.com 972.547.7651 mckinneyedc.com

Centrally located between Dallas Fort Worth International Airport and downtown Fort Worth in affluent Northeast Tarrant County, North Richland Hills (NRH) is the third largest city in Tarrant County behind Fort Worth and Arlington. Rapidly growing, NRH added over 500 new single family homes valued over $350,000 in the past three years within the highly-rated Birdville and Keller ISDs. Growth is expected around two transitoriented developments (TODs) along the Fort Worth Transportation Authority’s new commuter rail system, TEXRail. Scheduled for 2018, TEXRail will run along the famous Cotton Belt line connecting Downtown Fort Worth to DFW Airport along two separate NRH rail stops. Business additions include the expansion of Santander Consumer USA into 200,000 SF and 1,650 employees, the new addition of Southwest ADI, a distributor that purchased and converted a former Sealy bedding plant into their corporate headquarters, and the addition of Digital Alchemy, a technology company occupying 24,000 SF of office space. CRAIG HULSE Director of Economic Development 4301 City Point Drive North Richland Hills, TX 76108 817-427-6090 chulse@nrhtx.com www.nrhed.com

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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 7-Eleven, Inc. A G Hill Partners LLC Accenture Acme Brick Company Active Network Addison Law Adept Talent AECOM AECOM Hunt Akin Gump Strauss Hauer & Feld LLP Alaska Airlines AlixPartners LLP Alkami Technology Altair Global Amegy Bank of Texas American Airlines, Inc. American Heart Association, Dallas Division American National Bank of Texas AMN Healthcare Andrews Distributing Company of North Texas Armstrong Relocation Asset At Home AT&T Atmos Energy Corporation Austin College Austin Industries AustinCSI Axxess Bain & Company, Inc. Baker & McKenzie, LLP Baker Botts L.L.P. Balfour Beatty Bank of America Bank of Texas Barnes & Thornburg Baylor Scott & White Health BB&T BBVA Compass BDO USA LLP BE&K Building Group Bell Nunnally BG Staffing, Inc.

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

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Communications Copart Corgan Corinth Properties Corrientes 348 Argentinian Steakhouse Corrigan Investments, Inc. CP&Y, Inc. Crestron Electronics Crow Holdings Crowe LLP CyrusOne Dallas Baptist University Dallas Business Journal Local Business News Dallas County Community College District Dallas Cowboys Football Club Ltd. Dallas Mavericks Dallas Stars Hockey Club Dallas Summer Musicals Dallas Wings Dallas Women’s Foundation Dal-Tile Corporation Dannenbaum Engineering Corporation DataMob DeGolyer and MacNaughton Deloitte LLP DFW International Airport DHD Films DLR Group Staffelbach Door Dr Pepper Snapple Group Dreien Opportunity Partners LLC Ebby Halliday Real Estate, Inc. Egan Nelson LLP EMJ Corporation Emmitt Smith Enterprises esrp Estrada Hinojosa & Company, Inc. Ewing Automotive Group Exxon Mobil Corporation EY FASTSIGNS - Northeast Dallas

FedEx Office Fidelity Investments Fluor Corporation Headquarters Foley Gardere LLP Forest City Texas Inc Fox Sports Southwest Frito-Lay North America Frost Bank Furniture Marketing Group G6 Hospitality LLC Gaedeke Group Gensler George W Bush Foundation Goldman Sachs & Co, LLC Granite Properties Grant Thornton LLP Green Brick Partners Gulfstream Aerospace Corporation Gupta & Associates Inc. Halff Associates Hall Group Harness Dickey & Pierce Hartline Dacus Barger Dreyer LLP Haynes and Boone Hazel’s Hot Shot, Inc. H-E-B/Central Market Heritage Health Solutions Inc. Hill & Wilkinson General Contractors Hill+Knowlton Strategies Hillwood Development Company, LLC Hilti North America Hilton Anatole Hines Interests Limited Partnership HKS Inc. HMS HNTB Corporation Hoar Program Management, LLC HOK HollyFrontier Corporation Holmes Murphy HOLT CAT FA L L 2 0 1 8


C COMMUNITY Hotels.com Howard Hughes Corporation HPI Real Estate Services & Investments/Ross Tower HUB International Insurance Services Hunt Consolidated, Inc./ Hunt Oil Company Hunton Andrews Kurth LLP IBC Bank IBM Corporation Interceramic International Leadership of Texas Invesco Real Estate Invitation Homes Jackson Walker LLP Jacobs Engineering Group Inc. Jamba Juice JE Dunn Construction JLL Jones Day JPI JPMorgan Chase & Co. KDC Real Estate Development Investments Ketchum Public Relations Kilpatrick Townsend & Stockton LLP Kimley-Horn and Associates KPMG LLP LegacyTexas Bank Life School Lincoln Property Company Linebarger Goggan Blair & Sampson, LLP Littler Mendelson, P.C. Live Nation Locke Lord LLP Lockheed Martin Lockwood, Andrews & Newnam, Inc. Manpower, a ManpowerGroup Company Mary Kay Inc. McCarthy Building Companies, Inc. McGough Construction McGuire, Craddock & Strother, PC McKinsey & Company, Inc. McLarty Capital Partners Medical City Dallas Hospital/Medical City Children’s Hospital Mercantil Bank FA L L 2 0 1 8

Methodist Health System MHBT, a Marsh & McLennan Agency LLC company Microsoft Corporation MidFirst Bank Mission Foods USA Munck Wilson Mandala LLP MYCON General Contractors NEC Corporation of America Newmark Knight Frank Norton Rose Fulbright NTT DATA Inc. Omni Dallas Hotel Omnitracs, LLC Oncor Operation Kindness Options Clearing Corporation Origin Bank ORIX USA Corporation Pacific Builders Inc. Park Place Dealerships Parker University Parkland Foundation Paul Quinn College PDS Tech, Inc. Penske Motor Group Perkins+Will Pierpont Communication PlainsCapital Bank PNC Polsinelli Premier Truck Group Prime Rail Interests LLC Promenna PSA Constructors, Inc. PwC Realcom Solutions Regions Bank Reliant, an NRG Company Rent-A-Center Rosewood Property Co. RSM US LLP Salient Global Technologies Santander Consumer USA Sbase Technologies SCHMIDT & STACY Consulting Engineers, Inc. Schneider Electric Scientel Solutions Sendero Sewell Automotive Companies Shackelford, Bowen, McKinley & Norton LLP Sheraton Dallas Showcall

Sidley Austin LLP Silicon Valley Bank Slalom Smart City Apartment Locating Smith Group Asset Management Social Revolt Agency Southeastern Freight Lines Southern Glazer’s Wine and Spirits Southern Methodist University Southwest Airlines Southwest Office Systems, Inc. Spectrum Enterprise Spectrum Reach Spirit Realty Capital Squire Patton Boggs (US) LLP StackPath Stantec State Farm Insurance Companies Stewart Title Stifel Suffolk Construction SunTrust Robinson Humphrey Inc Susan G Komen Target Headquarters TDIndustries TDJ Enterprises Teladoc Telios Telnorm Tenet Healthcare Texans Can Academies Texas A&M University Texas Capital Bank Texas Central Texas Health Aetna Texas Health Resources Texas Instruments Incorporated Texas Scottish Rite Hospital for Children Texas Star Alliance Texas Woman’s University The Beck Group The Boston Consulting Group The Brinkmann Corporation The Broaddus Companies The Commit Partnership The Crowther Group

The Dallas Morning News The Fairmont Dallas The Freeman Company, LLC The Kroger Co. The University of Texas at Arlington Thompson & Knight LLP Thomson Reuters Tolleson Wealth Management Tom Thumb Food & Pharmacy Topgolf Torchmark Corporation Town of Addison Toyota Motor North America TracyLocke Transwestern Trinity Groves, LLC Trinity Industries, Inc. Turner Construction Company Uber Technologies, Inc. UMB Bank N. A. UnitedHealthcare University of Dallas University of North Texas at Dallas University of North Texas System University of Texas at Dallas UT Southwestern Medical Center Veritex Community Bank Verizon Wireless Regional Corporate Office Village Green Holdings, LLC Vinson & Elkins LLP Vistra Energy Walgreens Company Weaver Weil, Gotshal & Manges LLP Weitzman Wells Fargo West Monroe Partners LLC WFAA-TV Whitebox Real Estate Whiting-Turner Contracting Company Whitley Penn Willis Towers Watson Wilson, Elser, Moskowitz, Edelman & Dicker LLP Winstead PC Women’s Foodservice Forum Ztar Mobile, Inc.

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Ran Holman, Chairman Jim Knight, Chairman-Elect

CHAMPION’S CIRCLE Bank of America Merrill Lynch/ Bank of America Charitable Foundation, Inc. Bank of Texas Compatriot Capital, Inc. Deloitte Fauxcades Granite Properties HFF Hilton Anatole Hotel JP Morgan/ JP Morgan Chase Foundation NexBank

CHAIRMAN’S CIRCLE

Balfour Beatty Construction Billingsley Company CBRE Corgan Associates, Inc Crow Holdings Capital Partners, L.L.C. EY Frost Bank Holt Lunsford Commercial Invesco Real Estate Jackson Walker L.L.P. JLL KDC KPMG LegacyTexas Matthews Southwest Munsch Hardt Kopf & Harr P.C. Republic Title of Texas, Inc. Stantec Stewart Title StreetLights Residential The Howard Hughes Corporation Winstead PC

PRESIDENT’S CIRCLE 42 Real Estate, LLC

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.

Bank of the Ozarks BB&T BBVA Compass/BBVA Compass Foundation Champion Advisory Partners Chief Partners LP Comerica Bank Cushman & Wakefield DPR Construction, Inc. Eastdil Secured GFF Goldman Sachs Haynes and Boone, LLP Jackson-Shaw Locke Lord LLP NorthMarq Capital ORIX Real Estate Americas/ Orix Foundation Spirit Realty Capital Stream Realty Partners Texas Capital Bank Thackeray Partners Todd Interests Trammell Crow Company US Bank

BENEFACTOR’S CIRCLE

Adolfson & Peterson Construction AECOM Hunt AG&E Structural Engenuity American National Bank of Texas Arch Con Corporation Bank of America Plaza BBG Beck Group Berkadia Commercial Mortgage Bradford Companies Brasfield & Gorrie, LLC Capital One Bank Capright, LLC Chicago Title Company/ Fidelity National Financial (FNF)

Colliers International Communities Foundation of Texas Corinth Properties Cortland Partners Davidson & Bogel Real Estate EMJ Corporation Gables Residential Gaedeke Group LLC Gardere Wynne Sewell LLP Grant Thornton HALL Group Hillwood Urban Hines Interests LP Hunt Mortgage Group Invitation Homes Jones Day JPI Kane Russell Coleman Logan PC KeyBank Kimley-Horn and Associates, Inc Lincoln Property Company Mill Creek Residential Trust LLC Mohr Partners MUFG Union Bank OMNIPLAN, Inc. PegasusAblon Properties Perkins+Will PGIM Real Estate Finance PlainsCapital Bank PM Realty Group PUREPOINT Financial Real Estate Deal Sheet Regions Bank Sarofim Realty Advisors Schwob Building Company th+a Architects, Inc. The Retail Connection TIER REIT, Inc. Trammell Crow Residential Transwestern Turner Construction Company

Vinson & Elkins L.L.P. Walker & Dunlop Wells Fargo Bank Westmount Realty Capital, LLC

PATRON’S CIRCLE

Carrco Painting Drywall Interiors, LP Gentzler Electrical Services Inc. J&S Audio Visual Mckinney Office Supply Parmenter Realty Partners Premier West Builders TD Industries WFAA-Channel 8 Shaw Contract Flooring EHP Consulting & Bellphi Environmental Flooring Effects Polk Mechanical Co LLC RJS Painting, Inc. SWA Group Marek Brothers Systems Inc Alpine Roofing Construction PDL Kellen Flooring Solutions H & H Outfitters Already Design Co Gemini Stage Lighting & Equipment, Co., Inc. Precision Demolition, LLP Rod Stanley Fource Co Gordon Highlander AOS Engineering, LLC Armstrong Flooring Precision Specialty Floors Kite’s Int Lang Partners Facility Solution Epic Paver

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. 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

Learn more at recouncil.com or by calling 214-692-3600. FA L L 2 0 1 8


BUSINESS WORKS BETTER HERE Explore for facts supporting why Dallas Fort Worth’s business climate is more than favorable, the workforce is highly skilled, and highly educated, and the location is about as close to perfect as it comes. Each page contains a snapshot of the DFW region, our people, companies, and industries. Use this fact-rich tool to promote the region, attract businesses to your community, and expand existing ones.

THE DALLAS-FORT WORTH REGIONAL ECONOMIC DEVELOPMENT GUIDE. AVAILABLE AT DALLASCHAMBER.ORG/DFWFACTS/


L LEADERSHIP

MORE THAN ONE WAY TO GIVE BACK Through her business and volunteering, Asheya Warren is making a positive impact in South Dallas and beyond

BY NICHOLAS SAKELARIS

Asheya Warren was hungry. She had a great corporate job writing and reviewing requests for proposals for major construction jobs at Austin Commercial. During her tenure, she worked on some of the most iconic buildings in North Texas: Museum Tower, Parkland Hospital, and the terminal redevelopment at Dallas Fort Worth International Airport. While the job paid the bills just fine, Warren’s soul was crying out, looking for a higher calling. The kinds of projects she worked on would still come to fruition, she says. “I wasn’t doing anything game-changing from a public service or people standpoint,” Warren notes. The question became, “How are we giving back every day?” The Oak Cliff native is passionate about the systemic problems that plague South Dallas, specifically, and more broadly, minority and women-owned construction contractors. Her experience at Austin Commercial gave her first-hand knowledge of the RFP process and the challenges minority companies have in getting projects bid.

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“I saw a real gap in what they were able to provide from a collateral, branding, and strategy standpoint,” she says. “There’s a lack of representation across the board for people of color. That became another passion point for me.” She’d found a problem, and she had the expertise to do something about it. In 2012, she took a leap of faith, leaving her job of nine years to found Praxis, a niche marketing firm that focuses on branding, proposal management, and strategies for minority and women-owned businesses. “Our business focus is helping level the playing field from the standpoint of minority and women-owned business to make sure they are competitive and able to win product for their firms,” Warren says. “The marketing and business development side of the architectural industry is unique and niche-based.” Warren also became the first African-American president of the Society for Marketing Professionals Dallas Chapter where she served two terms. She joined SMPS in 2006 and says it’s played a large role in her career development. A HEART TO GIVE Warren’s heart has always been about giving back, whether she’s on the Mayor’s Star Council, Dallas’ GrowSouth Task Force, or the board for Harmony Community Development Corp. The HCDC is a nonprofit organization founded by Concord Church that advocates and helps people in need with a food pantry, counseling center, and workforce development. A recent grant from The Real Estate Council funded an expansion of the food pantry last year, allowing them to open a “micro-grocery store” where clients can shop for items rather than just taking prepackaged boxes or baskets, she says.

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Our business focus is helping level the playing field from the standpoint of minority and womenowned business to make sure they are competitive and able to win product for their firms.

— Asheya Warren

“It brings some dignity to the experience and allows them to factor in the states and preferences of their family,” Warren says. As part of GrowSouth, she’s working with the Dallas City Council and the Department of Urban Planning for Southern Dallas to stimulate economic activity and opportunities for the Red Bird area. Warren’s firsthand knowledge of the challenges faced by Southern Dallas made her an important voice for Leadership Dallas in 2018. “There was a need for some real world ‘This is what it looks like on a day-to-day basis,” Warren says. “Our future is bright, but we need to make sure we understand how we got where we are: ‘What were the root causes?’” Deep divides still linger along racial lines that affect educational opportunities, civil rights, access to jobs, economic development, and health, she says. “We can’t move forward until people recognize the privileges and the causes of those privileges and the lack thereof for others,” she says. “They’re rooted in racist policies and systems that were created years ago.” If she could fix any problem in Southern Dallas, it would be lack of access to early childhood education. “That’s where the real differences are,” she says. “Kids are exposed early and have options early and start to understand the breadth and depth of the world around them.” Warren wants to kick-start young minds into thinking about careers in architecture and construction. Praxis teamed up with the National Organization of Minority Architects North Texas chapter and architechture firm LPA to host the Hip Hop Architecture Camp in Dallas this year. The event let middle school students experience these careers in a fun and exciting way that mixes urban planning and hip hop music, Warren says. The same approach has been used in New York City to show how dense concentrations of people in urban areas contribute to poverty. The camp also shows children that the construction industry isn’t just workers with shovels and tractors—there are a lot of important jobs, from construction manager to accountant. “It’s a fun way to expose them to something they may not know is a possibility,” she said. “There are a lot of misconceptions about our industry. You can be making six figures a year, if not more.”

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.

NOVEMBER.. NOVEMBER 15 Young Guns Rising to the Top Bank of America Plaza, 5:30-7:30 p.m. Get inside the minds of commercial real estate professionals at the highest levels of their industries during The Real Estate Council’s annual Young Guns’ Rising to the Top event. Mingle with a diverse group of developers, investors, brokers, designers, and others to explore topics including industry trends, career history, and how you can drive your career forward. [TREC]

NOVEMBER 29 Bank of Texas Speaker Series: Community Impact Through Collaboration Belo Mansion, 11:30 a.m.-1:00 p.m. Join us at Belo Mansion for a conversation with Lyda Hill of the Lyda Hill Foundation and Dallas Chief of Police U. Reneé Hall as we discuss the power of collaboration. Brendan Miniter of the Dallas Morning News will moderate the discussion, exploring how each speaker is leveraging collaboration to make a positive impact in the community. [TREC]

DECEMBER.. DECEMBER 4 State of the City Hyatt Regency Dallas, Noon-1:30 p.m. The Dallas Regional Chamber is honored to host Dallas Mayor Mike Rawlings for his final State of the City address. [DRC]

JANUARY.. JANUARY 18, 2019 2019 Annual Meeting Hilton Anatole, Noon-1:30 p.m.

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

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The Chamber’s biggest event of the year celebrates business and community leaders who make Dallas a vibrant and dynamic place to live, work, and do business. Featured speaker Jim Lentz, CEO, Toyota Motor North America [DRC]

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THE REAL ESTATE COUNCIL DREAMS BIG Approximately 1,000 guests helped The Real Estate Council Dream Big during its ninth annual Giving Gala in October at the Hilton Anatole Hotel, raising close to $600,000 to directly benefit the Dallas Catalyst Project. During the program, TREC honored Elias Bahar of Balfour Beatty Construction with its Volunteer Impact Award and Mayor Michael S. Rawlings and the GrowSouth initiative with its Legacy Leaders Impact Award. Singersongwriter Roger Creager provided entertainment.

RAN HOLMAN, PAUL GEYER, MAYOR MICHAEL S. RAWLINGS, LINDA MCMAHON, GREG KRAUS, JIM KNIGHT, MICHAEL DARDICK

KARDAL COLEMAN, ADAM WIGFALL, SHERMAN REDMOND, RYAN BEHRING, ALLI SCOTT, MARCUS ALBRIGHT, MANDY WATSON, DANIELLE CONLEY, GABRIELLE BOILLING, BRENDA ALLEN

MAGGIE BIRNBACH, CAROLINE LEARY, FORREST LEARY, KATHERINE JESSEN

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SHARON LAHR, ANGELA DEAL, VALERIE HARPER, JOANNA ROTTER

BRENDA ALLEN, PATRICIA BLASQUEZ, ESMERALDA VASQUEZ, MANDY WATKINS

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L LEADERSHIP

KAYRN MARTIN: THE IMPORTANCE OF GOOD, MODERN ‘INTERPRISE’ DESIGN

KAYRN MARTIN

BY NICHOLAS SAKELARIS

GREG PHELPS, LIZZ BABB

ROGER CREAGER

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Offices are more than just cubicles, desks, and conference tables. The best businesses have a cohesive plan for workplace design, where the placement of the walls, the type of flooring, and the style of furniture combine to create a cohesive, modern workplace. Addison-based Interprise Design helps building owners and real estate firms make the best decisions: first, to get the best tenant paying the highest rent, and, second, to create a comfortable, successful office tenant. The firm also designs industrial spaces, retail stores, call centers, and restaurants. Whether it’s a business that wants to keep customers coming back or an office that can be shown off to clients, it all starts with great design. While she’s not an artist by trade, Karyn Martin, COO and president of Interprise Design, understands the importance of good design. “Design, to me, changes how a person feels. Design can actually add years to people’s lives,” Martin says. “When they walk into a space and it brings comfort, and it brings peace, [it] actually brings a bit of joy to working in the atmosphere when it’s aesthetically pleasing for the industry that they’re in.” The West Virginia native started at Interprise Design in 1998 and came up through the administrative side, working as director of human resources, vice president, COO, and, as of 2018, president. Her philosophy on leadership is to trust her team to do its job. That keep her attention on the big picture. “I think where a lot of presidents get it wrong is that you can’t be producing and overseeing and also staying at a high-level overview—looking forward to where the company should be going—while you’re in the weeds,” Martin says. Interprise was founded in 1981 and is the planner of record for 148 buildings in North Texas. They have national accounts, too. Since 2011, the company has been owned by its 30 employees, all based in Addison. “All of our employees take high responsibility for the product that they deliver,” Martin says. “They understand that what they do affects our client

and they take ownership of that.” And they go to great lengths to make sure their work is up to city code so it’s built right the first time. The firm prides itself on designing to the clients’ needs and giving them the highest value they can get. Some clients want trendy, some want cheeky, and others want a classic, timeless look. Martin has seen a dramatic shift in what’s expected over the last 20 years. “More amenities are required. Gyms are a bigger deal now. They’re having bicycle racks and places for that commuter who may not want to drive,” she says. Technology and innovation are also important to Interprise. “We have a millennial think tank here with our younger generation looking at what’s currently out there in the marketplace,” Martin says. “What’s available out there will allow us to do our job quickly and efficiently.” Martin is a big believer in giving back to Dallas through her involvement with The Real Estate Council’s Community Fund. “They’re community based. They’re not just an organization looking within themselves to make themselves better, but they’re looking at how to make the entire real estate industry—and all of DFW— better,” Martin says. “I haven’t seen any organization do it at the scale and the level of care that the Community Fund does.” She’s been involved for three years and would encourage others to participate. She likes that they take professionals from a wide spectrum and never have two from the same profession at a time. “It would be beneficial to every company to lend one of their people, if not more, on an annual basis to take part in that class,” Martin says. “It builds the person and helps them understand where their strengths lie.”

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VIEW FROM THE TOP

BY LANCE MURRAY

HOW DOES NORTH TEXAS FIT INTO THE NEEDS OF YOUR EMPLOYEES? I can’t think of a better place to recruit talent than North Texas. There are so many great colleges and universities here from which to draw young workers, and the area is obviously stocked with outstanding businesspeople at all levels. This has certainly been a significant cultural and organizational rebuild and shift for Pei Wei—all for the better.

“J.” HEDRICK CEO, PEI WEI Fast-casual, Pan Asian-inspired restaurant chain Pei Wei relocated in late 2017 to Irving from its previous headquarters digs in Scottsdale, Arizona, where it shared space and some employees with P.F. Chang’s China Bistro Inc. The 18,000-square-foot base in Irving includes a research center—another name for a test kitchen—and enough space for CEO “J.” Hedrick to lead a reboot of the chain that produces roughly $300 million in annual revenue from its 225 locations in more than 20 U.S. states, South Korea, and the UAE. There are 38 Pei Weis in DFW alone. Hedrick took the time to tell the Dallas-Fort Worth Real Estate Review about the move and the future of his company.

TELL US ABOUT PEI WEI’S OPERATIONS THAT HAVE RELOCATED TO IRVING. HOW MANY PEOPLE ARE A PART OF THE RELOCATION? We signed a lease in Las Colinas Highlands office tower, located at 6191 N State Highway 161 in Irving, and relocated approximately 10 team members from our old Scottsdale HQ. In total, we’ve added approximately 70 jobs to our restaurant support center. Pei Wei was co-founded by Dallas restaurateur Mark Brezinski, so in many ways this is a return to our roots. The move also allows us to forge our own identity from PF Chang’s. This is more than just a headquarters move: It’s really an overall shift in our brand direction. We’re separating operationally and geographically from our parent company.

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IN YOUR SITE SELECTION PROCESS, WHAT TIPPED THE SCALE IN FAVOR OF THE LOCATION IN IRVING? When we began looking at potential locations, the DFW area stood out with all that it had to offer our team members, as well as being a great location given our restaurant base. When we began looking at specific areas within the region, the support and help we got from the City of Irving and the Greater Irving-Las Colinas Chamber of Commerce made Irving a perfect spot for Pei Wei. We’re very grateful to Gov. Abbott and his staff for their help through the Texas Enterprise Fund. The relocation to a different city in a different state certainly makes it more real as we reformulate the brand, rather than staying put or moving down the street.

DALLAS-FORT WORTH IS KNOWN AS A HUB FOR THE FOOD AND BEVERAGE INDUSTRY. DESCRIBE HOW THAT INFLUENCED YOUR SELECTION PROCESS? Dallas-Fort Worth is, in many ways, a no-brainer for a company like ours. For starters, it’s our largest market, in terms of restaurant count — and thanks to the two outstanding airports here and the central location, all of our locations are within easy access to us.

HOW DOES THE REGION’S CENTRAL LOCATION ENHANCE YOUR COMPANY’S OPERATIONS AND GROWTH ACROSS THE U.S. AND ABROAD? By moving to North Texas, we’ve gained an exceptional ability to travel, great access to talent, and a very businessfriendly environment. We’ve found that the job market, the quality of applicants, and the specialized talent that exists in this area is very high. There are a large number of similar restaurant concepts and a large number of very qualified applicants to fill jobs. And from North Texas, our team can reach at least a third of our U.S. restaurants within a four-hour drive and all of our domestic restaurants within a four-hour direct flight from Dallas Fort Worth International Airport or Dallas Love Field.

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RENDERING COURTESY OF AMERITEXAS

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rapevine has over 100 years of innovation and imagination that drives growth and creates opportunities for our businesses and families. In just the last four years, Kubota North American Headquarters, Mercedes Benz-USA, BMW, the Gaylord Texan Resort, Paycom, and others have added new investments totaling over $1 billion dollars. The next several years will be equally exciting anchored by a new train station and boutique hotel complementing the City’s historic Main Street and connecting Dallas, Fort Worth, and the DFW International Airport. Jump aboard and roll into our exciting future with TEXRail and Grapevine!


IT’S A WHOLE NEW BALLGAME. IT’S A WHOLE NEW BALLGAME.

Valley Ridge Park in Cedar Hill • Photo by Javier Ruiz

THIS is Cedar Hill is Cedar Hill

Valley Ridge Park in Cedar Hill • Photo by Javier Ruiz

WHERE BUSINESS + FUN GROW NATURALLY WHERE BUSINESS + FUN GROW NATURALLY You’ve arrived someplace special when you come to Cedar Hill.

Whether it’s the pristine natural beauty, the unique shopping, or You’ve arrived someplace special when you come to Cedar Hill. perhaps the breathtaking views among our rolling hills. Whether it’s the pristine natural beauty, the unique shopping, or perhaps thethe breathtaking viewsHill’s among our rolling hills. community of Whatever reason, Cedar bustling and diverse just over 45,000 people combine the best of big-city living with natural Whatever the reason, Cedar Hill’s bustling and diverse community of beauty, and outdoor recreation found nowhere else in the Metroplex. just over 45,000 people combine the best of big-city living with natural beauty, andHill, outdoor found nowherewhich else is in why the Metroplex. In Cedar we’re recreation serious about business, we offer aggressive economic development incentives. We invite you to come In Cedar Hill, we’re serious about business, which is why we offer take a look for yourself and see why there’s greener pastures in the aggressive economic development incentives. We invite you to come City of Cedar Hill, Texas. take a look for yourself and see why there’s greener pastures in the City of Cedar Hill, Texas.

C I TY O F C E DA R H I L L E C O N O M I C D E V E L O P M E N T CITY OF CEDAR HILL ECONOMIC DEVELOPMENT 972.291.5132 • CEDARHILLEDC.COM 972.291.5132 • CEDARHILLEDC.COM

Profile for Dallas Regional Chamber Publications

Dallas-Fort Worth Real Estate Review - Fall 2018  

Hidden Ridge, The 121 Corridor, Transportation Revolution

Dallas-Fort Worth Real Estate Review - Fall 2018  

Hidden Ridge, The 121 Corridor, Transportation Revolution