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DFWREALESTATEREVIEW.COM

ALSO INSIDE

NORTH TEXAS: A TOP LOGISTICS HUB

SUMMER 2016

ROUNDTABLE DISCUSSION: SOUTHERN DALLAS

CRANE REPORT: THE LATEST ACTIVITY


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ON THE COVER: Dallas’ historic west end district, as seen from the GeO-Deck of Reunion tower. Photo by Michael Samples

SUMMER 2016

CONTENTS

17 THE CRANE REPORT

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

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

BUILDING THE FUTURE TOGETHER Not Just “Gone Fishing” for Headquarters Relocations. . . . . . . . . . . . . 15

30 ROUNDTABLE

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

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

ROUNDTABLE Land of Opportunity: Southern Dallas County . . . . . . . . . . . . . . . 30

SUMMER 2016

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

48 FEATURE Delivering the Goods:

DFWREALESTATEREVIEW.COM

North Texas Logistics Hub . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

D MAGAZINE PARTNERS BUSINESS GROUP PUBLISHER Josh Schimmels

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

EDITOR-IN-CHIEF Christine Perez

MANAGING EDITOR Lance Murray

52 ANATOMY OF A DEAL

CREATIVE DIRECTOR Michael Samples

Anatomy of a Deal: Rebirth of the West End

Creating an innovation district that rivals the area’s former glory . . 52

CONTRIBUTING WRITERS Jeff Bounds Olivia Nguyen Karen Nielsen

TOOLBOX

Ryder Smith

The Modern Magic of Site Selection Predictive analytics have become an indispensable tool in site selection. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

DIRECTOR OF SALES Kyle Moss 214-523-5247 kyle.moss@dmagazine.com

MEDIA DEVELOPMENT MANAGER

SPECIAL ADVERTISING SECTION Economic Development Guide Profiles of cities around the region . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

Courtney Garza

INTERNS Julia Falcon Amanda Hayes Michaela Richards

COMMUNITY

Hannah Ridings

The Real Estate Council, Impact Investors . . . . . . . . . . . . . . . . 67

The Real Estate Council, Associate Leadership Council . . . . 89

Dallas Regional Chamber, Top-Level Members . . . . . . . . . . . . . 68

Calendar of Events . . . . . . . . . . . . . . 90

The Real Estate Council’s FightNight XXVIII . . . . . . . . . . . . . . 88

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Dallas Regional Chamber, Leadership Dallas . . . . . . . . . . . . . . . 90 View From the Top: Tom Nolan. . . 92

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. ©2016 All rights reserved. No part of ths publication may be reproduced or reprinted without written permission. Neither the Dallas Regional Chamber nor The Real Estate Council nor D Magazine Partners is a sponsor of, or committed to, the views expressed in these articles. The publisher is not responsible for unsolicited contributions.


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WELCOME

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

GROWTH IN SOUTHERN DALLAS BOOSTS ITS ‘COOL QUOTIENT’

2016 CHAIRMAN OF THE BOARD Thomas W. Codd Vice Chairman, US Human Capital Leader PwC PRESIDENT & CEO Dale Petroskey CHIEF OPERATING OFFICER & CHIEF FINANCIAL OFFICER

DALE PETROSKEY President and Chief Executive Officer Dallas Regional Chamber

LINDA McMAHON President and Chief Executive Officer The Real Estate Council

Southern Dallas is misunderstood. It always has been. It’s true that Southern Dallas comprises 60 percent of our city’s land mass, but it’s only 15 percent of our tax base. However, since 2011, that tax base has grown over $1.5B, real property values have increased over 25 percent, and investment in residential property has increased exponentially. All this indicates that Southern Dallas is a great investment, and worth understanding more fully. Southern Dallas has a rising “cool quotient,” for many reasons. For one, it is home to the largest urban forest in the country. An effort is underway, supported by The Real Estate Council Foundation, to connect all Dallas trails together to create a 50-mile loop for hikers and bicyclers that links our community from north to south. It is also home to a variety of neighborhoods that have established their own unique personality and vibe with some of the best restaurants in the region.  The emergence of these communities has not gone unnoticed by relocating CEOs to the Dallas Region; many new executives have made their homes in Southern Dallas because of its beautiful affordable neighborhoods and close proximity to downtown. In this issue, you will hear from commercial real estate investors who will tell you why institutional investors are “all in” when it comes to

Southern Dallas. Access to capital has never been easier – for commercial, residential, or industrial investment.  And, not only are institutional investors flocking to Southern Dallas – our local investors are also fully engaged.  Dallas Mayor Mike Rawlings’ Grow South Initiative kicked off a private investment strategy through Impact Dallas Capital’s first investment fund, called the Grow South fund, which has raised tens of millions of dollars from local commercial real estate investors. Local investor Peter Brodsky, recently bought Red Bird and has outlined a vision to reimagine 90 acres in historic Oak Cliff, creating a dynamic community center to live, work, shop, and play – all at the intersection of two major highways (I-20 and Hwy 67). Well-known companies such as Amazon and Nestle Waters have also established significant operations in Southern Dallas. When it comes to education, Southern Dallas is now home to three four-year universities; two community colleges; and the top-rated public high school in the United States, The School for the Talented and Gifted at the Yvonne A. Ewell Townview Magnet Center. Southern Dallas may be misunderstood, but the enlightenment continues — and there are so many new things to come. The Trinity Forest Golf Course will be opening in the next year, where it will be the new host of the prestigious Byron Nelson Golf Tournament starting in 2018. Fair Park, home to some of the most heralded Art Deco architecture in the country, is on the rise. Commercial real estate investors are bullish on Southern Dallas, and homebuilders are now flocking to the area for the economic opportunity and for the richly diverse socio-economic population that will continue to contribute to our growth as a region. Myth, perception, or reality? The Southern Dallas we know is better understood and grows more impressive each day. So — why Southern Dallas? We say, ‘why not?’

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

2016 CHAIRMAN Diane Butler BBG VICE CHAIR Greg Kraus Invesco PRESIDENT & CEO Linda McMahon VICE PRESIDENT MARKETING & EVENTS Debby Hanson VICE PRESIDENT FOUNDATION Robin Minick CFO Carla Brandt

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SUMMER 2016


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UPFRONT QUINCY CURÉ PRESTON Publisher Dallas-Fort Worth Real Estate Review

A letter from the Publisher

Innovative thinking continues to move Dallas-Fort Worth forward in 2016, and in this edition of Real Estate Review, we look at some of the people and places that are in the vanguard of growth for the region. For the summer edition, our cover story looks at the amazing transformation happening in the West End Historic District of downtown Dallas. The West End is seeing an influx of technology businesses, retail, and residential. It’s the home of the Dallas Innovation Alliance’s living lab, a part of the city’s smart cities program. You can find that feature starting on page 52. Our roundtable experts talk about Southern Dallas, where companies are locating massive facilities on prime sites with access to highways and major rail lines. Find it on page 30. Developers in DFW are building 21 million square feet of industrial space—14 million of it speculative. We detail why the region is a top national logistics hub, beginning on page 48. How do companies find great sites? Our Toolbox feature, on page 64, explains how they use analytics to find the best locations for their real estate needs. Mike Rosa, of our partner the Dallas Regional Chamber, explains why recruiting company headquarters remains a major focus for the chamber. In addition to corporate headquarters recruitment, Rosa details five other important aspects of the DRC’s work in economic development, starting on page 17. As usual, we bring you the biggest lease transactions and new office, industrial, and retail projects throughout DFW in our Crane Report, on page 21, and the Scorecard on page 25. Of course, you can always find extended content on our website, www.dfwrealestatereview.com, and our Facebook feed. We enjoy hearing from you, so drop us a line!

Quincy Curé Preston Publisher

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SUMMER 2016


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FOUNDATIONS

A baseline for the region’s future BY CHRISTINE PEREZ

DALLAS JOB GROWTH BALANCED ACROSS WAGE RANGES

NORTH TEXAS OFFICE MARKET LEADERBOARD Since the end of 2010, vacancy in Uptown has dropped nearly 11 percent—despite robust activity on the development front. It continues to maintain one of the lowest vacancies in the market, at 11.5 percent. At the same time, Uptown is attracting the highest rents, at an average of $35.83 per square foot. The stats are from a first-quarter report released by JLL. Researchers at the firm found that job gains continue to fuel solid market fundamentals in Dallas, with top submarkets holding firm to ongoing tenant interest. Since 2011, three submarkets have accounted for 75 percent of the area’s office absorption: Far North Dallas, Richardson-Plano, and Las Colinas.

With nearly 600,000 jobs added since 2010 and 117,000 jobs in the last 12 months, Dallas-Fort Worth is a jobcreation machine. Beyond the volume of jobs created, North Texas also stands out for the wage diversity of those jobs. According to Walt Bialas, director of research for JLL, the one “knock” against the national recovery has been that a large proportion of the new jobs have been lower paid positions, and mostly in the service industries. But Dallas, he says, counters this trend. “In the last year, high-wage job growth has out-paced low- and mid-wage levels in dramatic contrast to other U.S. regions,” he says. In terms of numbers, 36 percent of the jobs added in the Dallas portion of the region in 2015 were in the high-wage category. Even looking back over a longer period, gains have been accounting for

SUBMARKET STATS

CLASS A AND CLASS B OFFICE SPACE, THROUGH THE FIRST QUARTER OF 2016.

LOWEST CURRENT VACANCY PRESTON CENTER: 10.10% UPTOWN: 11.50% FAR NORTH DALLAS: 15.50%

ANNUAL JOB GROWTH

HIGHEST CURRENT RENTS UPTOWN: $35.83 PRESTON CENTER: $34.07 FAR NORTH DALLAS: $26.36

5.0%

$39,000 - LOW $55,000 - MID $72,000 - HIGH

4.0%

MOST IMPROVED VACANCY (Since 2010)

MID

UPTOWN: Down 10.7% RICHARDSON-PLANO: Down 8.6% LAS COLINAS: Down 6.2%

APPROXIMATE WAGE RANGES

LOW

3.0% 2.0%

MID

HIGHEST ABSORPTION (Since 2011) 1.0% 0.0%

LOW HIGH

DALLAS - PLANO - IRVING

US - SOUTH

MID

LOW MID HIGH

HIGH

US - NORTHEAST

SOURCE: JLL

SOURCE: JLL

FAR NORTH DALLAS: 4.6 million s.f. RICHARDSON-PLANO: 3.2 million s.f. LAS COLINAS: 2.1 million s.f.

JANUARY 2015-16

HIGH

LOW

about 35 percent of jobs since 2010, JLL reports. (See chart below.) “The fact that our annual growth rate is well above the other regions is not new news,” Bialas says. “What is newsworthy, though, is the gains we’ve seen across the wage sectors—and the very large share of high-wage jobs being created here. Not only does this underscore our economic diversity story, it also speaks to unique, robust growth across all wage earners. The numbers, provided to JLL by Moody’s Analytics, foretell an ongoing strengthening of the Dallas economy— and good news for companies recruiting talent here, Bialas says: “ Ultimately, this balanced growth and expansion of higherwage opportunities will position us for the future by being able to attract more seasoned and senior talent.”

US - WEST

STRONG START: FIRST-QUARTER INDUSTRIAL STATS DFW tenants leased 5.9 million square feet of industrial space during the first three months of 2016—the strongest first-quarter absorption seen in the market since 2009, according to a new report from CBRE. The three-month period also saw 4.9 million square feet in new deliveries, with 53 percent of the space released. An estimated 21.4 million square feet of space remains under construction, with 42 percent of that space pre-leased. Third-party logistics and e-commerce users account for the lion’s share of activity, CBRE reports, accounting for 76 percent of total net absorption to date. It’s driven by DFW’s central location and its own population density of nearly 7 million residents.

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INDUSTRIAL FAST FACTS, 1Q 2016 VACANCY RATE:

6.7%

AVG. ASKING RENTS:

$4.33

NET ABSORPTION:

COMPLETIONS:

5.9 MILLION S.F

4.9 MILLION S.F.

* Arrows indicate change from previous quarter

SUMMER 2016


F FOUNDATIONS

DFW: AN ADVANCED INDUSTRIES LEADER

America’s post-recession recovery is being led by new technologies, from advanced robotics and 3-D printing to the “digitization of everything.” That’s the word from a new report from Brookings. Since 2010, “advanced industries: have created 65 percent of the country’s new jobs. The sector, the report says, has deep roots in tech research and development and STEM (science, technology, engineering, and math) workers. It encompasses 50 industries, from manufacturing to energy, to high tech, including health care applications. Since 1975, average earnings in advanced industries have increased almost five times as fast as those in the overall economy. The advanced industries sector is highly metropolitan, varying considerably in its composition and depth. According to Brookings’ findings, Dallas-Fort Worth stacks up incredibly well.

DFW ADVANCED INDUSTRIES 2013 Jobs Share of Jobs Output Share of Output

TOTAL

RANK*

329,140 10.40% $87.1 billion 23.40%

7 19 5 14

Many Texas universities are hitting or nearing enrollment records, and that’s good news for the construction companies—and the local economy. The trend is especially being felt in the multifamily and retail sectors, with new residences, restaurants, bars, and stores underway, according to

CBRE. The firm looked at the nearly 250 universities in Texas, Oklahoma, and Arkansas and found that more than half of the major schools have seen double-digit enrollment gains. Here’s a look at fi ve fastest-growing universities in DFW.

ENROLLMENT GAINS SCHOOL Texas Christian University University of Texas-Arlington Southern Methodist University Texas Women’s University University of North Texas

ENROLLMENT CITY FALL 2010 FALL 2015 % CHANGE Fort Worth 9,142 10,323 12.90% Arlington 33,449 37,008 10.60% Dallas 10,938 11,643 6.40% Denton 14,180 14,718 3.80% Denton 36,067 37,175 3.10% SOURCE: CBRE

SOURCE: BROOKINGS

FOUR WAYS DFW INDUSTRIAL SPACE IS CHANGING

The consumer shift to online purchases is having a significant impact on manufacturers and on their distribution networks, says Randy Thompson U.S. head of corporate project management for Cushman & Wakefield. Instead of shipping full pallets of products, distribution centers are becoming e-commerce fulfillment centers, where single orders “have to somehow get into the same box to be shipped to a customer’s home for next-day delivery,” he says. “Not only does this impact industrial users inside their buildings, it is impacting the types of buildings they are looking for.” Here’s how, Thompson explains: > CLEAR HEIGHT: Distribution centers are getting taller. Ten years ago, they were commonly 26 to 30 feet tall. Five years ago, 34-36 was the standard. Today, 40 feet is not uncommon. > POWER: Last-generation distribution centers were largely packed with extensive racking, conveyors, sorting equipment, automated pallet-pickers, etc. But picking single quantity orders is changing much of that. As a result, more and more electricity will be needed to run DCs of the future. > PARKING: In the old paradigm, DCs would only have a handful of parking spaces needed for their employees, because the systems were largely automated. But e-commerce fulfillment centers can require hundreds, if not thousands, of employees. > LEED/SUSTAINABILITY: Although one-off users of DC space may not care if their space is LEED-certified, the big e-commerce users do. Sustainable space is table stakes in this new, emerging distribution economy. “Although this disruption may hurt some,” Thompson says. “It is an overall benefit to our economy.”

SUMMER 2016

UNIVERSITY GROWTH A KEY DEVELOPMENT DRIVER

DISPELLING THE MILLENNIAL HOME-BUYING MYTH Much has been written about millennials and the generational shifts they’re causing. One common misconception is that they’re eschewing home ownership in favor of renting in the urban core. But that’s just one side of the story, says Walt Bialas, director of research in JLL’s Dallas office. He points to a home-buying report from the National Association of Realtors that shows millennials made up the largest share of U.S. home buyers in 2014. Bialas says his assumption was that these are “older” millennials who are beginning to have families and are ready to own. “But that’s not the case,” he says. “With a median age of just 29, these millennials are pretty representative of the overall group. And, according to NAR, 65 percent are married, which mirrors the overall buying public. So, to our amazement, there is really no generational difference here.”

Other interesting notes: > Reasons for buying included cost savings, a desire to own their own home, and market timing > Most millennial buyers had previously been renters, with only a minority number moving out of their parents’ homes (another popular myth) > Eighty-three percent said they needed to “save” for their downpayment, with only 25 percent receiving help from a relative or friend > Twenty-one percent opted to buy in urban/central city areas, compared with 16 percent overall “In the end, the millennials are and will continue to be an important home buying group—one that’s not all that different from past generations as they began home buying,” Bialas says.

HOME-BUYERS BY AGE A LOOK AT THE GENERATIONAL BREAKDOWN FOR THOSE MAKING PURCHASES IN 2014.

GENERATION Millennials/Gen Y Gen X Younger Boomers Older Boomers Silent Generation

YEAR BORN 1980-1995 1965-1979 1955-1964 1946-1954 1923-1945

AGE IN 2014 34 and younger 35 to 49 50 to 59 60 to 68 69 to 89

PERCENT 32% 27% 16% 15% 10%

MEDIAN AGE 29 41 54 64 73

SOURCE: NATIONAL ASSOCIATION OF REALTORS, 2015

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F FOUNDATIONS

A SOLID INVESTMENT

Multifamily developers, lenders, and buyers weigh in on DFW’s booming rental housing market. BY CHRISTINE PEREZ

In the second of a five-part “Industry Insights” event series, The Real Estate Council and Real Estate Deal Sheet gathered top multifamily experts, who shared their perspectives on where the market currently stands—and where it’s headed. The event, held April 27 at the Dallas Country Club, began with a keynote presentation from economist Ryan Davis of Witten Advisors. It was followed by three quick-hit panel discussions, moderated by TREC board member Paul Geyer, managing director of Prudential Mortgage Capital Co. Here are excerpts from the presentations. RYAN DAVIS, WITTEN ADVISORS: Many are trying to figure out where we are in this cycle. Using baseball terminology, some say we’re in the ninth inning, going into extra innings. Others say we’re in the later innings, but it’s the day game of a daynight double-header. I’ll use a different analogy and say that we have been going at 75 miles an hour for the past two years. We see a slowdown more to like 60 miles per hour, or a little more than that, after this year. We do expect to continue to see above-average performance, just at a slightly slower pace than what we’ve been accustomed to the past couple of years. ... Going forward, we expect occupancy to remain high, but a slowdown in rent growth from the 5 percent that we’ve seen recently to 3.5 percent or so nationwide. The economy isn’t going gangbusters, but it’s providing a solid base for apartments. For the past two years, demand has exceeded supply, and that’s caused a big shortage in the housing we have available.

UPCOMING INDUSTRY INSIGHT EVENTS AUG. 17: CAPITAL MARKETS SUMMIT NOV. 16: RETAIL SUMMIT RICK PERDUE, MILL CREEK RESIDENTIAL: We try to make all spaces as flexible as possible. That means fewer built-in banquettes or a conference room that doubles as a dining room. [With denser projects], there’s a lot less room to play with. So there are some trade-offs, and you really have to get it right. When it comes to getting the most out of limited space, it goes to flex for us.

BRIAN O’BOYLE, ARA, A NEWMARK COMPANY: We have seen significant movement in the prices in the suburbs. I think we will see a number of Class A deals that will crack $200,000 a unit—garden-style, new construction. ... When you put Dallas and the DFW apartment market up against the national picture, Dallas is still a great deal. The economic picture we have in this market is unbelievable.

KATY SLADE, GABLES RESIDENTIAL: Mixed-use is hard. It has a lot of puzzle-piecing that makes a deal much more time intensive, cost-intensive, and it adds risk. The flip side of that is that it adds a tremendous amount of value. The ultimate amenity for people is to be able to walk to work or have only a short distance to work, and to be able to walk downstairs and go to Whole Foods in your pajamas—we’ve unlocked a lot of value in our rents and also a lot of value from having a Whole Foods lease.

JEFF PRICE, JLL: Some residents can’t afford the high-rise rates [of Uptown] and need a wrapped product. East Dallas, to me, is a terrific response. The product quality is as good as what is in Uptown. And if you look at the pedigree of the builders who are building there, and their equity partners, it’s more acceptable [by institutions] to be there. East of North Central Expressway used to be no-man’s land; today, it is a great place to be.

BRAD TAYLOR, TDI REAL ESTATE HOLDINGS: We have three projects on the market, and all three are getting double-digit offers, so we have not seen a slowdown in buyer appetites. Developers always want more, but when you’re getting 12 offers per project, that’s pretty strong.

ROBERT POYNTER, MONOGRAM RESIDENTIAL TRUST: When it comes to amenities, pets are huge. Residents want dog parks and washing stations and other things that cater to pets. Package delivery also is huge, with all of the Amazon and other online purchases people make. It’s a big resident-satisfaction item. In high-rise buildings, amenity decks are a big-seller. We’re able to get the higher rents we’ve seen because of the high level of amenities and the high level of customer service.

BRIAN TUSA, TRINSIC RESIDENTIAL GROUP: We’ve experienced quite a bit of increase in costs, and building codes are part of it. We have a completed project in North Dallas and are under construction on phase two. In 18 months, we’ve seen about a 12 percent increase in hard costs. Concrete is up 15 percent, plumbing is up about 13 percent; lumber, surprisingly, is up only 5 percent. Land values have also increased, as much as 25 to 30 percent in just two years.

PHILIPPE LAPOINTE, LANTOWER RESIDENTIAL: On the income side, the emphasis we’ve put on the financial literacy with our property managers has really made a difference. It’s popular and sexy to talk about rental growth of 3 percent, 4 percent, 5 percent, but at what cost? If you have a unit that’s sitting empty for six weeks while you’re holding out for that 4 percent, you might get it, but you also have six weeks of lost rent. At the end of the day, I feel a vacancy management strategy is probably the best way to manage growth and income.

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SUMMER 2016


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Industry Insights: Capital Markets Summit

Details: Date: Wednesday, August 17 Ticket Cost: $100 Location: Dallas Country Club Time: 7 – 9:15 a.m. Visit recouncil.com for tickets

With a strong regional economy, but an uncertain outlook for the national and global markets, industry experts discuss what challenges and opportunities may lie ahead.

Upcoming Dates: Retail Summit Wednesday, November 16

The Real Estate Council and Real Estate Deal Sheet have partnered to bring you unparalleled access to industry experts and networking opportunities.

PRESENTED BY

Imagine. Empower. Impact.

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FOR MORE INFORMATION R ECOU NCIL .COM

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SUMMER 2016


R ET EX P EN TIO AN S N & IO N

K MAR

IGE TELL N I ET

NCE

B BUILDING TOMORROW TOGETHER RS

E UR

T AC F U

N

MA

NOT JUST “GONE FISHING” FOR HEADQUARTERS RELOCATIONS BY MIKE ROSA

Recruiting headquarters is an important role for the Dallas Regional Chamber. Recruiting headquarters will continue to bring great companies, facilities, jobs, and people to the region, but it’s not the only way the DRC works to grow the economy and make the region prosperous. There has been, and will continue to be, a lot more to the Dallas Regional Chamber’s economic development strategy than meeting with companies and consultants in an effort to land the next big corporate headquarters relocation. I want to highlight five other important aspects of the DRC’s work in economic development, all of which are elements of our 2016-2020 strategic plan. 1. The DRC engages corporate retention and expansion projects. Jobs, investment, and tax base generated by companies that expand here, or that decide to stay here, are as meaningful as those associated with moves here. To these projects, the DRC brings the same resources and effort that we would for a corporate relocation. We’ll meet with the company’s decision-making team, make connections, provide compelling data and information, and support incentive

SUMMER 2016

requests, for example. However, one critical difference between a corporate relocation here versus expansion or retention is that, with the latter, the project is already an important corporate citizen in one of our regional cities. The economic development professionals that represent DFW cities are very capable and effective; they are on the front line of keeping and expanding companies in those cities. When engaging these projects the DRC aligns its role to fit each situation; leaning to be transparent, supportive and highly additive to the efforts of the home city. 2. We are targeting manufacturers. While there is no doubt our region is a highly competitive and successful place for corporate headquarters, our economy is much more than that. We are deep in many sectors, including

D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 1 5


B BUILDING TOMORROW TOGETHER manufacturing. Our manufacturing base is large and diverse; auto, aerospace, electronics, telecommunication, machinery among primary sectors. DFW was ranked the most competitive region in North America for food and beverage manufacturing in a recent, global study by Conway Data. To leverage these strengths and create jobs and investment here, the DRC commissioned a study that identified manufacturers around the U.S. that have multiple customers here but do not have an industrial presence here. The goal is to have a set of manufacturing targets that we can market to, meet, and encourage to establish a facility in our region. 3. The DRC provides market intelligence. The capabilities and publications of our research team, and the experience of the economic development team, makes the DRC a great stop for companies, investors, the media, analysts and others who want to understand our region, its drivers of success and its prospect for the future. A very recent example was a visit to the DRC by a major, internationally-based financial services firm. The team travelled to the U.S. and Texas, and DFW specifically, to personally investigate why this region has been so successful, and if and why our economic success would continue. Though not making a location decision to move or open an office here, at least not yet, this company’s interest in DFW had been peaked by recent announcements here and by the interests of its own clients in making investments here. So they decided to come and see for themselves what all the fuss was about. It’s common for our team to meet or call with investors and others that want to know more about our economic story and to understand our market. We’re confident that down the line these meetings end up supporting to our favor some considerable investment decisions.

4. Besides international financial firms, the DRC hosts and meets with many international delegations to DFW, and also takes marketing missions to targeted countries. As goals for 2016-2020, the DRC wants to lift our region’s international profile and recruit the U.S. or North American headquarters of global companies. We also want to support the establishment of more direct international flights here. Meeting face to face with companies and influential representatives from other nations is a great way to accomplish that. Delegations from Japan, China, Morocco, England, Canada, Australia, Tanzania, South Africa and India are top of mind recent visitors to the DRC. We partner frequently to host international visitors, working especially closely with the World Affairs Council; leveraging and supporting the WAC’s considerable expertise in these matters. We also engage DRC members, local communities and allies, Dallas Fort Worth International Airport and other organizations and partners that match well with a particular visit. We are also outbound, partnering with the organizations listed and more to take DFW’s show on the road. A mission to Mexico City was just concluded, and another to Japan and Hong Kong is scheduled for this fall. 5. The fifth and final aspect of the DRC’s work in economic development that I especially want to highlight is our work in innovation. I have mentioned several times during meetings and speaking engagements that recruiting a major corporate headquarters to the region certainly gets all the headlines, and feels like the summit of achievement in economic development. And it’s right up there. But I do believe that the true summit of economic development for a city or region is reached when the same or greater impact can be achieved by a company that grows right up from the region’s own soil, from a corporate, academic, talent, social, capital environment that is rich and fertile for innovation and entrepreneurs, with all the interactions and networks to allow the “next big things” to happen here. Throughout our region’s history there are many examples of this taking place, like Texas Instruments. Today, the DRC is a leader in the establishment of the Dallas Entrepreneur Center, the recruitment of the U.S. Patent and Trademark Office, and the founding of the Texas Research Alliance to bring our universities and companies together to promote collaborative research among them. I think the best way for you to be amazed, however, at all that’s going on in DFW in this space is to check out dallasinnovates. com, a portal to all things innovation in our region jointly developed by the DRC and D Magazine Partners.

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

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

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

1 6 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W

SUMMER 2016


VANTRUST REAL ESTATE AND HILLWOOD PROPERTIES’ PLANNED FRISCO STATION DEVELOPMENT.

THE CRANE REPORT

Summer 2016

Companies and people continue to flock to North Texas, which is seeing solid development activity across all real estate sectors. In each issue of the Dallas-Fort Worth Real Estate Review, we detail projects that are planned and underway in the region in The Crane Report. Data for the office and industrial markets is provided by Xceligent Inc. Data for the multifamily market is provided by Axiometrics Inc. BY CHRISTINE PEREZ

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

OFFICE

BILL CAWLEY

Chairman and CEO, Cawley Partners

“Great activity continues. That being said, tenants are being more deliberate in their decisions, as they feel rental rates have peaked. Sales are softening, for everything except fully stabilized, Class-A product.”

SUMMER 2016

SUSAN BLAIR COOK Senior Vice President, Avison Young

“Companies outside of DFW continue to have interest in this market. They’re focused more and more on the walkability amenities for their employees, and they’re continuing to increase the density of their offices.”

INDUSTRIAL

MULTIFAMILY

STEVE BERGER

BRIAN O’BOYLE

Senior Vice President, CBRE

“The demand pipeline still seems to be quite active, as absorption is keeping up with deliveries. I expect this year to be the peak for new construction, and for new starts to take a bit of a pause as we absorb the deliveries.”

Vice Chairman, ARA, a Newmark Company

“In the last 60 days, many of the banks have significantly curtailed the number of new multifamily construction loans issued to developers. This will cut back on the number of starts we should see in the next 12 months.”

D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 1 7


For North Texas office developments at least 10,000 square feet in size, Xceligent reports that 55 projects totaling 13.9 million square feet are under construction. Another 146 projects totaling 22.3 million square feet are planned or proposed. All are represented on this map; a sampling are labeled.

THE CRANE REPORT:

OFFICE ANNOUNCED + UNDER CONSTRUCTION

35 MEDICAL CENTRE

CARROLL PARK PLACE PHASE II

HARVEST COMMUNITY MEDICAL OFFICES

NE OF MORNINGSIDE ST AND S OAK ST

AVONDALE HASLET CENTER

HILLWOOD MIDTOWN

610 11000 OLD DENTON RD STONEGLEN DR GOLDEN TRIANGLE MEDICAL CENTER BEAR CREEK OFFICE PARK

HERITAGE TRACE PKWY

NW OF HERITAGE GLEN DRIVE AND NORTH BEACH STREET 7105 GOLF CLUB DR PAD SITE

3665 WESTERN CENTER BLVD

UNICORN LAKE

BARTONVILLE TOWN CENTER 4431 LONG PRAIRIE RD MEADOWLANDS ADDITION MONTEREY OFFICE PARK PRAIRIE COMMONS

SOUTHLAKE EXECUTIVE MEDICAL CENTER CARILLON OFFICE

6148 PRECINCT LINE RD

7TH & UNIVERSITY 2910 WINGATE ST

4101 HIGHWAY 121 BYPASS BLVD

2785 ROCKBROOK DR CARROLLTON TOWN CENTER PHASE II 801 ENTERPRISE DR RED HAWK OFFICE VILLAGE 2 PARK WEST MAIN STREET PLAZA CONNECTION COPPELL SIGNET PARK 9001 CYPRESS JEWELE WATERS BLVD GRAPEVINE STATION FREEPORT COMMONS

MIRON GROVE OFFICE PARK 8821 DAVIS BLVD HERITAGE OFFICE PARK

8825 N TARRANT PKWY THE PONDS

7114 MID CITIES BLVD

CROWN CENTRE

THE PLAZA OFFICE CONDOMINIUMS

TROPHY CLUB TOWN CENTER

6

THE APEX AT LAS COLINAS CROSSING PINNACLE TOWER II TEXAS MUSIC FACTORY DECKER AIRPORT 161 COMMONS HQ CENTER

1501 HUGHES RD 1105 GLADE RD COLLEYVILLE MEDICAL CENTER

PEDERSEN OFFICE PARK THE OFFICES @ HAMPDEN WOODS

EXPEDITION PLAZA

FROST TOWER FORT WORTH

SEC OF OAKDALE RD AND MACARTHUR BLVD

D. R. HORTON HEADQUARTERS

OVERTON TOWER III

UT SOUTHWESTERN VICTORY MEDICAL PLAZA MEDICAL CENTER 1200 6TH AVE 2701 MATLOCK RD

CLEARFORK PHASE

TEXAS SHALE TOWER WATERSIDE

4015 IH 20 W CHISHOLM TRAIL

NW OF W PLEASANT RD AND S BOWEN RD

MATLOCK PROFESSIONAL OFFICE PARK

BRYANT IRVIN PLAZA HULEN VILLAGE OFFICE

THE ATRIUM BEAR MEDICAL PLAZA

CANNON PROFESSIONAL PLAZA

BROAD STREET PLAZA GRAND REGENCY PROFESSIONAL DATA SOURCE: XCELIGENT INC., A COMMERCIAL REAL ESTATE RESEARCH FIRM IN PARTNERSHIP WITH NTCAR BUILDING HIGHPOINT COMMONS

2

SOUTHWEST AIRLINES

SIZE: 414,000 square feet KEY PLAYERS: McCarthy Building Cos. Inc. (general contractor), BOKA Powell (architect), Pacheco Koch (landscape architect and civil engineer), Reed Wells Benson (mechanical and electrical engineer), and L.A. Fuess Partners and Ponce Fuess (structural engineer). DETAILS: Called “Wings,” the expansion of Southwest Airlines’ Dallas headquarters includes a 414,000-square-foot office building and an attached 367,000-square-foot training center.

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3

GARDENIA VILLAGE OFFICE PARK BLDGS. 1-3

OLD TOWN BLVD NORTH

THE VILLAGE CENTRE PHASE II

SIZE: 200,000+ square feet DEVELOPER: Hillwood Urban LEASING AGENT: Bill Brokaw of Hillwood Urban DETAILS: Hillwood Urban has reached an agreement with EF Properties LC to be the office developer for 20 acres of land at Interstate 635 and Montford Road, the former Macy’s site at Valley View mall. The property sits within the Dallas Midtown mixed-use development project.

THE VILLAGE AT CROSS ROADS

CYPRESS OFFICE

OAKMONT OFFICE CONDOS

ANNOUNCED DEVELOPMENTS 1

8500 E HIGHWAY 380 THE PRESIDIO BLDG 2

FRISCO STATION

SIZE: 228,000 square feet DEVELOPERS: VanTrust Real Estate and Hillwood Properties LEASING AGENT: Cushman & Wakefield DETAILS: A speculative multitenant office building will launch the first wave of development at this 242-acre project at Warren Parkway and the Dallas North Tollway. Construction of the seven-story building will begin in September and is scheduled for completion in August 2017.

SUMMER 2016


WHISPERING FARMS COMMERCIAL CENTER BLDGS 1-6 THE FORUM AT PROSPER 181 WEST 1840 S MAIN ST LAKE BAYLOR FOREST MCKINNEY II CONLEY CRESCENT BLVD COMMONS PROSPER PARC VIRGINIA CROSSINGS PARKWAY PLAZA NE OF METHODIST CHESTNUT COMMONS ELDORADO MCKINNEY PKWY AND MCKINNEY OFFICE CONDO TEEL PKWY PLAZA SUMMIT PARK II CUSTER CREEK MEDICAL

A CLOSER LOOK AT COLLIN COUNTY 4645 WYNDHAM LN

SE OF SMOTHERMAN RD AND FM 423 BLDG 1

SE OF TECHNOLOGY DR & DALLAS N TOLLWAY FRISCO SQUARE

MCKINNEY MEDICAL OFFICE PARK

STEWART CREEK OFFICE CENTER I 332 W LEBANON RD

ONE FOUNTAIN COURT WESTSIDE MARKET PHASE II

3

STONEBROOK PARK STARWOOD PROFESSIONAL BUILDING II THE GATE VICTORY AT STONEBRIAR

6351 PRESTON RD PHASE II PRESTON @ WADE CROSSING BLDG 12

FRISCO BRIDGES CAPITAL ONE

TOYOTA HEADQUARTERS

NW OF W FM 544 & N MURPHY RD

DEXTER PROFESSIONAL PARK ALCATELLUCENT CITYLINE STATE FARM PALISADES CENTRAL NORTH DALLAS BLDG 4 MEDICAL CENTER II

5

TOLLWAY CENTER

ERS

1

PARK TOWER AT DALLAS MIDTOWN

2

2505 TURTLE CREEK BLVD

LAKEVIEW MEDICAL COMMONS BLDGS. 2-4

FOUR ENERGY SQUARE

SHALEM PARK

4

ROLEX TWO ARTS PLAZA MCKINNEY & OLIVE THE UNION TWO VICTORY PARK

PRESTON BEND ONE PRESTON PARC II

VICTORY PLAZA AT CUSTER UNIT 6

VILLAGES OF EXCHANGE PARKWAY

CORPORATE CENTER FOUR

WATTERS JUNCTION

TWIN CREEKS OFFICE ANGEL FIELD CENTER

ONE FOUNTAIN COURT

ALLEN PLACE WATTERS CREEK OFFICE

WATTERS CREEK AT MONTGOMERY FARM

PRESTON LEGACY CENTER

PLATINUM VILLAGE OF TOWER LAKES ON TENNYSON CENTRE AT COMMUNICATIONS THE COLONY THE BRIDGES AT SANYO CASTLE HILLS LEGACY ENERGY SPRING CREEK BUSINESS HEADQUARTERS WINDHAVEN COMMONS PARK PLACE ONE PARKWAY PROFESSIONAL PLAZA

● ANNOUNCED ● UNDER CONSTRUCTION

6901 ROWLETT RD

MEADOW GREEN MEDICAL CENTER

FORMER CHASE BANK BUILDING

MCKINNEY MEDICAL OFFICE PARK

SHOAL CREEK BLDG 1

MIDTOWN MEDICAL CENTER

PARK CITIES PLAZA

4401 W LOVERS LN

CAMPBELL CROSSING OFFICE PARK

200 N 5TH ST

FOUR GALLERIA TOWER

VICTORY AT RIVERSIDE

399 MELROSE DR BLDG 2

MURPHY MEDICAL OFFICES

LEGACY WEST

1015 SAM RAYBURN TOLLWAY

THE SHOPS OF INDEPENDENCE

THE FORUM AT WADE PARK FRISCO HIGHLANDS OFFICE PARK FRISCO STATION THE STAR

STONEBRIAR COMMONS ON LEGACY BLDG 9

QUEST RESOURCES

5001 COLLIN MCKINNEY PKWY

7638 STONEBROOK PKWY

LEGACY MEDICAL PARK PHASE III

PRESTON PARKER PROFESSIONAL BUILDING

ALMA OFFICE CONDOS IN CRAIG RANCH

GALLOWAY MEDICAL ARTS 910 N BELT LINE RD SUNNYVALE PROFESSIONAL PLAZA

SOLA ON LAMAR DAVIS STREET MARKET

UNDER CONSTRUCTION 5

3400 @ CITYLINE

6

SIGNET JEWELERS

SIZE: 310,000 square feet DEVELOPER: Transwestern Development Co. LEASING AGENTS: Duane Henley and Nathan Durham with Transwestern DETAILS: Construction of this speculative office building, designed by BOKA Powell, will get underway this summer. It will sit adjacent to the mixed-use CityLine project and provide easy access to both U.S. 75 and the George Bush DART station.

DUNCANVILLE MEDICAL COMPLEX

530 E PLEASANT RUN RD

ONLINE EXTRA

THE CRANE REPORT: INTERACTIVE VERSION

online at dfwrealestatereview.com

4

3001 TURTLE CREEK

SIZE: 350,000 square feet DEVELOPER: Hillwood Urban DETAILS: A joint partnership with the Perot family, this latest development from Hillwood Urban will include a one-acre park that connects to the Katy Trail that’s being designed by The Office of James Burnett, the landscape architect behind Klyde Warren Park. The 17-story office tower is being designed by Jon Pickard of Pickard Chilton in New Haven, Conn., in collaboration with Dallas-based BOKA Powell.

SUMMER 2016

SIZE: 225,000 square feet DEVELOPER: Billingsley Co. DETAILS: This new campus for Signet Jewelers, the world’s largest retailer of diamond jewelry (operating under Zales, Kay Jewelers, Jared, and other brands), will sit along the shores of North Lake at Cypress Waters, north of Interstate 635 at Belt Line Road. It also will include a 31,000-square-foot manufacturing facility.

D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 1 9


THE CRANE REPORT:

DENTON CREEK BUSINESS PARK

US 380 BUSINESS PARK

WESTGATE BUSINESS PARK

MARKET STREET INDUSTRIAL PARK

INDUSTRIAL ANNOUNCED + UNDER CONSTRUCTION

LEWISVILLE CORPORATE CENTER

GATEWAY BUSINESS PARK LOTS 6, 7 & 8 SPEEDWAY DISTRIBUTION CENTER BLDG C

ANNOUNCED PROJECTS 1

LOGISTICENTER AT DALLAS

SIZE: 1.1 million square feet DEVELOPER: Demody Properties LEASING AGENT: Dave Anderson with CBRE DETAILS: Reno, Nev.-based Demody Properties acquired 60 acres at Bonnie View and Telephone roads in South Dallas for this bulk distribution center complex. The first 622,440-square-foot phase is expandable to 1.1 million square feet. Phase two will total 444,600 square feet.

NORTHPORT 35 BUSINESS CENTER BLDGS B&C FARMER BROTHERS COMPANY ALLIANCE CENTER NORTH 15

● ANNOUNCED ● UNDER CONSTRUCTION

ALLIANCE WESTPORT 18

LEGO

ZANDER PLACE DCT WATERS RIDGE PARKVIEW COMMERCE CENTER LAKESIDE RANCH KUBOTA TRACTOR CORP

WAL-MART

PROLOGIS PARK 121

4

LOGISTICS CENTER II

12500 WILLOW SPRINGS RD 1005 CHISOLM TRL

MAJESTIC AIRPORT CENTER DFW

DFW NORTH II

MAIN STREET COPPELL S3 ROYAL TECH 18

LOGISTICS CENTER III & IV

1363 BRUMLOW AVE BLDG 3

PARC 114 BLDG 9 DFW EAST LOGISTICS CENTER

NORTH RIDGE FORT WORTH RAILHEAD LAND RAILHEAD INDUSTRIAL PARK RAILHEAD PARC INDUSTRIAL NORTH PARK BLDGS 1-4

1815 RELIANCE PKWY

DFW/161 DISTRIBUTION CENTER

CENTREPORT RIVERBEND WEST DISTRIBUTION CENTER

GSW GATEWAY PHASE II 1460 AVENUE S

COUNTY LINE RD LIBERTY PARK GSW NORTH TRINITY CROSSING TRINITY 161 TRADE CENTER 2909 W OAKDALE RD

WILDLIFE COMMERCE PARK

360 GLOBAL LOGISTICS PARK

901 S CHERRY LN

25 LOGISTICS CROSSING 2

2317 W ARKANSAS LN

2

PORT LOGISTICS GREAT SOUTHWEST

SIZE: 83,125 square feet DEVELOPER: Port Logistics Realty DETAILS: PLR has acquired one of the last remaining sites in the Great Southwest Industrial District for this new industrial building, which will target e-commerce users. Construction is expected to get underway in late summer 2016.

SOUTH CENTRAL DISTRIBUTION CENTER II

4900 SUN VALLEY DR

FIRST ARLINGTON COMMERCE CENTER II

COOPER IH 20

ARLINGTON COMMERCE CENTER

MOUNTAIN CREEK CORPORATE CENTER 120/161 CROSSING

KENNEDALE PKWY F

ONLINE EXTRA

THE CRANE REPORT: INTERACTIVE VERSION

online at dfwrealestatereview.com

1102 ENTERPRISE PL

619 S WISTERIA ST HERITAGE COMMERCE CENTER

UNDER CONSTRUCTION 3

INTERCERAMIC HEADQUARTERS

SIZE: 330,000 square feet DEVELOPER: Billingsley Co. KEY PLAYERS: MYCON General Contractors (construction), Pritchard Associates (project management), Azimuth Architecture (architect) DETAILS: This $11.4 million development will include both office and warehouse space for Interceramic, a large North American manufacturer and distributor of ceramic tile and natural stone. The complex is scheduled for completion this fall in Carrollton.

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SUMMER 2016


PROSPER BUSINESS PARK

For North Texas industrial developments at least 10,000 square feet in size, Xceligent reports that 92 projects totaling 19 million square feet are under construction. Another 157 projects totaling 49.7 million square feet are planned or proposed. All are represented on this map; a sampling are labeled.

EMPLOYEE SOLUTIONS INC THE TECH CENTER ON GREENVILLE CREEKVIEW 121 BLDGS 1-4 DOZIER PLACE

PLANO TECH CENTER 8 PLANO COMMERCE PARK SITE A

3

PLANO TECH CENTER 12

RAGING WIRE PROLOGIS VALWOOD CORPORATE CENTER BLDGS 1-4

CHANNELL COMMERCIAL

DIPLOMAT I

SW OF MARQUIS AND NICHOLSON BLDG 2

MERCER BUSINESS PARK

NORTHGATE DIST CENTER

11070-11090 N STEMMONS FWY

3600 LEON RD

9749 CLIFFORD DR

PROLOGIS/ BUCKNER LAND

I-30 BUSINESS CENTER BLDG 3

SOUTHWEST DISTRIBUTION CENTER MOUNTAIN CREEK BLDG 2

PLANNED POINTSOUTH LOGISTICS & COMMERCE CENTRE INTERMODAL BUSINESS DALPARC CENTER IH 20

PROLOGIS PARK 20/35 LAND

SOUTHFIELD PARK 35

INTERSTATE COMMERCE CENTER

1

CROSSROADS TRADE MIDPOINT EAGLE PARK CENTER BLDG III LOGISTICS 20/35 PARK CENTER TWENTY

SUNRIDGE BUSINESS PARK SOUTHPORT TRADE CENTER

I 35 INTERCHANGE I

DALPORT TRADE CENTER 6

SOUTHPORT LOGISTICS PARK DUKE INTERMODAL III SE OF PLEASANT RUN RD & SUNRIDGE BLVD DALPORT TRADE CENTER 3

DFW INLAND PORT

DATA SOURCE: XCELIGENT INC., A COMMERCIAL REAL ESTATE RESEARCH FIRM IN PARTNERSHIP WITH NTCAR

4

PARK WEST CROSSING

SIZE: Four buildings DEVELOPER: ML Realty DETAILS: The project’s first phase brought four buildings totaling about 300,000 square feet. The second phase, scheduled for completion by the end of 2016, will add another four buildings, ranging in size from 61,400 square feet to 92,000 square feet. The development sits just north of Interstate 635 on .

SUMMER 2016

5

PARC GSW

SIZE: 682,491 square feet DEVELOPERS: Jackson-Shaw and Clarion Partners LEASING AGENTS: Brett Owens, John Brewer, and Ben Phillips with Transwestern DETAILS: This 50-acre development is designed for users seeking anywhere from 100,000 square feet to nearly 700,000 square feet. Located within the Great Southwest Industrial District, it will sit along State Highway 161.

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


WOODLANDS APARTMENTS I

THE CRANE REPORT:

EAST END LOFTS

!!

MULTIFAMILY

SEVENTWELVE

ANNOUNCED + UNDER CONSTRUCTION

DISTRICT OF HIGHLAND VILLAGE

ANNOUNCED DEVELOPMENTS 1

RIVER WALK VILLAGE

CRESCENT COMMUNITIES-UPTOWN

● ANNOUNCED ● UNDER CONSTRUCTION

UNITS: 200 DEVELOPER: Crescent Communities DETAILS: This new 21-story project will sit at McKinnon and Randall streets in Uptown, at the edge of the Harwood District and near the entrance to the Dallas North Tollway. Designed by WDG Architecture, construction should kick off at the end of 2017. Crescent Communities also has a project underway in the Bishop Arts district.

ENCLAVE AT WESTPORT

ONLINE EXTRA

THE CRANE REPORT: INTERACTIVE VERSION

DOLCE LIVING HOME TOWN PH 2

online at dfwrealestatereview.com

ARLINGTON COMMONS PH I

HUNTER PLAZA PINNACLE BANK PLACE THE KELTON AT CLEARFORK

101 CENTER

HIGHPOINT ON SOUTH MAIN

404 BORDER

THE GROVE AT WATERSIDE

2

COLUMBUS REALTY PARTNERS-MCKINNEY

UNITS: 320 DEVELOPER: Columbus Realty Partners DETAILS: Multifamily pioneer Robert Shaw is expanding his reach in North Texas with this new development near McKinney’s historic town square. The project, which will include 45,000 square feet of office space and 20,000 square feet of retail space, will sit on nine cityowned acres at Davis and McDonald streets. Construction is expected to get underway in January 2017.

VILLAGGIO PARC AT MANSFIELD THE MAIN STREET LOFTS

!

MANSFIELD ON THE GREEN

UNDER CONSTRUCTION 3

THE MAXWELL

UNITS: 325 DEVELOPER: StreetLights Residential DETAILS: One of the most active developers in North Texas, StreetLights Residential has begun work on the second phase of this three-phase project within The Canals at Grand Park in Frisco. Apartments in the four-story building will range in size from 500 square feet to 1,800 square feet. Two-story “treehouse” units will feature a game room, screenedin porch, and private garage.

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SUMMER 2016


THE MANSIONS OF LITTLE ELM

2 STRATFORD LAND MCKINNEY RANCH DEV POST OAK APARMTENTS PARKSIDE AT CRAIG RANCH II

PALLADIUM MIXED USE PARKVIEW APARTMENTS THE ABLON AT FRISCO SQUARE

3

STREETLIGHTS AT THE CANALS AT GRAND PARK

ORIGIN AT FRISCO BRIDGES ROSE HILL APARTMENTS

MCKINNEY RBAN VILLAGE

TWIN CREEKS CROSSING II

JEFFERSON STONEBRIAR

DOLCE LIVING TWIN CREEKS PH I

HUNTINGTON APARTMENTS

THE GRAND AT LEGACY WEST

5

ASCENT VICTORY PARK

6

KATY STATION

7

PARC AT WHITE ROCK

UNITS: 300+ DEVELOPER: Greystar DETAILS: More residential is coming to Uptown with this twin-tower development near American Airlines Center. Scheduled to open in the summer of 2017, features include an infinity-edged pool, cabanas, multiple resident lounges, and a rooftop fitness studio and outdoor patio.

AVILLA PREMIER PLACE

!

DISCOVERY CASTLE HILLS BROADSTONE PARK PLACE THE ELLIS

HEBRON 121 STATION III

LAKEVIEW POINTE BROADSTONE 51/51

PARSON`S GREEN

GABLES WATER STREET

CREST AT LAS COLINAS STATION APARTMENTS

BRADY

TRINITY GREEN

JEFFERSON GALATYN PARKWAY

EASTSIDE II HARMONY HILL I

MARK AT MIDTOWN PARK PRESTON HOLLOW VILLAGE BANDERA APARTMENTS

LOVERS AND PRESTON CREST AT AURA ON OAK PARK MCKINNEY

HARRY HINES BOULEVARD MIXED

!

OAKS 5TH STREET CROSSING AT CITY CENTER TERRA LAGO

THE CALLIE

MERCER CROSSING AT LUNA II LINCOLN WATERS EDGE II JEFFERSON RIVERSIDE

AURA ONE90 ALEXAN CITYLINE I

BUCKINGHAM FLATS

MODERA GALLERIA

AMLI ON RIVERSIDE ALEXAN LAS COLINAS

PALISADES VILLAGE I

IMT PRESTONWOOD

AURA 5515

THE PARC AT WYLIE

HERITAGE CREEKSIDE

MIRO

1 56 4

CANYON IN OAK CLIFF MIXED USE ALTA YORKTOWN

VILLAS CENTRAL PARK

OAK FARMS DAIRY

VILLAGE OF ROWLETT

AT 7 PARC WHITE ROCK FRMR SALTILLO APARTMENTS ALEXAN HENDERSON THE CASE BUILDINGS BUTLER BROTHERS BUILDING BROADSTONE FARMERS MARKET

UNITS: 461 DEVELOPER: Genesis Real Estate Group DETAILS: This 30-story tower will be the tallest in Victory Park when it opens in 2017. Designed by EDI International, the units will range in size from 614 to 3,748 sq. ft. Amenities will include a rooftop dog park and an urban cycling club.

THE ENCLAVE AT MIRA LAGOS I

DATA SOURCE: AXIOMETRICS INC.

4

MODERA HALL STREET

UNITS: 340 DEVELOPER: Mill Creek Residential DETAILS: One of the area’s most active multifamily developers has just begun work on this project at the eastern edge of downtown Dallas. Situated on Hall Street between Ross Avenue and North Central Expressway, the project will include a dog park, resort-style pool, and fifth-floor sky lounge.

SUMMER 2016

UNITS: 291 DEVELOPER: Richman Property Services Inc. DETAILS: Served by a DART commuter train station, this project is being built at the corner of Lawther Drive and Northwest Highway and is scheduled for completion later this year.

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


S SCORECARD

CRESTRON ELECTRONICS LEASED 56,000 SQUARE FEET AT LEGACY TOWER IN PLANO.

SCORECARD

Summer 2016

New tenants are moving into Dallas-Fort Worth, but a great deal of the leasing activity of this past quarter has come from existing tenants expanding into larger digs. That’s why vacancies are tightening, even with new construction that’s underway. Here, we look at the top five office, industrial, and retail leases across North Texas during the past three months. As always, data is provided by Xceligent Inc. BY CHRISTINE PEREZ

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

OFFICE

NORA HOGAN

Principal, Transwestern

“The DFW real estate market will continue to outperform the rest of the country. We have the best combination of talent and a pro-business environment.”

SUMMER 2016

INDUSTRIAL

RETAIL

JIHANE BOURY

BLAKE ANDERSON

MIKE GEISLER

“The office market is performing extremely well. The district of Harwood is 96 percent leased, and we will break ground on Harwood No. 10 this summer.”

“We should see an increase in vacancy, as supply is catching up with demand, but it should not aff ect rent growth in major industrial submarkets.”

“The DFW retail market remains strong and seems to look stronger each month. Occupancy of approximately 94.2 percent is at an all-time high.”

Director of Leasing, Harwood International

Senior Managing Director, Cushman & Wakefield

Partner, Venture Commercial Real Estate

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S SCORECARD

OFFICE LEASES

2

3

1

5

0-5,385 SF

4

5,38516,800 SF 16,80047,696 SF 47,696112,000 SF 112,000232,000 SF 232,000500,000 SF

LARGEST OFFICE LEASES

1

ATOS SE

SIZE: 100,052 square feet at Connection Park I TENANT REPS: Mike Wyatt, Rick Hughes, and Will Bauer of Cushman & Wakefield LANDLORD: Stream Realty, Chief Partners, and Alex Brown Realty LEASING AGENTS: Ramsey MIKE WYATT March, Tim Terrell, Chase Lopez, and Chris Jackson with Stream DETAILS: Atos IT Solutions and Services Inc., a North American affiliate of European IT services company Atos SE will occupy three floors in the newly developed office building near Freeport Parkway and Interstate 635 in Irving.

2

CRESTRON ELECTRONICS

SIZE: 84,500 square feet at Legacy Tower TENANT REPS: Bob Hagewood and Jeremy Kelly, Stream Realty Partners LANDLORD: Trammell Crow Co. and Principal Real Estate Investors LEASING AGENTS: Dennis Barnes, Celeste Fowden, and Alexandra Jennings of CBRE DETAILS: The New Jersey-based technology firm is expanding its North Texas operations with a move to this 13-story tower along the Dallas North Tollway in Plano, where it will occupy three floors.

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FIRST AMERICAN TITLE

SIZE: 76,750 square feet at Connection Park II TENANT REPS: Matt Heidelbaugh, John Gallivan, and Nick Jacobs with Cushman & Wakefield LANDLORD: Stream Realty, Chief Partners, and Alex Brown Realty LEASING AGENTS: Ramsey March, Tim Terrell, Chase Lopez, and Chris Jackson with Stream DETAILS: The title company is relocating from Solana business park in Westlake to this 141,000-square-foot office building, which should be ready for occupancy next summer. The project was designed by Powers Brown Architecture; EMJ Construction is the general contractor.

4

COMPASS PROFESSIONAL HEALTH SERVICES

SIZE: 58,000 square feet at Bank of America Plaza TENANT REPS: Charlie Beck and Mike Wyatt of Cushman & Wakefield, and Robert Blount, Jeff Ellerman, and Searcy Ferguson of CBRE LANDLORD: Metropolis Investment Holdings LEASING AGENTS: Joel Pustmueller, Russ Johnson, and Travis Gallivan DETAILS: The healthcare administration firm is moving from the Centrum on Oak Lawn Avenue to Dallas’ tallest building, where it will occupy the 57th and 58th floors.

5

CHUBB INSURANCE SIZE: 82,000 square feet at Bryan Tower TENANT REP: Phil Puckett with CBRE LANDLORD: Spire, represented inhouse by Campbell Henry, director of broker services DETAILS: After considering other office options downtown and in other submarkets, the world’s largest publicly traded property and casualty insurer decided to keep its home in the iconic Bryan Tower in downtown Dallas.

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S SCORECARD

INDUSTRIAL LEASES

1

23

12540,810 SF

5

40,810153,920 SF 153,920355,076 SF 355,076670,000 SF

4

670,0001,040,850 SF 1,040,8503,018,708 SF

DATA SOURCE: XCELIGENT INC., A COMMERCIAL REAL ESTATE RESEARCH FIRM IN PARTNERSHIP WITH NTCAR

1

WESCO AIRCRAFT HOLDINGS

SIZE: 309,357 sq. ft. in Northport 35 Business Center TENANT REPS: Brad Struck and Jim Hazard of E Smith Realty Partners LANDLORD: Stream Realty Partners, represented in-house by Cannon Green and Bob Hagewood DETAILS: Wesco Aircraft, which provides supply-chain services

2

to the global aerospace industry, is moving to a new facility being developed by Stream Realty, at 4250 Dale Earnhardt Way in Northlake.

AMAZON

SIZE: 318,488 square feet at Railhead Industrial Park TENANT REPS: Ryan Keiser of CBRE LANDLORD: Prologis, represented by Donnie Rohde and Matt Carthey of Holt Lunsford Commercial DETAILS: The world’s largest online retailer continues its expansion in North Texas with a new facility at 4601 Gold Spike in Fort Worth.

LARGEST INDUSTRIAL LEASES

3

QUORUM INTERNATIONAL

SIZE: 305,000 square feet at Railhead Industrial Park LANDLORD: Sun Life Assurance Co., represented by Nick Talley at Bradford Commercial Real Estate Services DETAILS: One of the oldest tenants in the 633-acre Railhead Industrial Park, Quorum is expanding with an early renewal and addition of 101,000 square feet of space. The company manufactures designer lighting and ceiling fans.

4

NICK TALLEY

AMERICAN TEXTILE CO.

SIZE: 201,600 square feet at JJ Lemmon Distribution Center TENANT REPS: Forshey Hobler and Elizabeth Jones of JLL LANDLORD: Trammell Crow Co., represented by John Hendricks and Kacy Jones of CBRE DETAILS: Previously based at Pinnacle Park, American Textile Co. is doubling the size of its North Texas operations and moving to the new center at 32777 LBJ Freeway in southern Dallas.

5

LEVANTINA USA INC.

SIZE: 100,000 square feet at Mercer Business Park TENANT REP: Alex Coe of Cresa LANDLORD: Billingsley Co., represented in-house by George Billingsley DETAILS: The natural stone company inked a 10-year lease in building No. 3 at this new business park at Interstates 35 and 635. With brisk demand, Billingsley plans to soon begin work on a fourth building.

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S SCORECARD 4

RETAIL LEASES

1

3 5 < 2,890 SF

2

2,8906,916 SF 6,91617,150 SF 17,15045,362 SF 45,362106,207 SF

DATA SOURCE: XCELIGENT INC., A COMMERCIAL REAL ESTATE RESEARCH FIRM IN PARTNERSHIP WITH NTCAR

LARGEST RETAIL LEASES

1

SPECâ&#x20AC;&#x2122;S WINES, SPIRITS & FINER FOODS

SIZE: 25,908 BLAKE SHIPP square feet LOCATION: 2416 S. Stemmons Freeway in Lewisville TENANT REP: Jody Detmore with SPF Brokerage LLC LANDLORD: Lakepointe Crossing, represented by Blake Shipp with The Weitzman Group DETAILS: The family-owned liquor store chain is expanding its presence in North Texas with a new store along Stemmons Freeway in Lewisville.

3

SIZE: 8,000 square feet LOCATION: State Highway 121 and Glade Road in Euless TENANT REP: Dennis Leibovitz of The Retail Connection LANDLORD: Glade Infrastructure LLC, represented by Zach Knutson of North Rock Real Estate and John Middleton DETAILS: Lazy Dog opened its first Texas venue in Addison last year and will bring its second to the new Glad Parks development. Modeled after Rocky Mountain retreats, the small chain also has 17 locations in California and one in Las Vegas.

4 2

GENUINE PARTS CO.

SIZE: 15,080 square feet LOCATION: 3021 Alta Mere Drive in Fort Worth TENANT REPS: Jeff Kittleson and Chris Sacks with CBRE in Dallas LANDLORD: Hickman Family LP DETAILS: The space will be used for a new NAPA retail outlet in Fort Worth.

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LAZY DOG RESTAURANT & BAR

ROCKLER WOODWORKING AND HARDWARE

SIZE: 7,075 square feet LOCATION: 2930 Preston Road in Frisco TENANT REPS: Steve Lieberman and Michael Thum of The Retail Connection LANDLORD: Iven Trust Property Management/IA South Frisco Village LLC, represented by Craig Wielansky of L3 DETAILS: Since its founding as a small mail-order business in Minneapolis in 1954, Rockler has grown into a national chain of stores. Along with the new Frisco location, it has other stores in Arlington and Richardson, and is opening one soon in Garland.

5

ASCENSION COFFEE

SIZE: 2,654 square feet LOCATION: 1601 Elm St. in Dallas TENANT REPS: Jack Gosnell and Sasha Levine with CBRE LANDLORD: Woods Capital Partners, represented by Amy MacLaren with CBRE DETAILS: This Thanksgiving Tower location is the latest for this popular, Australian-style coffee shop, with another venue recently opening in the Crescent in Uptown.

SUMMER 2016


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BACK ROW, LEFT TO RIGHT: Steve Bancroft, Rob Riner, Drexell Owusu, Chris Teesdale, Terrence Maiden FRONT ROW: Brent Jackson, Amanda Moreno Lake, Mike Rader

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R ROUNDTABLE

L AND

OF

OPPORTUNITY FAR NORTH DALLAS IS SEEING EXPLOSIVE GROWTH, BUT DEVELOPMENT PIONEERS ARE ALREADY PLANTING STAKES IN THE NEXT BIG THING: SOUTHERN DALLAS COUNTY. BY CHRISTINE PEREZ

|

PHOTOGR APHY BY MICHAEL SAMPLES

A low cost of doing business, an abundance of land, low taxes, and a business-friendly environment. Those are just a few of the reasons companies are discovering Southern Dallas County. It’s also the location. The region’s transportation infrastructure - multiple interstate highways, rail lines, and airports - allows businesses to serve the entire North American continent, while being only minutes from downtown Dallas. Companies such as Amazon, BMW, Frito-Lay, and Whirlpool have established large industrial centers. Now, momentum is building to bring more retail and residential to the southern sector, too. To get an update on activity, we gathered a panel of investors and developers helping to pioneer the region. Here’s what they had to say.

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R ROUNDTABLE CHRISTINE PEREZ: Let’s start by getting a little background info and learning more about what each of you do.

TERRENCE MAIDEN: I’m executive vice president at Corinth Properties, a retail and mixed-use development firm owned by Frank Mihalopoulos, who has been keeping us busy in southern Dallas. We just finished up Glen Oaks Crossings, a mixed-use development anchored by WalMart and we’ll add some residential to it. That area was considered a food desert, so it’s been well-received by the community. We’re also involved with The Canyon in Oak Cliff, a 211-acre mixed-use development, with Stratford Land. We recently broke ground on a Marriott Residence; Civitas and the EB-5 program is a part of that development. And we’re doing Alexan in West Dallas with Trammell Crow. Then finally, the big project that we’ve recently been tapped to redevelop is Southwest Center Mall. I’m a product of Oak Cliff and went to Carter High School. BRENT JACKSON: I’m president of Oaxaca Interests. We started finding opportunities in Oak Cliff in 2007, and our flagship project is Sylvan Thirty. It’s a mixed-use development comprised of 201 lofts — don’t ask me where we got the one extra loft—and then about 48,000 square feet of retail, anchored by a local grocer named Cox Farms Market. They’re a fourth-generation grocer out of Duncanville

STEVE BANCROFT

As senior managing director of Trammell Crow Residential, Steve Bancroft has worked on a dozen multifamily projects valued at more than $650 million and totaling about 3,700 units.

whose roots are actually in Hereford. We’ve been very selective on what type of tenants go into that space, particularly local and regional tenants. We’re trying to steer clear of national brands, so curating that has been a challenge but also a welcomed opportunity. We have several land holdings in West Dallas, and we’re also actively pursuing the redevelopment of the Chase Bank building that’s across the street from Sylvan Thirty. DREXELL OWUSU: I’m managing director and chief of staff at Civitas Capital. We’re a real estate private equity group that invests primarily through the EB-5 program here in Dallas. We’ve raised about $350 million of projects in and around

BRENT JACKSON

As president of Oaxaca Interests, Brent Jackson strives to create value by focusing on producing strong financial yields, progressive designs, and empowering surrounding communities.

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TERRENCE MAIDEN

Executive vice president of Corinth Properties, Terrence Maiden focuses on development and leasing in the retail market and has a particular interest in the southern sector.

AMANDA MORENO LAKE C&K Capital owner Amanda Moreno is a micro-market real estate investor who strives to rehabilitate planned development areas and better the neighborhood and surrounding community.

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R ROUNDTABLE

Dallas, including seven investments in southern Dallas. We also manage the GrowSouth fund, a real estate investment vehicle focused on real estate investments in southern Dallas. It’s got a double bottom line, because we’re also trying to ultimately seed and help southern Dallas grow. CHRIS TEESDALE: I’ve been with Colliers International for 11 years and industrial real estate has been my specialty since 1978. We got planted in South Dallas about 2007 and have been working with Mike Rader down there on quite a few projects. We’ve had a long run down in the region. MIKE RADER: I’ve been in southern Dallas a long time, too. I’m a Tarrant County

DREXELL OWUSU

As managing director of Civitas Capital, Drexell Owusu heads the firm’s growth initiatives and covers all lines of business, including EB-5 funds and alternative investments.

SUMMER 2016

MIKE RADER

Prime Rail Interests President Mike Radar specializes in the development of large industrial parks. He has more than 21 years of experience and helped pioneer the southern sector.

ROB RINER

guy that came to Dallas County. I made a passive investment in 1984 at the corner of Interstates 20 and 45, and it has turned in to be more than a passive investment over the years, and now I’m very active in trying to bring development to that corridor. We’ve had a lot of opportunity show up and, finally, after about seven years of effort, I got Union Pacific Railroad to agree to build their intermodal facility and that has

The president and CEO of Rob Riner Cos. has completed more than 10 million square feet of real estate deals and developed more than 1.8 million square feet of industrial space.

CHRIS TEESDALE

As executive vice president of Colliers International, Chris Teesdale co-leads the firm’s Supply Chain Real Estate Advisors group. He has more than 32 years of industrial experience.

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R ROUNDTABLE been the stimulator for creating an Inland Port in that area. The Inland Port is very crucial to the development of industry and bringing goods into this area to support all the population growth for the whole corridor—Dallas, North Dallas, everybody. So we’re having some good times right now. We’ve put together a 900-acre park, Sunridge Business Park, and it has some new tenants in it. Now I’m working on a 3,000-acre real estate industrial park. We’re trying to bring manufacturing into that area and create some new dynamics for the whole corridor. ROB RINER: You done? RADER: Well, I can keep going but... RINER: I know. Well, I’m Rob Riner and I follow guys like Mike Rader, who went to L.D. Bell High School and the University of Texas at Arlington—the only other guy in the business besides me who has done both of those things. So I hang around the rim and just pick up his crumbs. I’m a real estate developer by training. My last tour of duty was with Panattoni, but I’ve gone back out to focus on Rob Riner Cos. full time, which just had its 10-year anniversary. My most recent deals in southern Dallas are the Procter & Gamble building down in Wilmer for 1.4 million square feet, and right before I left Panattoni we acquired 100 acres in Lancaster in a joint venture with MetLife to build out part of Dallas Avenue, which would eventually be 4 million square feet. Lastly, we’re just wrapping up two buildings that are both 211,000 square feet at Park and 35. Those will come online in May. Other than that, I’ve been looking at South Dallas since my days at First Industrial in 2004 and I’ve watched it develop, as Mike laid the infrastructure and it actually turned it into a market. STEVE BANCROFT: I’ve been with Trammell Crow for 18 years. I started in industrial in 2005 and then really got into building residential with Trammell Crow Residential in 2011. I cover Dallas, Austin, Fort Worth, Denver, and the Pacific Northwest for TCR. We’ve got about 22 deals either under construction, financed, or completed in those markets, and about a $1.5 billion capitalization since then. In southern Dallas, we’ve done a deal in Oak Cliff over by Methodist Hospital, we have a deal next to Brent in West Dallas, and a deal in the Design District as well. AMANDA LAKE: I’ve been working in Oak Cliff for 26 years; I started back when Bishop Arts wasn’t Bishop Arts. It was all boarded up—I’ve

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MIKE RADER

got pictures to prove it. I’ve done a lot in Oak Cliff, and in Waxahachie and Ennis, as well. I’ve probably pulled about 280 certificate of occupancy permits in the last year alone, so I’ve become a zoning expert. I’ve been very involved in Oak Cliff in almost every boarding commission you can think of or every planned development that’s ever been created, I’ve been involved. But that’s what I do, I like old things and I turn them into beautiful things and revitalize them.

What led you to get involved in developing or marketing commercial real estate in southern Dallas?

RADER: I participated in a partnership that made an investment around the three interstate highways, thinking I had an opportunity to get out in about three years. But it has taken a quite of bit longer time to get my investment returned. I saw a lot of opportunity for that interstate highway system to generate more business activity and industrial growth possibility; there’s a lot of things you can put on those corners. Now we’ve got Amazon sitting there, but it’s a beautiful piece of property and it could have gone, I thought, to a higher better use. I had to learn a

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R ROUNDTABLE

DREX OWUSU

THERE AREN’T A WHOLE LOT OF CITIES WHERE THE POPULATION IS BIGGER THAN ATLANTA, BUT YOU CAN GO FIVE MINUTES FROM DOWNTOWN AND FIND RAW LAND TO DEVELOP. THAT DOESN’T HAPPEN. —DREXELL OWUSU

lesson. Experience tells you a whole lot, and it wasn’t going to happen that way. RINER: I got to South Dallas by getting beat by South Dallas. I was in south Fort Worth with a large spec building in 2007 and every deal that came through ended up locating in South Dallas and so the light bulb kind of went off and I said, “Well, why are they locating in South Dallas?” It came down to one major thing: the freeway system and where that freeway system is situated within our region. If you look at North Texas and the 7 million people we have here, and then you look at the Texas triangle, down to Austin, San Antonio, and Houston, then you’ve got 25 million people within a four-hour drive. Every move that has been made in South Dallas has been logistically driven—Ace Hardware, Procter & Gamble, Georgia Pacific, Pepsi, Quaker—everyone has gone down there. That’s why it’s lit up. TEESDALE: My business partner, Tom Pearson, and I got involved down there in 2007, listing 400 acres of land. We knew that everything made sense down there. Interstate 20 was improved, and I-20 and I-30 go to both coasts. You’ve got a massive highway crossing through there and you’ve got I-45 down to the ship channel, so it all converges right there in the southern sector. From that standpoint, it

SUMMER 2016

made sense just from the trucking standpoint. Then you add the rail and the availability of a lot of inexpensive land. All of those factors just kept making more sense. As long as we’ve been down there — it’s going on nine years — it’s been a great ride. Everything we’ve been telling people about is coming to fruition. BANCROFT: I’ll tell you what’s new this cycle, though: institutional capital wants to be there. We can’t do a deal unless capital wants to be there, because Trammell Crow Residential is only 3 percent of the money in a typical deal. So, we’ve got to raise money from a bank or a Civitas or a UBS to finance the transaction, and in the last cycle that wasn’t available in South Dallas. This cycle it is, and I think it’s because of the infrastructure. The vision of the city of Dallas and the infrastructure the city has invested in — the bridge and what they’ve done with Fort Worth Avenue has got people making big bets. I’m going to use a term; in history, it’s a negative term, but in real estate, it’s good term, and that’s a dictator. You have a dictator, like Phil Romano in West Dallas, who owns a lot of land and can actually make something happen. You don’t have 40 different owners that are pushing and pulling in different directions, and because of that, I think West Dallas has been a success. LAKE: I also think that the fact that the mayor (Dallas Mayor Mike Rawlings), with his GrowSouth initiative, has done a great job in promoting the southern sector. It wasn’t until the city of Dallas invested $2.1 million

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EVERY MOVE THAT HAS BEEN MADE IN SOUTH DALLAS HAS BEEN LOGISTICALLY DRIVEN— ACE HARDWARE, PROCTER & GAMBLE, GEORGE PACIFIC, PEPSI, QUAKER—EVERYONE HAS GONE DOWN THERE. THAT’S WHY IT’S LIT UP.

ROB RINER

—ROB RINER in Bishop Arts that it became popular, and it wasn’t until the mayor started really promoting the southern sector that a lot of people started focusing there, and more money started coming in. OWUSU: I agree. I think one of the big differences we’re seeing in terms of the emergence of southern Dallas is that everywhere else got really pricey. We’re all real estate folks and in the end, we like you go to where the opportunities are. Southern Dallas kind of emerged as this, “Oh, why is nobody doing anything here, and look at all the great opportunities there are to get things done.” I think it’s fascinating. I mean this geography—it’s a massive area that has historically been underdeveloped, and I think that’s the golden opportunity. There aren’t a whole lot of cities where the population is bigger than Atlanta, but you can go five minutes from downtown and find raw land to develop. That doesn’t happen. BANCROFT: Drive time to jobs is a major factor in residential; clearly West Dallas, South Dallas, and East Dallas have that advantage. TEESDALE: That’s one of the things we sell to corporations. You’ve got access to a huge geographic area within a 30-minute drive time, which seems to be the acceptable maximum to and from work. You plot a map down there, look at geographically how big a 30-minute drive time is to South Dallas — it’s huge. MAIDEN: Yeah for our company, a lot had to do with timing from the Mayor Rawlings’ office and his vision for GrowSouth. It just seemed

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like there was a lot of energy focused down south. And then for me personally, being a product of the area, it goes back to a motto that my high school coach told me: “Pride, respect, and responsibility.” I take great pride in being a product of southern Dallas and that fuels my energy. The respect factor is having individuals like Frank Mihalopoulos and everyone around the table who are willing to invest. I think we’re all responsible as developers to give back to communities that are underserved. JACKSON: In 2007 when I was looking for a house and ended up buying one in Oak Cliff, I saw that Dallas was changing as a city. I don’t think it’s out of line to suggest that Dallas has had a history of prejudice, and to finally see the newer generations let go of that was a big driver for me. Anywhere that you can find socioeconomic diversity, you’re better suited for a long-term investment. South Dallas has those elements, so that’s why we’ve put a lot of capital in. I, too, have to commend the mayor’s role in driving interest in the southern sector. Moving forward, I think we’re going to only see more growth. From a residential standpoint and clearly from a retail standpoint, we are well underserved.

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R ROUNDTABLE AMANDA MORENO LAKE

safety standpoint, for getting product in and out. That’s one of the things we’re selling to a lot of corporations. What about retailers? MAIDEN: I think one area in South Dallas that we’ve garnered the confidence of retailers in is Cedar Hill. Glen Oaks, surprisingly, was a home run. Once we were able to land WalMart, we got our center leased within 12 months. We actually had more users than we had space. That speaks to the reality that there’s a pentup demand in southern Dallas, if you can deliver a quality product and development. With Southwest Center Mall, our pitch is more about the regionality of the area and not just focusing on just Oak Cliff, but being able to pull from Duncanville, DeSoto, and Cedar Hill, which has raised the eyebrows of a lot of retailers.

When you’re out there selling the region to either investors or tenants or buyers, what kind of story do you try to tell? And how has that changed in recent years? RINER: It has changed a lot over the last 10 years. Steve hit on it earlier, it’s an institutional market now. When the institutional capital comes in, the story gets easier to tell, because you’re not pioneers any longer. With the Chamber, The Real Estate Council, and the mayor’s office all behind it, South Dallas has become a market in itself now. People are trying to get a position in the sector and they’re willing to hold that position for this cycle and for the next cycle, too. TEESDALE: A lot of the corporations that have moved down there didn’t have an operation in the Dallas area, so they looked at all the logistical benefits that are offered in South Dallas and it made sense to put a new facility there. North Texas has become a safe harbor for so many of these big corporations because Houston continues to have flooding and you continue to have the snowstorms up in the east that just freeze the city, so then trucks can’t move and product can’t get to where it needs to go and so it shuts down. That disrupts the entire logistics model. So more corporations are recognizing the benefit of being here just from a

SUMMER 2016

So where does that project stand right now? MAIDEN: It’s very encouraging. We are very fortunate to have a good owner in Peter Brodsky. He is really committed to the area, and he’s committed to our team and to the vision. What’s been most surprising is that as bullish and out there as our plan is, people are really buying into it and that is exciting. I think it’s going to be a catalyst for a lot of other things that’s going to happen in southern Dallas, and I think it could be a good litmus test of what can really happen if you can pull the right capital group, the right retail team, and the right vision altogether. It can really transform a whole community. LAKE: And you’re thinking of adding a grocery store? MAIDEN: Yes. We’re definitely thinking mixeduse. We’re underserved for grocery, so we’re having conversations with different grocery stores. We think with the number of different churches in the area, maybe some sort of hospitality, definitely some more urban residential, and then office, which is underserved in the area, too. We talked about some of the selling points. What are some of the challenges that still remain in the region? And what types of investments can the city make to help? RADER: We’re creating jobs in the Inland Port area, the Dallas Regional Chamber has been very helpful in that. We’ve identified about 2 million people living within 30 minutes of that

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ANYWHERE THAT YOU CAN FIND SOCIOECONOMIC DIVERSITY, I THINK YOU’RE BETTER SUITED FOR A LONG-TERM INVESTMENT. SOUTH DALLAS HAS THOSE ELEMENTS.

BRENT JACKSON

—BRENT JACKSON

area, and those 2 million people represent a good portion of the population of South Dallas. But we need public transportation bad in the southern Dallas corridor. DART has some activity coming in around the University of North Texas-Dallas campus now, but this population is really east to west. Having that could definitely help us get people to the Inland Port area, where so many jobs are being created. Infrastructure is the next big need. The cities of Wilmer and Hutchins along I-45 do not have the economic capability to do all of it, so Dallas County and others have stepped up and assisted in that and it has helped out a lot. I think there have been projects that would have come into the Inland Port area that went someplace else because we didn’t have more infrastructure in place. We are getting it in place now and it’s showing to be significant, as far as the additional amount of interest it’s generated. OWUSU: One of the big challenges is still the mythology of Dallas, this perception that things can’t happen down south; even though, as we all know, everything is happening down there. We have this EB-5 program to promote to foreign nationals. They don’t know Dallas, so they don’t have this view. We get to tell this great story about how awesome our city really is and whether it’s in southern Dallas or northern Dallas, they don’t care. They’re like, “Oh, great, there’s a ton of people coming here in the last 10 years? Awesome. Oh, there’s jobs? Great, how do I invest?” It’s telling the story to help people understand what’s really possible. JACKSON: I think that’s a challenge I saw, too. The old guard — and most of them have

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retired by now — thought that the low-hanging fruit was along the toll road going north. That’s all but gone now, thankfully, but for a while there it was tough selling (Southern Dallas). But when foreign nationals or people from New York or San Francisco flew in, they drove around and they thought, “Oh my god, this is the most beautiful part of the city.” TEESDALE: One of the other things you can track is the capital. The capital was slowly moving down to I-20 and then it started moving east toward I-45 and then it went on down to I-45. From our standpoint it’s extremely important to watch where the institutions are willing to put their money, and the more they gain confidence, the more opportunities opened up for us down there from an industrial standpoint. BANCROFT: Yeah, we don’t need all aspects of live-work-play-recreation to make a deal and drive capital to a site, but we have to have two or three of those aspects. In West Dallas, we had two or three of those aspects we were able to drive capital to that location. I don’t think I’m giving away a secret here, but we’re a $5 Uber ride away from all four aspects in Uptown, and if you live in West Dallas or you live in

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R ROUNDTABLE CHRIS TEESDALE

the Design District or you live in the Cedars, Deep Ellum, you’re saving $400 to $500 a month in rent for a new, Class A product. That’s a lot of Uber rides. Do you think we’re going to see more multifamily development in the southern sector? And what about single-family, and middle-class housing options? BANCROFT: I think you’ll get the Cedars fully built out, then we’ll get West Dallas fully built out, I think you’ll get Deep Ellum, which now has kind of that dictator-type leadership with Scott Rohrman. Further south, education becomes a real factor, from a residential standpoint, but for the single-family and multifamily, I think we’re making great strides as a city and heading the right direction. MAIDEN: The need for student housing around that UNT-Dallas campus can spur a lot more residential growth in that area. What impact do you think the campus and the DART station are going to have? MAIDEN: The president of UNT-Dallas has a really bold vision for the area. They’re committed to increasing their enrollment over time, and I think the rail system is

SUMMER 2016

going to help. From my understanding, they’re getting ready to start construction on a new phase, and there’s a lot of land around the campus, so that makes it attractive for residential groups to come in and take a look at it, too. On the industrial front, we’ve seen a lot of distribution centers. What’s the demand for manufacturing? RADER: We’re talking to multiple parties right now with regard to manufacturing facilities; infrastructure is a big key. Two of the users we’re talking with are very large rail users, and we’ve got a great rail system tied to the interstate highways, so that’s going to have a good bearing on it. We’ve got a labor force to show with a 30-minute commute, and 15 minutes to downtown Dallas if you want to go have lunch at Capital Grille. Everything is easily accessible, but our key is the labor force. These are 100acre type manufacturing facilities, a good asset to have in the southern Dallas. It changes the economic considerations from a distribution facility to a manufacturing facility, as far as payrolls go, and that can generate a need for more residential growth. TEESDALE: We’re working with two manufacturing operations in the 250,000- to 300,000-square-foot range in the southern Dallas County sector. And oddly enough, one of the things driving both of them is the Houston ship channel. They’re bringing things up from the Houston ship channel, and it’s being processed here. We’re seeing more demand for foreign trade zone facilities. It’s coming, but again, one of the things that will help drive that point home is the accessibility to labor. Amazon wouldn’t have planted a 1.5 million-square-foot fulfillment center if they didn’t have good access to labor. The labor is there — it just needs to be promoted. So what does it mean to the sector, having Amazon and some of the other big brands that are there now? Does that put a stamp of approval on things, and what can be done to leverage that? TEESDALE: I think a lot of major corporations feel comfortable being around where other major corporations are. So the more brand names we get in the southern sector… BANCROFT: Herd mentality. TEESDALE: It is the herd mentality, exactly. The other thing we’re starting to see is major park developments; a lot of the companies we work

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R ROUNDTABLE with like to be in a planned business park. RINER: And the FedEx hub doesn’t hurt you down there. TEESDALE: Right. It’s huge. BANCROFT: One of the things that turned my head is looking for new housing under $150,000. That’s hard to find in North Texas right now. You can’t find it. You can’t find it north, you can’t find it east, I don’t know if you can find it west. That’s going to be a driver, because there’s a housing shortage in Dallas. So what will it take to get builders to start building those homes? RINER: Well, the manufacturing, like the GE locomotive plant in North Fort Worth… BANCROFT: Proximity of jobs. RINER: If you get more manufacturing, you’ll get that and then the schools. We need a little bit of help on the schools in the southern sector. I know that there’s some things in the works on that. RADER: We’ve got a new elementary school at J.J. Lemmon and I-20 in the Wilmer-Hutchins school area. The No. 1 school to be built off the bond program is going to Wilmer, and we’re trying to assist in finding a location for that school and hoping that we can build some residential right around it and stimulate more education investment in that area. Education is a big key. If you’ve got quality education, you’re going to find people wanting to move and live close to it. I like what I’m seeing from Dallas Independent School District right now, as far as education for the kids. They’re getting out of the box and they’re creating some new educational tools that I think will be very good for children. We’ve got a junior college down there, we’ve got UNT-Dallas. These companies want the labor force, labor force wants to have good education, TEESDALE: Well, UNT-Dallas and Cedar Valley are both there and promoting education for jobs in the industrial environments down there; that’s something that’s not talked about much. OWUSU: Again, this goes back to the fact that we have to tell the story, because the world doesn’t know all these people are down here. I live in southern Dallas, and I didn’t know all these people were down there until I was, too. We have to tell this story more and more, because the bigger it gets, the faster it’s going to happen. It’s a momentum business. That’s what real estate is.

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TERANCE MAIDEN

Switching gears a little bit, let’s talk about the impact of small developers in southern Dallas. We’ve got several great examples on this panel. What kind of impact you’re having and will continue to have? And how have things changed since you first got involved? JACKSON: At Sylvan Thirty, we raised our first dollar in April 2008, so it has been patient capital, to say the least. I don’t know if it was youthful exuberance or just ignorance, but nonetheless, I jumped in and my capital stuck with me. At that point the capital wasn’t institutional. It was sophisticated, local, high-networth capital that had been through several cycles and saw the opportunity, but they had to be patient. What I have seen is that institutional capital has finally shown a willingness to partner with smaller developers in this portion of the world. Smaller developers can hold their head up high, because any time that the institutional capital comes in, they need to take the cue from what local, small developers have done to be successful. I point to Bishop Arts as a great example of that. I think their biggest obstacle is parking, but I think people are figuring a way around that, and that’s just one example of how a small developer tackles a

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R ROUNDTABLE STEVE BANCROFT

WE DON’T NEED ALL ASPECTS OF LIVE-WORK-PLAYRECREATION TO MAKE A DEAL AND DRIVE CAPITAL TO A SITE, BUT WE HAVE TO HAVE TWO OR THREE OF THOSE ASPECTS. —STEVE BANCROFT

problem, rather than just throwing a bunch of money at it. MAIDEN: One of the biggest advantages is the lack of competition from other developers that are focusing on the north. I mean, you can become an expert in the region and really know where certain retail nodes and voids are and the core of the tenants that go out there. So whether it’s in Cedar Hill or Glen Oaks or The Canyon or Alexan West Dallas and other projects that we’re involved in, the greatest asset to our development is the fact that we are developing in an underserved community and there’s not as many developers vying for the same real estate. BANCROFT: And I would add on to that, there’s no development that’s too small. The small developments bring in the larger ones. As an example of that, in the Design District, we were the first ones to go on the other side off Irving Boulevard to build apartments over there, which was a little bit of pioneering. The bowl lounge was there, and it’s relatively a small development, with Twisted Root, but we would use that to pitch the area and say, “See, we’re not the first, there are others. Residential needs restaurants and entertainment, all within walking distance.” So, no development is too small, because larger developments will follow.

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MAIDEN: And what Jack Matthews has done in the Cedars is incredible. He started with the South Side at Lamar project and now he’s changed the whole corridor. LAKE: For me, the biggest challenge is dealing with the city of Dallas and zoning. It’s still an issue even for me, and I’ve been pulling permits for a long time. The interpretation of an ordinance depends on who’s reading it. I haven’t built a project from the ground up; I just redevelop, which I think is more expensive because it’s like Pandora’s box, you never know what you’re going to get into until you start taking it down to the bones. So when I started I used my own money and didn’t have experience dealing with banks. Since then, I’ve learned to deal with banks and use everybody else’s money and keep my cash. That was a learning experience. Oak Cliff now has just gotten way too expensive. I can go to other municipalities like Waxahachie, where we purchased 220,000 square feet of the downtown space, and Ennis, where there are beautiful old buildings. You’ve got a whole city square in Waxahachie. LAKE: Yes, including The Rogers Hotel. I’ve never bought a hotel in my life, but it was an experience. And now we’re 100 percent leased in Waxahachie. We’ve also acquired about 92,000 square feet in downtown Ennis to redevelop, along with The Ambassador Hotel, for which we have a different concept. We’re going smaller; we got that idea from The Rogers Hotel. We had 38 spaces and we kind of hit a roadblock leasing office and retail, so we just put in some kitchenettes and now we have

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people living in The Rogers Hotel, even with the small spaces. Younger people these days, they just go and take a shower and they don’t cook, they don’t have a family. So you may have a unit of 300 square feet, you put a kitchenette in there, and their playground is their city. I think that’s a concept that we’re going with at The Ambassador Hotel. What are some of the game-changers for southern Dallas that we could hope to see in the near future LAKE: Jefferson in Oak Cliff, is up-and-coming, and you’re going to see so many changes. Once you could have bought it at $35 a foot, now it’s going anywhere from $150 to $250 a foot. MAIDEN: Tthere are three areas. One would be the UNT-Dallas campus, and everything that’s happening around there. Second, Southwest Center Mall. I just think that 90 acres at Interstate 20 and 67, that’s a big donut. For the city, anything that can happen there that could spur more development would be a great catalyst. And the other is Fair Park;

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what’s going to happen there long-term could be a great example of transforming a city. BANCROFT: I like the prospects for the Cedars. I think later this cycle or the next cycle, the prospects of it blowing up are pretty high. You also have the highspeed rail. Something big is going to happen there. It may be two years or 10 years, but it’s coming. JACKSON: Anything that’s within a 3-mile radius of downtown Dallas is fair game. North is one direction of the compass that is already done, but on the west, south, and east in that 3-mile radius, that’s just the way things are going to be the next 50 years. Specifically, I would agree that Cedars, Jefferson, and I would add West Dallas, which I’m obviously bullish on. RADER: I think the game-changer is not necessarily just within the Dallas city limits proper, but it’s going to be the multi-billion dollar development that transforms the Inland Port area. The types of companies and manufacturing that can locate there will generate a lot more economic growth for all of southern Dallas County. TEESDALE: I agree with that. Some of the larger manufacturing deals that are floating around out there ... if you land one big one down there — and hopefully, we’re close — that could be a big game-changer. Something else that could be a game-changer is the new Trinity Forest Golf Course. JACKSON: A lot is happening ... it’s just under the radar. BANCROFT: Yeah, Rome wasn’t built in a day. You can see progress that we’re making, even in this cycle. It’s happening; it just may not be as evident to everyone in the city.

SUMMER 2016


live | work | shop | play | connect

FOR MORE INFORMATION CONTACT:

Terrence G. Maiden 214-219-5600 (office) terrence@corinthproperties.com

Peter Brodsky 214-451-4641 (office) peter.brodsky@redbirddevelopment.com

WWW.REDBIRDSOARING.COM (COMING SOON)

SUMMER 2016

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DeSoto Chamber of Commerce

Kohl’s E-Commerce Center 951,480 SF – Completed 2012

1650 & 1700 LAKESIDE PKWY |

ECONOMIC INCENTIVES

www.southfieldpark35.com

Interchange Distribution Center is a heavily incentivized site with Real Property Abatement up to 90% for years 1-10 and Business Personal Property Abatement up to 90% for years 1-10 followed by up to 75% for years 11-12. There is potential for Freeport Exemption. Located amongst a deep and dependable labor pool and there is a Skills Development Fund Grant, on behalf of the Texas Workforce Commission.

d industrial park oto, Texas

6,320 SF available

ABOUT KTR CAPITAL PARTNERS KTR Capital Partners is a full-service real estate investment, development and operating company focused exclusively on the industrial property sector. KTR has an 80 person platform that manages a series of discretionary value-add investment funds that target opportunities throughout major markets DW Distribution in North America. KTR funds currently own a portfolio of approximately 65 million square feet across Door Fabrication Plant & Warehouse North America and provide nearly $7.0 billion of investment capacity. Since 1997, KTR has developed 500,000 SF – Completed 1Q 2014 nearly 25 million square feet of speculative and build-to-suit industrial projects. In addition, KTR owns and controls land positions in North American major markets that can support approximately 7 million SF of additional development. FOR MORE INFORMATION PLEASE CONTACT:

Dave Anderson Executive Vice President O: 214.979.6500 C: 214.533.9009 dave.anderson@cbre.com

© 2014 CBRE, Inc. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited.

Interchange Distribu 675,000 SF and 874, Up to 1.6 Million SF B

MULTIPLE CONFIGURATIONS POSSIBLE

Southfield Park 35 1.1 Million SF – 1Q 2015

BUILD Solar Turbines – Caterpillar 45,000 SF – 1Q of 2016 Rendering

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PAID ADVERISEMENT

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SUMMER 2016

DeSOTO, TX - EAGLE BUSINESS & INDUSTRIAL PARK continues to thrive, as evidenced by site pads going vertical along with several recent facility and workforce expansions. Located 15 minutes south of downtown Dallas, DeSoto’s competitive advantage lies in a great business park location, excellent transportation access, low-cost shovel-ready land with existing space inventory, a skilled workforce and development plans that ensure our partners achieve maximum return on investment. In addition, DeSoto offers a wide variety of competitive incentives to help your business grow and prosper. Eagle Business & Industrial Park offers more than 400 acres for industrial and commercial development. Our probusiness leadership is dedicated to making your siteselection search easy and your investment in DeSoto a success.

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For more information, contact Jeremiah Quarles at 972-230-9611

www.dedc.org

DESOTO ECONOMIC DEVELOPMENT CORPORATION 211 E. PLEASANT RUN RD. DESOTO, TX 75115 D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 4 5


F FEATURE

DELIVERING THE GOODS DEVELOPERS ARE BUILDING 21 MILLION SQUARE FEET OF INDUSTRIAL SPACE ACROSS NORTH TEXAS. HERE’S WHY.

BNSF INTERMODAL YARD

BY NICHOL AS SAKEL ARIS

A central location and confluence of major interstates have made North Texas one of the top distribution hubs in the nation. Those factors, along with explosive population growth and new consumer buying patterns, have developers scrambling to quench the thirst for industrial space. There’s 21 million square feet of new warehouse and distribution centers under construction in Dallas-Fort Worth, according to CBRE. Of that, 14 million square feet of that is speculative, in anticipation of future growth. “The demand is there. We’re absorbing 18 million square feet per year,” says Dave Anderson, vice chairman of industrial and logistics at CBRE. “If we didn’t have any spec being built, rental rates would go through the roof.” With no navigable waterways or seaports, North Texas relies on three crucial ports to feed the ever-growing and changing demands of the millions of people who live here. In the center is Dallas Fort Worth International Airport, the hub of international and domestic air cargo activity. To the west, there’s Fort Worth Alliance Airport, which is part of the sprawling AllianceTexas, a master-planned community developed by Hillwood Properties. And to the south is the International Inland Port of Dallas, a relative newcomer that’s on its way to

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transforming Southern Dallas. Together these logistics hubs get millions of consumer products where they need to go — whether that’s on store shelves or, in the case of e-commerce, front porches. Jean Russo, senior director at Cushman and Wakefield in Dallas, says population growth is driving the need for even more logistics centers. Major corporate relocations from Toyota, State Farm, and Liberty Mutual mean thousands of people will be moving to the region from elsewhere. “All these people who are coming in to the state are increasing consumer demand,” Russo says. “Corporations want to be as close to urban centers as possible, with access to transportation.”

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F FEATURE

PHOTO: MICHAEL SAMPLES

ALL THESE PEOPLE WHO ARE COMING IN TO THE STATE ARE INCREASING CONSUMER DEMAND. CORPORATIONS WANT TO BE AS CLOSE TO URBAN CENTERS AS POSSIBLE, WITH ACCESS TO TRANSPORTATION. — JEAN RUSSO, CUSHMAN AND WAKEFIELD

SUMMER 2016

INDUSTRY PIONEER The idea of building a cargo-only airport seemed like a novel idea in 1989 when Alliance Airport opened. But not for Ross Perot Jr., who saw the vision for that area and, over time, assembled 18,000 acres in North Fort Worth, Haslet, Westlake, and Roanoke. In 2015, the airport handled 119,444 metric tons of cargo — up 8.6 percent from the previous year. Economists often use this measure as a barometer for the overall health of the region’s economy, says Tom Harris, president of Alliance air and aviation services. The majority of that cargo comes from FedEx’s Southwest Regional Sort Hub, which employs 1,000 people. Increased demand from FedEx has prompted Alliance to lengthen its two runways to 11,000 feet. The first runway extension will be completed by the end of the year and the second by the middle of 2017. “That allows international air freight flights to operate any time of the year, even during the middle of summer with a full load of fuel and full load of freight,” Harris says. “In the middle of the summer when it’s really hot, the aerodynamics won’t allow those types of load on a shorter runway.” Currently, fully-loaded cargo planes have to refuel on the East Coast before

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AN EVA AIR CARGO PLANE TAKES OFF FROM DALLAS FORT WORTH INTERNATIONAL AIRPORT PHOTO: DFW INTERNATIONAL AIRPORT

continuing on to Europe, Harris says. The longer runway will open the airport up to more long-haul cargo flights benefitting FedEx and other cargo haulers. Alliance also happened to have a rail line going through it, which led Burlington Northern Santa Fe to build an intermodal yard. “That gave us direct connection to the West Coast and also the major ports in Asia where the products are coming from,” says Bill Burton, executive vice president of Hillwood Properties. BNSF has moved its main line out of the intermodal yard while adding more cranes to the yard. The company currently does 625,000 lifts a year on intermodal containers but has the potential to go to 1 million container lifts a year with future expansion, Burton says: “That’s where we really have an opportunity to pick up and win business.” Perot and his team had a master plan for the Alliance corridor decades ago, but they couldn’t have predicted that e-commerce would become the titan that it is today. None are bigger than Amazon, which took occupancy not long ago of a 1.1 million-square-foot fulfillment center at Alliance. With that one already at capacity, the e-commerce giant has announced a second 1 million-square-foot facility nearby. Another huge user, Walmart.com, also has two giant fulfillment centers in Alliance for processing online orders. Creating Jobs Terrance Pohlen is associate professor of logistics at the University of North Texas in Denton and director of the school’s Center for Logistics Education and Research, which recently marked its 20th year. He says DFW’s geographic location makes it ideal for the distribution of goods. Once cargo is unloaded from a train or airplane, products can be shipped to stores here — the sixth largest metropolitan area for spending power in the country — or shipped nearly anywhere in the continental U.S. within 48 hours. Although online shopping has tempered demand for traditional brick-and-mortar stores, it has sparked a need for more fulfillment center space and personnel, and boosted the local economy. “Distribution jobs aren’t the highest-paying jobs, but they pay well [enough], and it’s a way of pulling the local economy up,” Pohlen says.

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WHAT’S DRIVING DEMAND? Third-party logistics companies (3PLs) and e-commerce are making Dallas-Fort Worth one of the nation’s global supply-chain contenders. These occupiers represented 40.7 percent of absorption during the first quarter of 2016. Clearly the tidal shift in the way Americans shop has changed the way retailers get goods to their customers, and North Texas is in the nation’s transportation’s crosshairs where the industrial market continues to benefit from this trend. A central U.S. location and its own population density of nearly 7 million residents make DFW a premier location for 3PL and e-commerce occupiers, with a construction pipeline trailing rooftops. —CBRE

DFW INDUSTRIAL SPACE, 1Q 2016 > The market saw 5.9 million square feet in absorption—second only to the high-water mark of the first quarter of 2009. > North Fort Worth accounted for 1.9 million square feet of that, due in part to a massive e-commerce user that took occupancy at Alliance during the quarter. > New construction deliveries totaled 4.9 million square feet, with 53 percent pre-leased. Nearly 40 percent of new construction occurred in south Dallas. > Vacancy came in at 6.7 million square feet. —CBRE

SUMMER 2016


F FEATURE GROWING SOUTH The International Inland Port of Dallas boasts a huge Amazon fulfillment center and is home to distribution operations for other big users, including Ace Hardware, Sprouts, and Whirlpool. But the potential looms even larger. The area south of Interstate 20 offers 70,000 undeveloped acres stretching across Ferris, Hutchison, Wilmer, Lancaster, and Dallas. Industrial development began in earnest around the Inland Port after Union Pacific built an intermodal hub there in 2005. Mike Rader, president of Colleyville-based Prime Rail Interests, has been one of the Inland Port’s biggest cheerleaders. “The primary thing that drew me was the logistics is having three interstate highways within five miles of each other,” he says, “and the abundance of land and having the rail lines running through this property.” Major north-south and east-west interstates—35E, 45, and 20—all border the area. Now, a fourth major highway is in the works. Called Loop 9, the 40-mile toll road will link I-20 to I-45, I-35E, and U.S. Highway 67, while also cutting through a wide swathe of South Dallas County. “It’s going to be very important because it’s going to create a new route for trucks coming up out of San Antonio, Houston, and Mexico,” Rader says. Casey Burgess, mayor of the town of Wilmer, says he expects the city’s population to double or triple in the next decade. New residents could attract new mixed-use hotel and retail projects. “Once Loop 9 goes through, you’re going to see a whole new corridor open up for development,” Burgess says. One of the biggest recent wins for Wilmer is Medline, a health care products distributor that had outgrown its Grand Prairie facility. The Mundelein, Illinois-based company will open its 800,000-square-foot center this summer. “That one development alone will double our city budget from the revenue from property and sales tax,” Burgess says. “We’re going to be able to do a lot with that money. Water, sewer, streets— there’s really a lot of needs.”

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DALLAS COUNTY INLAND PORT Dallas–Fort Worth’s central U.S. location provides an advantageous distribution hub, with quick access to rail, air, and over-the-ground truck transportation. Southern Dallas County serves as vital link of the logistics, distribution, and manufacturing hub. By truck, distributors can efficiently move products throughout the central part of the United States, reaching 93 percent of the population within 48 hours. The 70,000+ acre Dallas County Inland Port area offers unsurpassed access to Interstates 20, 35, and 45 with large acreage sites for manufacturing and distribution. The area offers heavy redundant electricity, Lancaster Airport (306 acres), 360 acre Union Pacific Intermodal Terminal (DIT), a planned BNSF Intermodal facility, Foreign Trade Zone availability, Inland Port of Pre-clearance, and Triple Freeport availability.

TRINITY FOREST GOLF COURSE AND CLUB

TRINITY RIVER AUDUBON CENTER

BLW CONCRETE CONTRACTORS

VA NORTH TEXAS HEALTH CARE SYSTEM WALMART SUPERCENTER UNIVERSITY OF NORTH TEXAS AT DALLAS

PAUL QUINN COLLEGE

ALLIED WASTE SERVICES AMAZON DC SOUTHWEST CENTER FEDEX DC MALL GEORGIA PACIFIC DC HYUNDAI MOBIS FREIGHT PARTS DC BMW DC LINER NIAGRA HOME QUAKER DC BOTTLING CONSOLIDATED CASTING DEPOT DC MARS PET CARE DC AMERICAN STANDARD DC SHIPPERS L’OREAL DC DESOTO HELIPORT DC MEDLINE CEDAR SWIFT DC TRANSPORTATION VALLEY ACE COLLEGE ADESA CINTAS DC HARDWARE DC DIAB UNION GROUP KOHLS DC BENTWOOD PACIFIC SPROUTS DC KITCHENS WALMART DC DALLAS AT&T INTERMODAL UNILEVER DC MARTEN TRANSPORT DISTRIBUTION TERMINAL FACILITY WALMART SUPERCENTER BRASS CRAFT PROCTER & WHIRLPOOL DC GAMBLE DC SCHNIEDER NATIONAL

O’REILLY AUTO PARTS DC WALMART SUPERCENTER

ONCOR SYSTEM OPERATING SERVICES

INLAND PORT | ● SIGNIFICANT EMPLOYERS | DC DISTRIBUTION CENTER

PLANES, TRAINS AND AUTOMOBILES (AND MORE) ALL MADE IN DFW The DFW region is often associated with major headquarters, logistics, distribution and supply chain operations. But did you know that manufacturing makes up nearly 10% of the regional economy? And manufacturing activity in DFW is heating up. > GENERAL MOTORS, which manufactures SUVs in Arlington and recently announced a $1.4 billion, 1 million-square-foot expansion at the plant, > The LOCKHEED MARTIN plant in Fort Worth is moving toward full production of the new F-35 fighter jet and is in the middle of a $1.2 billion upgrade of its facility > The $400 million GE LOCOMOTIVE plant, which opened in 2013 in far north Fort Worth, employs more than 700 people, building on average 1.2 locomotives per day. > PETERBILT MOTORS COMPANY recently broke ground on a 102,000 square-foot expansion to its heavy-duty truck manufacturing facility in Denton, Texas. The new building will be located just north of the plant and provide additional capacity for production and testing. > MARY KAY announced late last year that it will build its $100 million global manufacturing and research complex in Lewisville.

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A ANATOMY OF A DEAL

SUMMER 2016


A ANATOMY OF A DEAL

DEVELOPERS, STAKEHOLDERS ARE CREATING AN INNOVATION DISTRICT THAT RIVALS THE AREA’S FORMER GLORIES AS A HISTORIC, ENTERTAINMENT DISTRICT BY K AREN NIELSEN

The West End has one of the largest concentrations of historic buildings in Dallas with a narrative that dates back to the Caddo Indians in the 1800s. Located in the northwest corridor of downtown Dallas, the 67.5-acre historical district has experienced its share of prosperity, depression, and rebirth. As the story goes, the city’s founder, John Neely Bryan, first established a trading post and helped attract the Houston & Texas Central Railroad, spurring construction of multistory manufacturing warehouses in the early 1900s. For decades, the West End served as manufacturing hub for hats, crackers, candy, apparel, farm equipment and saddles. The developing suburbs eventually lured companies away from the city core and even heightened interest after the assassination of President John F. Kennedy in Dealey Plaza couldn’t sustain the West End through a difficult economy. In the 1980s, a new revival took shape, with a focus on tourism

WHAT IS AN INNOVATION DISTRICT?

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PHOTO: MICHAEL SAMPLES

An innovation district is a “geographic area where leadingedge anchor institutions and companies cluster and connect with startups, business incubators, and accelerators. They are also physically compact, transit-accessible, and technically wired and offer mixed-use housing, office, and retail,” according to a report by the Brookings Institution.


TREY BOWLES

A ANATOMY OF A DEAL

PHOTO: HANNAH RIDINGS

and entertainment. Many buildings were repurposed, housing the iconic Starck Club, touristy retail shops, a 10-screen cinema, Planet Hollywood, and night clubs in the Dallas Alley. But 9/11 came and the district fell on hard times with many of the buildings succumbing to foreclosure and bankruptcy, sitting vacant for a decade or more. A smattering of institutional restaurants such as Spaghetti Warehouse and The Palm have held court since 1972 and 1983, respectively, and some apartments and office space kept the area on life support. But now a cavalry of well-established developers and downtown stakeholders are driving the creation of an innovation district that could be at the forefront of new ecosystems also being created in Atlanta, Baltimore, Buffalo, Cleveland, Philadelphia, and San Diego. Innovation districts are emerging near anchor institutions in the downtowns and midtowns of these cities and “have the unique potential to spur productive, inclusive, and sustainable economic development,” according to a Brookings Institute report. It may be the West End’s most spectacular revival yet.

THE CATALYST It’s no secret that Dallas is running short on historic building stock. The city has experienced a flurry of redevelopment over the last few years. These eclectic brick and timber spaces are commanding premium rates from Main Street to the Design

WHY AN INNOVATION DISTRICT?

PHOTO: MICHAEL SAMPLES

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Innovation districts are very powerful for a city because it can serve as a beacon or showroom of innovation not just within that district itself, but what exists across an entire city, county or region. It becomes an area where we can highlight the different types of innovation that are already prevalent in the city while also working to provide areas of collaboration to create new innovations. The exciting thing is that this can be a hub for all sorts of sustainable innovation. Not just technological but across all industries and will include innovative green spaces, infrastructure, energy, and create opportunities for all business (entrepreneurs to corporations), the local government, and ultimately its citizens to have a better place to live, work, and play. — TREY BOWLES, Chief executive and co-founder of the Dallas Entrepreneur Center SUMMER 2016


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Tenant Data Mapping Vacancy & Absorption

SUMMER 2016

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“We’re empowering people to discover more.” “DART provides mobility, stimulates economic development and improves quality of life. We’re proud to help people from all walks of life discover the places they want to go.”

Gary C. Thomas President/Executive Director, Dallas Area Rapid Transit

214.979.1111 DART.org


A ANATOMY OF A DEAL

ARTIST’S RENDERING OF GRANITE PROPERTIES’ FACTORY SIX03, FORMERLY KNOWN AS THE WEST END MARKETPLACE. RENDERING: GRANITE PROPERTIES

District, and the demand for “creative class space” has never been higher. Many credit the heavy influence of the Dallas Entrepreneur Center and its coworking space at 311 N. Market St. for drawing attention to the West End’s historical assets and proximity to the urban core. Since opening two and a half years ago, The DEC has attracted 45,000 entrepreneurs through its doors and introduced startups to a hip part of town just itching for redevelopment. “We felt like putting The DEC in the West End could help revitalize the area,” says Trey Bowles, The DEC’s chief executive and co-founder. “It’s been proven in multiple cities that putting an active entrepreneurial center in the middle of an area that needed to be rehabbed would do that. People are eating down here and drinking down here and spending time. It’s really becoming a destination downtown and the real estate community is responding.” Uber opened a West End office around the same time as The DEC. Bowles says the ride share tech company has become a valuable partner, hosting pitch sessions and being a “great fellow citizen and innovative company that cares about the city.” Being near other entrepreneurs was a big draw for Ben Lamm who handpicked the West End for the headquarters of his

SUMMER 2016

“With the work that The Dallas Entrepreneur Center was already doing in the West End coupled with the new focus on Innovation through the work of the Dallas Innovation Alliance, the West End was the right place for us to expand from Austin.” — BEN LAMM, Chaotic Moon

new venture, Conversable, whose platform utilizes bots to help companies deliver on-demand content, information, and ordering to customers through Facebook Messenger, Twitter, and other platforms. He said that the Dallas office of Conversable will serve as headquarters and focus on system integration and operations, while core engineering and product will be in Austin. “It was important for us to find a place to move our business that was in the heart of the startup activity in Dallas,” says Lamm, founder and former chief executive of Chaotic Moon, which has a Dallas office, and was sold to Accenture in 2015. “It was always my goal to support the local entrepreneurial community and to be the model for what I hope all startup companies could become. With the work that The Dallas Entrepreneur Center was already doing in the West End coupled with the new focus on innovation through the work of the Dallas Innovation Alliance, the West End was the right place for us to expand from Austin.” Nathan Huber of Zipcar, which has officed at The DEC for two years, says the West

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A ANATOMY OF A DEAL

PHOTO: CRESCENT REAL ESTATE

“I started working with The DEC and heard about the DIA’s (Dallas Innovation Allicance) smart city plan. Close proximity to downtown presented an amazing opportunity to office there.” — ANDREW SEVIN, Universal Mind

End location is close to the DART light rail and its walkable restaurants and bars are ideal for entertaining clients. “There’s a strong community vibe and there’s always something new popping up down here,” says Huber, Texas field marketing manager for the by-the-hourrental service that offers sustainable mobility options in major metro cities. Over 32 tech/media/innovation companies occupy 215,000 square feet of the available 1.6 million square feet of office inventory in the West End, according to CBRE.

THE DEVELOPMENT Many believe what’s different about the West End’s rebirth this time around is ownership. Instead of one-off buyers, well-heeled institutional owners are acquiring properties that they say they’re willing to own and operate for the long haul. Crescent Real Estate LLC is one example. The Fort Worth-based real estate company has experience redeveloping creative class space in Denver, San Francisco, Boston, and Seattle. It owns the second largest chunk of West End real estate, adding three properties – 501 Elm St., 211 Record St., and 800 Jackson Ave. – to its portfolio last year and picking up a fourth, 208 N. Market St., this spring. “We’re full and stabilized,” John Zogg, managing director for Crescent. “We see this as a long-term ownership strategy.”

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The cluster of tenants working in design, creative, and tech fields there prefer nontraditional office space that’s cool with interesting surroundings. Among them is The Grove, a coworking community that opened three years ago at 501 Elm St. “The growing employment base is the millennial population and we’re finding that millennials have it right,” Zogg says. “It’s just phenomenal office product.” Crescent is investing more than $1 million in infrastructure and updates to make the buildings look more modern and slick, but in a historical context. The developer is working closely with other owners Spear Street Capital and Granite Properties to ensure the buildings maintain a cohesive look. The area’s vibrancy also relies on a solid plan to address landscaping, green space, transportation, and parking issues, Zogg says. Dallas advertising startup 3Headed Monster chose Crescent’s 208 N. Market St. (also known as the Awalt building) to locate its 10-person shop. “We’re a new model ad agency focused on Tomorrow Brands so the transformation that’s happening in this neighborhood was a good fit,” Creative Chairman Shon Rathbone says. “The buildings have some funky history, but the businesses are tech-savvy and creative. The perfect place for our Monster Lair.” Speer Street Capital purchased another key property, the Landmark Center Building, late last year. The 131,284-square-foot building at 1801 N.

SUMMER 2016


SUMMER 2016

PHOTO: MICHAEL SAMPLES

A ANATOMY OF A DEAL

THROUGH THE YEARS 1800s

Early inhabitants are the Caddo Indians

Mid-1800s

Tennessee lawyer John Neely Bryan bought their land and opened the first trading post. A replica of his cabin stands at Market and Elm.

1872

Houston & Texas Central Railroad arrives, attracting manufacturing companies whose warehouses were constructed in the early 1900s.

1892

Construction of “Old Red,” the first county courthouse – now a museum and reception facility

1906

First Dallas County jail constructed at 703 Ross Ave.

1963

President John F. Kennedy assassinated in Dealey Plaza

PHOTO: DALLAS CVB

Lamar St. has a full slate of tenants, including Uber. At the nucleus of it all is Granite Properties’ Factory Six03, formerly the West End Marketplace. The 237,000-squarefoot project at Market Street and Munger Avenue consists of two structures and an eighth-floor addition called “The Stack” that will include a tenant lounge and conference space with rooftop patios. Renovations on the space, which has been vacant for nearly a decade, are expected to be complete in early 2017 and will include 10,000 feet for restaurants. Expect to see a hand-picked roster of innovative companies, both large and small. “In other markets, you’d see Amazon, Facebook, and Google taking this type of space,” says Greg Fuller, Granite’s president and COO. “We have lots of proposals out. We’re being picky right now.” These owners would be well served by banding together to market the district, and be aggressive and selective in the pursuit of retail, restaurants, parks, and outdoor space to preserve the innovation vibe, says Jeffrey Eiting, vice president, technology and media practice at CBRE. “A burgeoning tech scene in Dallas and nationally, the right type of real estate well positioned in the urban core, all of this is a formula for success,” he says. “Plus, if anyone can do it, the roster of capable and proven new owners can. I wouldn’t bet against them.” Universal Mind, a digital software technology agency based in Denver, opened its Dallas office in the West End in April. Andrew Sevin, vice president of client services, says he started scouting space and connected quickly with local resources to find the perfect location. “The West End has that incredible neighborhood vibe,” he says. “I started working with The DEC and heard about the DIA’s (Dallas Innovation Allicance) smart city plan. Close proximity to downtown presented an amazing opportunity to office there.” The West End has had its share of reinvention, but its rebirth as an innovation district has all the right people excited about its potential. “Everybody loves an underdog,” Eiting says. “The West End is a great sort of comeback story. It’s an area that has lost its identity over the years and is now a thriving district.”

SIXTH FLOOR MUSEUM

1972

Spaghetti Warehouse opens in the former Pillotex factory

1975

City Council approves plans to create the West End historic district

1983

Iconic Starck Club opens in the former Brewery Building; club closes in 1989

1986

West End rebranded as an entertainment district with the opening of the Marketplace, which featured a retail center, 10-screen cinema and Planet Hollywood until 2001

1989

Sixth Floor Museum opens

2009

Several West End properties involved in foreclosure, bankruptcy

2011

West End becomes part of Downtown Dallas Inc.’s 360 plan

2014

Dallas Entrepreneur Center opens co-working space

2015

Developers begin buying buildings for creative office space

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A ANATOMY OF A DEAL

THE WEST END COULD SEE MORE GREEN SPACE AT GROUND LEVEL AND ON ROOFTOPS UNDER THE PLANS FOR THE SMART CITIES PROGRAM.

RENDERING: DALLAS INNOVATION ALLIANCE

BUILDING A SMART CITY 5 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

WHAT IS A SMART CITY? An emerging community of civic leaders, data scientists, technologists, and companies are joining forces to build “Smart Cities” – communities that are building an infrastructure to continuously improve the collection, aggregation, and use of data to improve the life of their residents – by harnessing the growing data revolution, low-cost sensors, and research collaborations, and doing so securely to protect safety and privacy.

SOURCE: WHITEHOUSE.GOV

The West End’s boundary-driven district makes it an ideal location for Dallas’ first smart city initiative, which leverages technology collaborations to help reduce traffic congestion, fight crime, foster economic growth, manage the effects of a changing climate, and improve the delivery of city services. Bowles says that’s been The DEC’s objective from day one, but it needed to help build and aggregate a critical mass of creative talent to attract more people to the area and create a baseline for the innovation district. The microcosm of bars, restaurants, multifamily, and businesses makes it ripe for rejuvenation. Last fall, The DEC helped launch the Dallas Innovation Alliance, a public-private partnership that’s dedicated to the design and execution of a smart city strategy for Dallas, with initial efforts focused on the West End. Jennifer Sanders, executive director and co-founder of the DIA, says plans are underway for five to seven projects in the West End that will focus on smart infrastructure, smart mobility, and connected living. The projects range from public Wi-Fi, and intelligent street lights that incorporate sensors to

SUMMER 2016


A ANATOMY OF A DEAL THE DALLAS INNOVATION ALLIANCE IS HEADQUARTERED IN THE DALLAS ENTREPRENEUR CENTER ON NORTH MARKET STREET.

PHOTO: MICHAEL SAMPLES

measure air quality and traffic to a bike sharing program. Another will enhance transportation by alerting commuters in near real-time when the next bus or train will arrive. Plans for the district include bringing in top corporations to build innovation spaces/labs downtown to showcase smart technologies, like the Internet of Things, that can interact with external audiences and attract millennial talent. “We want to create these presences for large corporations and startups that point to innovation going on all over DFW,” Sanders says. “The West End (will be) a living lab for all these smart technologies, It’s a place we can point to for a tourism perspective and as a major draw for external audiences. True innovation is the aggregate of corporations, startups, citizens and impact organizations creating a true live/work/play experience.” Dallas was selected as one of 10 cities for the inaugural Envision America, a smart cities initiative that was announced at the White House in the fall of 2015. The cities will leverage technology collaborators and businesses to address the challenges of climate change and improve city services. In late June, the Dallas Innovation Alliance unveiled its vision for the living lab in the West End, presented in the form of concept renderings and a 3-D from BOKA Powell and a virtual reality experience from Dallas-based agency 900lbs of Creative that show what the West End looks like today and what it will look like once smart elements are incorporated into the area in the months ahead. The DIA consists of public and nonprofit sector members, including the city of Dallas, Dallas Regional Chamber, Downtown Dallas Inc., Dallas Area Rapid Transit (DART), Dallas 2030 District, the Dallas Convention and Visitors Bureau, The Real Estate Council, and the Texas Research Alliance. Other partners include: AT&T, Cisco, Current, powered by GE, AECOM, and IBM. Adds CBRE’s Eiting: “There are lot of stakeholders working there feverishly to get smart cities up and running. The West End is a compact, defined geographic area and it will be a great spot for this initiative.”

SUMMER 2016

RENDERING: DALLAS INNOVATION ALLIANCE

THE SMART FUTURE OF THE WEST END The Dallas Innovation Alliance revealed its vision for the living lab in the West End via concept renderings from BOKA Powell and a virtual reality experience from 900lbs of Creative.

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A ANATOMY OF A DEAL

555 ROSS AVE. PHOTO COURTESY FAIRFIELD RESIDENTIAL

MODERN LIVING IN THE HISTORIC WEST END As the areas surrounding the West End have become more developed, walkability and easy access to mass transit are even more attractive. Most people don’t realize that every DART rail line runs through the West End, or how easy it is to access downtown: It’s a seven-minute walk to the Arts District and less than nine minutes to the American Airlines Center. The Ross Corridor cuts through the Arts District to the West End, while the Lamar Corridor connects the West End to the AAC and The Cedars neighborhood. “Other than South Side and Deep Ellum, it’s pretty much a 12-minute walk to anywhere,” Bowles said. “Dallas’ walkability score is 97 or 98, up near the top, and nobody would imagine that.” Millennials in particular are drawn to walkable communities, and developers are responding. There are approximately 800 apartment units in the West End, with an estimated population of nearly 1,200 residents, says Kourtny Garrett, president of Downtown Dallas Inc., whose 360 plan includes specific strategies for West End’s growth as an innovation district. “If there is one silver bullet, residential has lot to do with that,” she says. Fairfield Residential’s 555 Ross Avenue Apartments, located at Ross Avenue and Record

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555 ROSS AVE.

Street, is the newest addition to the neighborhood with 267 luxury units. Fairfield Residential touts the benefits: pedestrian-friendly, easy public transit, walk to work downtown or hop on the trolley to the West Village. Provident Realty Advisors also has plans to transform the Brewery Building at Continental and Houston streets into apartments. Interior demolition began late last year on the building, which was constructed in 1890 for the Dallas Brewing Co. and is probably best known as home to the popular Starck Club in the 1980s. For people like Universal Mind’s Andrew Sevin, residential options are a big draw: “Our workforce will be down there as well. I want to be able to have a hub that’s a recruiting tool.”

SUMMER 2016


Covering the North Texas innovation culture where

TECH, CREATIVES, INNOVATORS, INCUBATORS, EDUCATORS, ENTREPRENEURS, INVESTORS ENTERPRISE

&

connect, converse, and converge across industry sectors

DALLASINNOVATES.COM

THE DIGITAL MEDIA PLATFORM PROMOTING DALLAS-FORT WORTH AS A HUB FOR INNOVATION

A COLLABORATION OF THE DALLAS REGIONAL CHAMBER AND D MAGAZINE PARTNERS


A ANATOMY OF A DEAL

LAY OF THE LAND 1 Fairfield West End

8 Dallas County Courthouse

17 Dallas World Aquarium

2 Corgan

9 West End Marketplace Building/ Factory Six03

18 Jefferson at Ross Residential

3 Sixth Floor Museum 4A 501 Elm Place Residential/ 4B Dallas Holocaust Museum/ Center for Education & Tolerance/ 211 Record St. 5 Dallas County Records Building 6 Old Red Courthouse 7 United States Patent and Trademark Office

10 Uplift Luna Preparatory School 11 Conversable 12 Dallas Entrepreneur Center 13 Marquis Residential

19 208 N. Market St. 20 800 Jackson St. 21 Landmark Building Center 22 Future site of Dallas Holocaust Museum

14 DART West End Station 15 El Centro College Downtown Campus 16 United Way of Metropolitan Dallas

PROPERTY HISTORIES 9

19

FACTORY SIX03â&#x20AC;&#x201A;(603 MUNGER AVE.)

208 N. MARKET ST.

1903

2000

1905

1926

2015

Constructed for the Brown Cracker & Candy Co. Sunshine Biscuit Co.

1985

West End Marketplace including Planet Hollywood, 10-screen cinema

Cinema closes; Planet Hollywood closes a year later Granite Properties acquires Factory Six03 with plans for office and restaurant space

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Constructed for B.F. Avery Plow Co.

1950

Sold to the Awalt Furniture Co.

20

800 JACKSON ST. 2011

Redeveloped into a multi-tenant office building

2017

First class renovation to be completed by Crescent Real Estate

1913

Constructed for the S.G Davis Hat Co.

1969

Sold to the Office Equipment Co.

2011

Redeveloped into a multi-tenant office building

2017

First class renovation to be completed by Crescent

SUMMER 2016


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In 2015, The Dallas Holocaust Museum announced plans to build a new facility, accross the DART rail tracks from its current location on Record Street.

6

20

LAMAR

8

4A

4B

501 ELM ST. 1906

Built for the Kingman Texas Implement Co. Sold to the John Deere Plow Co.

ST.

7

21

211 RECORD ST. 1980s

Redeveloped Into a multi-tenant office building In 1980s

2017

First class renovation to be completed by Crescent

1911

Built for the Southern Supply Co. Sold to the John Deere Plow Co.

1980s

Redeveloped into a multi-tenant office building

2017

First class renovation to be completed by Crescent

LANDMARK BUILDING CENTER 1801 N. LAMAR ST. 1913

2005

LATE 1970s

2015

Built as warehouse for General Electric, in use for more than 50 years Converted into office and retail space

1980

Part of the building leased by Dallas FBI until 2002

SUMMER 2016

Fully renovated to reposition as highend “creative office” space Spear Street Capital buys Landmark from Foundry Capital Partners and Argosy Real Estate, tenants include Uber

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T TOOLBOX

PHOTO: ISTOCK / PHOTO ILLUSTRATION: MICHAEL SAMPLES

THE MODERN MAGIC

OF SITE SELECTION PREDICTIVE ANALYTICS HAVE BECOME AN INDISPENSABLE TOOL IN SITE SELECTION BY JEFF BOUNDS

Companies across North Texas are using cutting-edge data wizardry to peer into the future when choosing sites for their operations. And few are better at it than The Container Store. Experts say the 38-year-old Coppell retailer is a leader in employing what’s known as “predictive analytics” to tease out optimal locations for its stores, which sell high-end storage and organization products such as shoe racks, canisters, and baskets. With number-crunching and visualization help from South Carolina-based eSite Analytics, The Container Store brass know how much income residents in a given neighborhood have, but also how long customers may sit in traffic when they’re likely to visit a prospective store. Valerie Richardson, the chain’s vice president of

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real estate, can factor in information that correlates with The Container Store customers, such as how many people in a geographic area give to charity or enjoy drinking wine. “Depending on the size of the investment, one bad store could cost you five good stores,” she says. “If you make the wrong decision, you live with the costs for five to 15 years. An unsuccessful store is a huge contingency on the balance sheet.” Data crunching ahead of time can tell Richardson when it’s best to avoid pulling the trigger on a prospective site. Given the lay of the land in a certain trade area, it may make sense to have an online strategy versus an off-line strategy, says Charles Wetzel, the Dallas-based president of eSite. “There may not be real estate available,” he says. Across the spectrum of commercial real estate, predictive analytics is no longer a “nice to have” when picking locations, according to Joseph Cahoon, director of the Folsom Institute for Real Estate at Southern Methodist University’s Cox School of Business. Companies that fail to use the predictive analytics risk being left behind. “In corporate relocations, firms are using it

SUMMER 2016


DOING BUSINESS DOWNTOWN?

Your #1 source for doing business Downtown downtowndallas.com/business downtowndallas.com/business


T TOOLBOX “ALL OF THIS IS REDUCING THE CYCLE OF MANAGEMENT DECISION-MAKING. WHAT ONCE TOOK MONTHS CAN NOW BE DONE IN DAYS OR HOURS.” — AMIT BASU, SMU’s Cox School of Business

not just to choose Dallas-Fort Worth, but also specific places in North Texas,” Cahoon says. “Whether it’s for large users of space, like State Farm or Liberty Mutual, or for smaller operations like coworking, predictive analytics is helping companies make better-informed decisions when choosing locations.”

Murray Rice, associate professor of geography and environment at UNT

LOCATION INTELLIGENCE

The notion of using data to inform site selection is hardly new. The 1960s saw the genesis of a pursuit called geographic information systems, or GIS, meaning using computers to create maps out of geographic information. But it has only been within the last five to 10 years that a division of geography surfaced to apply geographic ideas for business decision-making. That division is called location intelligence. A branch of location intelligence, dubbed business geography, helps organizations of any stripe — for-profit, nonprofit, or governmental — make wise choices about the locations and markets where they operate. “A convergence of technologies have allowed this to happen,” says Murray Rice, an associate professor of geography and environment at the University of North Texas in Denton. In addition to census data, which has been available online since the 1990s, companies can now access information from consumers’ credit card transactions. “Now it’s not just many people have a high school education in a neighborhood,” Rice says. “It’s how much do households spend on flowers in a given year in that neighborhood.” Beyond credit card purchases, companies can get information from LinkedIn showing what jobs and skills are in demand within a geographic area. Google provides geographic information for mapping. From social media, marketers can harvest consumer opinions on, say, the best restaurants on a given street. Telecommunications companies have information on how often consumers visit stores in a neighborhood. “What’s happened is it has all become more accessible through the Internet,” says Amit Basu, whose titles at SMU’s Cox School include chair of the Information Technology

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and Operations Management department. Also, cloud computing allows companies big and small to rapidly and affordably access powerful software and hardware for crunching information, as well as storage to keep it safe. And, as the “Internet of Things” becomes more widespread, even more data will become available as more inanimate objects get connected to cyberspace. “All of this is reducing the cycle of management decision-making,” Basu says. “What once took months can now be done in days or hours.”

MULTIPLE VARIABLES

In real estate, two game changers have emerged, says Evan Stair, a Dallas-based director of GIS at CBRE. One is the ability of modern systems to handle large numbers of variables simultaneously. The other is that technology can create images out of the data that non-technical people can use to make better decisions. CBRE recently acquired Chicago’s Forum Analytics, which provides sophisticated modeling and mapping to help companies with finding the best locations for various operations. “We’re rolling this out to all our clients,” Stair says of Forum’s services. “It’s more a value-add. In real estate, we don’t make a product. The thing we deal with is information.” It’s not just the big players in commercial real estate that offer cutting-edge predictive help for their customers. In Dallas, for example, Site Selection Group produces forecasts that show clients, say, how much they can improve their software development staff by increasing wages $5 an hour. Separately, Site Selection has built software to help track receivables on economic incentives, both for companies that receive them and the agencies that provide incentives, company CEO King R. White says. On top of all that, Site Selection’s staff can produce 20-year forecasts of future supply and demand of labor for specific occupations in particular markets. “This is what the market has been asking for,” White says. “People don’t care about the past. They want to know about the future.” Although number crunching and data wizardry can take much of the guess work out of site selection, it’s always important to remember an old computer science adage: Garbage in, garbage out. “You can never take out the art involved in it,” Stair says. “Some people think it can be as sound as physics, with no room for error. But there is always the human element.”

SUMMER 2016


C COMMUNITY

Diane Butler, Chairman Greg Kraus, Vice Chairman

CHAMPION’S CIRCLE Balfour Beatty Construction Bank of America Merrill Lynch/ Charitable Foundation, Inc. Bank of Texas BBVA Compass & Foundation BURY CBRE HFF Hoblitzelle Foundation Jones Day

CHAIRMAN’S CIRCLE Behringer BBG Chicago Title Company/ Fidelity National Financial (FNF) Cushman & Wakefield Compatriot Capital Crow Holdings Capital Partners, L.L.C. Deloitte. EY Gables Residential Granite Properties Holt Lunsford Commercial Hunt Realty Investments, Inc. JLL JPMorgan Munsch Hardt Kopf & Harr P.C. NorthMarq Capital

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.

Republic Title of Texas, Inc. The Howard Hughes Corporation Union Bank

PRESIDENT’S CIRCLE Chief Partners LP Comerica Bank Corgan Cushman & Wakefield Goldman Sachs Grant Thornton Hart Commercial Invesco Real Estate Jackson Walker L.L.P. Jackson-Shaw KDC KeyBank KPMG LegacyTexas Regions Bank Stewart Title StreetLights Residential Trammell Crow Residential US Bank Wells Fargo Bank Winstead PC

BENEFACTOR’S CIRCLE Amegy Bank American National Bank of Texas Beck Group

Berkadia Commercial Mortgage Bradford Companies Capital One Bank Corinth Properties First United Bank Fischer & Company Frost Bank Gaedeke Group LLC Gardere Wynne Sewell LLP Gensler GFF Haynes and Boone, LLP Hillwood Construction Services Independent Bank Inwood National Bank Kane Russell Coleman & Logan PC Kimley-Horn and Associates, Inc Lincoln Property Company Locke Lord LLP Lowery Property Advisors Matthews Southwest Mill Creek Residential Trust LLC NexBank Peloton Commercial Real Estate Schwob Companies Stonelake Capital Partners Strasburger & Price, LLP Stream Realty Thackeray Partners The Retail Connection

WHO WE ARE TREC is where 1,700 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. SUMMER 2016

TIER REIT, Inc. Trammell Crow Company Venture Commercial Real Estate, LLC

PATRON’S CIRCLE* Advantage Valet Eliza Solender Fauxcades GXA Network Solutions Hilton Anatole Hotel Hillwood J&S Audio Visual Omni Hotel Dallas Ryan Britt Productions Steve Crosson * Donors who have provided in-kind goods and services

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

D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 6 7


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

STRATEGY BKD Texas Instruments Toyota Motor North America

CATALYST Active Network AT&T Baylor Scott & White Health Capital One Bank Chase Chickasaw Nation Comerica Bank Dallas Fort Worth Int’l Airport Hilti North America Hunt Consolidated, Inc. JC Penney Company, Inc. ONCOR Tom Thumb Food & Pharmacy Wells Fargo

ADVOCATE 7-Eleven, Inc. Akin Gump Strauss Hauer & Feld Amegy Bank of Texas American Airlines Axxess Baker Botts L.L.P. BB&T BBVA Compass CBRE Group, Inc. Children’s Medical Center Citi Copart Corrigan Investments, Inc. Dallas Morning News Dal-Tile Corporation Deloitte LLP Dr Pepper Snapple Group Energy Future Holdings Exxon Mobil Corporation EY FedEx Office Fidelity Investments Fluor Corporation Forest City Texas, Inc. Frito-Lay North America Glazer’s Golden Living

Haynes and Boone, LLP HEB and Central Market Highland CapitalManagement LP HKS IBM Corporation Invesco Jones Day KPMG LLP Kroger Food Stores Littler Mendelson, P.C. Locke Lord LLP Lockheed Martin Luminant Manpower Medical City Dallas Hospital/ Medical City Children’s Hospital Methodist Health System Microsoft Corporation NEC Corporation of America New York Life Regional HQ Omni Dallas Hotel Omnitracs PwC Reliant Energy Rent-A-Center Sheraton – Dallas TDIndustries Tenet Healthcare Corp. Texas Central Partners Texas Health Resources Texas Scottish Rite Hospital for Children Thomson Reuters, Tax & Accounting TM Advertising Torchmark Corporation TXU Energy UT Southwestern Medical Center LegacyTexas Bank Winstead PC

BOARD OF ADVISORS Abbott Labs Abilene Christian University Acadian Ambulance Accenture ActivTek Global LLC Airbus Helicopters, Inc.

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Alcatel-Lucent Alix Partners Americas Auto Auction Ameriflex Andrews Distributing Andrews Kurth LLP Army & Air Force Exchange Arthur J Gallagher & Co. AustinCSI Austin Industries Avanade Baker & McKenzie, LLP Bank of America Bank of Texas, N.A. Barnes & Thornburg BDO USA, LLP The Beck Group Blue Cross and Blue Shield of Texas Blur Group Big 12 Conference Bracewell & Giuliani LLP Boston Consulting Group Brierley & Partners Brinker International, Inc. Bury C.C. Young Cantex Continuing Care Capital Institutional Services Cassidy Turley Century 21 Judge Fite Co. Choctaw Casino Resort CHRISTUS Health CIGNA Healthcare ClubCorp Inc. Coca-Cola Refreshments Colliers International Commemorative Air Force Commerce Bank Consolidated Communications Cook Children’s Healthcare Corgan Associates, Inc. CP&Y, Inc. Cushman & Wakefield Dallas County Community College District Dallas Cowboys Football Club Dallas Marriott City Center Dallas Stars Hockey Club

Dallas Women’s Foundation Dean Foods Company DFW Excellerator DHD Films E Smith Realty Partners Ebby Halliday, Realtors Edelman PR Worldwide EF Johnson Technologies Emerge Education EN Consulting, Inc. Etihad Airways The Fairmont Dallas Federal Reserve Bank of Dallas Flowserve Corporation Fossil Fox Sports Southwest Freeman Frost Bank Furniture Marketing Group Gardere Wynne Sewell LLP Generational Equity Gensler Goldman Sachs Grant Thornton LLP Greatbatch, Inc. Greenberg Traurig, LLP Gulfstream Aerospace Corp. Gupta & Associates HDBD HFF Hill & Wilkinson Hilton Anatole Hilton Worldwide HNTB Corporation Holland & Knight LLP HollyFrontier Corporation HOLT CAT HPI Real Estate & Ross Tower HUB International IBC Bank InStaff Interceramic, Inc. Int’l Leadership of Texas Ivie & Associates Jackson Walker L.L.P. Jacobs JE Dunn Construction JLL Johnson Controls Inc. LeTourneau University Life School Linked Executive Search Live Nation Lockwood, Andrews, & Newnam

SUMMER 2016


McKissack & McKissack MHBT, Inc. Midway Press, LTD Mission Foods Montgomery Coscia Greilich Moss Adams LLP NACD North Texas Chapter Neiman Marcus Nestle Waters North America Nextt Northwood University The Novo Group NTT Data, Inc. NYLO Hotels, LLC Oliver Wyman ORIX USA Corporation Parker University Parkland Foundation PDS Technical Services People Performance Resources Pioneer Natural Resources PlainsCapital Bank Pollock Paper Distributors Point B Poo-Pourri Premier Truck Group Publicis Hawkeye Reflect Systems Regions Bank Responsive Ed Solutions Rosewood Crescent Hotel Rosewood Property Co. Santander Consumer USA SAP- America Saulsbury Industries Schneider Electric Sidley Austin, L.L.P. Slalom Consulting Southern Methodist University Southwest Airlines Southwest Office Systems Squire Patton Boggs (US) LLP Staffelbach, Inc. State Farm Insurance Strasburger & Price, LLP Strategic Staffing Solutions Susan G. Komen Taste of Dallas TDJ Enterprises Texans Can Academies Texas A&M University Texas Star Alliance Texas Woman’s University Thompson & Knight LLP Time Warner Cable TopGolf Town of Addison Trane Commercial Systems

SUMMER 2016

TravisWolff, L.L.P. TrustPoint Management Turner Construction Co. Universal Mind UMB Bank N.A. University of Texas at Arlington University of Texas at Dallas UnitedHealthcare URS Corporation Verizon Wireless Village Green Holding, LLC Vinson & Elkins L.L.P. Walgreen’s Company Weber Shandwick Southwest WFAA-TV Whitley Penn, LLP Weil, Gotshal & Manges LLP WFF WNA Worldlink

LEAD 1820 Productions AAA Texas, Inc. Account Control Technology, Inc. Ackerman McQueen Acme Brick Company Adolfson & Peterson Construction Adolphus Hotel Advocare International, L.P. Alcuin School Alliance Data Allsteel Wilson Ameriflex APAC - Texas, Inc. Ash Grove Cement Company Automatic Data Processing Aviall, A Boeing Company Bain & Company, Inc. Balfour Beatty Construction Beasley, Hightower & Harris, P.C. Berger Engineering Co. Beshear Group Boka Powell, LLC Brunswick Group, LLP Business Jet Center Carlo’s Bakery Carrington, Coleman, Sloman & Blumenthal, L.L.P. Carter Financial Management Cawley Partners Champion Partners Chandler Signs L.L.P. CityDoc Urgent Care Commercial Metals Company Community Coffee Consumer Credit Counseling Service of Greater Dallas, Inc. Costco Crowe Horwath LLP CyrusOne

D&M Leasing Dallas Foundation Dallas Mavericks Databank, Ltd. Dave and Busters DCT Industrial DeGolyer and MacNaughton Domain at Midtown Park EnLink Midstream LLC Essilor of America, Inc. Estrada, Hinojosa & Company, Inc. Gables Residential Trust George W. Bush Foundation Guardian Mortgage Co. Gibson, Dunn & Crutcher LLP H Mart Companies Inc. Halff Associates, Inc. Hampton Inn & Suites Hart Group, Inc. Hazel’s Hot Shot, Inc. Hill + Knowlton Strategies Holmes Murphy and Associates Huawei Technologies Huddle Productions Hunt Construction Group Hunton & Williams LLP Huselton, Morgan & Maultsby, PC Hyatt Regency Dallas Hyatt Regency DFW Imaginuity Interactive, Inc. In-N-Out Burger J-BJ Marketing LLC Joule, A Luxury Collection Hotel KidsCare Therapy Kimberly-Clark Corporation LBJ Infrastructure Group LLC Linebarger Goggan Blair & Sampson, LLP Linkex, Inc. Lucas Group Martin Marrietta Mary Kay Inc. McAlister’s Deli – Dallas McKinsey & Company, Inc. Mend Metl-Span, LLC Metrocare Services Monogram Apartment Collection MW Logistics, LLC MWH Americas, Inc. Munsch Hardt Kopf & Harr, P.C. Nationwide Networking Results, Inc. New York Life Regional Headquarters North Central Surgical Hospital Ocean Prime Restaurant Office Depot Business Solutions OHL

PdvWireless Pegasus Community Credit Union Peter O’Donnell, Jr. Polsinelli PC Post Properties, Inc. Prudential Asset Resources Questcare Medical Services The Ritz-Carlton, Dallas Rehab Synergies Republic Title of Texas Rone Engineering Services Ltd. Ruth’s Chris Steak House Russell Reynolds Associates, Inc. Securadyne Systems Sewell Automotive Companies SevenTablets Signet Jewelers Limited Smile Workshop Stream Realty Southwest International Trucks Sparks Agency Spine Physicians Institute Stahls’ Staff One HR State Fair of Texas Stream Realty Partners Structure Tone Southwest Sun Holdings, LLC Summit Financial Group Texas A&M University Texas Capital Bank Texas Oncology Texas Rangers Baseball Club The Taylor The Westin Dallas Downtown Towers Watson Tradition Senior Living Trinity Basin Preparatory Triumph Learning Union Pacific Railroad University of Phoenix University of South Carolina Career Center USAA VeepWorks Virgin America Airlines VNA Vonage Business VOX Global W Dallas – Victory Hotel Walton Development and Management Weaver Westin Galleria Dallas Woodbine Development Corporation Worldwide Express XO Communications Yates Construction

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SUCCESS STARTS IN ALLEN, TEXAS Allen is a vibrant community of creative and talented people driven by achievement. Allen’s success is no accident—it is a testament to the community spirit of amazing people who want a better place for their families. A pro-business environment and a superior quality of life come together to empower Allen’s residents and businesses to achieve higher levels of success. Be Part of Something Bigger — Allen’s community spirit, high-performing schools, family friendly recreation, and vibrant economy continue to attract business and residents to our city. We can rattle off the standard stats and accolades, but we do things differently. And that is what makes us great–we are a vibrant and active community that connects our businesses, workers, and residents together to open the door for new opportunities. We Attract Talent: A cool place to work is one of the top ways your business can win when competing for talent. It turns out that great places to live also make for great places to work, making our abundant shopping and dining, entertainment and sports teams, and award-winning parks and trails a valuable recruiting tool. No matter where you find yourself in Allen, you are not far from a park or recreational facility. The City of Allen’s Parks and Recreation Department has been a finalist for the National Gold Medal Award for a

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number of years, and for good reason: residents in Allen enjoy nearly 1,200 acres in park land and 57 miles in scenic nature trails. In addition to the extensive local amenities available, Allen’s location in the Dallas-Fort Worth area places a global city within reach. We Support All Stages of Life: Keeping talent is just as critical as attracting talent, and being in Allen helps businesses support employees as they grow into different stages of life. As their needs change, employees do not have to choose between relocating and the lifestyle they want whether they are a young software developer looking for a walkable environment or an engineer looking for great schools and parks for their family. We are An Active Partner: Strong companies spark new ideas, cultivate inspired leaders, and attract more talented workers. The Allen EDC may be charged with recruiting businesses to the city, but recruitment isn’t where our relationship ends. Whether it is a simple introduction to other community members, fulfilling research needs, or attending the city’s annual job fair, businesses in Allen enjoy a supportive, service-based EDC that is committed to ensuring their continued growth and success. We Want You Here: To find out how you can be the next big chapter in Allen’s story, we invite you to contact us or visit our website at allentx.com.

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DALLAS ALLEN PUPULATION

98,143 FASTEST GROWING CITIES IN THE NATION:

#16 WORKFORCE WITH BACHELOR’S DEGREE OR HIGHER:

53% AVERAGE HOUSEHOLD INCOME:

$126,874 SUMMER 2016


SUCCESS STARTS IN

ALLEN, TEXAS

Call Us: 972-727-0250

contact@allentx.com | AllenTX.com


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FORT WORTH

DALLAS ARLINGTON

ARLINGTON, TX – THE AMERICAN DREAM CITY THE REGION’S PREMIER ENTERTAINMENT DESTINATION IS QUICKLY BECOMING A LEADING DESTINATION FOR INVESTMENT.

ARLINGTON POPULATION

388,125 MILES FROM DFW AIRPORT

8 VISITORS PER YEAR

10 MILLION A TOP 20 LEADING LOCATION 2015 AREA DEVELOPMENT MAGAZINE

CONTACT ARLINGTON OFFICE OF ECONOMIC DEVELOPMENT 101 W ABRAM ST, ARLINGTON, TX 76010 (817) 459-6155

Perfectly situated between Dallas and Fort Worth and only 8 miles from DFW International Airport, Arlington enjoys unparalleled access to the Metroplex. Its convenient location, combined with a strong economy, business-friendly environment, and a skilled, diverse workforce continues to attract high-profile investments to the city. Built on a legacy of bold choices and a can-do spirit, Arlington has an extensive track record of recruiting globally recognized corporations and developing large-scale projects. Arlington is home to the only General Motors assembly plant that builds GM’s award-winning, full-size SUVs. In 2015, GM announced a $1.4 billion investment in the Arlington plant, one of its largest single investments in a US manufacturing facility. The overhaul to Arlington Assembly will expand the plant to more than four times the size it was when it opened more than 60 years ago. Arlington is also home to major institutions and attractions, including the University of Texas at Arlington, Six Flags Over Texas, the Texas Rangers, the WNBA’s Dallas Wings, and the Dallas Cowboys’ $1.2 billion AT&T Stadium (the most technologically advanced stadium in the world). Arlington’s Entertainment District has been in the spotlight with the recent announcement of the Texas Live! Entertainment Complex. Texas Live! will feature best-in-class restaurants, retail and entertainment venues, along with a 300-room upscale hotel with convention space. Long-known as the region’s entertainment hub, attracting nearly 10 million visitors each year, Ar-

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lington is increasingly becoming known as a center for engineering, advanced manufacturing, technology and medical sciences. Texas Health Resources, one of the largest healthcare systems in Texas, L-3 Communications, a leader in the aircraft simulation and training industry, and Progressive, a global player in the aerospace industry, represent just a few of the key investments being made in Arlington. This emerging center of innovation is fueled in part by Arlington’s skilled, educated workforce. Arlington provides quality education programs at all levels, where a student can excel from kindergarten to PhD without leaving the city. The University of Texas at Arlington, a tier one research institution and the second largest university in the UT system, is a growing research powerhouse providing businesses with a steady supply of talent. Recently branded ‘the American Dream City’, Arlington takes pride in its business community and works to ensure that businesses from across the globe have the space, resources and assistance needed to help them realize their dreams. “We want to help you make your business case to invest in Arlington,” says Bruce Payne, Arlington’s Economic Development Manager. “The City of Arlington is dedicated to attracting businesses that are committed to bringing quality employment and capital investment to Arlington.” In Arlington, the possibilities are endless. It’s a place where aspiration, collaboration and hard work get dreams done.

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ARLINGTON

Perfect Location | Vibrant Economy | Can-Do Culture

ARLINGTON: WHERE DEALS GET DONE Arlington is in the spotlight and perfectly situated at the epicenter of North Texas. Beyond our world-class entertainment is the backbone of our city: Economic vitality, a diverse, skilled workforce and a culture of global opportunities. Office of Economic Development ArlingtonTX.gov/ecodev | 817-459-6155 | ecodev@arlingtontx.gov


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THE COLONY

DALLAS THE COLONY AVERAGE HOUSEHOLD INCOME

$129,628 RETAIL TRADE AREA POPULATION

155,425 EDUCATIONAL ATTAINMENT, BACHELOR’S DEGREE OR HIGHER:

50.44% MEDIAN AGE

35

THE COLONY ECONOMIC DEVELOPMENT CORPORATION: AWARD-WINNING COMMERCIAL AND RESIDENTIAL DEVELOPMENTS AND A LAKESIDE LOCATION WITH EASY ACCESS TO ALL POINTS OF THE DFW METROPLEX ADD UP TO A BRIGHT FUTURE FOR THIS VIBRANT COMMUNITY! REAL EXPERIENCES The brands opening and expanding in The Colony reflect what today’s consumer wants, an experience! Shopping for the home takes on a whole new meaning at the 1.86 million-square-foot Nebraska Furniture Mart, which opened in the 400-acre Grandscape Development in 2015. Owned by Warren Buffett’s Berkshire Hathaway, Inc., this retail Mecca kicked an already strong market into high gear with additional powerhouse retailers, unique restaurants and entertainment venues like Topgolf; Rock and Brews, owned by KISS front man Gene Simmons; Hard 8 Barbecue; and Lava Cantina, a 28,000-square-foot restaurant and live music depot now underway. The world’s largest sports store, SCHEELS, will also soon be calling The Colony home.

CONTACT KERI SAMFORD, DIRECTOR THE COLONY ECONOMIC DEVELOPMENT CORPORATION 972-624-3127 EDC@THECOLONYTX.ORG WWW.THECOLONYEDC.ORG

REAL EASY Thanks to the City’s ongoing investment in infrastructure, accessibility along major road systems including S.H. 121 and Main Street will keep up with the dramatic growth in the community and throughout the region. Drive times to key locations are equally convenient: get to DFW International Airport in 15 minutes; Downtown Dallas in 25 minutes; I-35 in under 10 minutes; and Dallas North Tollway in 5 minutes or less.

REAL OPPORTUNITY Businesses are expanding or relocating to The

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Colony and bringing the added benefit of jobs and sales and property tax revenue. Companies like Panasonic and Quest Resource Management have recently moved to The Colony, while long-time partners like Edward Don & Co. and RAVE (formerly Pizza Inn) continue to thrive.

REAL LIVING Beautiful master planned communities like The Tribute showcase award-winning golf courses and provide a diverse choice of homes with access to the recreation offered by Lake Lewisville, hike and bike trails, parks, sports complexes and even a Hawaiian Falls Water park. Accolades confirm The Colony’s desirability for living, working and visiting. CNN/Money magazine has recognized the city as one of the Top 20 Best Places to Live in the U.S. and Top 10 Most Affordable Homes and The Colony is a perennial on the top of D Magazine’s Best Suburbs list.

REALIZE YOUR VISION While this great community has grown, there’s still room for your business or family with prime office/flex, light industrial, retail and residential space available. Whether it’s a location along S.H. 121, Main Street, or in master-planned mixed use developments like Grandscape, Austin Ranch, or The Cascades, there is a perfect location for every need, and every vision. To learn more, visit www. thecolonyedc.org.

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OFFICE/FLEX • INDUSTRIAL • RETAIL • RESIDENTIAL AWARD-WINNING COMMERCIAL DEVELOPMENTS A GROWING, EDUCATED POPULATION BUILDING FOR THE FUTURE UPSCALE LIVING & RECREATION IN THE HEART OF D/FW METROPLEX Top 20

Top 10

Best Places to Live in the U.S.

Most Affordable Homes in the U.S.

in Best Suburbs List

Top 25

Top 15

CNN/Money Magazine

CNN/Money Magazine

D Magazine

Safewise

of 50 Safest Texas Cities

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


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DALLAS

DALLAS POPULATION SIZE

1,241,162 WORKFORCE WITH BACHELOR DEGREE OR HIGHER

29.0% MEDIAN AGE

32.4 AVERAGE HOUSEHOLD INCOME:

$41,354 CONTACT J. HAMMOND PEROT 214.670.1685 JOSEPH.PEROT@ DALLASCITYHALL.COM 1500 MARILLA STREET, 5CS DALLAS, TEXAS 75201

CITY OF DALLAS OFFICE OF ECONOMIC DEVELOPMENT Dallas is all ways connected — from business to geography, talent to culture, technology to infrastructure. With a rich history of success, entrepreneurship, art, and family, Dallas is a perfect reflection of an increasingly connected world. To The World. Centrally located in the continental U.S., Dallas’ strategic location achieves worldwide market access through international logistics and transportation. Dallas’ two commercial airports, DFW International Airport (DFW) and Dallas Love Field (DAL), combine for 7,067 weekly non-stop flights to 187 global destinations. Dallas is less than 3.5 hours from North America’s business centers by air and 98% of the U.S. is within 48 hours by ground. Dallas’ cargo airports, intermodal rail yards and five major highways provide easy product delivery to the east and west coasts of the U.S. as well as to Mexico and Canada. To Talent. Dallas is the 9th largest city in the U.S. with a population of over 1.2 million. Dallas is the cultural and economic core of the internationally important Dallas/ Fort Worth (DFW) Metropolitan area with access to over 6.8 million people. Educational opportunities abound in the Dallas area; more than 25 colleges and universities provide a trained and ample workforce. To Business. Dallas has over 65,000 businesses and 269 corporate headquarters that each employs more than 1,000 globally, and those numbers continue to grow. Leading Dallas headquarters include AT&T,

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MoneyGram, Southwest Airlines, Comerica, Tenet Healthcare, Brinker International, Texas Instruments, Neiman Marcus and Dean Foods. Other industry clusters are high-tech manufacturing, food processing, construction, healthcare, entertainment, energy, and transportation, providing a diversified Dallas economy. To Affordability. The ACCRA Cost of Living index consistently reports that it is less expensive to live in Dallas than in other large U.S. Metro areas. In 2010, Forbes magazine ranked Dallas the 14th most affordable city in America. Dallas offers a combination of low taxes, reasonable housing prices and low costs of living and doing business providing the environment and support your company needs to succeed and grow. To Lifestyle. From world-class sporting events to a bustling nightlife and music scene, some of the best food and shopping in the U.S. to exquisite museums, parks, architecture, and art — Dallas offers a truly diverse mix of culture and lifestyle. The Dallas Arts District is the largest urban cultural district in the nation. The Dallas parks and recreation system covers 21,000 acres and includes lakes; jogging and bike trails; recreation centers; sports complexes; playgrounds and picnic areas; pools; golf courses; driving ranges, and the Dallas Zoo. Dallas is a pro-business city that has many advantages to offer any company. For more information on Dallas, please visit www.dallas-ecodev.org.

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BIG THINGS HAPPEN IN DALLAS WHEN YOU PARTNER WITH US

The Dallas Office of Economic Development is here to partner with you on your project, big or small. When youâ&#x20AC;&#x2122;re ready to discuss your business or development needs, contact us: (214) 670-1685 DallasEcoDev.org

BUSINESS. SKILLS. IDEAS. NETWORKS. LIVING. CULTURE. Photography: Large Dallas skyline, Dallas Love Field Airport - Urban Fabric Photography; Winspear Opera House - DCVB


FAIRVIEW SPECIAL ADVERTISING SECTION

DALLAS FAIRVIEW AVERAGE HOUSEHOLD INCOME:

$112,466 RESIDENTS WITH BACHELOR DEGREE OR HIGHER:

57.5% MEDIAN AGE

39.2 LAND AREA:

5,492 ACRES/ 8.58 SQUARE MILES CONTACT RAY DUNLAP ECONOMIC DEVELOPMENT MANAGER 972-886-4222 RDUNLAP@FAIRVIEWTEXAS.ORG 372 TOWN PLACE FAIRVIEW, TX 75069

BIG CITY AMENITIES. SMALL TOWN COUNTRY CHARM. In the heart of Collin County, Fairview is a welcoming community for thriving businesses and families. Considered by many as a ‘treasured gem’, the Town of Fairview is a unique North Texas community. Fairview is open for business and is poised for growth offering a unique development opportunity along the US-75/121 intersection. With more than 800 acres, the Commercial Planned Development District (CPDD) offers unique zoning that allows for commercial, retail, single-family and multi-family uses. Fairview is a great location for retail of all types. With a retail trade area comprised of both strong demographics and psychographics to match the town’s pro-business attitude, retailers and developers will find Fairview is right for them. The more than 8,000 people who call Fairview home enjoy the idyllic setting of rolling hills and natural creeks. The award winning schools and high quality of life are the top reasons executives from all over Dallas choose to call Fairview home; making it the leading North Texas community to both live and work. Many of the town’s developed subdivisions consist of one and two acre home sites. Popular with families with children, ‘empty nester’ professionals and retirees alike, Fairview retains its rural flavor while continuing to quietly grow each year.

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A quality education is one of the cornerstones of sustained, long-term economic development. Fairview is fortunate to be served by two school districts recognized for their commitment to quality education, the McKinney and Lovejoy Independent School Districts. In addition to fine academic programs, these school districts offer a well-rounded menu of extracurricular activities. Located nearby, Collin County Community College offers a wide range of classes for those seeking a degree or merely wanting to increase their knowledge. Fairview also enjoys all the conveniences of modern cities The Village at Fairview offers top-notch dining at Cane Rosso, Gloria’s and Texas Land and Cattle along with a variety of entertainment options such as iPic Theatre and Splitsville Bowling. Noah’s of Fairview is also available for private events and meetings. Two hospitals (Texas Health Presbyterian Allen and Medical Center of McKinney) are located virtually on the north and south borders of Fairview. Stacy Road provides the Town ready access to Central Expressway and attractions throughout the Metroplex. Fairview has opened its front door for new commerce. The Town offers excellent growth opportunities for businesses without sacrificing the quality of lifestyle Fairview is known for.

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SUMMER 2016

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CM

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CY

BRING YOUR DREAMS TO FRISCO, TEXAS 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 4.6 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. 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. One of those, The Star in Frisco, is

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home to the world corporate headquarters and training facility of the Dallas Cowboys. In fact, five professional sports teams are headquartered here. Multiple mixed-use developments are ready for corporate relocation, along with Hall Park, one of the largest office developments in North Texas. Frisco’s dynamic business climate is possible through low unemployment and one of the lowest municipal property tax rates in North Texas. The Frisco Economic Development Corporation is here to help when you’re ready to make your corporate move, from offering competitive incentives for qualified projects to connecting your executive team with a network of resources to make a smooth transition. There’s room to grow in Frisco, Texas. Bring your dreams! Learn more about building a better business and a better life at FriscoEDC.com/videos and search #5BMILE on Twitter.

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CMY

FRISCO

DALLAS

FRISCO RESIDENTS WITH BACHELOR’S DEGREE OR HIGHER

60.2% POPULATION AS OF 6/1/2016

155,835 MEDIAN HOUSEHOLD INCOME

$115,603

SUMMER 2016

K


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DISCOVER THE LEWISVILLE ADVANTAGE Join a thriving economic hub in the Dallas/Fort Worth (DFW) region with superior LEWISVILLE access and infrastructure, a low tax environment, quality workforce, and more. LewDALLAS isville has over one million square feet of new construction for office and industrial development in the pipeline. In addition new single-family, townhome and multifamily developments are underway providing a great place to live, work and play. Lewisville provides a choice of location options for new businesses. Visitors and residents enjoy a variety of recreation and shopping opportunities including a 2000+ acre nature preserve, a historic downtown, Lewisville Lake, and Vista Ridge Mall. Lewisville has one of the lowest combined property tax rates in DFW, making it an attractive location for business and residents. Many companies call Lewisville home and a number of them are familiar names. Lewisville has a strong and dynamic business community, with a robust blend of businesses from Fortune 500 companies to innovative start-ups. LET US PARTNER WITH YOU. BECOME A PART OF THE FABRIC OF OUR COMMUNITY â&#x20AC;&#x201D; FIRST-RATE IN DFW FOR ENTERPRISE, RETAIL, RESIDENTS, AND VISITORS.

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ROCKWALL

DALLAS ROCKWALL POPULATION SIZE

44,628 MEDIAN AGE

37 HIGH SCHOOL COMPLETION RATE

99% 2015 MEDIAN HOUSEHOLD INCOME:

$92,718 CONTACT ROCKWALL ECONOMIC DEVELOPMENT CORPORATION 2610 OBSERVATION TRAIL ROCKWALL, TEXAS 75032 (972) 772-0025 SFRANZA@ ROCKWALLEDC.COM

EXPERIENCE THE BEST Located on Interstate 30 just east of Dallas and nestled on the shores of Lake Ray Hubbard, the City of Rockwall has incorporated two very dynamic aspects of living; the amenities of a big city with the hometown charm. The community has grown to become prosperous and famous for their outstanding schools, expanding businesses, affordable housing, and thrill seeking recreational activities. Rockwall has many exciting districts, and one that shines considerably would be the Harbor. Bordering Lake Ray Hubbard, the Harbor has grown into an exciting location that attracts locals and staycationers alike. This district delivers a range of preferences for any occasion from fine dining, weekly concerts during the summer, and the beautiful lake side view. The Harbor also appeals to many businesses with the new TrendHR tower that provides exclusive Class A office spaces. While less than a minute away is the luxurious Hilton Dallas Rockwall Lakefront hotel with an abundant conference space to accommodate any business gathering or large event. Though the Harbor is thriving, Rockwall also has a smaller district that encompasses all the history it has accumulated. The Downtown Historic Square represents hometown businesses and history of Rockwall. Shop at Rockwall’s chic boutiques that offer items from across the globe, experience fine dining, and enjoy organic local produce at the weekly farmer’s market. As Rockwall continues to grow, the quality of life speaks for itself. According to the Family Circle

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ROCKWALL Magazine, Rockwall was named “Best Town for Families”. With that in mind, Rockwall was also named as #1 for job creation in the United States by CNN Money Magazine. Being recognized for these titles is no coincidence. Rockwall has integrated great options for their community. Texas A&M Commerce at Rockwall and Collin College have recently made Rockwall their home. These institutions have allowed many to continue their education while being close to home. The Rockwall Technology Park encompasses over 400 acres of land. This unique park has flourished immensely with corporations such as SPM manufacturing, L-3, Bimbo Bakeries USA, Colmet, Channell Commercial, and many others. The Rockwall Economic Development Corporation was founded in 1996 and collaborates with developing and existing companies to help their business thrive and have continued success. The Rockwall Economic Development Corporation is completely dedicated to ensure the growth of Rockwall by attracting and expanding businesses by offering land incentives and site development grants. Another great thing about Rockwall is you are far enough from the big cities, but close enough if you want to get there. That is why businesses are choosing to relocate and expand in Rockwall. Businesses desire Rockwall’s regional location and interstate accessibility. Rockwall EDC is actively recruiting businesses and businesses are growing and prospering here. Come see for yourself!

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MCKINNEY: SITUATED FOR BUSINESS PHOTO: BRAD CLAWSON

Strategically located 30 minutes north of Dallas, McKinney offers a rich history and well-maintained historic district, a warm community atmosphere throughout its varied neighborhoods and a multitude of natural assets: rolling hills, trees, parks and lakes, which truly make the city “Unique by nature.” McKinney is perfectly situated for business with a highly-educated workforce, a population nearing 162,000, available space opportunities, and competitive economic development incentives for qualifying projects. Home to McKinney National Airport, a first-class corporate aviation airport with on-site U.S. Customs, McKinney is also a short drive from DFW International and Love Field airports connecting you to nearly every major global market. McKinney is noticed and highly regarded on a national stage with many recognitions and accolades including Money Magazine’s #1 Best Place to Live in America in 2014, up from #2 in 2012, #5 in 2010, and

McKINNEY

DALLAS MCKINNEY HISTORIC DOWNTOWN MCKINNEY

#14 in 2008. McKinney residents agree that our city is the best place to live, work and play. Local companies range from Fortune Global 500 corporations to homegrown startups. The McKinney Economic Development Corporation and the City of McKinney have partnered to focus efforts on attracting, retaining and expanding businesses that add vitality to the local economy. Businesses are relocating and growing here; come see how McKinney is situated for your business!

POPULATION

161,905 COLLIN COUNTY LABOR FORCE:

496,793 DEVELOPED WITHIN CITY LIMITS:

60%

McKINNEY, TEXAS The gateway to your business future.

McKINNEY ECONOMIC DEVELOPMENT CORPORATION 972-547-7651 • www.mckinneyedc.com

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SUMMER 2016


SPECIAL ADVERTISING SECTION

NORTH RICHLAND HILLS: FIND YOUR PERFECT FIT With benefits like a central location, an educated and abundant workforce, and superior quality of life amenities, North Richland Hills (NRH) is the perfect place for your business’s success. NRH is strategically located 15 minutes from and between DFW Airport, the Alliance Global Logistics hub, and downtown Fort Worth. For nearly 70,000 residents, NRH offers a seamless balance of the conveniences of suburban living with easy access to all of the necessary urban resources and amenities, while also being consistently ranked as one of DFW’s safest cities. In 2016, the City continues to grow steadily with 180,000 square feet of office space absorption (CoStar), 6 pending mixed-use projects representing over 1,000 residential units, and over 250 single family starts with an average value over $400,000. This impressive growth places NRH as

NORTH RICHLAND HILLS

FORT WORTH

NORTH RICHLAND HILLS one of the fastest growing cities in Tarrant County and DFW. Continuing the City’s development growth, North Richland Hills is excited to welcome two unique restaurants to the southeast corner of NE Loop 820 at Rufe Snow Drive: Babe’s Chicken Dinner House, ranked the most popular restaurant in DFW by Zagat; and Sweetie Pie’s Ribeyes, the steakhouse concept of the Babe’s restaurant family recently featured in Texas Highways, the Travel Magazine for the State of Texas. To find your perfect fit in North Richland Hills, visit www.NRHED.com.

AVERAGE NEW HOME VALUE:

$400,000+ BRICK & MORTAR BUSINESSES:

1,200 MILES OF HIKE & BIKE TRAILS:

30

|

ALLIANCE DFW

SUMMER 2016

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C COMMUNITY

FIGHTNIGHT XXVIII The Real Estate Council held its 28th annual FightNight extravaganza in May at the Omni Dallas Hotel. More than 1,400 attended the sold-out event, which began with a special VIP reception with legendary boxer Sugar Ray Leonard. As one of the region’s largest philanthropic events, FightNight XXVIII raised more than $1.3 million for The Real Estate Council’s foundation, which fosters community development in four target areas: education, housing, job creation, and the environment. This brings the grand total raised over 28 years to more than $24 million. Chaired by Greg Fuller with Granite Properties, this year’s sponsors were Cushman & Wakefield, Granite, Republic Title, Stantec, HFF, CBRE, JLL, Berkadia and Goldman Sachs. PHOTOGRAPHY BY JAMES EDWARD

LINDA MCMAHON, GREG FULLER, SUGAR RAY LEONARD, AND DIANE BUTLER

GUNNER RAWLINGS, MAYOR MIKE RAWLINGS, AND CAROL REED

DEMIAN SALMON, MICHAEL KRYWUCKI, AND GLENN CALLISON

MARGARET SELID, JIM KNIGHT, AND JESSICA HEER

JEFF PRICE, RANDY FLEISHER, AND DARYL MULLIN

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SUMMER 2016


L LEADERSHIP

MAKING CONNECTIONS THAT LAST The Real Estate Council’s ALC program helps participants become immersed in the community—and industry. BY RYDER SMITH

MEGAN SMITH, MARY STOCKS, AND HALEY COLLARD

ELIZABETH MALONE AND WILL MUNDINGER II

Suzan Kedron graduated from Columbia University with a bachelor’s degree in architecture in 1992. She went on to practice architecture during the day and take night classes at the South Texas College of Law. Today, her architecture background greatly influences her law career, allowing her to better interact with architects, engineers, and developers on projects. Currently a partner at Jackson Walker, Kedron focuses on land use, zoning, and municipal work. Shortly after moving to Dallas, she became involved in The Real Estate Council and, on the advice of a more senior TREC member, pursued involvement in TREC’s Associate Leadership Council program and graduated in the 2000 class. She says the goals of the ALC are to help foster deep relationships and also to educate young professionals about the impact the real estate community can have on the region. It was especially helpful for her as a newcomer to Dallas, as it helped her get oriented, she says. Kedron appreciates the ALC because it is industry-specific, and highly recommends involvement for emerging real estate leaders. Although there are numerous leadership training programs in the area, she says, “for a young professional in the real estate industry, it is a really unique program.” On a personal level, she says the people she met through the ALC have become a support system. “Even to this day, I can call any of my ALC classmates to ask for assistance in any area,” Kedron says. “You develop an

“EVEN TO THIS DAY, I CAN CALL ANY OF MY ALC CLASSMATES TO ASK FOR ASSISTANCE IN ANY AREA.” — SUZAN KEDRON

in-depth, personal relationship with your classmates. Because of the age criteria on the program, you’re able to grow up with these people, so to speak.” Since graduating from the ALC program in 2000, Kedron has remained active in TREC. She served on the organization’s PAC for six years and its executive board for three years. She also served on the ALC’s Steering Committee for three years. Kedron’s ongoing TREC involvement lets her deepen industry relationships—and give back. “I think that the business community owes an obligation to help our younger people develop and learn the industry here in Dallas,” she says.

ASSOCIATE LEADERSHIP COUNCIL

SARAH SCOTT AND JEFF MONTGOMERY

SUMMER 2016

The Real Estate Council’s Associate Leadership Council (ALC) is a 10-month leadership development program for 27- to 37-year-old commercial real estate professionals designed to inspire and educate future leaders. For more details, visit recouncil.com.

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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.

JULY.. JULY 28 ALC Application Deadline Through the Associate Leadership Council (ALC), commercial real estate professionals come together over 10 months to attend leadership development programs, receive personalized training with a professional executive coaching firm and implement a community service project.

AUGUST.. AUGUST 17 Capital Markets Summit, 7 a.m., Dallas Country Club With a strong regional economy, but an uncertain outlook for the national and global markets, industry experts discuss what challenges and opportunities may lie ahead. TREC and Real Estate Deal Sheet have partnered to bring you the Industry Insights series, presented by D CEO.

AUGUST 23 2016 Congressional Forum, 11:30 – 1:30 Annual luncheon featuring a panel discussion with federal congressional leaders who focus on current and anticipated federal legislation and the impact on the Dallas business community.

SEPTEMBER.. SEPTEMBER 1 Chamber Live, 8:00 – 9:30 a.m. Orientation for new and current members to learn about the DRC and its initiatives.

SEPTEMBER 13 Public Officials Series with Speaker Straus, 11:30 – 1:30 The Dallas Regional Chamber is pleased to host Speaker of the Texas House of Representatives Joe Straus for a luncheon to preview the 85th Texas Legislative Session. Speaker Straus will address the issues and challenges facing our region and state along with insights into the upcoming Texas Legislative Session.

OCTOBER.. OCTOBER 6

L LEADERSHIP

JUMPING IN AND GIVING BACK The DRC’s Leadership Dallas program helped Louisiana native Michael Alost get involved. BY RYDER SMITH

After moving to North Texas to join KDC in 2013, one of the first things MICHAEL ALOST Louisiana native Michael Alost did was get involved in the Dallas Regional Chamber’s Leadership Dallas program. “I was new to town. I wanted to know more about North Texas and how the community worked,” he says. “Second, I wanted to find ways to contribute ... and I thought it would be a good way to get introduced to some of the need and charitable activities going on in Dallas.” Alost says the experience exceeded his expectations, from the caliber of his Leadership Dallas classmates to the deep appreciation he came to have for the city. Dallas’ can-do spirit was driven home in his group’s class project, which focused on renovating the Nexus Recovery Center, a drug-treatment facility that provides residential treatment to pregnant and parenting women who need to bring their children into treatment with them. The project started out with a little painting and carpet in one of the play areas, but grew as Alost and his classmates began to see a deeper need. They raised money and sought in-kind donations that ultimately allowed them to renovate all of the common spaces on two floors. This meant freshly painted walls, new flooring, new furniture and appliances, a renovated reception area, and artwork throughout. The team also installed a children’s playroom with new toys and a quiet room for nursing and pregnant women. The effort “made a big contribution to a part of our community that needs support,” Alost says. “We’ve given them back their space in a very homey environment, and they seem to be very happy.” He says the Texas culture is a big reason why companies want to be a part of the Lone Star State. “As a base, we have this pioneer ethic of hard work, trust, personal responsibility, and support of friends and family,” Alost says. As senior vice president of KDC, Alost has seen DFW’s booming economy first-hand. Known for its live-work-play corporate environments, the company is behind some of the most exciting office projects in the region, from State Farm’s 2 million-square-foot campus at CityLine in Richardson to Toyota Motor Corp.’s North American headquarters in Plano. Despite all of the growth, “we have a lot of need in this community for people who are underprivileged and struggling,” he says. “With Leadership Dallas and the work I’ve been involved with on the charitable side, I’ve seen that our community raises more private donations than most communities in the nation.”

Giving Gala, Hilton Anatole, 6:00 p.m.

OCTOBER 11 Principal for A Day with Dallas Independent School District, All Day, reception at 4 p.m. Partnership between the Dallas Regional Chamber and Dallas ISD which brings community leaders into schools across the district.

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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.

SUMMER 2016


P PLACEMAKERS

SMALL PROJECTS, BIG IMPACT

With the Incremental Development Alliance, Dallas developer Monte Anderson aims to spread the small-developer religion nationwide. BY CHRISTINE PEREZ

PHOTO: HANNAH RIDINGS

Monte Anderson grew up in Oak Cliff and has spent much of his development career in the southern sector. He believes the best strategy for bringing economic vitality to the region is “one house, one building, one block, and one business” at a time. The president and CEO of Options Real Estate Investments Inc. is well known for his redevelopment of the historic Belmont Hotel and surrounding neighborhood. More recently, he has turned his attention to Duncanville, where he has partnered with the city on economic and real estate development initiatives. With more than two dozen projects, he has brought mixed-use back to the community with ground-level retail topped by residential units. In all, more than 30 new housing units have been added to three core blocks of main street. Anderson also is working his magic in Midlothian, with a 131-acre mixed-use project. He’s the perfect example of the big impact a small developer can have. But there’s one key thing that sets him apart: Along with developing space, Anderson works to help tenants become owners, stepping up to help with credit and provide mentorship to budding entrepreneurs. “Ownership is important, especially in South Dallas,” he says. “It gives people an opportunity to control their own destiny, and it creates the connectivity.” When people are owners, they care more about their neighborhoods and become more involved. It also gives people an opportunity to build wealth, which strengthens the entire community. Anderson’s passion for this philosophy led him to co-found the Incremental Development Alliance. The national nonprofit aims to help regenerate neighborhoods by growing the ranks of small developers across the country. People who build where they live are more apt to care about the long-term viability of their projects, Anderson says. “It can be as small as taking a house and adding a grandma flat, or having the business down the street add two apartments on top,” he says. Along with supporting small-scale developers, IDA’s mission is to encourage

SUMMER 2016

walkability by changing regulations to favor incremental projects, to line community streets with independent businesses, and to train people in the construction trades. It hosts one-day workshops throughout the country, as well as weekend bootcamps. Anderson refers to small community developers like him as “farmers.” Every day, he walks from his residence in downtown Duncanville to his office nearby. “I learn more about the neighborhood from those walks and from living and working here,” he says. “It’s something no market study could ever reveal.”

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VIEW FROM THE TOP

BY OLIVIA NGUYEN

THOMAS NOLAN Chairman and CEO, Spirit Realty Capital

Spirit Realty Capital relocated its headquarters from Scottsdale, Ariz., to Dallas last fall. Now almost completely staffed, it will move to more permanent office space in the Harwood District in September. The 13-year-old company invests in single-tenant retail and commercial buildings throughout the United States. Spirit has been making waves since Chairman and CEO Thomas Nolan Jr. was appointed in 2011. A year later, the company went public as a real estate investment trust. Today, its portfolio value has grown to nearly $10 billion. Its holdings represent more than 2,600 properties in 40 states. We recently sat down with Nolan to talk about Spirit’s growth and plans for the future.

WHAT COMPELLED YOU TO MOVE SPIRIT’S HEADQUARTERS TO DALLAS? Spirit is a national company, and Dallas offers ease of transport. It’s also a great place to succeed, grow, and build the talent pool for the long term. I also settled on Dallas for personal reasons relating to my family; I was in a nice city before [moving], but it wasn’t a place I envisioned myself living long-term. Along with a great location, everything Dallas offers made me want to reside and move here. I had the good fortune to where my work and my personal ambitions could align on that.

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WHAT MADE YOU DECIDE ON THE URBAN CORE OVER A SUBURBAN LOCATION? The Dallas-Fort Worth area has an excellent selection of submarkets to choose from. Ultimately, the decision came back to our employees’ best interest and where we felt the business would be able to grow and thrive. Since going public, we’ve grown our portfolio from $3.5 to approximately $10 billion. From our employees’ perspective, we wanted them to be in a dynamic and vibrant urban area with easy access to great amenities, and it’s hard to beat the Uptown area when it comes to that.

ARE THERE ANY SIGNIFICANT CULTURAL, ENVIRONMENTAL, OR OTHER DIFFERENCES YOU’VE NOTICED SINCE MOVING HERE? Both Scottsdale and Dallas are wonderful, and each city has its own perks. For Spirit, the business-oriented climate that Texas has made it the right choice for us to grow our company and talent for the long term. Dallas’ central location, great real estate community, and easy access to airports has been a huge advantage. We have assets spread across the country; from here, we can easily hop on a plane and get where we need to be.

SUMMER 2016


CONFIDENTLY GLOBAL.

EXPERTLY LOCAL. CUSHMAN & WAKEFIELD is a leading global real estate services firm that helps clients transform the way people work, shop, and live. We provide strategic real estate solutions to clients in Dallas-Fort Worth and around the world. With our deep local knowledge, relentless curiosity and rigorous focus, we position our clients as the center of everything we do.

+1 972 663 9600 | cushmanwakefield.com


Dallas-Fort Worth Real Estate Review — Summer 2016  

The Rebirth of the West End; Southern Dallas; North Texas: Logistics Hub

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