UPWARD ONWARD Updates on the biggest projects Underway SITE SELECTION:
DFW POSITIONS FOR LONG-HAUL SUCCESS
THE CRANE REPORT:
WHO’s building what, where
PRIDE OF OWNERSHIP. PEACE OF MIND.
swinerton.com | ENR 2020 Top 20 Contractors | 100% Employee-Owned
ON THE COVER:
AT&T’s storied Spirit of Communication statue, nicknamed “Golden Boy,” recently took up residence in the AT&T Discovery District. Photo by Michael Samples
14 ANATOMY OF A DEAL
Welcome Letter . . . . . . . . . . . . . . . . . . . . . . . . . 6
FOUNDATIONS DFW Market Statistics, Economic Indicators, and Commercial Real Estate News. . . . . . . . . . .8
ANATOMY OF A DEAL Upward & Onward: Updates on the Biggest Projects Underway in DFW . . . 14
FEATURE Site Selection: Taking the Long View . . 28
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THE SMALLEST DETAILS MAKE FOR THE BIGGEST SPLASHES. CLASS AA SPACE REINVENTED.
FOR MORE INFORMATION, CONTACT: Ramsey March, Sara Terry, or Chase Lopez at 214.267.0400 TRAMMELLCROWCENTER.COM
owned by institutional investors advised by
leased and managed by
BUILDING TOMORROW TOGETHER DFW Maintains Position as Top Metro in the U.S. . . . . . . . . . . . 37 E XC L USI V E LY P UB L ISHE D B Y D MAGAZINE PARTNERS
39 THE CRANE REPORT
PUBLISHER & EDITORIAL DIRECTOR Quincy Preston email@example.com
CREATIVE DIRECTOR Michael Samples
THE CRANE REPORT
Who’s Building What, Where . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Christine Perez Bianca R. Montes
SENIOR EDITOR Alex Edwards
CONTRIBUTING EDITOR Sandra Engelland
CONTRIBUTING WRITERS Lauren Hawkins Dave Moore Gloria Salinas
INTERNS Chantal Canales Riley Farrell Sophia Gonzalez Ben Swanger
SCORECARD DFW’s Top Office and Industrial Leases . . . . . . . . . . . . . . . . . . . . . 47
AUDIENCE DEVELOPMENT DIRECTOR Amanda Hammer
AUDIENCE DEVELOPMENT COORDINATOR
SPECIAL ADVERTISING SECTION
Sarah Nelson South
City Profiles Profiles of cities around the region . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
BUSINESS DEVELOPMENT Steve Reeves 214-523-5259 firstname.lastname@example.org
COMMUNITY The Real Estate Council, Impact Investors . . . . . . . . . . . . . . . . 61 Dallas Regional Chamber, Top-Level Members . . . . . . . . . . . . . 62 Dallas Regional Chamber, Leadership Dallas . . . . . . . . . . . . . . . 64 Calendar of Events . . . . . . . . . . . . . . 65
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The Real Estate Council Photos: Young Guns Casino Night . . . . . . . 66 The Real Estate Council, TREC Leadership . . . . . . . . . . . . . . . 67 View From the Top: Darren Crall, PGA of America. . . . . . . 68
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. ©2020 All rights reserved. No part of this publication may be reproduced or reprinted without written permission. Neither the Dallas Regional Chamber nor The Real Estate Council nor D Magazine Partners is a sponsor of, or committed to, the views expressed in these articles. The publisher is not responsible for unsolicited contributions.
SEE YOURSELF IN FRISCO
Imagine living and working in Frisco, Texas. It’s 25 miles from DFW International Airport and downtown Dallas, and seven professional sports organizations call Frisco home. Imagine working with a highly-educated, robust talent pipeline, and sending your kids to one of the most sought-after public school systems in America. Can you see yourself in Frisco? You’ll fit right in.
Visit FriscoEDC.com to find out more.
Frisco Economic Development Corporation
A letter from the Dallas Regional Chamber and The Real Estate Council 2020 CHAIR OF THE BOARD John Olajide
STRENGTHENING OUR RESOLVE TO BUILD A BETTER COMMUNITY
DALE PETROSKEY President and Chief Executive Officer Dallas Regional Chamber
LINDA McMAHON President and Chief Executive Officer The Real Estate Council
Seemingly overnight, the COVID-19 pandemic dramatically altered the business landscape and the way both the Dallas Regional Chamber and The Real Estate Council serve our community. Months later, the death of George Floyd
in Minneapolis in May and the worldwide protests that followed were a stark reminder of how much work remains in our shared pursuit of racial equity. Our commitment to serving you and ensuring the long-term prosperity of Dallas-Fort Worth remains stronger than ever. Consider the steps our organizations have taken. At the DRC, our Board in June approved a new Diversity, Equity, and Inclusion (DEI) Council, which will include work in four pillars: Diversity in Leadership, Education and Workforce, Community Investment in Underserved Areas, and Policing and Criminal Justice Issues. The move follows our decision to hire a Senior Vice President for DEI, putting a permanent framework in place at both the Board level and at the day-to-day management level to ensure that these issues are front and center every day. The DRC also recently updated its mission statement, adding the phrase “for all people” to highlight the importance of making the Dallas Region “the best place in the United States for all people to live, work, and
do business.” Through these action items, we have strengthened the DRC and our community for the long term. At TREC, we remain focused on Public Policy, Leadership Development, and Community Investment. For 25 years, TREC members have been working in the most distressed communities in Dallas. We have not only been donating funds but have deployed our members to volunteer. That is why we have such strong bonds with these communities and their anchor nonprofit institutions. This year, TREC launched the Dallas Collaborative for Equitable Development, which is deploying our resources in addressing issues of Job and Wealth Creation, Housing, Small Business and Community Leadership in the Forest District in South Dallas/Fair Park, the Bottom neighborhood, and West Dallas. We are doing this work in partnership with Dallas College (formerly Dallas County Community College District), LiftFund, and Texas Mezzanine Fund through a $6 million investment from JPMorgan Chase. This work is critical, but addressing the racial disparities of the commercial real estate industry is also a focus at TREC. For our work to become even more impactful, it is essential that our members reflect the communities in which we do business. TREC is doubling down on our workforce development strategies to increase diversity within the industry. Over the coming months, we will be finalizing the development of a workforce program to provide the skills and tools necessary to be successful in commercial real estate and business. For TREC and the DRC, COVID-19 has changed the way we do our work, but it has not limited our resolve. We look forward to creating a better community that provides opportunities for all people.
President and CEO Axxess PRESIDENT & CEO Dale Petroskey CHIEF OPERATING OFFICER & CHIEF FINANCIAL OFFICER Angela Farley COMMUNICATIONS & MARKETING, SENIOR VICE PRESIDENT Scott Goldstein RESEARCH AND INNOVATION, SENIOR VICE PRESIDENT Duane Dankesreiter RESEARCH AND INNOVATION, MANAGING DIRECTOR Eric Griffin
2020 CHAIRMAN Bill Cawley Cawley Partners VICE CHAIRMAN Mike Ablon PegasusAblon PRESIDENT & CEO Linda McMahon VICE PRESIDENT, LEADERSHIP & CULTURE Holland Morris CFO Carla Brandt
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TEXAS DESTINATION FOR
Keri Samford, Executive Director of Development 972.624.3127 • email@example.com • www.TheColonyEDC.org
A baseline for the region’s future
JLL: SOLID LEASING ACROSS DALLAS’ NEWEST BUILDINGS Despite the pandemic and other challenges, leasing of newer assets remains “exceptionally strong,” a recent JLL study finds. The most prominent office buildings in Uptown and downtown Dallas are continuing to fare well, despite uncertain times, according to a new report from JLL. Of the newer buildings, only Harwood 10 and The Luminary are not stabilized, but that’s to be expected as they were only recently delivered and are still in initial lease-up, according to Walter Bialas, director of research for JLL. “What’s important here is that this solid leasing across the newest buildings should give these premiere assets a performance cushion as the market adjusts to near- to mid-term economic stresses,” Bialas said.
Across the board, the newer deliveries have performed well, taking three years to achieve stabilization of 90 percent occupancy or more. As of late May, leasing averaged 89 percent in the newest deliveries. This is on par with the Uptown Class A average, which stood at 88 percent at the end of Q1. In comparison, the CBD’s Class A assets were 75 percent occupied. Other than Weir’s Plaza, which is 65 percent leased, assets that are under construction have minimal commitments in place. This development approach is customary in Dallas, Bialas said, adding that “solid leasing should provide balance to operating incomes and serve as a downside performance cushion as we work through this period of uncertainty.”—Christine Perez
NEWER DALLAS OFFICE BUILDINGS FARE WELL PROJECT
17 Seventeen McKinney Harwood No. 7—Frost Tower KMPG Plaza at Hall Arts Parkview at 1920 McKinney McKinney & Olive 1900 Pearl PwC Tower The Union The Luminary The Epic Harwood No. 10 Weir’s Plaza The Link 300 Pearl Victory Commons
369,017 167,735 461,306 142,486 536,000 261,537 494,300 420,695 104,119 294,820 220,548 297,000 292,041 199,000 364,733
2010 2015 2015 2016 2016 2017 2018 2018 2018 2019 2019 * * * *
91% 79% 96% 95% 97% 88% 88% 94% 22% 94% 72% 65% 4% 4% 0%
TOTAL BUILT / UNDER CONSTRUCTION TOTAL BUILT
JLL RESEARCH: Q1
MIDYEAR INDUSTRIAL ABSORPTION ON PACE, DESPITE HEADWINDS TOP SIX Q2 DEALS TENANT
FedEx Ball Corp. AmeriPac Ocean Spray Teltech American Meats
Cedardale Distribution Center Majesitc Fort Worth South 4 Prologis DFW Mustang Park LogistiCenter at Dallas 1901 Lakeside Pkwy. 2875 E. Airfield Drive
Dallas Fort Worth Dallas Dallas Flower Mound DFW Airport
South Dallas South Fort Worth DFW Airport South Dallas Northwest Dallas DFW Airport
square feet), and AmeriPac (401,280 square feet). In all, more than 71 deals closed in the first half of 2020, CBRE reports, with new leases accounting for 36 transactions totaling 12.6 million square feet. For the past four years, annual absorption of industrial space across the region has topped 20 million square feet.
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Across the region, vacancy ticked up slightly to 5.9 percent, due to large speculative buildings that were delivered during the quarter. New-to-the-market buildings totaled 3.5 million square feet, with about 20 percent of the space preleased. Year-to-date deliveries total nearly 9 million square feet. Another 23.2 million
SIZE (S.F.) 776,629 678,568 401,280 270,000 198,854 140,056
SOURCE: CBRE RESEARCH, JULY 2020
With consumers staying home from stores during much of the second quarter of the year, the Dallas-Fort Worth industrial market saw continuing strong demand, mostly from consumer goods manufacturers, e-commerce companies, and third-party logistics operations. For a 39th consecutive quarter, the market enjoyed positive net absorption, according to new data from CBRE. A little more than 2 million square feet was absorbed in April through June, bringing year-todate absorption to just over 8.2 million square feet. This compares to 2019 mid-year absorption of 8.7 million square feet, CBRE reports. The commercial real estate firm tracked more than 5 million square feet in new deals signed in the second quarter, including leases from FedEx (776,629 square feet), Ball Corp. (678,568
square feet of industrial space remains under construction, with a third of that in the North Fort Worth submarket (8.9 million square feet). Other active markets include DFW Airport (4.6 million square feet), South Dallas (2.7 million square feet), South Fort Worth (2 million square feet), and North Fort Worth (1.9 million square feet). —CP
F FOUNDATIONS TREND
THE WORKPLACE OF THE FUTURE
REPORTS FROM GENSLER AND CUSHMAN & WAKEFIELD PROVIDE INSIGHTS ON HOW THE PANDEMIC MAY IMPACT ONGOING DEMAND FOR DFW OFFICE SPACE.
PHOTO COURTESY OF CUSHMAN & WAKEFIELD
PHOTO COURTESY OF GENSLER
Stay-at-home orders accelerated the work-fromhome movement. Now, property owners and commercial real estate professionals are working to determine what the impact will be when the pandemic subsides and everything shakes out. Two new research reports offer some initial guidance. A study from global architecture, design, and planning firm Gensler finds that although employees have adjusted to remote working, most would choose to return to the office. Researchers surveyed more than 2,300 full-time workers at companies with employees of 100 or more across 10 industries. It found that 44 percent do not want to work from home, 44 percent would embrace a flexible combination of office and remote working, and 12 percent would choose to work solely off site. Seventy-four percent of respondents said “the people” are what they miss most about the office. “The workplace is all about connection,” said Kelly Moore, Gensler strategy director and South-Central regional area practice leader for consulting. “Workers want scheduled meetings with colleagues face to face. We can certainly socialize over the phone and in our virtual
world, but there’s something very different about it when it’s that face-to-face atmosphere.” IMPACT ON OFFICE DEMAND A study from Cushman & Wakefield suggests that remote work will become a permanent part of the future—but working at the office will still be a primary focus. The firm compared results from surveys taken before the pandemic with about 50,000 responses gathered afterward. The data suggests that the workplace will no longer be a single location but an ecosystem of a variety of locations. The purpose of the office will be to provide inspiring destinations that strengthen cultural
connection, learning, bonding with customers and colleagues, and support innovation. Cushman & Wakefield expects demand to remain steady balancing social distancing’s relaxing of space density with fewer workers occupying space simultaneously. Ran Holman, who leads Cushman & Wakefield’s Dallas office, said that new workplace strategies will be influenced by local markets. “As these ecosystems develop,” he said, “they will develop with the character of the marketplace.” According to the study, three-quarters of workers said collaboration has been easier with remote-work tools—an
increase of 10 percent over pre-COVID respondents. Most of the collaboration, though, has HOLMAN been taskoriented. What’s missing from remote working are opportunities for informal learning and mentorship. “Where relationships exist, they can be maintained [through technology],” Holman said. “It is more difficult to get a sense for somebody you don’t know when you’re not face to face.” Dallas-Fort Worth has been a top-performing office market for a long stretch. According to second quarter numbers from Cresa, the region has a current office vacancy of 16.6 percent, up just a bit from 16.1 percent for the first three months of the year. Holman said Cushman & Wakefield’s data suggests size requirements by tenants will mostly remain unchanged. “We expect current real estate footprint sizes to remain steady,” he said. “Flexible working practices may result in fewer people in the office at any one time, but that spacesaving is offset by the need to accommodate social distancing in the office.” —CP
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F FOUNDATIONS NEW URBANISM
GEARING UP FOR NET-ZERO ENERGY CONSTRUCTION DALLAS CITY COUNCIL APPROVES ENVIRONMENTAL ACTION PLAN THAT MAKES IT A REQUIREMENT FOR NEW COMMERCIAL FACILITIES STARTING IN 2030.
PHOTO ILLUSTRATION: MICHAEL SAMPLES
Dallas has its eye on the future, with the City Council recently unanimously approving its first climate action plan. The goal is to cut greenhouse gas emissions 43 percent by the year 2030. The comprehensive strategy includes a slew of action items that address eight goals and corresponding objectives: energyefficient and climate-resilient buildings; renewable, reliable, and aff ordable energy; access to sustainable transportation options; becoming a zero-waste community; water conservation; increase and leverage green spaces; better access to healthy food options; and improved air quality. For commercial real estate developers, the biggest change is a shift to net-zero buildings— structures that produce as much energy as they consume—for all new construction by 2030. Studies found that 64 percent of all greenhouse gas emissions in the city come from buildings and the energy sector, with 35 percent from the transportation sector. Property owners of existing buildings also are called to hetlp, with a goal to reduce energy use 15 percent below 2015 levels by 2030 and 20 percent below 2015 levels by 2050. Additional goals call for achieving carbon neutrality in municipal buildings by 50 percent
and 100 percent by 2030 and 2050, respectively. The city’s plan includes strategies for residential buildings, too, with a goal to cut energy usage in existing residences 10 percent by 2030 and 25 percent by 2050. The Comprehensive Environmental & Climate Action Plan, known as CECAP, took two major committees, two rounds of formal community meetings, more than 180 individual meetings with community groups, and a review of
over 9,000 unique comments from surveys and other public response mechanisms to develop and launch the plan. EarthX, Public Citizen, and the University of Texas at Arlington formed a Stakeholder Advisory Committee, which is comprised of more than 35 organizations. The City of Dallas worked with AECOM, a global infrastructure firm, along with many other organizations including the Dallas Regional Chamber, Lyda
Hill Philanthropies, Toyota North America, Dallas College, NCTCOG, and JPMorgan Chase, to develop CECAP. AECOM Senior Urban Planner Tatum Lau, who worked as the senior planner and deputy project manager for CECAP, says, moving forward, they expect an Environment and Sustainability Advisory Committee made up of professionals and community members to be formed for CECAP’s implementation. —CP
NORTH TEXAS RENTERS SHELTER-IN-PLACE DURING Q2 AS APARTMENT DEMAND AND DELINQUENCIES REMAIN LOW A RECORD NUMBER OF APARTMENTS UNDER CONSTRUCTION IN DALLAS-FORT WORTH COULD MAKE 2020 A RENTER’S MARKET While COVID-19 limited the demand for DFW apartments for Spring 2020, the occupancy rates remained strong, barely budging from 94.3 percent, according to Greg Willett,
chief economist at RealPage. “North Texas renters largely hunkered down and stayed in place during Q2,” Willett said. Apartment demand during the quarter was about 3,800 units, or a third of the normal Q2 volume from the last few years. “Still, that was the best product absorption pace recorded anywhere across the country,” he said. So far, the region has avoided rent cuts and a significant rise in delinquencies. The average monthly rent remained unchanged at $1,184.
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Like the rest of the country, the Dallas-Fort Worth area saw rising unemployment, especially in hospitality and retail trade. Those sectors depend on young adults who largely fuel apartment demand. If the pandemic continues, the multifamily market could see more delinquencies if unemployment benefits return to lower rates, Willett says. Affordable Class C apartments could be more vulnerable as many residents live paycheck to paycheck. Once the spread of COVID-19
dies down, DFW should continue its strong performance bringing new jobs to the region, which will help apartment occupancy. If the pandemic lingers, the region may “struggle to digest a block of new supply that’s by far the biggest on the way nationally,” Willett said. That surge includes about 44,000 market-rate units currently under construction. In the near term, the high number should make for a renter’s market when it comes to lifestyle apartment housing. —SE
F FOUNDATIONS DATA CENTERS
WORK-FROM-HOME DEMANDS SPUR GROWTH AT DFW DATA CENTERS
COVID-19 spurred growth in existing Dallas data centers in the first half of 2020 as companies sought more capacity for productive working from home while new leasing and construction slowed, experts say. While 2019 was “a very sleepy year” for local data centers, with about 26 megawatts of absorption —down from 40 to 45 megawatts in the prior few years—the first two quarters of 2020 has had about 24 megawatts of increased inventory, according to Haynes Strader, Vice President of Data Center Solutions at CBRE. “That’s a really good kickback into activity. And we’re also seeing several cloud providers circling the market, both from a colo and development standpoint,” Strader said in a recent interview on “Not Your Father’s Data Center Podcast.” The pandemic and increased user demands due to work-athome orders accelerated digital transformation plans for many companies, tightening timelines
from a few years to a few months. While many existing data centers received a boost from demands related to COVID-19, the market for new leases and data center construction slumped as some companies paused future plans. In Q2 of 2020, leasing activity for data centers declined to 2.98 MW of net absorption, most likely due to economic uncertainty, according to a CBRE market report. The current overall vacancy rate in data centers is 17.6 percent, the lowest vacancy rate since 2018, and CBRE experts predict leasing will continue to go up in the second half of 2020 with the increased digital demands. Just 15 megawatts in new construction is currently underway in the Dallas region, down 18.2 MW from a year ago. In the first half of the year, CyrusOne, DataBank, Digital Realty, and QTS delivered new capacity at existing facilities and Equinix opened its newest DA11 facility on North Stemmons
DIGITAL TRANSFORMATION PLANS COMPRESS FROM YEARS TO MONTHS AMIDST COVID-19
EQUINIX RECENTLY COMPLETED ITS NEW DA11 FACILITY IN DALLAS
Freeway near Oak Lawn Avenue. As uncertainty around the pandemic continues, Strader sees opportunities for growth in the industry. “For a lot of technology services
and financial services, the move to digital infrastructure and the expansion of their current digital infrastructure has been felt. And in Texas, that’s no exception,” he says. —Sandra Engelland
WHAT COVID-19 DOWNTURN? LOW INTEREST RATES AND POPULATION GROWTH FUEL RECORD HOUSING STARTS AND CLOSINGS DFW NEW HOME MARKET “HITTING ON ALL CYLINDERS” AS BUYERS SEEK HOME OFFICES, UPGRADED KITCHENS AND HIGH SPEED INTERNET Just looking at the numbers for DFW new housing starts and closings in Q2, you’d never know that a global pandemic was rocking the economy. For the first time in more than a decade, quarterly closings passed 10,000 single-family homes, an increase of 16.4 percent compared to a year ago. And starts also passed 10,000 units, a boost of almost 18 percent from Q2 in 2019. A record low mortgage rate and a SUMMER 2020
growing North Texas population are driving the trend, experts say. “It’s a strange period for real estate,” said Ted Wilson, principal with Residential Strategies Inc. “The demand destruction posed by job losses presents a significant obstacle for many segments of commercial real estate. For now, the new home market has eluded those challenges and is hitting on all cylinders.” The sale of new and existing homes declined during the shelterin-place order from mid-March through April. New home sales quickly rebounded in May, but existing home listings continued to be down in May, according to the Texas A&M Real Estate Center. Wilson said that existing homeowners were reluctant to put their homes on the market because of COVID-19, forcing more buyers to look at new home finished inventory.
New DFW households also fueled the demand, a trend experts see continuing. Many of the new households now and over the next five years will be Millennial buyers looking at homes under $300,000. Starts at that price point have increased 21 percent in the last two years, while starts over $400,000 dipped 4.6 percent. Low interest rates also are drawing renters into the home buying market. According to Freddie Mac, a July 9 survey showed a record low 30-year mortgage rate of 3.03 percent compared to a January rate of 3.72 percent. The COVID-19 shelter-in-place experience is shaping the wish lists of buyers. Cassie Gibson, senior vice president with Residential Strategies Inc., said, “Our builder clients share that in addition to the desire for larger square footages,
DFW Q2 HOUSING STARTS
I18% OVER Q2 2019
today’s buyer wants a home office for remote working, improved and upgraded kitchen space, integrated and high speed internet connections, and a neighborhood that offers hike and bike trails.” During the state-wide shutdown, many builders paused construction. But with the resurgence of demand in May and June, the development of vacant lots began booming again. “Builder appetite for new, rightpriced deals is as strong as ever,” Wilson says. —SE
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F FOUNDATIONS RETAIL
‘RETAIL FOLLOWS ROOFTOPS’ RETAIL CONSTRUCTION Construction remains “really conservative,” with Grandscape expansion and Shops at Chisolm Trail Ranch (FW) being the largest projects, according to Weitzman’s Ian Pierce.
2006-2010 DFW CONSTRUCTION (SF)
TOTAL: 18.9 MILLION SF 2010 OCCUPANCY: 87.1 %
5M 4M 3M 2M 1M
TOTAL: 12.8 MILLION SF 2020 OCCUPANCY: 87.1 %
5M 4M 3M 2M 1M
2020 RETAIL ROUNDUP Large regional projects opening or under construction include:
PHOTO COURTESY OF WEITZMAN
> The expansion of Grandscape in The Colony, anchored by the mammoth Nebraska Furniture Mart, featured the opening of sporting goods retailer Scheels in an impressive 331,000 square foot store. The center also added 110,000 square feet of family entertainment with Andretti Indoor Karting & Games. A 16-screen Galaxy Theatres is slated to open later this year. > The AT&T Discovery District, a new retail component at the telecom’s headquarters in downtown Dallas, will include 65,000 square feet of retail space including restaurants and a fitness club. Originally set to open in May 2020, the project has been delayed by the pandemic.
FITNESS CONNECTION’S NEW LOCATION AT GOLDEN TRIANGLE MALL IN DENTON
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> The Shops at Chisholm Trail Ranch in Fort Worth includes 225,000 square feet of retail space, with Ross, Old Navy, Marshalls, Ulta, and Petco recently opened.
> Gates of Prosper Phase 2 in booming Prosper will add 250,000 square feet of retail space to existing stores Walmart, Ross, Dick’s Sporting Goods, and DSW. > Food-related retailers continue a strong showing. A Sprouts in Mesquite opened in March, a Tom Thumb is set to open later this year at Live Oak and Texas streets near downtown Dallas, and a Specs Wine Spirits & Finer Foods is leasing a 16,770 square-foot space in Cedar Hill. > While 24 Hour Fitness and Gold’s Gym closed several locations, a number of other fitnessrelated businesses are opening. Fitness Connection opened a 55,600 square-foot space formerly occupied by DSW at Golden Triangle Mall in Denton. The company also leased a former Albertsons in Grand Prairie. Club4Fitness will open centers in Craig Crossing in McKinney, Valley Ranch Center in Coppell, Grand Prairie and Murphy.
The Dallas-Fort Worth retail real estate market entered the pandemic with record occupancy numbers, and the hit from COVID-19 to date is less than the downturn during the Great Recession of 2008-09, according to a mid-year report from Weitzman, a company specializing in the Texas retail real estate market. At the end of June, the overall market occupancy was 92.6 percent, down from 93.4 percent at the end of 2019. During the downturn of 200809, occupancy dropped to 86 percent. Since then, conservative retail construction has kept the market from oversupply. The occupancy rate is based on a DFW retail market inventory of 200.2 million square feet in shopping centers with 25,000 square feet or more. How are retailers, restaurateurs, and retail landlords surviving the challenges of greatly reduced shopper traffic, forced closures, and reduced occupancy? Some are taking advantage of the Paycheck Protection Program and others are working on rent deferrals and other accommodations while new retail construction has slowed
but not stopped. So far in 2020, the market has taken a hit with retailers who were already struggling announcing closures. JCPenney is closing its Music City Mall location in Lewisville, Belk closed its Dallas Galleria store in March, Nordstrom will close its Hurst location in 2021, Tuesday Morning announced six store closings, and Fort Worthbased Pier 1 Imports is going out of business, closing 14 area stores. Bed Bath & Beyond announced it is closing hundreds of stores but hasn’t yet identified local closures. If the pandemic stretches into 2021, the region will see more closures and a further decline in occupancy, experts say. No one knows how long it will last, but the downturn could end with a vaccine or better treatment for COVID-19. “Until that sense of safety is achieved, and consumer confidence increases, it’s up to the retail real estate industry and national, state, and local governments to help lessen the massive challenges faced by retailers and restaurants during the current pandemic,” said Herb Weitzman, executive chairman of Weitzman. The good news for the DFW retail market is that the local population growth continues and “retail follows rooftops.” A March 2020 census report noted that the region gained more residents in the last decade than any other metro area in the country. —SE
DFW CONSTRUCTION (SF)
A GROWING REGION PUTS THE SECTOR IN POSITION FOR A POST-COVID REBOUND
F FOUNDATIONS HEALTH CARE DESIGN
DFW IS A TOP TECH MARKET DFW is the fi fth largest tech talent market in North America, holding its rank from last year, according to a new report by CBRE. That puts DFW in good stead: “We expect that most techtalent markets and professions will thrive after the pandemic subsides, and many that facilitate remote work and DFW SCORECARD tech services such as e-commerce, social media and streaming services TECH TALENT LABOR POOL may have even greater growth opportunities accelerated by TECH DEGREE the COVID-19 COMPLETIONS disruption,” said SOURCE: Colin Yasukochi, CBRE TECH TALENT SCORECARD Executive Director of CBRE’s Tech Insights Center. “Markets that have strong innovation infrastructure —leading universities and high concentrations of tech jobs—will lead the next growth cycle.” Dallas is solidifying its status as a major tech employment hub, according to Jeff rey Eiting, co-leader of CBRE‘s Tech & Media Practice in Dallas. Coupled with the “explosive growth over the last fi ve years in tech degrees granted locally,” the region is an economic engine that lets tech companies grow organically, he said. That brain gain puts DFW at No. 8 in the number of techdegree completions among large markets. DFW produced roughly 5,000 more tech graduates (27,508) from 2015 to 2019 than new tech jobs (22,530). Overall in the CBRE tech talent scorecard, Dallas-Fort Worth ranked No. 13 of 50 metros in the U.S. and Canada, using 13 measures of competitive advantages including tech talent supply, growth, concentration, cost, and completed tech degrees. —QP
IMAGE VIA CRTKL
USING LESSONS FROM COVID-19 TO CREATE BETTER HEALTHCARE FOR THE FUTURE CRTKL’S JIM HENRY AND HIS TEAM FOCUS ON DESIGN SOLUTIONS With cases of COVID-19 and hospitalizations in Dallas-Fort Worth on the rise (as of mid-July), local experts are finding ways to rapidly expand hospital capacity now and learning how to better design healthcare facilities for the future. Jim Henry, Senior Vice President at CallisonRTKL who is leading the global firm’s COVID-19 recovery efforts out of Dallas, said his group is working with infrastructure firm Patriot on a design-build project for the U.S. Army Corps of Engineers that repurposes PODS (Portable On Demand Storage) units into self-contained rooms with hospital beds that can act as rapid response airborne infection isolation rooms. The self-contained patient care rooms include a glass door and sidelights, seamless flooring, multiple light sources, and special ventilation systems for patient comfort, negative air pressure systems, and filtering contaminants. Each unit can be deployed in minutes by plugging into electrical systems. Six prototype PODS have been deployed inside a tent at United Medical Center in Washington D.C. Looking at other short-term solutions, CRTKL issued a report on ways to take care of more patients by using unoccupied hotels and
vacant large retail spaces. Henry, who heads CRTKL’s healthcare practice, leads a global team from the company’s Republic Center office in Downtown Dallas. The architect said the firm was involved in many projects in China— including Wuhan—when cases of COVID-19 started popping up. Henry’s team started looking at ways to improve community health with respect to infectious diseases. “We asked, ‘How do we help?’ The intention behind that as a design practice focuses on having a positive impact on human heath and the human condition,” he said. His team members discussed the “much higher need for healthcare around the world” and how infectious disease influences the design of hospitals and other spaces. Henry offered examples of design strategies, such as a hospital CRTKL is designing in Shenzhen, China, which has a separate side for infectious diseases with its own entry, exit, and routing. As COVID-19 became a pandemic, the architecture firm reached out to clients offering extra assistance for COVID-related needs. For example, in Poughkeepsie, New York, they helped a hospital bring an emergency department
(part of a CRTKL-designed addition) online ahead of schedule to help handle a surge of patients. Even beyond the pandemic, healthcare facilities experts anticipate an increase in the need for more ICU beds because of an aging population. In less than 15 years, the number of senior citizens will out number the number of children for the first time in U.S. History, according to the CRTKL report. Older adults are more likely to need complex healthcare, and many hospitals are now going to flexible, universal rooms that allow for various levels of care in the same room with additional equipment and monitoring. The pandemic puts a spotlight on the state of healthcare and on the need for improvements that will outlast the virus. Henry likes the challenge. “It gives you an opportunity to pivot —really be creative and look at problems with a new lens. That’s the one benefit of being in this situation that we’re in right now, and to think positively about it: We ask what can we learn from it and how could it make us better at what we do? How can it create better outcomes?” he said. —Quincy Preston and Sandra Engelland
No. 8 OVER Q2 2019
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A ANATOMY OF A DEAL
AT&T’S STORIED 24-FOOT-TALL SPIRIT OF COMMUNICATION STATUE, NICKNAMED “GOLDEN BOY,” RECENTLY TOOK UP RESIDENCE IN THE AT&T DISCOVERY DISTRICT. ONCE THE LARGEST STATUE IN NEW YORK AFTER THE STATUE OF LIBERTY, ITS COMMISSION WAS COMPLETED IN 1916.
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A ANATOMY OF A DEAL
Despite the “pandemic pause,” development continues moving forward across the Dallas-Fort Worth region. Here’s a look at some of the newest and biggest projects underway. BY CHRISTINE PEREZ AND BEN SWANGER
PHOTO: MICHAEL SAMPLES
North Texans are known for playing a big role in creating their own destiny. It’s a region that asks, “Why not?” instead of “Why?” After all, this is a market that built a 6-acre park on top of a highway moat that separated Uptown and downtown Dallas during the last economic downturn, funded by broad private and public support. So, it’s no surprise that even in a time of uncertainty, the talented development force in Dallas-Fort Worth is soldiering on. They know that betting on the region is a solid investment. Not only does it offer a diverse, growing economy, people and companies continue to target the area for relocation. Its central location is another key asset. One of the most active developers in the region, especially on the office side, is Dallas-based KDC, which also does work across the country. “The entire North Texas region is performing very well and is one of the best areas for business growth in the United States,” said Steve Van Amburgh, CEO. “Although COVID-19 is creating a pause, the interest level for companies adding employees in DFW is as strong as ever. KDC’s business pipeline is solid, with a lot of interest from both coasts.” The lures that have long been in place still exist, Van Amburgh said: low cost of living, business-friendly environment, DFW International Airport, manageable traffic, and a solid city and state government. “A lot rests on when the pause slows down, as a lot of great companies are focused on our area, and new development will no doubt occur,” he said. “Everyone is just being careful and thoughtful about how COVID-19 will impact workspaces going forward.” Retail development is tempered until demand bounces back, but ongoing work continues at Grandscape in The Colony and the 225,000-square-foot Shops at Chisolm Trail Ranch. Retail also is a must-have component of all larger new office buildings. One of the biggest new retail projects, of course, is the five-block, $100 million AT&T Discovery District, which brings 65,000 square feet of new restaurant and retail space to the heart of downtown Dallas. Hotel projects are springing up all over the region, from Sam Moon Group’s new 283-room JW Marriott in the Dallas Arts District to the new 500-room Omni hotel that will be part of PGA of America’s new headquarters in Frisco. A shining star continues to be DFW’s industrial sector, with hotspots in Southern Dallas, DFW Airport, and North Fort Worth. Deliveries in the first half
of the year totaled 3.5 million square feet, and projects in the pipeline top 23 million square feet, according to a recent study by CBRE. The firm tracked 5 million square feet in new industrial leases signed in the second quarter of 2020 alone. On the office side, 1.2 million square feet of new space was delivered during the first six months of the year, with another 4.2 million square feet underway, according to data from JLL. Walter Bialas, the firm’s director of research in Dallas, said the big question for the future all centers around jobs. After an extended period of significant job growth, North Texas lost 226,000 jobs between May 2019 and May 2020. It’s a stunning number, but it still favorably compares to markets like Chicago, which lost 450,000 jobs and Los Angeles, which has lost 860,000 jobs. It’s hard to say with any kind of certainty what may lie ahead, Bialas said. “We’ve never seen anything like this; it’s indescribable what’s happening,” he explained. “JLL is not doing any forecasting of the office market right now because the uncertainty is so high and because everything is moving so rapidly.” Underlying fundamentals—a diverse economy, pro-business environment, a deep labor pool, and talent with a strong work ethic—bode well for the region’s future. “All those ingredients make for a better recovery,” Bialas said. “From a macro view, we’re very upbeat.”
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A ANATOMY OF A DEAL URBAN OFFICE
THE LINK Kaizen Development Partners didn’t need to look far for inspiration when coming up with a name for The Link, its new 25-story office tower. Situated on a triangular site formed by the intersections of Cedar Springs Road and Akard and Ashland streets, the development connects Uptown, Victory Park, and downtown Dallas. Delivering in the fall of 2021, it offers 292,041 square feet of Class AA office space, two street-level restaurants, an indoor-outdoor amenity floor, and immediate access to a full-service grocery store, bountiful surrounding retail, and Klyde Warren Park. Thirty-Four Commercial Partner Sarah Hinkley Kennington, who brokered the land sale to Kaizen, is leasing the project, along with Blake Shipley of JLL. “We feel confident in our positioning due to timing of our delivery,” she said. “We have poured 10 stories and will be one of the few new Uptown developments available in 2021.” The submarket on the north side of Woodall Rodgers has been one of the most vibrant not only in North Texas but across the country, seeing a burst of new development in the last couple of development cycles. Even with all the new projects, occupancy levels have remained strong—and lease rates have broken records. “The interest has been tremendous so far,” said Derrick Evers, managing partner and CEO at Kaizen. “The current state of affairs is impacting timing for some of the larger users, but we remain encouraged by our momentum. We’re fortunate to be one of only a handful of projects being delivered in 2021, and our objective remains unchanged—do deals that make sense for all stakeholders.” In times of uncertainty, it’s always best to go back to the basics, Evers adds: “Our investment thesis is rooted in the foundational principals of real estate—quality and location. We’re blessed to be in arguably the best market in the country for office development and growth.” Kennington said Kaizen and architect BOKA Powell were forward-thinking when designing The Link in 2018 and adding a wellness component to the base building package. The building will be equipped with an enVerid HLR (HVAC Load Reduction) system, which achieves exceptional indoor air quality and humidity control. “This helps with productivity, reduces allergens, and reduces the spread of viruses,” she said. “With a brand new building, we can offer tenants the advantage of building out new space that incorporates new wellness standards as they unfold, along with things like touchless entries, an amenity floor with an outdoor terrace, and reduced elevator loads with destination dispatch.” —Christine Perez
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RENDERINGS: BOKA POWELL
2601 OLIVE STREET, DALLAS DELIVERING: FALL 2021
A ANATOMY OF A DEAL
LOADED WITH LUXE FEATURES, THE LINK WILL OFFER A FULL AMENITY FLOOR WITH A SPACIOUS OUTDOOR TERRACE AND OVERNIGHT EXECUTIVE SUITES. WELL BEFORE THE PANDEMIC, DEVELOPER KAIZEN AND ARCHITECT BOKA POWELL INCLUDED A CUTTING-EDGE INDOOR AIR QUALITY SYSTEM THAT REDUCES ALLERGENS AND THE SPREAD OF GERMS.
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A ANATOMY OF A DEAL SUBURBAN OFFICE
PHASE IV, THE STAR With all office space spoken for within The Star, Dallas Cowboys owner Jerry Jones is moving forward with a speculative building at his 91-acre, $1.5 billion, mixed-use development in Frisco. The new $65 million project includes an 11-story, 325,000-square-foot tower and accompanying 1,200-car parking garage. Designed by HKS Inc., it will sit at the northwest corner of the Dallas North Tollway and Cowboys Way, north of Warren Parkway. Lincoln Property Co. is overseeing leasing of the new office building. “Office space at The Star is 100 percent leased and has been for some time, but we still get calls every week for space,” said Worthey Wiles, senior vice president at LPC. “Just this week we had 5,000-square-foot and 20,000-square-foot tenants looking for space at The Star. It will be great to have a new state-ofthe-art office building ready for occupancy because the demand is there.” Construction also is underway at The Star on a new 350,000-square-foot build-to-suit for Keurig Dr Pepper. It’s set for delivery next summer. Although retail has suffered as a result of the pandemic, the North Texas office sector has held up “relatively well,” Wiles said. “We have only seen a few office tenants ask for some relief across all submarkets,” he said. The Star is among the most successful mixed-use developments not only locally but across the country. Anchored by the Dallas Cowboys’ world headquarters, it includes Ford Stadium, luxury multifamily tower Twelve Cowboys Way, Baylor Scott and White Sports Therapy & Research Center, an Omni Hotel, and more than 200,000 square feet of restaurant and retail space. Looking ahead, Frisco should continue to fare well, Wiles said. “The submarket has been one of the best and most active submarkets over the past few years, and will continue to be as East Coast and West Coast companies continue to move to the region.” —CP
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RENDERINGS: HKS VIA LINCOLN PROPERTY COMPANY
COWBOYS WAY, FRISCO DELIVERING: LATE 2021
A ANATOMY OF A DEAL
THE NEXT PIECE IN JERRY JONES’ $1.5B DEVELOPMENT AT THE STAR IN FRISCO IS AN 11-STORY OFFICE TOWER. THE BUILDING—WITH AN ESTIMATED COMPLETION OF DECEMBER 2021— IS DESIGNED BY DALLAS ARCHITECT HKS, THE SAME ARCHITECT FOR THE ADJACENT 350,000-SQUARE-FOOT TOWER NOW UNDER CONSTRUCTION THAT WILL BECOME THE HEADQUARTERS OF KEURIG DR PEPPER.
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A ANATOMY OF A DEAL MIXED-USE
WEIR’S PLAZA When the Weir family and their development partners, Four Rivers Capital, wanted to set about transforming the Knox Street property Weir’s Furniture had occupied for seven decades, it went to Duncan Fulton of GFF for help. The goal was to create a vertical mixeduse development that would not only fit within the neighborhood built around a new 43,000-square-foot flagship store, but also preserve the existing façade of the historic Highland Park Soda Fountain building and find a way to integrate the two. The result is a 12-story, 297,000-square-foot redevelopment underway at the high-profile corner of Knox and Travis streets in Dallas. Along with the Weir’s Furniture store, it
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includes 12,500 square feet of street-level retail space and 250,000 square feet of Class AA office space. A six-level underground parking garage will accommodate up to 800 vehicles and be shared by the mixed-use functions. With a dearth of office space in the neighborhood, the project set a record for preleasing, winning a three-floor lease from Kirkland & Ellis—one of the country’s largest law firms—and from coworking giant WeWork, which signed on for another three floors. Weir’s Plaza is among other urban infill projects in the charming Knox Street district between East Dallas and the Park Cities. Several multifamily communities are in the works, and The Retail Connection has teamed up with billionaire Michael Dell to acquire dozens of buildings and land along the eastern edge of Highland Park. Along with views of the downtown Dallas skyline, access to bountiful surrounding shops and restaurants, and close proximity to the Katy Trail, tenant amenities at Weir’s Plaza include greenscape areas and a resort-style fitness center. Construction is expected to wrap up at the end of 2021. —CP
KNOX AND TRAVIS STREETS, DALLAS | DELIVERY: LATE 2021
A ANATOMY OF A DEAL THE WEIR FAMILY AND THE DEVELOPMENT TEAM WORKED WITH GFF ARCHITECTS TO PRESERVE AND FEATURE THE ORIGINAL FACADE OF THE CENTURY-OLD HIGHLAND PARK SODA FOUNTAIN BUILDING. THE DESIGN OF THE ADJOINING RETAIL SPACE REPEATS THE CORNICE ON THE SODA FOUNTAIN BUILDING, AND THE OFFICE FLOORS MIRROR ITS BLONDE BRICK AND TALL NARROW WINDOWS.
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A ANATOMY OF A DEAL REDEVELOPMENT
PEGASUS PARK Millions of commuters have driven past the former Mobil Oil Corp. campus on Stemmons Freeway, which sports a red flying Pegasus at the top of an 18-story tower. Now, J. Small Investments and Lyda Hill Philanthropies are teaming up to reinvent the 23-acre development as a “dynamic ecosystem that promotes collaboration, cross-creativity, and entrepreneurship.” The goal, they say, is to bolster local biotech, social impact, and corporate innovation. The partners tapped GFF to oversee design and Scott + Reid as the general contractor. Slated to open in early 2021, the 750,000-square-foot campus will feature four primary components: a biotech-plus hub, a social impact hub, commercial tenants, and dining and entertainment venues. “Re-imagining and transforming a former oil and gas industry campus into a center for innovation and social impact at Pegasus Park exemplifies the spirit that has made Dallas one of the nation’s most dynamic cities, and North Texas an influential region,” said Steve Davis, president of J. Small Investments, which acquired the campus from ExxonMobil Oil Corp. in 2015. Dallas philanthropist Lyda Hill is a key partner on the project in support of creating an epicenter for social impact and regional life sciences innovation. About 550,000 square feet will be available for rent by entrepreneurs and other traditional office tenants. Another 150,000 square feet will be developed into a center called Water Cooler, which will offer subsidized rents for nonprofit, philanthropic, and social-impact tenants. These users also will be given access to funds for furniture and infrastructure and other support to accelerate their missions. About 37,000 square feet will be used to create a national biotech-plus hub, enhancing the region’s reputation for scientific and medical excellence and supporting innovation. Situated between the Dallas Design District and Southwestern Medical District at 3000 Pegasus Park Drive, the campus offers easy access to downtown Dallas, the medical district, both Love Field and DFW International airports, public transportation, and major roadways. All tenants will have access to a fitness center and 16,000-square-foot conference center. Additional planned amenities include a local craft brewery and taproom with a restaurant and beer garden, café, coffee bar, and indoor-outdoor lounge.—CP
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3000 PEGASUS PARK DRIVE, DALLAS DELIVERING: SPRING 2021
A ANATOMY OF A DEAL PEGASUS PARK, A 23-ACRE, SIX-BUILDING CAMPUS ONCE OWNED BY THE FORMER MOBIL OIL CORPORATION, IS THE CONVERGENCE OF TWO CONCEPTS: A BIOTECH INNOVATION CLUSTER AND A NONPROFIT SHARED SPACE. PARTNERS LYDA HILL PHILANTHROPIES AND J. SMALL INVESTMENTS SAY IT’S “A GAME-CHANGER FOR SCIENCE AND TECH IN DALLAS.” INTENDED TO BOLSTER BIOTECH, SOCIAL IMPACT, AND CORPORATE INNOVATION, IT’S LOCATED NEAR THE DESIGN DISTRICT AND THE MEDICAL DISTRICT. THE FIRST TENANTS OF THE “WATER COOLER” —150,000 SQUARE FEET IN THE TOWER DEDICATED TO SOCIAL IMPACT— INCLUDE DRAPER RICHARDS KAPLAN FOUNDATION, COMMIT PARTNERSHIP, THE DALLAS FOUNDATION, UNITED TO LEARN, AND UPLIFT EDUCATION.
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A ANATOMY OF A DEAL E-COMMERCE / INDUSTRIAL
ALLIANCE CENTER NORTH 7
When developing speculative industrial space, it’s smart to build in features that will accommodate a variety of users. But keeping an eye on current trends, Hillwood has e-commerce tenants in mind for Alliance Center North 7, the latest facility in its industrial park in North Fort Worth. One of the biggest factors to consider for e-commerce users is worker amenities, said Tony Creme, senior vice president at Hillwood. “They have so many workers fulfilling orders—up to 10 times the employee count of traditional industrial,” he said. “These workers need places to eat, good accessibility to the building, and areas for recreation.” The site chosen for the 800,000-square-foot Alliance Center North has direct access to Interstate 35W and is just minutes from ground hubs for both UPS and FedEx, plus expansion space for additional car and trailer parking or a connected campus. It also has reinforced foundations for a mezzanine level, which e-commerce tenants are starting to use. “It’s almost like an office building inside of a warehouse,” Creme said. But what really sets it apart is its adjacency to Alliance Park, a 165-acre green space that includes soccer fields, baseball fields, walking and biking trails, and other outdoor amenities. “It’s a great selling point and a great lure for recruiting and retaining talent,” Creme said. “The line is really becoming blurred between office and industrial, in terms of worker amenities.” Even with the pandemic pause, Creme said Alliance Center North 7 and other Hillwood properties are attracting steady interest. “Not as many deals are getting signed, but we’re doing weekly showings and getting daily RFPs for our buildings and land sites,” he said. “Some are e-commerce and food storage interest is picking up—we’re seeing more of that. We’re also seeing some manufacturing inquiries; one of the outcomes of COVID is a reshoring of manufacturing. “Dallas-Fort Worth, being at the northern end of the state, closer to the rest of the country, with access to great airports and being such a large, expansive area, is well positioned to continue to grow throughout the pandemic. It’s further fueling the growth of the industrial market here.” —CP
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RENDERINGS: ALLIANCE TEXAS
LITSEY ROAD AND BEACH STREET, FORT WORTH DELIVERING: FALL 2020
A ANATOMY OF A DEAL THE 800,000-SQUARE-FOOT ALLIANCE CENTER NORTH 7, SITS ACROSS THE STREET FROM 165-ACRE ALLIANCE PARK. THOSE WHO WORK IN THE INDUSTRIAL HUB WILL HAVE EASY ACCESS TO ITS POND-HUGGING TRAILS, SPORTS FIELDS, AND OTHER PARK AMENITIES.
ALLIANCE CENTER NORTH 7
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A ANATOMY OF A DEAL SOGOOD @ CEDARS
RENDERING: HOQUE GLOBAL
EYE ON FUTURE DEVELOPMENT Pandemic or no, there’s no time like the present to ensure that the thriving DallasFort Worth region remains an innovative, forward-thinking place for generations to come. Future projects are helping to keep Dallas-Fort Worth at the forefront of industry and livability. Here are just a few that can continue to strengthen the region’s broad appeal.
DOWNTOWN DALLAS /DEEP ELLUM
Hoque Global and KDC are developing NewPark —A Smart District. 20 acres of contiguous blocks are planned to become a major tech and educational hub adjacent to Dallas City Hall. The master plan includes three to five million square feet of office space centered around a new signature city park. Just south of I-30, Hoque Global will develop 15 acres of a former industrial site into a new mixed-use neighborhood called SoGood @ Cedars. The development will be connected to Downtown with a linear park that would run between Good-Latimer and Cesar Chavez along an abandoned rail line. A downtown revitalization of the 52-story First National Bank Tower, dubbed The National, will provide 1.5 million square feet of new mixed-use activity. Todd Interests and Moriah Capital are redeveloping the 1964-constructed tower, which will contain a hotel, 324 multifamily units, 37,000 square feet of office space, and 43,000 square feet of retail. Earlier this year, Downtown Dallas Inc.
signed on as the building’s first office tenants. The newly designated East Quarter stitches the urban core to Deep Ellum offering walkable neighborhoods and urban revival. Todd Interests acquired 18 historic buildings, most of them former automobile showrooms dating back to the 1920s, in the East Quarter and is in the process of restoring them for retail, office, and residential use. The Epic II, a mixeduse tower project in Deep Ellum, will house the 3,000-person Uber regional office in 450,000 square feet, along with 15,000 square feet of retail space. In March, COVID-19 prompted a temporary halt to construction until 2021, but company officials said they still expect to move into the building in 2022. Also under construction in Deep Ellum is The Stack, a 16-story mixed-use project with 15,000 square feet of retail and restaurants on the ground floor and 200,000 square feet of Class AA office space above. The project, which broke ground in January, is slated for completion in 2021.
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FORT WORTH CITY CENTER
In Fort Worth , the city council approved a committee to design a significantly expanded convention center in January 2020. The anticipated groundbreaking will be in 2022-23. The $500M project would add a 1,000-room hotel and more than 50,000 square feet of exhibit space, with public art being a significant feature.
Dallas Midtown, a massive 430-acre redevelopment district that includes Valley View Mall and The Galleria, continues to move forward with Beck Ventures preparing to go vertical on the site of Valley View Mall. Life Time Midtown, a partnership between Beck and Life Time Fitness, will include 390 residential units, a 190,000-squarefoot Life Time athletic club, and 50,000 square feet of coworking space. Beck’s portion of the project also includes the Park Tower at Dallas Midtown with more than 300,000 square feet of office space and 45,900 square feet of retail. Work on RedBird Mall in South Dallas continues
with construction on a 300-unit luxury apartment complex. This fall, construction is set to begin on a 150,000 square-foot medical center for UT Southwestern. Foot Locker, Foot Action, and Champs opened in a new 20,000square-foot building on the property in May, and a Frost Bank branch will open soon. The project, led by investor-turned-developer Peter Brodsky, includes retail, restaurant, and office space inside the mall, which is still inhabited by a handful of stores. The Centurion American Development Group has a pair of ongoing mall redevelopment projects: Collin Creek Mall in Plano and the old North Hills Mall site in North Richland Hills. The $1 billion Collin Creek mixed-use development will include retail and dining, office space, a hotel, singlefamily and multi-family homes, and parks. In North Richland Hills, City Point will offer 364 single-family homes, eight acres of multifamily development, 60,000 feet of commercial space, a trail system, and open green space.
MORE MIXED USE
Bright Realty recently received approval from the City of Lewisville to begin construction on the mixeduse 140-acre Crown Centre at Castle Hills. Plans call for up to 2,000 multifamily units, 3 million square feet of office space, and up to 500 hotel rooms in this $1.5 billion effort. In August, Phase 1 of a Class A office building on the property is beginning to lease space. Crown Centre is located across the Sam Rayburn Tollway from another Bright Realty mixed-use project, The Realm at Castle Hills. De La Vega Development has acquired 26 acres in Uptown Dallas to create a $2.5 billion mixed-use project called The Central. The proposed development would include five million square feet with an upscale multifamily tower, office space, luxury hotel, shopping, restaurants, and a 3.5-acre park. One of the first tenants at The Central is JPI, an Irving-based
multi-family construction firm, which is slated to build Jefferson at Central, a 430unit apartment complex located on North Carroll Avenue and Highway 75.
Texas Instruments plans to build a new 870,000 square foot facility on Renner Rd. in Richardson. It will produce 300mm analog semiconductor wafers at the site. Upon completion, the new facility is expected to create more than 488 jobs and represent more than $3.1B in capital investment. The University of North Texas will build a 100-acre campus in Frisco to accommodate at least 20,000 students focusing on careers that require digital literacy. The $100M project will include academic and administrative buildings, a wellness facility, student housing, and a library. Construction on the branch campus is set to begin by fall 2020.
Dallas-Fort Worth International Airport officials have authorized construction of a sixth terminal, Terminal F, to host up to 30 additional gates. Combined with newly announced Terminal C improvements, the $3.5 billion worth of projects will employ the latest technology to improve the passenger experience. Additionally, with more than 5,200 acres available for commercial use, the Dallas Fort Worth International Airport is transforming from solely a transportation hub to a home for commerce and international business. During the pandemic, DFW has become the busiest airport in the world, although air traffic everywhere has been hit hard. Officials expect air traffic to rebound by 2022 or 2023. Compiled by Quincy Preston and Sandra Engelland
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TAKING THE LONG VIEW SITE SELECTION
BY GLORIA SALINAS, MANAGING DIREC TOR, ECONOMIC DE VELOPMENT, DALL AS REGIONAL CHAMBER
BUSINESS RELOCATIONS AND EXPANSION DECISIONS ARE BACK ON THE TABLE AS DALLAS-FORT WORTH POSITIONS FOR LONG-HAUL SUCCESS After experiencing a 30 to 50 percent decline in business relocation and expansion projects due to the COVID-19 pandemic, site selector Andy Shapiro said companies are now returning to their long-term plans for relocating or expanding their business models. 2 8 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
The managing director of Biggins Lacy Shapiro & Co. discussed the future of corporate and industrial manufacturing location decisions, and gave insight into the Dallas region’s success and advantages from his firm’s lens in the San Francisco Bay Area in a DRC virtual meeting in June. Shapiro, who leads location advisory for the firm, said it’s now evident the pause in projects was a temporary and short-term decision by companies as they worked through realigning their staff and business models due to the COVID-19 pandemic. “I’m seeing a fairly full plate and quite a bit of activity that was postponed coming back alive,” Shapiro said.
The physical office will take on a very different role in the professional relationship between a company and its workers. — ANDY SHAPIRO, MANAGING DIRECTOR, BIGGINS LACY SHAPIRO & CO.
Here are three key takeaways from the discussion on the future of business relocations and expansions in Dallas-Fort Worth: MANAGING RISK IS NOW THE TOP ISSUE IN LOCATION DECISIONS The many uncertainties created by the pandemic and the accelerated shift in work-from-home practices and industrial supply chains have made managing risk paramount in business decisions, Shapiro said. “In many ways, uncertainty will lock a decision down and will prevent a client or a company from making a decision more than anything else,” Shapiro said. “There’s no greater contributor to uncertainty than risk.” Shapiro said risk has manifested in all forms. Companies have experienced accelerated long-term trends in office and supply chain in a couple of months. There is uncertainty around how the new workplace—and managing the talent for it—will look long-term, as well as what type of impact a shortage of talent in automated and machine-learning will have on supply chain and industrial projects. He noted there also are political risks with trade wars and looming requirements for U.S.-made products, as well as environmental risk and negative impacts from global warming on companies in coastal cities. “A lot of [location decision] is about risk—all kinds of risks,” he said. REMOTE WORK HUBS ARE ‘VERY REAL’ AND SEGMENTING BIOPHARMA IS THE BEST WAY TO COMPETE FOR IT Mark Zuckerberg recently announced Dallas, Atlanta, and Denver as top tech talent markets in the country that are under consideration for Facebook “remote worker” hubs. Mike Rosa, DRC’s senior vice president of economic development, who moderated the discussion, asked Shapiro if this was a new normal for tech companies and whether the Dallas region can expect to see more remote work hubs. “[The remote work hub trend is] very real, and of course, it’s being led by the tech industry,” Shapiro said. “And so much is not tech: professional services are going to follow, and they already are following.” Shapiro said many employees of Bay Area companies do not actually live in the area, and they are working remotely for companies. The distribution of remote work will continue to accelerate in the post-COVID-19 world, he said. An 8-hour day and 40-hour work week is no longer a norm. “The physical office will take on a very different role in the professional relationship between a company and its workers,” Shapiro said. “The physical office will be a place where special teaming can take place—where the need for face-toface contact, which does not occur on a daily basis, has a place and a home, and a resource center where meeting with others from outside the firm can take place.” The Dallas region has worked to attract biopharma companies for years. Rosa asked if Shapiro is seeing interest from biopharma companies in expanding to new locations or staying close to existing facilities to boost domestic production. Shapiro said access to skilled talent, who can manufacture new drugs, is what
keeps biopharma companies in coastal cities such as San Diego and Boston, but he believes they will eventually begin to consider other markets for expansion for many of the same reasons corporations consider relocation, including business friendly regulations and the low-cost environment. “It’s really all about segmenting biopharma, seeing where you have a competitive advantage, then competing vigorously in those areas,” he said. Shapiro added that segments such as research and development should be considered two different components of biopharma because development now includes clinical trials. THE DALLAS REGION IS A TOP-TIER MARKET AND WILL CONTINUE TO DRAW WINS Texas has outperformed California neighboring states Arizona and Nevada when it comes to corporate relocations and tech companies, making it a top-tier market, Shapiro said. “Texas has become a pretty powerful and impactful destination for Californians,” he said. “I do believe Texas will continue to be attractive going forward.” Shapiro said departure states, such as California, do not invest in economic development initiatives like southern and southeastern communities that are drawing in companies from high-cost and high-regulated markets. “We spend $14 per capita on economic development marketing in California. I believe Texas and Arizona spend 10 times that amount, if not more,” he said. Shapiro said the Dallas region will continue to draw business relocation and expansion wins, but so will Atlanta, Denver, and Nashville—the cities with which North Texas competes. “The [Dallas region] market is maturing, and costs are starting to increase, but the basic value proposition is still there,” he said. “Dallas will remain a viable and competitive destination for all manner of activity—I can’t see that changing for a long time.” D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 2 9
F FEATURE certainly, we’ll see this occurring in the manufacturing of goods important to national security and public health.
SITE SELECTION: TAKING THE LONG VIEW
How has the pandemic impacted logistics and supply chain sectors in the region? Are you seeing some businesses switching from international to domestic sources as a focus for production?
‘ALTHOUGH THIS DOWNTURN COMES WITH UNIQUE CHALLENGES, NORTH TEXAS HAS A LOT WORKING IN OUR FAVOR.’ We talk with experts about how the pandemic has impacted corporate relocations, what sectors are still growing, and the market outlook for the rest of 2020 and beyond. Here’s how DFW is a place for the future. What made Dallas-Fort Worth one of the top corporate relocation markets before COVID-19 will continue to power its success in the coming months and years. So say the experts on the front lines of helping businesses find room to grow. Economist Ray Perryman said, “I think the Dallas-Fort Worth area will continue to be a center for growth once the pandemic is under control. The area offers a good mix of what companies are looking for, from workforce and infrastructure to a business-friendly climate.” While most sectors of the economy took hits in Q2—especially retail and hospitality—a few areas in North Texas saw significant growth, including e-commerce, industrial, cybersecurity, and homebuilders. In the short term, many businesses hit the pause button on projects because of uncertainty or supply chain challenges. And there appear to be significant trends that should remain after the pandemic, including more opportunities for employees to work from home, abundant creativity in how to tackle business on virtual platforms, and changes in space requirements at work and home. “Although this downturn comes with unique challenges, North Texas has a lot working in our favor, ” Hillwood President Mike Berry said. Berry looks forward to the day when we can return to normal, but when we do, “we’ll take some of this period’s best practices and incorporate them into how we do business going forward.” Interviews by Quincy Preston and Sandra Engelland have been edited for brevity and clarity. 3 0 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
MIKE BERRY President, Hillwood How would you characterize the region’s commercial real estate market as we head into Q3? The region’s commercial real estate market has some distinctive bright spots that give us a reason to be optimistic as we head into the third quarter. The industrial sector and our multifamily program held strong during the peak of the pandemic, with the customer base remaining stable. Industrial leasing activity and renewals remain very healthy, and Hillwood’s multifamily communities have maintained essentially pre-pandemic rent collections. However, this is an unprecedented period. We’re watching for a lag effect but anticipate it will be mitigated by potential relocation activity.
How much of that do you attribute to the pandemic? Where was the relocation market heading prior to March? The pandemic accelerated many market trends that were already underway, especially in the industrial sector and particularly in e-commerce, which has proven to be the backbone of our U.S. supply chain. Obviously, this acceleration has hit the retail sector the hardest, which was already hurting. As it relates to relocation and reshoring, before COVID-19, major brands like Stanley Black & Decker were starting to reshore a portion of their manufacturing operations from overseas due to higher tariff costs. We’ll see more of this in the near future as companies reshore more operations to minimize potential supply chain disruptions. And,
Disruptions to the nation’s essential supply chains during the pandemic are causing a lot of companies to consider reshoring, and even relocating their domestic manufacturing and distribution to more central geographic locations. They are looking at Texas, and North Texas in particular, because of our business-friendly environment, highly skilled workforce, and our multimodal transportation options. The region also stands apart in its ability to offer space for corporate offices and manufacturing or distribution facilities in close proximity, which makes it easier for companies to quickly troubleshoot and address any issues.
What new challenges and opportunities are you seeing in the current market? Hillwood sees some great opportunities in the single-family housing market. There is still a lot of demand for housing in North Texas as companies continue relocating to the region, and we expect demand to further increase as fallout from the pandemic leads more families to choose suburban homes with more space over urban density. The low interest rates make this an ideal time to refinance or to buy a home, especially for first-time homebuyers who are not trying to sell a home.
Are there reasons for optimism in the balance of 2020 and looking to 2021? There are certainly reasons to be optimistic as we approach the next 12 to 18 months. Historically, the North Texas commercial real estate market has experienced relatively fast recoveries, and although this downturn comes with unique challenges, North Texas has a lot working in our favor. Our central geographic location, transportation options, workforce, and business-friendly environment continue attracting new business opportunities. North Texas also offers affordable housing options and plenty of suburban communities that will allow families to have more space in the era of social distancing. From an office market perspective, we’re unique in that we have available land to build campus-style facilities, like the Charles Schwab headquarters. These types of facilities provide a horizontal footprint and can be customized to accommodate greater space between employees, outdoor work areas, and the latest in automation and clean building technologies.
F FEATURE How is Hillwood adapting as you seek prospective tenants in this season of uncertainty? These are unprecedented times, and the speed at which everything changed has resulted in our team utilizing technology like never before. I’ve been very impressed with how people have adapted so quickly to doing business through Zoom, WebEx, Microsoft Teams, or other videoconferencing platforms. While it’s not the same as meeting a prospect or customer in person, we’ve leveraged technology that’s been around for quite a while, and finally figured out how to use it in our day-to-day business lives. We’re still building new relationships and reinforcing established ones, but we’re also being very efficient with our time, since travel between offices has become limited. I’m looking forward to the day when we can return to normal, but we’ll take some of this period’s best practices and incorporate them into how we do business going forward.
Do you see any long-term changes in your business and the needs of your customers prompted by the pandemic? Technology and space designs that support employee safety and remote working are long-term changes we’re seeing across each of our business units. Particularly in the office sector, where touchless technology, such as automatic doors, touchless locks, motion sensor lights, temperature controls, and even voice-activated technology are becoming standard features. Layouts that have been popular during the past 20 years, centered-around collaborative workspaces, are giving way to more traditional ones (with partitions). However, the new spaces are designed to make the transition to the employee’s home office more seamless. Work stations in manufacturing and industrial spaces are seeing greater separation between employees, with robotic systems being incorporated. In the residential sector, we’re seeing more demand for suburban housing with an additional room being designed specifically to serve as a home office space.
What sectors are more pandemic proof? Where do you anticipate growth? Sectors that cater to our nation’s essential services are the most pandemic proof, including food processing and manufacturing, medical equipment manufacturing, and distribution and logistics services. Our increased reliance on e-commerce during the pandemic creates a growth opportunity as companies expand to serve online customers more efficiently. Data centers are another pandemic-proof sector where there is a growth opportunity as we demand more bandwidth and storage for remote working and online learning. To sum everything up, improvements in technology and broadband connectivity have never been more essential.
within the community to connect them with grant and loan resources through Dallas County and the Small Business Administration. The United States Treasury reported that Lancaster businesses received between $10 million and $20 million for the purpose of retaining about 1,545 jobs.
What new challenges and opportunities are you encountering in the current market, in terms of relocations and company expansions?
SHANE SHEPARD Economic Development Director, City of Lancaster Are there certain types of companies for which you’re looking? Yes. The City of Lancaster seeks to attract companies with higher paying technical and professional jobs that complement the current resident workforce. In 2018, we conducted a market analysis which evaluated categories such as workforce skills, available training in the region, current companies in the area, and a number of other factors. The study found that Lancaster is ideal for artificial intelligence and advanced manufacturing, cold storage, food processing, motor vehicle parts manufacturing, and data centers. Lancaster is only 50% builtout, which provides 15 square miles of space to accommodate development needs.
Do companies find Lancaster as part of a relocation or site acquisition? Half of our recruits come through strategic partnerships with the Governor’s Office and the Dallas Regional Chamber. In part due to the pandemic, critical gaps have been identified in the supply chain and companies are seeking strategically located cities such as Lancaster.
Has the pandemic changed the process? Lancaster’s economic development team has had to modify some of our practices. More efforts are completed virtually or remotely. We reach out more to companies through the Internet than before and have zoom meetings and site visits with them. Interestingly, there’s been an increase in unsolicited requests for information from outside firms during the pandemic than there was before.
Is the pandemic changing the role of the state or incentives in attracting new businesses to Texas? There have been no evident changes in the sense of attracting new businesses. We shifted to ensuring current businesses are connected to available resources and that employees maintain jobs. Economic contacted businesses
Prior to the pandemic, there were several companies planning significant expansions within Lancaster. We were shortlisted on several manufacturing deals; however, the pandemic has put that on a temporary hold. Although there is a great amount of uncertainty, we are seeing a greater amount of optimism. Perhaps it’s their nature—business leaders and entrepreneurs tend to be optimistic and creative, finding a way to make profits even in difficult times. There’s that old Wall Street adage, “Bulls make money, bears make money, pigs get slaughtered.” There’s a lot of new opportunity out there; and there is a lot of opportunity that is yet to be discovered.
Are there reasons for optimism in the balance of 2020 and looking to 2021? There will be new opportunities. The business community creates and reinvents. We’ve always come out of a crisis much better and stronger than before the crises occurred. A crisis offers an opportunity to be innovative and to be better.
Where do you see the most opportunities right now? In what sectors do you anticipate growth? It’s difficult to pinpoint sectors as we are navigating through a significant amount of change as it pertains to the pandemic. People have become confident with the convenience of e-commerce and expecting their delivery. There are specific sectors that are located within the City of Lancaster that provide a sense of growth. Sectors such as logistics, medical manufacturing and supply, food manufacturing, and artificial intelligence are sectors that meet current needs and will continue to grow.
How is your city responding to the challenges your business community is facing because of the pandemic? The City of Lancaster was proactive with building a strong communication platform with businesses within the city to off er support and assistance before and during the span of the pandemic. The economic development staff has made direct contact with more than 600 businesses to provide solutions and detailed information on government resources available through federal and county partners that assist with the economic eff ects of the pandemic. Communication and support with businesses within our community has been continuous.
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F FEATURE SITE SELECTION: TAKING THE LONG VIEW
“Over a longer-term horizon, some of the advantages that the area has enjoyed in the past will likely be even more important as companies seek opportunities in a postpandemic environment.” — RAY PERRYMAN, PERRYMAN GROUP
How would you assess the current state of the Dallas regional economy? The situation continues to change rapidly, but so far the Dallas-Fort Worth area economy is faring better than many areas. Recent data comparing losses across metropolitan areas indicates the area has lost fewer jobs on a percentage basis than most major metropolitan areas. It’s a good sign, although it’s important not to read too much into any single observation due to differences in timing on when virus outbreaks occurred in various parts of the U.S. and how that relates to when the employment surveys are conducted. DFW is showing more stability due to the composition of the economy and the types of jobs which have been able to be retained and shifted to remote status. It’s useful to break the recent employment numbers showing year-over-year into two parts, both of which reflect positively on the area. First, looking at the period from May 2019 to February 2020 (peak employment before the virus), the U.S. expanded by about 1.25 percent while the region expanded by 2.05 percent. Stated differently, before the virus began taking an economic toll, the region was adding jobs at a more than 60 percent faster pace then the nation. If we then look at February 2020 through May 2020 (the period of decline), the US had fallen by about 12.75 percent, while DFW has dropped by 7.9 percent. In other words, the region went into the pandemic much stronger and has been affected much less. A word of caution is in order. If cases continue to spiral and more restrictive social distancing is required, everything has the potential to change. But if we can reverse recent trends and avoid a major delay in the recovery, DFW and the surrounding region is well positioned to recover over the next couple of years and see notable growth on a long-term basis.
What do you expect as a timeline for recovery? My most recent forecasts indicate a return to
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where the economy should be in about two years, with some sectors back sooner, while others lag. One thing that will help the Dallas region is that smaller job losses will make it easier and smoother to recover. In normal times, about 70 percent of the economy is driven by consumer spending and having fewer people out of work will help in that way, as well. Again, things are changing rapidly, and a recovery at this pace depends critically on reversing the recent case surge with major delays in reopening or shutdowns.
What trends are you seeing in the Dallas regional economy as a result of the pandemic? Unemployment in Dallas-Fort Worth-Arlington went from 115,327 in May 2019 to 469,624 in May 2020 (the most recent data currently available). While as noted previously, that’s better performance than the nation as a whole. The fact that the number of unemployed people quadrupled is a sign of the fallout from action taken to control the virus. In addition, many businesses are putting off hiring and planned investments in the area. While I don’t think these delays are permanent, they are certainly taking a toll. Over a longer-term horizon, some of the advantages that the area has enjoyed in the past likely will be even more important as companies seek opportunities in a post-pandemic environment.
What should businesses be doing now to survive and thrive through this season of uncertainty? Very few businesses are positively affected by the pandemic. While streaming services, home gym equipment retailers, and cybersecurity firms are among the types of firms that are seeing an uptick in demand, the vast majority have seen rapidly falling revenues. Survival hinges on the financial flexibility to continue to meet obligations and retain key staff. Help is available from both government and private sources, but the longer the disruptions continue, the more difficult the situation becomes.
What can state and local governments do to aid in economic recovery? Governments can offer both immediate assistance (such as additional time for payment of
taxes or bills) and long-term help to the recovery such as proactive economic development efforts. State and local governments are facing massive revenue losses which limit the capacity to respond, but hopefully, the next round of federal stimulus will offer some relief.
How do you think the state of the economy will impact relocations and company expansions in the Dallas region? I think the DFW area will continue to be a center for growth once the pandemic is under control. The area offers a good mix of what companies are looking for, from workforce and infrastructure to a business-friendly climate. Clearly, the current uncertainty will place some plans on hold, but once the economy can return to more normal operations, the pattern of growth should resume. Firms are likely to put greater weight on workforce quality, healthcare systems, educational opportunities, broadband access, and various environmental and social governance (ESG) issues going forward, which will work to the advantage of the area.
What sectors are more pandemic proof? Few sectors of the economy can survive a pandemic without harm. Even healthcare, for example, is experiencing surging demand in some areas including those related to virus care, but falling demand in others (such as elective surgeries) and a greater burden of uninsured patients. Certain aspects of technology-oriented industries are doing well because they support the current needs for remote work and school, but others are facing falling demand for products and services. For most sectors, the pandemic has caused substantial losses.
Where do you anticipate growth, in terms of relocations to the Dallas region? I expect growth to continue to be a mix of new development and refurbishment of existing areas. The diverse economy supports a variety of firms coming to the area with differing needs for sites. Texas has long led the nation in the number of major new locations, and once the virus fallout is behind us, I expect that pattern to continue. As a major metropolitan area and business center, the area will likely see continued strong performance in the years to come. As noted earlier, it is reasonable to expect that that the area will fare especially well.
ment, we believe there will be another wave of relocations.
What new challenges and opportunities are you encountering in the current market? The new challenge is: What does the configuration of office space look like in the future, and what size space do companies really need? The opportunity is: If a company is thriving during this time, there is good real estate to lease or own with favorable pricing.
Are there reasons for optimism for the rest of 2020 and going into 2021?
LEE M. WAGNER Partner, Corporate Real Estate Services, Site Selection Group How would you compare the Dallas region to other major metros in terms of a relocation market? Dallas-Fort Worth has a lot of benefits which has enabled the region to attract a lot of small and large projects. Some of the main positive factors include the central time zone, accessibility, labor costs, education system, quality of life, and cost of living.
Has the pandemic highlighted particular strengths or weaknesses? Major metro areas have critical mass and during the pandemic much of Dallas-Fort Worth has had to stay at home. As a result, we have seen real estate facilities from office to retail remain closed—or have had to shut [their] doors for good. Has it created any new opportunities? If you are a tenant or user of office space and need space, it’s great time to find new options because there are plenty, along with good rental rates for the tenant to support those options. The market has definitely shifted from a landlord-favored market to a tenant’s market.
What other challenges to the site selection process have you seen from the pandemic? The biggest challenge during the pandemic is the ability to tour cities and buildings, especially for national and international searches. Otherwise, a lot of the market research and negotiations can be done remotely.
The industrial sector is where there is a lot of optimism for the near term. The amount of project activity is the highest we’ve seen. The projects range from consumer products, e-commerce, food production, and various industrial manufacturing needs.
What kinds of locations are companies seeking? That really depends on the industry and project type. The Southeast U.S. continues to attract manufacturing. E-commerce projects are locating in the typical logistical hubs like Dallas, Atlanta, or Phoenix. IT-related projects continue to locate into the tech markets like Dallas, Denver, Atlanta, and Salt Lake City.
What trends are you starting to see, in terms of company needs? Labor continues to be a major challenge, which has eased due to the spike in unemployment. However, skilled labor will always be a challenge to attract and retain.
What incentives are most important to companies right now, and how have they changed in the pandemic? Two of the big drivers in economic incentives are job creation and capital investment which have been historically linked to a facility located within specific municipalities. This allows you to secure tax abatements, tax credits, infrastructure grants, and utility rebates that are specifically tied to the building. Due to the work-from-home trend, it will become much more challenging to incentivize companies if you can’t link the employees and capital investment to a specific jurisdiction.
What sectors are more pandemic proof? E-commerce, food production, data centers.
How do you characterize DFW’s commercial real estate market as we head into Q3?
What do you expect to see in terms of company decisions in the near- to mid-term?
Office: Unstable. Industrial: Strong. Retail: Struggling. Multifamily: Stable.
The decision-making process will be much slower in the near term as companies try to figure out where the market is headed. Once that is resolved there should be a lot of growth opportunity in the right industries.
How much of that do you attribute to the pandemic? All of it, at this point.
Where was the relocation market heading prior to March? Companies continued to relocate to Dallas-Fort Worth and Texas from states like California, New York, and Illinois which have less desirable business climates. In a post-COVID-19 environ-
How do you expect this may impact the Dallas region long-term? Dallas is in a good spot due to the benefits we outlined earlier. However, the cost of living, labor costs, and real estate cost continue to increase which are making the Dallas-Fort Worth region less attractive from an economic perspective.
JOEL PUSTMUELLER Managing Director, Brokerage, for JLL How would you compare the Dallas region to other major metros in terms of a relocation market right now? Dallas clearly seems to be one of the favored areas for consideration for corporate relocations in the U.S. Reported inquiries by our economic development agencies are up by a significant multiple over this period last year.
Has the pandemic highlighted particular strengths or weaknesses? Has it created any new opportunities for the region, in terms of attracting companies? I think the pandemic has simply emphasized the reasons Dallas has been consistently recruiting corporate relocations from across the country, but in particular, the spread-out nature of the region could be an appealing alternative for tenants coming from dense urban environments.
How might the pandemic create relocation opportunities for companies? The pandemic has shifted some priorities of what tenants are looking for to an emphasis on wellness, safety, security, and control over their office environments. We could see an increased focus on single tenant build-to-suit projects over the next couple of years.
What kinds of deals are we likely to see arise in 2020 and 2021? Leasing velocity has definitely slowed but is expected to increase to more normal levels coming out of the summer. It’s possible that there will be some pent-up demand from decisions that were put on hold after the tide turns.
What incentives are most important to your clients right now, and how have they changed in the pandemic? Our tenants are evaluating their utilization of space going forward and the extent to which they can continue to implement a mobile work force strategy, while maintaining culture and collaboration. It is really too early to determine which direction the trend will go.
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F FEATURE SITE SELECTION: TAKING THE LONG VIEW efficient commuter transportation in a highly desirable live, work, play, visit, and walk environment. Irving-Las Colinas is a masterpiece of master planning, and that elevates our recognition and attracts the kinds of corporations that we feel will be successful in our community.
Has the pandemic changed your process? If so, how?
BETH BOWMAN President and CEO of Irving Economic Development Partnership How does the city get involved in attracting a company? Are there certain types of companies for which you’re looking? First of all, to have the success that Irving-Las Colinas has enjoyed in attracting about 150 international corporations and 15 Fortune 1000 corporations, you need a strategic plan and a collaborative structure that allows a quick, responsive, one-stop-shop approach to relocation inquiries. In 2017, the Irving Mayor and City Council accepted the Irving Economic Development Strategic Plan, a five-year road map for the City’s economic growth. Implementation of the plan is a collaborative effort by the Irving Economic Development Partnership, consisting of the City of Irving, the Irving-Las Colinas Chamber of Commerce, the Irving Convention & Visitors Bureau and the Las Colinas Association. The plan identifies industries and domestic and global markets with corporate relocation potential that will contribute to our community’s sustainable growth and business success. We use every possible communication platform to reach these targeted companies including our website, print and social media, mission trips, and leveraging existing IrvingLas Colinas companies and their strategic relationships.
Is it more common for you to find a company or for them to find you as part of a relocation or site acquisition? It’s a combination of both, but when you achieve a certain level of success, it creates its own momentum, reputation and exposure. Irving-Las Colinas is known for its business-friendly public policies, its amenities that attract and retain workforce talent, its central location adjacent to DFW International Airport and near Dallas Love Field, affordable housing, modern infrastructure, 3 4 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
Not significantly. We’re fortunate to have a healthy amount of prospective deals in our development pipeline, and some of these larger projects are taking slightly longer than originally projected. The pandemic has meant that we’re working differently as our team is working remotely from home using the latest in secure communications technology, but we feel we’re working creatively and productively under this new norm, as are our prospective relocation projects and their teams.
Is the pandemic changing the role of the state or incentives in attracting new businesses to Texas? Are there reasons for optimism for the rest of 2020 and going into 2021? It’s too soon to say, but certainly every city is anticipating and adapting to a significant shortfall in tax revenue. Irving-Las Colinas relies heavily on restaurant, entertainment, hotel and convention revenue, which have been particularly hard hit by the city and state’s business closures and reduced capacity. The pandemic has spared no one in this crisis, but we feel confident that we’re in a better recovery position than most geographic regions due to the economic development momentum we enjoyed prior to the outbreak, which we think will serve us well as we continue to work with prospective relocation opportunities.
What new challenges and opportunities are you encountering in the current market, in terms of relocations and company expansions? Because of the current restrictions imposed by the COVID-19 pandemic, which limits our travel, personal contact and relationship building, live tours, and one-on-one visits with site selectors, we’ve had to become more creative and use virtual tools for our outreach efforts and to tell the Irving-Las Colinas story. Additionally, we’ve refocused on expansion and retention efforts. We’re seeing more companies investing in their existing footprint by creating friendlier, fluid office spaces for a distance work environment that we anticipate will continue to evolve. Also, having access to a diverse, skilled workforce is a high priority for all prospective corporate relocation and expansion projects. We are fortunate that because of our central location, we have access to more than 3 million skilled workers within a 30 minute commute of our city.
“We’ve refocused on expansion and retention efforts. We’re seeing more companies investing in their existing footprint ” — BETH BOWMAN, IRVING ECONOMIC DEVELOPMENT PARTNERSHIP We have also developed Transited-Oriented Developments (TODs) that provide work, housing, recreation, entertainment, and retail, all in a beautiful lakeside setting within walking distance or convenient DART stations. Irving-Las Colinas can offer the lifestyle choices that people want today, which attract corporations looking to recruit and retain talent.
Where do you see the most opportunities right now? In what sectors do you anticipate growth? Today, the industries with the greatest growth potential in our area are healthcare, technology, cybersecurity, e-commerce, and the accompanying warehouse and distribution facilities they require. We also recognize that diversifying our business industry community provides additional security from cyclical disruptions. Additionally, we think there is potential in businesses looking for a diverse, inclusive environment to operate their businesses and welcome their workforce. As the 14th most diverse city in the U.S. (Niche.com), we believe our diverse population is one of our biggest assets.
How is your city responding to the challenges your business community is facing because of the pandemic? Our job is to help local businesses survive the closures and restricted openings by accessing all available federal funding programs and to help market, promote, and support businesses in any and every way possible. Additionally, we know that when site selectors are scouting locations, they want a community with access to a skilled, diverse workforce in an inclusive, safe community, so community engagement remains an important part of our efforts. We’re also focused on providing the tools and support to make Irving-Las Colinas an entrepreneur start-up business generator. We are constantly thinking outside the box for creative solutions for an environment that is uncertain for the foreseeable future. SUMMER 2020
business retention and economic recovery efforts. Because our budgets also have been impacted by the reduction of tax revenues related to pandemic shutdowns, many cities, including Frisco, committed their existing staff and financial resources to focus on safely reopening and providing economic recovery assistance. In Frisco, we are fiscally-conservative and fortunate to have a strong fund balance, so we are still using our incentive tool kits to help attract quality projects that will generate new jobs and tax revenues to grow our economic base and hopefully hire local workers who were displaced due to the economic downturn.
JASON FORD Certified Economic Developer and Vice President, Frisco EDC How does the city get involved in attracting a company? The Frisco EDC works with various site selectors and companies looking to relocate either their national or regional headquarters within the city. Job number one is facilitating the creation of jobs, as the Frisco EDC’s mission is to improve the economic opportunities and quality of life for all Frisco residents. Our role at the EDC is to market and promote Frisco as a destination location for corporate relocations and expansions of existing firms. The Frisco EDC also plays a major role as a one-stop shop for site selection, helping companies to find real estate, talent, and local suppliers as well as assisting with research and market data, permitting, taxes, and incentives.
Are there sectors you’re looking for? The Frisco EDC works with a variety of companies in a multitude of industries, mostly focused on traded sector firms. We prioritize our efforts on four key target sectors which are corporate attraction and expansion; innovation, the business of sports; and gaming and new media.
Has the pandemic changed the site selection process? If so, how? We are certainly living in challenging times, but we are navigating through it. Frisco is a recession-resilient city, and we’re beginning to see business return with Frisco being on the short list for a variety of projects. Currently, we are also conducting all meetings—and what would have been an in-office meeting—to virtual meetings. We also are preparing new ways to promote the city to our audiences and conduct virtual site tours since more than 80 percent of site selection is completed online; that was true before the pandemic, and the rate is even higher now. And companies are navigating these trying times just as we are at the city.
Is the pandemic changing the role of the state or incentives in attracting new businesses to Texas? All levels of government and economic development have put a higher priority on
Are there reasons for optimism for the rest of 2020 and going into 2021? Yes, I’m optimistic about how we move forward. I think the city will continue to grow but maybe not quite at the levels we had been seeing before the pandemic. With strong fundamentals, Frisco is positioned well to move forward and grow at possibly higher rates than some other areas. We expect to see more pilot projects and possibly more public-private partnerships within Frisco.
In what sectors do you anticipate growth? The restoration of Frisco’s convention and tourism industry is key to the success of the city’s recovery going forward. And fortunately, the team at Visit Frisco is focused on making that happen. Day-trippers may prove to be a strength for Frisco as a safer alternative for tourists not wanting to fly or travel long distances. Also, as a modern and progressive suburb, we believe cities like Frisco will benefit by the return of growth to the suburbs. We are already seeing multiple signals that Frisco’s design and existing developments will help us to attract new jobs as companies realign their priorities. In 2019, suburbs across the U.S. saw the highest rates of growth for Class A office projects, so we hope that trend continues for Frisco as it has been for several years.
How is Frisco responding to the challenges your business community is facing because of the pandemic? First, the City of Frisco launched a publicprivate Recovery Task Force with members of the civic and business community as well as our emergency operations coordinators to help safely reopen Frisco. Our goal is to balance public safety and public health, with business continuing through a voluntary compliance program. The City committed every department to help all companies determine how and when they can reopen to keep their business operations going while meeting local, state and federal guidelines. The Frisco EDC also just wrapped up the Frisco/Collin County Small Business Grants Program, which was a program designed to assist small business in the Collin County portion of Frisco with grants as part of the CARES act. These funds were provided by the City of Frisco through Collin County. We will continue to engage our entrepreneurs, startups, tech firms, and universities in our go-forward planning and approach. We will also take a more comprehensive survey of Frisco employers to determine what’s needed most for Frisco and develop a new recovery game plan from there.
JEFF ELLERMAN Vice Chairman, CBRE How has the pandemic impacted relocations in the Dallas region? In the short term relocations have slowed down for obvious reasons, but I believe the future is very bright for Dallas-Fort Worth from a corporate and regional HQ consolidation standpoint.
What are the most important factors still driving relocations? Relocations are driven by a number of factors including cost reduction, recruitment and retention of labor, state and local taxes, DFW International Airport, the central time zone, affordable housing, good schools, and a probusiness environment.
How do you as a tenant rep help clients make a smooth transition? We have represented numerous corporate HQ relocations and consolidations. We provide our clients with leadership, know-how, and team building in every aspect of the relocation process— not just negotiations for new office space. Our clients have told us our leadership has been invaluable, made for a smooth transition, and saved them a tremendous amount of time and money.
What new challenges and opportunities are you encountering in the current market? We have recently completed a number of transactions, including a large corporate HQ relocation. However, the current environment is difficult and challenging. Most companies that don’t have to transact are waiting for additional clarity regarding the pandemic.
Are there reasons for optimism for the rest of 2020 and going into 2021? We are very optimistic as to the growth and future of the DFW region in 2021 and beyond. I believe that the pandemic will accelerate market trends that have already been in place. Companies and people will continue to gravitate to DFW as it is a great place to run a business, has a very favorable cost structure relative to other large metropolitan areas, and is a great place to live and raise a family.
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 3 5
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TOP PHOTO: MICHAEL SAMPLES; SECOND ROW OF PHOTOS: DFW AIRPORT, CITY OF FRISCO, AND JOSEPH HAUBERT VIA CITY OF FORT WORTH
B BUILDING TOMORROW TOGETHER
RECENT SUCCESS SHOULD CARRY DFW FORWARD Dallas Fort Worth closed out 2019 with robust economic growth and held its rankings as the top metro area in the U.S. for job growth and destination for corporate moves and expansions. In 2019, McKesson and Core-Mark moved their Fortune 500 HQs to the Dallas region. The moves brought the region’s total to 24 Fortune 500 headquarters, and McKesson made the region home to three Fortune 10 HQs: Exxon, AT&T, and McKesson—no other place has more than one Fortune 10 HQ. Uber joined Salesforce, Microsoft, McLaren, USAA, Chase, Allstate, and others in expansions in DFW. Closing out the end of 2019, Charles Schwab announced its intention to relocate its Fortune 500 HQ from San Francisco to Westlake.
All that economic growth contributed to the creation of 128,000 new jobs for the region—more than the number of jobs created in Chicago, Austin, Denver, and Nashville combined. To put DFW’s massive job growth into perspective, the region’s 128,000 new jobs was greater than the job growth of 47 states, only less than the states of Texas, California, and Florida. DFW’s job growth has led all U.S. metro areas for each of the last three years, from 2017-2019. In the 2010s, DFW landed BY MIKE ROSA more than 140 corporate headquarters and SENIOR VICE PRESIDENT, created one million new jobs. ECONOMIC DEVELOPMENT, All that job creation contributed to a popuDALLAS REGIONAL CHAMBER lation growth to about 7.7 million by the end of 2019, keeping DFW firmly in place as the fourth-largest market in the U.S. At the start of 2020, many headquarters, major office, and industrial projects were thinking of DFW. But as the pandemic spread into the country and
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 3 7
B BUILDING TOMORROW TOGETHER
YEARS OF STEADY ECONOMIC SUCCESS AND OUR REGION’S BRAND AS A GREAT LOCATION HAVE PROVIDED MUCH NEEDED MOMENTUM FOR 2020.
non-essential businesses in Dallas closed after March 13, we saw many of those projects pause. We have seen the same trend nationally. In a recent survey by the Site Selectors Guild, whose members the DRC works closely with on location projects, 34 percent said that companies continue to pause site selection projects. While many projects are now in a holding pattern, the years of steady economic success and our region’s brand as a great location have provided much-needed momentum for 2020. We expect most projects to return, including those that were about to announce decisions. Last month, Guild members reported that 61 percent of companies are starting to move forward with site selection projects. That is great news. Consultants believe, however, that it will take until spring of 2021 before the corporate location pipeline is fully active. Today, the DRC is tracking about 80 total projects, and 30 of those started after March 13. Projects include two significant tech firms considering a major new U.S. office to handle growth; a New York financial services company considering a headquarters move; two 1,500-job corporate offices (“HQ2” style) for Fortune-ranked companies; and automotive, aerospace and biopharma manufacturing projects. The DRC is still tracking pre-pandemic active projects, including a Fortune 500 headquarters relocation, a California headquarters relocation, significant expansions of notable technology companies, a major food company manufacturer, and large distribution and logistics centers. And we expect many more companies to examine DFW in the second half of 2020. Dallas’ brand as a major technology hub has also elevated, with high profile announcements like Uber’s Dallas location and Facebook naming Dallas as one of three great tech talent markets where it will hire and grow. Besides headquarters and tech companies, DFW will appeal to manufacturers, logistics, data centers, and other operations seeking to reposition supply chains, diversify locations or localize production as a long-term response to the crisis. We are still Dallas, DFW, and Texas. The comparative advantages we have leveraged to win companies and grow in recent years remain and are now likely enhanced. Site consultants suggest that mid-size cities, suburban, and rural areas will be attractive to companies and employees that are now concerned about density issues and deteriorating fiscal conditions in high-cost, crowded locations. DFW will be an even stronger option and remain relatively favorable on those elevated issues, and we plan to be very busy over the next several months.
WANT TO LEARN MORE ABOUT HOW TO GET INVOLVED IN BUILDING TOMORROW TOGETHER?
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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.
Contact Mike Rosa, Senior Vice President, Economic Development, Dallas Regional Chamber 214-746-6735 | firstname.lastname@example.org
ANNOUNCED: FIELD STREET DISTRICT
THE CRANE REPORT
COVID-19 has led to a lot of challenging questions and unknowns for decision-makers. Some developers are pausing, and some say they are moving forward, but it remains to be seen how many spec office projects may kick off right now, beyond Jerry Jones’ new Phase IV at The Star. The industrial sector, though, considers promise with the continued growth of the E-commerce industry driving the market. An exception, Jacob Tindall, co-founding partner at 5G Studio Collaborative, adds that multifamily remains one of the stable sectors in the region thanks to continual population growth. INFORMATION COMPILED BY BIANCA R. MONTES, CHRISTINE PEREZ, AND QUINCY PRESTON | DATA FOR CRANE REPORT MAPS PROVIDED BY JLL
ON-TH E-G RO U N D I N SI G H TS
JESSICA MILLER ESSL
Co-Founder, M2G Ventures
Managing Director, Stream Realty Partners
Managing Partner, Courtland Development
Partner, 5G Studio Collaborative
“The greatest opportunities are in existing mixed-use developments like Cypress Waters, CityLine, and Legacy, or land near to those developments that have the infrastructure in place, such as hotels and retail where a tenant or a developer could provide products that have amenities nearby.”
“The BNSF intermodal at Alliance has driven a tremendous amount of development. Northeast Tarrant County also has one of the largest supplies of vacant space. The UP intermodal facility and the potential construction of an additional BNSF intermodal facility in south Dallas County will continue to make the I-20 and I-45 corridors attractive for developers and users.”
“The biggest trend that I’m seeing in office is that developers are focusing on innovation in their buildings to make them relevant and attractive to the office tenant of the future. Great developers right now are really thinking through how their tenants are going to use their spaces. They are asking the question, ‘What would make me want to come to the office?’”
“Luxury multifamily communities in Dallas’ urban center was trending before the pandemic and is only strengthening. With the resurgence of many suburban communities as people commute less and work from their suburban homes, mixed-use developments that were planned to start with hospitality and retail have reprioritized. [They] are now leading with multifamily design and construction.”
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THE CRANE REPORT:
OFFICE ANNOUNCED + UNDER CONSTRUCTION
RIVER WALK MEDICAL PARK IV
LAKESIDE CORPORATE OFFICE CENTER
CHARLES SCHWAB CAMPUS
SOUTH TOWER, BUILT-TO-SUIT
IVY ROOM OFFICE AND VENUE
THE POINT SILVERLAKE CROSSINGS
SOUTHLAKE ONEFOURTEEN DISTRICT 114
THE ON B
HILLWOOD COMMONS II
PROJECT BLUE S LAS COL CORPO CENT
HERITAGE GLEN MEDICAL CENTER
VIRIDIAN TOWN CENTER THE OFFICES AT HAMPDEN WOODS MUSEUM PLACE III
SIZE: 623,624 square feet LOCATION: Uptown DEVELOPER: Granite Properties DETAILS: Planned for the corner of Maple Avenue and Cedar Springs Road in Uptown, this 26-story Class AA tower will have a construction time of nearly three years. 23 Springs will sit on a 2.6-acre site and include 17,000 square feet of restaurant space, six levels of underground parking, and a 1-acre park. Designed by GFF, DPR Construction has been tapped as the general contractor.
CLEARFORK C2 MAYFIELD GROVES
WATERSIDE OVERTON CENTRE TOWER III
BARDIN ROAD CENTER PHASE II
CHISHOLM TRAIL PROFESSIONAL PLAZA
GAMMA AEROSPACE EXPANSION
SIZE: 120,000 square feet LOCATION: Plano DEVELOPERS: Cawley Partners, Haggard Family, and First United Bank DETAILS: With a pre-lease from one of its development teammates in hand, Cawley Partners is moving forward with a new 120,000-square-foot office building on Windhaven and Parkwood, just off the Dallas North Tollway in Plano. He’s joined in the joint venture by the Haggard family, owners of the land site, and First United, which will occupy about half of the new building. The fourth floor and parts of the third and first floors remain available for other tenants. Construction will start in September 2020 and finish in the fourth quarter of 2021. Kristi Waddell of Cawley Partners is overseeing leasing.
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FIELD STREET DISTRICT
SIZE: 1.2 million square feet LOCATION: Dallas DEVELOPERS: Kaizen Development Partners, Woods Capital, and Dundon Capital DETAILS: Initial plans for this new mixeduse development in the heart of Dallas call for 1.2 million square feet of office space—in 700,000-square-foot and 500,000-square-foot towers—plus a hotel, two residential towers, and up to 40,000 square feet of amenity space. Along with HKS Inc., The Beck Group is working on the project and Kimley-Horn is the civil engineer.
UNDER CONSTRUCTION COBB FARM WEST OFFICE PARK
MONARCH CITY OFFICE 3 FREEWAY
STONEBROOK OFFICES AT THE GATE - PHASE III KEURIG DR PEPPER
ALLEN CITY CENTER WATTERS BILLINGS PRODUCTIONS CREEK NORTH ONE BETHANY CENTRAL ALLEN TECH HUB LEGACY CENTRAL 5 THE HERITAGE AT SPRING CREEK THE PARKWOOD THE OFFICES AT WILLOW BEND HERITAGE CREEKSIDE TOWERS PLANO THE DISTRICT MEDICAL PLAZA THE EXCHANGE THE POINTS AT AT CITY LINE THE GRID WATERVIEW
LEGACY WEST TOWER TWO LEGACY WEST LEGACY UNION TWO
GRANITE PARK PARKWOOD 121 VILLAGE
TRINITY MILLS STATION
POINT WEST II BRAUN BELT LINE
LH UT HILL
FRISCO MEDICAL VILLAGE
STEWART CREEK OFFICE CENTER V
THE RIDGE AT 121 PHASE II
STAR LINAS ORATE TER III
MCKINNEY RANCH PROFESSIONAL CENTER
COBB OFFICE CONDOS
380 TOWNE CENTER
THE PGA OF AMERICA HQ
VILLAGE ON THE PARKWAY
FOURTEEN555 THREE HICKORY CENTRE
PARK HERITAGE I
SPR OFFICE EXPANSION
THE INWOOD AT ALPHA WEST PAVILION III KE ANDREWS
PINNACLE TOWER II HIDDEN RIDGE TOWER VERIZON CAMPUS
SUMMIT OFFICE CAMPUS
THE TOWER AT PRESTON HOLLOW VILLAGE
MEADOW GREEN MEDICAL CENTER
FOUR ENERGY SQUARE/ ENERGY SQUARE 4 WEIR’S PLAZA THE TERMINAL AT KATY TRAIL MCKINNEY & LEMMON THE FAIRMOUNT BUILDING 2727 TURTLE CREEK PARKSIDE TERRACES TWO ARTS PLAZA HARWOOD XII THE STACK DEEP ELLUM BAYLOR, SCOTT VICTORY COMMONS SOLA ON & WHITE HEALTH LAMAR THE LINK WEST LOVE
1 4 3
JPMORGAN CHASE II
THE EPIC II
SIZE: 540,000 square feet LOCATION: Plano DEVELOPER: KDC DETAILS: JPMorgan Chase continues to expand its presence in North Texas with a second phase at its Legacy West campus. Its 12-story, 540,000-square-foot addition to its 1 million-square-foot existing base will allow it to accommodate an additional 4,000 employees in Plano. HKS Inc. is the architect on the project, and Balfour Beatty is the general contractor. It’s scheduled for completion in May 2021.
● ANNOUNCED ● UNDER CONSTRUCTION
MAP DATA COURTESY OF JLL COMMUNITY NATIONAL BLANK PLAZA
SIZE: 670,000 square feet LOCATION: Uptown DEVELOPER: Trammell Crow Co. DETAILS: Pickard Chilton and HKS Inc. are the architects behind a new tower planned by Dallas-based Trammell Crow Co. The tower will be built on a site currently occupied by a Gold’s Gym and Truluck’s restaurant, which will become a tenant in the new building. A landscaped plaza is being designed by the Office of James Burnett, the firm that led work on Klyde Warren Park. If zoning plans are approved, the tower could deliver in the summer of 2023.
SIZE: 470,000 square feet LOCATION: Deep Ellum DEVELOPER: Westdale Real Estate Investment and Management DETAILS: Work continues on The Epic II, a 23-story office building from Westdale that has been leased by Uber Technologies. The rideshare company expects to employ as many as 3,000 in the Deep Ellum tower at Elm at Hawkins streets, designed by Perkins + Will. The tower is expected to open by the end of 2022. Amenities at The Epic include 55,000 square feet of restaurant and retail space, a 164-room hotel, and luxury apartments.
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THE CRANE REPORT:
TYSON FOODS DENTON CROSSING @ I-35
ANNOUNCED + UNDER CONSTRUCTION
GATEWAY BUSINESS PARK
SPEEDWAY LOGISTICS CROSSING
STANLEY BLACK & DECKER
2 THE TRADE GROUP
SIZE: 2.2 million square feet LOCATION: South Fort Worth DEVELOPER: Jackson-Shaw DETAILS: Snapping up one of the last remaining rail-served land sites in South Fort Worth, Jackson-Shaw is moving forward with a 2.2 million-square-foot industrial park at Altamesa Boulevard and Campus Drive. It’s kicking things off with a 460,000-square-foot speculative first phase, designed by GSRAndrade and Halff Associates and built by Ridgemont Commercial Construction.
UNDER CONSTRUCTION 2
INTERNATIONAL AVIATION COMPOSITES
46 RANCH LOGISTICS PARK
NORTH QUARTER 35
SIZE: 645,000 square feet LOCATION: North Fort Worth DEVELOPER: M2G Ventures DETAILS: M2G Ventures, a Fort Worthbased development firm run by twins Susan Gruppi and Jessica Miller, typically focuses on urban redevelopment. They’re diversifying their portfolio with North Quarter 35, a four-building, 640,000-square-foot industrial development at Interstate 35 and Golden Triangle in the Alliance Corridor. The project is scheduled for completion in the fourth quarter of 2020.
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PARK TWENTY THREESIXTY BUILDING 8
FIRST ARLINGTON COMMERCE CENTER III
● ANNOUNCED ● UNDER CONSTRUCTION
MOUSER ELECTRONICS EXPANSION
KLEIN TOOLS EXPANSION
GOOGLE DATA CENTER
MCKINNEY LOGISTICS CENTER
PRINCETON CAR WASH
CYRUSONE PHASE II SABERT CORPORATION
FIRST PARK 121
TEXAS INSTRUMENTS RFAB2
35 Acre Industrial Development Over 625K SF Frontage on
203,193 SF and 424,280 SF COMING SOON
MERCER CORE LOGISTICS CENTER BUILDING A
HORIZON BUSINESS CENTER BUILD TO SUIT
For Sale, Lease or Build-to-Suit
100 MACARTHUR DISTRIBUTION CENTER BLDG 1 STEELWAY INTERNATIONAL INC FRITO LAY EXPANSION
ROLOGIS NTAIN CREEK
KROGER/ OCADO ACE HARDWARE EXPANSION TEXPORT LOGISTICS CENTER DUKE INTERMODAL III
DALPORT TRADE CENTER
SOUTHFIELD PARK 35
CORE5 FIRST 20/35 LOGISTICS LOGISTICS CENTER AT CENTER BONNIE VIEW
DFW INLAND PORT
MAP DATA COURTESY OF JLL
Mt. Creek Bldg #8 - 100,36 SF For Sale or Lease Mt. Creek Retail - 11,400 SF 461 Acres Multi Family / Residential Land For Sale or BTS Directly on
DFW MUSTANG PARK, BUILDING 3
SIZE: 145,090 square feet LOCATION: Grapevine DEVELOPER: Holt Lunsford Commercial Investments
DETAILS: The busy North DFW Airport submarket continues to grow with this new project that caters to smaller tenants. The 145,090-square-foot building can offer leases as small as 21,800 square feet. Leasing is being handled in-house by the brokerage arm of Holt Lunsford Commercial. The project, which features 56 dock doors and 159 auto parks, is scheduled to open in October.
214-370-6100 SUMMER 2020
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THE CRANE REPORT:
THE ENCLAVE AT DENTON
ANNOUNCED + UNDER CONSTRUCTION
TOWER BAY LOFT
ANNOUNCED DEVELOPMENTS 1
VILLAGE AT LEWISVILLE
● ANNOUNCED ● UNDER CONSTRUCTION
2811 MAPLE AVENUE
ALEXAN THE POINT I
SIZE: 220 units LOCATION: Uptown DEVELOPER: Crescent Real Estate DETAILS: After mulling over different options for its site on Maple Avenue north of Cedar Springs, Crescent Real Estate has decided upon luxury multifamily, and readied plans for a 30-story tower. Designed by GFF, the tower’s 220 units will skew larger, with two or three bedrooms. Amenities include a pool deck and five levels of underground parking.
THE HOLSTON I
PRESIDIUM AT REVELSTOKE ALLEIA AT PRESIDIO
AVILLA FOSSIL CREEK
IRON HORSE HIEGHTS
THE MILLENNIUM AT HOMETOWN
HIGH POINTE I 26 @ CITY POINT THE JACKSON STANDARD AT RIVER DISTRICT ENCORE PANTHER ISLAND
THE MARK AT WEATHERFORD
BROADWAY CHAPTER THE ELM AT RIVER PARK
JEFFERSON RIVER EAST BURNETT LOFTS BROADSTONE SOUTHSIDE
JEFFERSON NORTH COLLINS
1930 HI LINE DRIVE
SIZE: 383 units LOCATION: Design District DEVELOPER: Urby and Brookfield Properties DETAILS: Designed by 5G Studio Collaborative and Concrete Amsterdam, developers hope to begin this year on the first of two multifamily towers planned for a site that sits across the street from the new Virgin Hotel at Turtle Creek Boulevard and Hi Line Drive. The 27-story initial phase will hold 383 units and feature an oasis-style pool, 5,000-square-foot fitness center, and street-level retail.
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LIV CHISHOLM TRAIL RANCH
MAIN STREET LOFTS II URBAN LIVING
MAP DATA COURTESY OF JLL SHANNON CREEK I
THE JULIAN AT SOUTH POINTE II
SIZE: 378 units LOCATION: Denton County DEVELOPER: ZOM Living and Civitas Capital Group DETAILS: Representing ZOM Living’s 12th project in Texas, the developer is partnering with Civitas Capital Group on this new project in the rapidly growing U.S. 380 corridor. The community will include 13 three-story buildings, with the first residences delivering in the third quarter of 2021. Stanford Construction is the general contractor, and HJP is the architect.
MEZZO FRISCO ROCKHILL I
JEFFERSON ROCKHILL VALE FRISCO CYAN CRAIG RANCH
THE GROVE PARKSIDE AT CRAIG RANCH V
BOTANIC AT STONEBRIAR
SOVEREIGN AT TWIN CREEKS
ALTA PRESTON LIVE GRANDSCAPE VALOR AT THE REALM DISCOVERY AT THE REALM II SLOANE STREET EAST
AURA OLD TOWN STATION
ALEXAN LEGACY CENTRAL II HERITAGE CREEKSIDE PLANO GATEWAY IV CUE GALATYN STATION
NORTHSIDE AT THE WOODLANDS
OLYMPUS ON BROADWAY
LENOX CROWN ALTA SPRING CREEK
MUSE AT MIDTOWN SAGE HILL
STILLWATER CRYSTAL SPRINGS
SIZE: 387 units LOCATION: Fort Worth DEVELOPERS: Stillwater Capital Investments and CrossHarbor Capital Partners DETAILS: Construction has begun on Stillwater Crystal Springs, a Class A apartment community in a historic neighborhood of downtown Fort Worth. The project is named for its predecessor, the Crystal Springs Dance Pavilion, famously known as the birthplace of Western Swing. Perks include an elevated amenity deck with resort-style pool, courtyard and outdoor lounge area, co-working space, dog park, and fitness center.
THE STATION I 3400 FIREWHEEL PARKWAY
JEFFERSON EAST BRANCH
STAR PARK AS COLINAS
ALTA MIDTOWN PARK JEFFERSON INNOVA CEDAR AT THE BRANCH
THE RESIDENCES AT EASTLINE BROADSTONE KNOX DISTRICT
MAGNOLIA CEDARPLAZA LENOX MAPLEWOOD I R&P THE ASTER MAPLE & MAHON ATELIER
CABELL + CARROLL THE ACADEMIC 2400 BRYAN STREET 300 PEARL THE NATIONAL
WEST COMMERCE TREEHAUS GATEWAY 888 NORTH ZANG BOULEVARD CREST AT ILLINOIS
YALTON AT ND PRAIRIE PALLADIUM RED BIRD
MODERA KATY TRAIL
SIZE: 217 units LOCATION: Dallas DEVELOPER: Mill Creek Residential DETAILS: A piano lounge and a fifth-floor CROSSROADS AT TERRELL amenity level with a pool deck facing downtown Dallas are among the perks at Modera Katy Trail, a luxury high-rise development at the edge of Highland Park just north of the Knox District. The community also offers immediate proximity to the Katy Trail. Units will range from one to three bedrooms with penthouses and townhome layouts available. It’s slated to open in early 2022.
THE MARK AT DESOTO
UNDER CONSTRUCTION 4
SIZE: 358 units LOCATION: Frisco DEVELOPER: StreetLights Residential DETAILS: Representing the third phase of The Canals of Grand Park, this 358-unit luxury community is among the most recent projects from one of the region’s most prolific developers, StreetLights Residential. Located at 4545 Mission Ave. and designed by LRK and StreetLights Creative Studio, it’s slated for completion in early 2021.
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SWINERTON BRINGS CONSTRUCTION INNOVATION AND EXPERTISE TO DALLAS Swinerton, ranked the 18th largest general contractor in 2020 by Engineering NewsRecord, has a rich history of building in Texas and opened its Dallas office last year as its existing clients and new companies alike continue to move to the business hub. “Many of our Fortune 500 clients have locations in Dallas, and one of Swinerton’s strategic goals is to build and be a part of the community where our clients are,” said Stacy Rudd, operations manager of Swinerton’s Dallas office. Active projects currently underway include HiFi Dallas, the Qualtrics expansion in West Plano, and a project for Signature Hangar at Dallas Love Field. Construction technology and innovation is strategic focus for Swinerton, who has an entire team dedicated to innovations and searching for the next piece of technology that will improve the construction process for their clients and employees. Many of their applications of technology in use in the field and office today came directly from their employee-owners such as laser and 3D scanning, which project teams have been using for nearly a decade. With the coronavirus and increase in remote collaboration, Swinerton has been able to use their honed expertise in this technology in new and exciting ways to keep in touch with clients and business partners. Building information modeling
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allows for a blueprint of the structure to be shared collaboratively with project team partners, while laser scanners and 3D camera technology such as Matterport help give clients a detailed virtual walk-through of their sites. Using technology such as Boston Dynamics’ quadruped robot, also known as Spot Dog, the 3D model can also be programmed into a robot. This automates printing the layout of all walls, overhead systems and floor penetrations on the floor of the construction site, streamlining what was once a manual process. This is particularly useful for large, national corporate service clients working on numerous interior office tenant improvements throughout the country. “Technology is critical to serve clients in a way that’s both national and local in scope,” said Peter Hau, Swinerton’s vice president of corporate services. “The client’s headquarters might be in Silicon Valley, but the architect for the project could be in New York, the engineers in Seattle, and we’re working with all of them on four projects in Denver, San Jose, Dallas, and Atlanta. These types of technologies allow a general contractor to communicate more efficiently and timely with team members from anywhere.” And as global companies begin re-envisioning the office of the future, Swinerton’s
EARLIER THIS YEAR, SWINERTON TESTED 3D ROBOT TECHNOLOGY WITH SPOT DOG ON A PROJECT SITE IN TEXAS
role as a business partner can help clients navigate through their real estate decisions. Real estate needs are constantly changing, and general contractors do far more than coordinate a building’s construction, Hau added. One way to do that is by offering cutting-edge techniques like mass timber construction and prefabrication, which can help reduce labor, supply chain, and storage costs, ultimately driving more value for clients as they reimagine what an office looks like. Beyond continuing to serve corporate office clients in Dallas, the general contractor noted in a statement made by CEO Eric Foster earlier this year that it is renewing its focus on healthcare, affordable housing, and education in all geographies in which it operates, including Dallas.
ONCOR ELECTRIC DELIVERY CO. WILL OCCUPY SEVEN FLOORS AT 777 MAIN TOWER IN DOWNTOWN FORT WORTH.
PHOTO: TYPHOONSKI VIA iSTOCK
COVID-19 has delayed most everything in Dallas-Fort Worth’s deal pipeline, causing 2020 to be viewed as a tough year where the deck was reshuffled, and users emerge with a “new normal.” While industry experts remain optimistic about a recovery in the year’s end with a positive forecast for 2021, there still is a confluence of factors that will cause more “wait and see,” says Transwestern’s John Brewer. INFORMATION COMPILED BY BIANCA R. MONTES AND CHRISTINE PEREZ | DATA FOR SCORECARD MAPS PROVIDED BY JLL
ON-T H E-G RO U N D I N SI G H TS
“Deal flow and signed leases will increase the balance of 2020, but business development has been extremely challenging. Leasing transactions [this year] will be well below recent years, but 2021 and beyond are very promising. I don’t think there is any question that Dallas will benefit in the long run.”
“Occupiers are gravitating to top-of-the-line work locations and environments right now that offer safety and a balance of accessibility and amenities. Potential office solutions that allow flexibility to meet these users’ immediate and longterm needs are particularly valuable. We’ll be in a strong position to assist corporate users once the pandemic is behind us.”
“For landlords, the biggest opportunities lie in building goodwill with their customers and demonstrating that they are flexible enough to work with customers in hard times. For users, the greatest opportunity is to learn from this experience and make proper adjustments in budgeting such that they have proper reserves to weather future storms.”
“While several developers who were doing dirt work or just about to break ground in March pulled the plug on those projects as the pandemic hit, users can [now] create a win-win situation by helping the developers to get capital released. There is a great opportunity for companies to step up and do build-to-suits on “ready-to-go sites”, ranging from 100,000 square feet up to 1 million.”
Vice Chairman, CBRE
Executive Vice President, JLL
Principal, Transwestern Dallas
Industrial Division President, NAI Robert Lynn
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≤ 54,747 SF ≤ 156,293 SF ≤ 382,288 SF ≤ 722,733 SF
≤ 1,149,742 SF
DATA SOURCE: JLL Research
NOTABLE INDUSTRIAL LEASES 1
SIZE: 659,000 square feet LOCATION: Northlake TENANT REPS: Brad Struck and Jim Hazard with ESRP LEASING AGENTS: Seth Koschak, Forrest Cook, and Bob Hagewood with Stream Realty Partners DETAILS: In need of more distribution space, global aerospace supply chain manager Wesco Aircraft has more than doubled its space at Northport 35 Business Center, adding 350,000 square feet to the 309,000 square feet it initially leased four years ago. The deal brings the facility in Northlake to full occupancy.
SIZE: 610,806 square feet LOCATION: Lancaster LANDLORD: Crow Holdings DETAILS: Pet food manufacturer Mars Inc. is expanding into new digs in Lancaster’s I-35 Logistics Crossing. It will occupy one of two 610,806-squarefoot buildings on Houston School Road, developed by Crow Holdings.
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SAMSUNG TELECOM AMERICA
UNION SUPPLY GROUP
SIZE: 546,027 square feet LOCATION: Coppell LANDLORD: Duke Realty LEASING AGENTS: Nathan Orbin and Kurt Griffin of Cushman & Wakefield DETAILS: The major telecom player initially leased about 250,000 square feet in Duke Realty’s Point West Industrial Park back in 2009. A new deal has it more than doubling in size to support its mobile business operations.
SIZE: 380,000 square feet LOCATION: Irving LANDLORD: Invesco Real Estate LEASING AGENTS: Lincoln Property Co. DETAILS: A company that provides food, apparel, footwear, electronics, and personal care products to correctional institutions nationwide has inked a lease for 380,000 square feet at 2500 Regent Blvd. in Irving near DFW International Airport. Union Supply Group plans to take occupancy later this year.
PRATT INDUSTRIES SIZE: 294,952 square feet LOCATION: DeSoto TENANT REP: Michael Swaldi, JLL LEASING AGENTS: Matt Dornak and Drew Feagin with Stream Realty Partners DETAILS: One of the largest corrugated packaging companies in the world, Pratt Industries has renewed its lease for nearly 300,000 square feet in Southfield Park 35 at 9209 Old Hickory Trail in DeSoto.
≤ 11,761 SF
≤ 38,200 SF
≤ 88,490 SF ≤ 224,076 SF ≤ 431,579 SF
DATA SOURCE: JLL Research
NOTABLE OFFICE LEASES 1
ONCOR ELECTRIC DELIVERY CO. SIZE: 200,000 square feet LOCATION: Fort Worth LANDLORD: Brookdale Group LEASING AGENT: Whit Kelly with Transwestern DETAILS: With its big new lease at 777 Main tower in downtown Fort Worth, Oncor Electric Delivery Co. has inked one of the biggest office leases of the year. The company will occupy seven floors in the building after departing its former longtime home on West 7th St.
HERITAGE AUCTIONS SIZE: 160,000 square feet LOCATION: Dallas TENANT REPS: Nora Hogan, Robert Deptula, and Jordan Wade of Transwestern LEASING AGENT: Mark Hayes with HPI Real Estate Services and Investments represented the landlord, Bandera Ventures DETAILS: The world’s largest collectibles auction house is moving its global headquarters into a new state-of-the-art corporate campus, conveniently located adjacent to DallasFort Worth International Airport. It doubles the size of the company’s former base at 3500 Maple Avenue in Uptown.
GOOSEHEAD INSURANCE SIZE: 150,454 square feet LOCATION: Westlake TENANT REPS: Josh White, Chelby Sanders, and Ryan Buchanan with CBRE LEASING AGENTS: Jeff Eckert and Blake Shipley with JLL represented the landlord, Glenstar DETAILS: Goosehead has extended and expanded its corporate headquarters lease in The Terraces at Solana in Westlake, adding 42,308 square feet to its commitment. The company initially leased 62,000 square feet in 2017; it expanded to 108,146 a year later. The latest deal brings the total to more than 150,000 square feet, with a full floor in Building 1 and the entirety of Building 4.
SHEPPARD, MULLIN, RICHTER & HAMPTON SIZE: 51,804 square feet LOCATION: Dallas TENANT REPS: Brooke Armstrong, Bret Hefton of JLL LEASING AGENTS: JJ Leonard and Matt Weiser of Stream Realty Partners represented the landlord, Fortis Property Group DETAILS: Full-service global law firm Sheppard Mullin is doubling its space in Chase Tower in the Dallas Arts District, going from 25,902 square feet to 51,804 square feet. As part of the lease agreement, the office will undergo a full renovation on its two-floor digs.
iSTATION SIZE: 50,000 square feet LOCATION: Dallas TENANT REPS: John Wolf and Sara Fredericks of NKF LANDLORD: Haberman & Haberman DETAILS: The company behind an e-learning platform used by millions of students and educators around the globe has recommitted to its current space in Campbell Centre, the landmark gold twin-tower complex at 8150 North Central Expressway. Emmitt Smith of E Smith Advisors was instrumental in facilitating the relationship between iStation and NKF.
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CITY PROFILES Looking for the best city in which to headquarter your business? Consider this the start to your search. When deciding to relocate your business, there are infinite factors to take into consideration. You already know that Dallas-Fort Worth is a great place to do business, with its attractive quality of life, strong regional and state economy, low cost of living, young and skilled labor force, and absence of corporate and personal income taxes. Did you also know that DFW ranks among the top three U.S. metropolitan areas for business expansions, relocations, and employment growth? So really, the question is, â&#x20AC;&#x153;Which DFW city is best for my company?â&#x20AC;? Let this compilation of some of the best and most rapidly-growing cities in DFW be your guide to helping you to make that all-important decision.
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RENDERING FROM THE NEWLY ADOPTED “DOWNTOWN COMPLETE STREETS MASTERPLAN” FEATURING GATEWAY LANDMARK AND OPEN-AIR PATIO.
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CEDAR HILL’S ROLE IN THE NORTH TEXAS EXPANSION Currently only 50% developed – amid one of the largest and fastest-growing economies in the nation – Cedar Hill’s sound planning, friendly, stable environment, and distinctive character continues attracting businesses from all over. An innovative, sustainable land use plan also balances growth with a deep commitment to preserving and connecting the city’s natural spaces. Add to this significant transportation infrastructure enhancements currently under construction and the future Loop 9 thoroughfare, plans will connect Cedar Hill’s industrial and commercial regions directly to Interstate 45 and Interstate 35. The city is poised to provide more options for residents, businesses, and visitors, to reach destinations within our expansive rapidly growing trade area. Cedar Hill’s growth is primarily fueled by young families and business professionals looking for a place to call home that has small town ambiance and big city amenities. Located a short 20 minutes from downtown Dallas, the city, along with the regional area, continues booming with new employment opportunities. Cedar Hill is meeting market demand with newly constructed multifamily housing at the entrance of our signature ‘Balcones Del Norte Trail and Nature Corridor.’ New single-family lots are available for custom homes, as well as boutique-style living in our Historic Downtown. Also, a 150-unit active senior housing complex is nearing completion to provide apartment and resort-style villas. Cedar Hill continues serving as the retail hub to the better part of a four-county area, currently hosting 3 million+ square feet of retail and Class A office space. While the city remains innovative when planning for developments within a 36 square mile boundary, discernment to protect 20% open space will achieve the “city within a park” atmosphere perceptive residents are seeking. Cedar
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Hill is situated perfectly to meet market demands of residents and commercial development in Southwest Dallas County.
MEETING THE NEEDS OF BUSINESS IN SITE SELECTION
Cedar Hill approaches site selection like they do all city operations, with an open dialogue and a trusting environment where relationships go the distance. Proper planning from the city has helped facilitate site selection whether it be retail, office, or light industrial operations. Forward-thinking concepts make connecting the dots much easier for business owners and city officials alike. Cedar Hill continues driving new commercial models, including adaptive reuse of existing structures located in the historic downtown area. Lake Moreno Partners and the city are working on downtown vision that will soon welcome 40,000-square feet of mixed-use including retail, restaurant, and office space, paired with newly established Ash & Ember Brewing Co. & Saviana Winery opening doors this year. Brand retailers are finding success, too, like Fuel City, Total Wine & More, and soon Spec’s Wine, Spirits & Finer Foods, within the city’s retail core. Cedar Hill’s unique natural qualities, strategic central location, excellent accessibility, and solid infrastructure supports a wide range of business sectors. The ease of connectivity to the region, availability of freight-rail, and appeal to well-educated human capital promote growth and profitability in industries from metal fabrication and distribution centers to commercial fixture and aeronautical component manufacturing. The metroplex offers a world-class workforce to support Cedar Hill’s diversified companies, but only from Cedar Hill can your company experience a view of DFW from the top in North Texas.
CEDAR HILL POPULATION
IN CEDAR HILL
IN 15 MIN DRIVE-TIME
DALLAS & ELLIS COUNTIES TOP INDUSTRIAL EMPLOYERS: TOTAL HIGHWAY MAINTENANCE DMI CORPORATION MJB WOOD GROUP P&W QUALITY MACHINE CENTRAL STATES MANUFACTURING PEPWEAR DALLAS AERONAUTICAL SERVICES
CONTACT CEDAR HILL ECONOMIC DEVELOPMENT OFFICE 972.291.5132 CEDARHILLEDC.COM
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ALLEN: WELCOME TO THE FAMILY A LONG-TIME DESIRABLE LOCATION FOR PROFESSIONALS AND FAMILIES, ALLEN IS NOW IN HIGH DEMAND FOR EMPLOYERS TOO. Allen, population 107,000, is an affluent suburb 25 miles northeast of downtown Dallas in Collin County, one of the nation’s fastest-growing counties. Lured by desirable neighborhoods, nationally rated public schools, a renowned park system, safety and modern comforts, people live well here. That’s why we were ranked #2 Best Place to Live in the Nation by MONEY Magazine and Best Suburb for Millennials in Texas by CNBC Great places to live also make for great places to work, allowing companies to leverage Allen’s abundant dining, entertainment and sports teams, and award-winning parks and trails as a valuable employee recruitment tool. Now with the arrival of new office towers and mixed-use developments, Allen is rapidly becoming an important employment center. In fact, MONEY Magazine named Allen as the #2 Best Place to Launch a Career. Access to a diverse, educated population. Over 1.5 million workers are within a 30-minute drive, and 57% of adults have a Bachelor’s degree or higher. Room for business. One Bethany West, an eight-story office building will open in July 2020. It is the third office building in the successful One Bethany at Watters Creek campus. Located in the award-winning Watters Creek District, the area
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DALLAS ALLEN POPULATION
WORKERS WITHIN A 30 MINUTE DRIVE
includes walkable amenities—a 4-star hotel and convention center and over 50 shops and restaurants mixed in with urban lofts—and direct access to over 60 miles of bike trails. SH 121 Corridor: The future of Allen. Four mixed-use developments are zoned and coming online with over 10 million square feet of office and retail space. Adjacent to U.S. 75 and 10 minutes from the Dallas North Tollway, each site offers exceptional access to professional, technical, and executive talent in Collin County, direct access to DFW International Airport and great visibility. To find out if this is the family for you, visit AllenEDC.com.
ADULTS 25+ WITH BACHELOR’S DEGREE OR HIGHER
AVERAGE HOUSEHOLD INCOME
$113,790 CONTACT DANIEL S. BOWMAN 972-727-0252 900 WEST BETHANY DRIVE, SUITE 280 ALLEN, TX 75013
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Welcome to the family. Allen is home to many businesses, and weâ&#x20AC;&#x2122;re proud of every single one. From our diverse, welleducated population to our business-friendly economic development corporation, we give the companies that call us home the tools they need to succeed. To find out if this is the family for you, visit AllenEDC.com.
The Place to Raise Your Business
URBAN CENTER OFFICE SPACE
CORK & PIG TAVERN AT WATER STREET
LIVENATION PAVILION AT THE TOYOTA MUSIC FACTORY
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IRVING-LAS COLINAS: REBOUNDING FROM DISRUPTION AND UNCERTAINTY IRVINGLAS COLINAS FORT WORTH
OFFICE SPACE 38.4 MILLION SF TOTAL EXISTING SPACE CLASS A 18.8 MILLION SF; 27,500 SF UNDER CONSTRUCTION CLASS B 17.5 MILLION SF; 54,100 SF UNDER CONSTRUCTION CLASS C 2.1 MILLION SF
INDUSTRIAL SPACE FOREIGN TRADE ZONE NO. 39 CLASS A BUSINESS PARK 45.9 MILLION SF EXISTING INDUSTRIAL/FLEX SPACE 205,000 SF UNDER CONSTRUCTION CONTACT GREATER IRVING-LAS COLINAS CHAMBER OF COMMERCE BETH A. BOWMAN, PRESIDENT AND CEO OF THE IRVING ECONOMIC DEVELOPMENT PARTNERSHIP 214.217.8484 BBOWMAN@IRVINGCHAMBER.COM
A GLOBALLY RECOGNIZED BUSINESS HUB IN THE HEART OF NORTH TEXAS, IRVING - LAS COLINAS IS HOME TO THE GLOBAL HEADQUARTERS OF 12 FORTUNE 1000 COMPANIES. In a year like no other, with a global pandemic, economic shutdown, oil crisis and other disruptions to business operations, Irving-Las Colinas is better prepared for a recovery than almost any other city in the nation due to the strong momentum North Texas enjoyed prior to these unprecedented events. Home for Headquarters. Irving-Las Colinas enjoyed blazing economic growth over the last decade. With 8 Fortune 500 companies, 5 Fortune 1000 companies, and about 150 foreign-based corporations, Irving-Las Colinas has earned the reputation as Headquarters of Headquarters in Texas. Business Facilities magazine ranked IrvingLas Colinas #7 in the nation for its number of corporate headquarters due to a pro-business tax climate, world-class infrastructure, skilled workforce, affordable housing, and central location. A Masterpiece of Master-Planning. Irving and Las Colinas, the city’s 12,000-acre master-planned urban center, is located immediately adjacent to Dallas-Fort Worth International Airport and 10 minutes to Dallas Love Field. The City intersects with highways 183, 114, 635, and George Bush Turnpike, four of the most important thoroughfares in North Texas. Irving’s Las Colinas Urban Center is also a model Transit Oriented Development (TOD) community. TODs are compact, walkable, pedestrian-oriented, mixed-use communities with access to a rapid commuter
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train system (Dallas Area Rapid Transit system) that reduces the need for commuting time, traffic and energy consumption. Workers of all generations find that this lower-stress lifestyle makes Irving-Las Colinas a highly desirable place to live, work, play, walk, and visit. Access to a Young, Diverse Talent Pool. With a population of over 240,000, Irving’s highly desirable amenities and lifestyle have attracted an influx of millennial workers (median age 32), and corporations looking for talent, particularly in software development, cybersecurity, marketing and finance. SmartAsset, a financial-information provider, ranked Irving-Las Colinas No. 18 in the nation for net migration. Lifestyle Choices. Lifestyle is important to the recruitment and retention of workforce talent. With 56 small lakes, parks, jogging trails, colleges, hospitals, golf courses, and cultural and recreational features, a convention center and new convention hotel, and dozens of restaurants in the Toyota Music Factory, Irving-Las Colinas is an oasis in the heart of a major metropolitan area. Venetianstyled canals flank one side of the 125-acre Lake Carolyn with walking paths that meander around offices, shops, restaurants, and luxury lake front residential areas. Rebounding Economy and Exceptional Value. According to a survey by the labor analysts at ThinkWhy, North Texas was the No. 3 most robust economy in the country. “We’re confident that our economic fundamentals are the strongest in the nation. We have value, location and infrastructure. We’re the address that corporations want,” says Beth A. Bowman, President & CEO of Greater Irving Chamber of Commerce and Irving Economic Development Partnership.
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Home to the Global Headquarters of 8 Fortune 500 companies, Irving, Texas is Keeping It Real!
AUTHENTIC C IT Y With the power of a dynamic workforce, an extraordinary selection of corporate office sites and an open partnership with the city, here your business can achieve its true potential. Irving-Las Colinas is one of the fastest growing cities in the country, luring companies and individuals from around the globe. Theyâ&#x20AC;&#x2122;re drawn by our mix of diverse communities, world-class amenities, unsurpassed career opportunities and affordable living.
IRVING, TEXAS During these challenging times, the Irving Economic Development Partnership team is here to help you navigate the COVID-19 pandemic and work together as we reopen our businesses and our economy. To learn more about relocating your business to Irving-Las Colinas, contact us at email@example.com.
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FALL IN LOVE WITH LANCASTER, THE SHINING STAR OF TEXAS! DALLAS LANCASTER
LESS THAN 15-MINUTES FROM DOWNTOWN DALLAS CONTACT SHANE SHEPARD DIRECTOR OF ECONOMIC DEVELOPMENT MSSHEPARD@ LANCASTER-TX.COM 211 N. HENRY ST. LANCASTER, TX 75146 WWW.LANCASTER-TX.COM
Lancaster is a hidden gem located in North Texas. It is one of very few communities that provide a rural ambiance while being less than 15-minutes from Downtown Dallas. Lancaster has a clear sky where the sun shines in the day and the stars flicker crystal clear at night—a rarity in the region. Where else in the world can you live on an acre of land only minutes away from world-class sports, dining, and entertainment? Residents and visitors enjoy unique restaurants and the special flavors of the city such as Casserole Soul, Taste of Jamaica, Hickory House BBQ, Roma’s Italian Restaurant, and the legendary Lovin’ Oven Bakery. Lancaster ISD has one of the best STEM programs in the State of Texas. Students have the opportunity to continue their education in familiar settings as they advance to a two-year degree at Cedar Valley College and an advanced degree at the University of North Texas at Dallas. The community is conveniently located between Interstates 20, 35E, and 45. DART services the community college, and rail is less than a quarter mile north of town to park and ride. Lancaster has the only southern sector airport in the region, and is twenty minutes from Love Field and thirty-five minutes from the Dallas Fort Worth
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International Airport! Take a deep breath of fresh air away from the City as you go fishing and enjoy a stroll along the many creeks and trails. Enjoy two nature preserves, an indoor aquatic center, the Country View Golf Course, the State Auxiliary Museum, and more— all in Lancaster. Start a business or develop property in Lancaster. The city features highly sought-after land for industrial development with easy highway access and proximity to the inland port of Dallas. Everyone is welcomed with smiles when they come to Lancaster. Come discover and enjoy the city you will soon call home.
LANCASTER is a vibrant and growing community where residents enjoy the LANCASTER is a vibrant and growing comfort and safety of friendly community where residents enjoy the neighborhoods only a few minutes comfort and safety of friendly from world-class entertainment and neighborhoods only a few minutes activities in Downtown Dallas. from world-class entertainment and activities in Downtown Dallas. Sitting squarely within the boundaries of three major freeways I-35, I-45, and Sitting squarely within the boundaries I-20, the city is in close proximity to of three major freeways I-35, I-45, and xas DFW while maintaining a quaint I-20, the city is in close proximity to community where you can still see the DFW while maintaining a quaint stars flickering at night. xas community where you can still see the stars flickering at night. Lancaster is recognized as an All-America City, Scenic Lancaster is recognized as an City, Tree City USA, & All-America City, Scenic Playful City USA, City, Tree City USA, & offering a variety Playful City USA, of natural beauty offering a variety and amenities of natural beauty that create a and amenities great place that create a to live, learn, great place work, and to live, learn, play. work, and play.
LANCASTER 15 Square Miles of Undeveloped Land R LANCASTER R
The Shining Star of Texas The Shining Star of Texas
Visitor Center and State Auxiliary Museum
Near Cedar Valley College and UNT Dallas 2 Nature Preserves: Ten Mile Creek Preserve Bear Creek Nature Park
Regional Airport Regional Airport Recreation Center
Indoor Aquatics Facility with a 2 Story Water Slide & Lap Lanes
Recreation Center Country View Golf Course
Country View Golf Life Course Full-Service Senior Center x . c Full-Service Parks Senior and Life Center Municipal Hike & Bike Trails Municipal Hike & c xParks and . Bike TrailsMiles of Undeveloped Land 15 Square
o w w wm .Lancaster-Tx.com
Hometown Feel & Authentic Food, Art, & Entertainment
15 Square Milesand of Undeveloped Visitor Center State AuxiliaryLand Museum VisitorCedar CenterValley and State Auxiliary Near College and Museum UNT Dallas
Award-Winning Public School District 5th Consecutive School Year
Near Cedar Valley Ten College and UNT Dallas 2 Nature Preserves: Mile Creek Preserve Bear Creek
Nature Park 2 Nature Preserves: Ten Mile Creek Preserve Bear Creek Nature Park Indoor Aquatics Facility with a 2 Story Water Slide & Lap Lanes
Indoor Aquatics with aFood, 2 Story Water Slide & Lap Lanes Hometown FeelFacility & Authentic Art, & Entertainment Hometown FeelPublic & Authentic Art,5th & Consecutive Entertainment School Award-Winning SchoolFood, District Year Award-Winning Public School District 5th Consecutive School Year
firstname.lastname@example.org 972-218-1300 ster-tx.com email@example.com
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FIND YOUR OPPORTUNITY IN FORNEY DALLAS FORNEY
FORNEY LABOR POOL WITHIN A 35-MINUTE COMMUTE:
1.4+ MILLION 2025 PROJECTED TRADE AREA POPULATION:
99,362 AVAILABLE INDUSTRIAL LAND:
Forney, located 21 miles east of Downtown Dallas, is gaining momentum as one of the fastest growing communities in North Texas. From their A-rated school district to their diversified housing stock and large, skilled workforce pool, Forney is the next destination for both employers and retailers. Recent corporate locations include Goodyear Tire & Rubber (1.2 million square feet) and Amazon (200,000 square feet). Approximately 500 additional acres of land for advanced manufacturing, data centers and logistics are available in the signature Gateway development. In addition to sites and a robust workforce, Forney’s infrastructure is capable of supporting large operations with substantial utility needs. Retail development presents a great opportunity to capture the spending power of the third fastest-growing county in the United States. Forney’s immediate trade area population recently surpassed 65,000 and is anticipated to reach nearly 100,000 by 2025. This growth is coupled with a median household income of over $84,000 and annual retail leakage of over $430 CONTACT
ANTHONY CARSON, CITY MANAGER
million. While local revenues have declined in many areas across the state, Forney has proven resilient, posting a 12% increase of sales tax revenue for the month of April. In all, Forney presents commercial development opportunities without limits. Find out more about what they have to offer at www.forneytexasedc.org or contact their economic development office at (972) 564-5808. |
WHERE OPPORTUNITIES ARE WITHOUT LIMITS FORNEY, TEXAS
OFFICE, RETAIL AND MEDICAL SITES AVAILABLE STRONG UTILITY AND TRANSPORTATION INFRASTRUCTURE 6TH FASTEST GROWING CITY IN NORTH TEXAS (Dallas Business Journal) EASY ACCESS TO U.S. HWY 80 AND INTERSTATE 20
Median Household Income
65K+ Area Population
Acres of Industrial Land Available
FORNEY ECONOMIC DEVELOPMENT CORPORATION INFO@FORNEYTEXASEDC.ORG WWW.FORNEYTEXASEDC.ORG 972-564-5808 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
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RIDE THE NEXT BIG DEVELOPMENT WAVE TO MCKINNEY Over the past decade the city of McKinney has experienced over 327% growth in its population. Money Magazine voted McKinney “No. 1 Best Place to Live” in 2014, and the city is recognized as being one of the most unique cities in the DFW metro. Situated on the SRT 121 Tollway and extending north, McKinney is the largest city in Collin County by land mass and serves as the county seat. Despite all the growth of McKinney over the past decade, this next-gen city is only seeing the beginning of its true potential. The SRT121 tollway is one of the fastest developing new corridors in the hot North Texas real estate market. Significant growth in McKinney’s neighboring cities to the south and west show the trending development wave that is fast approaching the growing city. Forward-thinking companies are already starting to take advantage of the quality of life and community amenities the city offers to residents. Independent Financial and SRS both recently built CONTACT
DALLAS McKINNEY 100K+ s/f headquarter buildings in the McKinney Corporate Park off SH 121. Raytheon Space and Airborne Systems (SRS) announced in August a $100 million expansion of their SAS Headquarter facilities that will add more than 500 employees and over 200K s/f of new manufacturing and office space to their campus that will total 1.1 million feet of facilities in McKinney when completed. If McKinney is not on your business radar, it needs to be. The next big development wave in the North Texas market has arrived in McKinney and development is not slowing down.
34 POPULATION GROWTH (99-19)
327% 2ND LARGEST CITY IN COLLIN COUNTY
MCKINNEY ECONOMIC DEVELOPMENT CORPORATION — PETER TOKAR III,MBA, MEDP; PRESIDENT & CEO
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NORTH RICHLAND HILLS: CENTRAL TO SUCCESS NORTH RICHLAND HILLS
NORTH RICHLAND HILLS AVERAGE NEW HOME VALUE
$400,000+ BRICK & MORTAR BUSINESSES
1,200 MILES OF HIKE & BIKE TRAILS
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 DFW Airport, the Alliance Global Logistics hub, and downtown Fort Worth. For over 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. This past year, NRH welcomed over $150 million in new construction, 105 new businesses, and over 230 single-family starts. In 2020, construction began on a mixed-use development being built on the former site of North Hills Mall. Similar to the Collin Creek Mall development, Centurion American Development Group purchased the former mall
CITY POINT — FORMER NORTH HILLS MALL
property to make way for a project called City Point. City Point is a planned development with a mix of uses that includes 370 single-family dwellings, 400 multifamily units and approximately 70,000 square feet of commercial space, including four restaurants and a hotel. The development will be completed in phases and is expected to take five years to reach build out. Learn more at www.NRHED.com and follow us on LinkedIn at www.linkedin.com/company/nrhed.
CRAIG HULSE, CECD, DIRECTOR OF ECONOMIC DEVELOPMENT 817-427-6091
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Bill Cawley, Chairman Mike Ablon, Chairman-Elect
JP Morgan/ JPMorgan Chase Foundation Bank of America Merrill Lynch/Bank of America Charitable Foundation, Inc. Bank of Texas Cawley Partners CBRE U.S Department of Treasury CDFI Fund Champion Advisory Partners Cushman & Wakefield Deloitte. JLL LegacyTexas NexBank SSB Texas Capital Bank Varidesk, LLP Wells Fargo Foundation Winstead PC
Balfour Beatty Construction Corgan EY Frost Bank Granite Properties Holt Lunsford Commercial Invesco Real Estate Jackson Walker LLP KDC Kimley-Horn KPMG Matthews Southwest Munsch Hardt Kopf & Harr P.C. Republic Title of Texas, Inc. Stantec Stewart Title The Howard Hughes Corporation The Turner Construction Company Foundation
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.
Alston Construction Billingsley Company BBVA Brasfield & Gorrie, LLC Compatriot Capital, Inc. Crow Holdings Capital Partners, L.L.C. DPR Construction, Inc. Grant Thornton Haynes and Boone, LLP Hill & Wilkinson Jackson-Shaw NorthMarq Capital ORIX Real Estate Americas Pacheco Koch Consulting Engineers, Inc. PUREPOINT Financial StreetLights Residential Thackeray Partners The Beck Group Todd Interests Trammell Crow Company Trammell Crow Residential Transwestern Westmount Realty Capital, LLC
BENEFACTOR’S CIRCLE 42 Real Estate, LLC Acore Capital AG&E Structural Engenuity Amegy Bank American National Bank of Texas Bank of America Plaza Bank OZK Banner Oak Capital Partners, LP BB&T Benchmark Title Berkadia Commercial Mortgage Bradford Companies
Caddis Healthcare Real Estate CallisonRTKL Capital One Bank Capright, LLC Chicago Title, NCS Dallas Chief Partners LP Corinth Properties CoStar Group Crow Holdings Davidson & Bogel Real Estate Gables Residential Gaedeke Group LLC Gensler GFF Goldman Sachs HALL Group Hillwood Urban HKS HPI Real Estate Services & Investments HRNCIR Construction, LP Hunt Realty Investments, Inc. Integra Realty Resources Jones Day JPI Kane Russell Coleman Logan PC Kennington Commercial Lincoln Property Company Locke Lord LLP MBL Title Merriman Anderson Architects, Inc. MetLife Real Estate Investors Mill Creek Residential Trust LLC Newland Real Estate Group OMNIPLAN, Inc. Orix Foundation Perkins and Will PlainsCapital Bank
Regions Bank Rosewood Property Company Saville CPAs & Advisors Stream Realty Partners The Retail Connection TIER REIT, Inc. Trinity Groves, LLC TRT Holdings, Inc. Turner Construction Company VanTrust Real Estate, LLC VCC Construction Venture Commercial Real Estate, LLC Veritex Community Bank Walker & Dunlop Whiting-Turner Woodbine Development Corporation Younger Partners, LLC
PATRON’S CIRCLE Ace Decor & Finishes, Inc Amanda Ethridge Andrew R. Henry Balfour Beatty Construction Corgan Fauxcades Hill & Wilkinson Hilton Anatole Hotel Jones Day Kimley-Horn Mid Cities Erectors, LLC Perkins and Will Polsinelli PC Venture Mechanical, Inc.
WHO WE ARE TREC is where 2,200 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 2020
Learn more at recouncil.com or by calling 214-692-3600.
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C COMMUNITY The Dallas Regional Chamber recognizes the following companies and organizations for their membership investment at one of our top levels. Bolded companies are represented on the DRC Board of Directors. For more information about the benefits of membership at these levels call Diana Rivas-Smith at (214) 746-6744.
1820 Productions 7-Eleven, Inc. A G Hill Partners LLC Accenture Acme Brick Company Active Network AECOM Aimbridge Hospitality Alaska Airlines AlixPartners LLP Alkami Technology Allegiance Title Company Alston & Bird LLP Altair Global Amegy Bank of Texas Amerant Bank, N.A. American Airlines, Inc. American Heart Association, Dallas Division American National Bank of Texas AMN Healthcare Andres Construction Services Andrews Distributing Company of North Texas Aon Arcosa Armstrong Relocation Ashford Hospitality Trust, Inc Associa At Home AT&T Atmos Energy Corporation Atos IT Solutions & Services Audi of America, LLC Austin College Austin Industries AustinCSI AvreaFoster Axxess Bain & Company, Inc. Baker & McKenzie, LLP Baker Botts L.L.P. Balfour Beatty Bank of America Bank of Texas Barnes & Thornburg Baylor Scott & White Health BBVA Bell Flight Bell Nunnally
BGSF Big 12 Conference Billingsley Company BKD LLP bkm Total Office of Texas Blackmon Mooring & BMS CAT BLNelson Group LLC Blue Cross and Blue Shield of Texas Boeing BOKA Powell Borden Dairy Company Bottle Rocket Brasfield & Gorrie Brierley+Partners Briggs Freeman Sotheby’s International Realty Brinker International, Inc. Business Jet Center Business Wise, Inc. BuzzBallz/Southern Champion Capital One Bank Carrington, Coleman, Sloman & Blumenthal, L.L.P. Cawley Partners CBRE Group, Inc. Centurion American Development Group CENTURY 21 Judge Fite Company Champion Partners Cherry Petersen Landry Albert LLP Chickasaw Nation Children’s Health CHRISTUS Health CHRO Partners CiCi Enterprises, LP Cinemark Holdings (Cinemark USA, Inc.) Cisco Systems Citi City Electric Supply CitySquare Clark Hill Strasburger Cleaver-Brooks Sales and Service ClubCorp USA, Inc. Coca-Cola Southwest Beverages Colliers International Comerica Bank Commemorative Air Force Comprehensive Finance Inc Copart Corgan
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Corinth Properties Corrigan Investments, Inc. CP&Y, Inc. CRIADO Crow Holdings Crowe LLP CSRS CyrusOne Dallas Baptist University Dallas Business Journal - Local Business News Dallas College Dallas Cowboys Football Club Ltd. Dallas Mavericks Dallas Stars Hockey Club Dallas Summer Musicals Dal-Tile Corporation Dannenbaum Engineering Corporation De La Vega Development DeGolyer and MacNaughton Deloitte LLP DENSO Products and Services Americas, Inc. DFW International Airport DHD Films DLR Group | Staffelbach Dorsey & Whitney LLP Dreien Opportunity Partners LLC E Smith Legacy Holdings EarthX Ebby Halliday Real Estate, Inc. Egan Nelson LLP EMR Gold Recycling LLC Eric Affeldt Ernst & Young LLP Estrada Hinojosa & Company, Inc. Ewing Automotive Group Faegre Drinker FASTSIGNS - Northeast Dallas FedEx Office Fidelity Investments Financial Additions Fluor Corporation Headquarters Foley & Lardner LLP Forest City Texas Inc Fox Sports Southwest Freeman Freese and Nichols, Inc. Frito-Lay North America
Frost Bank Frost Brown Todd LLC Furniture Marketing Group G6 Hospitality LLC Gaedeke Group George W Bush Foundation Gibson Dunn & Crutcher LLP Globe Life Goldman Sachs & Co, LLC Granite Properties Grant Thornton LLP Green Brick Partners Greenberg Traurig Gulfstream Aerospace Corporation Gupta & Associates Inc. Hall Group Harness Dickey Hawthorne Family Fund Haynes and Boone, LLP H-E-B/Central Market Hill & Wilkinson General Contractors Hill+Knowlton Strategies Hillwood Development Company, LLC Hilti North America Hilton Anatole Hines Interests LP HKS Inc. HMS HNTB Corporation Hoar Program Management, LLC HOK Holdingham Group North America HollyFrontier Corporation Holmes Murphy HOLT CAT HPI Real Estate Services & Investments/Ross Tower HSBC Bank USA HUB International Insurance Services Hudson Peters Commercial Hunt Consolidated, Inc./Hunt Oil Company IBC Bank IBM Corporation Iconic IT Independent Financial Interceramic International Leadership of Texas
C COMMUNITY Invesco Real Estate Invitation Homes Jackson Spalding Jackson Walker LLP Jacobs Engineering Group Inc. JBJ Management JE Dunn Construction Jim Ross Law Group PC JLL Jones Day JPMorgan Chase & Co. Kane Russell Coleman & Logan PC KDC Real Estate Development & Investments Ketchum Public Relations Kilpatrick Townsend & Stockton LLP Kimberly-Clark Corporation Kimley-Horn and Associates Kirkland & Ellis Kosmos Energy LLC KPMG LLP Kubota Tractor Corporation L.A. Fuess Partners Structural Engineers Lancaster Economic Development Corporation LegacyTexas Bank Life School of Dallas Linebarger Goggan Blair & Sampson, LLP Link America, Inc. Littler Mendelson, P.C. Locke Lord LLP Lockheed Martin Lockwood, Andrews & Newnam, Inc. Lyco Holdings Lyft Inc Lynn Pinker Cox & Hurst, LLP M2 Studio MAPP Mary Kay Inc. Match Group Mbroh Engineering, Inc McCarthy Building Companies, Inc. McGinnis Lochridge McGlinchey Stafford McGough Construction McGuire, Craddock & Strother, PC McGuireWoods LLP McKissack & McKissack McKool Smith McLarty Diversified Holdings McRight-Smith Construction Medical City Dallas Hospital/ Medical City Children’s Hospital Methodist Health System MHBT, a Marsh & McLennan Agency LLC company
Microsoft Corporation Munck Wilson Mandala LLP MV Transportation, Inc. NEC Corporation of America Nicholas Residential Northern Trust Norton Rose Fulbright NTT DATA Inc. Omni Dallas Hotel Omniplan, Inc. Omnitracs, LLC Oncor Options Clearing Corporation Origin Bank ORIX Corporation USA OYO Hotels and Homes Pacific Builders Pape-Dawson Parkland Foundation Parkland Health and Hospital System Paul Quinn College Paycom Penske Motor Group Perkins and Will Perkins Coie LLP Pierpont Communication PlainsCapital Bank PNC Point B Polsinelli Premier Truck Group Prime 45 Development LLC PRSA Dallas - Public Relations Society of America PSA Management, Inc. PureFlow Inc. PwC Qatar Airways Raising Cane’s Raytheon Company RealCom Solutions Regions Bank Reimagine RedBird Reliant, an NRG Company Renfe of America LLC Rent-A-Center Rogge Dunn Group RSM US LLP Ryan LLC Santander Consumer USA Scheef & Stone, LLP SCHMIDT & STACY Consulting Engineers, Inc. Scovell Family Foundation Sendero Sewell Automotive Companies Shackelford, Bowen, McKinley & Norton LLP
Shearman & Sterling Sheppard Mullin Sheraton Dallas Showcall Sicily Hill, LLC. Sidley Austin LLP Silicon Valley Bank Simmons Bank Slalom Smith Limousine Smoothie King SMU - Southern Methodist University Soniks Consulting Services Southern Glazer’s Wine and Spirits Southwest Airlines Southwest Office Systems, Inc. Spectra Spectrum Enterprise Squire Patton Boggs St. Mark’s School of Texas Stantec State Farm Insurance Companies Steinhart Family Advised Fund Stinson Leonard Street Stout Suffolk Construction Sumitomo Mitsui Banking Corporation SMBC T.D. Jakes Foundation Talent Suite Target Headquarters TBK Bank TD Ameritrade TDIndustries Team One Teladoc Telios Tenet Healthcare Texans Can Academies Texas A&M University Texas A&M University Commerce Texas Capital Bank Texas Central Texas Health Aetna Texas Health Resources Texas Instruments Texas Mutual Insurance Company Texas Scottish Rite Hospital for Children Texas Woman’s University Texas Women’s Foundation The Beck Group The Boston Consulting Group The Brierley Group LLC The Brinkmann Corporation The Broaddus Companies The Commit Partnership
The Craig + Kathryn Hall Foundation The Crowther Group The Dallas Morning News The Edelman Group The Episcopal School of Dallas The Fairmont Hotel The Kroger Co. The Parvin Group The University of Texas at Arlington Thompson & Knight LLP Thompson Coburn Thompson Coe Thomson Reuters Thryv TIAA Tom Thumb - Albertsons Topgolf Entertainment Group Town of Addison Toyota Motor North America TracyLocke Transwestern Trellise LLC Trinity Groves, LLC Trinity Industries, Inc. Trinity Park Conservancy TruePoint Communications Truist Turner Construction Company TXU Energy Uber Technologies, Inc. UBS Realty Investors LLC UMB Bank N. A. UnitedHealthcare University of North Texas at Dallas University of North Texas System University of Texas at Dallas USAA UT Southwestern Medical Center Vari Veritex Holdings Verizon Wireless South Central HQ Volunteers of America Texas Vox Global Walmart Stores, Inc. Weaver Weber Shandwick Weil, Gotshal & Manges LLP Weitzman Wells Fargo West Monroe Partners LLC WFAA-TV Whitley Penn Willis Towers Watson Winstead PC Wipro Limited Women’s Foodservice Forum Zinwave
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L LEADERSHIP LEADERSHIP DALLAS:
Helping others and crazy fun make a great life Justin Parscale, principal in the Corporate and Commercial Studio of the Dallas office of Perkins and Will BY SANDRA ENGELLAND
How do you turn a good life into a great life? According to Justin Parscale, you find a job where you can have “crazy, stupid fun,” then you find a mission where you can “do something badass” to help others. Parscale, principal in the Corporate and Commercial Studio of the Dallas office of Perkins and Will, is finding ways to put his passion for architecture to work to improve the lives of others. And building relationships, like he did in the Leadership Dallas (LD) Class of 2019, has been a key part of the process. “You get one shot at this whole big life,” he said. “Leadership Dallas helped me realize I can do more, and it’s less about me and more about others.” Two of the future projects Parscale is most passionate about involve helping others. He’s working on a 15-story apartment complex that will provide low income tax credit housing for service industry workers in the CBD. The complex, located right next to Perkins and Will’s own office in the historic Dallas High School building, will designate a little more than half of the 217 units as low income, but the overall design and the remainder of the units will be competitive market rate. “This is about getting affordable housing into the CBD,” Parscale said. “It doesn’t exist right now.” The other project also is low income tax credit housing. He’s working with Cece Cox from the Resource Center to design a complex for LGBTQ senior citizens. Many in the LGBTQ community don’t have children to help care for them in their later years, so a designated retirement living complex can help fulfill that need. He calls Cox, another Leadership Dallas grad, “the coolest client ever.” Having the common LD experience helped him connect with her right away. A piece of the renovation and repurposing of Red Bird Mall is another Perkins and Will project where Parscale connected with developer Peter Brodsky through their involvement in Leadership Dallas. The firm is working with UT Southwestern and Children’s Dallas to develop
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“Leadership Dallas helped me realize I can do more, and it’s less about me and more about others.”
150,000 square feet of medical space at the former mall. “Without LD, I’m not involved in all these catalyst projects,” he said. Beyond Leadership Dallas, Parscale’s knack for building relationships helped Perkins and Will land more “catalyst projects” like early planning for the three high speed rail stations from Dallas to Houston with developer Jack Matthews and master planning for Fair Park. In 18 years at Perkins and Will, he’s worked on a wide range of — JUSTIN PARSCALE projects. Parscale joined the Dallas office to help diversify the business beyond healthcare and helped design the UT Arlington Chemistry and Physics building and Hector Garcia Middle School in Dallas. In more recent years, he got into designing cancer treatment centers, including facilities at UT Southwestern Medical Center, Baylor University Medical Center in Dallas, and BSA Hospital in Amarillo. Parscale became an expert in radiation treatment vaults, creating designs that improved their efficiency. Now that design is getting copied in sites all over the region, he said. The project at UT Southwestern took years to build and helped him tap into a network of brokers, developers, and local politicians. As he drove to and from the job site, he kept seeing cranes all over the area. “Not enough were Perkins and Will cranes,” he said. Now he spends more than half of his time in business development— working for more PW cranes—while still keeping his hand in architecture design. His business motto? “Take risks, explore what ifs, and deliver.” It’s easy to see that Parscale enjoys what he does and that he has enough energy to lap the Energizer Bunny. How’d he get to be that driven? Growing up with his mom and brother on the east side of Enid, Okla., he didn’t realize how poor they were until he reached his teens. His mom had a friend who was an architect. Parscale used to earn money vacuuming the floors and pulling weeds at the Enid architect’s office. And he saw the possibilities. But it took the encouragement of his high school vo-tech teacher to stick with a drafting class when he wanted to quit. “He believed in me,” Parscale said. Now he tries to pass along that “can do” message to young people by showing them the possibilities. He serves on the board at the Barack Obama Male Leadership Academy in Dallas, and one of the students he mentors is headed to Parscale’s alma mater, Oklahoma State University, to study architecture. “Kids are going to do things when they know of things,” he said.
CALENDAR OF EVENTS
AUGUST. AUGUST 13 DRC 2020 State of Higher Education featuring Dr. Harrison Keller, Commissioner of Texas Higher Education Coordinating Board Virtual Event, 12pm-1pm
AUGUST 25 TREC Bank of Texas Speaker Series: Transportation (Sky’s the Limit) Virtual Event, 11:30pm-1pm Date and time subject to change. For more information, log on to recouncil.com/events.
AUGUST 26 DRC Young Professionals presents Critical Community Conversation w/ After8toEducate Virtual Event, 12pm-1pm
AUGUST 30 – SEPTEMBER 4 Dallas Startup Week Virtual Event
APPLY TREC ALC application deadlines
The 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 the industry’s future leaders.
Associate Leadership Council Class of 2021 application dates* JANUARY 4, 2021: Applications go live
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.
JANUARY 28, 2021: Pre-application deadline FEBRUARY 4, 2021: First open house for interested candidates FEBRUARY 11, 2021: Full application deadline FEBRUARY 18, 2021: Second open house for applicants only *Dates subject to change
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YOUNG GUNS CASINO NIGHT On Thursday, March 5, The Real Estate Council hosted more than 500 young professionals at The Luminary for the annual Young Guns Casino Night in support of TREC Foundation’s neighborhood revitalization partnerships in the Dallas community. TREC is grateful to everyone that attended and participated in our raffle, the members of our Casino Night Committee, our in-kind donors, and sponsors.
PROCEEDS FROM THIS YEAR’S TREC YOUNG GUNS CASINO NIGHT BENEFITTED THE 2020 YOUNG GUNS FOUNDATION PROJECT TO CONSTRUCT THE WE CREATION INNOVATION CENTER ALONGSIDE ST. PHILIP’S SCHOOL AND COMMUNITY CENTER AS PART OF THE ONGOING DALLAS CATALYST PROJECT.
TREC CHAIRMAN BILL CAWLEY, JULIE SAQUETON OF ST. PHILIP’S SCHOOL AND COMMUNITY CENTER, 2020 YOUNG GUNS FOUNDATION PROJECT MANAGERS PATRICK HENNING (BRASFIELD & GORRIE) AND TARA HARANDI (GFF), AND TREC SENIOR DIRECTOR OF COMMUNITY INVESTMENT FELICIA PIERSON
SHAY GOKHALE OF BILLINGSLEY COMPANY WITH HIS WIFE SUCHETA PARKHI-GOKHALE AND ROGER WAGGONNER OF DELOITTE. 6 6 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
THE ASSOCIATE LEADERSHIP COUNCIL CLASS OF 2020
HALEY HULLETT AND YOUNG GUNS CASINO NIGHT CHAIR ANDRE FERRARI, BOTH OF JLL
HARSH AGARWAL OF BANK OF AMERICA CLAIMS HIS RAFFLE PRIZE
BILL CAWLEY: FINDING SUCCESS
BY NEVER ‘WORKING SCARED’ BY CHRISTINE PEREZ
TREC CHAIRMAN BILL CAWLEY
ALENA SAVERA OF STREETLIGHTS RESIDENTIAL WITH HER RAFFLE PRIZE
TREC YOUNG GUNS JAKE MCCALL OF HENRY S. MILLER AND RYAN GARCIA OF LIBERTY MULTIFAMILY SUMMER 2020
Growing up in a small town south of Chicago, Dallas developer Bill Cawley always knew he’d work in real estate someday, just like his dad. Aiming for bigger and better things, he moved to Texas in 1982. He took a job selling condominiums and quickly became the company’s top producer—even selling a unit to a “mystery shopper” who had been hired by the firm to help evaluate its sales force. It was an indication of the success he would go on to have. Today, Cawley is one of the most prolific developers in the Dallas region—and he’s a shrewd investor, too, with a knack for timing. Back in the early 2000s, he built the 1.1 million-square-foot former JPMorgan International Plaza, one of the biggest office developments in Texas. The chairman and CEO of Cawley Partners has had a steady stream of new projects since, favoring the active tollway and Legacy submarkets. His latest is The Parkwood, a 120,000-square-foot office building in Plano that’s one of the few to kick off during the pandemic. Over the years, Cawley has suffered through some down cycles, like the rest of the industry, but he has always seemed to know when and how to get back in the game. Beyond his grit and a gift for connecting with people, he has a true passion for real estate that can be contagious. And he’s not afraid of bold risks, saying he has never wanted to “work scared.” “You have to have confidence in yourself, and you have to work with people who believe in you,” Cawley said. “There is so much uncertainty in the world right now, but one thing you can never be uncertain about is yourself.” In appreciation for those who have believed in him along the way, Cawley makes it a point to mentor others getting started in their careers and give back to the industry and community. He took things a step further when he was asked to take a leadership role in The Real Estate Council, serving as vice chairman before taking the helm this year. “I have so much respect for the organization and its leadership, and if I was going to make the commitment, I was going to do it right,” he said. That meant fully jumping in, being bold in thinking, and not being afraid to push. “If you want someone passive, don’t pick me,” Cawley said.
“THERE IS SO MUCH UNCERTAINTY IN THE WORLD RIGHT NOW, BUT ONE THING YOU CAN NEVER BE UNCERTAIN ABOUT IS YOURSELF.” — BILL CAWLEY A focus is on helping the organization diversify its funding sources, instead of relying mostly on signature events, and doing whatever he can to support the organization’s efforts in South Dallas. “A lot of initiatives are important, but South Dallas needs help,” he said. “The work we’re doing will bear a lot of fruit. It’s going to be a long and focused journey, but I’m young enough, and in 10 years, the results will be dramatic.” Cawley is bullish on the future of the North Texas region as a whole. “The Dallas market has been in favor for the last 10 years, and I think it’s going to be in even greater demand,” he said. “I think COVID-19 is going to be a net positive for Dallas. Companies in dysfunctional work environments are going to run from them when the pandemic is over. They’re going to especially seek out suburban markets, and all major markets in Texas are going to do well.”
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VIEW FROM THE TOP
BY CHRISTINE PEREZ
Chief Operating Officer, PGA of America The region cheered in 2018 when PGA of America announced it would move its headquarters to Frisco from Palm Beach County, Florida. The association’s new 100,000-square-foot home base will anchor a $520 million, 650-acre mixed-use development that also will feature a 500-room Omni resort, retail village, parks, and two championship golf courses, called the East Course and West Course. Both courses are on track to be playable by early 2022; the headquarters is slated to open in June of that year. WHAT ATTRACTED PGA OF AMERICA TO NORTH TEXAS AND FRISCO IN PARTICULAR? The PGA of America was initially drawn to Frisco for several reasons. The central location and multiple airports significantly enhance domestic and international travel to and from our headquarters and education center for our PGA members, business partners, leaders, and staff. Also, Frisco is home to a diverse, well-educated, and talented workforce, and its “Sports City USA” commitment was highly attractive. The market offers a robust, sports-friendly corporate culture and is highly committed to charitable pursuits. And the City of Frisco has a successful track record of public-private partnerships. All of this was exceedingly attractive.
WAS THERE ONE PARTICULAR REASON THAT STOOD OUT?
We saw Frisco as a truly great place to live, work, play, and learn for our teammates and their families, regardless of age and stage of life. Specifically, the highly-rated Frisco Independent School District stood out as a tremendous benefit for current and future employees and their families. In addition, the new UNT campus was another bullseye for us, and we were impressed that both educational institutions immediately leaned in to offer a partnership mindset.
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HOW WILL NORTH TEXAS MEET THE NEEDS OF PGA OF AMERICA AS A PLACE TO GROW AND PROSPER? This is, of course, a two-way street, as the PGA of America is deeply committed to being a highly-valued member of the community—from an economic driver to a civically minded and charitable contributor. We certainly anticipate strong market support for the 23 championships we have committed to bring PGA Frisco during an initial 12-year period. Frisco and the broader DFW market have shown extraordinary advocacy for the local sports franchises and major sporting events, and we are keen to showcase an array of world class talent and event operations for area fans and companies to support and enjoy up close and personal.
WHAT KIND OF JOBS ARE GOING TO BE MOVING HERE IN THE SHORT AND LONG TERM?
PGA Frisco will proudly become the global headquarters for the PGA of America. We have already relocated more than 30 teammates, including me, as we forge ahead with the project, establish roots, and showcase our commitment to the community through these culture carriers. Additional employees will move to our temporary office at Hall Park in Frisco over the next 18
months until the permanent headquarters is completed. Jobs being relocated include both traditional and golf specific corporate roles such as: PGA REACH (foundation), coaching and player development, education, career services, people (HR), public relations, technology, commercial, finance, legal, championships, and executive.
WHAT HAS YOU MOST EXCITED ABOUT PGA OF AMERICA’S FUTURE?
In partnership with the City of Frisco and Omni Stillwater Woods, the PGA of America is excited to introduce, invite, and welcome the citizens of Frisco and DFW to a truly beautiful 650-acre campus that we intend to be a positive addition to the community. Although we’d love everyone to play golf at one or both of our extraordinary golf courses, the PGA Frisco campus also will feature a 500room resort style hotel; a unique, interactive golf experience zone; a golf laboratory and performance center; a short course with lights for both daytime and nighttime play; and a 3-acre hike and bike trail. For the PGA of America, the excitement is centered around offering a multitude of ways for everyone—regardless of age and golf acumen—to have fun at PGA Frisco all the while enjoying the breathtaking views of the golf courses.
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