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14 ANATOMY OF A DEAL
Welcome Letter . . . . . . . . . . . . . . . . . . . . . . . . . 6 Publisher’s Note . . . . . . . . . . . . . . . . . . . . . . . . .8
FOUNDATIONS DFW Market Statistics, Economic Indicators, and Commercial Real Estate News. . . . . . . . . 10
ANATOMY OF A DEAL Frisco Station Frisco Station aims to grow with its Star neighbor next door. . . . . . . . . . . . . . . . . . . . .14
INNOVATION Financial Talent Pool More financial companies are coming to Dallas-Fort Worth in search of talent. . . . . . .22
FEATURE Logistics Dallas-Fort Worth’s prowess in the air, on the rails, and along the highways is propelling it to even greater heights. . . . . . 28 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
DALLAS | AUSTIN | HOUSTON | SAN ANTONIO
Relentless Service with an Entrepreneurial Spirit We approach our projects with a sense of personal responsibility, driving us to find the best solutions for our clients.
COMMERCIAL | INDUSTRIAL | MULTIFAMILY | SENIOR LIVING | EDUCATION
BUILDING TOMORROW TOGETHER The DFW Job Machine Roars Into The ‘20s . . . . . . . . . . . . . . . . . . 37 E XC L USI V E LY P UB L ISHE D B Y D MAGAZINE PARTNERS
PUBLISHER & EDITORIAL DIRECTOR Quincy Preston
39 THE CRANE REPORT THE CRANE REPORT Who’s Building What, Where . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
MANAGING EDITOR Lance Murray
SENIOR EDITOR Alex Edwards
CREATIVE DIRECTOR Michael Samples
47 SCORECARD SCORECARD DFW’s Top Office and Industrial Leases . . . . . . . . . . . . . . . . . . . . . 47
Jim Fuquay Sandra Engelland Jeff Bounds INTERNS Kathryn Chavez
SPECIAL ADVERTISING SECTION Economic Development Directory Profiles of cities around the region . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Erika Fanuzzi Theophilus Bowie Maddie Preston
The Real Estate Council, Impact Investors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51
Dallas Regional Chamber, Top-Level Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52
Dallas Regional Chamber, Leadership Dallas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56
Calendar of Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57 The Real Estate Council Photos: 2019 Giving Gala . . . . . . . . . . . . . . . . . . . . . . . . . . .58 The Real Estate Council, TREC Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59 View From the Top: Tony Joseph, President, McLaren North America . . . . . . . . . . . . 60
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Dallas-Fort Worth Real Estate Review® is published for The Dallas Regional Chamber and The Real Estate Council by D Magazine Partners, 750 N. St. Paul St., Ste. 2100, Dallas, TX 75201; www. dallaschamberpublications.com, 214.523.0300. ©2020 All rights reserved. No part of this publication may be reproduced or reprinted without written permission. Neither the Dallas Regional Chamber nor The Real Estate Council nor D Magazine Partners is a sponsor of, or committed to, the views expressed in these articles. The publisher is not responsible for unsolicited contributions.
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A letter from the Dallas Regional Chamber and The Real Estate Council 2020 CHAIRMAN OF THE BOARD John Olajide
OPPORTUNITY IS LOOKING SOUTH
President & CEO Axxess PRESIDENT & CEO
Dallas-Fort Worth continues one of the longest economic expansions on record. Southern Dallas has the most to gain from this growth, and it will only build upon the successes we have seen recently. The Real Estate Council has made a significant investment in the Forest District in South Dallas through the Dallas Catalyst Project. South Dallas is a neighborhood just a few miles from Downtown. The initial $1 million investment has more than doubled with St. Philipâ€™s School and Community Center, Cornerstone Community Development Corp., and CitySquare assisting in real estate development and neighborhood revitalization utilizing the principles of equitable development. TREC recently announced an additional $6 million investment from JPMorgan Chase & Co. to continue the equitable development work in three neighborhoods in southern Dallas. The Dallas Regional Chamber, thanks to a grant from JP Morgan Chase, gathered critical data about employers in the Southern Dallas Inland Port and is working with partners to connect workers and companies to transportation solutions. Dallas investor Peter Brodsky has made major strides in revitalizing Red Bird Mall, the largest in southern Dallas, into a major jobs center including the 500-person, 50,000-square-foot Chime Solutions call center. Chime Solutions is unique in that its philosophy is to improve low-income communities by creating stable jobs in low employment areas. The company will eventually occupy 100,000 square feet and employ 1,000 people. Workforce Solutions of Greater Dallasâ€™ largest services center is also moving into the main mall building and UT Southwestern Medical Center has leased 150,000 square feet and will convert it into an outpatient medical facility. It will focus on heart disease, cancer, neurological problems and behavioral health, and employ about 100 health care workers. Companies of all sizes and industries are also choosing Southern Dallas. Kroger, Kodiak Robotics, and Frito Lay/PepsiCo are seeing the business opportunity. Kroger plans to build one of its first automated warehouses in southern Dallas. The $50 million facility will use robotic and digital technology to fill online orders while also employing about
Dale Petroskey CHIEF OPERATING OFFICER & CHIEF FINANCIAL OFFICER Angela Farley COMMUNICATIONS & MARKETING, DALE PETROSKEY President and Chief Executive Officer Dallas Regional Chamber
LINDA McMAHON President and Chief Executive Officer The Real Estate Council
SENIOR VICE PRESIDENT Scott Goldstein RESEARCH AND INNOVATION,
400 people. Kodiak Robotics, a Silicon Valley-based startup, set up operations in Lancaster, which will serve as the base for its growing fleet of autonomous semi trucks. The new facility will provide freight testing, operations, and delivery. Frito-Lay/ PepsiCo continues to invest in southern Dallas, philanthropically, and through its business operations. Its Southern Dallas Thrives program aims to prepare kids for kindergarten, provide healthy meals to communities in need, and prepare high school students for college and a career. They are also creating new career opportunities in the community. In addition to having multiple facilities that employ hundreds of workers, they recently completed a $30 million renovation to a Gatorade plant located in southern Dallas. UNT Dallas, which opened in 2010, now has an enrollment of close to 4,000 students; it just opened a new $63 million student center and is the fastest-growing public university in Texas. Eighty-five percent of its students are minorities and almost all grew up in Dallas or surrounding suburbs. Seventy percent are the first in their families to go to college. Many of those looking for economic opportunity are now looking south. These companies and organizations are improving education, creating jobs, and developing workforce training. The Dallas Regional Chamber and The Real Estate Council are committed to enhancing the quality of life in our community, and we recognize that southern Dallas has become a true economic investment opportunity.
SENIOR VICE PRESIDENT Duane Dankesreiter RESEARCH AND INNOVATION, MANAGING DIRECTOR Eric Griffin
2020 CHAIRMAN Bill Cawley Cawley Partners CHAIRMAN-ELECT Mike Ablon PegasusAblon Properties PRESIDENT & CEO Linda McMahon VICE PRESIDENT, PROGRAMS, LEADERSHIP & CULTURE Holland Morris CFO Carla Brandt
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SHAPING THE FUTURE OF CITIES AT&T DISCOVERY DISTRICT
A letter from the Publisher
The new year has brought opportunities and challenges for the real estate community across all sectors. Whether it’s
QUINCY PRESTON Publisher Dallas-Fort Worth Real Estate Review
the multifamily sector rising to meet the needs of a booming population or the industrial sector finding innovative ways to accommodate growing demands for warehouse and fulfillment space, North Texas development and real estate professionals are hard at work finding solutions. Our cover story is on Frisco Station, a burgeoning mixed-use development that is ready to soar—literally—as one of the test sites for the Uber Elevate air taxi system. Frisco Station’s developers are focusing on mobility, wellness, and connectivity to attract new businesses and residents to live and work there. Writer Sandra Engelland tells us about Frisco Station in the Anatomy of a Deal feature beginning on Page 14. North Texas rapidly is becoming a mecca for financial services companies looking for a place with plenty of real estate to meet their needs. Writer Jeff Bounds tells us about how a strong talent pool is attracting expansions and relocations by such giants as Fidelity, Charles Schwab, State Farm, USAA, JPMorgan Chase, Capital One, and MoneyGram. Bounds’ report starts on Page 22. If it moves by road, rail, or air, it likely has come through DallasFort Worth. Writer Jim Fuquay takes us deep into the world of logistics and how North Texas is becoming an increasingly vital cog in moving goods across the nation and in developing new tech to make that job easier. With major airports, massive intermodal facilities, and a couple of the nation’s largest railroads, Dallas-Fort Worth is a region that delivers. You’ll find Fuquay’s report beginning on Page 28. As always, you’ll find the top leases in office and industrial in the Scorecard section beginning on Page 47, and the latest in North Texas construction projects in the Crane Report beginning on Page 39. You’ll find extended content on our website, www.dfwrealestatereview.com, and in our Facebook feed. We want to hear from you, so stay in touch.
Quincy Curé Preston Publisher
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A baseline for the region’s future
MEDIAN TWO BEDROOM RENT
2% $1,570 $1,470
$1,160 $1,140 $1,100 $1,080
Washington, DC Seattle
DALLAS METRO $1,600
DECEMBER 2019 RENTAL TRENDS:
Median Two Bedroom Rent Y/Y Rent Growth 3%
$1,000 $800 $600
$400 $200 0%
$0 McKinney Plano
DALLAS RENT GROWTH OVER PAST 12 MONTHS +3%
% RENT GROWTH
-1% DEC JAN 2018 2019
FEB MAR 2019 2019
MAY JUN 2019 2019
AUG SEP 2019 2019
NOV DEC 2019 2019
CAR-FREE COMMUNITY MAY BE ON TAP FOR DALLAS-FORT WORTH called Culdesac Tempe and it is expected to have 1,000 residents occupying 636 multifamily units without private cars or parking spots, according to Bisnow. The Tempe development is expected to launch in 2020, but
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no timeframe has been given for a DFW neighborhood. Culdesac’s goal is to remake cities for people, not cars, according to its website. The Arizona community plans to have retail and spots for visitors and car-based modes of transportation such as ridesharing.
Culdesac Tempe will be connected to other modes of transportation including the metro Phoenix light rail system and buses, plus bicycles and scooters. “The communities we are living in were optimized for the peak car era,” Culdesac CEO Ryan Johnson said. “Culdesac is building spaces for the post-car era.”
Source: Apartment List
A developer creating neighborhoods intentionally designed without areas for residents’ cars reportedly has plans to build a community in Dallas-Fort Worth. The developer, San Franciscobased Culdesac, has started work on one such community in Tempe, Arizona. The neighborhood is
Source: Apartment List
MEDIAN TWO BEDROOM RENT
Source: Apartment List
the past month and 2.2 percent over the past year. Even as rents rose moderately in Dallas, a few similar size cities across the nation have also experienced modest increases, Apartment List reports. Still, Dallas is more aff ordable than most comparable cities across the nation, it says. Rents increased slightly elsewhere in Texas with rent growth of 1.5 percent over the past year. For example, Apartment List says, rents have grown by 3.1 percent in Austin, 1.8 percent in San Antonio, and 0.6 percent in Houston. The report states that Dallas’ median two-bedroom rent of $1,136 is below the national average of $1,192. Nationwide, rents have grown by 1.4 percent in the past year compared to the 2.2 percent increase in Dallas. Many cities saw increases, including Phoenix (+3.8%), and Nashville (+3.0%), Apartment List says. And apartment renters will find more reasonable prices in Dallas than most other large cities, Apartment List says, citing San Francisco with its median rent of $3,088—as an example. That’s more than two-and-ahalf times the price in Dallas, the report states. -LM
Median Two Bedroom Rent Y/Y Rent Growth
DALLAS VS. NATIONAL COMPARISONS
Y/Y RENT GROWTH
As more multifamily living units came online in 2019, apartment rents in Dallas increased 2.2 percent year over year, but had trended flat late last year, according to a recent report from Apartment List, a platform that connects renters with apartment listings through an online marketplace. The entire metropolitan area has experienced rent increases, Apartment List says, with the 10 largest cities in the region all experiencing rises. Apartment List provides this look at how rents compare across some of the largest cities in North Texas. > Plano has the most expensive rents in the Dallas metro, with a two-bedroom median of $1,472; the city has also seen rent growth of 2.5 percent over the past year, the fastest in the metropolitan area. > Over the final month of 2019, Irving saw the biggest rent drop in the metro area, with a decline of 0.3 percent. Median two-bedrooms there cost $1,240, while one-bedrooms go for $998. > The city of Dallas has the least expensive rents in the Dallas-Fort Worth area, with a two-bedroom median of $1,136; rents increased 0.1 percent over
DECEMBER 2019 RENTAL TRENDS:
Y/Y RENT GROWTH
DALLAS RENTS ARE STILL A GOOD DEAL, DESPITE INCREASE YEAR OVER YEAR
F FOUNDATIONS REDEVELOPMENT
AIRPORTS SHOW A CLEAR LINK TO OVERALL GROWTH The airports in North Texas are, without a doubt, a major driver of our economy, and according to a snapshot by JLL Vice President of Research Walter Bialas, expansion of airport activity is a clear indicator of the region’s extraordinary growth this cycle. Bialas cites a report by the Dallas Business Journal that American Airlines’ growth exceeded expectations with more than 900 daily flights last summer—making Dallas Fort Worth International Airport the airline’s No. 2 hub behind Hartsfield in Atlanta. The region’s business environment is fueling travel in North Texas, he says. Just look at these numbers: • DFW enplanements—the number of people boarding airplanes—are close to 33
million, up 3.8 million since 2013. • Love Field passenger activity has doubled since the Wright Amendment was retired in 2014. • Cargo also is up markedly, fueling the region’s logistics businesses. Since 2013, DFW’s landed cargo has increased more than 40 percent, with Alliance up 45 percent–or a combined increase of 1.5 billion pounds of goods. Dallas Love Field, the home of Southwest Airlines, recorded 1.277 million passengers per month in 2018. Dallas Fort Worth International Airport has a yearly economic impact of roughly $37 billion and an associated payroll of $12.5 billion each year. Dallas Love Field continues to grow, and Alliance Airport in Fort Worth was the first and still largest industrial airport in the nation.
DFW ENPLANEMENTS (000,000s) 33.0 31.0 29.0 27.0 25.0
DFW CARGO POUNDS
4,500 4,000 3,500 3,000 2,500
LOVE FIELD ENPLANEMENTS (000,000s) 8
ALLIANCE CARGO POUNDS
HOW DEVELOPERS ARE RESHAPING 3 OLD MALLS FOR A NEW GENERATION What happens when those relics of the 1980s—shopping malls— have outlived consumer interests and fallen on hard times and rising vacancies? They get reimagined, repurposed, and repositioned to meet the needs of future generations—snatched up by developers looking for large tracts and big plans on how to redo them. After all, while some malls are continuing to be profi table enterprises, others have fallen by the wayside and became losing propositions for their owners. Real estate website Bisnow looked at how developers in Dallas-Fort Worth are handling three former iconic malls by turning them into desirable mixed-used developments. Some are adding medical office uses, retail, or residential developments. Some are tearing down and starting fresh. The report examined redevelopments at Collin Creek Mall in Plano, Valley View Mall in North Dallas, and Redbird Mall in South Dallas. VALLEY VIEW MALL Beck Ventures is undertaking a long-awaited redevelopment of the former mall near Interstate 635. For two decades, the mall was a real-life example of a dilapidated, low-traffic mall surrounded by newer retail developments. Beck’s project is called Dallas Midtown, and it’s designed as a gateway to central and North Dallas via high-end apartments, a luxury hotel, retail concepts, entertainment, and office space.
RENDERING: CENTURION AMERICAN DEVELOPMENT
1,000 900 800 700 600 2010
COLLIN CREEK MALL The mall opened four decades ago and was a popular destination for
shoppers in Plano, Frisco, North Dallas, and other northern cities. Developer Centurion American is currently undertaking a $1 billion redevelopment of the mall. Centurion plans to preserve the main corridor of the mall while tearing down all the big box retail shells—creating an open-air shopping concept with modern amenities and landscaping. The mixed-use development will be home to 300,000 square feet of indoor and outdoor retail development, 200,000 square feet of entertainment and services, 40,000 square feet of restaurants, 1.3 million square feet of office space and a 200-room luxury hotel. Plano Mayor Harry LaRosiliere called the redevelopment project a launching pad for revitalization of the U.S. Highway 75 corridor. REDBIRD MALL Now called Southwest Center Mall, South Dallas’ historic Redbird Mall has been the focus of revitalization eff orts for years. Bisnow says that Dallas investor Peter Brodsky’s plan for turning the mall into an entertainment and dining destination gained momentum last year with the announcement of plans to bring more medicaloffice type tenants to the center. The medical anchors should drive more traffic and feed off the redevelopment’s residential, office, and retail concepts. WHAT’S NEXT? To the north, Galleria Dallas owners recently released a proposed redo of that mall that would add more pedestrian and retail space and a smaller ice skating rink.
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F FOUNDATIONS INDUSTRIAL MARKET
INDUSTRIAL NOTES 4TH STRAIGHT YEAR OF POSITIVE ABSORPTION
MILLION SQUARE FEET
DALLAS-FORT WORTH INDUSTRIAL MARKET (Annual) 7.1
TOTAL NET ABSORPTION
Dallas-Fort Worth has grown by more than 2.5 million residents since 2010, CBRE says. The DFW market-wide vacancy rate increased by 19 basis points from the third quarter to 5.8 percent, but CBRE says that was because large speculative buildings came to market. Still, that’s well below the long-term market-wide average vacancy rate of 8 percent,
Source: CBRE Research
The industrial real estate sector in Dallas-Fort Worth remained strong in the fourth quarter, with 2019 closing as the fourth straight year of positive net absorption. The sector surpassed 20 million square feet in the industrial market, with more than 23.7 million square feet of demand posted in 2019. Real estate services firm CBRE reports that consumer goods, e-commerce, and third-party logistics companies led demand in North Texas in 2019. CBRE research says that it tracked more than 17 million square feet of active occupier requirements at the end of 2019. It says that the driving forces in North Texas industrial were extensive intermodal infrastructures, lower-thanaverage costs of doing business, a booming population, and a prosperous regional economy. Citing the Bureau of Labor Statistics, CBRE says that employment in North Texas grew by 120,700 non-seasonally adjusted jobs in the year ending in November 2019. That’s 3.2 percent growth year over year, CBRE says. Oxford Economics reports that
CBRE reports. What about the construction pipeline in Q4? The pipeline retracted over Q4, totaling 23.5 million square feet of space at the end of the year. Meanwhile, product under construction was 15.5 percent pre-committed, which is lower than typical long-term pre-leasing rates, CBRE says. Also, starts went from
9.3 million square feet in Q3 to 5.7 million square feet in the fourth quarter. The North Fort Worth market saw the highest concentration of product underway, CBRE says, with slightly more than 12 million square feet of projects being tracked at the end of the year. Deliveries in Q4 totaled 10 million square feet—63.2 percent of which was pre-leased. For the whole year, deliveries totaled 25.1 million square feet of space with an average pre-leased rate of 63.4 percent. Real estate information company CoStar gave a similar analysis, reporting that the Northeast Tarrant-Alliance submarket has added more new industrial space than many markets in the region. Over the past 12 months, that submarket saw 3.4 million square feet of new construction and 3.1 million square feet of positive net absorption. CoStar said that made for a balanced but high-growth area. Since 2010, CoStar says that the Northeast Tarrant-Alliance submarket has been a hotbed for development, adding 17 million square feet of industrial space.
DFW RETAIL OCCUPANCY HITS HIGH POINT, CONSTRUCTION REMAINS LOW Dallas-Fort Worth’s retail occupancy rate at year’s end was 93 percent—the seventh straight year of near-record occupancy. That’s the highest figure since 1981, according to the Weitzman 2020 Retail Forecast. “Our strong occupancy is not a fluke,” Weitzman Executive Managing Director Robert Young said when he delivered the report to an audience at the George W. Bush Presidential Center. “This is the most geographically balanced retail market we’ve seen in our history. Almost every single one of our submarkets is healthy.”
ROBERT YOUNG, EXECUTIVE MANAGING DIRECTOR, WEITZMAN
Every year, Weitzman makes a comprehensive review of DallasFort Worth’s total retail market inventory of roughly 200.5 million square feet of space in projects that have 25,000 square feet or more. Young told the audience that data shows that restaurants are the most valuable player of retail leasing, the low construction market is here to stay for the foreseeable future, and the convergence of physical and digital retail is paying off, according to a report in D CEO. “And, all of our indicators point that 2020 will be the eighth year in a row,” Young says. Young notes that Dallas-Fort Worth has had some areas that are booming, such as North Fort Worth and Collin County, and other longestablished urban markets that have limited growth and barely break 85 percent occupancy. “But now, our retail stability is shared throughout DFW,” he says. Young notes that, “marketwide
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residential growth has created retail demand and boosted existing retail centers.” He says, “For the first time in our survey’s 45-year history, every single category reported occupancy above 90 percent—even struggling Redbird Mall in Dallas saw a boost.” Weitzman’s data show that malls rose to 90.6 percent with several new anchors such as fitness, medical, and grocery, D CEO reports. “This past year proved that malls are good real estate, just not necessarily good retail real estate,” Young says. Small strip centers reported occupancy above 90 percent for the second year in a row, according to Weitzman’s report. Young says that the multifamily boom is responsible because new residential properties drive retail demand, and developers such as Weitzman are renovating older centers. D CEO notes that Weitzman itself is renovating 14 centers with a program they call “life-styling the strip center,” where they add
pedestrian-friendly elements such as green space, patios, seating areas, and arbors. So-called power centers had occupancy of 95.1 percent and reported nearly 60,000 square feet of net new leasing, which was more than any other category. Weitzman’s report also shows that construction was down in 2019. “During 2019, despite our tight retail market amid the country’s best economy, we actually saw a decline in new space,” Young says. The report shows that new and expanding retail centers totaled 1.8 million square feet last year, compared to 3.5 million square feet in 2018. That decline reflects a trend of limited anchor expansions, existing project renovations and redevelopments, diligent lending standards, the rise of construction costs, and smaller retail projects, D CEO reports. What does Young forecast for 2020? Retail occupancy will reach 95 percent, and it will be a year for low construction. —LM
F FOUNDATIONS INNOVATION
RICHARDSON BRANDS ITS NEW INNOVATION QUARTER—THE IQ AT THE BRANDING ANNOUNCEMENT, OFFICIALS ENCOURAGED THE CROWD TO GRAB A FLAG AND “PUT YOURSELF IN THE DISTRICT.”
PHOTO: DALLAS INNOVATES
The 1,200-acre innovation district in Richardson has a new name and a new identity, the Richardson Innovation Quarter— The IQ for short—and city officials say that new zoning rules in the area could make it a magnet for innovators. The new name and brand for the Richardson Innovation Quarter was announced in January by officials from the city, the Richardson Chamber of Commerce, and the Collins/Arapaho Task Force. The announcement comes after the Richardson City Council in December approved rezoning for higher density development and a variety of uses that provide a foundation for an innovationfocused, urban mixed-use environment. “What we’ve done is basically taken the handcuffs off of the landowners here,” Richardson Mayor Paul Voelker said at the announcement ceremony. “Through form-based zoning we allowed them to decide what the market conditions and the market opportunities are. We don’t tell them who to go recruit, we just say here’s our expectations of the level of effort, quality, and the ability for us to create a place.” Voelker says the city’s vision gives it flexibility. “My view of The IQ is we’re going to take our economic development strategy as a city and literally turn it upside down,” Voelker says. “So
instead of doing a company for $400 million, [we can] spend $40 million to help 400 companies that can become that.” The mayor envisions The IQ as a place that attracts top innovators and talent to the city. “The place we’ve created here is a ‘live, work, invent’ place,” Voelker says. “Whether you’re from UT Dallas, SMU, UT Arlington, UT Southwestern, when you get that wonderful Ph.D. degree and you’re thinking ‘I created some intellectual property at that university.’ I want you to think about The IQ as the place to come, commercialize the development, build the company, and then stay here.” Voelker says he’s ready to spread the message about The IQ. “I need you to tell people, ‘hey, this is the place you can come and
collaborate—work, invent, and commercialize those ideas — to create true value.” Work began on the district after the city produced a vision and strategy study in 2018 that laid out actions and recommendations for the area. “With that study that the city helped fund, we came up with a new zoning code—a form-based zoning code for the entire district, and that really converted it from all industrial uses to the mix of uses that we were looking for,” Bryan Marsh, chairman of the Collins/Arapaho Task Force, says. He says the branding will encourage private investors in the area as well as public investment. The task force developed a process before presenting a final report to City Council that defined the area of the innovation district.
Marsh says the public should notice changes in coming years. Marsh says the district has a long way to go, but said the announcement “is really like the end of the beginning.” Generally bounded by Central Expressway, Campbell Road, Plano Road, and Apollo Road, The IQ is in the heart of what is has become known as the Telecom Corridor. Marsh says that one of most important tasks was to come up with a brand name that would help in marketing the district. Dodd Creative Group was hired to oversee the branding effort for the new district. “The Chamber gave us a threepart assignment: to help advance this redevelopment project, changing the message, and the logo,” Ben Rush, creative director for Dodd Creative Group says. “The innovation district is a place where special things happen,” he says. “It boasts a rich heritage of innovation and entrepreneurship.” The Arapaho Center DART Station sits within the district and the city says it serves as a major opportunity site for new transitoriented development. Well-known tech companies already have offices and operations in The IQ’s boundaries, including video game giant id Software, LINTEC, Zyvex, Honeywell, Raytheon, Digital Realty, Ericsson, Verizon, Siemens, and Argo Data.
DFW OFFICE SECTOR KEEPS ITS POSITIVE STREAK ALIVE Dallas-Fort Worth closed 2019 with the seventh consecutive quarter of positive absorption in the office market, according to research from the real estate services firm CBRE. Net demand in the fourth quarter was 1.48 million square feet of space, CBRE says. The year ended with 3.5 million square feet of absorption for the 12-month period, most of which was Class A space, CBRE says. That trend was driven by the delivery of high-quality space in the market and many tenants wanting to gain more efficiency space configurations, the firm says. And, as office projects continue strong in DFW, so does the number of jobs being created. Dallas-Fort Worth maintained robust job
growth by adding 107,300 nonfarm jobs since October 2018, a 2.9 percent annualized gain, according to the Bureau of Labor Statistics. CBRE says the biggest move-in for the final quarter was Pioneer Natural Resources, which moved in December into its new home in a high-tech, 1.1 million-squarefoot building at the Hidden Ridge development in the Las Colina business park of Irving. Fourth-quarter construction was solid, CBRE says, even with a drop in square footage from the previous quarter. There are 28 current projects being built in Dallas-Fort Worth, according to CBRE. Seven new projects broke ground in the fourth quarter,
bringing with them 4,623,194 square feet of new office space that is 31 percent pre-leased. Five new deliveries were recorded in the quarter totaling 1,622,856 square feet, including the Pioneer Natural Resources building, Frisco Station’s The Offices Two, Offices at the Realm in Lewisville, Westridge Park Phase 1 in Irving, and The Redbird Offices in South Dallas, according to CBRE. Even though the past decade began at the end of the Great Recession, Dallas-Fort Worth showed that it weathered that economic storm and showed 31 million square feet of net absorption since 2010, according to CBRE. Demand remained positive
every year and peaked in 2015 and 2016 at 5.22 and 5.28 million square feet of absorption—the net change in physically occupied space between the current measurement period and the last measurement period— respectively. CBRE says that vacancy remained flat in the decade, dropping 75 basis points during the past 10 years because of the 25 million square feet of delivered space in that timeframe. CBRE says that new inventory led to a flight-to-quality—leaving older space for newer—for speculative and build-to-suit projects. Average asking rents have grown 34 percent since 2010, despite flat vacancy, CBRE reports.
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PROOF From its literal hay-days start to its future as a high-tech testing ground for air taxis, Frisco Station aims to grow with its Star neighbor next door.
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A ANATOMY OF A DEAL BY SANDR A ENGELL AND
Long before tollways, office parks, upscale neighborhoods, high-volume retailers, and major league sports complexes, a large open field in south Frisco produced one thing. High quality hay. Owned by the Rudman Partnership since 1962, the hay field was edged by trees and dotted with ponds that also made it a prime bird-hunting spot. Frisco Mayor Jeff Cheney recalls seeing a sign as he drove along Lebanon Road in the early 2000s: “For Hay Call Trey.” Today, the hay sign is gone, but a few bales remain tucked in open spaces between buildings rising up from the prairie. The acreage just west of the Dallas North Tollway now is Frisco Station, a burgeoning mixed-use development that received a kick start from its famous neighbor, The Star. When the Dallas Cowboys selected Frisco for the Dallas Cowboys World Headquarters and broke ground on The Star development in 2014, the adjacent land quickly became prime real estate. Since the 242-acre Frisco Station site wraps around The Star on the north and west sides, the location quickly became a sought-after location for development. “When The Star was announced, it really transformed the vision for that area,” Cheney says. “What we originally thought would be low-rise offices shifted gears to really make it an 18-hour district with offices, retail, restaurants, and urban living.” Rudman Partnership General Manager Trey Sibley no longer was known in Frisco so much for hay but for his management of the family land business that owns more than 6,000 acres in Texas and 17,000 nationwide. At one time, the Rudman Partnership owned 700 acres on either side of what became the Dallas North Tollway, stretching all the way eastward to Preston Road. Sibley worked with city and regional officials when the Tollway extended north to Highway 380, discussing exits and future connecting roads, a stretch completed in 2007. About six years later, Sibley learned that Frisco city officials were courting the Cowboys for the city-owned 91 acres adjacent to Rudman’s land. “When they were successful, we knew this was going to be a central area for development, and it was time for us to start developing,” he says. REAL ESTATE DREAM TEAM Even before the Cowboys announced their Frisco plans in August 2013, Sibley had suitors wanting to develop the land. He worked for a year in 2011-12 with city officials and others trying to land Nebraska Furniture Mart. He says he believes the group came close before The Colony won the mega furniture store that opened in 2015. Sibley believes the Cowboys headquarters more than made up for the disappointment over the loss of the retail giant because of all the possibilities The Star opened up. The Star includes the Cowboys’ offices, the Ford Center (a state-of-the-art practice facility which also hosts Frisco ISD high school football and soccer, along with other sporting events), shops, restaurants, the Omni Hotel, and Baylor Scott & White Sports Therapy and Research Center. The Rudman property wrapped around The Star, and Sibley and city officials envisioned an upscale mixed-use This sign and a few bales of hay are all development focused on the cutting edge of technology that used to occupy and wellness. the land where Frisco Station is designed around three pillars: smart, Frisco Station is creative, and healthy, with land set aside for working, being built.
K E Y P L AY E R S MASTER PLANNER/ARCHITECT: CALLISON RTKL FOR THE FIRST THREE OFFICE BUILDINGS AT FRISCO STATION DEVELOPER: VANTRUST REAL ESTATE ARCHITECT: HKS CONSTRUCTION: MANHATTAN CONSTRUCTION GENERAL CONTRACTOR: JE DUNN OTHER KEY PLAYERS LANDSCAPE DESIGN: STUDIO OUTSIDE ENGINEER: KIMLEY-HORN ARCHITECTS: BOKA POWELL JHP URBAN DESIGN LEASING: CUSHMAN & WAKEFIELD
living, and playing. The plan includes 5 million square feet of Class A office space with 15,000 employees on site; 2,400 units of urban living multifamily housing; four hotels; 30 acres of parks and trails; 500,000 square feet for medical, fitness, and spa facilities; and The Hub, which will feature dining, shopping, and entertainment options. Hillwood came in as a partner in 2014 to oversee the master plan and to develop the retail and urban living portions of the property while VanTrust Real Estate joined the team to develop commercial office space. Hillwood, owned by Ross Perot Jr., has dozens of developments in North Texas, from mammoth AllianceTexas and Circle T to Victory Park. VanTrust Real Estate, started by the Van Tuyl family who once operated the nation’s largest privately owned auto dealership, has developed office space in the McKinney Corporate Center and the Craig Ranch mixed-use development.
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A ANATOMY OF A DEAL FRISCO STATION MASTERPLAN
SOURCE: FRISCO STATION
The company has other office, industrial, retail, and multifamily developments nationwide, with many of the sites in the Kansas City area. “Being able to say that the sponsorship of Frisco Station involves the Rudman, Perot, and Van Tuyl families is important,” Sibley says. “We have a very high quality standard we expect in our projects.” With Rudman Partnership’s “slow, disciplined approach” to the market, Sibley says he was comfortable letting the property remain a hay field for 50 years to wait for just the right opportunities. Involving Hillwood and VanTrust meant the development would continue to focus on the long game. Sibley calls the partnership “a dream team” in terms of capital and planning compared to
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the difficulties nearby Wade Park experienced when the original developer struggled to pay contractors and suppliers. Wade Park broke ground in 2014 and initially had Whole Foods, iPic Theaters, and Hotel ZaZa lined up before construction stalled in that project’s early phases. “It’s not just money you’re after,” Sibley says. “This is our backyard, and we don’t want anything negative tied to our name in our backyard.” Robert Folzenlogen, senior vice president with Hillwood, says, “We came in due to our experience in larger long-term master-planned development.” Hillwood team members helped create the vision from scratch, focusing on multiple uses and forward-thinking technology and mobility, Folzenlogen says. Chris McCluskey, vice president of development for VanTrust, says the opportunity to partner with Hillwood and Rudman made the project more attractive because of their access to capital and long-term approach to development. VanTrust officials also wanted a presence in Frisco. “Frisco is the hottest market in North Texas and the fifth fastest-growing city in the U.S.,” McCluskey says. Construction crews broke ground on the $1.8 billion Frisco Station in 2015.
SEE YOURSELF IN FRISCO
Imagine living and working in Frisco, Texas. It’s 25 miles from DFW International Airport and downtown Dallas, and eight professional sports organizations call Frisco home. Imagine working with a highly-educated, robust talent pipeline, and sending your kids to one of the most sought-after public school systems in America. Can you see yourself in Frisco? You’ll fit right in.
Visit FriscoEDC.com to find out more.
Frisco Economic Development Corporation
A ANATOMY OF A DEAL
ECONOMIC INCENTIVES Before the developer can receive any incentive payments, they must first deliver the following:
The Offices One, a 230,000-square-foot seven-story complex, was the first building completed in December 2017. At the end of 2019, Frisco Station had The Offices One at 98 percent leased, similar sized The Offices Two nearly completed and 35 percent leased, the Station House urban living apartments open and 98 percent of its 301 units leased, the 25-story SkyHouse at Frisco Station just open with more than 50 of 332 units leased, and a Residence Inn and AC Hotel open. For 2020, Folzenlogen says he expects completion of a Canopy Hotel by Hilton, construction on the first part of The Hub’s restaurant, retail, and entertainment center to begin in the summer, continued construction on another urban living complex, and the beginning of construction on a third office building. The start of construction on The Offices Three was announced in late January with completion set for late 2021. A DIFFERENT APPROACH TO TECHNOLOGY When the planning team started looking at what would make Frisco Station successful over the long haul, they kept coming back to the importance of connectivity and mobility. Why? Because today’s employers and employees want easy access to technology and transportation on demand. Russell Laughlin, executive vice president of Hillwood, says, “We are in a human capital fight. You have to think about how you help companies recruit and retain talented people.” The office buildings at Frisco Station feature amenities such as on-site fitness centers, indoor and outdoor gathering places, dedicated conference centers, “grab and go” food and drink vending areas, and more. VanTrust’s McCluskey says, “We know the amenities in the offices are important to our tenants and their talent acquisition and retention strategies. In the past, the name of the game was about cost of the space, and we would tour CEOs and CFOs. Now, it’s all about talent, and the final tour for any space will usually be the CEO and Head of HR.” For conducting business in the 21st century, access to technology is increasing in importance and volume. The Offices One is one of seven buildings in Dallas-Fort Worth to receive WiredScore’s Wired Certified Platinum rating. Similar to LEED certification in building practices, Wired Certified Platinum indicates the structure was designed with best available and future connectivity in mind.
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PHOTO: FRISCO STATION
FRISCO STATION IS NEXT TO THE STAR IN FRISCO
■ 250,000 SF of retail, entertainment, hotel, restaurant space ■ 400,000 SF of class A office space ■ Dedication of all public rights-ofway at no cost ■ Payment of all taxes due on property and development Incentives which are reimbursements after performance metrics have been met are: ■ ½ of City Sales Tax generated within the Frisco Station Development and actually collected by the City ■ ½ of City Ad Valorem Tax generated within the Frisco Station Development and actually collected by the City ■ ½ of CDC Sales Tax generated within the Frisco Station Development and actually collected by the City ■ ½ of EDC Sales Tax generated within the Frisco Station Development and actually collected by the City All of the above stops on 12-31-2041 —OR—upon hitting the caps. *EDC – Economic Development Corporation *CDC – Community Development Corporation
During construction, contractors placed fiber optic cable in the ground and in buildings and left dedicated spaces for future improvements. “We’re thinking about the infrastructure differently to future-proof these projects. It’s all about data,” Folzenlogen says. To meet the high data requirements of businesses and residents, Frisco Station officials are
TEXAS DESTINATION FOR
Keri Samford, Executive Director of Development 972.624.3127 • firstname.lastname@example.org • www.TheColonyEDC.org
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HUB OF TRANSPORTATION Forward-thinking leaders, developers place Frisco at the forefront of the future of transportation on the ground and in the air. BY SANDR A ENGELL AND
The developers of Frisco Station envision a day not too far in the future when people have many more transportation options and own fewer cars. They’re not waiting for some solution to just show up in a few years; they’re actively working to accommodate and test new modes of mobility. “One of our biggest challenges is the next generation of mobility,” says Russell Laughlin, executive vice president of Hillwood. “When we started in 2014 and 2015, that wasn’t defined yet.” Frisco Mayor Jeff Cheney put it this way: “In the next 10 years it’s going to evolve more than in the last 50.” To prepare themselves for the mobility evolution, Frisco Station partners began working with officials from the city of Frisco, Dallas County Transit Authority, the Dallas Cowboys, and Hall Office Park to form a private transportation management authority (TMA). Laughlin says they wanted to come up with forward-thinking solutions. They knew it would include on-demand options and a variety of vehicles, from short-haul scooters or bikes to urban air taxis. One likely possibility is driverless cars, so they sought out a partnership to test the vehicles, with drive.ai running a pilot program for eight months, from July 2018 to March 2019. By focusing on new technology like third-party automated vehicles and services such as Uber and Lyft, cities like Frisco avoid the pitfalls of light rail and
FRISCO STATION’S DEVELOPERS ARE LOOKING AT FORWARD-THINKING TRANSPORTATION SOLUTIONS AS THEY BUILD THE DEVELOPMENT.
partnering with AT&T to provide 5G Evolution technology throughout the development. Folzenlogen says, “We want to provide the most robust digital platform available.” Eventually, 5G technology is expected to be an exponential change. According to AT&T, 5G Evolution initially will be twice as fast as the current standard, with indications from other industry sources of future speeds 100 times as fast. It also allows for many more devices connecting and using data in a limited area. Because 5G operates at a micro wavelength instead of the macro wavelength of previous cell phone technology, it will require small cell stations located every few hundred feet in urban areas, according to tech news site Digital Trends. Mini base stations can be mounted on top of streetlights or on the sides of buildings. At Frisco Station, the first three small cell stations mounted on poles were scheduled for installation before the end of January, with 15 to 20 total planned throughout the development, Folzenlogen says. Cheney says that 5G is “really going to start rolling” in 2020. A robust digital infrastructure will continue to attract businesses to Frisco Station. “Planning their whole campus around that gives them a real advantage,” Cheney says. Improvements in technology also make possible cutting-edge mobility options such as driverless cars and buses, smart traffic lights, and, eventually on-demand air taxis (see sidebar). “Everyone believes that smart vehicles would need to be 5G enabled. It allows you to get to the next generation of A.I.,” Laughlin says. From July 2018 to March 2019, autonomous vehicles from drive.ai operated at Frisco Station, The Star, and the adjacent Hall Office Park through a pilot program. Frisco Station also is the site of the first urban air taxi “vertiport” in Texas, a testing ground for Uber Elevate. From easy mobility and high-speed data everywhere to upscale amenities and a wellness focus for those who work and live at Frisco Station, the former hay field is designed to appeal to the modern workforce. “Our job is to make sure to provide the lifestyle and amenities that employees want so they want to stay,” Sibley says.
A ANATOMY OF A DEAL
FRISCO STATION AND ALLIANCETEXAS WILL BE TWO OF THE TEST SITES FOR THE NEW UBER ELEVATE AIR TAXI SYSTEM THAT SOON COULD BE FLYING OVER NORTH TEXAS.
municipal buses, Laughlin says. Rail service requires a commitment to a route with fixed stops, and buses need drivers, maintenance, and storage. Both options require a big investment of public funds. The TMA partners were looking for scalable options done with third-party capital. Autonomous cars or buses can go where the need is greatest instead of being tied to a fixed stop. Officials with Hillwood have been looking at emerging transportation technology for decades at AllianceTexas, Laughlin says. In June, company officials announced the establishment of the AllianceTexas Mobility Innovation Zone, which will provide a testbed for emerging transportation technologies such as automated vehicles, urban air taxis, and drone delivery services. It was that desire to be part of the future of transportation that caught the eye of officials with Uber Elevate, says Wyatt Smith, head of business development for Uber Elevate. The availability of both Alliance Airport in Fort Worth and Frisco Station for testing phases is one of the aspects that made Dallas-Fort Worth an attractive test market for Uber Elevate. Dallas-Fort Worth, the Los Angeles area, and Melbourne, Australia, are the company’s designated test sites. Smith says, “We want to bring safe, reliable flights to the Uber platform.” The goal is to begin offering commercial flights in 2023, but that benchmark is dependent on approval from the Federal Aviation Administration. A number of aerospace companies, including Bell in Fort Worth, are competing to develop the electric vertical takeoff and landing vehicles (eVTOL). Frisco Station has the region’s first urban air taxi “vertiport,” a larger version of a helipad, located between Gaylord Parkway and the Dallas North Tollway. Laughlin says, “We’ve delivered the first vertiport with the sole and exclusive purpose to fly and test an eVTOL network.”
On the property’s master plan, that area is designated for office buildings up to 30 stories high. Eventually, the vertiport will be relocated to the top of one of the buildings, Laughlin says. Smith says the testing will be phased in over time, starting with hover tests and forward flight over unpopulated areas before any eVTOLs are tested in Frisco. In the meantime, Hillwood officials plan to test helicopter flights from the site to find the best routes. The payoff would be an under 10-minute trip from Frisco Station to Dallas Fort Worth International Airport instead of 30 to 40 minutes in traffic. With automated cars, on-demand vans and buses, and urban air taxis, officials expect Frisco Station’s future employees and residents to own fewer cars. Laughlin says that planning already is underway for future conversions of parking structures for more open space or other uses. “If you’re helping lead the future of mobility—although you can’t predict exactly where it will lead but stay in the forefront—that leads to winning the battle for human capital,” Laughlin says.
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FINANCIAL TALENTPOOL BY JEFF BOUNDS
PHOTO: KIRILL SMYSLOV VIA ISTOCK
Much like it did in the last decade, North Texas could continue seeing financial services firms shift more operations here in the 2020s. By Jim Fuquay To understand why, consider what happened when one of them brought a large accounting function here 15-plus years ago. With the move came the creation in Goldman Sachs’ Dallas office of a “center of excellence” in fund accounting, or overall financial control and reporting for the investment bank. “This resulted in operating efficiencies and supporting more platforms within the firm,” says Tom Dowling, a partner at New York-based Goldman, which now employs 2,000 people across 363,000 square feet of space locally. “We have continued to expand on this success, resulting in additional migration of functions to Dallas,” Dowling says. “We anticipate this to continue into the future.” Staffing firm Robert Half estimates that financial services jobs have grown 10-plus percent annually in Dallas-Fort Worth. That’s a high bar. “This is the best job market we’ve seen in 20 years, and Dallas is leading the way,” says Mark Malone, senior regional vice president for Robert Half. But more expansion may be coming. The reason, according to experts: North Texas is uniquely suited to help finance companies do automation-related business overhauls to deal with emerging rivals in financial technology, or fintech. San Francisco’s Social Finance, for instance, vies with banks by offering two-minute loan applications to consumers. “The tech and financial services industries are competing for the same employee skills,” Cushman & Wakefield Director Ryan Hoopes says. “DFW is becoming one of the dominant hubs for attracting technical talent in the country. So it’s natural to expect the area’s financial services footprint to expand in tandem with technology’s growth in the market.”
Partly because the region’s cost of living is half that of more ballyhooed spots like San Francisco, some 22,560 technical types came to DFW from outside the region between 2011 and 2015, according to CBRE data cited by the Dallas Regional Chamber. If the newcomers were a city, they’d be the sixth-largest in Collin County. All told the region added 40,000 jobs between 2011 and 2015, and another 30,000 between 2015 and 2019. Today it numbers 228,757, or roughly the size of Durham, North Carolina. While technology workers are vital, finance companies also come here to find employees with specialized, business-related skills. North Texas boasts 228,568 financial workers such as accountants and credit analysts, and 276,637 other professionals who help highly regulated industries like commercial banks in areas like complying with laws and regulations. “More than 35 business units within Fidelity Investments have operations in the area,” says Isaac Brown, vice president, assistant general counsel and regional leader at the Boston-based investment giant. Since establishing a Texas presence in 1983, Fidelity has grown its local operation to 5,300 people, spanning a million square feet of space at a regional office in Westlake and five investor centers. “With more than 30 colleges,
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universities, community colleges, and technical and trade schools, North Texas is a central hub of talent for the entire United States,” Brown says.
GOING DIGITAL AIN’T EASY As in any industry, money companies are snapping up local real estate because of the rapid change they’re going through. “Financial services companies’ footprints have changed more dramatically in the last 10 years than in the previous 50,” Hoopes says. With consumers doing more banking online, for instance, lenders by 2016 had shrunk branches to an average 2,700 square feet, versus 3,900 in 2003, according to Bancology data he cited. “In the past, banks demanded footprints of around 4,000 to 5,000 square feet.” With expertise at hand in both finance and tech, players like Dallas-based MoneyGram International have responded to the changing landscape partly by opening research-and-development shops here. The money-transfer firm’s Innovation Lab builds and tests new digital tools within a larger Experience Center in Dallas where it shows customers offerings such as biometric facial recognition and virtual reality. Located near its headquarters in Dallas and its Frisco operation, the lab allows MoneyGram employees to participate in testing and implementing new technologies, says Cory Feinberg, associate general counsel and head of litigation and real estate.
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“DFWISBECOMINGONEOFTHE DOMINANTHUBSFORATTRACTING TECHNICALTALENTINTHECOUNTRY.” —RYAN HOOPES, DIRECTOR, CUSHMAN & WAKEFIELD
“We’ve put a high importance on tech innovation and new product development, from data analytics to artificial intelligence and robotics,” says Feinberg, whose company employs 530 locally across a total of 146,425 square feet. “The Innovation Lab is where people and ideas come together to make it possible.” A Richardson startup, Hedera Hashgraph, is working with large firms like IBM and Boeing on final testing of a distributed ledger technology network that it says may make financial transactions faster and less expensive. Company officials have said their technology may be a better alternative to blockchain, according to Dallas Innovates. Hedera’s system aims to create an electronic record proving for all parties to a deal that one side paid a given amount to another at a particular date and time. In September 2019, Hedera started allowing outside developers to write application software to run on its network. A drug development company hopes to eventually use both Hedera’s network and a private one for “tamper proof” recording of health data transactions, according to CoinDesk, a trade publication. Hedera, which Reuters reports raised at least $124 million, is one of several well-funded fintech startups that have taken advantage of the region’s reasonably-priced real estate. Modo, which makes payment technology for large businesses, leases roughly 3,000 square feet in a coworking space in Richardson, according to Lindy Singer, chief marketing officer and chief of staff.
NOTABLEFINANCIAL COMPANIESIN DALLAS-FORTWORTH INVESTMENTS
PHOTO: MICHAEL SAMPLES
DESCRIPTION: Founded in 1946 in Boston, Fidelity Investments is a privately-held financial juggernaut that has more than 50,000 employees globally. Fidelity opened its 337-acre campus in Westlake in 2001 and it is now the largest of the company’s regional operations with more than 5,600 employees on site. HEADQUARTERS: Boston FOUNDERS/TOP EXEC: Abigail Johnson, chairman and CEO
CHARLES SCHWAB CORP. Having raised a bit more than $16 million, the company has 15 employees in Dallas-Fort Worth and roughly the same number who work remotely nationwide, she says. “There are loads of payments and financial services companies in DFW,” Singer says. “It’s great to be in good company not only for others in our industry, but also to be surrounded by enterprises we’re able to serve with our platform.”
IN CYBERSECURITY, BOTH THREATS AND OPPORTUNITIES New technologies such as fintech often call for advancements in cybersecurity, and may foster more cybersecurity jobs in Dallas-Fort Worth. “A lot of the big names have gotten hacked,” says Thomas Vick, regional vice president at Robert Half. Financial services suffers four times as many breaches as other industries, according to Frederick Chang, director of the Darwin Deason Institute for Cyber Security at Southern Methodist University. “The problem is compounded by firms offering various innovative online and mobile banking services,” says Chang, who also heads up SMU’s computer sciences department. “As a matter of convenience, people want to have 24-7 access. It’s sort of opening threat vectors that hackers like to use.” Perhaps for reasons of cost and ease of travel nationally, some large finance players have established security operations in DFW. Irving, for instance, is where Citi has put one of its two global security operations centers. Bank of America has a cybersecurity team in Addison. Chang declined to discuss which companies are doing what in that regard, but did say that Texas alone had 43,000 job openings in that field in October. In response, SMU is slated to start accepting applications for a new online master’s degree in cybersecurity. That is a parallel program to a campus-based master’s in security engineering the school has offered for roughly 15 years. “Our degree programs aren’t tailored to financial services, but many of our graduates go to work for firms in that industry,” Chang says. “We’re discussing the cybersecurity skills gap with companies in DFW and seeking their ideas and assistance in addressing the problem.” SMU is one of several local schools working with industry to better train students in the skills employers need.
DESCRIPTION: The Charles Schwab Corp. is a major bank and stock brokerage firm that is currently based in San Francisco. In November 2019, Schwab announced that it was buying T.D. Ameritrade and that it would move the headquarters of the combined companies to Westlake, where it has built a 70-acre lakeside campus that can house roughly 7,000 workers. HEADQUARTERS: San Fransisco (for now) FOUNDERS/TOP EXEC: Charles R. Schwab, Chairman
STATE FARM DESCRIPTION: State Farm is the largest property and casualty insurance provider in the nation and is the third-largest auto insurance provider. In 2016, State Farm opened a 2.1 million-square-foot campus at Cityline in Richardson. The campus accommodates more than 8,000 employees. HEADQUARTERS: Bloomington, Illinois FOUNDERS/TOP EXEC: Michael Tipsord, chairman, president, and CEO
MONEYGRAM DESCRIPTION: Dallas-based MoneyGram is an international money transfer and global payments company. It moved its headquarters from Minneapolis to Dallas in 2010 and has roughly 2,400 employees. In 2018, MoneyGram opened its MoneyGram Experience Center in Dallas that is designed to showcase the company’s latest cutting-edge technologies. HEADQUARTERS: Dallas FOUNDERS/TOP EXEC: Alex Holmes, chairman and CEO
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WHY DFW IS AN INSURANCE HUB After insurer State Farm chose Richardson to anchor a regional hub, it forged an intern program with the University of Texas at Dallas. The program brings in students in computer science and other programs to work on campus at State Farm space, with access to the company’s facilities, says Angie Harrier, spokesperson for the Illinois-based carrier. Interns are paid employees. “The goal of the internship program is to transition viable talent from the university into professional roles within our company,” she says. State Farm leases 2.9 million square feet of space in DFW for 9,600 local employees. It’s a similar story at USAA, the San Antonio insurer that leases a combined 456,865 square feet across Plano and Addison for 1,686 employees in North Texas. “In our Plano office, we recruit business and technical students into summer internships and full-time positions by leveraging
universities in the DFW area,” says Tiffany Edmonds, communications manager, corporate communications. “With this growth, USAA deepens our relationships with schools and explores new opportunities where we can acquire top talent for our evolving business needs.” Hiring events frequently result in companies snapping up graduates for jobs in accounts payable and receivable, payroll, staff accountants, financial analysts and tax associates, says Emily Burroughs, executive director of marketing at BG Staffing, a Plano-based recruiting company. “Entry level opportunities are popping up at a staggering rate,” she says.
FINANCE TO FOLLOW TECH JPMorgan Chase has 22 interns from Dallas’ Paul Quinn College as part of its Advancing Black Pathways program, through which America’s largest finance company will hire 4,000 African-American students nationally over the next five years. “There is a deep pool of talent here of well-trained, highly motivated workers who are ready to roll up their sleeves and give our clients the incredible product and services they deserve,” says Steve Hemperly, managing director, consumer community banking operations executive and DFW location leader for JPMorgan Chase. The bank, whose roots in Dallas go back 100 years, is adding a 12-story building that will give its Plano campus capacity for nearly 11,000 people upon completion in 2021. At the moment it has 12,500 DFW employees across 3.5 million square feet of space.
Bank of Texas
DETAILS: Wednesday, February 26, 2020 11:30 a.m. to 1:00 p.m. Belo Mansion 2101 Ross Ave Dallas, TX, 75201
Our first Speaker Series event of the year will focus on the future of the 380 Corridor! Our panel discussion, led by moderator Ray Washburne, will cover a variety of exciting developments coming to the area, including the headquarters of the Professional Golfers’ Association of America! Title Sponsor
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“BANKSLOOKFORGROWTH,ANDTHE DFWMARKETISONEOFTHEBESTIN THECOUNTRY,YEARAFTERYEAR” —SCOTT MCDONALD,PRESIDENT & CEO, SOUTHWEST GRADUATE SCHOOL OF BANKING AT SMU’S COX SCHOOL OF BUSINESS
Part of Dallas-Fort Worth’s challenge in attracting more finance companies is maintaining a strong regional economy. “Banks look for growth, and the DFW market is one of the best in the country, year after year,” says Scott MacDonald, president and CEO of the Southwest Graduate School of Banking at SMU’s Cox School of Business. “Hence almost every major bank has a significant presence in the area.” In October, the 11-county metro area that includes DFW gained 98,700 jobs on a year-over-year basis, the most of any such region nationally, according to a spokesperson for Dallas-based Comerica Bank.
Citing the bank’s chief economist, Robert Dye, the spokesperson says Dallas-Fort Worth had an October unemployment rate of 3.1 percent. The bank says Dye expects to see ongoing strong growth in North Texas in 2020.
TRACKING POPULATIONS, TECH GROWTH As for financial services companies, the evolution of fintech means the industry will track the growth of technology and millennial populations. “We are seeing the Lower Tollway (think Interstate 635 and the Tollway north to State Highway 161) emerge as a tech hub,” Hoopes says. “We anticipate the financial services growth to follow.” He will also be watching submarkets like Las Colinas, Far North Dallas, LBJ Freeway, and West Love Field. “Future growth in financial services will likely be concentrated in the northern Dallas suburbs,” Hoopes says.
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AREGIONTHAT DELIVERS Already one of the nation’s top markets for industrial space, Dallas-Fort Worth’s prowess in the air, on the rails, and along the highways is propelling it to even greater heights. By Jim Fuquay
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F FEATURE AT&T Stadium in Arlington has been described as everything from “Jerry’s World” to “The Palace in Dallas” to a futuristic spaceship, but here’s one more way to think of it: Really big, as in 3-million square feet big, more or less. In that vein, consider that since the Dallas Cowboys’ current home opened in 2009, in terms of sheer space, there have been the equivalent of 52 AT&T Stadiums in the form of new industrial and warehouse facilities, built and filled in North Texas. That’s 158.2 million square feet of space, as calculated by real estate firm CBRE Research in its report on the DallasFort Worth market as of the middle of 2019. Those new additions helped push total industrial/warehouse space in DFW to 887 million square feet as of the third quarter of 2019, according to Newmark Knight Frank, a big commercial real estate advisory firm. That’s enough to make North Texas the third-largest such market in the nation, behind only Los Angeles and Chicago, and one that continues to grow. It’s just one example of how this region ranks among the heavyweights when it comes to logistics— the business of moving and storing goods. “We can become North America’s distribution center,” says Terrance Pohlen, professor of marketing and logistics at the University of North Texas’ Ryan College of Business in Denton. “We have benefited as an economy by growing more and more efficient in logistics,” he says, and it’s a competitive advantage that depends in no small part on the unique combination of rail, road, and aviation assets in North Texas.
Planes, Trains and Automobiles— A Local History
PHOTO: ALLIANCE TEXAS
AN AIR FREIGHTER IS UNLOADED AT ALLIANCE AIRPORT, THE INDUSTRIAL AIPORT THAT IS A KEY ELEMENT OF HILLWOOD’S ALLIANCETEXAS DEVELOPMENT.
The title of the 1987 comedy movie, “Planes, Trains and Automobiles,” has endured as a catchphrase, but when it comes to logistics, trains come first. Dallas joined the nation’s 19th-century railroad boom in 1872, when the Houston and Texas Central Railroad came to town, having made its way up from the Gulf Coast. The next year the Texas and Pacific Railway arrived in Dallas from East Texas, and then made it to Fort Worth in 1876, according to the Texas State Historical Association. Those first two lines were a good combination.
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The Texas and Pacific, as its name promised, kept chugging west and eventually joined with the California-based Southern Pacific just west of El Paso in 1881. That connected North Texas to the West Coast. The Houston and Texas Central kept going north to Denison, connecting there with the Missouri-KansasTexas Railroad. That gave North Texas access to St. Louis and the East. By 1911, Texas had the most miles of rail in the country, and it still does to this day. Next came autos and roadways. Since at least 1919, when then-Lt. Dwight Eisenhower set off from Washington, D.C., with an 81-vehicle Army caravan headed for San Francisco, it was clear a nationwide network of roads would someday connect the nation. As early as 1943, the national plan called for the future Interstates 20, 30, and 35 to converge on DallasFort Worth. And by July 2, 1957, the Dallas Morning News would publish a map that is recognizably today’s Interstate network, minus the names that the roads now go by. The year 1957 is notable for another reason: The Dallas-Fort Worth Turnpike (now Interstate 30) opened, followed by the Dallas North Tollway in 1968. And as the area’s population continued to swell by roughly a million per decade, planners increasingly turned to toll roads to meet future needs. The first phase of the President George Bush Turnpike opened in 1998, the Sam Rayburn Tollway in 2006, the Chisholm Trail Parkway in 2014, and the
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economybygrowingmoreand moreefficientinlogistics.” —TerrancePohlen,professorofmarketingandlogisticsatUNT
Texas 360 Tollway in 2018. The North Texas Tollway Authority now oversees 1,000 lane-miles of roadway. Additionally, miles of tolled TEXpress lanes have been added to six existing highways. Finally, airports. Many North Texas residents know how federal authorities in the 1960s pressured local officials to abandon their separate airports—Love Field in Dallas and Greater Southwest International Airport (also called Amon Carter Field) in Fort Worth. Suffice it to say that the resulting facility—the 17,000-acre Dallas Fort Worth International Airport, which opened in 1974—did the job. It has become one of the world’s busiest, handling 69 million passengers and 918 million tons of air cargo in 2018. While Fort Worth closed its airport, Love Field remained open and last year boarded roughly 8 million passengers. The wild card for North Texas aviation is Alliance Airport, the nation’s first industrial airport and still the largest. Since opening in 1989 as the centerpiece of the Perot family’s 26,000-acre AllianceTexas development, the facility has become a major hub for both FedEx and UPS, and most recently gained a hub for Amazon Air.
Adding It All Up So what does all this mean when it comes to logistics? It means North Texas occupies an enviable position, combining a central, fast-growing location in the nation with a highly developed network of transportation options. As of 2017, logistics was a $43.4 billion business in North Texas in 2017, according to an estimate by the UNT College of Business.
It’s a lot of money, and shippers are always looking for ways to reduce their logistics costs, Pohler says. But the important thing to remember, he says, is that the United States pretty much leads the world in logistics efficiency, citing a recent study by Armstrong & Associates. That report says that nationally, logistics accounts for 8.2 percent of gross domestic product, compared to 9.5 percent in Europe, 12.7 percent in Asia-Pacific, 14 percent in China and 16 percent in Russia. And right at the heart of the U.S. logistics business is North Texas. “We call Dallas-Fort Worth the crossroads of the country,” says Dan Lamers, senior program manager for metropolitan transportation planning at the North Central Texas Council of Governments. “You’ve got five interstates (counting both Interstate 35 East and I-35 West), three Class 1 railroads, and Dallas Fort Worth Airport, Alliance Airport, and Love Field. The region has always been forward-looking” when it comes to keeping up with rising demand from commuters, shippers and travelers, Lamers says.
Billions invested in roadways Take roads. In just the past 10 years, the region has spent $22 billion on its roadways, Lamers says. And judging by one measure, it’s been money well spent. The American Transportation Research Institute, an arm of the American Trucking Association, makes an annual survey of the 100 worst bottlenecks in the country. In 2009, the I-45/I-30 interchange in Dallas ranked No. 8, while Fort Worth’s I-35W/I-30 interchange was No. 21. By 2013 the US 75/Loop 635 was also on the list at No. 30. When the group’s 2019 list was released in February, I-45/I-30 was down to No. 16, US 75/635 was No. 42, and I-35W/I-30 had fallen all the way to No. 69. Bear in mind that the DFW metro area has been adding about 1 million additional residents each decade. In 2018, it was the fastest-growing major U.S. metro area, up 132,000 people to more than 7.5 million. Lamers acknowledges that a lot of the highway improvements were achieved with toll lanes, and “10 or 15 years ago, we got some pretty intense criticism from the trucking industry” over the prospect of paying all those tolls. “As it turns out, they’re one of the biggest users during peak periods. Even the shorthaul companies tell us they can maybe make one more delivery a day” by using
the lanes, making the tolls worth it. There’s also an interesting wrinkle to the Texas version of highways, dating back decades. The name Dewitt Greer is little known today, but the longtime state highway chief influenced two features of Texas interstates: He insisted that they include more points of entry than in other parts of the country, and that they retain extensive frontage roads through cities. It can contribute to congestion, but also boosted access. He was also a fan of what Lamers says is known as “the Texas U-turn,” occasional turnaround lanes on major highways. Frontage roads have been so valuable as relief mechanisms when main lanes are blocked by accidents that “we’re going back and putting frontage roads where they aren’t,” Lamers says. North Texas motorists can be excused for thinking our traffic is bad. It can sure feel that way. But it’s all relative, and DFW’s road congestion doesn’t quite match up to its No. 5 rank in population. Texas A&M University’s 2019 Urban Mobility Report, which uses 2017 data, ranked DFW No. 11 in commuter delays among the nation’s 15 metro areas with more than 3 million residents. And the slowdowns at rush hour are less than all but two of those major metro areas, according to A&M.
Rail’s Intermodal presence The area’s railroads play a surprising role in helping major roads stay clear, UNT’s Pohlen
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Airports—Big and Getting Bigger The region’s airports haven’t been left out of the party. Dallas Fort Worth International Airport in 2018 completed a $2.7 billion, seven-year terminal redevelopment project that updated passenger facilities. In May the airport and
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PHOTO: DFW AIRPORT
says. Those three Class 1 railways serving North Texas—Fort Worth-based Burlington Northern Santa Fe, Union Pacific, and Kansas City Southern—each has an intermodal yard in DFW. Intermodal transportation is the use of multiple modes of transportation, typically rail and truck, to move trailers or shipping containers. You know those huge trains you see pulling 100-plus railcars stacked—often double-stacked—with shipping containers and trailers? Those are intermodal trains. Close to half of all railcar loads in the United States represent intermodal traffic, according to the Association of American Railroads, although that fell in 2019 amid the administration’s tariff battles with trading partners. Now realize that each of those containers and trailers would be on a semi-truck trailer if it wasn’t on a train. And every day in 2018, Burlington Northern and Union Pacific each brought six to eight intermodal trains into their local yards, UNT’s Pohlen says. Those yards are located at AllianceTexas in north Fort Worth in the case of BNSF, and in WilmerHutchins in southern Dallas County in the case of Union Pacific. Kansas City Southern operates an intermodal yard in Wylie. Last year, DFW intermodal yards handled 1.4 million shipping containers, Pohlen says, enough to rank among the busiest U.S. markets. A lot of those containers come from the West Coast. “We are the inland port for Los Angeles and Long Beach,” Pohlen says. Goods can arrive from the West Coast to DFW in two to three days, at a cost 15 to 25 percent less than moving by truck, he says. BNSF in 2019 announced plans to spend $405 million in Texas, which includes added rail capacity at its 1,200-acre Alliance intermodal yard with new track, parking stalls, and lifts. Union Pacific’s 360-acre Dallas Intermodal Terminal, three miles south of Interstate 20, can lift 387,000 containers annually and offers 10 lanes with automated gates, which allow trucks to pass within 30 to 90 seconds, compared to an average of four minutes nationally, according to the company’s website.
American Airlines, DFW’s largest carrier, announced plans for a sixth terminal, Terminal F, which could open by 2024 and cost more than $3 billion. That figure includes improvements to the existing Terminal C. In October, American President Robert Isom told financial analysts on a conference call that the airline boosted its domestic capacity at DFW Airport by 9 percent during the third quarter. Isom called the move “the largest expansion at any hub in the United States in more than a decade.” Cargo has grown as well. Dallas Fort Worth Interantional Airport was the No. 10 U.S. Airport in freight shipments, according to the 2018 ranking by the Airport Council International, an industry group. It ranked 36th worldwide. Alliance Airport, already home to a major hub for FedEx, in October saw the opening of an Amazon Air hub that employs about 300 people. That should boost the airport’s daily operations, now averaging about 300 flights of all types. If it sounds like DFW has kept its logistics infrastructure up to snuff, that’s true for the state as well. Every year, the Center for Business and Economic Research at Ball State University in Indiana grades each state on its manufacturing and logistics sectors. In 2019, Texas got an “A,” one of only six states earning the top grade. That continued the state’s history of earning top marks in logistics infrastructure for the past 10 years. The same report also counted new logistics-related projects initiated since the start of 2017. In that listing, Texas ranked second with 403 projects. The report did not break down the count into individual properties, but others do. And that brings us back to real estate and the development of the warehouses and other industrial spaces that serve as storage and staging points for all the movement of goods that logistics involves.
Real Estate Supply and Demand both Surging CBRE research, cited at the start of this report, counted 23.5 million square feet of industrial space under construction in the DFW market as of June 30. That was the most this market has seen since before the current recovery from the 2009 financial crisis, CBRE says. At mid-year, the vacancy rate for industrial space was 6 percent, CBRE found, which it says is “below the 20-year average, which is 8.5 percent.” CBRE says that given construction and known transactions that will occupy additional space, the vacancy rate should remain stable.
Of the 4.6 million square feet of new industrial/warehouse space completed during the second quarter of 2019, 69 percent was pre-leased, CBRE says. And of all that 23.5 million square feet under construction as of June 30, 42 percent was already committed to users. And the thing is, that level of activity has become the norm. “These days we develop 20 to 25 million square feet a year, and we’re filling it,” Jon Napper, CEO of Dallas-based Courtland Development, says of the DFW market. Dallas, along with Chicago, is the ideal inland port,” says Napper, whose company developed the 450-acre Mountain Creek Business Park in southwest Dallas. The I-20 corridor, where Napper’s project is located, has become something of a hotbed of logistics facilities. CBRE counted deals such as Ace Hardware’s 900,000-square-foot lease in Wilmer, a 468,300-square-foot lease by Petmate in Lancaster and Lexington Realty’s purchase of a 510,000-squre-foot site in Southern Dallas. The northern tier of the DFW market is attracting new development as well. In December Core5 Industrial Partners says it broke ground on a 65-acre site in McKinney, citing “limited availability of large blocks of industrial space in what have been the typical ‘go-to’ markets in north Dallas.” Brad Struck, president of ESRP Industrial Services, which represents tenants, says even with all the new capacity coming online, “It’s a landlord’s market” and rates that have risen “dramatically” in recent years seem to be holding. “There’s plenty of space, but there’s such a high volume of transactions” that the market has stayed more or less in balance, he says. In the view of UNT’s Pohler, the North Texas logistics market is in the middle of what might be called a virtuous circle, as more population growth supports more logistics supply and companies’ desire to reach the growing population drives demand. And that bodes well for the future of the business here. “It feeds on itself,” Pohler says. “If you build a distribution center in the middle of nowhere, trucking companies aren’t going to give you a good price because they’ve got an empty backhaul. Being in a major metropolitan area gives you synergy.”
PHOTO: ILEXX VIA ISTOCK
TECHDISRUPTORSMAKINGANIMPACT IN THESUPPLYCHAINSECTOR BY L ANCE MURR AY
North Texas already is abuzz with drones, robots, 3D printing, and autonomous trucks disrupting the supply chain in ways we could have only dreamed of a few years ago. Robots at Amazon fulfillment centers in Dallas-Fort Worth are on their way to putting orders on our doorsteps. Fort Worth-based Bell, Irving-based 7-Eleven, Amazon, and others are developing delivery drones. 3D printing is reshaping retail. And, autonomous trucks have already cruised North Texas highways in a pilot program. According to a recent report from Cushman & Wakefield titled “Tech Disruptors and the Supply Chain,” these new technologies are having immediate and long-term impacts on real estate in the supply chain sector—from trucking to warehousing to last-mile deliveries here and across the nation. The report was the fourth and final installment in Cushman & Wakefield’s Tech Disruptor Series, and it predicts that the impact of these tech disruptors will double in the next five years. “Industrial real estate in particular— including the current last-mile delivery model—will be affected, as will retail space. Real estate development as a whole will also be impacted by 3D printing,” it says. David Eseke, a senior director in Cushman & Wakefield’s Industrial Tenant Representation group in Dallas, thinks real estate and technology are, indeed, at an important juncture. “We’re fast approaching a critical point at the intersection of technology and demand for the consumer experience,” Eseke says. “That, in and of itself, is resulting in a lot of R&D, a lot of study, and a lot of new developments.” Eseke thinks drone technology has had the most-immediate impact. “There’s so many different applications for the drones,” he says. New technologies are changing the way we shop, how we travel, and how things are delivered to consumers, Eseke says. “[In the past] you never could get free shipping—seven to 10 business days was
kind of basic whenever you buy something,” he says. “Now, you buy something on your phone sitting in the airport. You have someone bring groceries to Embassy Suites so that you have food when you get in, four or five hours later.” The emerging technologies of real estate and the supply chain are creating an exciting time for the industry, Eseke says. REPORT: FUTURE OF REAL ESTATE IS ABOUT PEOPLE AND ROBOTS “That whole shift is, to my mind, what’s most memorable because whether it’s automated trucks, the robotics in the buildings, the drones, every element of that is undergoing some change. And, that’s exciting,” Eseke says. The report states that supply chain commercial real estate in the future won’t be built just for people, but also for robots, which can actually affect how a building is designed. But, that doesn’t mean human labor won’t be an important factor for companies locating logistics businesses in Dallas-Fort Worth. “The biggest concern is labor supply,” Eseke says. “And that’s where you’re getting some of the push for the robotics.” Amazon, for example, is heavily into robotics and the company’s move to a $15 an hour minimum wage, makes it essentially a victim of its own success, according to Eseke. “They’re trying to attract labor, but in that sense, they’re increasing the cost of labor, which makes robotics more attractive,” he says. “[When] labor costs are low, there’s no incentive, motivation, to move towards robotics. So that’s kind of an interesting dilemma, because they’re heavily invested in robotics and heavily invested in labor.” Eseke believes, at some point, that balance between labor costs and robotics will change. “You can get the perfect building, but if you can’t get quality, dependable employees, you’re going to struggle, especially with the demands of the consumers, which are, ‘I wanted it today, or I want it tomorrow.’”
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AUTONOMOUS TRUCKS, DRONES, AIR TAXIS, AND OTHER NEW TECH WILL BE TESTED AT THE ALLIANCETEXAS MOBILITY INNOVATION ZONE IN NORTH TEXAS.
ATECH TESTING GROUND The AllianceTexas Mobility Innovation Zone is about to spring to life testing autonomous trucks, drones, and other technologies stretching the limits of logistics and transportation. BY JIM FUQUAY
Sometime in the first few months of 2020, a shipping container will be lifted off its railcar and onto an adjacent tractor-trailer rig. Then, without a human driver intervening, the big rig will make its way to one of the many distribution facilities at the huge AllianceTexas development, and with that trip a new phase of logistics will begin in North Texas. “It’s another cycle of the Industrial Revolution, or the Technology Revolution,” says Mike Berry, president of Hillwood Development Co., which, like AllianceTexas, was founded and directed by the Perot family of Dallas. The logistics industry, which consists of moving and storing goods, is in the midst of “creating a whole new ecosystem, and we’re trying to play an active role in it.” The automated transport that Hillwood plans to demonstrate is just one of the elements of a perhaps not-so-futuristic proving ground for new technology that Hillwood announced in June 2019 when it unveiled plans for what it calls the AllianceTexas Mobility Innovation Zone. Automated trucks and cars will require streets with embedded wireless
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communications, including new 5G technology that uses denser towers to speed response time between users and networks. Likewise, aviation drones will need the same rapid communications plus air traffic control. That will mean a technology network communications system, as well as a physical building—likely something that already exists—followed by a purpose-built “Innovation Center” in Alliance. He sees that structure housing labs and R&D operations, business incubators, and conference space. “It could be a real estate deal or more of a partnership complex. It’s just ideas on paper now,” Berry says. The 26,000-acre business park has all the qualities needed to serve as a center of research: miles and miles of controlled roadway, the world’s biggest industrial airport, more than 500 manufacturing and distributing buildings occupying close to 45 million square feet of space. And, Alliance also is home to the Federal Aviation Administration’s Southwest Air Traffic Control Center. Sort of the icing on the cake. There’s really no other place in the United States, or perhaps the world, that offers such a combination of assets to allow technological testing, says Terrance Pohlen of the University of North Texas in Denton, which has developed a sizable logistics department within the business school. While much of the timetable for showcasing driverless vehicles, drone transports, and computer-assisted traffic planning will depend on federal regulatory progress. “So many people are trying to push the envelope, the regulators are overwhelmed,” Pohlen says. It’s no coincidence that Hillwood formally announced its Mobility Innovation Zone at an Uber Elevate summit in San Francisco. The ride-sharing service,
PHOTO: HILLWOOD DEVELOPMENT CO
MIKE BERRY, PRESIDENT, HILLWOOD DEVELOPMENT CO
PHOTO: ALLIANCE TEXAS
under the name Uber Air, plans to develop and test an urban air taxi service, and DFW and Los Angeles were the first two launch markets named (see more on page 20). Uber says it hopes to start flight testing in 2020 and possibly commercial service by 2023. But that asks the FAA to adapt its air traffic control system to handle numerous lower-altitude, on-demand flights compared to the existing high-altitude, scheduled flights of the commercial aviation market. “Safety has to be paramount. It’s going to take longer than people think,” Pohlen says. Berry doesn’t argue with that. “The FAA and NASA have the role managing the airspace around this area,” he says. “Let’s build a box we can regulate with air-to-ground and air-to-air traffic control systems,” he told us in a December interview. “How can we use this platform to create stand-up use cases? Not just testing in a vacuum,” but in a real-world environment, he says. “We need to take advantage of what we’ve built here. That’s what started all this.” Berry says he’s been pleased with the reception the Mobility Innovation Zone has gotten since its kickoff. He has been traveling extensively making presentations on the concept. He says the feedback from dozens of industry events, rather than prompting skepticism, “if anything it’s validating that we’re on the right path.” So how does Berry expect the project to play out? “I can’t tell you who the launch customers are going to be yet, but there are several transportation companies—both trucking and technology—where a truck will take a container from the BNSF Intermodal Yard to another facility. I think within 90 days we will have our first surface use case,” he says. “Air, that will probably be a six-month process, which we’ve just started.” One likely test
of air service will be “to carry a person in an Uber Elevate ship from downtown Fort Worth to downtown Dallas.” Fans of Alliance’s annual air show, held each October, can plan on a demonstration of the projects underway, he says. At its core, the Mobility Innovation Zone will be about making better use of the vast existing infrastructure of road, rail, and air, not just building new assets. “We know we can’t build new roads and light rail everywhere,” Berry says. There’s a role for new infrastructure, but also for smarter networks that help maximize traffic flow on the thousands of miles of streets and highways already connecting North Texas communities and businesses “I don’t know how to put a timeframe on it,” Berry says. “Two things will dictate that: regulation and community acceptance. You’ve got to prove it works several times over, that it’s safe. There are autonomous trucks today, but there is a safety driver in the cab. “One thing I know for sure, the technology exists,” Berry says. “Drones are there, autonomous trucks and cars are there. It all exists. It’s all the big boys—Bell Helicopter, Boeing, Uber, Toyota, Peterbilt, Freightliner, GM. They’re all in. When you see that, you know there’s real muscle behind it.”
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Say Yes to Dallas, where living means thriving. sayyestodallas.com @sayyestodallas
Photo by Michael Samples
B BUILDING TOMORROW TOGETHER
THE DFW JOB MACHINE ROARS INTO THE ’20s When Amazon announced in November 2018 its decision to split the HQ2 project evenly between the Washington D.C. and New York metro areas, DFW missed the opportunity to add 25,000 new Amazon jobs over the next several years. It was disappointing to come up just short after the Dallas Regional Chamber and so many regional allies and partners worked together and played a great game. During the year-long Amazon HQ2 search, other companies were watching closely, keenly interested in where Amazon would locate. I believed that our region would win either way; certainly if HQ2 landed here, but, if not, we’d see a surge of locations and expansions by other major companies. That’s what happened. It started on the very same day that
Amazon announced its decision, Nov. 13, 2018. That day, in a very big shadow, Richardson had a major win when Infosys announced it would locate a 500-job technology and innovation hub. A couple of weeks later, McKesson, at that time ranked higher than Amazon on the Fortune 10 list, announced its headquarters’ move to Irving. The PGA of America announced a move to Frisco from Florida in December 2018. Then 2019 got off to a great start and kept BY MIKE ROSA going. Salesforce, Uber, and Tripactions were SENIOR VICE PRESIDENT, all signifi cant announcements for downECONOMIC DEVELOPMENT, DALLAS REGIONAL CHAMBER town Dallas. USAA and JPMorgan Chase were among Plano’s big wins. Raytheon grew in McKinney. Allstate and Microsoft announced major expansions in Irving. British high-performance automaker McLaren announced at a Dallas Regional Chamber breakfast in September its North American headquarters’ move from New York to Coppell.
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B BUILDING TOMORROW TOGETHER
BUILDING TOMORROW TOGETHER
The final big announcement of 2019 was on Nov. 25, when Charles Schwab announced it would acquire TD Ameritrade and Schwab’s headquarters would locate in Westlake. These corporate moves and expansions alone represent about 15,000 new jobs for DFW; all announced in the 15 months since we lost the promise of 25,000 jobs at Amazon. All told, DFW added about 121,000 total jobs from November 2018 to November 2019 (the most recent 12-month data available). That’s more gains in employment than any other metro area, and more jobs than were added in 47 states. Only Texas, California, and Florida added more jobs than DFW. There’s a reason the DRC wants to recruit companies, help existing businesses grow, foster innovation, and tell the world about our incredible workforce and our extremely business-friendly climate. We do it to build and keep this region strong and on a prosperous path so that we live and work in a place that provides an opportunity for individuals, businesses, and organizations to thrive and have a good life. When a new company moves, or grows, or starts here, each is a spark. Jobs are created. DFW has added 950,000 jobs in the last 10 years. In one decade, DFW has grown by more than the total number of jobs right now in New Orleans, Jacksonville, Raleigh, or Oklahoma City. San Antonio and Austin each have about 1.1 million total jobs. People move here. Office space, houses, apartments, restaurants, and infrastructure are built. The arts, entertainment, and sports benefit. Small businesses find customers. The tax base grows. We have more resources available to care for those in need, solve problems, educate our kids, fix roads, build bike trails and airport terminals, and— overall—to invest in our future. New things happen. It’s not like this everywhere. No other region has had long-haul success like ours in recruiting companies and creating jobs, and this train is rolling right into the new decade.
WANT TO LEARN MORE ABOUT HOW TO GET INVOLVED IN BUILDING TOMORROW TOGETHER?
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The Dallas Regional Chamber’s economic development program, Building Tomorrow Together, provides organizations in Dallas-Fort Worth with an accelerated investment opportunity that helps advance our region’s success. This additional investment made by more than 130 organizations, in addition to annual chamber membership dues, allows organizations to increase their support of our efforts to further economic prosperity throughout the region. This initiative funds efforts related to direct contact with corporations and location consultants examining the DFW region.
Contact Mike Rosa, Senior Vice President, Economic Development, Dallas Regional Chamber 214-746-6735 | email@example.com
NORTH QUARTER 35 — A 640,000 SQUARE-FOOT, FOUR-BUILDING INDUSTRIAL DEVELOPMENT IN FORT WORTH.
THE CRANE REPORT
Continued migration of new people to North Texas is driving construction in every sector—office, industrial, and multifamily—our experts say. Ran Holman, managing principal at Cushman & Wakefield, for example, cites the region’s infrastructure and attributes as compelling magnets for professional and corporate relocations. That influx of new residents increases the demand for goods—and more warehouse and distribution space—as well as a demand for new apartments. ON-TH E-G RO U N D I N SI G H TS
Vice President, JLL
Managing Principal, Cushman & Wakefield Dallas
Executive Vice President, Bob Moore Construction
EVP and Regional Managing Partner-Central Region, JPI
“As you look at 2020 and beyond, the engine driving DFW office development is, fundamentally, the 300 to 400 people moving here each day. Texas is extremely compelling for businesses and individuals, and DFW’s infrastructure and attributes have it poised to continue to be a mecca for professional and corporate relocations.”
“The housing market is expected to stay strong in 2020 and will continue to push manufacturers and distributors of building materials to keep up with demand by expanding existing facilities and building anew. Likewise, e-commerce and retail companies will continue adding to their regional capabilities by expanding in the strong Texas market.”
“Looking at 2020, I see DFW’s strong job growth as one of the major driving forces for multifamily development. To fill the housing gap created by such growth in DFW and other similar markets, JPI is working to provide a more affordable product, while continuing to maintain the best-in-class standards that JPI is known for.”
“Advances in technology and accessibility to quality labor are the key drivers impacting the office sector in North Texas. Companies are able to generate new opportunities for greater efficiency, and our low cost of living/high quality of life continues to attract people and companies to DFW.”
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THE CRANE REPORT:
RAYZOR RANCH MEDICAL PARK
DUCHESS OFFICE PARK
ANNOUNCED + UNDER CONSTRUCTION
RIVER WALK MEDICAL PARK IV
ANNOUNCED DEVELOPMENTS 1
RIVER WALK MEDICAL PARK IV LAKESIDE CROSSING
HARWOOD NO. 12
STONEGLEN OFFICE BUILDING
DIAMOND CLUB AT WILLOW SPRINGS
SIZE: 1 million square feet LOCATION: Dallas DEVELOPER: Harwood International DETAILS: The developer announced it intends to build a 42-story tower at Caroline and Field streets just north of downtown Dallas. It will have more than 1 million square feet of space on Caroline Street and would be the tallest in the Uptown area once completed.
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
HILLWOOD COMMONS II
LAS COLINAS CORPORATE CENTER III USCIS BUILDING AMERICAN AIRLINES CORPORATE CAMPUS VIRIDIAN TOWN CENTER BUILDING I
THE OFFICES AT HAMPDEN WOODS
THE OAKS AT WEATHERFORD MUSEUM PLACE III
SHOPS AT HUDSON OAKS
BROOKHOLLOW COMMONS II
WATERSIDE 107-113 LARSON LANE
OVERTON CENTRE TOWER III
CHISHOLM TRAIL PROFESSIONAL PLAZA
CHISHOLM TRAIL PROFESSIONAL CENTER
BARDIN ROAD CENTER PHASE II
MANSFIELD WEBB AND LAFRONTERA TRAIL
BROAD STREET PLAZA
MANSFIELD MEDICAL OFFICE
SIZE: 490,000 square feet LOCATION: Irving DEVELOPERS: Verizon, KDC DETAILS: The second phase of the massive, tech-connected Hidden Ridge development is in the planning stage and will add six new office buildings totaling 490,000 square feet of office space and 30,000 square feet of retail.
4 0 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
SIZE: 200,000 square feet LOCATION: Dallas DEVELOPER: Hines, Westdale Real Estate Investment and Management DETAILS: The Houston-based developer in partnership with Westdale is building a 16-story retail and office tower in Deep Ellum in downtown Dallas that will feature 200,000 square feet of office space and roughly 15,000 square feet of street-level retail. Itâ€™s just blocks from the complex where Uber is locating thousands of workers in a new regional office. The Canadian firm Ivanhoe Cambridge also is an investor in the project. The project will open in early 2021 and is designed by Dallas architect 5G Studio
UNDER CONSTRUCTION 380 COMMONS 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 CHASE OAKS PROFESSIONAL CONDOS PLAZA THE REALM AT LEGACY PARK C CASTLE HILLS LEGACY WINDHAVEN TWO LEGACY CENTRAL 5 PLACE ONE WEST THE OFFICES AT WILLOW BEND CROWN INTERNATIONAL CENTRE BUSINESS PARK HERITAGE CREEKSIDE TOWERS OAKBEND CENTRE
NORTH DALLAS MEDICAL CENTER PHASE II
THE RIDGE AT 121 TRINITY MILLS BENT TREE URBAN VILLAGE AT THE DE GROUP PARKWAY ARTERS RT NS POINT THE INWOOD FOUR WEST II LINCOLN AT ALPHA WEST CENTRE
2 HIDDEN RIDGE
WEST LOVE BAYLOR SCOTT & WHITE MEDICAL CENTER MOB III
GATEWAY OFFICE TOWER THE UNION
PHASE ONE OFFICE CONVERSION
OGH MEDICAL CENTRE ROWLETT
MEADOW GREEN MEDICAL CENTER
SWC SH 205 & FM 549
THE DESIGN DISTRICT TOWER PARKLAND KNIGHT
THE EPIC II
N PLANO RD & ARAPAHOE
VILLAGE ON THE PARKWAY
INFINITE PROSPECTS MIDTOWN MEDICAL TOWER OFFICE TOWER IN THE GLEN AT PRESTON HOLLOW HILLTOP PLAZA
THREE HICKORY CENTRE PIONEER NATURAL RESOURCES
THE POINTS THE GRID AT WATERVIEW
SIZE: 500,000 square feet LOCATION: Dallas DEVELOPER: Westdale Real Estate Investment and Management DETAILS: Construction on the second tower in the eight-acre The Epic development in Deep Ellum has begun. Roughly 470,000 square feet of the building is being leased by tech giant Uber, which will house roughly 3,000 workers at The Epic.
THE FAIRMOUNT BUILDING
SCOTT 5 3 BAYLOR, & WHITE HEALTH EPIC DEEP ELLUM 6 THETHEDREVER
PHYSICIANS SPECIALTY CENTER SUNNYVALE MEDICAL CENTER
SOLA ON LAMAR DAVIS STREET MARKET OFFICE PARK
● ANNOUNCED ● UNDER CONSTRUCTION
SIZE: 18O,000 square feet LOCATION: Dallas DEVELOPER: Todd Interests DETAILS: The office space will be part of the 17-story high-rise building on the eastern edge of downtown Dallas that will also feature retail and apartments. The building will be in the 10-block East Quarter development. The project at Cesar Chavez will include restoration of the 74-yearold Meletio Electric building. Andres Construction is the general contractor, and Merriman Anderson Architects designed the high-rise. Retail and office space will be completed in the first quarter of 2021.
DATA SOURCE: REAL ESTATE REVIEW RESEARCH / DALLAS REGIONAL CHAMBER / TRANSWESTERN / VARIOUS REAL ESTATE FIRMS
SIZE: 200,000 square feet LOCATION: Arlington DEVELOPER: Cordish Cos. DETAILS: The massive $810 million second phase of Texas Live! has been approved by the city with plans to bring 200,000 square feet of office space, an 888-room convention hotel, 150,000 square feet of meeting space, 280 apartments, small-business incubator space, and roughly 100,000 square feet of additional restaurant and retail space. The development is near AT&T Stadium and the new Globe Life Field.
SIZE: 150,000 square feet LOCATION: Grand Prairie DEVELOPER: Cawley Partners DETAILS: The project at State Highway 161 at Forum Drive will have 150,000 square feet of office space as part of a mixed-used development.
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 4 1
THE CRANE REPORT:
US 380 BUSINESS PARK BLDGS 3-5
ANNOUNCED + UNDER CONSTRUCTION
GATEWAY BUSINESS PARK AIP EAGLE COURT
ANNOUNCED PROJECTS 1
SPEEDWAY LOGISTICS CROSSING ALLIANCE NORTHPORT ALLIANCE CENTER NORTH 3
URBAN DISTRICT 30
SIZE: 979,700 square feet LOCATION: Mesquite DEVELOPER: Urban Logistics Realty DETAILS: Mesquite City Council has approved plans for a $71 million, 80-acre business park that is expected to generate 500 to 900 new jobs. It will be located on Interstate 30 near Northwest Drive. The project, which will have five buildings, is scheduled to start construction by July 2021 and be completed by January 2023.
DFW NORTH IV
NORTH PORT 4
LAKESIDE RANCH 1001
MUSTANG PARK LOGISTICS CENTER
FOSSIL CREEK BLVD PHASE II INTERNATIONAL AVIATION COMPOSITES
PAK QUALITY FOODS OAKDALE LOGISTICS CENTER
MARK IV COMMERCE PARK
GENERAL MOTORS ASSEMBLY PLANT EXPANSION
SIZE: 355,000 square feet LOCATION: Garland DEVELOPER: Huntington Industrial Partners DETAILS: Plans have been approved to build two Class-A buildings totaling 355,000 square feet of industrial space on Marquis Drive and Kings Road. As part of the project, Huntington is building out an extension of Kings Road to connect Miller Road to Marquis Road between the two buildings.
HOME DEP GSW 77
360 COMMERCE PARK
CHAMPIONS BUSINESS PARK
PARK TWENTY THREE-SIXTY
MARKUM BUSINESS PARK
● ANNOUNCED ● UNDER CONSTRUCTION
FIRST ARLINGTON COMMERCE CENTER III
MOUSER ELECTRONICS EXPANSION
KLEIN TOOLS EXPANSION
#12 LONG HORN
MIDLOTHIAN BUSINESS PARK 1
NORTH QUARTER 35
SIZE: 640,000 square feet LOCATION: Fort Worth DEVELOPER: M2G Ventures DETAILS: Work has begun on the 640,000 square-foot, four-building Class A industrial development at Interstate 35W and Golden Triangle Boulevard at 10705 N. Freeway. Stream Realty will lead the leasing for the property, with completion scheduled for the fourth quarter of 2020. FCL Builders is general contractor and GSB Andrade is the architect.
4 2 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
FIRST MOUNT DISTRIBUTIO
COWBOYS MERCHANDISING DISTRIBUTION CENTER MCKINNEY INDUSTRIAL CENTER GARAGES OF TEXAS AT FRISCO CYRUSONE PHASE II & III
FIRST PARK 121
DFW VII DATA CENTER PHASE I
CORE LOGISTICS CENTER HORIZON BUSINESS CENTER BUILD TO SUIT
SOHCO LAKESIDE VILLAGE III
GRAND LAKES COMMERCE CENTER
LIFE S 7-11
GOODYEAR DISTRIBUTION CENTER
POT GOODYEAR TIRE & RUBBER CO DISTRIBUTION CENTER
STEELWAY INTERNATIONAL INC
ERTY PARK NTAIN CREEK
TAIN CREEK ON CENTER
POINTSOUTH SOUTHFIELD PARK 35
FIRST 20/35 LOGISTICS CENTER
MELTON TRUCK LINES
SUNRIDGE BUSINESS DUKE INTERMODAL III PARK TEXPORT LOGISTICS CENTER DALPORT TRADE CENTER CORE5 LOGISTICS CENTER AT BONNIE VIEW OLLIE'S
MIDPOINT LOGISTICS CENTER
DFW INLAND PORT I & II
DATA SOURCE: REAL ESTATE REVIEW RESEARCH / DALLAS REGIONAL CHAMBER / TRANSWESTERN / VARIOUS REAL ESTATE FIRMS
SKYLINE COMMERCE PARK
SIZE: 197,600 square feet LOCATION: Mesquite DEVELOPER: Conor Commercial Real Estate DETAILS: Chicago-based Conor Commercial Real Estate has bought a 12.4-acre site on South Buckner Boulevard, just south of Interstate 30 where it plans a two-building industrial project. It will include a 135,200 square foot building and another with 62,400 square feet of industrial space.
CORE5 LOGISTICS CENTER
SIZE: 437,000 square feet LOCATION: McKinney DEVELOPER: Core5 Industrial Partners DETAILS: Construction has kicked off on the first phase that will include two buildings totaling 431,710 square feet of industrial space, which will sit off of North McDonald.
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 4 3
THE CRANE REPORT:
THE MAJESTIC ON M
LIVE OAK 13 UNDERWOOD
ANNOUNCED + UNDER CONSTRUCTION
MILLENN OXFORD AT LAKE VIEW
ANNOUNCED DEVELOPMENTS 1
ALTA CHAMPIONS CIRCLE
● ANNOUNCED ● UNDER CONSTRUCTION
SIZE: 430 units LOCATION: Dallas DEVELOPER: JPI DETAILS: Irving-based JPI plans the development as part of a major mixed-use project near downtown Dallas. It will be in the 26-acre redevelopment on North Central Expressway near Cityplace on vacant land at North Central and Carroll Avenue recently sold to Dallas’ DeLaVega Development. There, DeLaVega plans a huge high-rise project called The Central on the property. DeLaVega then resold a section of the property to JPI for its apartment project.
TH JEFFERSON SILVERLAKE ENCLAVE AT THE PARK TACARA VILLAGE THE PRESERVE AT ELAN THE LANDING AT CROSS CREEK
GRAND ON BEACH
THE MILLENNIUM AT HOMETOWN
PROVISION AT NORTH VALENTINE
THE VIEW OF FORT WORTH I THE UNION AT RIVER EAST I
SIENNA HILLS PALLADIUM
THE PRESIDIO AT RIVER EAST JEFFERSON RIVER EAST ENCORE PANTHER ISLAND 311 NICHOLS STREET MAGNOLIA
THE PALMER ELAN CROCKETT ROW ALEXAN SUMMIT ROSEDALE
MAGNOLIA AT UNIVERSITY HEIGHTS ALTA WATERSIDE
THE QUADRANGLES ON TWENTY
THE DYLAN AURA 3FIFTY-ONE THE TRAILS AT SUMMER CREEK
UNDER CONSTRUCTION 3
JEFFERSON GALLERY HOUSE
SIZE: 353 units LOCATION: Farmers Branch DEVELOPER: JPI DETAILS: Irving-based JPI is building Jefferson Gallery House along the Dallas North Tollway north of the Galleria Dallas. It’s the second phase of a 750unit apartment development, with work already underway on the adjoining Jefferson East Branch apartments.
4 4 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
SIZE: 278 units LOCATION: Grand Prairie DETAILS: A.G. Spanos Cos., a California-based apartment builder has bought land in Grand Prairie for a 278-unit apartment project. The 15.6acre tract is on Lynn Creek Parkway near State Highway 360.
MANSIONS LAKE RID
PROVISIONS AT MELISSA
EDISON ADLEY AT AT FRISCO THE CRAIG RANCH THE KILBY THE ATHERTON 7005 SOUTH DOMAIN AT CUSTER ROAD THE GATE
JEFFERSON AT THE GATE
CITRON ALLEN STATION 729 JUNCTION DRIVE
MONTGOMERY RIDGE I
TOWER BAY LOFTS
LIVE GRANDSCAPE LAKEYARD DISTRICT
ALEXAN LEGACY CENTRAL I
THOUSAND OAKS AT STAG'S LEAP
1980 LENOX EAST TX-121 CASTLE BUSINESS HILLS
MORADA PLANO CITYLINE PARK
HEBRON 121 STATION V
FRANKFORD STATION LOFTS ELAN AMLI ADDISON ADDISON GROVE
WATERWALK NORTHSIDE AT THE WOODLANDS
HARPERS BAY AT THE SOUND OLYMPUS ON MAIN MUSTANG STATION II
JEFFERSON PROMENADE JEFFERSON EASTSHORE
EMBRY URBAN LOFTS
THE JEFFERSON WEST LOVE II HUDSON
AMLI FOUNTAIN PLACE ALTA TRINITY GREEN MAGNOLIA OFF SYLVAN
MAIN STREET VILLAGE
JEFFERSON TEXAS PLAZA
SKYLINE TRINITY 727 ZANG LOFTS
6 HARMONY HILL II THE MANSIONS AT BAYSIDE
MODERA DALLAS MIDTOWN ELAN THE DOMINION AT MERCER CROSSING INWOOD
THE LUXE AT MERCER CROSSING
SEVENTY8 AND WESTGATE
RESIDENCES AT EASTLINE
SIZE: 330 units LOCATION: Dallas DEVELOPER: Convexity Properties DETAILS: Construction has begun on the new mixed-use development near Mockingbird Station that will feature a 28-story apartment tower as part of the 12-acre development called Eastline. The Residences at Eastline apartment complex will be a centerpiece of the project designed by Chicago-based Solomon Cordwell Buenz and is being built by Archer Western.
THE CLIFFS AT RIDGE CREEK
THE FLORENCE AT THE HARBOR THE TOWERS AT BAYSIDE
BROADSTONE COLE AVENUE 5 CROSSING FITZHUGH URBAN FLATS ENCORE SWISS AVENUE NOVEL DEEP ELLUM AMELIA AT FARMERS MARKET THE CROSBY
PALLADIUM REDBIRD APARTMENTS
SIZE: 300 units LOCATION: Dallas DEVELOPER: Palladium USA DETAILS: Work has begun on the $60 million, 300-unit project that’s part of the next phase of redevelopment of Southwest Dallas’ RedBird Mall. Palladium USA’s project is part of the effort to repurpose the 44-year-old shopping mall at Interstate 20 and U.S. Highway 67. The four-story apartment community will be built on what were parking lots for the mall. THE PARC AT WINDMILL FARMS
CLARK RIDGE CANYON
S AT DGE ASPIRE AT PRESTON TRAIL
DATA SOURCE: REAL ESTATE REVIEW RESEARCH / DALLAS REGIONAL CHAMBER / REALPAGE / VARIOUS REAL ESTATE FIRMS
THE MARK AT MIDLOTHIAN I
PALLADIUM GLENN HEIGHTS
SIZE: 340 units LOCATION: Arlington DEVELOPER: StreetLights Residential THE MARK ON 287 DETAILS: The developer has broken ground on its first apartment complex inPARK Arlington, PLACE a 340-unit community that will be part of the Viridian master-planned community. WDG Architecture designed the complex with SLR Construction tapped as general contractor. It should open in the fall of 2020.
SIZE: 300 units LOCATION: Dallas DEVELOPER: Toll Brothers DETAILS: The developer has filed permits to build a rental community with 300 units on Preston Road just north of LBJ Freeway in an area of the former Valley View mall.
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 4 5
DISCOVER WHATâ€™S NEW + NEXT IN NORTH TEXAS INNOVATION WHERE
TECH CREATIVES INNOVATORS INCUBATORS EDUCATORS ENTREPRENEURS INVESTORS ENTERPRISE &
CONNECT, CONVERSE, AND CONVERGE ACROSS INDUSTRY SECTORS
THE DIGITAL MEDIA PLATFORM COVERING DALLAS-FORT WORTH AS A HUB FOR INNOVATION
COLLABORATION OF OF THE THE DALLAS DALLAS REGIONAL AACOLLABORATION REGIONAL CHAMBER CHAMBERAND ANDDDMAGAZINE MAGAZINEPARTNERS PARTNERS
THREE OF THIS ISSUE’S LARGEST OFFICE LEASES ARE IN FORT WORTH. [PHOTO: JOSEPH HAUBERT/CITY OF FORT WORTH]
Leasing in Dallas-Fort Worth is all about demand, and that holds true in all sectors. In the office sector, continued relocation from other states and from within North Texas have created strong demand for office space. Industrial space demand is high and the occupancy rate has remained stable. Trey Fricke of Lee & Associates expects that lease rates in North Texas will continue to be in ‘cost containment’ mode. BY LANCE MURRAY
ON-T H E-G RO U N D I N SI G H TS
Senior Vice President, CBRE “The war for talent is real and companies are using office space as a recruiting and retention tool. Employers are bringing amenities and hospitality services into the workplace and using their office space to create an exceptional employee experience and to build a strong sense of community within their workforce.”
DON POWELL, AIA, NCARB
“[We’re] integrating a range of unique amenities into Class A office projects, including The Link at Uptown and Victory Commons I. From golf simulators and upgraded fitness facilities to conditioned sky bridges and year-round outdoor entertainment space, each amenity should be activated in way that creates a sense of community and connectivity throughout.”
“Although the market currently has in excess of 28 million square feet under construction, we anticipate demand to remain high and overall vacancy to remain stable. This will contribute to rents escalating in the near term, affected by elevated demand and higher land and construction costs.”
Partner, Principal in Charge, BOKA Powell
Executive Managing Director, Cushman & Wakefield
Co-Managing Principal, Lee & Associates “As the population in North Texas continues to grow at rapid paces, so does the general consumption of goods and services. The increase in these goods increases the demand for warehouse space. Lease rates in DFW have been in a ‘cost containment’ mode over the last 24 months, and I expect that will continue with much greater significance and importance.”
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 4 7
5 52067,860 SF
67,861176,000 SF 176,001362,670 SF 362,671920,275 SF
DATA SOURCE: Real Estate Review research / Dallas Regional Chamber / CBRE / Various Real Estate firms
LARGEST INDUSTRIAL LEASES 1
AMAZON AIR SIZE: 650,000 square feet LOCATION: Fort Worth DETAILS: The cargo airline signed its lease for 650,000 squre feet of space along Intermodal Parkway at AllianceTexas near Fort Worth Alliance Airport. The carrier flies Amazon packages around the country.
MALLORY ALEXANDER INTERNATIONAL SIZE: 252,833 square feet LOCATION: Dallas TENANT REPS: Dan Cook and Mark Becker of Cushman & Wakefield LEASING AGENT: Carter Crow of Younger Partners DETAILS: The Memphisbased logistics company took the space in West Dallas at 2150 French Settlement Road.
4 8 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
SIZE: 238,000 square feet LOCATION: Lewisville TENANT REPS: Mark Collins, Dean Collins, and Bill Brown of Cushman & Wakefield DETAILS: The paint manufacturer has leased the space at 121 Lakepointe Crossing at 2525 East State Highway 121 as a distribution center, moving from its 70,000 square-footdistribution center in Mesquite. It plans to use its old space solely for manufacturing.
SIZE: 217,000 square feet LOCATION: Fort Worth TENANT REPS: Jamie Galati and Sky Groden of JLL LEASING AGENTS: Matt Carthey and Thomas Grafton of Holt Lunsford Commercial DETAILS: Vital Pharmaceuticals, a Florida-based provider of sports nutrition supplements and beverages, has leased the space at Everman Trade Center in Fort Worth.
WALMART SIZE: 213,000 square feet LOCATION: Fort Worth LEASING AGENTS: Transwestern DETAILS: Walmart Inc. leased 213,000 square feet at a recently built warehouse at 1201 NE Loop 820 in Fort Worth. The building will be used to house fixtures and supplies for store remodels.
14014,684 SF 14,68542,252 SF
42,25388,520 SF 88,521205,000 SF 205,001535,731 SF
DATA SOURCE: Real Estate Review research / Dallas Regional Chamber / CBRE / Various Real Estate firms
LARGEST OFFICE LEASES 1
ALLIANCERX WALGREENS PRIME
SIZE: 327,000 square feet LOCATION: Plano LEASING AGENT: Trammell Crow Co. DETAILS: The biotech firm intends to move into a new headquarters in Plano, with construction expected to begin in January on a larger office. The company has signed a lease for a roughly 327,000-square foot building in a business park near Legacy Drive and Communications Parkway in Plano. Construction is expected to take about two years.
SIZE: 93,250 square feet LOCATION: Dallas DETAILS: The specialty home delivery pharmacy collaboration between Walgreens and Prime Therapeutics is moving its operations from Irving to a building near Dallas Love Field at 8600 Harry Hines in Northwest Dallas.
SIZE: 67,000 square feet LOCATION: Plano TENANT REPS: Brad Struck, Darren Woodson, and Roy Reis LEASING AGENTS: Nathan Durham and Duane Henley of Transwestern DETAILS: The healthcare company, which provides infusible therapies, has taken the space in the Apex Building and will relocate 275 employees from its current Dallas Office. It plans to create 75 more positions by 2021.
SIZE: 54,920 square feet LOCATION: Irving TENANT REPS: Randy Cooper, Matt Heidelbaugh, Amber Roberts, Lou Dâ€™Avanzo, and Andy May of Cushman & Wakefield LEASING AGENTS: Sarah Hinkley of Thirty-Four Commercial and Joel Pustmueller of JLL DETAILS: Gartner signed a lease expansion for 54,920 square feet of space in Las Colinas Connection 1 at 6031 Connection Drive in Irving. The landlord is Piedmont Office Realty Trust.
SIZE: 34,000 square feet LOCATION: Dallas TENANT REPS: Matt Heidelbaugh and Billy Gannon of Cushman & Wakefield DETAILS: The architecture and engineering firm has extended its lease for an additional seven years at the Mercantile National Bank Building in downtown Dallas. It moved to the building in 2011.
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 4 9
At its core, TREC is a group of talented, At its core, TREC isdedicated, a group of and generous talented, members who dedicated, and desire to be generous members who a driving force desire to be in creating a driving force the Dallas in creating of tomorrow. the Dallas of tomorrow.
Bill Cawley TREC CHAIRMAN
Bill Cawley CAWLEY PARTNERS TREC CHAIRMAN CAWLEY PARTNERS
Imagine. Imagine. Empower. Empower. Impact. Impact.
Renew yourmembership membership TREC today! Renew your or or joinjoin TREC today!
RECOUNCIL.COM 214.692.3600 PHONE 3100 McKinnon Street No. 1150, Dallas, TX 75201 RECOUNCIL.COM 214.692.3600 PHONE 3100 McKinnon Street No. 1150, Dallas, TX 75201
Bill Cawley, Chairman Mike Ablon, Chairman-Elect
JP Morgan/ JPMorgan Chase Foundation Bank of America Merrill Lynch/Bank of America Charitable Foundation, Inc. Bank of Texas Cawley Partners CBRE U.S Department of Treasury CDFI Fund Champion Advisory Partners Cushman & Wakefield Deloitte. JLL LegacyTexas NexBank SSB Texas Capital Bank Varidesk, LLP Wells Fargo Foundation Winstead PC
Balfour Beatty Construction Corgan EY Frost Bank Granite Properties Holt Lunsford Commercial Invesco Real Estate Jackson Walker LLP KDC Kimley-Horn KPMG Matthews Southwest Munsch Hardt Kopf & Harr P.C. Republic Title of Texas, Inc. Stantec Stewart Title The Howard Hughes Corporation The Turner Construction Company Foundation
Each year, The Real Estate Council receives both financial and volunteer support from funding partners and member companies. Special thanks to each of you for contributing your time, talent, and resources to help us achieve our mission.
Alston Construction Billingsley Company BBVA Brasfield & Gorrie, LLC Compatriot Capital, Inc. Crow Holdings Capital Partners, L.L.C. DPR Construction, Inc. Grant Thornton Haynes and Boone, LLP Hill & Wilkinson Jackson-Shaw NorthMarq Capital ORIX Real Estate Americas Pacheco Koch Consulting Engineers, Inc. PUREPOINT Financial StreetLights Residential Thackeray Partners The Beck Group Todd Interests Trammell Crow Company Trammell Crow Residential Transwestern Westmount Realty Capital, LLC
BENEFACTOR’S CIRCLE 42 Real Estate, LLC Acore Capital AG&E Structural Engenuity Amegy Bank American National Bank of Texas Bank of America Plaza Bank OZK Banner Oak Capital Partners, LP BB&T Benchmark Title Berkadia Commercial Mortgage Bradford Companies
Caddis Healthcare Real Estate CallisonRTKL Capital One Bank Capright, LLC Chicago Title, NCS Dallas Chief Partners LP Corinth Properties CoStar Group Crow Holdings Davidson & Bogel Real Estate Gables Residential Gaedeke Group LLC Gensler GFF Goldman Sachs HALL Group Hillwood Urban HKS HPI Real Estate Services & Investments HRNCIR Construction, LP Hunt Realty Investments, Inc. Integra Realty Resources Jones Day JPI Kane Russell Coleman Logan PC Kennington Commercial Lincoln Property Company Locke Lord LLP MBL Title Merriman Anderson Architects, Inc. MetLife Real Estate Investors Mill Creek Residential Trust LLC Newland Real Estate Group OMNIPLAN, Inc. Orix Foundation Perkins and Will PlainsCapital Bank
Regions Bank Rosewood Property Company Saville CPAs & Advisors Stream Realty Partners The Retail Connection TIER REIT, Inc. Trinity Groves, LLC TRT Holdings, Inc. Turner Construction Company VanTrust Real Estate, LLC VCC Construction Venture Commercial Real Estate, LLC Veritex Community Bank Walker & Dunlop Whiting-Turner Woodbine Development Corporation Younger Partners, LLC
Ace Decor & Finishes, Inc Amanda Ethridge Andrew R. Henry Balfour Beatty Construction Corgan Fauxcades Hill & Wilkinson Hilton Anatole Hotel Jones Day Kimley-Horn Mid Cities Erectors, LLC Perkins and Will Polsinelli PC Venture Mechanical, Inc.
WHO WE ARE TREC is where 2,200 commercial real estate professionals spark community transformation, influence policy, and propel careers in DFW and beyond. Only TREC provides the road map for success and the platform to Build the City You’ve Imagined. WINTER 2020
Learn more at recouncil.com or by calling 214-692-3600.
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 5 1
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.
ReportName [x]cube LABS 1820 Productions 7-Eleven, Inc. A G Hill Partners LLC Accenture Acme Brick Company Active Network AECOM Aimbridge Hospitality Alaska Airlines AlixPartners LLP Alkami Technology Allegiance Title Company Alston & Bird LLP Altair Global Amegy Bank of Texas Amerant Bank, N.A. American Airlines, Inc. American Heart Association, Dallas Division American National Bank of Texas AMN Healthcare Andres Construction Services Andrews Distributing Company of North Texas Aon Arcosa Armstrong Relocation Ashford Hospitality Trust, Inc Associa At Home AT&T Atmos Energy Corporation Atos IT Solutions & Services Audi of America, LLC Austin College Austin Industries AustinCSI AvreaFoster Axxess Bain & Company, Inc. Baker & McKenzie, LLP Baker Botts L.L.P. Balfour Beatty Bank of America Bank of Texas Barnes & Thornburg Baylor Scott & White Health BBVA
Bell Flight Bell Nunnally BGSF Big 12 Conference Billingsley Company BKD LLP bkm Total Office of Texas BLNelson Group LLC Blue Cross and Blue Shield of Texas Boeing BOKA Powell Borden Dairy Company Bottle Rocket Brasfield & Gorrie Brierley+Partners Briggs Freeman Sotheby’s International Realty Brinker International, Inc. Business Jet Center Business Wise, Inc. BuzzBallz/Southern Champion Capital One Bank Carrington, Coleman, Sloman & Blumenthal, L.L.P. Cawley Partners CBRE Group, Inc. Centurion American Development Group CENTURY 21 Judge Fite Company Champion Partners Cherry Petersen Landry Albert LLP Chickasaw Nation Children’s Health CHRISTUS Health CHRO Partners CiCi Enterprises, LP Cinemark Holdings (Cinemark USA, Inc.) Cisco Systems Citi City Electric Supply Clark Hill Strasburger Cleaver-Brooks Sales and Service ClubCorp USA, Inc. Coca-Cola Southwest Beverages Colliers International Comerica Bank Commemorative Air Force Comprehensive Finance Inc
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Copart Corgan Corinth Properties Corrigan Investments, Inc. Cousins Properties CP&Y, Inc. CRIADO Crow Holdings Crowe LLP CSRS 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 De La Vega Development DeGolyer and MacNaughton Deloitte LLP DENSO Products and Services Americas, Inc. DFW International Airport DHD Films Diodes Inc. DLR Group Staffelbach Dorsey & Whitney LLP E Smith Legacy Holdings EarthX Ebby Halliday Real Estate, Inc. Egan Nelson LLP EMR Gold Recycling LLC Eric Affeldt Ernst & Young LLP Estrada Hinojosa & Company, Inc. Ewing Automotive Group Exxon Mobil Corporation FASTSIGNS - Northeast Dallas FedEx Office Fidelity Investments Financial Additions Fluor Corporation Headquarters Foley Gardere LLP
Fox Sports Southwest Freese and Nichols, Inc. Frito-Lay North America Frost Bank Frost Brown Todd LLC Furniture Marketing Group G6 Hospitality LLC Gaedeke Group George W Bush Foundation Gibson Dunn & Crutcher LLP Globe Life Goldman Sachs & Co, LLC Granite Properties Grant Thornton LLP Green Brick Partners Gulfstream Aerospace Corporation Gupta & Associates Inc. Hall Group Harness Dickey & Pierce Hawthorne Family Fund Haynes and Boone, LLP H-E-B/Central Market Hedera Hashgraph Hill & Wilkinson General Contractors Hill+Knowlton Strategies Hillwood Development Company, LLC Hilti North America Hilton Anatole Hines Interests LP HKS Inc. HMS HNTB Corporation Hoar Program Management, LLC HOK Holdingham Group North America HollyFrontier Corporation Holmes Murphy HOLT CAT Howard Hughes Corporation HPI Real Estate Services & Investments/Ross Tower HR&A Advisors HSBC Bank USA HUB International Insurance Services Hunt Consolidated, Inc./Hunt Oil Company Husch Blackwell LLP
C COMMUNITY IBC Bank IBM Corporation Independent Financial Interceramic International Leadership of Texas Invesco Real Estate Invitation Homes Jackson Spalding Jackson Walker LLP Jacobs Engineering Group Inc. JBJ Management JE Dunn Construction Jim Ross Law Group PC JLL JLL Capital Markets Jones Day JPMorgan Chase & Co. Kane Russell Coleman & Logan PC KDC Real Estate Development & Investments Ketchum Public Relations Kilpatrick Townsend & Stockton LLP Kimberly-Clark Corporation Kimley-Horn and Associates Kirkland & Ellis Kosmos Energy LLC KPMG LLP Kubota Tractor Corporation L.A. Fuess Partners Structural Engineers Lancaster Economic Development Corporation LegacyTexas Bank Life School of Dallas Linebarger Goggan Blair & Sampson, LLP Littler Mendelson, P.C. Live Nation Locke Lord LLP Lockheed Martin Lockwood, Andrews & Newnam, Inc. Lyco Holdings Lyft Inc M2 Studio MAPP Mary Kay Inc. Mbroh Engineering, Inc McCarthy Building Companies, Inc. McGinnis Lochridge McGlinchey Stafford McGough Construction McGuire, Craddock & Strother, PC McGuireWoods LLP McKissack & McKissack McKool Smith McLarty Capital Partners WINTER 2020
McRight-Smith Construction Medical City Dallas Hospital/ Medical City Children’s Hospital Methodist Health System MHBT, a Marsh & McLennan Agency LLC company MHT Partners LP Microsoft Corporation Mohr Partners, Inc. Munck Wilson Mandala LLP MV Transportation, Inc. NEC Corporation of America Networking Results Inc. Nicholas Residential Norton Rose Fulbright NTT DATA Inc. Omni Dallas Hotel Omniplan, Inc. Omnitracs, LLC Oncor Options Clearing Corporation Origin Bank ORIX Corporation USA OYO Hotels and Homes Pacific Builders Pape-Dawson Parkland Foundation Paul Quinn College Paycom Penske Motor Group Perkins and Will Perkins Coie LLP Pierpont Communication PlainsCapital Bank PNC Point B Polsinelli Preferred Freezer Services Premier Truck Group Prime 45 Development LLC PSA Constructors, Inc. PureFlow Inc. PwC Qatar Airways Raytheon Company RealCom Solutions Regions Bank Reimagine RedBird Reliant, an NRG Company Rent-A-Center Rogge Dunn Group Rosewood Property Co. RSM US LLP Ryan LLC Santander Consumer USA Scheef & Stone, LLP SCHMIDT & STACY Consulting Engineers, Inc.
Scovell Family Foundation Sendero Sewell Automotive Companies Shackelford, Bowen, McKinley & Norton LLP Sheppard Mullin Sheraton Dallas Showcall Sidley Austin LLP Silicon Valley Bank Simmons Bank Slalom Smoothie King Soniks Consulting Services Southern Glazer’s Wine and Spirits Southern Methodist University Southwest Airlines Southwest Office Systems, Inc. Spectra Spectrum Enterprise Squire Patton Boggs St. Mark’s School of Texas Stantec State Farm Insurance Companies Steinhart Family Advised Fund Stinson Leonard Street Stout Suffolk Construction Sumitomo Mitsui Banking Corporation SMBC Talent Suite Target Headquarters TBK Bank TD Ameritrade TDIndustries TDJ Enterprises Team One Teladoc Telios Tenet Healthcare Texans Can Academies Texas A&M University Texas Capital Bank Texas Central Texas Health Aetna Texas Health Resources Texas Instruments Texas Mutual Insurance Company Texas Scottish Rite Hospital for Children Texas Woman’s University Texas Women’s Foundation The Beck Group The Boston Consulting Group The Brierley Group LLC The Brinkmann Corporation The Broaddus Companies The Commit Partnership
The Crowther Group The Dallas Morning News The Edelman Group The Episcopal School of Dallas The Fairmont Hotel The Freeman Company, LLC The Kroger Co. The Parvin Group The University of Texas at Arlington Thompson & Knight LLP Thompson Coe Thomson Reuters Thryv TIAA T-Mobile US Inc Tom Thumb - Albertsons Topgolf Entertainment Group Town of Addison Toyota Motor North America TracyLocke Transwestern Travelers Insurance Company Trellise LLC Trinity Groves, LLC Trinity Industries, Inc. Truist Turner Construction Company TXU Energy Uber Technologies, Inc. UBS Realty Investors LLC UMB Bank N. A. UnitedHealthcare University of North Texas at Dallas University of North Texas System University of Texas at Dallas USAA UT Southwestern Medical Center Varidesk Veritex Holdings Verizon Wireless South Central HQ Volunteers of America Texas Vox Global Weaver Weber Shandwick 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 Winstead PC Women’s Foodservice Forum Zinwave
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SPECIAL ADVERTISING SECTION
ECONOMIC DEVELOPMENT DIRECTORY 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
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The Colony is a growing city on the east side of Lewisville Lake, 25 minutes from downtown Dallas and 15 minutes from the Dallas Fort Worth International Airport, located along the Sam Rayburn Tollway. Home to approximately 40,000 residents with businesses and retail locating here daily, The Colony continues to maintain its “hometown” feel. Affectionately known as “the city by the lake,” The Colony features 23 miles of shoreline along Lewisville Lake and two lake parks with boat ramps, camping, and many other amenities. Golf courses within the city all provide outstanding lake views with two courses being recognized among Golf Magazine’s top five in Texas in 2010. The Colony is the proud home of the nation’s largest home furnishings store, the Nebraska Furniture Mart of Texas, anchoring the 400-acre Grandscape development. When complete, Grandscape will feature unique entertainment, dining, and retail venues.
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 700 new single family homes valued over $400,000 in the past three years within the highly-rated Birdville and Keller ISDs. Growth is expected around two transitoriented developments (TODs) along the Trinity Metro commuter rail system, TEXRail. TEXRail runs along the famous Cotton Belt line connecting Downtown Fort Worth to DFW Airport along two separate NRH rail stops. North Richland Hills is home to many nationwide and regional business headquarters including: A to Z Therapy, ESNA Texas, Health Markets, Prestige Ameritech, Santander Consumer USA, Smurfit Kappa, Stericycle, and XPO Logistics.
KERI SAMFORD, Economic Development Director THE COLONY ECONOMIC DEVELOPMENT CORPORATION 6800 Main St., The Colony, TX 75056-1133 972.624.3127 firstname.lastname@example.org thecolonyedc.org
CRAIG HULSE Director of Economic Development 4301 City Point Drive North Richland Hills, TX 76108 817-427-6090 email@example.com www.nrhed.com
BUSINESS WORKS BETTER HERE Dallas-Fort Worthâ€™s business climate is more than favorable, the workforce is highly skilled, and highly educated, and the location is about as close to perfect as it comes. Explore our guide: Each page contains a snapshot of the DFW region, our people, companies, and industries. Use this fact-rich tool to promote the region, attract businesses to your community, and expand existing ones.
THE DALLAS-FORT WORTH REGIONAL ECONOMIC DEVELOPMENT GUIDE. AVAILABLE AT DALLASCHAMBER.ORG/DFWFACTS/
“It’s relationships that really move the needle.” Mitzi Chollampel, Senior Manager of Communications and Marketing at Dallas Fort Worth International Airport BY SANDRA ENGELLAND
Whether she’s at work, serving in the community, or spending time with her family, Mitzi Chollampel places a high priority on building strong relationships. As the senior manager of communications and marketing at Dallas Fort Worth International Airport, Chollampel says that people must come first for the airport and the region to continue to thrive. “People make things happen,” she says. “It’s relationships that really move the needle and help you find success.” Her philosophy as she leads the airport’s
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international and domestic marketing, digital marketing, and social media presence is to define DFW’s audience, meet customers’ needs, and focus on relationships at every level. A world class airport impacts the region’s economy in many ways, she says. More companies are choosing to bring their headquarters to the area because of the easy air access both in the United States and abroad. “We’re lucky enough that you can get to every major North American city in less than four hours,” Chollampel says. The central location and the volume of flights to popular cities help business travelers get where they want to go when they want to get there and get back home again. For instance, with almost 30 flights a day to the New York City area, taking a day trip for business is doable. DFW also has a growing international reach with direct flights to almost 70 global destinations. The airport added 14 new international routes in the last year, including Dublin, Ireland, and Munich, Germany. Auckland, New Zealand, has been announced as a new route for 2020. Chollampel works with regional leaders to help draw more business and leisure to North Texas. At least once a year, she travels abroad with the mayors from Dallas and Fort Worth, along with representatives of area chambers of commerce and tourism boards, to raise the region’s profile internationally. It’s paid off with more international destinations, increased regional business
C COMMUNITY and tourism opportunities, and a growing role in global logistics, she says. As the airport adds more cargo service, warehouses and distribution centers follow. “DFW has become an important hub between Asia and Latin America as they move cargo between the two,” Chollampel says. All this is a boon to real estate development and local businesses. According to its most recent fact sheet, Dallas Fort Worth International Airport has an annual impact on the region’s economy of $37 billion. While growing the airport’s business is a primary objective, Chollampel and her staff also strive to improve the day-to-day experience of 73 million annual passengers. The Dallas Fort Worth International Airport mobile app has added some new features, like live wait times for the airport’s 14 security checkpoints. Travelers also can check real-time flight information, order food, and get a better deal on parking by paying in advance. DFW is the fourth busiest airport in the world, based on flight operations. “We try to educate passengers on why this is good for them because sometimes people think, ‘why do you want to be one of the busiest airports in the world?’” she says. Easy access to more destinations helps many travelers. Chollampel says that it’s all about making sure relationships with customers improve along with the volume of air service. Leadership Dallas has helped Chollampel build relationships that not only benefited her in business but gave her more opportunities and insights to serve the community. Each class selects a service project for members to focus on throughout the year. As a part of the Dallas Regional Chamber’s Leadership Dallas Class of 2018, she helped convert space at The Promise House into an indoor recreation center. The Promise House serves up to 1,800 homeless youth each year. Chollampel says that the Dallas Regional Chamber’s Leadership Dallas program gave her opportunities to interact with leaders from the nonprofit sector, local governmental agencies, and the business community. “We learned how our major issues are interrelated and what we can do to take our region to the next level,” she says. She was thrilled to be chosen as an adviser for the Leadership Dallas Class of 2019 and enjoys interacting with Leadership Dallas alumni and has found amazing mentors throughout the community. “I look at mentors almost as a personal board of directors,” she says. “Leadership Dallas gave me a whole other dimension to my personal board of directors.” In addition to her Leadership Dallas involvement, Chollampel serves on the board of directors for the AT&T Performing Arts Center. The Longhorn grad also is one of the founders of Kappa Phi Gamma, the first South-Asian interest sorority. Founded at the University of Texas in 1998, the sorority now has more than 1,000 members at 20 universities. Chollampel and husband John Chollampel, who works in flood risk
CALENDAR OF EVENTS
FEBRUARY. FEBRUARY 26 Speaker Series: 380 Corridor Belo Mansion
TREC’s first Bank of Texas Speaker Series of the year will focus on the future of the 380 corridor. Our panel discussion, led by moderator Ray Washburne, will cover a variety of exciting developments coming to the area, including the headquarters of the Professional Golfers’ Association of America. Get your tickets at recouncil. com/events.
FEBRUARY 27 Talent Attraction Talk presented by BG Staffing, Inc
Dallas Regional Chamber There are a lot of questions to answer when recruiting summer interns. Where do I live? How do I get around? What do I do when I’m not at work? This event will focus on strategies to attract and retain college interns from human resources and recruiting experts in the Dallas Region.
MARCH. MARCH 5
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.
Young Guns Casino Night The Luminary
Casino Night is TREC’s premier Young Guns event, bringing together more
than 500 young commercial real estate professionals for a night of casino-style gaming to raise funds for the annual Young Guns TREC Foundation project. Tickets are available at recouncil. com/events.
MARCH 6 23rd Women’s Business Conference, presented by Jackson Walker LLP. Hyatt Regency
Our theme, “The 100,” marks the centennial of the 19th Amendment’s passage, which granted women the right to vote. Through a full day of programming, we will convene executive and young professional women from across the region to celebrate the modern professional woman and honor those who have led the fight for inclusion and equality. Get tickets at dallaschamber.org/events
APRIL. APRIL 23 FightNight XXXII Hilton Anitole
Join TREC ringside at the Hilton Anatole for one of North Texas’ largest philanthropic events. Since 1989, FightNight has raised more than $27 million to support TREC Foundation’s community investment initiatives. Tickets: recouncil. com/events.
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GIVING GALA 2019 On Thursday, Oct. 24, 2019, The Real Estate Council hosted its annual Giving Gala at the Hilton Anatole in celebration of its 2,200-plus members and 650-plus member companies’ philanthropic and investment initiatives throughout the last year. In celebration of TREC Foundation’s 25th anniversary, the event’s theme was “Build the City You’ve Imagined” and featured entertainment by country singer-songwriter Phil Vassar as well as food trucks and décor inspired by the ongoing Dallas Catalyst Project and State Fair of Texas. Officials from TREC’s Community Investment department also detailed the three-year, $6 million investment from JPMorgan Chase’s PRO Neighborhoods initiative to bring equitable development and affordable housing options to three Dallas neighborhoods as part of the Dallas Collaborative for Equitable Development. PHIL VASSAR ON STAGE AT THE REAL ESTATE COUNCIL’S ANNUAL GIVING GALA
THE REAL ESTATE COUNCIL’S DAVID CAIN WITH HIS WIFE SALLY AND ST. PHILIP’S SCHOOL AND COMMUNITY CENTER PEROT FAMILY HEADMASTER DR. TERRY FLOWERS
MIKE ABLON OF PEGASUSABLON, AMANDA HENDRICK OF CORGAN, AND DALLAS CITY COUNCILWOMAN CARA MENDELSON
THE REAL ESTATE COUNCIL CHAIR JIM KNIGHT OF KFM DESIGN & ENGINEERING, THE AWARD-WINNING SINGER/ SONGWRITER PHIL VASSAR, AND TREC FOUNDATION CHAIR BILL CAWLEY OF CAWLEY PARTNERS
AMANDA BUCKLEY, JARED BROWN, AND MEREDITH QUIQLEY-ROOKER, ALL WITH OMNIPLAN, AND SHAY GOKHALE OF THE BILLINGSLEY COMPANY
ALEX FINDLAY OF CAWLEY PARTNERS AND ELIZA BACHHUBER OF CBRE WITH JOSH FINDLAY OF BKD CPAS & ADVISORS AND CRAIG BACHHUBER
ALICE MURRAY OF GROUNDWORK DEVELOPMENT, MCKAY HEIM OF SCOTTISH RITE HOSPITAL, PAUL HENDERSHOT OF COSTAR
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KATE CAVANAUGH: BUILDING LASTING RELATIONSHIPS, WORKING WITH COMMUNITIES BY SANDRA ENGELLAND
GIVING GALA CHAIR BETH LAMBERT OF CUSHMAN & WAKEFIELD
DUSTIN AND KELLI OLTMANN OF AMERICAN NATIONAL BANK OF TEXAS
STEPHANIE BEASLEY, EMILY RONCK, AND NICOLE MARKIM OF CORGAN
While Kate Cavanaugh didn’t grow up dreaming of a career as a real estate professional, she now couldn’t imagine a better way to make a difference in the lives of others. Cavanaugh. vice president and senior business development officer for Stewart Title, cultivates commercial real estate business. She credits “divine intervention” with helping her find a career she loves. “Real estate is all about how to develop relationships and keep them,” she says. “It’s all about people and finding out what they need.” A little more than 15 years ago, Cavanaugh— then a single mom to two young children— moved to Dallas and took a temporary job working in the office of a family-run small retail developer. Cavanaugh enjoyed the work so much that she stayed to learn everything she could about commercial real estate. She went to work at Stewart Title in 2007. A few years later, she joined the 2009 Associate Leadership Class for The Real Estate Council (TREC), where Cavanaugh discovered a whole new passion in real estate. “It really opened my eyes to the opportunities we have as real estate professionals to make a difference,” she says. In the last decade, Cavanaugh has been involved in many different aspects of TREC, including the group’s steering committee. In 2019, she was chair of the TREC Community Fund, a lending group that supports the building of public facilities and commercial real estate projects that benefit low-income families and their communities in the Dallas area. The TREC Community Fund is helping administer $6 million in grants from JP Morgan Chase’s PRO Neighborhoods Grant. The PRO Neighborhoods Grant already contributed a $400,000 grant to the project for planning purposes. The money helped TREC officials conduct a study for the three areas. “We looked at every tract and knocked on
every door,” Cavanaugh says. The purpose? To plan for equitable development, which involves “finding out from the community what they need and want.” According to the study, those areas lack grocery stores and places for job skills training. Residents don’t want development that forces people out when rents go up. “Neighborhoods see development coming, and they’re wary of gentrification,” she says, “But equitable development is a win-win. It starts with the community and finds projects that are a win for developers but meet a current need.” The concept of looking at community needs is one Cavanaugh says she began learning during the project her ALC class sponsored. The group built the first affordable Silver LEED Certified home in Dallas, located on Congo Street. Cavanaugh says she worked for months on the project and got to know people who live in the neighborhood. Cavanaugh got to know her now-husband Chip Cavanaugh, attorney and shareholder at Munsch Hardt, through TREC events. “I don’t think there’s another organization in Dallas that does what TREC does, connecting people, educating you about the issues facing our city, and making an impact on the community,” she says. “While you’re doing all that, you develop relationships that last.” Outside of TREC, she chairs the boards of the annual Dallas Prayer Breakfast and The Kukhoma Project, a home for abused teen mothers in Zambia.
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VIEW FROM THE TOP
BY LANCE MURRAY
President, McLaren North America In September 2019, British supercar maker McLaren announced that it was relocating its North American headquarters from New York City to a 30,000-square-foot high-tech facility in Coppell where it will be home to roughly two dozen employees. To meet its rapid growth, the new digs give McLaren greater storage and service capabilities to support its network of roughly 27 retailers in North America. McLaren North America President Tony Joseph took time to answer a few questions about the move. WHAT ATTRACTED MCLAREN TO NORTH TEXAS AND COPPELL IN PARTICULAR? Once McLaren North America made the decision to relocate to the Dallas area, Coppell became an immediate consideration. The proximity to the airport and the mass development in the area, especially within the Cypress Waters area, helped to confirm our decision. Our dealership sales and technical training will take place from this facility, so ease of access to the airport is desirable. Additionally, we will host customers and dealers, and our facilities for various events including launch events and the desirability of the area was a key consideration. The new construction and mass development highlights the growth of the Coppell market and identifies with our growing brand.
AS THE HEAD OF MCLAREN IN NORTH AMERICA, WAS THERE ONE THING THAT INFLUENCED YOUR DECISION TO MOVE TO NORTH TEXAS? There were many factors that influenced our decision. We were located on the 24th floor of a New York City high rise and with the business now having grown exponentially over the past eight years that we have been selling cars in North America, we absolutely needed more useable space. We are going from a 4,500-square-foot
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office to a 32,000-square-foot facility that provides us the ability to house a training center, service and diagnostics space, McLaren Special Operations spec room, and better, more useable office space. The other key factors were business friendliness, an international airport, quality of life, the ease of finding a location that met our needs. And we wanted to be accessible to customers or dealer staff.
HOW WILL NORTH TEXAS MEET THE NEEDS OF MCLAREN AS A PLACE TO GROW ITS BUSINESS ACROSS NORTH AMERICA? It’s business friendly. It’s centrally located which allows us to better support our entire North American dealership network. The airport is one of the most efficient airports to travel in and out of. It made perfect sense. Dallas is a growth city. McLaren is a growth company. Dallas is a strong market for McLaren and has even more potential.
THE NEW HEADQUARTERS HAS BEEN DESCRIBED AS HIGHTECH. TELL US ABOUT HOW YOU WILL USE TECHNOLOGY AT THE COPPELL HEADQUARTERS.
better support the dealership network. We will also have an area for McLaren Special Operations, our bespoke division, where customers can customize their cars using high tech 4K video screens. Customers who enjoy heavy customization previously needed to visit the factory in the UK for the specification progress. We will now be able to accommodate the dealers and customers from our Dallas headquarters. For example, each and every McLaren Elva customer is involved in such a spec session because each car is uniquely built to the customer’s taste. We’ll also do all our training for retailers and staff at the facility.
HOW MANY EMPLOYEES HAVE MOVED FROM NEW YORK TO NORTH TEXAS, AND HOW DOES BEING LOCATED IN DALLAS-FORT WORTH BENEFIT THEM? Currently we have 25 employees of whom about half will be making the move to Dallas, as the rest are field-based to work closer with our retailers and customers. I think the business friendliness, cost of living, and quality of life are all enhanced benefits for those making the move.
We will have a service area for diagnostics, and we’ll maintain our own press and marketing fleet, as well as the cars we use for track programs. We’ll have a diagnostic manager on-site who will be able to
WHEN ARE YOU WAITING FOR? Life is what happens while weâ€™re busy making plans. And nowhere is life happening faster than in Downtown Dallas. Now is the time to see why the heart of the third fastest growing city in America is the premier destination for business and residential relocation.
Breaking Ground and Breaking Ground and Reaching New Heights Reaching New Heights in Cedar Hill, Texas in Cedar Hill, Texas
Towering above the Metroplex at 880 feet, Cedar Hill is the highest Towering the Metroplex feet, Add Cedar Hill is the highest elevation above from here to the Gulfatof880 Mexico. this feature to the beautiful, elevation from here to it’s thethe Gulfplace of Mexico. Add this feature to the beautiful, rare environment and businesses continue choosing to call rare environment it’s the place businesses continue choosing home. A variety ofand companies are capturing strong dividends on to call home. A variety of companies are capturing strong dividends on opportunities throughout the city and partners in progress continue opportunities the city and partners in progress continue pioneering its throughout future. pioneering its future. Saddle up and let’s get started on your next big project. Saddle up and let’s get started on your next big project.
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