The coworking EVOLUTION PANEL DISCUSSION: CAPITAL MARKETS THE CRANE REPORT
ANATOMY OF A DEAL :
We design spaces that inspire Supporting our communities from local offices in Dallas, Fort Worth, and Plano.
Visit us at stantec.com to learn more.
TEXAS DESTINATION FOR
A RETAIL, RESTAURANT & LIFESTYLE DESTINATION
Over 8 Million Visitors Annually to Nebraska Furniture Mart/Grandscape Development
Keri Samford, Executive Director of Development 972.624.3127 • firstname.lastname@example.org • www.TheColonyEDC.org
Downtown Dallas is the engine of an economic juggernaut, in the #1 metro area for attracting skilled talent in the country. And with over $5 billion invested in the city center since the year 2000 and over 100 projects underway right now, it’s undeniable—Downtown has arrived.
FIND OUT MORE AT DOWNTOWNDALLAS.COM STATISTICS ARE FOR DOWNTOWN DALLAS AND ADJACENT NEIGHBORHOODS.
ON THE COVER THE UNION Photo by Joseph Haubert, courtesy of Peloton
21 THE CRANE REPORT
Welcome Letter . . . . . . . . . . . . . . . . . . . . . . . . . 6 Publisher’s Note . . . . . . . . . . . . . . . . . . . . . . . . .8
FOUNDATIONS DFW Market Statistics, Economic Indicators, and Commercial Real Estate News. . . . . . . . . 10
PLACEMAKERS Fehmi Karahan, President and CEO of The Karahan Companies . . . . . . . . . . . . . . 12
32 PANEL DISCUSSION
BUILDING TOMORROW TOGETHER Headquarters Won . . . . . . . . . . . . . . . . . . . . 14
THE CRANE REPORT Who’s Building What, Where . . . . . . . . . 17
SCORECARD DFW’s Top Office and Industrial Leases . . . . . . . . . . . . . . . . . 25
PANEL DISCUSSION Capital Markets . . . . . . . . . . . . . . . . . . . . . . . . 28 WINTER 2018
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E XC L USI V E LY P UB L ISHE D B Y D MAGAZINE PARTNERS
40 FEATURE Coworking grows up The real estate industry embraces coworking as a mainstay in the Dallas-Fort Worth office market. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
D MAGAZINE PARTNERS BUSINESS GROUP PUBLISHER Josh Schimmels
PUBLISHER Quincy Preston 214-523-5215 email@example.com MANAGING EDITOR Lance Murray ASSOCIATE EDITOR Alex Edwards CREATIVE DIRECTOR Michael Samples
48 ANATOMY OF A DEAL
CONTRIBUTING EDITOR Christine Perez
There’s more than meets the eye . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Jeremiah Jensen Payton Potter David Kirkpatrick Nicholas Sakelaris
ACCOUNT EXECUTIVES Samantha Ragsdale
‘Retailization,’ Hospitality & Mergers . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
firstname.lastname@example.org Carson Rice 214-523-5259 email@example.com
SPECIAL ADVERTISING SECTION
BUSINESS DEVELOPMENT MANAGER
Economic Development Directory Profiles of cities around the region . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Stephanie Mojonnet 214-523-0311 firstname.lastname@example.org MEDIA DEVELOPMENT MANAGER Payton Potter
COMMUNITY Dallas Regional Chamber, Top-Level Members . . . . . . . . . . . . . 62 The Real Estate Council, Impact Investors . . . . . . . . . . . . . . . . 61 Dallas Regional Chamber, Leadership Dallas . . . . . . . . . . . . . . . 64 Calendar of Events . . . . . . . . . . . . . . 65
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The Real Estate Council Photos: Texas Speaker Series . . . . . . . . . . . . 66
The Real Estate Council, TREC Leadership . . . . . . . . . . . . . . . 67
View From the Top: Stephanie Chung, President of JetSuite . . . . . 68
Dana McCurdy Michelle Quiroz
Dallas-Fort Worth Real Estate Review® is published for The Dallas Regional Chamber and The Real Estate Council by D Magazine Partners, 750 N. St. Paul St., Ste. 2100, Dallas, TX 75201; www. dallaschamberpublications.com, 214.523.0300. ©2019 All rights reserved. No part of this publication may be reproduced or reprinted without written permission. Neither the Dallas Regional Chamber nor The Real Estate Council nor D Magazine Partners is a sponsor of, or committed to, the views expressed in these articles. The publisher is not responsible for unsolicited contributions.
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Blackard Global Craig International CWA Management Dreien Opportunity Partners Embrey Partners KDC Malcolm Bryant Co. Montgomery Family Newell Companies Options Real Estate Parliament Group Rex Real Estate Rosewood Property Co. Suburban Land Reserve Standridge Companies Thompson Realty Trike Investors Westcott Woodhouse Allen Argyle Burleson Celina Dallas DART Duncanville Fate Flower Mound Fort Worth Frisco Garland Grapevine Irving Mansfield McKinney Melissa NCTCOG North Richland Hills Roanoke Richardson Plano
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A letter from the Dallas Regional Chamber and The Real Estate Council 2019 CHAIRMAN OF THE BOARD Chris Nielsen
PARKS AND GREEN SPACES: A KEY FACTOR IN LIVABILITY
Executive Vice President Product Support & Chief Quality Officer Toyota Motor North America PRESIDENT & CEO Dale Petroskey CHIEF OPERATING OFFICER & CHIEF FINANCIAL OFFICER
DALE PETROSKEY President and Chief Executive Officer Dallas Regional Chamber
LINDA McMAHON President and Chief Executive Officer The Real Estate Council
The greatest cities are known for having great parks. Think about all your travels
and what parks you have enjoyed that were deemed as must-see. New York City’s Central Park is an obvious choice—a marvel of how one of the most vibrant cities in the world created 840 acres of parkland in the heart of the city. Millennium Park in Chicago is another, with its iconic sculpture known as “The Bean.” Once an industrial wasteland, Millennium is now a vibrant park for Chicagoans and a top destination for tourists. We are very proud of our own Klyde Warren Park, which is only 5.2 acres yet one of the most popular gathering places in the city. This park, created out of thin air where a freeway used to exist, is one of The Real Estate Council’s first impact investment projects. It has transformed the city and is attracting people from all over the region. Park enthusiasts, engineers, and architects from around the world come to see for themselves what Klyde Warren Park is all about— and what it has done for our city. One need only look at the construction and activity around the park to see what the future holds—and we
are just getting started. The organization Parks for Downtown Dallas was established in 2015 and is focused on building four new parks in Downtown Dallas, adding 17 more acres of parkland in the center of the city by 2022. The completion of these parks will increase downtown parkland to over 50 acres. Today, the City of Dallas boasts 382 parks and 145 miles of trails within the city limits. Throughout the Dallas Region, an increasing focus is on greenspace and recreational places. The Circuit Trail Conservancy is focused on building out a 50-mile loop that will connect existing trails like the Katy Trail to the Santa Fe Trail to provide hiking and biking opportunities throughout the city and connect neighborhoods and people. While these green spaces improve our quality of life, they also have incredible economic value. HR&A Advisors recently conducted an impact study for the City of Dallas and estimated that $678 million is the annual economic value of our parks—$306 million in tourism alone. The economic benefit has been studied and verified. People love to look out their windows and see greenspace. The economic benefit is the reason for the investment, but the quality of life is the immeasurable benefit. Parks are often cited in surveys as the most important factor in a city’s livability. As we seek to attract relocating companies and their employees to the Dallas Region, this is undoubtedly important to them as they decide where they want to be. Our investment in parks in the Dallas Region will bode well for us in the future as we continue to create an amazing livable, sustainable, and healthy place.
Angela Farley COMMUNICATIONS & MARKETING, SENIOR VICE PRESIDENT Darren Grubb RESEARCH AND INNOVATION, SENIOR VICE PRESIDENT Duane Dankesreiter RESEARCH AND INNOVATION, MANAGING DIRECTOR Eric Griffin
2019 CHAIRMAN Jim Knight Stantec CHAIRMAN-ELECT Bill Cawley Cawley Partners PRESIDENT & CEO Linda McMahon VICE PRESIDENT, LEADERSHIP & CULTURE Holland Morris CFO Carla Brandt
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YOU FOUND THE SWEET SPOT. Welcome to Addison, where you’re 15 minutes from anywhere in Dallas. There are more than 1,600 businesses here, surrounded by 180 restaurants, 24 hotels and the top-ranked general aviation airport in Texas. With over 10 million square feet of office space, highly qualified workers in every field close by and a city government dedicated to helping you succeed, it’s no wonder NerdWallet voted Addison the #1 city in Texas to start a business. AddisonED.com • 972.450.7076
UPFRONT QUINCY PRESTON Publisher Dallas-Fort Worth Real Estate Review
A letter from the Publisher
On the edge of Uptown, a new mixed-used tower has risen that’s being called a gamechanger by real estate insiders. It’s The Union: a mix of office, residential, restaurants, and, most notably, a full-service grocery store to serve downtown Dallas. In our Anatomy of a Deal cover story, writer Payton Potter takes us inside The Union beginnning on Page 50. Starting on Page 28, industry experts discuss how Dallas-Fort Worth continues to be one of the top three places for investors to put their money. During The Real Estate Council’s panel discussion on Capital Markets, some of the industry’s keenest minds examine the present and peer ahead at Dallas-Fort Worth’s future. Coworking is more than a passing fad or a short-term trend. It’s become an increasingly vibrant part of the Dallas-Fort Worth real estate market. Writer Jeremiah Jensen looks at how coworking has grown up. It’soffered building owners new ways to use their space, and entrepreneurs and startups a cost-effective place to build their businesses. You’ll find Jensen’s report starting on Page 40. From hospitals to satellite clinics, the health care real estate sector seems to be in good health itself. There’s plenty of new construction and renovation of existing facilities going on across North Texas. We take you inside one of the newest— the Scottish Rite for Children Orthopedic and Sports Medicine Center in Frisco— for a closer look. The Innovation feature begins on Page 54. In our Placemaker feature beginning on Page 12, master developer Fehmi Karahan talks about how Legacy West became home to an impressive list of company headquarters—including Toyota Motor North America—and his Shops at Legacy became a gathering place and shopping destination in Plano. Karahan isn’t slowing down, though, telling us what attracted him to his newest undertaking, the massive Fields development in Frisco. In the View From The Top feature on Page 68, JetSuite President Stephanie Chung tells us why the company decided to take flight from California and land its headquarters in Dallas. You’ll also find the biggest lease transactions in the office and industrial sectors in Scorecard, beginning on Page 25, and the latest in North Texas construction projects in the Crane Report beginning on Page 17. We’ve got DFW market statistics, economic indicators, and commercial real estate news in Foundations, beginning on Page 10. You can find extended content on our website, www.dfwrealestate.com, and in our Facebook feed. Stay in touch. We want to hear from you.
Quincy Curé Preston Publisher
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No matter who you are or where youâ&#x20AC;&#x2122;re from, when you Say Yes to Dallas, youâ&#x20AC;&#x2122;re Saying Yes to more than you might think. s ayye stodal l a s .com
A baseline for the region’s future
OFFICE SECTOR STRONG, LEASE ASKING RATES LEVEL OFF At the close of the third quarter, the office market in Dallas-Fort Worth continued to show growth, according to research from Cushman & Wakefield. The quarter ended with 3.5 million square feet of new office space under construction. That’s down from 6.3 million square feet at the close of the same quarter last year, the research shows. Of that 3.5 million square feet,
some 1.2 million square feet of space is preleased, C&W says. More than 950,000 square feet of that space was in Dallas, and 75 percent of that was spec product. The rest was build-to-suit construction. Cushman & Wakefield says that office vacancy in Dallas-Fort Worth rose in the third quarter to 18.8 percent, year over year. The market also is seeing an increase in sublease space, with 3 million
square feet vacant compared to 1.5 million square feet in the same quarter of 2017. Overall average asking lease rates have continued to level, Cushman & Wakefield says, with the third quarter closing at $26.47 per square foot on an annual full-service basis. That’s a slight increase from the $26.43 per square foot at the end of the second quarter.
NEW OFFICE CONSTRUCTION PIPELINE 6
5 4 3
Historical Average =
SOURCE: Cushman & Wakefield
Historical Average = 17.4%
SOURCE: Cushman & Wakefield
Millions of Square feet
C&W says that Class A was the leader in occupancy with 1.7 million square feet of space yearto-date, while Class B space rose to 18.2 percent compared to 17.6 percent at the end of the same quarter a year ago. Where are the highest Class rental rates? That would be Uptown ($50.11 psf), Preston Center ($43.56 psf), and Arts District ($39.89 psf).
ABOVE AVERAGE RENTS REFLECT STRENGTH OF DOWNTOWN DALLAS APARTMENT MARKET $2,200
Eff ective rent - Class A Eff ective rent - Recent deliveries Occupancy - Class A Occupancy - Recent deliveries
UNITS DELIVERED SINCE 2016
Eff ective monthly rent
5,000 NEW UNITS ABSORBED
60% 55% 50%
MONTHLY LEASE-UP/ PROJECT
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UPTOWN & CBD
The downtown Dallas apartment market continues to show strength, with above average rents and Class A properties continuing to show good occupancy rates, according to research released by JLL. Since the end of 2012, some 13,000 apartments have been delivered in Dallas’ urban core with 10,800 units coming to the Uptown neighborhood. JLL says that Class A occupancy is at 88.5 percent, off its peak of 94.4 percent in 2012. New deliveries have dampened occupancy over the past few years. On the rent front, strong demand between 2012 and 2016 has fueled Class A rent gains of 5.7 percent annually, JLL says, although Class A rents have been flat since then. The current average rate for new units is $2,080 per month or $2.23 per square foot, JLL says. That’s a 5.5 percent monthly premium over Class A, and a 12-percent-per-square-foot premium, given the slightly smaller unit sizes. In 2016, lease-up averaged 23 units per month, per project, but that has slowed now to 12 to 13 units per month, JLL says.
F FOUNDATIONS RETAIL
INDUSTRIAL SECTOR RECORDS 32ND STRAIGHT POSITIVE ABSORPTION QUARTER The industrial real estate market in Dallas-Fort Worth continues its strong ways, with the third quarter of 2018 marking the 32nd consecutive quarter of positive absorption for the market, according to research from CBRE. While CBRE says that the industrial construction pipeline contracted in the third quarter to just over 20.6 million square feet of space, construction starts during the third quarter totaled 4.7 million square feet. The real estate firm says that industrial occupiers took almost 4.2 million square feet of space in that quarter, bringing the yearto-date absorption total to 14.1 million square feet of space. Industrial product coming online totaled almost 6.5 million square feet of space, and it was 40.4 percent precommitted,
20.6 MILLION SQUARE FOOTAGE OF INDUSTRIAL SPACE IN PIPELINE
6.5 MILLION SQUARE FOOTAGE OF SPACE COMING ONLINE
CBRE reports. The vacancy rate for the overall market rose a slight 21 basis points over the quarter and was at 6 percent at the end of the quarter.
Net Absorption (MSF)
95.0% 93.5% 92.0% 90.5% 89.0% 87.5%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
DALLAS POPULATION GROWTH AND HOUSEHOLD
seeing a “retail revival” 20 years after its grand opening. The 75-acre mixed-use development was 28 percent leased in 2012, but now it is experiencing an 83 percent occupancy rate, CBRE says. In 2018, Victory Park is opening 10 food and beverage concepts. Already open are Orangetheory Fitness, WeWork, and Cinepolis Luxury Cinemas, the company says. CBRE also points out that a rise in population and in the number of jobs—44,047 jobs in the 12 months ending in August—has created a demand for more shops, restaurants, and entertainment venues. That trend should continue, as demand for those types of properties remain strong.
10 9 8 7 6 5 4 3 2 1 0
The Dallas-Fort Worth retail sector continued to show strong numbers in occupancy, construction, and deliveries, according to a report from real estate firm CBRE. The report showed that overall big box vacancy totaled just over 4 million square feet in 110 properties throughout North Texas in the third quarter. CBRE says that compares favorably to the vacancy totals in 2009 and 2010 when nearly 250 vacant big box locations were available. CBRE points out that Circuit City, Linens N Things, and several grocers left the North Texas market with big box sites that allowed new retail concepts to expand into Dallas-Fort Worth. Also, CBRE says that Victory Park near downtown Dallas is
NET ABSORBTION AND MARKET OCCUPANCY
STRONG NUMBERS ARE A SELLING POINT FOR DALLASFORT WORTH RETAIL SECTOR
DALLAS-FORT WORTH TOPS PWC EMERGING TRENDS IN REAL ESTATE SURVEY Dallas-Fort Worth is back on top in the Emerging Trends in Real Estate survey by professional services firm PwC, looking ahead to 2019 in the United States and Canada. PwC said that survey respondents continued to put more 18-hour markets in the Top 20, with San Antonio and Austin joining Dallas-Fort Worth in the elite group. According to the survey summary: “The chief economist for an institutional investor remarked that Dallas-Fort Worth is an interesting market, one with potential for strong future growth but also with the liquidity of a gateway market.” Eighteen-hour markets are so-called second-tier cities with above-average urban population
growth and lower costs of doing business as compared to the so-called “gateway cities,” of Boston, Chicago, Los Angeles, New York, San Francisco, and Washington, D.C. The highest-ranked gateway city was Boston, which remained in the Top 10. Respondents apparently are still interested in markets that are adjacent to gateway locations, however, as Brooklyn moved all the way up to No. 2 in the survey.
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PHOTO: LANCE MURRAY
A LEGACY OF HEADQUARTERS Fehmi Karahan’s reputation grew along with Plano’s Legacy West and the Shops at Legacy. He’s not slowing down, though, and is taking on the massive Fields project in Frisco. 1 2 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
BY LANCE MURRAY
Master developer Fehmi Karahan has a clear view from his office high above the Dallas North Tollway. Decades ago, the view consisted of rolling grasslands. Today, the location is home to corporate giants and thousands of people who live and work in Plano. Karahan, president and CEO of The Karahan Companies, is responsible for a headquarters-filled business park on the 2,665 acres he bought from H. Ross Perot Sr. at Legacy Drive and the Dallas North Tollway. The booming mixed-use developments are Legacy West and The Shops at Legacy in Legacy Town Center. “I’m a beneficiary of [Perot’s] vision … and even though I get a lot of credit, if it wasn’t for his vision of putting this together, I would not have had the good fortune to develop Legacy Town Center, The Shops at Legacy, and Legacy West,” Karahan says. The 240-acre Legacy West mixed-use development, on the southwest corner of the Dallas North Tollway and State Highway 121, has, indeed, attracted the corporate giants, with campuses for Toyota Motor North America’s headquarters, Liberty Mutual, JPMorgan Chase, FedEx Office, and others. It’s a place Karahan said might be considered a “headquarters for headquarters.” Karahan, a Turkish immigrant, started building his reputation in 1999 when he signed an agreement with Perot’s Electronic Data Systems to buy land on which to build Legacy Town Center, the 150-acre mixed-use development where The Shops at Legacy sits. The Shops at Legacy is a 400,000-square-foot gathering place that is at the heart of the Legacy Business Park.
THE SHOPS AT LEGACY
PHOTO: LANCE MURRAY
“Legacy West is beautiful architecturally, and everything else. It’s first class,” Karahan says, adding that he understands what Legacy West has done for the entire North Texas community and the State of Texas in terms of jobs and community involvement. Karahan says that Legacy West has created three major impacts on the region: • Bragging rights as home to major corporate headquarters; • High-paying jobs; and • Rising home prices in a healthy housing market. “The impact of Legacy West is so huge,” he says. “I’m certainly proud of Legacy.” As for The Shops at Legacy, Karahan says it has a different impact on the community. “I enjoy creating a place with heart and soul that makes a big difference in people’s lives,” he says. “It’s not an ordinary shopping center. It’s not an ordinary real estate development. It has heart, it has soul, it has character. It’s a gathering place.” That kind of appeal doesn’t just happen. “A lot of planning, and a lot of thought goes into that,” he says. Karahan—who began his real estate career in 1980 working for a fellow Turkish immigrant—operates under a simple, but effective, philosophy in choosing what work he will be involved in. “Early on, I learned what deals to make and what deals not to make,” he says. “I’m not going to get involved in a real estate transaction unless I firmly believe that it can have the potential to be successful—that I passionately feel that it can be a successful project.” While Karahan’s first development—an 8,000-square-foot strip center in 1984 on Webb Chapel Road in North Dallas—was small in size, what may prove to be his final development is grand in scale and rooted in North Texas’ ranching history. Karahan will be working alongside Hunt Realty Partners to develop the massive 2,554-acre Fields development on a site in North Frisco that was once the Headquarters Ranch. The land was bought from the estate of Bert Fields Jr. Hunt Realty and Karahan will develop the mixed-use site into commercial, office, retail, residential, and multifamily locations. In December 2018, the development attracted its first major occupant when the PGA of America announced it would relocate its headquarters to Frisco from Palm Beach County, Florida, bringing with it the potential for major golf tournaments, jobs, prestige, and new technologies to help the sport grow. The project will have an initial estimated public-private investment totaling more than $520 million and comes at a time when many people thought Karahan might be ready to slow down. But Karahan has a different idea. “In the last two to three years, I was asked, ‘Fehmi, what’s next?’” he says. Using sports analogies to quantify his success, he went on to say: “My response
“EARLY ON, I LEARNED WHAT DEALS TO MAKE AND WHAT DEALS NOT TO MAKE.” — FEHMI KARAHAN
has been ‘I’ve won the Super Bowl two or three times, or I’ve won the Masters.’” Then the Fields development came along. “What attracted me was the sheer size— 2,600 acres in a strategic location,” he says. “I felt that this is an incredible opportunity to create something significant.” It also will give him an opportunity to work with Ray Hunt, who he says is one of the people he most admires. Because to Karahan, his relationship with the Ray Hunt family is both a friendship and an opportunity to work. Another factor weighed in, too, Karahan says: “the city of Frisco’s desire to get me into Frisco.” Karahan will continue doing what he has loved doing for the past 38 years. It’s not work for him, it’s fun. “I am very fortunate to say what I do is my hobby,” he says. “I don’t get into things with a fear of losing. I get into things for the joy of winning.”
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B BUILDING TOMORROW TOGETHER
HEADQUARTERS WON BY MIKE ROSA SENIOR VICE PRESIDENT, ECONOMIC DEVELOPMENT, DALLAS REGIONAL CHAMBER
Most of the time, you’ll win a bet if you wager someone can’t name the largest U.S. company to make a headquarters location announcement in 2018. Even if you drop the eyebrow-raising hint that it wasn’t Amazon, it’s likely most won’t recognize McKesson — moving to Irving in 2019— as a Fortune 6 company. While the Dallas Region did not win HQ2 of the nation’s eighth biggest company (Amazon), we landed HQ1 for the nation’s sixth-largest company. Combined with Core-Mark, another Fortune 500 headquarters that quietly announced a 2019 move to Westlake from south San Francisco, they are the 23rd and 24th Fortune 500 HQ1s to call
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this region home. Two Fortune 500 location announcements in one year is fantastic. McKesson and Core-Mark join Jacobs, Fluor, Comerica, and AT&T as Fortune 500 companies to move here in recent years. They join Toyota, Boeing Global Services, NTT Data, Hilti North America, Copart, Smoothie King, and many other headquarters that also have relocated here. If we go ahead and count McKesson’s move, the Dallas Region is the headquarters location for three of the 10 largest U.S. companies — Exxon, McKesson, and AT&T. No other metro area in the U.S. has more than one. That’s another good business trivia question. Irving, home to both
B BUILDING TOMORROW TOGETHER Exxon and McKesson, has more Fortune 10 headquarters than any other city in the United States. In 2016, McKesson considered multiple metro areas in the U.S. for a major corporate office consolidation and selected Irving, a great win for the Irving-Las Colinas Chamber of Commerce and the City of Irving team. The State of Texas supported McKesson’s growth with a Texas Enterprise Fund award. The headquarters remained in San Francisco then, but winning that consolidation set the stage for the headquarters to follow. The DRC’s initial engagement with McKesson was in 2015 on a California marketing trip. We learned the company was evaluating its U.S. footprint and that we’d likely have an opportunity to recruit a larger presence here. We know we’re a top spot for HQ1s and an attractive place for major second campuses for companies currently based elsewhere; even if well-publicized decisions by Amazon and Apple did not include our region. From reports and our direct communication with Amazon, including the second visit to Dallas in August, we know the Dallas Region made a deep run. Amazon compressed the urgency and timeline to reach 50,000 jobs, which I believe inspired the company’s decision to split HQ2 and cast the widest net possible in the nation’s most tech-talent-rich corridor. Apple announced in early 2018 its plans to significantly expand at existing campuses (such as Austin) and also to select a third market outside of Texas or California for a major new campus. While
THE DALLAS REGION IS IDEALLY SUITED FOR EITHER HEADQUARTERS OR MAJOR OFFICES. IT HAS THE LARGEST CRITICAL MASS OF TALENT, CORPORATE ACTIVITY, AND SUPPORT SERVICES IN THE U.S. — ALL IN A BUSINESSFRIENDLY STATE. we’re disappointed not to have been selected by Amazon, and not a spot Apple considered, according to its plan, we’ve been winning corporate campuses for a while. It’s not a brand new trend. The Charles Schwab campus under construction in Westlake is a prime example, and near it is Fidelity’s huge campus. Capital One in Plano, Microsoft in Irving, and State Farm in Richardson are other great examples of companies locating and growing here in a big way. The Dallas Region is ideally suited for either headquarters or major offices. It has the largest critical mass of talent, corporate activity, and support services in the U.S. — all in a business-friendly state. Our cost-of-doing-business and cost-of-living profile gives a company confidence it can find, bring, and attract large numbers of employees here. For a corporate headquarters, we add our enviable advantage of incredible air service, combined with a central U.S. location and time zone. There’s more to come. As we roll into 2019, the DRC’s list of active projects has companies, including tech companies, seeking a new headquarters or major campus location. Our final marketing trip of 2018, the week of Dec. 17, included a C-level meeting with another of our targeted companies. We plan to increase by 50 percent our marketing trips and corporate calls in 2019 to leverage our success and take advantage of the moment.
WANT TO LEARN MORE ABOUT HOW TO GET INVOLVED IN BUILDING TOMORROW TOGETHER?
Contact Mike Rosa, Senior Vice President, Economic Development, Dallas Regional Chamber 214-746-6735 | email@example.com
BUILDING TOMORROW TOGETHER The Dallas Regional Chamber’s economic development program, Building Tomorrow Together, provides organizations in Dallas-Fort Worth with an accelerated investment opportunity that helps advance our region’s success. This additional investment made by more than 130 organizations, in addition to annual chamber membership dues, allows organizations to increase their support of our efforts to further economic prosperity throughout the region. This initiative funds efforts related to direct contact with corporations and location consultants examining the DFW region.
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Onward and Upward
Methodist Pavilion I Addison, Texas
Parkland Hatcher Station Health Center Dallas, Texas
Forest Park Medical Center Frisco, Texas
Forest Park Medical Center San Antonio, Texas
Texas A&M Health Science Center Bryan, Texas
Las Colinas Medical Office Building Irving, Texas
Parkland Hatcher Station Health Center Dallas, Texas
State of the Art Medical Office
From public-private partnerships to primary care, we are committed to familiesâ&#x20AC;&#x2122; health and wellness.
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MCKINNEY & LEMMON RENDERING: KDC
THE CRANE REPORT
Space in Dallas-Fort Worth continues to be strong, and as companies seek to attract labor and differentiate themselves from others, creating a unique environment is important, says Ran Holman of Cushman & Wakefield. In each issue, we showcase projects that are underway or planned in the Crane Report. Maps for the office and industrial markets are provided by Transwestern. Data for the multifamily market is provided by Axiometrics, a RealPage company. BY LANCE MURRAY
ON-TH E-G RO U N D I N SI G H TS
Managing Principal, DFW Market Leader at Cushman & Wakefield
“The office trend that stands out the most to me is the focus on experience. As the competition for attracting and retaining labor intensifies, so does the need for design and amenity solutions that create unique—if not irreplaceable— environments. The experience has become an expression of identity.”
Principal-in-Charge, BOKA Powell Architects
“2019 will be another great year for North Texas. We see the competition for talent as the number one driver for corporate real estate decisions. Flight to quality is a trend among decisionmakers, rather than flight to value. Class A and Class AA, fully-amenitized buildings will rule the roost.”
SCOTT W. MOORE
“The big trend for industrial entering 2019 is parking— both trailer and employee parking. Trailer parking is essential because it allows tenants to do more with less space and for dock high doors to be turned more often. Employee parking is critical because of the growth of ecommerce and the ability to secure these truck courts are a plus.”
“As financing gets tighter late in the cycle and construction costs continue to push, having a better/ unique story will matter significantly more than in prior years. Better design, attention to what matters to the resident (livability of space, technology, amenities), and higher barriers-to-entry markets will be the deals that get done in 2019.”
Senior Partner and Chief Operating Officer, Holt Lunsford Commercial
Chief Operating Officer, StreetLights Residential
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 1 7
THE CRANE REPORT:
RAYZOR RANCH MEDICAL PARK
OFFICES AT RAYZOR RANCH DUCHESS OFFICE PARK FOURCORNERSTONES OFFICE BUILDING FORT WORTH DR PROFESSIONAL OFFICE PARK
ANNOUNCED + UNDER CONSTRUCTION
ANNOUNCED DEVELOPMENTS 1
RIVER WALK MEDICAL PARK IV LAKESIDE CROSSING
MCKINNEY & LEMMON
STONEGLEN OFFICE BUILDING
SIZE: 450,000 square feet LOCATION: Uptown Dallas DEVELOPER: KDC & Central Market DETAILS: A Central Market grocery store will occupy the lower levels of this 19-story mixed-use project that will include office, retail, and restaurants on the site of a closed Albertson’s store at McKinney and Lemmon Avenues in Uptown. Dallas’ Omniplan and San Antonio design firm Lake|Flato are designing the project.
CHARLES SCHWAB CORPORATE CAMPUS
CHAPEL PHASE 1 CROSSING KRIYA OFFICE BUIDLING CARILLON COURT SOUTHLAKE MEDICAL OFFICES
THE TRAD HEADQUA FREEPOR COMMON
THE BRAUN ON BELT LINE
HERITAGE GLEN MEDICAL CENTER
LAS COLINAS CORPORATE CENTER III
USCIS BUILDING AMERICAN AIRLINES CORPORATE CAMPUS VIRIDIAN TOWN CENTER BUILDING I
THE OFFICES AT HAMPDEN WOODS
BROOKHOLLOW COMMONS II
MUSEUM PLACE III
WATERSIDE OVERTON CENTRE TOWER III
CHISHOLM TRAIL PROFESSIONAL PLAZA
SIZE: 400,000 square feet LOCATION: Coppell DEVELOPER: The Billingsley Co. DETAILS: The developer has filed plans for two new 5-story office buildings as well as a parking garage and townhomes on almost 10 acres at Olympus Boulevard and Rombauer Road in the Cypress Waters development northwest of Dallas. So far, Billingsley has built roughly 2.5 million square feet of office space in Cypress Waters.
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BARDIN ROAD CENTER PHASE II
CHISHOLM TRAIL PROFESSIONAL CENTER
MANSFIELD WEBB AND LAFRONTERA TRAIL
BROAD STREET PLAZA
MANSFIELD MEDICAL OFFICE
DATA SOURCE: REAL ESTATE REVIEW RESEARCH/ DALLAS REGIONAL CHAMBER / VARIOUS REAL ESTATE FIRMS
SIZE: 300,000 square feet LOCATION: Uptown Dallas DEVELOPER: Kaizen Development Partners DETAILS: The 22-story Class AA office building is going to be built on one of the most coveted sites in Uptown. The building is designed by BOKA Powell. It will have protected views overlooking downtown Dallas to the south and the Dallas North Tollway to the north. Completion is expected in late 2021.
UNDER CONSTRUCTION PLAYFUL CORP HEADQUARTERS COBB FARM WEST OFFICE PARK FRISCO MEDICAL ELDORADO PAVILION STONEBRIDGE OFFICE CONDOS MEDICAL CONDOS FAIRVIEW LEGACY MCKINNEY RANCH EXECUTIVE VILLAGE PROFESSIONAL CENTER PARK STONEBROOK MONARCH STEWART CREEK CITY OFFICE OFFICE CENTER V INDEPENDENCE PKWY ALLEN MEDICAL OFFICE BUILDING WADE PARK ANGEL & OFFICE/RETAIL ALLEN PLACE NATIONAL EXCHANGE THE MEDICAL CENTER STAR MUSTANG ALLEN DUKE BRIDGES V WATTERS SQUARE & MAIN CREEK STONEBRIAR NORTH COMMONS LEGACY 1000 CENTRAL AT PRESTON PARC II WATTERS CREEK CENTRE PLAZA AT THE COLONY LEGACY BUSINESS PARK THE REALM AT LEGACY PARK C CASTLE HILLS LEGACY WINDHAVEN TWO LEGACY CENTRAL 5 PLACE ONE WEST THE OFFICES AT WILLOW BEND CROWN INTERNATIONAL PROFESSIONAL/ CENTRE BUSINESS PARK HERITAGE MEDICAL OFFICES CREEKSIDE TOWERS
NORTH DALLAS MEDICAL CENTER PHASE II
THE RIDGE AT 121 TRINITY MILLS BENT TREE URBAN VILLAGE AT THE DE GROUP PARKWAY ARTERS RT NS POINT THE INWOOD FOUR WEST II LINCOLN AT ALPHA WEST CENTRE
6 HIDDEN RIDGE
N PLANO RD & ARAPAHOE
VILLAGE ON THE PARKWAY PHASE ONE
WEST LOVE BAYLOR SCOTT & WHITE MEDICAL CENTER MOB III
THE DESIGN DISTRICT TOWER PARKLAND KNIGHT
THE POINTS THE GRID AT WATERVIEW
INFINITE PROSPECTS MIDTOWN MEDICAL TOWER OFFICE TOWER IN THE GLEN AT PRESTON HOLLOW HILLTOP PLAZA
THREE HICKORY CENTRE PIONEER NATURAL RESOURCES
OFFICE CONVERSION MEADOW GREEN MEDICAL CENTER
OGH MEDICAL CENTRE ROWLETT
BAYSIDE OFFICE TOWER
SWC SH 205 & FM 549
THE FAIRMOUNT BUILDING
GATEWAY OFFICE TOWER THE UNION
IRVING IT PARK
SIZE: 125,000 square feet LOCATION: Las Colinas in Irving DEVELOPER: T2V Properties DETAILS: Work on the the 3-story, 35,430-square-foot first-phase building on Westridge Circle North in Las Colinas is currently underway. The property will be pitched to tech companies and, when complete, the entire campus will have roughly 125,000 square feet of office space.
BAYLOR, SCOTT & WHITE HEALTH THE EPIC DEEP ELLUM THE DREVER
PHYSICIANS SPECIALTY CENTER SUNNYVALE MEDICAL CENTER
SOLA ON LAMAR DAVIS STREET MARKET OFFICE PARK
SIZE: 210,000 square feet LOCATION: Frisco Station, Frisco DEVELOPER: VanTrust Real Estate DETAILS: This is the second of five major office projects planned at the $1.8 billion, 242-acre Frisco Station mixed-used development. Manhattan Construction is the design-build contractor on the project and HKS is the project architect.
● ANNOUNCED ● UNDER CONSTRUCTION MAP COURTESY OF TRANSWESTERN
THE BRAUN ON BELT LINE
SIZE: 168,000 square feet LOCATION: Coppell DEVELOPER: Cawley Partners DETAILS: Located just north of LBJ Freeway in Coppell, this will be a threebuilding development on the east side of Belt Line Road next to Cypress Waters. The first phase is a 168,000-square-foot office building.
3501 OLYMPUS BLVD.
SIZE: 203,000 square feet LOCATION: Cypress Waters DEVELOPER: Billingsley Co. DETAILS: The $22.5 million, 5-story office building is the next phase of the Cypress Waters development. The project will feature a courtyard with sculptures, a conference center, and fitness facility.
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 1 9
THE CRANE REPORT:
990 N MASCH BRANCH RD
17887 US HIGHWAY 380 W
1635 N FM 156
ANNOUNCED + UNDER CONSTRUCTION
GATEWAY DR @ FM 407
1502 EAGLE FM 156 & ELIZABETH CREEK
DFW MUSTANG PARK
N BEACH ST
1-11 HASLET COUNTY RD
14484 AVONDALE HASLET RD
SIZE: 976,038 square feet LOCATION: Dallas Fort Worth International Airport DEVELOPER: Prologis Inc. and Holt Lunsford Commercial DETAILS: The two developers have filed plans for a three-building industrial park on Mustang Drive near State Highway 121. An affiliate of Prologis plans to construct a 401,280-square-foot building and another 429,700-squarefoot building. Holt Lunsford is planning a 145,058-square-foot building.
1000 GARDEN RIDGE BLVD 1901 LAKESIDE PKY 2601 S VAL 1001 LAKESIDE PKY LAKESIDE PKY @ GARDEN RIDGE BLVD
12451 WILLOW SPRINGS RD
1101 INTERSTATE 35 W
10488 HICKS FIELD RD
W WALNUT HILL LN & E AIRFIE DR
5405 WATAUGA RD
5651 MARK IV PKY 1201 & 1301 NE LOOP 820
1501 ROYAL PKY
NWQ 14401 FAA BLVD 5251 F FRYE RD & 4000 S VALLEY VIEW LN HIGHWAY 157 O 2909 W OAKDALE RD
2400 GREAT SOUTHWEST PKY 850 RAILHEAD RD 2300 MEACHAM BLVD
1050 AVENUE K E 1308 E CORPORATE DR
5920, 5940 & 5960 LOWER BIRDVILLE RD
744 REFU 2915 E DIVISION ST
804-812 W WEATHERFORD ST
2525 E ABRAM ST
WJ 2909 E ARKANSAS LN
FIRST PARK 121
SIZE: 345,000 square feet LOCATION: Lewisville DEVELOPER: First Park Industrial Realty Trust DETAILS: The first phase of this project consists of two buildings. The buildings will have 219,808 square feet and 125,267 square feet, respectively. The First Park 121 development will be able to accommodate four buildings totaling up to 727,000 square feet. Alliance Architects will be the architect for the project. Arch-Con Construction is the general contractor.
1450 MARKUM RANCH RD
5054 VESTA 4908 SOUTH FWY 4900 FARLEY RD KATENBRUN RD 5528 MARIE JONES RD
● ANNOUNCED ● UNDER CONSTRUCTION
8200 SOUTH FREEWAY 9600 TECHNOLOGY BLVD
2911 S GRE SOUTHWES NWC I-20 & HWY 360
4940 DAVID STRICKLAND RD 7605 OAK GROVE
4551 NEW YORK AVE
8600 WILL ROGERS BLVD 425 W EVERMAN PKY
7901 VALCASI DR
350 GARDEN ACRES DR 4293 E FM 1187
FM HWY 1187 BUILD-TO-SUIT WISTERIA ST
MAP COURTESY OF TRANSWESTERN DATA SOURCE: REAL ESTATE REVIEW RESEARCH/ DALLAS REGIONAL CHAMBER / VARIOUS REAL ESTATE FIRMS
ADVERSARY CENTER FOR EXCELLENCE
1 ENDEAVOR RD
SIZE: 75,000 square feet plus LOCATION: Fort Worth Alliance Airport DETAILS: Airborne Tactical Advantage Co. broke ground on its new facility that will include a 75,000-square-foot hangar that eventually will employ 200 people. The company bought 63 F-1 Mirage aircraft to be used for military pilot training.
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STATE HWY 12 & FREEPORT P
0 US Y 377 S
MCKINNEY FIVE INDUSTRIAL
I-75 & WILMETH RD 1581 CORPORATE DR 15815 EXECUTIVE DR
1650 FM 546
ALLIANCE NORTHPORT 1
SIZE: 340,000 square feet LOCATION: Allen DEVELOPER: CyrusOne DETAILS: The Dallas-based data center REIT is building a three-phase campus in Allen that will bring the companyâ&#x20AC;&#x2122;s total Texas footprint to more than 1.7 million square feet. Phase 1 will be a 340,000-square-foot facility. Together, the three data centers will have 100 megawatts of power available.
900 E UNIVERSITY DR
ALLEN COMMERCE PKY
2 2150 MIDWAY RD
CORE 5 BUSINESS CENTER
LLEY PKY 2930 TELECOM PKY
301 VISTA RIDGE MALL DR 4398 AIRBORN DR
1702 W CAMPBELL RD
121 PKY 1010 LUNA RD
1950 W DIPLOMAT DR
TBD CORPORATE CROSSING
13330 SENLAC DR
1200 S JUPITER RD
11090 N STEMMONS FWY
2040 KRISTY LN
1601 S SHILOH RD
1200 S JUPITER RD
13435 JUPITER RD
EY VIEW LN & RENTAL C
0 MARKET ST
9749 CLIFFORD DR
Q CONFLANS RD & HWY 161 FRYE RD
949 W OAKDALE RD
S BUCKNER BLVD 120 CLAY RD
E WILDLIFE BLVD 1401 & 1501 CHALK HILL RD
4025 E I-30
3301 INNOVATIVE WAY
1301 CHALK HILL RD
4000 E SCYENE RD
3584 MOUNTAIN CREEK PKY EAT ST PKY
SIZE: 500,000 square feet LOCATION: AllianceTexas DEVELOPER: Hillwood DETAILS: The Northport development is in Northlake as part of a 260-acre sector of AllianceTexas. RGA Architects designed Alliance Northport 1. Completion is expected in March.
1508 HAYMARKET RD I-20 HWY
4104 DUNCANVILLE RD
E INTERSTATE 35 BONNIE VIEW @ INTERSTATE 20 ROAD & TELEPH 8701 AUTOBAHN DR DANIELDALE ROAD 501 W DANIELDALE RD
E CLEVELAND RD
201 EZELL ST 917 E CENTRE PARK BLVD
3401 N DALLAS AVE
2810 DANIELDALE RD
SWC LANCASTER HUTCHINS & RD
1610 N GOODE RD SUNRIDGE BLVD 6300 S I-45
MILLERS FERRY RD & LAVEND
110 BOWIE DR
ALLIANCE CENTER NORTH 3
SIZE: 782,000 square feet LOCATION: AllianceTexas DEVELOPER: Hillwood DETAILS: This 782,000 square-foot-industrial building is expected to be completed in March. It will feature cross-dock configurations and 36-foot clear heights. The Alliance Center North 3 project was designed by GDA Architects.
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 2 1
PALLADIUM DENTON DISCOVERY PARK
THE CRANE REPORT:
THE VILLAGE AT RAYZOR RANCH I
THE MAJESTIC ON MCKINNEY 404 INDUSTRIAL PARK
ANNOUNCED + UNDER CONSTRUCTION
ANNOUNCED DEVELOPMENTS 1
HILLSTONE RIVER WALK
● ANNOUNCED ● UNDER CONSTRUCTION
ELAN FLOWER MOUND
SIZE: 344 luxury units LOCATION: Victory Park in Dallas DEVELOPER: Hines DETAILS: The 39-story apartment tower across the street from the American Airlines Arena and next to the W Hotel on Olive Street is one of the last vacant tracts in the 75-acre Victory Park development. It will be a nearly 500,000-square-foot high-rise.
JEFFERSON SILVERLAKE ENCLAVE AT THE PARK JUNCTION CROSSING ARCOS AT PRESIDIO TRINITY UNION
TACARA VILLAGE THE LANDING AT CROSS CREEK
THE MILLENNIUM AT HOMETOWN
THE FLATS AT 901
GRAND ON BEACH THE KELLEY AT SAMUELS AVENUE ENDEAVOR LEFT BANK
THE UNION AT RIVER EAST I RIVERWALK 311 NICHOLS STREET MAGNOLIA
ELAN CROCKETT ROW
UNITS: 330 units LOCATION: Dallas DEVELOPER: Convexity Properties DETAILS: Building permits totaling $84 million have been filed for this mixed-use project near Mockingbird Station’s DART rail stop that will feature 330 apartment units, an 8-story Twin Sixties office tower, and a Magnolia Hotel. The general contractor is Irving-based Archer Western Construction.
DATA SOURCE: AXIOMETRICS, A REALPAGE COMPANY
SIENNA HILLS PALLADIUM
RIVERSIDE VILLAS RIVERSIDE PLACE
MAGNOLIA ON STANLEY THE QUADRANGLES ON TWENTY
AURA 3SIXTY II
MAP COURTESY OF REALPAGE MANSFIELD GARDEN AUBERGE OF BURLESON
THE JULIAN AT SOUTH POINTE I
UNDER CONSTRUCTION 3
SIZE: 416 units LOCATION: Farmers Branch DEVELOPER: JPI DETAILS: This is the second phase of the Jefferson Mercer community that was built in 2017. It is being built south of LBJ Freeway near Luna Road and is near a 30acre lake with two miles of trails and green space.
2 2 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
THE LANDING AT LITTLE ELM
WEST RIDGE VILLAS SATORI FRISCO I
EMERSON COURT AT FRISCO MARKET CENTER II
FORD AT LAKE VIEW
THE ADLEY AT SPRINGS AT CRAIG RANCH MCKINNEY
CANTERRA THE CARMICHAEL ALTA FRISCO SQUARE
ALAQUA AT FRISCO TOWER BAY LOFTS
EDISON AT FRISCO
SKYHOUSE FRISCO STATION DOMAIN AT THE GATE CENTRAL PARK AT CRAIG RANCH I
THE REFLECTION AT MONTGOMERY RIDGE BREEZEWAY FARMS I
2570 LAKE RIDGE ROAD
Situated for business.
CITRON ALLEN STATION
THE KINCAID AT LEGACY
MORADA PLANO HEBRON 121 STATION V
SLOANE STREET TRINITY MILLS PLACE
SWITCHYARD OLYMPUS ADDISON THE SOUND ON MAIN GROVE WHARF & BLEECKER BRICKYARD AT MERCER PARK II THE TOWERS AT MERCER CROSSING
GABLES WATER STREET
THE MANSIONS AT BAYSIDE HARPERS BAY AT THE SOUND
JEFFERSON WEST LOVE II
MAGNOLIA ON POLLARD
MAIN SHOREVIEW STREET VILLAGE THE ASH AT THE BRANCH ALEXAN LOWER GREENVILLE NOVE AT KNOX 4600 ROSS AVENUE ENCORE SWISS AVENUE THE GABRIELLA NOVEL DEEP ELLUM
AMBASSADOR NOVEL BISHOP ARTS
VILLA RITAGE PRAIRIE GATE
WINDING CREEK T THE PRESERVE
CLARK RIDGE CANYON
ASPIRE AT PRESTON TRAIL
PALLADIUM GLENN HEIGHTS
JEFFERSON ALPHA WEST
ALEXAN MAPLE ALEXAN KATY TRAIL MODERA HOWELL CYPRESS AT TRINITY GROVES II
HARMONY HILL II
DOMAIN AT THE ONE FORTY
ABLON AT GALLERIA MUSE
MANSIONS AT SPRING CREEK
NORTHSIDE AT THE WOODLANDS
MIDWAY URBAN JEFFERSON VILLAGE MERCER CROSSING I
LAKESIDE LOFTS JEFFERSON EASTSHORE
HARBOR URBAN CENTER THE TOWERS AT BAYSIDE
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Thirty minutes north of Dallas and conveniently located at the crossroads of three major highways, McKinney is ready for business. Direct access to domestic and world markets, the newly widened U.S. 75 corridor, McKinney National Airport and a nationally acclaimed quality of life are just a few reasons why companies ﬁnd success in McKinney. Discover how McKinney can be the gateway to your business future.
SIZE: 250 units LOCATION: Sunnyvale DEVELOPER: Millennium Hotels and Resorts DETAILS: Work is underway on a new hotel and residential project in Sunnyvale that will feature cutting-edge 5G technology and artificial intelligence within its units. The development will feature 250 apartments, a 263-room hotel, 4,300 square feet of outdoor space, and 9,100 square feet of public spaces. It will be at 1250 Lakeside Drive, and it’s the first M Social in North America.
McKINNEY ECONOMIC DEVELOPMENT C O R P O R AT I O N McKINNEYEDC.COM INFO@McKINNEYEDC.COM 972-547-7651 D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 2 3
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ALTAIR GLOBAL IS MOVING ITS HEADQUARTERS TO HALL PARK IN FRISCO.
PHOTO: HALL GROUP
Leasing in the office, industrial, and retail sectors continued to show strength heading into the fourth quarter, both in size of the leases and the names signing them. Developers are building new and renovated spaces that offer plenty of perks for prospective tenants. Companies continue to look for spaces that offer an inviting blend of location, amentities, and price. “The real test is how you feel in it,” Jo Heinz says. Maps were provided by CBRE. BY LANCE MURRAY
ON-THE-GRO U N D I N S I G H TS
JLL Senior Vice President, Office Tenant Representation
“The biggest trend is the need to create an engaging workplace experience. It’s about implementing a workplace solution with the right blend of amenities, technology, and well-being that allows flexibility for all employees. This allows companies to maximize the full potential of their workforce.”
Principal and Studio Leader at DLR Group|Staffelbach
“The biggest design trend in office space is creating flexible, more connected, and more vibrant spaces. The real test of a space is how you feel in it. Companies are focusing on making spaces feel great for the occupants and increasing connections to amenities. The culture of a company is being conveyed throughout the space with a focus on connection and collaboration. The space now serves as a recruiting and retention tool.”
President, Texas-Oklahoma Division, CBRE
“As supply chains become more sophisticated and occupiers become increasingly agile, industrial developers and owners are responding with buildings customized to accommodate current and future occupier needs, including advances to large scale spec distribution buildings to 40-foot clear heights. DFW will continue to benefit from technological advances in supply chains and warehouses, and the resulting consolidation into superregional distribution centers.”
CHARLES J. REAGAN
President, Alliance Architects
“On the speculative side, a shortage of viable large sites in the DFW area is stymying financial backing willing to pursue projects. The project mix continues to be speculative buildings in the 500,000- to 750,000- square-foot range with an increase in smaller speculative projects and build to suits for individual companies.”
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 2 5
S SCORECARD 1
4119,855 SF 19,855 69,624 SF 69,624 216,000 SF 216,000 535,731 SF 535,731 965,813 SF
MAP COURTESY OF CBRE RESEARCH
LARGEST OFFICE LEASES
SIZE: 64,949 square feet LOCATION: Hall Park, 3201 Dallas Parkway in Frisco TENANT REPS: Randy Cooper, Maureen Kelly Cooper, Dean Collins, and Emily Hoffman DETAILS: The global provider of relocation solutions is moving its headquarters from Plano to Craig Hallâ&#x20AC;&#x2122;s Frisco development, Hall Park, next fall.
BERRY APPLEMAN & LEIDEN
SIZE: 61,380 square feet LOCATION: 2400 N. Glenville in Richardson LEASING AGENTS: Trey Smith and Clint Madison with Cushman & Wakefield DETAILS: The law firm has taken 61,380 square feet of office space at the Richardson location.
SIZE: 58,414 square feet LOCATION: Sylvania Industrial Park LEASING AGENT: Todd Hawpe of Transwestern DETAILS: The energy solutions company signed for the space at 3201 N. Sylvania Ave. in Fort Worth.
2 6 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
AETHON ENERGY OPERATING
SIZE: 47,679 square feet LOCATION: Park Central-Lakeside Square TENANT REPS: Melanie Hughes, Richmond Collinsworth, and Bret Cooper of Bradford Commercial Real Estate Services LEASING AGENTS: Russell Trenary of Trenary & Associates Inc. DETAILS: The lease is at 12377 Merit Drive in Dallas.
SIZE: 49,809 square feet LOCATION: Harwood No. 10 at 2850 North Harwood Street in Dallas TENANT REPS: David Wetherington of Colliers International DETAIL: The Dallasbased data center REIT is relocating its headquarters to the office building in the Harwood District of Dallas.
41 63,000 SF 63,000 227,924 SF
227,924 555,321 SF 555,321 1,500,000 SF 1,500,000 6,054,840 SF
MAP COURTESY OF CBRE RESEARCH
LARGEST INDUSTRIAL LEASES
SIZE: 899,105 square feet LOCATION: 2581 Golden Triangle Blvd. #100 & 200 TENANT REPS: Allen Gump, Allyson Yost, John Kuiper with Colliers International DETAILS: The Atlanta-based engineering company is leasing a massive warehouse at Synergy Crossing near the AllianceTexas development and will be moving into its new digs in the summer of 2019.
SIZE: 416,891 square feet LOCATION: 1200 W. Wintergreen Road in Hutchins TENANT REPS: Mark Collins, Dean Collins, and Adam Campbell of Cushman & Wakefield LEASING AGENT: Matt Elliott with NAI Robert Lynn Co. DETAILS: The company will use the center to service its customers all across the South. MARK COLLINS
ADONIS AUTO GROUP
SIZE: 147,750 square feet LOCATION: 1709 S. I-45 in Hutchins LEASING AGENTS: Jay Lucas and Jean Russo with Cushman & Wakefield DETAILS: American Standard is a manufacturer of plumbing fixtures, sold under the American Standard, Crane, Fiat, Sanymetal, and Showerite names.
SIZE: 69,000 square feet LOCATION: 2755-2975 Miller Park North in Garland TENANT REPS: Josh Barnes and Ben Wallace with Holt Lunsford Commercial LEASING AGENT: Nathan Lawrence with CBRE DETAILS: The company specializes in packaging solutions for the branded and health care markets.
SIZE: 68,314 square feet LOCATION: 1908 110th Street in Grand Prairie TENANT REPS: Corby Hodgkiss with Mercer Co. DETAILS: Adonis Auto Group is a pre-owned auto dealership in Dallas that serves Arlington, Grand Prairie, Pantego, Irving, and the surrounding areas.
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 2 7
PANEL DISCUSSION DISCUSSION P PPANEL
CAPITAL MARKET MATTERS:
Dallas-Fort Worthâ&#x20AC;&#x2122;s real estate continues to draw interest from the capital markets, and industry experts look at the present and the future for North Texas.
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
P PANEL DISCUSSION The Real Estate Council brought together a panel of experts at The Belo Mansion to offer the latest insights and 2019 projections in office, industrial, multifamily, and retail. The panel—Alan Shor, Michele Wheeler, Sue Ansel, and Creighton Stark—was moderated by Greg Ross of Grant Thornton. HFF’s Mark Gibson presented the keynote address at the event. ROSS: Creighton, we’ll kick it off with you. Give us an update on the capital markets. From your perspective at Colliers, what are you seeing—and what are you expecting to see—from interest rates, capital market structure, and the investment community? STARK: The bottom line is, it appears as though all the fundamentals are in check. It really doesn’t seem like there’s any one specific sector that’s overseeded. Right now, in our sector in the industry, lending has grown, but leverage borrowers are under control. Both borrowers and lenders have been disciplined about their underwriting practices. It appears as though there’s not really a whole lot of high-octane debt out there that makes the cap tax seem a little bit lopsided. There continues to be record levels of debt and equity available, although interest rates have inched up quite a bit. As far as the sponsorship and property, capital is progressively targeting opportunities. You look at where we are and all that we have going on here in Dallas-Fort Worth and you have to ask, “Why not?” This is a tremendous place to be: great for dynamics, properties are at historically high levels as far as values go—and continue to be. Rental rate growth year over year continues to exceed expectations. We’ve got steady job growth, we’ve got favorable Texas business climate, we’ve got a highly talented labor pool, and we’ve got significant industry growth. DFW continues to be ranked as one of the top three places for investors to invest in. We’re seeing a flood of new capital sources that come into the region from every level. Hertz Investment Group came in and bought the Pier 1 building in Fort Worth. You [can] look at where we’re at now on the market for 465 Independence at Independence and George Bush: We’ve seen buyers coming in from every area of the country, every area of North America, looking for an opportunistic-type return that they can achieve on a building of that nature. Currently, overall dynamics in place have allowed for a highly desirable investment arena. There are some potential elements that I think we have to be cognizant of. A few things stick out, and there is a corporate debt bubble that we have to be aware of. Corporations have taken advantage of really low levels of debt, and they are 50 percent higher leveraged than they were in the last
MEET THE EXPERTS MODERATOR GREG ROSS
GRANT THORNTON Greg Ross is national managing partner at Grant Thornton. He has more than 25 years of experience in the real estate, hospitality, and restaurant industry sectors. He provides accounting, auditing, and consulting services with those industry groups.
PANELISTS SUE ANSEL
GABLES RESIDENTIAL Sue Ansel is chief executive officer of Gables Residential, where she has worked for more than 25 years. She has held positions in acquisitions, development, and operations, and has led major company initiatives.
THE RETAIL CONNECTION Alan Shor is co-founder and president of The Retail Connection. He’s involved in The Retail Connection’s strategic direction, oversees the day-to-day operations of the company, and leads its investment and merchant banking business.
MICHELE WHEELER JACKSON-SHAW
Michele Wheeler is president and chief operating officer of Jackson-Shaw, which she joined in 2005. Wheeler has guided Jackson-Shaw through major property acquisitions and dispositions, many property refinances, and the closing of new and permanent construction loans.
COLLIERS INTERNATIONAL Creighton Stark in executive vice president of Colliers International, and he specializes in investment sales and recapitalization of office assets for institutional, private, and financial organizaitons. Stark moved his practice to Colliers International in 2010.
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
P PANEL DISCUSSION
downturn. That’s something that we really need to think about. A weaker global climate is kind of what we’refacing currently, as well. You can look at what’s going on in China, where they’re trying to get control of their debt. You look at Brexit, and what’s going on there. You look at the immigration movements in Europe, too, which are affecting the global economy drastically. Rising oil prices and auto production are something else: With rising oil prices, gas gets more expensive, and with rising interest rates, it’s more costly to buy a car. So, it affects a lot of us. The tariffs are also very important, but, with a lot of the things that are going on, it just seems more costly for goods. The thing I want to touch on the most, which I know is in the back of everyone’s minds, is rising interest rates. The 10-year Treasury note climbed to 3.2 percent in early October, which is the highest level since May 2011. The federal bonds rate is up 2 percent, and the Federal Reserve is expected to raise 25 basis points over the next 60 days. Those are some things we really need to think about. It’s real, but it still doesn’t seem to affect a lot of new capital. The yield curve is also something we really need to consider. The short-term interest rate could increase ... this typically is a passage toward a recession. If the Fed continues to raise interest rates and the growth of the economy falters, the yield curve could invert—and we know what happens with an inverted yield curve. But, overall, I think everything currently looks good. The median GDP is forecasted at 2.9 percent
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in 2018, and 2.7 percent in 2019. So we’re only just a few basis points off there. With growth softly nearing 3 percent and unemployment rate at 3.7 percent— which is the lowest since 1969—I think it’s hard to say if is any evidence for the economy to do anything. Any single headwind that’s going to come could change our current environment.
ROSS: Michele, I know Jackson-Shaw is invested in many different sectors of real estate. I want to talk a little bit about where you’re at, what you’re seeing and what your investments are. WHEELER: We’ve done a lot in the industrial space in the last several years. As most people have alluded to, it’s been one of the product types that’s been in strong favor. It’s a product type that we are continuing to focus on. The struggle that we’re having is available land and also a run on construction price. So, our return on costs have compressed. But, at the same time, capital is out and available for that asset price. Given that it’s a low capital-intensive product type, it’s been readily available. What we are trying to do is really look at how we mitigate our risks given where we are at. What happens if, all of a sudden, there’s an abundant supply? We’ve seen a number of developers who have entered into this space that haven’t done industrial before. You’re seeing that across the U.S., because it’s a product type that’s in favor. In terms of additional products, we are doing some limited-service hospitality, but we’re also being very mindful of making sure that we stay in that space. We have historically done full service in the past, but again, when we were this late into the cycle, and given that we also were experiencing labor shortages, we are trying to be really disciplined—and that’s generally not a word you hear from a developer. But, we are having to be really mindful about how we structure things: Who do we structure things with in terms of partners? How do we think about lenders? What are we doing on leverage? How are we hedging our main construction projects to be able to weather some disruptions? And then, we are spending a lot of time on the construction cost side. There isn’t much we can do about that right now in terms of shortage of labor and pricing. Primarily, our focus has been on industrial—really focused on a smaller level.
ROSS: Sue, affordability keeps coming up in every marketplace, but it’s critical to [the] economy, and it’s critical to urban structuring. Talk a
P PANEL DISCUSSION
YOU CAN’T JUST BE A PUREPLAYING E-COMMERCE RETAILER, AND YOU CAN’T JUST BE A PURE-PLAY BRICK-AND-MORTAR RETAILER. YOU HAVE TO DO BOTH REALLY WELL.
PHOTO: MICHAEL SAMPLES
little bit about affordability, and about making sure that’s something to be addressed by our developers and that we are taking care of our communities. ANSEL: It’s an important question. From a multifamily standpoint, if you look at the underlying fundamentals—the number of household formations compared to the amount of multifamily or single-family housing being built—we’re totally underdeveloped. Homes are a need, as opposed to a want. But, where the development is headed has been primarily in the “A” space and the luxury space, because that’s where we all think we can afford to build. We’ve talked about rising construction prices and rising land prices. It’s very difficult to build a new apartment or affordable multifamily home. So, we really are at a fundamental divide within the multifamily industry. There is a lot of supply. It’s taking its swerve in the luxury space. But we are underservicing the affordable market housing supply or demand. So, what do we do about it? You’re seeing it come across in different ways. There’s a regulation that’s going before California in two weeks called CostaHawkins. Costa-Hawkins is a law that was put in place in the early ’80s in California that said no city or locality can have an ordinance that has a home rent control program. There was rent control that was grandfathered. There’s no new rent control allowed, and they are trying to rescind that law, and allow cities and states to have their own laws and regulations about what rent control to put in place. That’s probably the worst thing you can do for affordable housing, because what it will do is shut it down—and make it even more expensive to deliver any supply. What you really need is more supply to address the issue. I think as an industry, it’s really incumbent upon us to come together to try to find a solution. There’s lots of ways that we can address it. Some of them are going to be public/private partnerships. There’s a role for the federal government to play in this space, and I think as multifamily developers and owners, we need to come together to try to lead into the process. If we don’t, the solution will be imposed on us, which will be difficult. I had the opportunity about three weeks ago to testify before Congress on this particular topic. There was a study that was done by the NAHB and the NMHC— together they funded the study—on the cost of regulation. What you may not know is that the cost of regulation is about 30 percent of new development. Regulations
— ALAN SHOR THE RETAIL CONNECTION
are important. We need to stay within the guidelines, but there are unintended consequences of layer upon layer upon layer of regulation. [We’ll need] a multipronged attack to address this issue, but it’s a critical issue. I would encourage everybody who’s in this industry to start thinking about what we can do to try to address it because there’s not a silver bullet that solves the problem.
ROSS: Alan, there’s a lot going on in the marketplace. Developing was a lot different two years ago than it is today. You’re developing, and you’re investing. What does that new development and investment look like now, compared to five or 10 years ago? SHOR: Retail, obviously, has been in a very dynamic place. In the last few years, we’ve seen a lot of change. There are those that think retail is in a real down cycle—the apocalypse is here— with all of the retail bankruptcies. But, on the other hand, you see a lot of growth, from both traditional retailers and new digital retailers that are opening up physical stores, as well as in the medical retail space, and the restaurant space. If you look at the numbers—and get past the bankruptcies of Sears and Toys “R” Us and others—the growth is dramatic in places like value retail and entertainment. Medical retail is growing tremendously. In our first 13 years in business, we built large centers and had as our anchors the two boxes that provided great credit, great stability, and were growing: the Bed, Bath and Beyonds and
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P PANEL DISCUSSION
ROSS: Sue, back to you. From a technology perspective what do you see, and what do you expect? ANSEL: You’re seeing it in everything we do, every walk of life: Technology is changing what we do. I think it’s going to fundamentally change the real estate industry. You know, if we built a parking garage within your communities today, it’s primarily regulated by the city, saying how many spaces you need. If we built a project that had 1.6 spaces per unit, I used to think we would be totally under parking, and have a parking challenge. Well, the world has changed. Now there’s Uber, and there’s Lyft, and there are lots of other transportation choices today. Now if we have 1.6 spaces, we are totally over parked. So, from a technology standpoint, that’s one thing that’s affecting us and impacting our costs. If you think about everything that’s happening at the property level or the management level, think about blockchain technology. You hear about Bitcoin. We are not accepting Bitcoin. I’m not sure we ever will, but it’s fundamentally changing the way we do business. If you think about how you will design a community, there are places where people are using 3D printers to design parts of their building. When we’re designing a product today, we’re trying to think about how we can take common space and make it do one thing in the morning, one thing in the afternoon, and one thing in the
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PHOTO: MICHAEL SAMPLES
the Dick’s. That’s really changed. We’re seeing those retailers focused on cleaning and leaning their portfolios, and slowing their growth. What’s replacing them, in part, are the entertainment concepts, the restaurant concepts, and the medical retail. So, we’re changing with that. We’re pivoting our business to where we’re building something today, or we’re buying and redeveloping something today—and it’s going to probably be in the urban markets. A great example: We just bought the Knox District with our partners. That’s going to be a longer-term project, and it will be mixed use with some additional multifamily and some office. The base customer is looking for an experience: We’re going to have green space. We’re going to have pocket parks. We’re going to make it authentic and walkable. I think that’s the difference between building and developing—or redeveloping—something today versus what we would have done five or 10 years ago.
evening. So, it’s hard to imagine all the impact that this technology is going to have on our business. From the multifamily standpoint, where we had amenity wars in the past, I think that the amenity war in the future will be driven by services and the level of services that we can deliver to our residents, which is fundamentally going to be driven by technology.
ROSS: Michele, you indicated labor costs are rising, land costs are rising, and acquisition costs are higher. We talked about how much change there is in the real estate environment from sector to sector. Technology changes, and we’ve got all the disruptors in the marketplace. Being a leader in an organization, how do you manage that? How do you talk with your folks about that? WHEELER: We have very transparent discussions: It’s hard. We look at markets and see where the opportunities are. On our limited-service hospitality space, we’re looking at infill locations where there are barriers to entering in a more longterm issue. On the land side, we’re looking at a longer period of time and a larger assemblage—and how we can put that together so that we can all live through a downturn. … If we can find some great opportunities and be in a position to be a first mover, those are things that we’re thinking about. We’re only stretching or leaning in right now on areas where there are rewards for taking the risks.
ROSS: Do you see more partnering? WHEELER: On the industrial side, we’ve got great partners. There’s also a lot of what I would say is the capitalization strategy specifically on that side. You see people wanting to have longer-term deals, because they’re having a very different time placing capital. So, they’re coming up and being a little bit more creative. If they think there’s an industrial park that has multi-phase potential, they’ll take some entitlement risk with you. Or, they’ll look at it and say, “Hey, let’s see how we can capitalize this to have the ability to have multiple places to be able to put it into production.” Capital and structuring is becoming increasingly more important, given where we are right now.
P PANEL DISCUSSION
WE’VE GOT CURRENT FUNDAMENTALS IN PLACE THAT ARE JUST OUTRIGHT DYNAMIC. WE’VE GOT INVESTORS THAT WANT TO BE HERE.
— CREIGHTON STARK COLLIERS INTERNATIONAL PHOTO: MICHAEL SAMPLES
ROSS: Alan, about e-commerce and the on impact on retail: We see it everywhere—in the Amazon fulfillment centers popping up all over the place and technology. What do you see from a retail perspective? When your customer comes to you, what are they coming for? What services are they buying and what type of help do they need now due to the change in the marketplace? SHOR: I start with the thought that Amazon will be the largest brick-and-mortar retailer in the world one day, and there is a reason for that. You can’t just be a pure-playing e-commerce retailer, and you can’t just be a pure-play brick-andmortar retailer. You have to do both really well. That’s what today’s customer wants. You can talk about cycles. I tell our guys we are not in a down retail cycle. We’re in what I think is a very long-term retail transition, and we have to think like that. Our brick-and-mortar retailers, they want to design their stores differently. They want less space. They want to have distribution function. They want to have an area where the customer can order online and bring it back to the store. If you do that really well, the statistics show you’ll have a 27 percent increase in revenue. [Customers] come back, and they exchange, and that’s where we are. There’s a reason why the e-commerce retailers are opening up stores, and it’s happening well beyond Amazon. Walmart, which I think is going to be the competitor to Amazon in the e-commerce space, has decided it can’t do what Amazon has done identically. They’re going to do it through it acquisition, and they acquired five or six different retailers, and they are opening up stores. They’ve got, as I understand it, targets for 10 or 12 more in the next 18 months. They want to build a platform to support their e-commerce business, and they are going to open up stores. It’s going to be complimentary. They’re using their Walmart stores almost as distribution centers, the way Amazon has used Whole Foods. There is a reason why Amazon bought Whole Foods, opening up convenience stores, opening up book stores—and they are not through. The bottom line with us is, when we either are building something, redeveloping something, or just representing our clients—and we’ve started to represent a number of the digital retailers, as well—is that we have to help them do both well. I think that’s the future of retail.
ROSS: Bottom line is, in Washington a lot is happening. There are changes every day in the market. In terms of sales and transaction activity, what do we expect to see? How do you think that will impact us? And in the real estate sector, how might our outlook change over the next six months versus the next couple of years? STARK: Just based on current fundamentals that we have in place here in Dallas, it’s not going to change a whole lot. We’ve got a very mature office market here. We’ve got current fundamentals in place that are just outright dynamic. We’ve got investors that want to be here. We’ve got all different levels of a capital stack that want to invest in our marketplace. Historically, we haven’t seen anything like this, ever, and we’re going to continue to see it strong, regardless of what happens with interest rates or who is in charge of the government. It’s purely an investment play to these guys. We’re still one of the strongest marketplaces in which to invest your capital, and we have a tremendous opportunity here. We are stewards of the industry. We have to be responsible. We have to be disciplined, which we’ve got a history of not being, and that’s has prevented a lot of groups from coming back into our market because of what happened to them 20 or 30 years ago. So, if we continue to do what we’re doing today—and have been doing for the last 10 years—I don’t see any end in sight. I don’t see a hiccup along the way.
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P PANEL DISCUSSION SUE ANSEL
ROSS: Sue, tell us a little bit about your culture and your organization, and how you think that drives your success.
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PHOTO: MICHAEL SAMPLES
ANSEL: That’s a topic that we’re passionate about at Gables, and I love to talk about it. Fundamentally, I think we focus on four things. A lot of people talk about those same things, but it’s a part of the hearts and souls of many Gables associates. The first thing we focus on is the associates. We want to make sure that they have an unparalleled employment experience. We want to be the employer of choice. I’m going to digress for a minute: One of the questions you asked me about was government regulation, and how it’s going to change. One of the things that’s impacted this organization and this industry is employment. It’s difficult to find associates, and our development sides are having a difficult time finding labor. We need to come up with a sensible immigration policy within the United States to provide labor for all of things that we do. As a result of that, we are making certain that our associates have a great experience inside the
company. We want to train and retain those. Every 10 years, they’re required to take a six-week paid sabbatical, and then every five years thereafter. That’s a huge benefit, we think, to grow and come back fresh-minded—ready and eager to work. We look for high-potential associates to provide training and leadership skills within the company. The first step is [providing] an unparalleled employment experience. The second is really focusing on the best for our residents: They are the reason we’re in business. We can build the best communities in the best locations,
P PANEL DISCUSSION GREG ROSS
PHOTO: MICHAEL SAMPLES
but if we’re not taking care of those residents and delivering to their needs, they’re going to go somewhere else. We were talking about amenities earlier. We ask, what is it that our residents really need? We’re seeing it in all of our industries. Alan [Shor] was talking about how the world has shifted: What I think is most important is that last mile of delivery. You hear about it from retail, you hear about it from industrial, you hear about it from technology. We are really at that last mile of delivery for our residents. So, we ask, how do
we deliver that service and those amenities they want? Focusing on our investor, we want to make sure it’s a great investment with a lot of transparency and integrity. Probably the most important thing within the company is giving back to the community. We want contribute to the community that gives so much to us. One of the things that we do is close our operations for a day in each city in which we operate and we partner with a local organization. Everybody gives their time and talent that day in giving back to the community. That’s my favorite day of the year. We’re so fortunate to be able to be in the position that we are. We have good jobs. We’re able to take care of our families. Not everybody is in that same position. Being able to give back those things means so much to us. To me, it’s critical. Those are the things that really drive our culture. A good measure of that are the 10-year associates within our organization. We started the company 36 years ago. I’ve been with the firm for 31 years, but I haven’t been in the top 10 of tenure within the organization. People come to
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NEXT YEAR, IT’S GOING TO BE PEOPLE INVESTING IN OPPORTUNITY ZONES. A CRITICAL PIECE IS THE REQUIREMENT FOR THE 10-YEAR HOLD. TO GET THOSE BENEFITS, YOU HAVE TO STAY INVESTED FOR 10 YEARS. — SUE ANSEL GABLES RESIDENTIAL
the organization and stay. The elevator speech is, we try to do the right thing. When you spend more time with the people that you work with than you do with your family and your friends, it’s important that you like or respect the people you work with and that you are like-minded. We’ve been able to create that culture over those 36 years. It’s something that’s difficult to build and easy to lose, so we’re very intentional on trying to maintain that.
ROSS: Any additional thoughts before we close? ANSEL: We talked about debt funds today. Next year, it’s going to be people investing in opportunity zones. A critical piece is the requirement for the 10-year hold. To get those benefits, you have to stay invested for 10 years. WHEELER: For people who have a long-term view, [that’s] going to be very advantageous.
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A lot of people in the institutional space that we’re seeing have a longer-term yield requirement to their investors. We’re looking at a project in Las Vegas that’s within the opportunity zone, and we had a presentation in Boston in the last couple of weeks. The advantages and the yield-return differences that are available are interesting if you’re able to take advantage of those opportunity zones. I think you are going to see a lot more capital and a lot more funds being created to take advantage of that tax structure. For example, there was an illustration that showed that if you had an industrial building, an asset within an opportunity zone that’s been earning a 6 percent return, and you were able to keep that same investment over the entire 10-year holding period, you’d have 300 basis points at the end of that period. I think it’s a pretty significant tax strategy for people who have a long-term view on holding the assets. SHOR: From a retail perspective, we’re not long-term holders. We’re starting those: That’s part of the nature to have change. We’re early on in how we’re going to do that.
ROSS: From a client perspective, our institutional clients are very interested. They’re calling and looking for partners. They’re longterm holders and are very interested. But again, I think I’ve been on more opportunity zone calls in the last two weeks than anything else. ANSEL: We’re later in the cycles when people are chasing yield. They’re looking for different ways to find yield, and in all of our industries, it’s reflected in the last eight years. You could hit it down the middle of the fairway, and you would be very successful. Strategies are having to change 10 degrees, 20 degrees to the right or left to find that missing example of looking for ways to create that yield. STARK: We see it as a tremendous investment. We have a property for sale in Baton Rouge—a 750,000-square-foot business park—that’s a very opportunistic investment. The level of activity that
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P PANEL DISCUSSION
FROM A PROJECT PERSPECTIVE, LIKE MOST BUSINESSES, WE KEEP OUR HEADS DOWN. WE GET THE PROJECTS DONE THAT WE NEED TO GET DONE. — MICHELLE WHEELER JACKSON-SHAW we’ve received since this property was put into place in an opportunity zone is staggering. It’s all of a sudden becoming a property opportunity.
ROSS: We’ve talked about various activities, your individual companies, and your business plans. What are some of the changes you’ve had to make over the last month or so? When you go to your office today, what are the first couple of things you have to tackle? ANSEL: In the last year, we’re looking at investment opportunities differently. We’re looking for shovel-ready. We’re adding a lot of contingency—much more contingency—in our underwriting. … We’re more conservative on that side. In the last 30 to 60 days to 90 days, the uncertainty that’s created by the potential tariffs is immeasurable. We’re hearing from our subcontractors that there’s a reason for saying this. Those tariffs haven’t taken place yet. So, who knows if it’s really the subcontractors looking for an opportunity to create for themselves?
WHEELER: From a project perspective, like most businesses, we keep our heads down. We get the projects done that we need to get done. It’s business as usual. There haven’t been any major disruptors. … [But] we think about things. We go to panels and discussions like this one. Everyone asks, ‘When’s the ball going to drop?’ But so far, everyone has been very disciplined. The banks have been disciplined, the capital partners have been disciplined, and the developers have been disciplined. Labor and construction costs have also moderated all of that. So, we are still really excited. We’re all very blessed to be in Texas. Look at the number ranks: We’re one of those states that doesn’t have a state income tax, and we’ve really benefited from strong jobs and relocations to our market. We’re excited about what we’re doing right now. The Capital Market panel transcript has been edited for brevity and clarity.
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PHOTO: COMMON DESK
(RIGHT) COMMON DESK FOUNDER NICK CLARK
Coworking grows up No longer considered a fad, the real estate industry embraces coworking as a mainstay in the Dallas-Fort Worth office market BY JEREMIAH JENSEN
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It wasn’t long ago that we were asking ourselves: “Is coworking a fad?” Guess what? It’s not a fad. Over the last few years, coworking has grown up a lot. What was once a fringy experiment in utilizing vacant space has quickly become a mainstay of the office market. According to research from Colliers International and Cushman & Wakefield, Dallas-Fort Worth currently has somewhere between 1 million square feet and 1.3 million square feet of coworking space in play. At the national level, the sector has been growing at a rate of more than 5 million square feet per year for the last three years, and is expected to triple in size in the near future, making up as much as 5 or even 10 percent of the office space in many markets. As of August 2018, Cushman research indicates that coworking accounts for 1 percent of the national office space inventory. With the sector’s performance over the last few years, and the numbers it’s projected to reach in the near future, it is becoming increasingly clear that what we have on our hands is not just a nice amenity, but the office space utilization tool of the future. Trey Bowles, chairman of the board at the Dallas Entrepreneur Center, says the shared-space model might just be the new cubicle. “How long was the cubicle model in? They didn’t do that back in the ‘80s. It really started in the end of the ‘80s and early ‘90s—and really started with the technology companies—but let’s call it 20, 25 years. There’s no reason coworking wouldn’t last that long,” Bowles says. “Everybody thinks coworking is the future. And when I think coworking, I
think shared space type models. I don’t think every company will be in a coworking space, but I think more and more companies think that’s the space solution of the future.” In DFW, coworking is still very young. It’s only been around for about six years. Nick Clark, founder and CEO of Common Desk, was one of the very first people to start a coworking operation in Dallas. He did so in 2012, just as the economy was starting to recover from the Great Recession. Clark, who came from a commercial real estate background, says his friends thought he was off his rocker for betting on a 4,000-squarefoot coworking space in Deep Ellum when there was finally real money to be made in traditional real estate for the first time since the market crashed. “Four thousand square feet in 2012 seemed like a really big bet, and a lot of my broker buddies were looking at me like I’d lost my mind because that was kind of right when the market really turned around and everybody was finally making some money again in commercial real estate,” he says. Fast forward to today, and Clark is now running one of the most successful coworking operations in North Texas. He can be credited with almost single-handedly kicking off the coworking revolution in Dallas-Fort Worth. Over the last few years, Clark has seen his neck of the woods change and fill out with new operators and evolving customer profiles. In the beginning, Clark says he remembers signing creatives up for desks one at a time, incubating the culture most people associate with coworking now. But by 2014 and 2015, Clark’s spaces had become a popular option for small businesses, and the tenant mix began to skew away from
COMMON DESK’S NEW DOWNTOWN LOCATION AT TRAMMELL CROW CENTER
RENDERING: COMMON DESK
PHOTO: VENTURE X
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Coworking spaces around the region
strictly creative users. Now, the story of coworking is one of rapidly accelerating market maturity as a growing number of large companies are snapping up big chunks of space in markets around the nation for a host of reasons, including the dire need for new talent pools, geographic proximity to projects, and the avoidance of costly long-term leases for departments that may be temporary. “That’s what is fueling the incredible growth of coworking,” Clark says. “It’s really just becoming the new way people are wanting to office. The economics around that—of charging a corporation per head instead of per square foot— makes sense, and it’s easier to underwrite,” he says. John Arenas, CEO and founder of Serendipity Labs, whose operation is targeted at this cohort of enterprise clients, points out that in addition to the ease of underwriting, there is a significant accounting benefit for publicly traded companies that is making coworking an ever more popular option for them. Thanks to new regulations from the Financial Accounting Standards Board, as of Jan. 1, 2019 companies will have to disclose their outstanding leases as liabilities on their balance sheets. For large companies entangled in a host of long leases, that can mean reporting a large, ugly number that could hurt stock values. Utilizing coworking (or taking shorter, more flexible leases) goes a long way toward mitigating that risk, and Arenas says that is very attractive to companies. In the last couple of years, forward-thinking developers have realized this changing tide in the office market and have begun to bake coworking space directly into their developments from the get-go. Cawley Partners CEO Bill Cawley is one such developer and a big believer in the power of coworking, saying it boosts the value of office buildings by imbuing them with the secret
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LOCAVORE FORT WORTH
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F FEATURE Legend 1 UNT Collab Lab
2 WeWork Downtown
37 Top Desk
3 WeWork - Uptown
4 Spaces - Uptown
39 Premier - Two Turtle Creek
5 Level Office
6 WeWork - Plano
7 Launchpad City
42 Wax Space
8 WeWork - Shops at Legacy
9 WeWork - Fort Worth 10 Citycentral
13 14 6 8
11 Work Lodge 12 Serendipidity Labs Dallas Hall Arts
13 Common Desk Plano 48
14 Industrious 15 Capital Factory 21
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48 Headspace 49 Ensemble 50 Sumo 51 The District 52 Frontier 54 Kowork 55 Union Worx Coworking
56 Craftwork - Camp Bowie
24 The Dallas Entrepreneur Center (The DEC) 25 Common Desk Deep Ellum 26 Midtown Executive Suites 27 Premier - One Allen Center 28 Goodwork
47 Common Desk Oak Cliff
17 Venture X
23 Foundry ClubDowntown Dallas
38 11 50
46 Addison Treehouse
18 Spaces Southlake
21 City Central
22 Fort Work
43 CoLab 44 Foundry ClubDeep Ellum
16 Serendipidity Labs
20 CENTRL 32
29 Nod Coworking 30 The Mix Coworking & Maker Space 31 Cultivation 32 Revtech 33 Common Desk Fort Worth
57 Collective Office 58 Elevate Dallas 59 Women Veteransâ&#x20AC;&#x2122; Enterprise Center 60 The Kessler Co-Op 61 The Werx In Mckinney 62 Pinn Station 63 Marketing Central 64 Craftwork Magnolia 65 Dallas Cowork 66 Spryrocket 67 The Backlot 68 Cowork Suites 69 Impact House 70 Foundry ClubGrapevine 71 Foundry ClubRichardson
34 25N 35 Foundry ClubMockingbird Station SOURCE: Cushman & Wakefield
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sauce of placemaking. “Coworking creates a better sense of place, and it creates a stickiness for your existing tenants that are going to make the investment more attractive to investors,” he says. “It’s matured to where it’s a value-add for any quality office building. The amenities they provide, etc., have gotten to a level where I think it just makes sense.” Putting his square footage where his mouth is, Cawley is making coworking a big part of his new Tollway development, Fourteen555, and will have Common Desk managing a roughly 28,000-square-foot chunk of the first floor in the project’s Phase 1 office building beginning in April 2019. Coupled with the existing Ascension restaurant in the project’s amenity building, Cawley hopes to activate Fourteen555’s amenities and create the kind of environment tenants are looking for. Cawley says his decision was largely inspired by the successful combination of coworking and coffee at the Centrum in Uptown. The Mudsmith coffee shop and coworking tenants in the building have had a quickening effect on the building, he says, filling the common areas with energy and making the building feel more alive. Cawley is betting that a similar combination will be the recipe for success in activating Fourteen555. “In two years, I’ll let you know if it works,” he says with a laugh. More likely than not, it will. In the space of just a few years, coworking has become one of the hottest place-making tools in the game, garnering major attention from investors, owners, and tenants alike. “Coworking is no longer at an early adopter stage. We’re at sort of mass volume or mass market adoption. Everybody knows about it now,” Bowles says. “The first few years we were doing this, there was a lot of wondering: ‘What’s the future of space, what’s the future of office, what is coworking?’ And all the big real estate firms were asking this. We’re at a point now where they kind of know what they think it is.” For owners, the ability to incubate a potential tenant pipeline in-house, activate expensive amenities and common spaces, and garner higher rents per
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square foot, along with the hip, progressive image tenants and their talent crave, are all reasons coworking continues to gain momentum in the office market. For many of the same reasons, investors have taken notice as the community has begun to get comfortable with underwriting office deals that involve coworking space. Arenas says the fact that Morningstar has issued guidance on underwriting the deals is evidence that coworking is reaching market maturity. The investors have figured out how to deal with coworking, which means that office buildings with coworking space are about to get solidified as a kosher investment avenue. As a result of this increase of comfort with coworking and a better understanding of its benefits and shortcomings, a growing number of developers are creating their own in-house coworking operations, cutting out the WeWorks, Common Desks, and NōDs of the world to tap straight into the demand vein. “You can get a much higher rental rate from a one-, two-, three-man office than you can from a large, full-floor tenant,” Colliers Executive Vice President of Capital Markets Creighton Stark says. But, he warns, it’s not a cut-and-dry cash cow. It’s important to have the right feel to operate a quality coworking space. “If the ownership is just looking at it like a profit center, I think that the coworking environment will suffer, and I don’t think that it will provide the same atmosphere that maybe a small company would want to have,” Stark says. “If they’re a good manager of people, a good manager of tenants, then they’ll do well.” Like everything else that is cool in the world, coworking works best in moderation. A good rule of thumb is to have no more than 10 percent of a building dedicated to coworking. Stark says investors typically view coworking
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“We’re just now seeing coworking in DFW start to explode in the suburbs.” space as riskier than regular office space because of transient tenants and questions surrounding the credit of the young companies that typically populate coworking spaces, so keeping the percentage modest is best. The exception is when a coworking space is in a place where everyone wants to be. Stark says a building in walkable, talent-rich Uptown could support coworking space that takes up as much as 40 percent of the building’s square footage. And though it is true that the buzziest, most successful coworking spots tend to be in the urban areas of Dallas-Fort Worth, it’s becoming increasingly evident that desire for the product exists outside of the urban core. Demand is cropping up everywhere, and coworking’s cup runneth over in a market flush with demand. In 2019 and 2020, Clark predicts that major coworking brands are going to triple down on their Dallas-Fort Worth presence. “DFW is still, if you look at it compared to other major markets in the U.S., underserved when it comes to flexible office, which might sound crazy to some people, but we’re just now seeing coworking in DFW start to explode in the suburbs,” Clark says. “I think you’re going to see 2019 prove to be the year that if you’re a Class A, nice building in Dallas and you have space available, you’re probably going to want to seek out coworking in your building, especially if you’re renovating your building and kind of right-sizing it for the future.” Some questions that remain are how the market will deal with the end of the upcycle, market saturation, and blurring lines between developers and coworking operators as both look to cut a path into the other’s territory. Some say the coworking market will take a major hit in the next downturn; others say it is well positioned to weather economic headwinds. As more developers jump into the coworking space and more coworking operators move into the real estate space, there will be a power struggle for tenants that leads to all kinds of creative one-upmanship—the likes of which we’ve already seen in the office market’s amenities arms race over the last few years. What the subsequent rise in rents does to demand for coworking space—which is already somewhat of an issue—remains to be seen. But whatever happens, rain or shine, the coworking model’s success is real; it has changed the way we view our spaces; and it is here to stay. Like Bowles says, coworking’s strength isn’t a function of its novelty; it is born of the evolution of how we look at office space.
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Offices / Co-working / Meeting Rooms
A ANATOMY OF A DEAL
BY L ANCE MURRAY
CURATING A DESTINATION:
PHOTO: JOSEPH HAUBERT, COURTESY OF PELOTON PHOTO: JOSEPH HAUBERT, COURTESY OF PELOTON
Innovative thinking and design put this new Uptown mixed-use landmark on the map BY PAY TON POT TER
The view from The Union, Uptown Dallas’ newest mixed-use development at 2300 North Field St., offers a look at nearly every notable landmark in Dallas and the surrounding area. On a clear day, the south side of the commercial building shows views of the Dallas County Courthouse, the Perot Museum of Nature and Science, the Dallas Arts District, and downtown, as well as the Margaret Hunt Hill Bridge. A look to the southwest turns up the distant silhouette of AT&T Stadium in Arlington. A glance north highlights Uptown’s landmarks, visible above the treetops.
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But there’s more than meets the eye from The Union’s 22-story office tower. The real marvel may be what sits at ground level—and below. The Union is an 800,000-square-foot mixed-use development containing commercial, residential, and retail space. Beneath the half-acre central green space that gives residents and patrons access to seven restaurants, including a Fox Restaurant Concepts eatery named The Henry, sits a 60,000-square-foot Tom Thumb store, an incoming staple some say has the power to transform and unite Uptown and Downtown. Phil Puckett, vice chairman at CBRE who helped broker Akin Gump’s 75,000-square-foot commercial lease at The Union, said the store was overdue for the area. “What was sorely needed on that west side of Uptown was really great retail. Get ready, because it’s going to be a game changer,” he says. “I’m very confident of that ... they’ve got all the right people, all the right ingredients, and the right location.” HKS is the architecture firm behind The Union and other notable North Texas landmarks such as AT&T Stadium. Mark Buskuhl, HKS’ Principal and Director of Commercial Architecture, says creating projects that center around the human experience is at the core of the company’s contribution to The Union. “The vibrancy of the project itself is one-of-a-kind,” Buskuhl says. “Organized around a plaza and surrounded by retail and food and beverage offerings, the project is an ideal setting to enhance the experience of those walking to the American
A ANATOMY OF A DEAL Airlines Center on game days, and providing key amenities for the tenants and the local community… Ultimately, this project is about people. Creating enhanced human-centered experiences reflects what HKS does best.”
The days of leaving the downtown or Uptown cores to shop for groceries will soon be a thing of the past. The Union’s Tom Thumb store will, in January 2019, be the closest full-service grocery store for residents living anywhere near downtown Dallas. The store will function just like any other Tom Thumb store, offering shoppers standard grocery fare. But it also creates added value for nearby residents and workers at The Union. In keeping with the digital age, the store will offer online ordering and pickup. That means shoppers only need to place an online order and park in the store’s designated zones to have groceries delivered directly to their cars. Kourtny Garrett, president of Downtown Dallas Inc., says bringing more grocery availability to the area meets a long-standing need for residents. “It’s widely known that there’s great demand here for a traditional grocery store format,” she says. “We’ve had bodegas pop up, along with the Farmers Market and some specialty things, but we now have kind of that true grocery store. And I always say that if not for a freeway, it would basically be downtown’s grocery store. So, we’ve got another great option there since it’s just so close.” Peloton Principal John Brownlee says the Tom Thumb was the first lease secured in The Union, a necessity for grocery-anchored developments. “Everybody wants grocery stores, so it’s the anchor… If you have a grocery store, everything else falls in behind,” Brownlee says. “This isn’t a traditional grocery-anchored shopping center where we’re trying to get a dry cleaner and a nail salon and those kinds of things.” Phoenix-based RED Development secured the Tom Thumb lease before Peloton was awarded the project, a fact Brownlee says points to the impending success of the development. “When you throw all The Union’s uses together, it just adds a layer of complexity.
Grocery stores want to make sure what you’re doing in the rest of the complex isn’t going to mess up the grocery store,” he says. “Is it going to be complimentary? Is the tide going to rise for everybody? The answer’s yes, but to show people how that’s gonna work—it’s complicated.” “Grocery stores know that they bring so much value to the community around it,” he continues. “The stores are really careful about where they go, so they drive a hard bargain. But they know they bring a lot of value to the projects, and they ask for a lot. They’re very big investments for the real estate owner, but also for the stores themselves, and they’re very careful, going, ‘is the right spot?’” RED Development Managing Partner Mike Ebert seconds Brownlee’s opinion, explaining that approximately two years of work went into the store’s planning. The Union is designed to help shoppers get “the full benefit of the grocery store without having points of potential conflict with others as a project,” Ebert says. “I think what we ended up doing uniquely well is really separating how people enter the project. One of the things that we are careful with is to make sure that grocery visitors would not be intersecting or colliding with a visitor to the office building or the apartments or the restaurants.” The store’s offerings also include beer on tap, a wine bar, and freshly made food sold in an area with indoor and outdoor seating and ten televisions. Fresh-made meals include grilled burgers, sandwiches, sushi, Pan Asian, pho and poké bowls. Also included are a hot bar and a salad bar, a specialty cheese shop staffed by an in-house cheese specialist, and a bakery with fresh-made breads, cakes, cookies, donuts, and pastries. Passersby can also step just inside the store for a cup of coffee at Starbucks, a visit with a hometown butcher for custom-cut, marinated meats, or fill prescriptions at the pharmacy.
FROM GRAVEL TO RICHES: TIMELINE
When RED Development bought the property in 2012, it was merely a surface-level parking lot serving event-goers at the American Airlines Center. While Ebert knew Uptown was already home to a variety of restaurants, apartments, and office spaces, he felt the area was hungry for specialized amenities. Asked about creating an intentional, well-curated space at The Union, Ebert says, “You’re doing the things that a building in 2018 should
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have. We’re highly energy efficient, we’re LEED Gold here, floor to ceiling glass… And then we have great shared amenities—conference centers, tenant lounge, amenity deck on the eighth floor, a plaza.” Ebert says he and the RED Development team set to work designing a mixed-use building with the help of StreetLights Residential, the developer behind The Union’s “The Christopher.” StreetLights later moved its headquarters to The Union, as well. StreetLights is a Dallas-based residential developer that has created living spaces in some of Dallas’ most notable multifamily residences in recent years—including The Jordan and The Taylor in Uptown and the Case Building in Deep Ellum, as well as other developments nationwide. Tom Bakewell, president of development for Streetlights, oversees the organization’s development team on a national basis. He says the organization had its eye on the property—then a parking lot—for several years before plans for The Union came to fruition. When the ball began rolling on The Union in 2013, StreetLights was along for the ride. “It was just the initial concept of trying to figure out what the site was going to be and what was feasible to put on the site,” Bakewell says. “And I would say that, in large part, probably why RED selected us to work on the project is because StreetLights has a large contingent of architects on staff, and we are a very heavy design-oriented developer.” StreetLights responded to an RFP and was selected by RED to be the residential developer. Bakewell credits the win to StreetLights’ inhouse design team that brought strategy and design to the project even before HKS was chosen as The Union’s architect. “We’ve had the ability to do a lot of the initial concepts and not just think it, but actually do a lot of the initial design in-house to figure out what was feasible or not,” Bakewell says. “I think with as complicated as this project was going to be, RED saw the value of that and thought that we would be a great team player and add value all along the way.” The Union’s retail, residential, and restaurant components have separate entrances on the four corners of the one-block development, a phenomenon made possible by the slope of the land on which The Union was built. “The Tom Thumb corner at Field and Ashland is the perfect location for the grocery store,”
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PHOTO: JOSEPH HAUBERT, COURTESY OF PELOTON
A ANATOMY OF A DEAL
Ebert says. “The fact that Akard Street is 18 feet higher than Field Street, we were able to build a grocery store and kind of bury it into that grade change. The office lobby has its current location at Field and Cedar Springs … it’s a Class AA office lobby and office building.”
StreetLights’ developments all have names like The Kathryn, The James, and The Hamilton. The Christopher, of course, is no exception. StreetLights Residential often gives its buildings meaningful names. In this case, its name was inspired by President of Design Paige Close’s son. The Christopher, which will be move-in ready in January 2019, consists of 309 residential units spread across 23 floors. The makeup of those apartments is 174 one-bedroom units, 95 two-bedroom units, 25 three-bedroom units, and 14 penthouses. The tower sits atop seven levels of parking that fill the space above and below the Tom Thumb store, enough to accommodate residents, office workers, patrons, and visitors to the nearby American Airlines Center. The three levels of above-ground parking are shielded from view by apartments and offices, topped by an eighth-floor amenity deck. The deck, on one side, gives residents access to a swimming pool, covered pavilion, fire pits, and a gym. The adjacent commercial components provide a relaxing outdoor space adorned with foliage, and another covered pavilion. The Energy Star-rated residential building offers tenants unique amenities, including direct access to the Tom Thumb store below and a private bar on the eighth-floor amenity deck, which also provides access to the pool. Bakewell says the goal of the bar is to encourage neighbors to interact and meet one another. But not all residents in The Christopher will be long-term. StreetLights partnered with The Guild, a short-term rental company that places guests—often corporate visitors in Dallas for more than a week—in apartments at The Christopher.
A ANATOMY OF A DEAL While there are often perceived negatives to intermingling guests with residents, Bakewell says The Christopher’s residents need not worry. The Guild’s temporary guests will remain separate from the bulk of the residents, residing in a block of units on levels one through eight, which line the parking garage and overlook The Union’s central green space. “It’s a great way to do a short-term rental and figure out if you like the property or you like the location,” Bakewell says of hopeful residents staying in The Christopher via The Guild. “And the hope is that some of those people will eventually become long-term residents in the tower. So, it’s a little bit of an opportunity to try it short-term before you sign a 12- or 18-month lease.” Guests of The Guild won’t interact with The Christopher’s managing staff, a task handled by Lincoln Property Co. Their units will, instead, be maintained and managed by The Guild. “It’s really almost a separate property, if you will, on how they operate,” Bakewell says. Rental rates will start at $2,270 for one-bedroom units, and exceed $6,875 for three-bedroom units and penthouses.
Peloton is a full-service commercial real estate firm that handles leasing in The Union’s office building. The Union’s commercial tower, a 22-story, 417,000-square-foot structure, boasts floor-to-ceiling windows and destination-dispatch elevators. Building lobby features include round-the-clock security, access to The Union’s central green space, and a yet-to-be-identified restaurant in the upper level of the lobby. Buskuhl says the office building, like the other components of The Union, is designed with the “human experience” in mind. What that means for the development is a lobby that functions as an “alternative work environment spilling out onto the plaza for an outdoor experience,” and office spaces that are split into two distinct offerings. On the lower floors are “boutique” creative office spaces with taller ceilings and connectivity to the plaza. Above those, Bushukl says, is a “more traditional office floor plate, elevated to take advantage of the adjacent downtown views.” Kacie Crowe, a marketing and communications professional at DPR Construction, which built The Union, says the entire development, from the parking garage to the penthouses, was built in adherence to the WELL Building Institute. DPR emphasizes well-being and health in air, water, nourishment, light, fitness, comfort, and mind. “This space, for instance, probably capitalizes on a lot of those different principles that literally make you a healthier human being by being inside of it,” Crowe says. “And, so, that is one avenue that I think takes the LEED and the environmental aspect and the green features one step further.” The office building at The Union, however, throws convention to the wind when it comes to environmental consciousness—even by WELL and LEED standards. Buskuhl says the safety of the building is maintained by annual indoor air quality testing, carbon monoxide detectors in the parking garages, annual Energy Star benchmarking and maintenance, and monitored base-building water usage. In addition, restaurants are equipped with BTU meters to measure water consumption while recycled rainwater will be used for on-site irrigation. Also in the office building is an air-cooled chiller system, a less-common HVAC system that uses air, rather than water, to cool the building. Buskuhl says the system saves roughly 12 million gallons of potable water each year.
Sandwiched within The Union is a grassy plaza surrounded by carefully curated restaurants designed to bring all-day variety to locals. Centermost in the project is The Henry, a free-standing, two-story restaurant pioneered by Sam Fox, the
THE UNION KEY PLAYERS ARCHITECT: HKS LANDSCAPE ARCHITECT: OFFICES OF JAMES BURNETT STRUCTURAL ENGINEER: BROCKETTE DAVIS DRAKE MEP: BLUM CONSULTING ENGINEERS CIVIL ENGINEER: KIMLEY HORN & ASSOCIATES GENERAL CONTRACTOR: DPR CONSTRUCTION OWNER/DEVELOPER: RED DEVELOPMENT RESIDENTIAL FINISH-OUT CONTRACTOR: STREETLIGHTS RESIDENTIAL GROCERY STORE TENANT: TOM THUMB RESIDENTIAL MANAGEMENT: LINCOLN PROPERTY CO. LANDSCAPE DESIGN: LINDA TYCHER DESIGN INTERIOR DESIGN: INK + ORO
Phoenix-based restaurateur behind North Italia in Plano and Flower Child in Uptown. Ebert describes The Henry as an “elevated American restaurant” with great variety. It offers food that guests feel like they can eat more than once a week, he says. Ebert says a resident with a “Henry obsession” could grab breakfast and coffee before work, circle back in the afternoon for another round of coffee or lunch, and return after work for dinner and drinks. “I think what The Henry does especially well is create the sense of community that it’s your favorite place to go hang out,” he says. “And, it’s hard to describe, but once you see it, it has a certain kind of warm residential feel to it, with fireplaces and other things that are just super inviting. And I think the frequency of visits is kind of unparalleled for someone in the restaurant business.”
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A ANATOMY OF A DEAL
THE UNION PROJECT STATS LINEAR FEET OF PT CABLE IN THE BUILDING: 3,577,412 CUBIC YARDS OF CONCRETE: 91,102 CUBIC YARDS TONS OF REINFORCING: 9,300 TONS TOTAL MAN HOURS TO DATE: 1,709,903 AVERAGE MAN COUNT: APPROXIMATELY 200-250 MEN PER DAY RENDERING: HKS
GROSS SQUARE FOOTAGE OF BUILDING: 1,825,866 SQUARE FEET OFFICE BUILDING HEIGHT: 306’-8” RESIDENTIAL BUILDING HEIGHT: 344’-0” SQUARE FOOTAGE OF CURTAIN WALL: 202,000 SQUARE FEET NUMBER OF CURTAIN WALL UNITS: 2,909 LINEAR FEET OF ALUMINUM FINS ON OFFICE TOWER: 4,473 NUMBER OF APARTMENT UNITS: 309
DPR TIMELINE DECEMBER 2015: INVITATION TO BID JANUARY 2016 SUBMITTED GMP ESTIMATE BUDGET MARCH 2016 BROKE GROUND ON UTILITIES NTP MARCH 2017 CONTRACTED AND NTP EXECUTED JUNE 2016 BUILDING PERMIT ISSUED BEGAN EXCAVATION JANUARY 2018 OFFICE TOWER TOPPING OUT APRIL 2018 RESIDENTIAL TOWER TOPPING OUT JANUARY 2019 SCHEDULED COMPLETION DATE 5 2 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
But The Henry isn’t the only Fox Restaurants concept coming to The Union. Foxowned North Italia restaurant will be among the seven restaurants serving customers throughout the day. Currently, The Union has announced five of its seven restaurant deals, including TACOLINGO, Minami Sushi Lounge, and Creamistry. “All of those together create what we would call a dining destination,” Ebert says. “So, we think it will be this kind of gravitational pull towards The Union. And one night you may go to the Henry, one night you may go to North, one night you may go to TACOLINGO, another night you may go to Minami. All are super complimentary, not competitive with one another. And, we think all those restaurants have similar DNA about them. Vibrant, well designed and reasonable price points.”
A NAME WITH IMPACT
Successful mixed-use developments have the power to unite; they bring together office workers and residents, passersby and patrons. But The Union, an infill project situated uniquely between Victory Plaza, Uptown, Klyde Warren Park, and the Dallas Arts District, takes the concept of unity even further. Ebert says he and his partners at RED Development chose the name The Union early on. But, in an effort to give the project a name with impact, they went through three full rounds of naming exercises before finally landing back on the name chosen originally. “We really do believe the site uniquely to be a unifying location between Uptown and the major venues and downtown—and with a Klyde Warren Park expansion, I think it gets even better,” Ebert says. Garrett agrees with Ebert, saying the name points to The Union’s strategic positioning in Uptown. “One of the things I point to with this project quite a bit is the importance of it as an infill project because it really connects Victory, Uptown, and downtown, which previously was just a void,” she says, “and then you layer onto that their involvement with extending the Katy Trail, Klyde Warren Park—that extension will bring real and literal connectivity between all of those neighborhoods. So, it’s a multitude of things that are going into what on the surface is, you know, another great multifamily and office project. But I think it’s a whole lot more than that to our community.”
PA I D A DV E RT I S E M E N T
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I INNOVATION: HEALTH CARE
RENDERING: VERDE CENTER AT PEACHTREE CAMPUS
THE PRESCRIPTION FOR NORTH TEXAS HEALTH CARE:
‘RETAILIZATION,’ HOSPITALITY & MERGERS BY DAVID KIRKPATRICK
Health care in North Texas is growing and evolving in urban hospital districts and in suburban cities. This, in turn, is creating a real estate sector rife with new construction, existing facilities’ expansion, and creation of environments incorporating hospitality and new technologies. The sector embraces remote medicine and satellite facilities to bring health care closer to where patients live, something industry insiders call “retailization.”
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The North Texas health care sector is a key one, boasting highly ranked hospitals, world-renowned research centers, and biotech and pharma firms, as well as medical device and supply companies. The sector accounts for 15 percent of jobs in the Dallas-Fort Worth area, employs 601,000, and had a $52 billion economic impact in 2014, according to data from the Dallas Regional Chamber.
HEALTH CARE TRENDS PUSHING THE INDUSTRY FORWARD
“Retailization” isn’t the only trend affecting health care, in Dallas-Fort Worth. Proposed and completed mergers, such as the recent one between Dallas-based Baylor Scott & White Health and Houston’s Memorial Hermann, and the national merger of Dignity Health and Catholic Health Initiatives to create CommonSpirit Health, have put health care M&A activity at a fever pitch in 2018. Health care in North Texas also is growing because of the region’s population boom and the nationwide aging trend, as the baby boomer generation heads into their golden years. And, health care is evolving as medical technology advances bring new treatments, equipment, and tech requirements into health care facilities.
I INNOVATION: HEALTH CARE NOTABLE NORTH TEXAS PROJECTS
UT Southwestern is in the middle of a 20-year growth plan to add to and update its facilities to accommodate its growing education, research, and patient care operations, Warner says. This includes an ambulatory hub near the Clements University Hospital that will bring together around 1 million square feet of outpatient clinics, educational facilities, and offices. Other UTSW projects include: SCOTTISH RITE FOR CHILDREN
“UNLIKE MANY OTHER BUILDING TYPES IN THE U.S., HOSPITALS ARE DESIGNED TO OPERATE FOR 50 YEARS PLUS.” — TINA LARSEN CORGAN For health care real estate, experts say these trends have to be balanced against another core tenet of the sector: Stability. “Unlike many other building types in the U.S., hospitals are designed to operate for 50 years plus,” says Tina Larsen, principal, Healthcare Market Sector leader at Corgan. “One of the biggest design challenges we face in health care projects is preparing for technology integration based on today’s technologies, and designing in flexibility and adaptability to allow the integration of technology advances over the next 50 years.”
BRINGING CARE TO THE PEOPLE
Retailization of health care refers to the development of clinics, urgent care facilities, free standing emergency rooms, and outpatient surgery centers to ensure locations closer to patients, Larsen says. She adds that, as the population and communities grow, these facilities expand health care systems’ footprints. What does retailization look like? With institutions such as UT Southwestern Medical Center in Dallas, it is reflected in a partnership with Texas Health Resources, clinics in Fort Worth and Frisco, and medical satellite locations in Las Colinas and the Park Cities, says Dr. John Warner, executive vice president for Health System Affairs at UT Southwestern Medical Center.
> A third tower for the Clements University Hospital that broke ground in 2017 and is expected to open in 2020. It will add almost 300 beds, 19 operating rooms, an expanded ER, and two parking structures. > A 63,000-square-foot, three-story radiation oncology building, which opened in 2017 as part of the Harold C. Simmons Comprehensive Cancer Center. The facility is next to UTSW’s BioCenter, which supports biomedical startups with labs and office space. > West Campus Building 3, a 305,000square-foot professional building that opened in summer 2018. The facility places clinical and academic offices for urology, the clinical heart center, and several internal medicine subspecialties under one roof. It also includes a state-of-theart simulation center to provide training for medical students, residents, fellows, faculty, and other health care professionals. > The 110,000-square-foot Moncrief Medical Center outpatient facility, which opened in 2017 in Fort Worth. > UTSW is building a 120,000-square-foot medical center in Frisco in conjunction with Texas Health Resources, expected to open by the end of 2019. It will house a multispecialty clinic to include neurology, spine surgery, state-of-the-art concussion rehabilitation, breast and colon cancer screening, and pediatric services.
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RENDERING: VIRGIN HOTELS
I INNOVATION: HEALTH CARE
TEXAS HEALTH FRISCO
“More primary care and secondary care facilities, including surgical and imaging centers, are being built in neighborhoods as health care institutions strive to get closer to patients,” he said. While health care facilities will continue to move into communities through mixed-use, retail, and home-based care, Jeffrey C. Stouffer, executive vice president and Global Director at HKS Inc., says the standalone ER market in North Texas is saturated. As a result, some locations are closing, pulling back, or merging. He says consumers are becoming “more savvy and selective,” and the standalone ER market will probably continue contracting in the next few years. Leaning on hospitality is another trend connected with area projects. Warner cites UT Southwestern’s Clements University Hospital, which opened in 2014, as an example. When planning the facility, he says there was a concerted effort to meet with hospitality industry leaders to learn what people want and expect from elements such as lobby amenities and valet parking. He says that input was instrumental in improving the patient and family experience, adding that the hospital has since received awards for patient care and satisfaction.
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“THE HOSPITALITY FEEL WILL TRANSFORM INTO A WELLNESS FEEL THAT’S PROVEN TO REDUCE STRESS, AND SUPPORT HEALING AND SATISFACTION FOR ALL WHO UTILIZE THE FACILITY.” — JEFFREY C. STOUFFER HKS
The hospitality focus begins at the design stage. “HKS and other firms have been integrating a hospitality environment for years within our facility design. Going forward there will be a focus on outcomes-based design, evidence-based design, and increasing value for our clients, and the building’s users,” Stouffer says. “The hospitality feel will transform into a wellness feel that is proven to reduce stress, and support healing and satisfaction for all who utilize the facility.” A construction trend gaining popularity in the health care sector is prefabrication and increased modularity. Larsen says there also is an emphasis on adaptive reuse, such as taking advantage of vacancies in urban environments. With prefabrication, Larsen says redundant spaces can, for example, be built in a warehouse with better working conditions—and improved safety and quality—before being transported and plugged in. “This methodology works well for patient toilet rooms, patient head walls, and
I INNOVATION: HEALTH CARE NOTABLE NORTH TEXAS PROJECTS
METHODIST MIDLOTHIAN MEDICAL CENTER
Corgan is working with Dallas-based Methodist Health System and DPR Construction on a 65-acre campus in Midlothian. The project, which will be anchored by a five-story hotel, is scheduled to open in 2020. Corgan also designed its fourth area SpineTeam Texas Medical office building, clinic, and outpatient surgery center.
corridor plenum sections,” she says. “On the Parkland project, BARA, our construction partner, built these items in a warehouse near the project site. This proved very effective in maintaining consistent quality throughout 862 identical toilet rooms.” Meanwhile, Larsen says technology advances are changing the way in which patients can access health care. “Wearable apps will be used more in the future to monitor chronic health issues and alert patients to access proactive care—often times virtual care—rather than waiting until they need emergency care,” she says. “As a result, we will see more patient-less health care facilities designed to house the clinical staff involved in the virtual visits, along with the technology necessary to support these encounters. This type of facility is a business environment and can be located where it is most convenient for the workforce, rather than the patient.” What’s the remedy for the growing health care needs of North Texans? For the region’s health care systems and providers, it involves embracing new facilities and technologies, and the commitment to bring needed care closer to the patient.
HKS is serving as the architect for the UT Southwestern/Texas Health Resources Frisco Health Facilitator and the Texas Health Fort Worth Inpatient Beds and Surgery addition. It was also the architect for the recently opened Scottish Rite for Children Orthopedic and Sports Medicine Center in Frisco. The Texas Health Resources Fort Worth project is a $300 million expansion that includes a nine-story tower adding 144 beds, 15 surgical suites, and a new pre- and post-op services area. The surgical suites are expected to increase daily surgical capacity by close to a third. The expansion should open in 2021. “With this new tower, we’re expanding our capacity for more complex procedures and advanced care, which lets people in Fort Worth and nearby communities stay close to home when they need care,” Texas Health CEO Barclay Berdan said in a statement. A 60-acre, $250 million master-planned wellness campus, The Verde Center at Peachtree in Mesquite, is in the planning stages and is expected to break ground in 2019. It is a public-private venture developed via a partnership between Ryan Companies US Inc., Medical Campus Group, Lang and Co., and the Peachtree Foundation. Development financing is being supplemented by financial incentives provided by the State of Texas and the city of Mesquite. “The growing demand for convenient and high-quality health care alternatives in Mesquite and the East DFW Metroplex make The Verde Center at Peachtree important and viable for a variety of health care providers,” Ryan Co. Vice President of Development Rich Couturier said in a statement. “There are few markets in North Texas that have such a direct need for this type of medical and health and wellness campus.”
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I INNOVATION: HEALTH CARE
SCOTTISH RITE FOR CHILDREN ORTHOPEDIC AND SPORTS MEDICINE CENTER
LEAN, PATIENT-ORIENTED DESIGN BY DAVID KIRKPATRICK
Scottish Rite Hospital’s roots in Dallas might be nearly a century old, but its innovative new facility in Frisco is helping it leap forward in caring for the children of North Texas. Founded in 1921, Scottish Rite’s initial goal was caring for children with polio. It later became Texas Scottish Rite Hospital for Children, with a larger focus on other orthopedic conditions. Recently, the organization opened a second location: Scottish Rite for Children Orthopedic and Sports Medicine Center in Frisco. “Our greatest challenge was this being our first experience in actually building a second campus as an institution,” says Donald Katz, vice president of facilities and process design for Scottish Rite. “We conducted extensive studies on our patient demographics, while endeavoring to define what is most important to us from a space-use standpoint, for the provision of ‘team care’ we so proudly cherish.” Frisco was selected because it is one of the fastest-growing cities in the nation. The idea for a second location grew from the realization that a quarter of the institution’s patient population lived in the northern portion of the Dallas-Fort Worth area, says Jeremy Howell, vice president of Scottish Rite’s North Campus. Another focus for the second campus was to anchor Scottish Rite’s sports medicine clinic. “Sports medicine is one of the fastest-growing sub-specialties in pediatric orthopedics,” Howell says. “Since pediatric orthopedics is our mission, it was important to expand this practice to take care of this specific orthopedic area.”
STARTING WITH A LEAN FOCUS
A core consideration going into the process was recruiting a design and construction team that embraced lean principles throughout the project, Katz says. That meant adopting an integrated project delivery approach. This approach integrates people, systems, business structures, and practices into a collaborative process that uses the talents and insights of participants to optimize project results, reduce waste, increase value to the owner, and maximize efficiency.
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Early in the building’s design, primary subcontractors were selected for their expertise. This reduced the number of requests for information, resulting in fewINNOVATIVE SPACES er construction halts and work do-overs. “We also committed strongly to establishing what a series could be considered our ultimate vision for what this new campus and building should be,” Katz says. “This included defining what experiences we want our pa- For a photo tour go to DallasInnovates.com/ tients and families to have in both approaching and InnovativeSpaces. being within the building itself, and how the building architecture should communicate the look and feel of the Scottish Rite brand.” HKS served as the architect for the project. Some of the design elements considered included keeping the adolescent child visiting the campus with a sports injury—and wanting to get back into the game—in mind, as well as the parents who might be taking time off from work to take their child to therapy, says Bernita Beikmann, chief process officer at HKS Inc. That balancing act required giving parents spaces where they could observe, but still be able to take a phone call or answer an email, while also creating spaces for therapy. “You will find within this new facility a playful yet sophisticated approach to a pediatric clinic, spaces on the interior and exterior dedicated to injury rehabilitation and prevention, and research spaces to study movement in the short and long term of a patient’s care,” Beikmann says. “Scottish Rite as
I INNOVATION: HEALTH CARE DETAILS FRISCO CAMPUS: Scottish Rite for Children Orthopedic and Sports Medicine Center
MECHANICAL/ ELECTRICAL/ PLUMBING SUBCONTRACTOR: TD Industries
DALLAS CAMPUS: Texas Scottish Rite Hospital for Children
FACTS AND STATS
CEO/FOUNDER: Robert L. “Bob” Walker, President/CEO TYPE OF CO.: Children’s orthopedic hospital FOUNDED: 1921 (Scottish Rite Hospital), 2018 (Scottish Rite for Children) KEY PLAYERS IN THE DATA CENTER PROJECT DEVELOPER: Hammes Company GENERAL CONTRACTOR: The Beck Group ENGINEERING FIRM: WSP ARCHITECT: HKS
402,192 CUBIC FEET: The amount of concrete for the building 1,575 TONS: The amount of steel used in the building 70,000 FEET: The amount of underground conduit 900,000 HOURS OF WORK: Construction time on the project 435,000 SQUARE FEET: The total area of the facility 22 MONTHS: Time from groundbreaking to substantial completion 18 MONTHS: Time from first concrete pour to ready for occupancy
ELECTRICAL SUBCONTRACTOR: Prism Electric
an organization is also interested in investing in communities which, you will see with the conference center and playground, are available for community use.”
BRINGING THE CLINICAL TEAM INTO THE PROCESS
Part of the process involves directly engaging clinical team members in the design of their space, Katz says. He says HKS was highly skilled in analyzing the medical practices on the Dallas campus and interviewing clinical staff to establish consensus on defining the ideal state for any given area. The result was a functional and state-of-the-art design for optimal patient care. Overall the Frisco project was designed around the patient, which HKS’ Beikmann describes as any health-care project’s “strongest user,” and on patient access and the health-care trend toward outpatient services, rather than inpatient admissions.
SOUTHWEST TRANSPLANT ALLIANCE:
CREATING A SPACE FOR ORGAN DONATION BY DAVID KIRKPATRICK
Southwest Transplant Alliance recently broke ground on a first-of-its kind facility in Dallas that will further its mission to save lives through organ and tissue donation. The 77,000-square-foot-foot facility at 8190 Midtown Blvd. is scheduled to open in 2020, featuring state-of-the-art equipment, donor care units, and a conference center. Alliance President Pattie Niles says the site was selected as a centralized, convenient location, with accessibility for transplant teams, donor families, and colleagues. The location is adjacent to a Home2Suites by Hilton. The organization’s operational community includes East Texas, Abilene, Wichita Falls, El Paso, Midland/Odessa, Corpus Christi, Beaumont, Galveston, Temple, and Bryan/College Station “The focus of the entire building will be our Donor Memorial Garden, where we will honor organ and tissue donors who gave the gift of life to others,” Niles says. The garden features a sculpture, water feature, and outdoor gathering areas, and the space will be used for donor families to meet recipients. Along with the donor care units, the facility will include four operating rooms, a lab for predonation testing, and training rooms for surgeons. The facility and its equipment will help Southwest Transplant Alliance maximize the gifts of donated organs and tissue, Niles says, but the building is slated for more than medical procedures. “With a conference center and our medical units, we foresee STA’s new home as a place of education, innovation, and advancement that will include our colleagues from across the organ donation and transplantation community,” Niles says. For more on Southwest Transplant Alliance Facility, go to DallasInnovates.com/InnovativeSpaces.
KEY PLAYERS GENERAL CONTRACTOR: Adolfson & Peterson ENGINEERING FIRM: Pacheco Koch ARCHITECT: Corgan FACTS AND STATS
THE NUMBER ORGAN RECOVERIES FOR TRANSPLANTATION FACILITATED BY SOUTHWEST TRANSPLANT ALLIANCE
THE NUMBER OF RECOVERIES SOUTHWEST TRANSPLANT ALLIANCE ACCOMPLISHED YEARLY
THE YEAR SOUTHWEST TRANSPLANT ALLIANCE BEGAN TISSUE RECOVERY
THE NUMBER OF FEDERALLY DESIGNATED ORGAN PROCUREMENT ORGANIZATIONS IN THE NATION, OF WHICH SOUTHWEST TRANSPLANT ALLIANCE IS ONE OF THE LARGEST
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SPECIAL ADVERTISING SECTION
ECONOMIC DEVELOPMENT DIRECTORY Addison is certainly the place where it all comes together, and the Economic Development & Tourism Department can help. The department’s professionals are charged with developing programs and supporting projects that will help promote economic prosperity in the community. For companies that are looking to relocate or expand, the department can provide information about Addison so that key decisionmakers can get a well-rounded understanding of all that the community has to offer. In addition to this, the department can help identify the right space for businesses, evaluate projects for public support, and open the doors for opportunities that abound in Addison and the North Texas region. With the support of our key stakeholders, the department can also get you connected in local business networks. ADDISON ECONOMIC DEVELOPMENT & TOURISM: 972.450.7076 14681 Midway Road Suite 200 Addison, TX 75001 addisoned.com
Located at the highest elevation in Dallas County and 20 minutes from the city center sits the beautiful, family-friendly
City of Cedar Hill, where opportunities grow naturally. This bustling and diverse community of just over 45,000 people combines the best of big-city living with natural beauty and outdoor recreation found nowhere else in the Metroplex. With its low cost of doing business, ample workforce, and attractive quality of life, Cedar Hill is experiencing an influx of both startups and established companies. Growth-minded companies are gaining handsome dividends from opportunities that exist throughout the City. In addition to the growing business climate, Cedar Hill corners the market on natural beauty. The Cedar Hill State Park and Dogwood Canyon Audubon Center allows residents and visitors access to the most uniquely diverse geological area, abundant wildlife, and the most breathtaking views in North Texas. To facilitate and energize relocation and expansion, Cedar Hill offers aggressive economic development incentives. CEDAR HILL ECONOMIC DEVELOPMENT 972.291.5132 285 Uptown Blvd, Bldg 100, Cedar Hill, Texas 75104 cedarhilledc.com
The Colony is a growing city on the east side of Lewisville Lake, 25 minutes from downtown Dallas and 15 minutes from the Dallas Fort Worth International
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Airport, located along the Sam Rayburn Tollway. Home to approximately 40,000 residents with businesses and retail locating here daily, The Colony continues to maintain its “hometown” feel. Affectionately known as “the city by the lake,” The Colony features 23 miles of shoreline along Lewisville Lake and two lake parks with boat ramps, camping, and many other amenities. Golf courses within the city all provide outstanding lake views with two courses being recognized among Golf Magazine’s top five in Texas in 2010. The Colony is the proud home of the nation’s largest home furnishings store, the Nebraska Furniture Mart of Texas, anchoring the 400-acre Grandscape development. When complete, Grandscape will feature unique entertainment, dining, and retail venues. KERI SAMFORD, Economic Development Director THE COLONY ECONOMIC DEVELOPMENT CORPORATION 6800 Main St., The Colony, TX 75056-1133 972.624.3127 email@example.com thecolonyedc.org
The City of Dallas Office of Economic Development is a fullservice shop that offers business development and area redevelopment programs, small business assistance, and innovative programs such as the City of Dallas
Regional Center and New Market Tax Credits. We can successfully usher a project from beginning to end. The Office of Economic Development offers a range of programs and services to assist developers, investors, businesses looking to expand or relocate, and small businesses looking to grow. With innovative programs, a supportive business climate, and a city full of opportunities, we are ready to make your project a success. CITY OF DALLAS OFFICE OF ECONOMIC DEVELOPMENT 1500 Marilla St. Dallas, TX 75201 214.670.1685 dallas-ecodev.org
The McKinney Economic Development Corp. (MEDC) was created in 1993 to support the development, expansion, and relocation of new and existing companies. The MEDC is an organization with a mission to work to create an environment in which communityoriented businesses can thrive. PETER TOKAR III President and CEO MCKINNEY ECONOMIC DEVELOPMENT CORP. / CITY OF MCKINNEY 5900 S. Lake Forest Drive Suite 110 McKinney, TX 75070 firstname.lastname@example.org 972.547.7651 mckinneyedc.com
Centrally located between Dallas Fort Worth International Airport and downtown Fort Worth in affluent Northeast Tarrant County, North Richland Hills (NRH) is the third largest city in Tarrant County behind Fort Worth and Arlington. Rapidly growing, NRH added over 500 new single family homes valued over $350,000 in the past three years within the highly-rated Birdville and Keller ISDs. Growth is expected around two transitoriented developments (TODs) along the Fort Worth Transportation Authority’s new commuter rail system, TEXRail. Scheduled for 2018, TEXRail will run along the famous Cotton Belt line connecting Downtown Fort Worth to DFW Airport along two separate NRH rail stops. Business additions include the expansion of Santander Consumer USA into 200,000 SF and 1,650 employees, the new addition of Southwest ADI, a distributor that purchased and converted a former Sealy bedding plant into their corporate headquarters, and the addition of Digital Alchemy, a technology company occupying 24,000 SF of office space. CRAIG HULSE Director of Economic Development 4301 City Point Drive North Richland Hills, TX 76108 817-427-6090 email@example.com www.nrhed.com
Jim Knight, Chairman Bill Cawley, Chairman-Elect
CHAMPION’S CIRCLE Bank of America Merrill Lynch/ Bank of America Charitable Foundation, Inc. Bank of Texas Compatriot Capital, Inc. Deloitte Fauxcades Granite Properties HFF Hilton Anatole Hotel JP Morgan/ JP Morgan Chase Foundation NexBank
Balfour Beatty Construction Billingsley Company CBRE Corgan Associates, Inc Crow Holdings Capital Partners, L.L.C. EY Frost Bank Holt Lunsford Commercial Invesco Real Estate Jackson Walker L.L.P. JLL KDC KPMG LegacyTexas Matthews Southwest Munsch Hardt Kopf & Harr P.C. Republic Title of Texas, Inc. Stantec Stewart Title StreetLights Residential The Howard Hughes Corporation Winstead PC
PRESIDENT’S CIRCLE 42 Real Estate, LLC
Each year, The Real Estate Council receives both financial and volunteer support from funding partners and member companies. Special thanks to each of you for contributing your time, talent, and resources to help us achieve our mission.
Bank of the Ozarks BB&T BBVA Compass/BBVA Compass Foundation Champion Advisory Partners Chief Partners LP Comerica Bank Cushman & Wakefield DPR Construction, Inc. Eastdil Secured GFF Goldman Sachs Haynes and Boone, LLP Jackson-Shaw Locke Lord LLP NorthMarq Capital ORIX Real Estate Americas/ Orix Foundation Spirit Realty Capital Stream Realty Partners Texas Capital Bank Thackeray Partners Todd Interests Trammell Crow Company US Bank
Adolfson & Peterson Construction AECOM Hunt AG&E Structural Engenuity American National Bank of Texas Arch Con Corporation Bank of America Plaza BBG Beck Group Berkadia Commercial Mortgage Bradford Companies Brasfield & Gorrie, LLC Capital One Bank Capright, LLC Chicago Title Company/ Fidelity National Financial (FNF)
Colliers International Communities Foundation of Texas Corinth Properties Cortland Partners Davidson & Bogel Real Estate EMJ Corporation Gables Residential Gaedeke Group LLC Gardere Wynne Sewell LLP Grant Thornton HALL Group Hillwood Urban Hines Interests LP Hunt Mortgage Group Invitation Homes Jones Day JPI Kane Russell Coleman Logan PC KeyBank Kimley-Horn and Associates, Inc Lincoln Property Company Mill Creek Residential Trust LLC Mohr Partners MUFG Union Bank OMNIPLAN, Inc. PegasusAblon Properties Perkins+Will PGIM Real Estate Finance PlainsCapital Bank PM Realty Group PUREPOINT Financial Real Estate Deal Sheet Regions Bank Sarofim Realty Advisors Schwob Building Company th+a Architects, Inc. The Retail Connection TIER REIT, Inc. Trammell Crow Residential Transwestern Turner Construction Company
Vinson & Elkins L.L.P. Walker & Dunlop Wells Fargo Bank Westmount Realty Capital, LLC
Carrco Painting Drywall Interiors, LP Gentzler Electrical Services Inc. J&S Audio Visual Mckinney Office Supply Parmenter Realty Partners Premier West Builders TD Industries WFAA-Channel 8 Shaw Contract Flooring EHP Consulting & Bellphi Environmental Flooring Effects Polk Mechanical Co LLC RJS Painting, Inc. SWA Group Marek Brothers Systems Inc Alpine Roofing Construction PDL Kellen Flooring Solutions H & H Outfitters Already Design Co Gemini Stage Lighting & Equipment, Co., Inc. Precision Demolition, LLP Rod Stanley Fource Co Gordon Highlander AOS Engineering, LLC Armstrong Flooring Precision Specialty Floors Kite’s Int Lang Partners Facility Solution Epic Paver
WHO WE ARE TREC is where 2,000 commercial real estate professionals spark community transformation, influence policy, and propel careers in DFW and beyond. Only TREC provides the road map for success and the platform to Build the City You’ve Imagined. WINTER 2018
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 Addison Law AECOM AECOM Hunt Akin Gump Strauss Hauer & Feld LLP Alaska Airlines AlixPartners LLP Alkami Technology Alston & Bird LLP Altair Global Amegy Bank of Texas Amerant Bank, N.A. American Airlines, Inc. American Heart Association, Dallas Division American National Bank of Texas AMN Healthcare Andrews Distributing Company of North Texas Aon Armstrong Relocation At Home AT&T Atmos Energy Corporation Austin College Austin Industries AustinCSI Axxess Bain & Company, Inc. Baker & McKenzie, LLP Baker Botts L.L.P. Balfour Beatty Bank of America Bank of Texas Barnes & Thornburg Baylor Scott & White Health BB&T BBVA Compass BDO USA LLP BE&K Building Group Bell Nunnally BG Staffing, Inc.
Big 12 Conference Billingsley Company Billy & Dodee Crockett Advised Fund BKD LLP bkm Total Office of Texas BLNelson Group LLC Blue Cross and Blue Shield of Texas Boeing BOKA Powell Bottle Rocket Brandt Companies Brasfield & Gorrie Brierley+Partners Briggs Freeman Sotheby’s International Realty Brinker International, Inc. BRP Business Jet Center Business Wise, Inc. Capital One Bank Carrington, Coleman, Sloman & Blumenthal, L.L.P. Cawley Partners CBRE Group, Inc. Centurion American Development Group CENTURY 21 Judge Fite Company Champion Partners Chickasaw Nation Children’s Health System of Texas Choctaw Nation of Oklahoma CHRISTUS Health Cinemark Holdings (Cinemark USA, Inc.) Citi City Electric Supply Clark Hill Strasburger Cleaver-Brooks Sales and Service ClubCorp USA, Inc. Coca-Cola Refreshments Colliers International Comerica Bank Commemorative Air Force Commerce Bank Consolidated
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Communications Copart Corgan Corinth Properties Corrientes 348 Argentinian Steakhouse Corrigan Investments, Inc. CP&Y, Inc. Crestron Electronics Crowe LLP Cyber Group, Inc. CyrusOne Dallas Baptist University Dallas Business Journal Local Business News Dallas County Community College District Dallas Cowboys Football Club Ltd. Dallas Mavericks Dallas Stars Hockey Club Dallas Summer Musicals Dallas Wings Dal-Tile Corporation Dannenbaum Engineering Corporation DeGolyer and MacNaughton Deloitte LLP DexYP DFW International Airport DHD Films DLR Group Staffelbach Door Dreien Opportunity Partners LLC E Smith Legacy Holdings East West Bank Ebby Halliday Real Estate, Inc. Egan Nelson LLP esrp Estrada Hinojosa & Company, Inc. Ewing Automotive Group Exxon Mobil Corporation EY FASTSIGNS - Northeast Dallas FedEx Office Fidelity Investments Fluor Corporation
Headquarters Foley Gardere LLP Forest City Texas Inc Fox Sports Southwest Frito-Lay North America Frost Bank Furniture Marketing Group G6 Hospitality LLC Gaedeke Group Gensler George W Bush Foundation Goldman Sachs & Co, LLC Gordon Highlander Granite Properties Grant Thornton LLP Green Brick Partners Gulfstream Aerospace Corporation Gupta & Associates Inc. Halff Associates Hall Group Harness Dickey & Pierce Hartline Dacus Barger Dreyer LLP Haynes and Boone Hazel’s Hot Shot, Inc. H-E-B/Central Market Heritage Health Solutions Inc. Hill & Wilkinson General Contractors Hill+Knowlton Strategies Hillwood Development Company, LLC Hilti North America Hilton Anatole Hines Interests Limited Partnership HKS Inc. HMS HNTB Corporation Hoar Program Management, LLC HOK HollyFrontier Corporation Holmes Murphy HOLT CAT Hotels.com Howard Hughes Corporation HPI Real Estate Services & Investments/Ross Tower WINTER 2018
C COMMUNITY HUB International Insurance Services Hunt Consolidated, Inc./ Hunt Oil Company IBC Bank IBM Corporation Interceramic International Leadership of Texas Invesco Real Estate Invitation Homes Jackson Spalding, Inc. Jackson Walker LLP Jacobs Engineering Group Inc. Jamba Juice JE Dunn Construction JLL Jones Day JPI JPMorgan Chase & Co. KDC Real Estate Development Investments Ketchum Public Relations Keurig Dr Pepper Kilpatrick Townsend & Stockton LLP Kimley-Horn and Associates KPMG LLP L.A. Fuess Partners Structural Engineers LegacyTexas Bank Life School Lincoln Property Company Linebarger Goggan Blair & Sampson, LLP Littler Mendelson, P.C. Live Nation Locke Lord LLP Lockheed Martin Lockwood, Andrews & Newnam, Inc. M2 Studio Manpower, a ManpowerGroup Company Mary Kay Inc. McCarthy Building Companies, Inc. McGough Construction McGuire, Craddock & Strother, PC McKinsey & Company, Inc. McLarty Capital Partners McRight-Smith Construction Medical City Dallas Hospital/ Medical City Children’s Hospital Methodist Health System MHBT, a Marsh & McLennan WINTER 2018
Agency LLC company Microsoft Corporation MidFirst Bank Mission Foods USA Munck Wilson Mandala LLP MYCON General Contractors NEC Corporation of America Newmark Knight Frank NTT DATA Inc. Oklahoma State University Omni Dallas Hotel Omnitracs, LLC Oncor Operation Kindness Options Clearing Corporation Origin Bank ORIX USA Corporation Pacific Builders Inc. Park Place Dealerships Parkland Foundation Paul Quinn College Penske Motor Group Perkins+Will Pierpont Communication Pioneer Natural Resources Company PlainsCapital Bank PNC Polsinelli Premier Truck Group Prime 45 Development LLC Promenna PSA Constructors, Inc. PwC RealCom Solutions Regions Bank Reliant, an NRG Company Rent-A-Center Rosewood Property Co. RSM US LLP Salient Global Technologies Santander Consumer USA Sbase Technologies SCHMIDT & STACY Consulting Engineers, Inc. Scientel Solutions Sendero Sewell Automotive Companies Shackelford, Bowen, McKinley & Norton LLP Sheraton Dallas Showcall Sidley Austin LLP Silicon Valley Bank Silverado Interests Slalom
Smart City Apartment Locating Smith Group Asset Management Social Revolt Agency Southeastern Freight Lines Southern Glazer’s Wine and Spirits Southern Methodist University Southwest Airlines Southwest Office Systems, Inc. Spectrum Enterprise Spectrum Reach Squire Patton Boggs (US) LLP StackPath Stantec State Farm Insurance Companies Stewart Title Stifel Stinson Leonard Street Stout Risius Ross Suffolk Construction SunTrust Robinson Humphrey Inc Susan G Komen Target Headquarters TDIndustries TDJ Enterprises Teladoc Telios Telnorm Tenet Healthcare Texans Can Academies Texas A&M University Texas Capital Bank Texas Central Texas Health Aetna Texas Health Resources Texas Instruments Incorporated Texas Scottish Rite Hospital for Children Texas Star Alliance Texas Woman’s University Texas Women’s Foundation The Asset The Beck Group The Boston Consulting Group The Brinkmann Corporation The Broaddus Companies The Commit Partnership The Crowther Group The Dallas Morning News
The Fairmont Dallas The Freeman Company, LLC The Kroger Co. The University of Texas at Arlington Thompson & Knight LLP Thomson Reuters T-Mobile US Inc Tolleson Wealth Management Tom Thumb Food & Pharmacy Topgolf Torchmark Corporation Town of Addison Toyota Motor North America TracyLocke Transwestern Trinity Groves, LLC Trinity Industries, Inc. Turner Construction Company Uber Technologies, Inc. UMB Bank N. A. UnitedHealthcare University of Dallas University of North Texas at Dallas University of North Texas System University of Texas at Dallas UT Southwestern Medical Center Veritex Community Bank Verizon Wireless South Central HQ Village Green Holdings, LLC Vinson & Elkins LLP Vistra Energy Walgreens Company Weaver Weil, Gotshal & Manges LLP Weitzman Wells Fargo West Monroe Partners LLC WFAA-TV Whitebox Real Estate Whiting-Turner Contracting Company Whitley Penn Willis Towers Watson Wilson, Elser, Moskowitz, Edelman & Dicker LLP Winstead PC Women’s Foodservice Forum Zinwave Ztar Mobile, Inc.
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CHAD PROCHASKA Professionalism, passion for volunteering define Beck’s Director of Preconstruction BY NICHOLAS SAKELARIS
Chad Prochaska’s fingerprints are all over some of Dallas’ most historic renovations, from the 89-year-old downtown post office to the 99-year-old former Federal Reserve building—now a data center—on Akard Street. After 19 years as a project manager at Turner Construction, Prochaska is tackling a new challenge as the Director of Preconstruction with The Beck Group. He made the career change in August 2018. But, it’s not just the opportunity to switch jobs that gets Prochaska’s blood pumping. Talking to him about his professional career, it’s easy to see his passion is volunteering in the community and helping others. Working at Beck allows him to do both. “This is a company that I believe in that believes in giving back,” he says.
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“I’m very proud of Beck’s emphasis on letting me lead.” Prochaska has done paint, repair, and renovation projects for elderly Dallas residents, organized the Harmony Community Development Corp’s food pantry, and painted murals at the Austin Street Center, a Dallas homeless shelter. Most of his volunteer work has been through the Dallas Regional Chamber’s Leadership Dallas program. It started when he took the class in 2014, and each year thereafter, Beck took on a larger role. This year, he’s chairing the whole event, coordinating 12 to 15 different agencies and 150 to 200 volunteers for a four-hour giving opportunity. Through his involvement in DRC Leadership, Prochaska made valuable contacts. For example, a Beck client recognized Prochaska from his days volunteering in DRC Leadership class.
“There’s a true need that people don’t recognize in the heart of Dallas. ”
— Chad Prochaska
Beck employees also regularly volunteer at the Austin Street Center. “We go over there as a group, and we will serve dinners,” Prochaska says. “Beck loves it that their employees give back.” This year, the DRC Leadership calls will focus on Northeast Dallas, where there are pockets of Middle Eastern refugees, homeless residents, and other serious needs. Volunteers will paint, build, and meet with refugees to provide additional assistance. “There’s a true need that people don’t recognize in the heart of Dallas,” Prochaska says. “That has been a big amount of work for me, visiting agencies over the last six months, that will be compressed into one four-hour window.” Prochaska also enjoys volunteering with Hearts and Hammers, during which he and other volunteers refurbish old homes in need of repairs. The typical homeowner benefitting from this charity is a widow whose home has fallen into disrepair since her husband died. “It’s the greatest thing when the homeowner would come out, and they’re crying,” Prochaska says. “It feels so good that we’re doing real good quality work.” Oftentimes, Hearts and Hammers finds the people through code enforcement, and volunteers make it clear they are there to help. “You’re not offenders to us,” he says. “You’re someone we want to help.” Prochaska’s new position at Beck also affords him other chances to elevate the community. Preconstruction is all about determining the budget and feasibility of a project before ground is broken. “We do all types of construction, but it doesn’t leave the office without my blessing or approval,” he says. He made it a point to drop the term “subcontractor,” from the lexicon at Beck, believing the term denotes subservience. Instead he refers to the group as trade contractors. Prochaska’s office helps line up the various trade groups for each job, and he takes pride in hiring minority or historically underutilized contractors. “We will work to create packages so that they can get some of our work,” he says. Whether he’s designing a high-end finish-out for a lawyer’s office or installing a wheelchair ramp for a disabled senior, Prochaska says he takes pride in everything he does. He remembers telling his children, “I was part of it, but my part helped make it beautiful.”
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.
CALENDAR OF EVENTS Make plans now to attend these upcoming real estate and business events. For information on programs hosted by The Real Estate Council, visit recouncil.com. For details on events presented by the Dallas Regional Chamber, visit dallaschamber.org.
JANUARY.. JANUARY 18 2019 Annual Meeting Hilton Anatole, Noon-1:30 p.m. The Chamber’s biggest event of the year celebrates business and community leaders who make Dallas a vibrant and dynamic place to live, JIM work, and do business. LENTZ Featured speaker Jim Lentz, CEO, Toyota Motor North America [DRC]
JANUARY 24 Bank of Texas Speaker Series: WalkUp Wake Up With Christopher Leinberger Belo Mansion, 11:30 a.m. to 1:00 p.m. Join TREC and ULI North Texas at the Belo Mansion on Jan. 24 as Christopher Leinberger debuts his WalkeUP Wake Up study on urban walkability in CHRISTOPHER North Texas. Following LEINBERGER cities like New York and Washington D.C., Leinberger will be focusing on the economic and social impact of North Texas’ walkability, as well as how to build a more walkable region. [TREC]
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THE REAL ESTATE COUNCIL DREAMS BIG The Real Estate Council hosted its final educational program luncheon of the year on Nov. 29 with Bank of Texas Speaker Series: Community Impact Through Collaboration. Moderator Brendan Miniter of the Dallas Morning News joined panelists Lyda Hill and Nicole Small of the Lyda Hill Foundation, Dallas Chief of Police U. Reneé Hall and Aleta Stampley of Capital One to talk about the transformative power of collaboration in changing our world. During the luncheon, held at Belo Mansion, the group also talked about partnerships as they relate to local government, a private foundation, and a national bank. We’d like to thank our sponsors, Bank of Texas, Stewart Title, and the Dallas Morning News for their partnership throughout the year and look forward to our first Bank of Texas Speaker Series event of 2019 on Jan. 24. TREC CHAIR RAN HOLMAN, BRENDAN MINITER OF THE DALLAS MORNING NEWS, DALLAS POLICE CHIEF U. RENEÉ HALL, LYDA HILL OF THE LYDA HILL FOUNDATION, KATE CAVANAUGH OF STEWART TITLE, NANCY KEE OF STEWART TITLE, NICOLE SMALL OF THE LYDA HILL FOUNDATION, ALETA STAMPLEY OF CAPITAL ONE, DALLAS CATALYST PROJECT CHAIR MIKE GEISLER AND KELLY ANSLEY OF STEWART TITLE ALETA STAMPLEY OF CAPITAL ONE
DALLAS POLICE CHIEF U. RENEÉ HALL AND LYDA HILL OF THE LYDA HILL FOUNDATION 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
DALLAS CITY COUNCILMAN KEVIN FELDER AND DALLAS CATALYST PROJECT CHAIR MIKE GEISLER WINTER 2018
BILL BROKAW: SUPPORTING THE GROWTH OF DALLASFORT WORTH BY NICHOLAS SAKELARIS
DALLAS POLICE CHIEF U. RENEÉ HALL
NICOLE SMALL OF THE LYDA HILL FOUNDATION
TREC CHAIR RAN HOLMAN
Bill Brokaw wants to transform the Dallas skyline—from Turtle Creek to Uptown, to Victory Park, to the heart of downtown. Brokaw, senior vice president of Hillwood Urban, was lured back to the Perot family three years ago to create new, desirable hotel and office addresses that Hillwood could develop, lease, manage, and own for the long term. Demand is high in downtown Dallas and areas north, while vacancies are low. It’s the perfect recipe for Hillwood Urban, which already has all the ingredients ready to go. The company was waiting for the right time to pounce. “We’ve been ready for this timeline. We’re out in front and already own the land,” Brokaw says. “We’ve already spent the investment dollars in the design so that we’re that much further along. Our biggest strength is designing and owning sites outright, so we are ready when the need arises.” Hillwood brought Brokaw back from Cushman Wakefield in 2015 to lead Hillwood Urban. Brokaw started with the new Hillwood/Perot family headquarters on Turtle Creek Boulevard, which opened in 2017. Of everything he’s done over his career, this 170,000-square-foot campus is the one of which he is proudest. “Looking at Turtle Creek today, you can see how a project like the new Hillwood/Perot Family headquarters is spurring additional investment to the surrounding projects and new development,” Brokaw says. “The Turtle Creek area is vibrant and, working there day-to-day, there’s a real buzz that something special is happening around us.” That includes Hillwood Urban’s own 3001 Turtle Creek project, a 360,000-square-foot, multitenant office building. The project, across the street from the new family office, is scheduled to be completed by the end of 2021. Moving west to Victory Park, Brokaw says he’s excited about the potential for 2 million square feet of new corporate campus space spread over 11 acres. The largest piece will be 1 million to 1.5 million square feet adjacent to Dallas Area Rapid
Transit’s Victory Station. Brokaw said it’s the largest consolidation of land in Victory Park/Uptown Dallas that’s still undeveloped. The timing is contingent upon preleasing tenants, but Brokaw says the first phase could deliver as early as 2021. “We’re shovel ready,” he says. Hillwood’s biggest proposal would be a 1.5-million-square-foot tower that could be as high as 50 to 60 stories at the southeast corner of Field Street and Woodall Rodgers Freeway. “It could be a real skyline changer for the city of Dallas,” he says. “It’s connected to Klyde Warren Park.” When he’s not planning the future of the Dallas office market, Brokaw volunteers at The Real Estate Council. He’s been involved in the organization since the mid-90s. “My best memories came from being involved in the ALC [Associate Leadership Council],” Brokaw says. “It’s a great way to meet other young people. We’re still great friends today. It’s almost like a pledge class that spends years of their time together and becomes friends forever.” There are plenty of opportunities for charity and helping others, while learning what the challenges are in the city, he says. But TREC plays another important role, as North Texas strives to attract new corporate headquarters, now that Amazon selected Northern Virginia and New York City for its new headquarters. “The city is starting to rely more and more on TREC as an economic development partner as we continue to recruit other people to the city,” he said. TREC is involved in traffic studies and looking at infrastructure, while also helping young professionals network and learn about the community.
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VIEW FROM THE TOP
BY LANCE MURRAY
IN YOUR SITE SELECTION PROCESS, WHAT TIPPED THE SCALE IN FAVOR OF DALLAS?
Dallas’ status as an aviation hub played a huge part in the decision. With so many phenomenal aviation-related companies based in the region, the pool of talent in the greater Dallas region is truly unparalleled. Knowing that we were entering a major growth phase and would need to quickly find a large number of well-qualified new crewmembers to join the company, Dallas became the clear choice for JetSuite’s new home.
HOW DOES THE NORTH TEXAS AREA FIT INTO THE NEEDS OF YOUR EMPLOYEES?
STEPHANIE CHUNG President, JetSuite Private jet charter company JetSuite took flight from Irvine, California earlier this year and has landed in a new headquarters at the Mockingbird Towers just west of Love Field in Dallas. The company has leased an entire floor at Mockingbird Towers and has an option on a second floor of office space. The company made the move after receiving an investment from Qatar Airways, and also is backed by JetBlue Airways Corp. JetSuite President Stephanie Chung took time to answer our questions about the company’s relocation.
TELL US ABOUT JETSUITE’S OPERATIONS THAT HAVE RELOCATED TO DALLAS. HOW MANY PEOPLE ARE A PART OF THE RELOCATION?
JetSuite completed its relocation from Irvine, California to our new corporate headquarters in Dallas in August 2018. We were fortunate enough to have 26 of our crewmembers make the move with us from California. We are looking to hire over 20 Dallas-area employees over the course of the next several months.
WHAT SETS JETSUITE APART FROM OTHER PRIVATE AVIATION COMPANIES? 6 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
As we prepare to celebrate our 10th year of operation in 2019, we are fortunate enough to be one of the very few private aviation companies to last this long. And not only are we surviving, but thriving. Fueled by investments from Qatar Airways and JetBlue, we’re preparing for major growth in our operations in the months ahead. What sets us apart from our competitors, I believe, is both the excellence of our physical product and our deep commitment to outstanding customer service. We offer some of the best aircraft in the business and our team is incredibly dedicated to ensuring that we meet and exceed our customers’ expectations.
North Texas is a fantastic place to live! I’ve actually lived in Dallas for 10+ years, so I was thrilled by this relocation. I love that Dallas offers all of the benefits of a world-class city, yet the cost of living is still relatively affordable. It’s a win-win for everyone. Our crewmembers who made the move from California seem to be loving it. (Although they’re still getting used to this winter weather!)
HOW DOES DFW’S CENTRAL LOCATION ENHANCE YOUR COMPANY’S OPERATIONS ACROSS THE U.S.?
We do a great deal of our private aviation business on both coasts, so being centrally located made a lot of sense for us as a company from an efficiency standpoint. Due to the nature of our business, a majority of our crewmembers work remotely in the field in the cities where we fly. This move to Dallas makes it easier for our corporate team to travel throughout the U.S., meaning they can better support our teams in the field. From Dallas, we are well positioned to grow our business, better support our teams, and launch JetSuite into its second decade! WINTER 2018
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Photos: Dallas Skyline-Urban Fabric Photography; Klyde Warren Park Book Kiosk, Oﬀice Workers, Southwest Airlines Headquarters-Kauwuane Burton Photography
WHY BE THE SAME? BE UNIQUELY YOU.
WHERE BUSINESS + CHARM GROW NATURALLY You’ve arrived someplace special when you come to Cedar Hill. Whether it’s our pristine natural beauty, the unique experiences in our historic downtown, or perhaps a friendly wave from passing neighbors. Whatever the reason, Cedar Hill’s bustling and diverse community of just over 45,000 people combines the best of big-city living with natural beauty, and outdoor recreation found nowhere else in the Metroplex. When it comes to opportunity, Cedar Hill is the place for entrepreneurs of all types to bring their dreams and make them a reality. Come take a look for yourself, we’ve been planning for your visit!
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