DFWREALESTATEREVIEW.COM 20 SPRING
IN THIS ISSUE:
HOW MIXED-USE DEVELOPMENT IS CHANGING DALLAS-FORT WORTH
ANATOMY OF A DEAL: LEGACY WEST SCORECARD: TOP DFW LEASES
THE CRANE REPORT
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REDEFINING THE WORKPLACE H A L L O F F I C E PA R K . C O M
ON THE COVER:
1 STATE THOMAS
Photo courtesy of RTKL Associates Inc.
2 ADDISON CIRCLE
Photo courtesy of Town of Addison
3 MAIN STREET, DOWNTOWN DALLAS
Photo by Thomas Garza Photography
4 PRESTON HOLLOW VILLAGE Rendering courtesy of Provident Realty
5 FRISCO SQUARE
Photo by LK Photography-Lara K Hansen
6 CANYON OAK CLIFF
Rendering courtesy of Stratford Land
7 LEGACY WEST
Rendering courtesy of Gensler
8 VICTORY PARK
Rendering courtesy of Trademark Property Company
9 WEST 7 TH
Photo by Jeff Scroggins Photography
10 LEGACY TOWN CENTER Photo by Michael Samples
Welcome Letter . . . . . . . . . . . . . . . . . . . . . . . . . .8 Publisher’s Note . . . . . . . . . . . . . . . . . . . . . . . 10
FOUNDATIONS DFW market statistics, economic indicators, and commercial real estate news . . . . . . . . . . 12
BLUEPRINT FOR PROSPERITY DFW is a sports lover’s paradise. . . . . . . 17
THE CRANE REPORT
21 THE CRANE REPORT
Who’s building what, where. . . . . . . . . . . 21
SCORECARD DFW’s top office, industrial, and retail leases. . . . . . . . . . . . . . . . . . . . . . . . 29
ROUNDTABLE An insider’s view on the mixed-use development movement . . . . . . . . . . . . . . 36
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
E XC L USI V E LY P UB L ISHE D B Y D CUSTOM, A DIVISION OF D MAGAZINE PARTNERS
50 URBANISM Placemaking: How mixed-use
development is changing Dallas-Fort Worth. . . . . . . . . . . . . . . . . . . . 50
Perspectives on Placemaking . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
64 ANATOMY OF A DEAL
WWW.DFWREALESTATEREVIEW.COM PUBLISHER Quincy Curé Preston 214.523.5215 email@example.com EDITOR-IN-CHIEF Christine Perez MANAGING EDITOR Stephanie Davis ART / PRODUCTION MANAGER Michael Samples
COPY EDITOR Kathy Lawrence CONTRIBUTING WRITERS Jeff Bounds Liz Johnstone Hilary Lau Karen Nielsen
Overview How Legacy West was won: Timing, persistence, and experience key to winning the lucrative project . . . . . . . . . . . . . . . . . 64
Office. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Multifamily. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Lay of the Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
DIRECTOR OF SALES Kyle Moss 214.523.5247 firstname.lastname@example.org INTERNS Noelle Jabal Stephanie McKeever
B E T T E R C O N T E N T. B E T T E R M A R K E T I N G .
PRESIDENT Paul Buckley
The Spirit of Cooperation When it comes to public-private partnerships, few regions do it better—or bigger—than Dallas . . . . . . . . . . . . . . . . 74
Dallas Regional Chamber, Top-Level Members . . . . . . . . . . . . . 80
The Real Estate Council, Associate Leadership Council . . . . 85
The Real Estate Council, Impact Investors . . . . . . . . . . . . . . . . 82
Calendar of Events . . . . . . . . . . . . . . 86
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CREATIVE DIRECTOR Kyle Phelps MANAGING EDITORS Casey Casteel DIRECTOR OF PRODUCTION Diane Testa
The Real Estate Council, Young Guns Casino Night . . . . . . . 84
GENERAL MANAGER Jas Robertson
Dallas Regional Chamber, Leadership Dallas . . . . . . . . . . . . . . . 86 View from the Top: Darko Dejanovic . . . . . . . . . . . . . . . . 88
PRODUCTION MANAGER Pedro Armstrong GRAPHIC DESIGNER Emily Slack MARKETING MANAGER Jessica Fritsche Dallas-Fort Worth Real Estate Review® is published for The Dallas Regional Chamber and The Real Estate Council by D Custom, a division of D Magazine Partners, 750 N. St. Paul St., Ste. 2100, Dallas, TX 75201; www.dcustom.com, 214.523.0300. ©2014 All rights reserved. No part of ths publication may be reproduced or reprinted without written permission. Neither the Dallas Regional Chamber nor The Real Estate Council nor D Custom is a sponsor of, or committed to, the views expressed in these articles. The publisher is not responsible for unsolicited contributions.
UNRIVALED EXPERIENCE. UNMATCHED RESULTS. Helping to shape the future of downtown Dallas is a role we take seriously. With more than 5 million square feet of office lease transactions completed on behalf of many of the regionâ€™s most notable companies, we are committed to delivering superior results for our clients and the community we serve. We are proud to have collectively represented numerous clients, including the following, in office transactions in the vibrant Dallas CBD. We thank you for choosing us as your trusted real estate advisors. Winstead
Bell Nunnally & Martin
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Vinson & Elkins
To discuss how we can assist you in your real estate needs, please contact: JEFF ELLERMAN Vice Chairman email@example.com
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A letter from the Dallas Regional Chamber and The Real Estate Council
INFRASTRUCTURE IS KEY IN CURRENT LEGISLATIVE SESSION
2015 CHAIRMAN OF THE BOARD H. Ralph Hawkins, FAIA, FACHA, LEED AP Chairman HKS, Inc. PRESIDENT & CEO Dale Petroskey CHIEF OPERATING OFFICER & CHIEF FINANCIAL OFFICER Pat Priest COMMUNICATIONS, VICE PRESIDENT
The 84th Texas Legislature convened on January 13 and our elected officials have been busy filing legislation on everything from water, roads and bridges, to our schools, businesses, and healthcare. Every bill that is passed and signed into law will impact the communities where we live and work. The Dallas Regional Chamber and The DALE PETROSKEY LINDA McMAHON Real Estate Council have comprehensive President and Chief President and Chief legislative agendas focused on protecting Executive Officer Executive Officer and enhancing our region’s economic Dallas Regional Chamber The Real Estate Council vitality. Our advocates are in Austin working to ensure legislators understand the importance of maintaining our business-friendly environment that enables continued growth in Texas. Transportation infrastructure is key to maintaining our quality of life. The state’s growing population means we must keep up with our infrastructure needs. Federal, state and local funding sources required to build and maintain our transportation systems are inadequate. We are encouraging policymakers to utilize sustainable funding sources to maintain and improve our transportation systems. Our organizations are also asking legislators to swiftly and objectively allocate funding for crucial water infrastructure projects. In 2013 voters approved Proposition 6 that authorized transferring $2 billion from the state’s “Rainy Day Fund” into the State Water Plan. This investment will be used to build new water reservoirs and other infrastructure ensuring Texas communities have an adequate supply of water for the future. Maintaining a moderate, balanced and stable tax structure is also top of mind to ensure we continue to support the positive business climate necessary for Texas to compete in a world economy and strengthen economic development programs. The regular session ends on June 1, 2015, the 140th day. While there are often special sessions, this is the last shot at changing state law until January 2017, when the legislature will convene again. Stay tuned as our organizations work with our Legislators in Austin to increase economic prosperity, improve the quality of life and drive meaningful change in Texas. We look forward to being able to report on productive and positive outcomes following the Legislative Session. In the meantime—do not forget to vote in our local elections on May 9th.
Amy Ramos BUSINESS INFORMATION & RESEARCH, VICE PRESIDENT Duane Dankesreiter BUSINESS INFORMATION & RESEARCH, DIRECTOR Eric Griffin COMMUNICATIONS, DIRECTOR Meredith Turner
2015 CHAIRMAN Sue Ansel Gables Residential VICE CHAIR Diane Butler Butler Burgher Group PRESIDENT & CEO Linda McMahon VICE PRESIDENT MARKETING & EVENTS Debby Hanson VICE PRESIDENT FOUNDATION Robin Minick DIRECTOR OF FINANCE Susan Sellers
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Solana is more than a workplace setting—it’s setting the bar as a world-class center of innovation for modern companies. Home to the largest contiguous block of Class A
office space for lease in the DFW area and the greatest opportunity for success per square inch, Solana is where ingenuity begins—at the intersection of work and life.
UPFRONT QUINCY CURÉ PRESTON Publisher Dallas-Fort Worth Real Estate Review
A letter from the Publisher
Welcome to the Spring 2015 edition of the Dallas-Fort Worth Real Estate Review. In this issue, we take an in-depth look at placemaking and urban environments. North Texas boasts some of the first and most successful walkable urban districts in the country. Without a doubt, it’s the hottest development trend in the region, from adaptive reuse projects in downtown Dallas to new $1 billion suburban-urban communities in the outer ring. Our 14-page package on placemaking begins on page 50. It includes snapshots of more than 20 North Texas projects, as well as perspectives from 14 notable experts. It’s augmented by this issue’s roundtable discussion on mixed-use development, which begins on page 36. The timing is particularly appropriate for showcasing the diversity of DFW’s urban environments, as the region plays host to the Congress for New Urbanism’s 23rd Annual Congress, April 29-May 2. This year’s theme looks at the forces driving the desire for more urban lifestyles. The Dallas-Fort Worth Real Estate Review is proud that its publication will be shared with CNU’s attendees from around the globe. One of the region’s most exciting mixed-use projects is Legacy West, a 240-acre development surrounding J.C. Penney’s corporate campus in Plano. A partnership between KDC, The Karahan Cos., and Columbus Realty Partners, it’s anchored by a new North American headquarters for Toyota Motor, a headquarters for FedEx Office, and a large, 5,000-employee corporate campus for Liberty Mutual. The size and velocity of this development is just stunning. We break down the details in our “Anatomy of a Deal” package that begins on page 64. Like Legacy West, many of the area’s major mixed-use projects are the result of creative public-private partnerships. Dallas-Fort Worth has earned a reputation for funding bold, large-scale projects this way. One example is Klyde Warren Park, a $110 million green space built atop one of the busiest freeways in Dallas. Turn to page 74 to read more on this topic. Be sure to visit www.dfwrealestatereview.com and check out our extended online content, which, as always, includes the interactive Crane Report (new construction) and Scorecard (top leases) maps—information not available anywhere else!
Quincy Curé Preston Publisher
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A baseline for the region’s future
URBAN MULTIFAMILY DEVELOPMENT TRIPLES IN THREE YEARS Last year was one of the strongest on record for multifamily development across North Texas, as the market continues to see blistering construction activity. One of the predominant trends in the market is the relationship between its urban and suburban sectors, according to statistics from CBRE. Of the total units under construction at year-end 2014, a whopping 40 percent were concentrated in the urban cores of both Dallas and Fort Worth. This compares to the 10 percent share urban markets held just three years ago. Total marketwide construction has more than tripled during this time period.
DFW MULTIFAMILY CONSTRUCTION
URBAN UNITS BUILT 2011: 694 2014: 7,970
THE “TEXAS SPREAD” IN HOUSING AFFORDABILITY SEES REBOUND IN 2014 Texas A&M’s Real Estate Center has released its Texas Housing Affordability Index for 2014. The report finds that, even with statewide median home prices increasing by 24 percent since 2011, Texas continues its streak as an affordable housing market. The state had an index value of 1.74 for the fourth quarter of 2014. According to the center’s research economist, Jim Gaines, this means the state’s median income was 1.74 times (or 174 percent of) the income required to qualify to purchase a median-priced home (with an 80 percent mortgage at the prevailing interest rate, and the lender requiring that the total mortgage payment be no greater than 25 percent of the buyer’s monthly income). “The higher the index value, the more affordable homeownership is in the state,” Gaines says. Of the eight North Texas MLS
TEXAS HOUSING AFFORDABILITY INDEX MLS AREA
Arlington Collin County Dallas Denton Fort Worth Garland Irving NE Tarrant County
2.21 2.02 1.75 2.33 2.45 2.75 1.86 2.30
2.51 2.62 1.94 2.62 2.71 3.18 1.96 2.41
MEDIAN INCOME $65,800 $99,831 $67,900 $89,476 $65,800 $67,900 $67,900 $87,423
SOURCE: Texas A&M Real Estate Center
markets, Fort Worth came in with the highest annual index for 2014, at 2.45. The lowest was Dallas, at 1.75, which was still above the statewide annual index of 1.72. Gaines says Texas remains a relatively affordable state compared with other U.S. markets. “From 1999 to 2014, Texas has averaged an index
value about 20 percent higher than the comparable U.S. index score,” he said. “The ‘Texas spread,’ or the differential between the U.S. index value and the Texas index, narrowed to only 6 percent in 2011 as home prices nationally bottomed out, but has rebounded to a nearly 15 percent spread in 2014.”
GROWING COMPANIES ABSORBING SPACE SUBURBAN UNITS BUILT 2011: 5,846 2014: 12,148
The vacancy rate across North Texas continues to fall, coming in at 16.7 percent for the first quarter of 2015, according to a report from Cushman & Wakefield of Texas. This is down from 17.8 percent for the year before. The Dallas central business district took the greatest drop, from 24.9 percent to 21.8 percent, as businesses moved to new or larger spaces in the urban core. Vacancy in the Legacy/Frisco area grew substantially—from 8.3 percent to 15.9 percent—as nearly
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1.5 million square feet of new inventory was added to the market since the first quarter of 2014. Asking full-service rental rates ticked up across the market, to an average of $21.50 per square foot, an increase of 3.7 percent over 2014 levels. Class A rents rose 3.7 percent, reaching an all-time high of $26.65 per square foot. C&W researchers expect rate increases to begin leveling off in the next 12 to 18 months. About 8.8 million square
feet of office space is under construction across North Texas. This is comprised of 18 speculative buildings totaling 3.6 million square feet and another 10 build-to-suits totaling 5.2 million square feet. More than half—about 5 million square feet—is expected to hit the market this year. About 60 percent of the speculative space has been pre-leased, with most located in the Turtle Creek/Uptown, Dallas CBD, and Preston Center submarkets.
F FOUNDATIONS OFFICE MARKET:
BREAKING DOWN BIG-BLOCK AVAILABILITY As the Dallas office market continues to tighten, nowhere is that trend felt more than in the Class A office sector, where large blocks are disappearing fast. Five years ago, tenants looking for 100,000 square feet had 90 options from which to choose; today they have 37, according to research from JLL. 114 Nothing is available in Uptown or 35W along Stemmons Freeway; there’s one option left along North Central Expressway and two along LBJ Freeway—where five years ago, 14 options were available. That submarket and35W Far North Dallas have seen the greatest absorption of big 820 blocks, with 12 options in each being snapped up since 2010. Downtown Dallas and Las Colinas offer the best opportunities for tenants that need a significant amount of existing space. Both have a total availability of about 2.6 million square feet.
Dallas Central Business District
North Central Expressway
Far North Dallas
NORTH CENTRAL EXPRESSWAY
WHERE THE OPPORTUNITIES LIE
2.4 MILLION S.F.
FAR NORTH DALLAS
900,000 S.F. 900,000 S.F. LBJ FREEWAY
2.6 MILLION S.F.
200,000 S.F. 635
DALLAS CENTRAL BUSINESS DISTRICT
2.6 MILLION S.F. 12
DALLAS-FORT WORTH A “PEAKING” INDUSTRIAL MARKET 35E
North Texas is firmly in the “peaking market” category, according to JLL’s latest industrial outlook report. The firm’s signature property clock chart, which illustrates where U.S. markets sit within a real estate cycle, has DFW joining Oakland/East Bay midway through the peaking market quadrant. All major U.S. industrial markets are performing well, either in the rising market or peaking market realms. Dallas-Fort Worth is among the top five national markets when it comes to inventory, year-over-year rent changes, and 2014 net absorption. The region’s current vacancy rate of 5.3 percent is about half of its historic average (10 percent). According to JLL, the following factors are driving market conditions: a surge in construction activity, strong population and job growth, residential home construction, low vacancy rates, healthy demand for industrial space, and an abundance of land for future development. Here are other notes from the report.
UNITED STATES INDUSTRIAL PROPERTY CLOCK 45
Dallas/Fort Worth, Oakland/East Bay Inland Empire, Los Angeles, Silicon Valley/South Bay Central New Jersey, Central Valley (CA), Chicago, Denver, Philadelphia/Harrisburg, Sacramento, Salt Lake City Atlanta, Baltimore, Houston, Indianapolis, Long Island, Minneapolis/St Paul, Northern New Jersey, Orange County, Reno, San Diego, Seattle, St. Louis
Charlotte, Kansas City, Memphis, Nashville, Portland, Richmond, Washington DC Boston, Cincinnati, Cleveland, Columbus, Greensboro/Winston-Salem, Hampton Roads, Las Vegas, Miami-Dade, Milwaukee, Orlando, Phoenix, Pittsburgh, Tampa Bay Broward County / Fort Lauderdale, Detroit, San Antonio Jacksonville, Palm Beach
KEY: ■ MOVING CLOCKWISE ■ HOLDING STEADY SOURCE: JLL
> Market fundamentals remain favorable, with a record low total vacancy rate (5.3 percent) and upward pressure on rates—7.4 percent, year over year.
> With about 17.5 million square feet of industrial space under construction, the vacancy rate is expected to increase over the next few quarters, as spec construction begins to hit the market.
> Over the past year, sales volume of investment-grade industrial product in Dallas-Fort Worth has fallen by about 10 percent. This is largely attributed to a shortage of product on the market, and not a decrease in demand. > The average sales price per square foot currently stands at $65, while the average cap rate is 6.5 percent.
> Of the new construction, about 25 percent is build to suit and 75 percent is speculative development. This is in line with historic norms for the market. > Until the new space comes online, the upward pressure on lease rates is expected to continue. > The largest growth submarkets are South Dallas, DFW Airport, North Fort Worth, and Great Southwest/Arlington. All four have shown healthy demand and have a significant amount of new construction underway.
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ENERGY VOLATILITY AND THE VALUE OF
ECONOMIC DIVERSITY BY CHRISTINE PEREZ
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THE STORY OF MATURING MARKETS HOW ECONOMIC DIVERSITY HAS EVOLVED .85
( US = 1.0 )
.70 .65 .60
DENVER IN ST AU ON UST HO
LOWER DIVERSITY MARKETS
TH OR TW FOR
HIGHEST DIVERSITY MARKETS
.75 DIVERSITY INDEX
The recent decline in oil prices has sparked a lot of discussion about the potential impact on the North Texas economy. Rather than raise concerns, though, it has provided an opportunity to showcase the region’s economic diversity and stability. Economists measure diversity by comparing cities to the overall U.S. economy, says Walter Bialas, vice president and director of research for JLL. “The closer a metro area’s economy looks like the U.S. as a whole, the more diverse it is— and the lower volatility it will see when major shifts take place in a key industry driver,” he says. “This is the case with Pittsburgh and steel in the late 1970s and auto manufacturing in Detroit today.” The U.S. is benchmarked at 100—the most diverse set of industries. As various sectors expand and retrench, markets evolve. Back in the 1980s, Dallas came in with an index of 67. Today, it is benefiting from its economic maturity, and comes in at 80. “That is pretty much at the top of all the major U.S. markets,” Bialas says. “Back in the 1980s, energy was a big part of the Dallas economy. Today, Dallas has deep roots across numerous industries such as technology, telecommunications, banking, and financial services. This balances out the swings we saw in the old days, and are the key reasons we are seeing the broad kind of growth we have experienced in the last several years.” The lowest-ranked U.S. markets and their drivers include Washington, D.C. (index of 45, government), Las Vegas (25, gaming), San Jose (23, technology), and Midland, Texas (8, energy). When it comes to employment, there are 31,000 direct energy jobs in Dallas Fort Worth— about 1 percent of the region’s employment base. Even though energy is still a driver in Fort Worth, that market has become much more balanced in the last several decades, Bialas
SOURCE: JLL, Moody’s DALLAS
says. “In contrast, markets like Austin and Seattle are very tech-focused, which is reflected in their lower scores,” he says. “That is not to say those economies are bad. Rather, the lower score merely quantifies how much those markets rely on a specific industry or industries for growth, and how volatile the reaction might be if there is a sudden change in their drivers.” According to Moody’s Analytics Inc., Dallas has the tenth most diverse economy in the country. (San Antonio comes in at No. 6, Austin at No. 30, Fort Worth at No. 33, and Houston at No. 37.) Things show no signs of changing anytime soon. According to JLL, corporate relocations and expansions in the works across the region cover a broad range of industries, with financial services/insurance (17 percent), technology (15 percent) and consumer/retail entertainment (15 percent) leading the way. The searches add up to a combined 19.6 million square feet of space. Submarkets seeing the most activity are Las Colinas (35 percent), Far North Dallas (19 percent), and Richardson/ Plano (10 percent).
MOST DIVERSE U.S. MARKETS Diverse markets are better able to weather storms when major shifts take place in key industry drivers. Here are the 10 most diverse economies in the country.
1 TAMPA 2 ST. LOUIS 3 KANSAS CITY 4 BALTIMORE 5 CINCINNATI 6 SAN ANTONIO 7 CHICAGO 8 ATLANTA 9 RIVERSIDE, CALIF. 10 DALLAS SOURCE: JLL, Moody’s
F FOUNDATIONS MOODY’S DIVERSITY INDEX FOR SELECT METROPOLITAN REGIONS UNITED STATES DIVERSITY INDEX = 1
1 .9 .8 .7 .6 .5 .4 .3 .2 .1 0
* Metropolitan division. All others are metropolitan statistical areas. SOURCE: Moody’s, JLL
Dallas DALLAS-PLANO-IRVING METROPOLITAN DIVISION: 2014 EMPLOYMENT BY SUPERSECTOR Trade, Transportation, and Utilities
Trade, Transportation, and Utilities
7.0% Financial Activities
MOODY’S DIVERSITY INDEX
Professional and Business Services 2.8% Information
Other Services 6.8% Manufacturing
Leisure & Hospitality
Natural Resources and Mining 0.7% Natural Resources and Mining
Professional and Business Services
4.7%Manufacturing Other Services SOURCE: Bureau of Labor Statistics, Moody’s
Leisure and Hospitality Information METRO-TO-METRO COMPARISON: 2014 EMPLOYMENT BY SUPERSECTOR
VARIANCE FROM PERCENT OF U.S. EMPLOYMENT
PROFESSIONAL AND BUSINESS SERVICES
NATURAL RESOURCES Health Services AND MINING INFORMATION
SOURCE: Bureau of Labor Statistics
* Metropolitan division. All others are metropolitan statistical areas.
5.7% Construction Public Adminstration
Industrial diversity is MOODY’S index used DIVERSITY an to gauge the INDEX >> extent to which an area’s economy resembles the national economy. Thus, it is useful in determining how closely the nation’s economic performance will be mirrored across regional economies. The diversity index for a given year is calculated using employment data at the four-digit NAICS level of industrial detail. A diversity index of one, the highest possible value, indicates that an area’s industrial structure—its distribution of employment across industries—is exactly the same as that of the nation. The lower the index, the less the region approximates the industrial structure of the nation. The index assumes that it is impossible for a regional economy to be more diverse than the national economy. Therefore, there are no diversity index values higher than 1. A state or metropolitan area with a higher diversity index is more likely to behave like the national economy, whereas a region with a very low diversity index will likely behave differently.
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 1 5
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Dallas-Fort Worth’s full spectrum of professional sports makes the region even more attractive to new residents.
TIM HEITMAN / DALLAS STARS
B BLUEPRINT FOR PROSPERITY
BY MIKE ROSA
I was part of a conversation recently about Dallas-Fort Worth being one of a few metro areas with home teams in all five major professional sports in the United States— football, baseball, basketball, hockey, and soccer. That’s a strong selling point when companies are considering a move to our area, even if they are relocating here from places like New York, Chicago, San Francisco, or other cities with a similar array of pro sports teams. Newcomers may not transfer their rooting interests to our local teams, but their favorite sports programs will be regularly be here. It’s clear by the number of jerseys representing the visiting team being worn by attendees at a Dallas Cowboys game, for example, and the amount of cheering for that team, that a lot of people from all over the U.S. have moved here and maintained their loyalties. The Dallas Regional Chamber held a luncheon in March featuring Richard Fisher’s last speech as Chairman of the Dallas Federal Reserve. Attendees wore a wide range of attire, from business suits to athletic wear and team colors. Players and fans from several of the teams competing in the Big 12 Women’s Basketball Championship were in attendance. Seeing those players made me recall that recent pro sports conversation and led me to think about the depth and breadth of sports to which we have access. Our sales pitch to sports-lovers only gets stronger. In fact, it’s the best anywhere.
Officially staking the claim as being the nation’s best sports market requires just one addition: college football. Dallas-Fort Worth is the only region in the country that is represented by the five biggest professional team sports and also has a bowl game that’s in the College Football Playoff rotation. The opportunities that a college football fan has living here are amazing. The regular seasons for North Texas, Southern Methodist University, and Texas Christian University bring teams from three different conferences to our area. There will be a College Football Playoff semifinal game here every three years, starting in 2016. The Cotton Bowl and other bowl games and the annual high-profile matchups held at AT&T Stadium at the beginning of and during each
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 1 7
B BLUEPRINT FOR PROSPERITY
DANIEL T. POPE
season add to our great college football scene. During the State Fair of Texas each year, the area hosts the well-known Texas versus Oklahoma and Grambling State versus Prairie View A&M games. In just the last three seasons, nearly half of all the major division college football teams have played at least one game in North Texas. I counted 57, unofficially. In addition, Toyota Stadium in Frisco has hosted the FCS national championship game for the past few years. But it’s not just about football around here (although that is what I get asked about most when talking with companies and employees thinking of moving to DFW). Football and cheerleading, whether the Cowboys, college, or high school are definitely subjects for which the perceptions newcomers have of Dallas line up fairly well with reality. So it is great to also be able to also mention TCU making the College World Series last year and their great tennis and track programs or SMU’s men’s basketball success, or that around here it is cool to be in the marching band. Even the UTD chess team gets a shoutout whenever we can. It is always helpful to paint a broader picture of what it’s like to live, work, and play here. Because of our warm climate, our ability to also be outdoors and active here yearround has always been a great asset.
Since I moved here in 1988, our region has hosted a Super Bowl, the World Series, NHL and NBA finals, All-Star games, a Davis Cup Final, a Women’s U.S. Open Golf Tournament, a Breeder’s Cup, World Cup matches, and many other soccer matches featuring Real Madrid, Barcelona, and national teams from around the world. We have two annual PGA tournaments and an LPGA tournament, a full NASCAR schedule and an Indy Car race at Texas Motor Speedway, minor league baseball, rodeos, horse racing, and drag racing. We even have Ultimate Frisbee championships, marathons, and WrestleMania. Competitive cheerleaders seem to gather in Dallas by the tens of thousands each year for national competitions. And all of these events are basically within 30 minutes from our front doors. We are the only place in the United States where that’s possible. I wish we had more to offer surfers, mountain hikers or snow skiers. No state income tax, affordable housing, an overall low cost of living and a few other financial benefits they are not used to where they currently live will have to do. Chamber staff lets them know that’s exactly why we have Spring Break and vacation time, plus extra savings in our pocket to be able to enjoy those trips. Although I can’t recall a corporate location decision that we won or lost based upon whether or not there was a particular sporting event or team present, it certainly is WANT TO LEARN MORE an important consideration when a company ABOUT HOW TO GET INVOLVED has narrowed its options to a final few cities. IN BLUEPRINT FOR PROSPERITY? It is important to show North Texas as diverse Contact Mike Rosa, and robust in sports—the same way we are able Senior Vice President, to for arts, recreation, shopping, and restauEconomic Development, rants. Sports contribute mightily to the econoDallas Regional Chamber my, but also to the quality of living here. Simply 214.746.6735 stated, there’s no better place to be a sports fan mrosa@ dallaschamber.org than DFW.
BLUEPRINT FOR P R O S P E R I T Y,
BLUEPRINT FOR PROSPERITY
OUR NEXT STEPS FORWARD
region’s success. This additional investment made by more than 130 organizations in addition to annual
The Dallas Regional Chamber’s economic development program, Blueprint for Prosperity, provides organizations in Dallas-Fort Worth with an accelerated investment opportunity that helps advance our chamber membership dues allows organizations to increase their support of our efforts to further economic prosperity throughout the region. This initiative funds efforts related to direct contact with corporations and location consultants examining the DFW Region.
1 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
At Cushman & Wakefield, putting our clientsâ€™ needs and objectives first has been our culture since 1917. Our entrepreneurial spirit allows our professionals to deliver flexible and innovative solutions to drive meaningful value to our clients.
Client only. Thatâ€™s the Cushman & Wakefield way.
experts in office construction.
KDC NBC STUDIOS DFW WINNER OF THE 2014 ABC NATIONAL EXCELLENCE IN CONSTRUCTION PYRAMID AWARD
w w w. a - p. c o m
PARK DISTRICT, DALLAS
THE CRANE REPORT
Development in Dallas-Fort Worth continues at a brisk pace across all sectors. To help you keep up with it all, we detail projects that are both planned and underway in the region in The Crane Report. Data for the office and industrial markets is provided by Xceligent Inc. Data for the multifamily market is provided by Axiometrics Inc. BY CHRISTINE PEREZ
ON-THE-GRO U N D I N S I G H TS
“I am amazed that our clients are paying the much higher rents that they’re seeing. After they see what the market has for them, many are agreeing to ‘bite the bullet’ to stay in place or even relocate to more expensive options.”
“Expansions are responsible for much of the absorption we are seeing. It is not all about the large corporate relocations and consolidations, but the local and regional companies whose businesses are growing and thriving.”
“We have less product under construction right now than we did at the same time last year, and our demand drivers are still excellent—an increasing population base, more corporations relocating to Texas, and strong job growth.”
“We’re forecasting 2,628 units to be delivered in the Fort Worth metro district in 2015, and 16,901 in Dallas. Given the bump-up in supply, we’ll likely continue to see moderate rent growth and occupancy, as both districts absorb the new units.”
Director of Leasing Hall Financial Group
Managing Partner Stream Realty Partners
Vice President of Research Axiometrics Inc.
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 2 1
THE CRANE REPORT:
PRESBYTERIAN MEDICAL OFFICE SITE RAYZOR RANCH MEDICAL PARK BLDG 1-4
8500 E HIGHWAY 380
608 E HICKORY ST
CENTRE PLACE PROFESSIONAL BUILDING
FRISCO SQUARE BLDG C2 - WOLVERINE
UNICORN LAKE BLDG 2 OAKMONT OFFICE CONDOS BLDGS 3 & 4
STEWART CREEK OFF
TOWN CENTER OFFICE PARK PHASE I & II
ANNOUNCED + UNDER CONSTRUCTION
OLD TOWN BLVD NORTH
BARTONVILLE TOWN CENTER
TANGLEWOOD OFFICE PARK
THE VILLAGE CENTRE PHASE I
THE SHOPS AT FOSSIL CREEK PAD SITE 2
801 ENTERPRISE DR
SE OF MID CITIES BLVD AND PRECINCT LINE RD
WE BELIEVE THIS IS THE BEST SITE IN NORTH TEXAS FOR A PROJECT OF THIS KIND.
3111 UANAH HILL RD BLDGS B & C
4B CENTRE 121
2900 LAKE VISTA DR CARILLON MYERS & CROW OFFICE COMPANY BLDGS 1-3 THR CONNECTION PARK 414 N MAIN ST BEAR HICKO BLDG I&II WATERMERE MEDICAL CREEK CENT 10740 OLD STREAM REALTY PLAZA PHASE II 7 ELEVEN OFFICE DENTON RD PARK CORPORATE ZELDA GRAPEVINE HEADQUARTERS OFFICE PARK FAA STATION FREEPORT 8821 CORPORATE CAMPUS COMMONS HERITAGE TRAMMELL CROW CO WILCOX PLAZA OFFICE DAVIS BLVD PARK 8821 N AT LAS COLINAS TARRANT NORTH BEACH STADIUM PKWY & HERITAGE TRACE SOUTHWEST PHASE 7&9 VICTORY AT THE PONDS RIVERSIDE BUILD BLDGS A-E 7114 MID DECKER COMMONS CITIES BLVD BLDGS 400,500,600
SIZE: 502,000 s.f. KEY PLAYERS: Trammell Crow Co. and MetLife Inc. (developers), HKS Inc. (architect) DETAILS: The 19-story office tower will include ground-level retail. An accompanying 32-story office tower will include about 250 residences and 13,000 square feet of retail space fronting Klyde Warren Park.
THE PLAZA OFFICE CONDOMINIUMS BLDG 3
NE OF MORNINGSIDE ST AND S OAK ST
2310 AVONDALE HASLET RD
MONTEREY OFFICE PARK BLDG 1
CENTRE THE COLO PHAS
4431 LONG PRAIRIE RD
MEADOWLANDS ADDITION BLDG I
111 BOLAND ST
3017 W 7TH ST
THE OFFICES @ HAMPDEN WOODS
OVERTON TOWER III VICTORY MEDICAL PLAZA VICTORY MEDICAL CENTER
PARK HILL MEDICAL PAVILION 1200 6TH AVE WESTBEND CLEARFORK TEXAS OFFICE SHALE TOWER
— SCOTT KRIKORIAN, SENIOR MANAGING DIRECTOR WITH TRAMMELL CROW CO.
7000 BRYANT IRVIN RD
2337 S BELT LINE RD
WATERSIDE BLDG L TRANSWESTERN DEVELOPMENT CO
320 MERCEDES ST
SE OF OAKDALE RD AND MACARTHUR BLVD
NW OF W PLEASANT RD AND S BOWEN RD LOT 4 BLDG A 4015 IH 20 W
HEALTH TEXAS SOUTHWEST MOB
MATLOCK PROFESSIONAL OFFICE PARK BLDGS 2 & 3
5900 DIRKS RD
HULEN VILLAGE OFFICE BLDG I-IV
SIZE: 800,000 s.f. KEY PLAYERS: Red Development LLC (developer), HKS Inc. (architect) LEASING AGENTS: Burson Holman, Shannon Brown, and Ben Davis, CBRE DETAILS: This mixed-used project near Victory Park in Uptown will feature an office tower and residential tower, with on-site amenities that include retail, restaurants, and open space.
2 2 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
MANSFIELD MEDICAL THE PLAZA II & III ATRIUM CANNON PROFESSIONAL PLAZA
GRAND REGENCY PROFESSIONAL BUILDING
DATA SOURCE: XCELIGENT INC., A COMMERCIAL REAL ESTATE RESEARCH FIRM IN PARTNERSHIP WITH NTCAR
SIZE: 197,740 s.f. KEY PLAYERS: Cawley Partners (developer), BOKA Powell (architect) LEASING AGENTS: Randy Shipman and Jeremy Duggins, Cawley Partners DETAILS: This project off the Dallas North Tollway will feature a rooftop terrace, cafe, and fitness center. Construction is expected to get underway in the second quarter of 2015.
LEGACY WEST, TOWER ONE
SIZE: 308,000 s.f. OF E MAI MIDTOWNE NW GEORGE HOP KEY PLAYERS: Gaedeke Group LLC (developer), Morrison Dilworth + Walls (architect), Austin Commercial (general contractor) LEASING AGENT: Belinda Dabliz, Gaedeke Group DETAILS: This multitenant tower will be located within Legacy West, across the street from Toyota Motor’s new headquarters and adjacent to FedEx BELINDA Office’s campus. DABLIZ
TUSCAN TOWN SQUARE SE OF PROSPER TRL AND COIT RD THE FORUM AT PROSPER WEST NE OF ELDORADO PKWY AND TEEL PKWY LOT 4 INTERESTS, LLC ELDORADO MEDICAL PLAZA
MEDICAL OFC CONDOS
9255 DALLAS PKWY FICE CENTER V FRISCO SQUARE STONEBROOK OFFICE PLAZA
1831 HARROUN AVE PARKWAY VIRGINIA MEDICAL PLAZA
METHODIST MCKINNEY OFC CONDO BLDGS C,D,E
For North Texas office developments at least 10,000 s.f. in size, Xceligent Inc. shows that 65 projects totaling 9.3 million s.f. are under construction; another 146 projects totaling 16 million s.f. are planned or proposed. All are represented on this map; a sampling are labeled.
SUMMIT PARK II LAKE FOREST CENTRE
VICTORY PLAZA AT CUSTER UNIT 6
MEDICAL MCKINNEY OFFICE PARK BLDG 5 RIDGEVIEW VILLAGE MEDICAL CONDOS BLDGS A,B,C ONE FOUNTAIN COURT
1256 W EXCHANGE PKWY CHC DEVELOPMENT THE GATE CENTER VICTORY AT STAR CORPORATE THREE & FOUR TWIN CREEKS THEFRISCO STONEBRIAR OFFICE BRIDGES PLACE NEBRIAR COMMONS ALLEN PLACE BLDGS 2-6 ON LEGACY BLDG 9 SENTINEL CAPITAL PRESTON TOYOTA ALLEN CENTRAL HEADQUARTERS LEGACY OFFICE PARK I-IV PORTFOLIO SALE E AT PARKWAY ONY CREEK SE II PROFESSIONAL SPRING CENTER COMMONS PARKER OAK TREE PROFESSIONAL OFFICE PARK PLAZA BLDG A
4101 HIGHWAY 121 BYPASS BLVD
4120 MIDWAY RD
DEXTER PROFESSIONAL PARK
CITYLINE BLDGS 1-4 KDC CITYLINE RAYTHEON KDC US HIGHWAY 75 @ RENNER ROAD
RICHARDSON MEDICAL OFFICE PARK
REE ORY TRE
PARK CITIES PLAZA
1 9 2 5
SHOAL CREEK BLDG 1
2505 TURTLE 2727 TURTLE CREEK BLVD CREEK BLVD FROST TOWER PRESCOTT GROUP HARWOOD MCKINNEY & OLIVE INTERNATIONAL CESAR PELLI, FAIA TWO AKARD TWO VICTORY PLACE ARTS PARK PLAZA
212 N OP 12
CROSSING CAMPBELL OFFICE PARK
2850 SHORELINE TRL
8020 PARK LN 8111 WESTCHESTER AVE
2232 E AUWYLER RD
SIZE: 168,125 s.f. KEY PLAYERS: Crow Holdings (developer), Beck and Dalgliesh Gilpin Paxton (architects), Beck (general contractor) DETAILS: This four-building addition completes the redevelopment of Old Parkland, a historic former hospital acquired by Crow in 2006. One of the buildings features a stunning coppertopped dome; another includes a large underground debate hall.
OF FM 544 NW AND WESTGATE WAY
GREEN MEADOW MEDICAL CENTER 6
T DING 4
OLD PARKLAND— WEST CAMPUS
CENTENNIAL PROFESSIONAL CENTER
FOUR GALLERIA TOWER
MERCER PARK MONITRONICS
GRANITE PARK V
SIZE: 306,000 s.f. KEY PLAYERS: Granite Properties (developer), BOKA Powell (architect), Balfour Beatty (general contractor)
3405 N SHALEM BELT LINE RD PARK
THERE IS UNPRECEDENTED GROWTH IN THE NORTH PLANO MARKET.
276,278,280 S COLLINS RD
DAVIS STREET MARKET
● ANNOUNCED ● UNDER CONSTRUCTION
— GREG FULLER, COO, GRANITE PROPERTIES
3920 W WHEATLAND RD
IN ST AND PPER RD 2
THE CRANE REPORT: INTERACTIVE VERSION
online at dfwrealestatereview.com
UNDER CONSTRUCTION 5
SIZE: 455,526 s.f. KEY PLAYERS: Cousins Properties and Hines (developers), Duda/Paine Architects (architect) LEASING AGENTS: Bill Brokaw and Cynthia Cowen, Cushman & Wakefield DETAILS: This 23-story tower will include 15 floors of office space atop ground-level retail and seven floors of parking. Amenities include a rooftop terrace, bicycle storage, a full fitness center, and access to the Trinity Rail Express, DART line, and Katy Trail.
8020 PARK LANE
SIZE: 122,000 s.f.
KPMG PLAZA AT HALL ARTS
SIZE: 18 stories, 444,082 s.f. KEY PLAYERS: Hall Financial Group (developer), HKS Inc. (architect), Turner Construction (general contractor) LEASING AGENT: Kim Butler, Hall Financial Group DETAILS: Slated to open this year, this Arts District project is 72 percent leased to KPMG, Jackson Walker, and others.
KEY PLAYERS: Northwood Investors (developer), Gensler (architect), Beck (general contractor) LEASING AGENT: Ward Eastman, DTZ DETAILS: This mixeduse project along North Central Expressway includes four stories of office space above firstfloor retail. Amenities include access to the Park Lane DART station.
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 2 3
THE CRANE REPORT:
US 380 BUSINESS PARK BLDGS 1-5
2834 GEESLING RD
1450-1500 N WESTERN BLVD
WESTGATE BUSINESS PARK BLDG 1-3
MARKET STREET INDUSTRIAL PARK BLDGS 4 & 5
ANNOUNCED + UNDER CONSTRUCTION
ANNOUNCED DEVELOPMENTS 1
CENTER BUSINESS BLDGS A,B,C
● ANNOUNCED ● UNDER CONSTRUCTION
MAJESTIC AIRPORT CENTER DFW
SIZE: 250,000 s.f., 330,000 s.f., and 287,165 s.f. DEVELOPER: Majestic Realty LEASING AGENT: Al Sorrels, Majestic Realty Co. DETAILS: This three-building third phase is part of what eventually will be a 3.2 million s.f. Industrial park on 200 acres near State Highway 121 and Valley Parkway in Lewsiville.
SE OF EAGLE PKWY & OLD DENTON RD
DCT WATERS RIDGE - DCT INDUSTRIAL
PARKVIEW COMMERCE CENTER 1, 2, 3 EASTGROUP PROPERTIES DFW AIRPORT AIRPOR LKQ MAJESTIC NORTH CENTER DFW DISTRIBUTION CENTER LAKESIDE RANCH PROLOGIS BUSINESS PARK PARK 121 BLDGS 1, 21
BAG HERITAGE HEADQUARTERS
ALLIANCE GATEWAY 24 & 25
LOGISTICS FREEPORT NORTH 164 CENTER II CROSBY DFW TRADE CENTER VIII WEST STADIUM POINT HERITAGE INDUSTRIAL V SOUTHWEST BUSINESS ROYAL TECH 18 PARK 114 PARC BLDGS 7, 8,
CRAWFORD ELECTRIC SUPPLY
DFW EAST LOGIST DFW/161 DISTRIBUTION CENTER BLDGS A CENTER 100, 200 & 300 COUNTY CENTREPORT LINE RD BLDGS 1-8 LIBERTY PARK GSW NOR HILLWOOD BLDG 1, 2 & 3 - LIBERTY
RAILHEAD INDUSTRIAL PARK BLDGS 1, 3, 5, 8, 9, 10
3000 ROY ORR BLVD BLDGS A & B
1460 AVENUE S
101 JIM WRIGHT FWY
PARK 161 DISTRIBUTION CENTER - AVERA
MEDSTAR MOBILE HEALTHCARE
LOGISTICS CROSSING 2 SOUTH CENTRAL DISTRIBUTION CENTER II
RAILHEAD INDUSTRIAL PARK
SIZE: 299,000 s.f. DEVELOPERS: Ridge Development and LaSalle Investment Management LEASING AGENTS: Trey Fricke and Reid Bassinger with Lee & Associates DETAILS: A second 343,000 s.f. building is being marketed as a build-to-suit. The park has the ability to provide service from both BNSF Railway and Union Pacific Railroad.
CARTER DISTRIBUTION CENTER BLDG B
MOUNTAIN CREEK BLDGS 1 & 2 CROW HOLDINGS
FIRST ARLINGTON COMMERCE CENTER @ I-20
7 COMMERCE PARK BLDGS
KENNEDALE PKWY F
THE CRANE REPORT: INTERACTIVE VERSION
online at dfwrealestatereview.com
619 S WISTERIA ST
UNDER CONSTRUCTION POINTSOUTH LOGISTICS AND COMMERCE CENTRE
SIZE: 249,600 s.f. DEVELOPER: Majestic Realty Co. LEASING AGENT: Al Sorrels, Majestic Realty Co. DETAILS: This project, at the southeast corner of Interstates 20 and 45 in Hutchins, is the first phase of a 1.7 million s.f. park near FedEx Ground’s shipping hub and the Union Pacific intermodal terminal.
2 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
PARKVIEW COMMERCE CENTER
SIZE: 276,054 s.f. KEY PLAYERS: EastGroup Properties, Architects-Plus, and MYCON General Contractors LEASING AGENTS: Ken Wesson and Adam Graham, Lee & Associates DETAILS: This three-building complex at Gerault and Spinks roads in Flower Mound is slated for completion in the summer of 2015.
407 INTERCHANGE ST 9101 WESTRIDGE BLVD FRISCO CENTER II BUILDINGS A, B, & C
2421 E UNIVERSITY DR
FRISCO COMMERCE CENTER BLDG D
1406 AUDIE MURPHY PKWY
6220 COMMUNICATIONS PKWY HAGGARD PROPERTY GROUP
ALLEN PLACE BLDG 1 SENTINEL CAPITAL
SIZE: 259,672 s.f. KEY PLAYERS: Holt Lunsford Commercial, RGA Architects, Pacheco Koch, Cadence McShane LEASING AGENTS: John Gorman and Jim Brice, Holt Lunsford Commercial DETAILS: This South Dallas development offers Interstate 30 frontage and visibility at Chalk Hill Road.
NEBRASKA FURNITURE MART - WAREHOUSE
PLANO TECH CENTER
501 W FM 544
2910 GUILDER DR
VALWOOD CORPORATE CENTER BLDGS 1,2,3,4 44 W Y RD THREE VALWOOD VIII DIPLOMAT I&II
SW OF MARQUIS AND NICHOLSON BLDGS 1&2
BUSINESS MERCER PARK BLDG 2
11070-11090 N STEMMONS FWY
JUPITER TRADE CENTER
TICS A, B & C
9726 BROCKBANK DR
5770 S STATE HIGHWAY 34
Xceligent reports that 51 North Texas industrial projects totaling 13.9 million s.f. are underway; another 144 projects totaling 46.8 million s.f. are planned or proposed.
RTH Y TRUST
BUSINESS 6 I-30 CENTER BLDG 3 PINNACLE PARK FIRST BLDGS A & B - FIRST INDUSTRIAL
WILDLIFE COMMERCE PARK II
SIZE: 345,000 s.f. KEY PLAYERS: Crow Holdings Industrial, O’Brien Architects, Halff Associates, Pritchard Associates, RPMx Construction, TGB Partners, Ridgemont Construction LEASING AGENTS: Will Mundinger and John Bateman, Crow Holdings Industrial DETAILS: This second facility follows the successful lease-up of the first 315,000 s.f. building at this 220-acre industrial park in Grand Prairie.
MUSTANG CREEK BUSINESS PARK NORTH
SOUTHWEST DISTRIBUTION CENTER
PLANNED POINTSOUTH LOGISTICS & COMMERCE CENTRE BLD TEXAS TRANS GATEWAY I BLDGS 1 & 2
NW OF IH 20 AND JJ LEMMON RD
SOUTHFIELD PARK 35 BLDG 2 & 3 SEEFRIED INDUSTRIAL
INTERSTATECOMMERCE 20 COMMERCE HILLWOOD CENTER
SOUTHPORT LOGISTICS PARK SUNRIDGE RIDGE BUSINESS PARK LOGISTICS CENTER OF PLEASANT RUN RD SOUTHPORT SE & SUNRIDGE BLVD TRADE CENTER BLDGS 1-5 DALPORT TRADE CENTER 2 & 3 I 35 INTERCHANGE I PANATTONI DEVELOPMENT
STONERIDGE CROSSROADS BUSINESS PARK TRADE CENTER BLDG III
DALPORT TRADE CENTER 6 PANATTONI DEVELOPMENT
2700 S MILLERS FERRY RD
DATA SOURCE: XCELIGENT INC., A COMMERCIAL REAL ESTATE RESEARCH FIRM IN PARTNERSHIP WITH NTCAR
SOUTHFIELD PARK 35
SIZE: 1.1 million s.f. KEY PLAYERS: USAA Real Estate Co., Seefried Industrial Properties LEASING AGENTS: Terry Darrow, Kurt Griffin, and Nathan Orbin of JLL DETAILS: This project, the largest spec industrial facility under construction in North Texas, is the first phase of a four-building, 2.3 million s.f. park on West Danieldale Road in DeSoto.
WORKPLACE RESOURCE GROUP
SIZE: 70,000 s.f. KEY PLAYERS: Billingsley Co., O’Brien Architects, Gensler TENANT REPS: Jeff Ellerman and Seth Kelly, CBRE DETAILS: This industrial build-to-suit off Rosemeade Parkway between Midway Road and Marsh Lane will be ready for occupancy before the end of the year.
DFW AIRPORT NORTH DISTRIBUTION CENTER II
SIZE: 164,000 s.f. and 185,000 s.f. KEY PLAYERS: Huntington Industrial Partners, Artemis Real Estate Partners LEASING AGENTS: John Fulton and Brett Owens, Transwestern DETAILS: Located on Lakeside Parkway in Flower Mound, this two-building development is expected to be ready for occupancy by August 2015.
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 2 5
THE CRANE REPORT:
! ! URBAN SQUARE AT UNICORN LAKE II
ANNOUNCED + UNDER CONSTRUCTION
ANNOUNCED DEVELOPMENTS 1
DISTRICT OF HIGHLAND VILLAG
Axiometrics reports that 87 multifamily projects totaling 24,074 units are under construction across the North Texas region; another 155 projects totaling more than 43,000 units are planned or proposed.
UNITS: 351 DEVELOPER: Trammell Crow Residential DETAILS: Designed by Good, Fulton & Farrell, this is the first of four communities planned for a 54-acre development adjacent to CityLine, totaling 1,250 units. The apartment complex also will include 10,000 s.f. of retail space.
DRY CREEK RANCH II
! ! ! MANSIONS AT
WATERFORD GLEN SAGESTONE VILLAGE PH II
! ! SEVON
DOLCE LIVING HOME TOWN PH 1
! ! ! ! !!HUNTER PLAZA !! ! HULEN PLACE DEV !! ! ! THE ! ! BERKELEY II THE ELAN WEST 7TH
UNITS: 249 DEVELOPER: Catalyst Urban Development DETAILS: McKinney Urban will sit at the northeast corner of State Highway 121 and U.S. 75, near the Medical Center of McKinney and Collin College. The $29.4 million project will include three- and four-story apartment buildings and a 4,800 s.f. club and fitness center.
! ! ! !
● ANNOUNCED ● UNDER CONSTRUCTION
CENTER PLACE APARTMENTS PH II
! ONLINE EXTRA
THE CRANE REPORT: INTERACTIVE VERSION
! ! ! REGALIA AT
online at dfwrealestatereview.com
UNDER CONSTRUCTION 3
UNITS: 326 DEVELOPER: Henry S. Miller Co. DETAILS: The company has acquired four acres near Fort Worth and Sylvan avenues in Dallas for this $43 million development.
2 6 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
UNITS: 387 DEVELOPER: Trinsic Residential Group DETAILS: The third Dallas area project for Trinsic, Aura Cedar is being built on six acres near Cedar Springs Avenue and the Dallas North Tollway.
ST. PAUL SQUARE THE TOWERS BY THE PARK
2 ! !! ! !CHAPEL VILLAS AT ! SORREL PHILLIPS CREEK CREEK RANCH ! CREEKS ! ! CROSSING !! ! TWIN !! ! ! ! ! ! PARKSIDE WINDHAVEN THE BOAT HOUSE ! AT AUSTIN RANCH !! WEST !! ! ! AMLI PLANO VILLAGE ! THE AVENUES JUNCTION 15 ! AT CARROLLTON JEFFERSON ! AURA ONE90 CENTER ELAN !! PLANO! !! ! !! !! 1 ! GATEWAY ! ! ! ALTA KELLER ! ! THE LOFTSCROSSING MAPLESHADE SPRINGS AT CITYLINE I APARTMENTS THE STANDARD ! ! AT CITYLINE I ! ! AURA PRESTONWOOD GREENVUE ! I APARTMENTS VV&M ! MUSTANG STATION ! ! AT ! PARK CENTRAL ! CREST 5 ! AMLI ON ! ! RIVERSIDE ! ! ! !! WHITE ROCK JEFFERSON TRAILS ! ! LAS COLINAS LAS COLINAS ! !APARTMENTS ! STATION APARTMENTS ! !! ! ! ! AMLI ! CAMPION LINCOLN ! THE LIVE OAKS TRAIL KNOX ! AT THE BRANCH ! ! LOCALE GLENCOE ! ! ! ! ! APARTMENTS !!!! 4! 6! ! !! TOWNHOMES STILLWATER PEAK MAPLE ! !! ! ! AND FLATS DISTRICT !! !! ! ! CAMDEN ! ! ! ! !! VICTORY PARK ! !!! !! ! THE OLYMPIC ! ALTA WEST ! ! ! COMMERCE !! ! ! ! ! ! !!! ! !! ! ! SOUTHSIDE FLATS 3 ! BY JEFFERSON LOFTS AT ! SYLVAN THIRTY
AMPION HOMES LAKE DALLAS
FAIRFIELD AT ROSS
Just North of Dallas. Far from Ordinary. Close to Perfect.
! ! CREEKSIDE SOUTH
! MANSIONS AT WOODBRIDGE
MIDTOWN CEDAR HILL
DATA SOURCE: AXIOMETRICS INC.
BRICKYARD AT MERCER
UNITS: 401 (first phase); 467 (second phase) DEVELOPER: Billingsley Co. DETAILS: This community will wrap around Mercer Crossing Lake in Farmers Branch, with easy access to LBJ Freeway, Interstate 35-E, and State Highway 190.
UNITS: 210 DEVELOPER: Alamo Manhattan DETAILS: Scheduled for completion in the third quarter of 2016, this five-story development will include two amenity courtyards and a 2,500-s.f. rooftop terrace.
McKINNEY ECONOMIC DEVELOPMENT CORPORATION
McKinneyEDC.com SPRING 2015
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 2 7
NEIMAN MARCUS AT THE SHOPS AT CLEARFORK
CASSCO DEVELOPMENT CO.
The Dallas-Fort Worth commercial real estate market is off to a strong start in 2015, across all sectors. The region continues to benefit from strong job and population growth, solid market fundamentals, and a diverse economic base. Here we look at the top five office, industrial, and retail leases of the past three months, with data provided by Xceligent Inc. BY CHRISTINE PEREZ
ON-THE-GRO U N D I N S I G H TS
“You cannot hide the fact that more than 300 people are moving here each day. There are more large companies looking at relocations or consolidations in this area than ever before.”
“Expanding tenants will continue to absorb space, and corporations will continue to evaluate and choose North Texas as a top relocation region for their real estate needs. Let the good times roll.”
“Current deal activity suggests that 2015 will be as strong as recent years. But speculative development won’t continue at the same pace, until the latest wave of new product hits the market and leases up.”
“Retail space continues to remain tight with little vacancy. Retailers are laying out smaller stores in order to reach their customers and to help reduce occupancy and overhead costs.”
Principal and Managing Director Avison Young
Principal Fults Commercial Real Estate
Vice President Hillwood
Senior Vice President SRS Real Estate Partners
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 2 9
S SCORE CARD
OFFICE LEASES 2 5 1 3 4
1,0006,117 SF 6,11816,854 SF 16,85540,000 SF 40,00188,615 SF 88,616200,000 SF
DATA SOURCE: XCELIGENT INC., A COMMERCIAL REAL ESTATE RESEARCH FIRM IN PARTNERSHIP WITH NTCAR
LARGEST OFFICE LEASES
SIZE: 148,000 s.f. in Riverside Commons at 5000 Riverside Drive in Irving TENANT REPS: Matt Heidelbaugh and Cribb Altman of Cushman & Wakefield LANDLORD: Brookfield, represented by Johnny Johnson and Trey Smith with DTZ DETAILS: The financial services firm is consolidating two Irving offices into space at Riverside Commons that was previously occupied by BlackBerry.
SIZE: 104,528 in Trinity Towers at 2777 N. Stemmons Fwy. in Dallas TENANT REPS: Doug Carignan and Larry Toon of JLL LANDLORD: GE Capital, represented by Chuck Sellers and Lauren Perry of Peloton Commercial Real Estate DETAILS: This was a new lease for the property, following GE Capitalâ€™s $5 million renovation, which included elevator upgrades and a new fitness center and conference center.
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NEC NORTH AMERICA
SIZE: 119,611 s.f. at Royal Ridge V at 3929 W. John Carpenter Fwy. in Irving TENANT REPS: Mike Wyatt and Bill McClung of Cushman & Wakefield LANDLORD: Signature Office REIT Inc., represented by Nathan Durham and Fletcher Cordell of Transwestern DETAILS: The tech company will move its U.S. headquarters to Royal MIKE Ridge V in December, keeping its WYATT operations within Irving.
GRAY REED & MCGRAW PC
SIZE: 58,000 s.f. in Thanksgiving Tower at 1401 Elm Street in Dallas TENANT REP: Sanders Thompson with Transwestern LEASING AGENT: Woods Capital, represented by Jon Altschuler, Sam Meginnis, and Mike Dement of Altshuler & Co. DETAILS: The law firm is the largest of several tenants that recently renewed space in the 50-story downtown tower.
CEC ENTERTAINMENT INC.
SIZE: 55,257 s.f. in Westway One at 1707 Market Place Blvd. in Irving TENANT REPS: Carl Ewert and Elysia Ragusa of JLL LANDLORD: 1707 Market Place Boulevard Irving LLC, represented by Kurt Cherry, Brittany Ricketts, and Shea Byers with PM Realty Group
S SCORE CARD
44,17193,593 SF 93,594185,010 SF
185,011376,601 SF 376,602821,502 SF
DATA SOURCE: XCELIGENT INC., A COMMERCIAL REAL ESTATE RESEARCH FIRM IN PARTNERSHIP WITH NTCAR
LARGEST INDUSTRIAL LEASES
FERRARA CANDY CO.
SIZE: 1.1 million s.f. in Grand Lakes II in Grand Prairie TENANT REPS: Matt Mulvihill and Nathan Lawrence with CBRE LANDLORD: Duke Realty Corp., represented in-house by Randy Wood
DETAILS: The company, which makes, repackages, and sells a wide variety of candy, opted to ink a long-term renewal at its current home.
SIZE: 337,500 s.f. at 730 E. Trinity Blvd. in Grand Prairie TENANT REP: Tom McCarthy with JLL LANDLORD: Prologis, represented by Steve Berger and Steve Koldyke with CBRE DETAILS: The logistics company has signed on for more than half of this 588,364 s.f. building in the Great Southwest submarket.
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MI WINDOWS AND DOORS
SIZE: 401,600 s.f. in DFW Airport North Distribution Center at 1900 Lakeside Drive in Flower Mound TENANT REPS: Blake Kendrick and Luke Davis of Stream Realty Partners LANDLORD: Huntington Industrial Partners, represented by Cannon Green of Stream DETAILS: The company will take full occupancy of the building once construction is complete this summer.
GENCO I INC.
SIZE: 324,984 s.f. in Commerce 20 at 4951 Langdon Road in Dallas TENANT REPS: Mark Collins and Dean Collins with Cushman & Wakefield of Texas Inc. and Brian Zurawski with Summit Realty Group
LANDLORD: Hillwood, represented inhouse by Toby Rogers and Bates Arnot, along with Dave Anderson of CBRE DETAILS: The logistics provider leased about half of this 651,400 s.f. building near Interstate 20 and Bonnie View Road.
KUEHNE & NAGEL INC.
SIZE: 268,000 s.f. in Waters Ridge I in Lewisville TENANT REPS: Blake Anderson and David Eseke with DTZ LEASING AGENT: Steve Trese, CBRE DETAILS: This 120-year-old company has evolved from a traditional freight forwarder to a global provider of fully integrated supply-chain solutions. SPRING 2015
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S SCORE CARD
17,02438,217 SF 38,21860,858 SF 60,859132,000 SF
DATA SOURCE: XCELIGENT INC., A COMMERCIAL REAL ESTATE RESEARCH FIRM IN PARTNERSHIP WITH NTCAR
LARGEST RETAIL LEASES
SIZE: 123,000 s.f. at Castle Hills Marketplace in Lewisville DEVELOPER: Cencor Realty Services LEASING AGENT: Michelle Caplan and Steve Gray of The Weitzman Group DETAILS: Kroger continues its North Texas expansion with a new store that will anchor what’s ultimately planned to be a 400,000 s.f. retail center along State Highway 121 at Josey Lane.
SIZE: 90,000 s.f. at The Shops at Clearfork in Fort Worth DEVELOPER: Cassco Development TENANT REPRESENTATIVES: Jack Breard and Amy MacLaren of CBRE | UCR. DETAILS: With its existing lease at Ridgmar Mall set to expire, the luxury retailer opted to relocate to this new 270-acre mixed-use project along the Trinity River in Fort Worth.
SIZE: 40,000 s.f. at CityLine in Richardson DEVELOPER: Regency Centers DETAILS: The grocery store will anchor the first 81,000 s.f. phase of CityLine Market, a retail center located within CityLine at Plano and Renner roads.
SIZE: 38,000 s.f. at Frisco Market Center TENANT REPS: John Zikos and Jonathan Cooper of Venture Commercial Real Estate, and Walt Brown and Tim Dollander of Diversified Partners LANDLORD: Hermansen Land Development, represented by Darrell Hernandez of UCR DETAILS: The company will build a new facility within Frisco Market Center, a 100-acre development at the northwest corner of Main Street and the Dallas North Tollway in Frisco. 3 4 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
HENNES & MAURITZ
SIZE: 31,000 s.f. at Sundance Square in Fort Worth LANDLORD: Sundance Square, represented in-house by Bill Booker Jr. DETAILS: This will be the seventh North Texas store for H&M, one of the world’s largest fashion retailers. SPRING 2015
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MIXING IT UP AFTER DECADES OF URBAN PLANNING THAT FOCUSED ON SEGREGATING PROPERTY TYPES, MIXED-USE IS EMERGING AS THE HOTTEST DEVELOPMENT TREND IN NORTH TEXAS. IN A ROUNDTABLE DISCUSSION, INDUSTRY EXPERTS SHARE THEIR INSIGHTS ON WHAT’S DRIVING THIS MOVEMENT— AND WHY MIXED-USE IS HERE TO STAY. BY CH R I STI N E PE R E Z PHOTOGRAPHY BY M ICHAEL SAM PLES
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R ROUNDTABLE IT WASN’T TOO LONG AGO THAT “NEW URBANISM” WAS CONSIDERED A FAD, WITH MOST DEVELOPERS TAKING THE TRADITIONAL ROUTE AND BUILDING STANDALONE OFFICE, RETAIL, AND MULTIFAMILY PROJECTS. But Corporate America and millennials are demanding the live-work-play experience. That powerful force has sparked a flurry of massive new mixed-use developments across Dallas-Fort Worth, including CityLine in Richardson, Cypress Waters near Coppell, Legacy West in Plano, and The Star in Frisco, among others. Along with that, the market is seeing a number of vertical mixed-use redevelopment projects, such as the Statler Hilton and One Main Place in downtown Dallas. What are some must-haves—and some common mistakes—in mixed-use development? What are lender perspectives on the product type? And how much mixed-use can the market support? We asked seven industry experts to weigh in on these and other topics. Here’s what they had to say.
MEET THE EXPERTS
As vice chairman in DTZ’s office tenant representation group, Randy Cooper has been a top-producing broker for 30 years. Throughout his career, he has brokered more than 24 million square feet in deals, including a 2 million-square-foot campus at CityLine in Richardson for State Farm.
Robert Dozier heads up the retail group for Lincoln Property Co. In that role, he is responsible for acquisitions and development for the company on a national basis. During his tenure he has overseen the development of more than 7 million square feet of retail space, valued at more than $1 billion.
As vice president of O’Brien Architects, Mick Granlund oversees the design department and business development for the firm. He has been the lead designer on a number of project types, including two high-profile current developments, Nebraska Furniture Mart and The Star.
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Q: How have mixed-use projects evolved over the years, and what’s behind the explosive growth in development? RANDY COOPER: In the 1980s, there would be a piece of land, and it would show retail on the front, very dense and urban-like, with office space, and then apartments or multifamily in the back. But so few of those developments really ever got built around here. In the 1990s, we would use the term “mixed-use” for an office building that had a deli and some really bad retail around the corner, with apartments that were unconnected but just happened to be there. Then, because you had such broad, geographic areas between the different submarkets, developers became inward focused on their buildings, and what a tenant’s experience would be like. What’s happening lately is driven by the maturity of the tenant base, on what they’re looking for, especially as they start to see successful projects around the country. MARIJKE LANTZ: It used to be just dealing with tenants who are there from 9 a.m. to 5 p.m. Maybe they’d have a beer afterwards. Maybe they could drive down the street and get the dry cleaning. Today, mixed-use is not just for the employees that work in the office buildings, but residents, too. Can they, during the day, go out and do some sort of sports or outdoor activity, and then go back to the office? Can they get out and clear their heads? This means having restaurants, office space, outdoor amenity space, multifamily, and a place for people to walk their dogs. COOPER: There’s also the need for having well-thought-out plans for automobile traffic and pedestrian traffic. Thinking about what it means, psychologically, to walk through a landscaped, well-thought-out plaza that is in and amongst the mixed-use development, versus something that has cars whizzing by. ROBERT DOZIER: At Lincoln, mixed-use early on was an afterthought as to certain components. Our apartment group would say we want some ground-floor retail. We’d drop a Subway, a dry-cleaners, and a coffee store and call it mixed-use. The evolution in mixed-use that we’ve seen at Lincoln is a greater integration of all of the components—office and retail and multifamily—without one component being
added just as an afterthought to the original development. From the retailer’s perspective, the evolution has really come from condensing their footprint and agreeing to go more urban and do things that they wouldn’t typically do in the past. They talked a mean game early on. When the retailers said they wanted to do something urban, that meant they still wanted their 40,000-square-foot footprint and their sea of parking out front. Now we’re seeing retailers that are coming around, wanting to create that unique, different experience that helps drive sales. Getting people out for an experience, as opposed to online shopping. ARTI HARCHEKAR: It’s the nuances when we craft these urban areas. They need to be walkable in the sense that you can walk and get to your daily services within five minutes. But also, paying attention to streets that are multimodal and that act as linear civic spaces and are also functional. Environments that are actually stimulating, where people want to be, and you have this creative flow of ideas. That’s really what makes these successful places. Then having trails, open spaces, a vibrant mix of uses and a high-quality building fabric that actually interfaces with the street. Where the programming of the public realm works with what’s going on in the buildings.
Arti Harchekar focuses on the creation of sustainable communities through placemaking and urban design. In her role as urban design officer for Townscape, she works with developers to generate the best community project under form-based code.
As senior vice president of investments at Billingsley Co., Marijke Lantz is responsible for office, industrial, multifamily, retail, and land acquisitions, to grow the company’s real estate portfolio. She also oversees office build-tosuits and major leases.
The owner of Corinth Properties, Frank Mihalopoulos has 36 years of experience in real estate investments and the development of retail and office properties, primarily in the Southwest. His projects include both new construction and redevelopments of malls and other property types.
Known as a thought leader in the industry, Neal Sleeper is president of Cityplace Co., developer of a 130-acre mixed-use project in Uptown. Since 1991, Mr. Sleeper has overseen the development of more than 3,700 residential units and 500,000 square feet of retail space.
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NEAL SLEEPER: The highest form is when you create a walkable environment—the ability to live someplace where you can shop, maybe go to your office, do most of the things you do on a regular basis, without ever having to get in your car. It really takes a well-thought-out, critical mass of retail, so that the retailers actually feed off of each other. To have the kind of streetscape where people really can feel safe and enjoy, with wide, well-lit sidewalks, and interesting things to walk by, as opposed to a parking lot. COOPER: In a mixed-use development, there needs to be a shared mindset. So when a developer that owns a tract of land starts talking with a retail specialist, a multifamily specialist, and an office specialist, they really need to be in sync. The developer needs to listen to all those experts. There are so many large-scale developments going on in Dallas right now, in different parts of the city. The mindset of an office user of a million-square-foot campus with 4,000 people in a building is that they want to be in mixed-use development, but if they keep their own people inside the building with a company cafeteria—or worse, a subsidized company cafeteria—expect the retail to fail. They’re going to just die during the day. FRANK MIHALOPOULOS: The real key is traffic generators. A project can be employment-based, like State Farm and CityLine, or it’s star-based
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like the Dallas Cowboys’ project in Frisco. Mass-transit is another traffic generator. It’s service-based, be it a job or health center. Traffic is the fuel that feeds mixeduse. If you don’t have traffic, you’re not going to succeed. Many mixed-use projects have had issues. Many have lost money. Mockingbird Station lost $20 million before the second owner took it over. And yet we look at that as one of the most successful mixed-use projects today. And if it wasn’t for the public subsidizing projects with TIFs, or Plano writing a check to get Toyota there, it doesn’t work. First, you’ve got to create a need. The other part is evolution. I’m Greek. The Greeks invented most of everything that you see today. If y’all remember, the original mixed-use project was the Acropolis. Underneath the parking lot is the Plaka, and underneath is the shopping district. So for everybody who has been to Greece, you see mixed-use at its best there. My forefathers—the Parthenon, the Acropolis, all the gods that created the use, created the traffic generator. People lived there, people ate there, people shopped there. It survived thousands of years, because it was built on a mountain, on a certain area. The urban cities of Chicago, New York, and Washington—they’re all based on an urban plan to be a mixed-use community. These were evolutions of the streets, the sidewalks. You go to Barcelona. They don’t have 90-degree corners. They have 45-degree angles on their buildings so they can open a plaza into the intersection so people have interaction going on. Part is the planning and how you interact, but it’s how you lay the foundation. LANTZ: Corporations used to be so inward-focused. They wanted the employees to get to the office and stay there. They go to work, have the cafeteria, and then they leave. Now businesses are realizing that people want to come and go during the day, and they sometimes will be more productive at 10 p.m., because they went out and did their event outside somewhere and then came back. So now the corporations are starting to rethink their needs by being outwardly-focused, based on their employees. And remember, you’ve got three generations in these office buildings. COOPER: They’re battling for new employees, and those new employees don’t want to eat in the company cafeteria. That’s not their idea of fun.
“ THOSE NEW EMPLOYEES DON’T WANT TO EAT IN THE COMPANY CAFETERIA. THAT’S NOT THEIR IDEA OF FUN.”
MICK GRANLUND: There are a couple of things really driving the popularity of mixed-use developments right now. First, a lot of cities are looking around and trying to figure out ways to bring people back into the city by providing a mixed-use development that has living, working, dining. It encourages people to come back into the inner core. Second, it has to do with our younger people and how they live and spend their money. Fundamentally, I don’t think young people today are that much different, because we all want to spend time with our friends. When I was a young person, my vehicle for doing that was my car. Today, the vehicle is your cell phone. Then prior to young people starting their family, you have to get to your job. You have to have a place to live. Your expendable income is either spent out in the suburb, supporting an apartment or a house, a car, couple of cars maybe, or it’s spent in one of these mixed-use, urban areas where they don’t have to have two cars—or a car at all. They can have more disposable income to spend communicating with their friends, either at a restaurant nearby or whatever. Those things are driving people more towards mixed-use development. COOPER: This is not a hypothesis: When you talk to the HR directors at these companies, they will explain to you what type of environment they’re looking for. It’s because of direct interaction with employees that are dictating exactly what it is.
They’re not doing it because they think it might be cool; they’re doing it because they know that they need to be in the lead with respect to who they’re going to hire and what their proposed hiring plan would be. Millennial employees have to be happy. If they’re not happy, they’re not going to be productive. It’s different for my generation. Nobody ever told me I’ve got to be happy. However, in order for millennials to thrive, and in order for the company to thrive, there’s a certain level of happiness that has to be a part of their work environment, and mixed-use delivers on that. HARCHEKAR: One other force is the housing market. Millennials are postponing when they’re going to have children, and then you have baby boomers that are downsizing. Hence, more than 80 percent of the growth in households is going to be families without children. They want to be in urban environments. where they have stimulation and social interaction with people outside in the community.
Q: So let’s break down demand for mixeduse space from office user, retail tenant, multifamily resident, developer, and investor perspectives. LANTZ: It’s funny, because we’re all talking urban, but really the definition of “urban” has
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R ROUNDTABLE changed to suburban-urban. As it’s out in Frisco and Plano, and it’s Cypress Waters and all those different places. Whoever would have thought that when we’re talking about urban mixeduse, we would be talking about Richardson or Far North Dallas, where 10 years ago there was really nothing there. The whole definition of “urban” really has changed, just because of the mixed-use environments. HARCHEKAR: We’ve been hearing a lot about Class A offices and the need for true integration. However, there’s also a growing need for an incubator office. Single-owner businesses are on the rise. As baby boomers retire they want to continue their income, and need their own places to work. Therefore, these flexible, mixed-use environments are important in terms of having a collaborative environment, with a continuous flow of ideas. Cooperative space, street-facing live/work, live/work lofts—all of these things are going to be as important as Class A offices. COOPER: The No. 1 engine for all this is the continued population and job growth. Without that, there wouldn’t be the fuel to go develop these huge mixed-use developments. This is another big advantage of North Texas. It is a huge geographic area. In almost every direction, there’s growth. There are still huge chunks of available land with an incredible development community here—some of the folks sitting here at this table—that have capability to go pull these things off, with the financial sources they need and the expertise. A lot of cities are much further along in their maturity and just don’t have the opportunity we have. They have available land outside of their communities, but we have that plus so much population and job growth. Think about it: We have five or six huge new mixed-use developments on a scale that never existed before. It’s unbelievable. SLEEPER: From an office standpoint, Uptown is a great example. People are moving to Uptown because it’s what their employees want. They want that walkable environment. They want the ability to live near where they work. They want to be able to have a lot of choices for places to eat, places to shop, places to go after work for a drink. All of that plays into what has made Uptown successful. Twenty or 25 years ago, all the real estate companies were moving out north of LBJ. Now they’re all moving Uptown and downtown. People are competing for employees, and that millennial generation and even some older employees really want to be in
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this kind of environment. That was a big factor in The Richards Group moving closer in. Their employees wanted to be in the Uptown environment. MIHALOPOULOS: In the suburbs, where a lot of these big projects are kicking off, it’s driven by the employer. It’s driven by State Farm. It’s driven by Toyota. It’s driven by FedEx Office. They wanted an urban style of life, not a campus style. The problem we have, though, is retail is not the driving force. The retail guys—we follow housing, and job centers, and we’re supplementing the services. At the Toyota headquarters, the retail will be 70 percent restaurants. Never has it been that much. It used to be 30 percent restaurants and the opposite retail shops, specialty. So everything is confined to more of a service, part of the entertainment. ... Now, you have cities forcing apartment developers to put in percentage retail. For example, we need to put 14,000 square feet in a project on Fort Worth Avenue with Trammell Crow Residential. We’ve designed the retail next to it, but the key here is, it’s part of the project, but it’s separated. SLEEPER: Frank, you bring up a good point. I heard a term at a UIL panel the other day about “de-retailing.” De-retailing is where cities required somebody to build retail at the base of their apartment complex, and you can’t get anybody to lease it; or if you do, it’s the bail bondsman or the pawn shop and the nail salon. So they’re going back in and converting that space to something else, because it really does not work in a retail model. Another interesting thing is your point about the 70 percent restaurants in these places. The thing that’s getting harder and harder is creating an environment where those soft goods retailers can be successful, and doing that in a mixed-use environment. You guys have done it, Robert, but what’s the key to that? How do you make that work? DOZIER: Well, it’s funny. Our office and our multifamily divisions always say retail is important. They put the highest land cost on my component. What’s driving a lot of the mixed-use is the lifestyle choices. These are renters by choice. The retailers’ anchors today are restaurant driven and the interactive retailers are important. These are the retailers that offer an experience, whether it’s Apple doing the Genius Bar or Sur La Table doing the cooking classes, or Orvis doing fly-fishing classes. Those are unique experiences that bring customers. You want people coming back to these environments, to people watch and to walk. This is their social entertainment. From a retail perspective, online shopping is big. So what can we do as a developer to
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“PEOPLE ARE MOVING TO UPTOWN BECAUSE IT’S WHAT THEIR EMPLOYEES WANT. THEY WANT THAT WALKABLE ENVIRONMENT.” —NEAL SLEEPER
create the experiences you can’t achieve online or in a traditional shopping center? We spend a lot of time on merchandising plans and going after the right tenants, and a lot of times you have to subsidize retailers to come in and help create that sense of place. GRANLUND: In the past, the retail has been the driver to bring in the office and the residential around it. Now the retail is an amenity. HARCHEKAR: Some of the things that we’ve done to alleviate the retail issue, because that’s definitely a lesson learned, is require flex space, especially in writing the ordinance for that area. Essentially, the ground floor is built to commercial standard. You have the right volume with the ceiling heights and finish-out, but any use can occupy that space until the market is ready to handle the retail. That’s one of the tools that we’ve used. MIHALOPOULOS: The traditional retailer will not be in a mixed-use project. They could be adjacent to it or next to it. But your grocery store needs their parking. Your shoe store needs their parking. They demand their parking. If we don’t have a parking ratio of 4.5 or 5 or some cases 6 per 1,000, the deal doesn’t get done. The traditional users are going to be part of a project on more of a horizontal basis than a vertical basis. You see it in an urban area, where you’ve got an urban specialty grocery store that’s part of a project. In the suburbs, you’re still going to have to have the parking fields. SLEEPER: It is working though, in that what we’re seeing now, in areas like Uptown, where even the grocery stores are coming in and being a part of mixed-use projects. We have a Whole Foods coming on McKinney Avenue. In the suburbs, I think it would be pretty tough to do.
Q. Drilling down a little deeper, what are some “must-haves” in the design, development, and tenancy of a mixed-use project? And how does sustainability come into play?
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MIHALOPOULOS: How you integrate your parking, and how you use your parking, and who’s using the parking lot for the office, who’s using the parking for the residential, and who’s using it for retail. You’re going to have failure if you don’t have that resolved. You design walkability and how you do your tenant mix. The other part is the services that come into play in these mixed-use projects. You don’t want to be living over a kitchen, where all the smoke and exhaust is coming up, and you’re trying to sleep and you smell the meal they just cooked. So how you ventilate a restaurant, simple things like that, are important. Where does the restaurant put their grease trap and dumpsters? They have to be away from where you’re mixing it. On McKinney, you go to a movie theater and you’ve got to make sure that you’re parked in the right place. You don’t want to get towed away because you parked in somebody’s residential parking lot. Those are issues. Valet parking has solved a lot for restaurants and all; but if I’m making $60,000 a year, I can’t afford valet parking every time I go to eat. So I better have available, easy, convenient parking. DOZIER: What happens in the charrettes that you have on mixed-use is that every component talks about the must-haves. The apartment guy
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R ROUNDTABLE talks about what Frank mentioned: Security, smells, private parking. The residents have to have their own private parking, going directly to their units. Then, from a retail perspective, I’m in there saying, “Guys, we’ve got to create open spaces. We have to create situations where restaurants are going to be looking out onto parks. What is that unique experience that we’re going to be able to drive these users to come here for? How can we get the retailers to rent this space? What are we going to offer them?” Our office group is going to be very focused on what do we need to drive that anchor tenant to kick off the building. Everyone’s musthaves are different, and the key is accommodating them within these lifestyle developments. COOPER: To me, the must-have is transportation. In that, the ultimate mixed-use development in Dallas is Uptown. One of the great things about it and why it works, first and foremost, is it’s not forced. It’s not fake. It’s evolved and it’s real. It happened over time, and it has multiple access points, from the tollway, from North Central Expressway, it’s got east to west,
it’s got DART capability, it’s got the trolley, and other things. Psychologically, one of the great things about CityLine was that you could drive to it or use public transportation. DART was such a huge driver in the decision to go to that location. Other folks are making that decision for these big mixed-use developments without public transportation, especially as you move to Frisco and now Prosper. That’s a big step to say that we’ve got multifamily, retail, and office, and we have one way to get here. I’d like to see DART rail continue expanding and get that Cotton Belt Line in. I
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AWARD-WINNING COMMERCIAL DEVELOPMENTS A GROWING, EDUCATED POPULATION BUILDING FOR THE FUTURE UPSCALE LIVING & RECREATION IN THE HEART OF D/FW METROPLEX
Keri Samford, Economic Development Director 972.624.3127 • email@example.com • www.TheColonyEDC.org 4 6 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
>> THE REDEVELOPMENT OF DOWNTOWN OFFICE BUILDINGS >> CHALLENGES THAT ARE UNIQUE TO LARGE-SCALE PROJECTS >> MIXED-USE DEVELOPMENT ALONG FRISCO’S “$5 BILLION MILE” >> HOW DFW IS FARING WHEN COMPARED TO OTHER MAJOR METROPOLITAN AREAS.
dfwrealestatereview.com SPRING 2015
think it would be fabulous for the city. I think people need to focus on it. LANTZ: Big office users and developers are also looking at an exit plan. If the strategy changes, can their office space be readapted? They don’t want to create this big campus or building that is too specialized if they need to downsize or get out. They realize a lot of big corporations had mammoth headquarters built specifically for them, and they can’t really be reused. When we’re talking to big office users, we’re
BENBROOK SMALL TOWN BIG BACKYARD
saying: “Okay. This works for you. But does this give them the ability to expand there, or give them the ability to contract, and can somebody else reuse it?” SLEEPER: If you’re really going to create a successful, walkable, mixed-use environment, it really starts with design, and it starts with putting those ground-floor retail uses up on the street, not behind a parking lot. Every retailer will tell you they want their parking right out in front of their store. They want their customers to pull in and park there. It takes a lot of determination to get retailers to go in those streetfront environments with parking behind, but when you get enough mass, then it really works and they benefit from that. It’s a negotiation with every single tenant. Restaurants below residential works great, if you do everything right. If you have them properly ventilated, or work out a deal with the tenants so they don’t have people out drinking and celebrating on the patio at 2 a.m. when people above are trying to sleep. You’ve got to work all those things in as
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R ROUNDTABLE part of your leasing, as part of your design. It’s harder than it looks, and it takes a lot of coordination and effort to make those things work properly. HARCHEKAR: I think the other thing is authenticity. It’s really important that these are places where people want to be. If people don’t form attachments to them, then they don’t want to reinvest in those places over time. It’s minding those details. It’s about generating long-term value—not just for the developer, but also for the community. Having vibrant places where the collective sum is a greater value. GRANLUND: There are two kinds of mixeduse developments: There’s the kind that grow into a mixed-use development over time, like Uptown. It has taken a long time to get to where it is today from where it started. Then, there are the mixed-use developments that a lot of us are working on today, where you go in and take down a chunk of land and try to create something from the start. Capital has allowed that to happen in a very collapsed timeframe. When we think about mixed-use developments like this, your great public spaces and your outdoor spaces and the space that you travel through to get from one function to another are critical. Then, what is the message that you’re sending about this development? Is it clear to the public that is coming, or is it confusing? One way or another, you can make or break the success of a development. What is the opportunity for discovery? Take Legacy for an example. We all may have a different image of what Legacy Town Center is, but it’s our image because of our experience while we’ve been there. A mixed-use development has to have those opportunities for people to create their own experience. MIHALOPOULOS: The other part is what shared elements are there. You have to be able to have a connectivity, but also compatibility.
Q. Let’s talk about redeveloping existing single-use projects into mixed-use space. What are some of the challenges and opportunities? DOZIER: At Village on the Parkway, we had to reposition the asset because it was functionally obsolete. There was a three-story, 130,000-square-foot Bed, Bath & Beyond, which faced north. All customers would come to the anchor store and park on the north side of it. So then the five interior buildings to the south
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never received any sort of walkability, cross-shopping or even visibility to whoever was going to the anchor. On the south side of the project, it was just an unanchored little strip that had the Pancake House back there. After we bought the project, the first thing we did was create a north and a south anchor, barbell-type anchors that face inward. It goes back to what Neal was talking about. It’s hard to convince retailers, like Whole Foods, to turn their back to the road—in this case, Belt Line, and face south into the shopping center. That was a huge challenge, but we finally convinced them to do that. What ends up happening is everyone goes to the Whole Foods on the north end, or the state-of-the-art AMC on the south end and we create that walkability with Neighborhood Services and Hopdoddy and the restaurants and the retailers that we have going in there. Another thing we did was create the ability to add hotels and other uses. I think a common mistake a lot of developers make is feeling they have to use all the entitlements they have day one. In our Turtle Creek Village redevelopment, we said, “Let’s keep it simple stupid.” We tore down one office building and put in Fresh Market. We are going to have 100,000 feet of retail, and the renovated existing offices there. It’s entitled for a 150-key hotel, 400 units of apartments, and another million square feet of office. But you don’t have to build it all at once. We have a successful development—let it mature, see how it operates, and we can add those uses in future years. MIHALOPOULOS: We’ve been redeveloping old malls. Our challenge is making sure we have control of the product—complete control. Because if there are multiple owners, there can be an obstruction to the plan. We looked at the Southwest Center Mall, old Red Bird Mall, but there’s so many different owners and so many people at the party that it’s hard to say, “Let’s come up with an overall plan to change this.” That’s what we’ve done with 100 Oaks Mall, in Nashville. With existing retail, we created office, but we had a mixed-use issue because we had a movie theater, which
R ROUNDTABLE has a very strong demand for parking. The good news is, though, their demand is at night, and the office element is during the day, so they completely overlap. We were able to get the city to give us a shared parking agreement. That saves 10 acres of the parking lot. It’s how you plan these uses. In West Manchester, Pennsylvania, we’re “de-malling” a project. We’re creating an open courtyard area and an environment where the tenants are moving outside. We have a hotel that’s there with another hotel site next door to that. We’ve got apartment land, because we’ve created a town center and an environment that’s inviting, where people want to come. We’re adding four restaurant pads, because they all want to have restaurants. The good news is, these department stores and big retailers have realized they want restaurants because that brings traffic. If somebody stops and has lunch in front of my shopping center, they’ll come in and shop. HARCHEKAR: We found challenges in converting single-use to mixed-use. It’s important to evaluate the context, but these single-use projects were built really for one user and one life cycle. They’re not really durable construction that is flexible for multiple users and they also created silos within themselves. They’re walled off from having any adjacency. Like the Garden Apartments, which are completely walled off. There’s no connection. There’s not even the ability within residential to convert any of those units to a coffee shop or a pub or anything like that. If you think about pad sites, the infrastructure is inefficient. You’ve got block depths that are not deep enough, and utilities and other things that are laid out in those areas, and there’s no possibility for redevelopment in the future. MIHALOPOULOS: Sometimes you just need a bulldozer. Prestonwood Mall is the perfect example. It just wasn’t going to work, so you had to bulldoze it and put in a new center. Now they’re adding apartments and office elements. Sometimes, you just have to start over. MORE ONLINE AT DFWREREVIEW.COM.
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Accelerating success. 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
BISHOP ARTS DISTRICT
A RG CO N
F JEF OT PH INS GG RO SC RA OG
LEGACY TOWN CENTER
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PLACEMAKING HOW MIXED-USE DEVELOPMENT IS CHANGING DALLAS-FORT WORTH
BY LIZ JOHNSTONE CHRISTINE PEREZ KAREN NIELSEN STEPHANIE DAVIS
A TRANSFORMATION IS UNDERWAY in North Texas, where the mixeduse movement has taken hold with a vengeance. Massive, city-sized projects are springing up in the suburbs, and towering downtown office buildings—some that have stood vacant for a decade or more—are finding new life with added retail, apartment, and hotel components. Dallas-Fort Worth’s placemaking mirrors its risk taking-ethos, says Scott Polikov, president of Gateway Planning Group. “Cities and developers are willing to try new approaches to an old craft—the art of neighborhood design,” he says. In this special package, we showcase the wide diversity of mixeduse projects across the region, and share the perspectives of some of the experts who have helped bring them to life. It’s a process that’s not for the faint of heart, says Barry Hand, studio director and senior associate at Gensler: “Those engaged in it are building some of our next great civic and neighborhood spaces, while realizing great value for all involved.” Dallas-Fort Worth is a relatively new metropolitan area. It’s experiencing robust population growth and continuing to win major corporate expansions and relocations. For these reasons and more, mixed-use development here should continue, Hand says. “Texans are bold, and there will be countless opportunities to compose, reshape, and refine many areas into those coveted and sought-after memorable places that tie the community to particular neighborhoods and districts.”
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THE EVOLUTION OF
MIXED-USE DOWNTOWN DENTON
McKINNEY URBAN VILLAGE 17
23 FRISCO SQUARE
THE GATE WADE FRISCO STATION 21 PARK THE STAR 20 10 GRANITE PARK LEGACY WEST GRANDSCAPE LEGACY TOWN CENTER
12 WATTERS CREEK
15 DOWNTOWN PLANO
AMLI GALATYN STATION
SOUTHLAKE TOWN SQUARE
13 ALLIANCE TOWN CENTER
FIREWHEEL TOWN CENTER
MIDTOWN DALLAS VILLAGE AT ROWLETT
PRESTON HOLLOW VILLAGE
PARK LANE PLACE
1 MOCKINGBIRD STATION VIRIDIAN TRINITY RIVER VISION WEST 7TH
VICTORY PARK 3 MAIN ST THE CANYON IN OAK CLIFF
8 SUNDANCE SQUARE ARLINGTON CITY CENTER
WEST VILLAGE/CITYPLACE 2
6 SOUTHSIDE ON LAMAR
BISHOP ARTS DISTRICT LANCASTER URBAN VILLAGE
DESOTO TOWN CENTER DOWNTOWN MANSFIELD DOWNTOWN BURLESON
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FROM THE URBAN CORE TO SUBURBS IN THE OUTER RING, NORTH TEXAS IS SEEING EXPLOSIVE GROWTH IN LIVE-WORK-PLAY ENVIRONMENTS. found that, since the recent recession, commercial real estate values in both urban and suburban markets have rebounded much more strongly in walkable districts, versus those that are car-dependent.
Like many big American cities, Dallas began seeing its residents take flight to the suburbs in the 1960s. With the development of large corporate parks like Legacy and Las Colinas, companies began growing in outer areas, too. But just as people pulled employers, developers, and real estate investors way from the urban core for a number of years, people are now pulling them back in again. Demand has moved away from closed-off, single-use enclaves to pedestrian-friendly live-work-play neighborhoods where the focus is on connectivity—in every sense of the word. Rather than a new trend, it’s actually a return to the past, says Jeff Blackard, developer of Adriatica in McKinney and Entrada in Westlake. Blackard is on the leading edge of the movement with a development approach he calls “Neoretroism.” It hearkens back to a village you’d find in Europe or in pre-1900 America, where people of different strata are connected by a shared sense of community and where the uses of buildings evolve over time. Neoretroism, Blackard says, goes beyond “new urbanism,” where neighborhoods are diverse in use and population, to build in flexibility and evolution—an ability for space to respond to changes that occur over time. “It’s a philosophy that advocates the recreation of Old World culture in a modern-day development environment through serving the needs of the village’s inhabitants,” he says. A focus on people is at the heart of good urban design, on display at a number of vibrant mixed-use developments across Dallas-Fort Worth. Some, like Addison Circle, are the result of a city looking to attract permanent residents—and having the good sense to build what people want. Others, like Legacy Town Center in Plano, which began construction in 1999 and is now arguably the most successful mixeduse development in North Texas (see more on page 55), are the result of a developer who sought to create a sense of place. Both of these projects treat the pedestrian as paramount. Walkability doesn’t just make good philosophical sense; it has a significant impact on a project’s bottom line. A recent study by Moody’s and Real Capital Analytics
NOTABALE MIXED-USE DEVELOPMENTS
MOCKINGBIRD STATION DALLAS
The state’s first transitoriented development. Surrounds a DART station near SMU. Adaptive reuse plus new construction.
SHIFTING ATTITUDES Dallas-Fort Worth is known for its deep base of talented developers. Founding fathers like Trammell Crow Co. and Lincoln Property Co. are based here, as are walkability and urbanism pioneers like Robert Shaw and Fehmi Karahan. Karahan led development of Legacy Town Center. Shaw introduced a new style of multifamily living. The former Dallas Cowboys player had seen his football career end due to a knee injury. He began working in construction, building garden apartment complexes, just to have something to do. Then he read two books on urbanism that changed his life: The Death and Life of Great American Cities by Jane Jacobs and A Pattern Language by Christopher Alexander. “It was the genesis of this big idea, of my purpose in life,” Shaw says. “I wasn’t arrogant to think everybody needs to live like this. My thinking was just that some people want to live in a more mixed, walkable environment.” With business partner Roger Staubach,
Pioneering, walkable urban district that opened in 2001. The 160-acre project sits at the west portal of the Uptown/Cityplace DART rail stop.
75-acre mixed-use project just north of downtown Dallas, anchored by American Airlines Center. Currently being revamped to make it more walkable.
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U URBANISM he pioneered this development approach in Uptown about 25 years ago. He went on to build thousands of apartments in Uptown—playing a critical role in the creation of the fledgling submarket’s identity. Finding success in urban infill, he then segued into suburban-urban with projects like Addison Circle. “Some people want an urban, walkable experience, but don’t necessarily want to live downtown,” Shaw says. “So that was the beginning of doing this in a suburban context in a way that doesn’t look Disneyesque or contrived. It had to be something authentic and real.” Lately, the demand for mixed-use has come just as much from companies as it has from people. Locating within an amentity-rich, walkable development has become a recruiting tool when going after that all-important millennial talent. That goal was the impetus that sparked CityLine, a $1.5 billion, 186-acre mixed-use project with DART station adjacency in Richardson. Anchored by a 2 million-squarefoot corporate campus for State Farm Insurance
and developed by KDC, CityLine (so far) includes 3 million square feet of office space, 150 hotel rooms, a medical office building, nearly 1,400 multifamily units, a plaza and park, a 125,000-square-foot retail center anchored by a Whole Foods store, and 92,000 square feet of additional retail, restaurant, and entertainment space. When it opens later this year, it will start with a daytime population of more than 16,000 people. Several other huge developments are clustered in what Frisco officials have dubbed as the city’s “$5 billion mile,” a span of the Dallas North Tollway running between Warren Parkway and Lebanon Road. New projects include The Star, a 91-acre complex anchored by a training facility and headquarters for the Dallas Cowboys. It’s backed by the deep pockets of the team’s owner, Jerry Jones. Immediately adjacent is the planned 242-acre Frisco Station, a joint venture between Ross Perot Jr.’s Hillwood, VanTrust Real Estate, and The Rudman Partnership. But it’s not just new construction. Developers are breathing life into long-forgotten real estate, too. Jim Lake Jr., for example, is nearing the finishing line on the 110,000 square feet of space that he’s redeveloping in Waxahachie’s town square. “Waxahachie has been waiting for somebody like us,” Lake says. “But it’s not just in Waxahachie. It’s happening in Grand Prairie, McKinney, and other cities, where old town squares are being redeveloped after the flight that happened some decades ago. They’re already walkable, and they all have unique, individual spaces that can’t be replicated anywhere else.” Mixed-use also has returned to the urban core of Dallas, with a flurry of projects underway in the area between Pacific Avenue and Main, Commerce, and Elm
REDISCOVERING HISTORY “Main Street and downtown Dallas is experiencing a rebirth because it has historic genuiness. As we rediscover that we can’t find this history just anywhere, downtown Dallas is beginning to regenerate and flourish. It is following the path of downtown Fort Worth, Grapevine, and McKinney, to name just three, that have already gone through this regenerative process. Even though downtown McKinney and Dallas are different in scale and design, they both hold historic value and good architecture. The relationship of space to density is genuine for the types of downtowns they are. While McKinney leverages its assets to the market as a quaint getaway, downtown Dallas is evolving back into the major regional center because of national and global business, economic, and societal shifts.” —John Ruggieri, Vice President, RTKL
BISHOP ARTS DALLAS
First built in the 1920s around Dallas’ busiest trolley stop. Redeveloped in the 1990s and 2000s and now home to more than 160 shops and restaurants.
MAIN STREET DISTRICT DALLAS
The first district in downtown Dallas to see extensive urban revival. Currently experiencing a redevelopment boom.
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SOUTHSIDE ON LAMAR DALLAS
Pioneering project led by Jack Matthews. Conversion of an old Sears distribution center into lofts with space for artists and retailers.
Pedestrian-friendly, five-block urban district at the juncture of six major streets. Redevelopment of the former headquarters of Acme Brick.
A 35-block mixed-use development with brickpaved streets. Features restored turn-of-thecentury buildings and an expansive plaza.
THE POWER OF 10 “One of the things that you’ve heard of is the power of 10 for public spaces. The closer you can get to 10 things happening in that area, the more successful it is going to be. It could be sitting on a bench. It could be listening to music. It could be going to a place to go eat. You can look at the public art, which we did in Bishop Arts as murals. I think we have some dog watering stations over there. You’ve got patio space for sitting, and so on. But the closer you can get to that ‘10,’ the more successful your public space is going to be.” —Jim Lake Jr., CEO and Partner, Jim Lake Cos. JIM LAKE JR.
building a town center in an existing office park. Today, more than 60,000 people work and live in Legacy, which has grown to include 16.8 million square feet of office space, 900,000 square feet of retail space, and several hotels. Legacy would not have happened without the bold leadership of several key people. The first is EDS founder Ross Perot, who bought 2,700 acres off what is now the Dallas North Tollway in the early 1980s with the vision of creating a high-end corporate headquarters park. Before long, Frito-Lay, J.C. Penney, and others bought land and developed sprawling headquarters at Legacy, bringing thousands of employees with them. But when land sales grew sluggish in the 1990s, EDS’ global asset manager and new director of Legacy, Marilyn Kasko, stepped in for a closer look. She noticed employees taking up to two-hour lunches because the closest restaurants were at Park and Preston. There were no apartments, hotels, gas stations, banks, or places within Legacy where employees could gather for a
streets. Among them is the Statler Hilton, recently acquired by developer Mehrdad Moayedi, after securing a whopping $45 million in TIF funding from the city of Dallas, along with federal and state historic tax credits. That money will be used to fund Moayedi’s $175 million redevelopment of the Statler into 229 apartment units, a 164-room hotel, and about 30,000 square feet of retail space. Also underway is a $65 million reinvention of the Dallas Farmers Market, following its privitization in 2013. Designed by Good, Fulton & Farrell, the new market will feature more than 30 restaurants and shops, a headquarters for the North Texas Food Bank, green space, and a 240-unit apartment complex.
AS PART OF OUR PACKAGE ON MIXED-USE DEVELOPMENT, WE DECIDED TO TAKE A MORE IN-DEPTH LOOK AT FIVE OF THE MOST SUCCESSFUL MIXED-USE PROJECTS IN NORTH TEXAS: LEGACY TOWN CENTER When Legacy Town Center was being developed in 2000, some doubted that the area was ready for such a radical concept as new urbanism. “A lot of people didn’t believe our story,” says developer Fehmi Karahan, who was selected to oversee the project’s retail component, The Shops at Legacy. “What we wanted to do was give people an experience, that open-air, pedestrian-friendly environment so you’d feel like you’re not in Dallas.” Legacy Town Center was the first in the country to create mixed-use infill by
Developed in conjunction with the city of Frisco to incorporate the city hall and library, the district also includes retail, multifamily, and office space.
Granite Property’s 90-acre flagship development is anchored by office towers, a Hilton hotel, and restaurant and retail space. A new “boardwalk” is planned.
Designed by RTKL, this project is among the region’s first suburbanurban developments. A giant blue steel sculpture anchors a roundabout.
The first retail development in the State of Texas to be LEED-certified by the U.S. Green Building Council.
ALLIANCE TOWN CENTER FORT WORTH
Developed by Hillwood and Trademark Property Co. Integrates retail, office, residential, and medical uses with national anchors.
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NEW ECONOMICS OF PLACE “Placemaking is the new front line of economic development. What I call the “new economics of place,” placemaking looks to create neighborhoods rather than “product.” When we focus just on product, we are creating a commodity for investments that are more focused on merchant-building and cap rates, rather than community assets that can regenerate value over multiple life cycles. I’m not knocking merchant building. In fact, merchant building can be contextualized in a placemaking strategy. But when you focus on the neighborhood form first in a project, the place doesn’t become obsolete when the buildings are at the useful end of their life cycle. Rather, in that context, buildings become part of the redevelopment process rather than the project obsolescence process, which we see so often in our suburban patterns. The key—especially in the suburbs—is to create places that will reinvent themselves over and over and over.” —Scott Polikov, President, Gateway Planning Group
drink after work. “We had to look at it from the corporate perspective of, ‘What do these companies want or need?’” recalls Kasko. “It was a new way of thinking.” Art Lomenick, a former Post Properties exec, suggested that the “new urbanism” approach of live-work-play might be a good fit for the area. Kasko met and hired one of the concept’s pioneers, Andres Duany. With Duany’s designs, support from the city of Plano and key developers, the new urban center for Legacy was born.
WEST VILLAGE IN UPTOWN Upon first visit, one might think they’ve fallen down the rabbit hole and emerged on the movie-set version of a trendy urban neighborhood, complete with strings of twinkle lights and beautiful people. But dense, open-air West Village, which opened in 2001 with 125,000 square feet of commercial space and 42 shops
SOUTHLAKE TOWN SQUARE SOUTHLAKE
Designed by David Schwarz and developed by Cooper & Stebbins. One of the country’s most successful suburban-urban projects.
and restaurants, is more like a miracle baby. Designed by noted architect David M. Schwarz and developed by Cityplace Co., Phoenix Property, Urban Partners, and Henry S. Miller, it sits on the west side of North Central Expressway, on Cityplace Co. land that was cleared in the 1980s. The Uptown Public Improvement District, created in 1993 as one of the city’s first PIDs, made vital infrastructure upgrades, resulting in one of Dallas’ most pedestrian-friendly areas. West Village is two blocks west of DART’s Cityplace station and on the Uptown trolley loop. The mixed-use development has undergone five organic, demand-driven expansions, adding retail, residences, and businesses. It’s now double its original size. West Village has become so successful, in fact, that it has spilled over to the other side of North Central Expressway, transforming the east side of Cityplace’s real estate with new living options and a 60,786-square-foot Kroger store. Of the 130 acres of land Cityplace started with 16 years ago, just a handful of acres remain.
WEST 7 TH IN FORT WORTH Just a few years ago, West 7th Street between Foch and Norwood was marked by vacant, poorly maintained lots and streets that lacked pedestrian-friendly connectivity. The “six-point” intersection, where West 7th, University Drive, and Camp Bowie meet, was, according to the Fort Worth Planning Department’s revitalization strategy, “an environment in which walking is impractical and uncomfortable.”
McKINNEY URBAN VILLAGE
This once-bustling district began suffering after a health club anchor closed and pedestrian traffic dropped off. New owners are bringing it back to life.
A 15-acre transit-oriented development along the DART line, this project targets people living and working in the city’s Telecom Corridor.
A $30 million mixeduse and health science district that is just getting underway, near the Medical Center of McKinney.
Redevelopment of Oak Street. Adapative reuse of six existing buildings and the construction of six new structures.
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U URBANISM to “buy and save cool old buildings,” investing exclusively in the Bishop Arts District. He had a vision of an authentic neighborhood that required changes to city code and zoning ordinances—a slow, bureaucratic process. But Spence is the kind of developer who pulls his own permits. Meanwhile, Jim Lake Cos., another Oak Cliff developer, had been amassing parcels in the Bishop Arts District since 1985, when Jim Lake Sr. was still at the helm, work that has since been continued by Jim Lake Jr. Both Good Space and Jim Lake Cos. were committed to “adaptive reuse,” taking dilapidated structures and rehabilitating them. A tax increment financing district was formed in 1992, but it didn’t do much. The nearly $3 million in federal and city funds spent on infrastructure in 1999, however, did. Bishop Arts District got curbs and brick sidewalks. Hattie’s, a southern fine-dining restaurant, opened in 2002, attracting curious diners from across the Trinity River to what was once considered the wrong side of the floodplain. And the people kept coming. In 2010, the city council approved a Bishop/Davis rezoning that applied to 350 acres along West Davis Street between Zang and Montclair. Buildings could now be up to five stories high, and parking requirements for old buildings were reduced to decrease the emphasis on automobiles. Also important: the city voted to allow the sale of alcohol in Oak Cliff, paving the way for Ten Bells Tavern in 2012. Bishop Arts, with its upscale restaurants, shops, bars, and even a bookstore/coffee shop/ wine bar hybrid, teems with life, so much so that its recent past of boarded-up buildings feels increasingly impossible to imagine. It’s an
However, the area did have a few things going for it: close proximity to cultural institutions, like the Modern Art Museum of Fort Worth and the Kimbell, and major business and medical districts. West 7th, a 13-acre, neighborhood-scale mixed-use development, funded by a public and private partnership, was described as an attractive boulevard lined with shops, restaurants, apartments, and offices. Working in conjunction with the Historic Camp Bowie Inc. Public Improvement District, the city adjusted the streets to be more pedestrian-friendly through median placement, traffic signal placement and timing, and lower speed limits. Good, Fulton & Farrell designed West 7th, and Cypress Equities developed the project in multiple phases. Today, the neighborhood has completely been transformed. West 7th spans about five blocks, with 279,000 square feet of retail and restaurant space, 103,000 square feet of office space, and 550 residential units. Plans for a streetcar system are in the works.
BISHOP ARTS IN OAK CLIFF Once the terminus of the Oak Cliff streetcar line, this district had suffered since it was annexed by the city of Dallas in 1903. Its renaissance was sparked not by one big player coming in and effecting transformation, but by a number of key developers establishing stakes in the neighborhood. Among them is David Spence, who launched Good Space in 1995 with a mission
DITCH THE CAR “Mixed-use is most successful when you can comfortably and safely walk from use to use. If a mixed-use project simply wants to make you get in your car to move from one end of the development to the other, then it hasn’t been successful.” —Larry Good, Founding Principal and Chairman, Good Fulton & Farrell LARRY GOOD
A 1,000-acre masterplanned community that sits around a 36-acre lake near Coppell. Includes one of the nation’s first “netzero” elementary schools.
A new 91-acre, publicprivate complex anchored by a training facility and headquarters for the Dallas Cowboy and a 12,000-seat events center.
242-acre mixed-use complex being developed by Hillwood, VanTrust Real Estate, and the Rudman Partnership. Adjacent to The Star.
Transit-oriented project anchored by a 2 million s.f. office complex for State Farm. It will open in 2015 with an expected daytime population of 10,000.
Redevelopment of the city’s historic town square, featuring quaint shops and local restaurants and entertainment venues.
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A Different Approach to A Different Approach to Dallas Real Estate Dallas Real Estate A collaborative, global real estate services A collaborative, global real estate services company owned and operated by its company owned and operated by its Principals, Avison Young takes a different Principals, Avison Young takes a different approach that translates into a better client approach that translates into a better client experience â€“ and better results. experience â€“ and better results.
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“We’re Connecting the Business Community.” “DART provides mobility, stimulates economic development and improves quality of life.”
Gary C. Thomas President/Executive Director, Dallas Area Rapid Transit
THE X-FACTOR OF PLACE “I have a problem with the term ‘mixed-use,’ as I think it is just a description. I also have a problem with ‘placemaking.’ I think to believe one can simply decide to “make a place” is pretty arrogant. I think place is discovered. ... Mixed-use projects are wonderful and need to be championed, but just because there are a lot of different uses in one place does not mean it will be a place. I can’t define a place, but I know it when I see it, and I know I am a better person when I am in a place, and I know my relationships have been enhanced as I leave that place. I also make plans to visit again.” SCOTT ROHRMAN
—Scott Rohrman, Founder, 42 Real Estate LLC
overnight success, 25 years in the making. And now the next wave of change—further rezoning proposals and a new, $40-million mixed-use project just blocks away that developer Farrokh Nazerian and his son Michael have been planning and piecing together for almost 10 years—is on the horizon.
SOUTHLAKE TOWN SQUARE Southlake, which sits about 25 miles northwest of downtown Dallas, is famous for its powerhouse high school football team. But another star is Southlake Town Square, a placemaking development that created a desirable urban experience from scratch in the middle of the affluent suburb. Developer Cooper & Stebbins started planning the project in 1995 after securing 130 acres of farmland. They gathered input from residents and filed building permits. Brian Stebbins, who died in 2012, wrote that the vision was for a human-scale city center that “allowed people to naturally come to this place and not have to think why they were coming,” because anything a person desired would be there, easily accessible on foot. Real estate brokerage firm UCR came on board in the early stages to develop the site and determine the mix of tenants. Cooper & Stebbins convinced the city
of Southlake to move its government and municipal buildings, including a public library, to the square, effectively creating a true town center. When it opened in 1999, phase I encompassed 250,000 square feet of retail and office space, supported by a TIF that was established to fund its infrastructure. Today, Southlake Town Square contains 1.4 million square feet, serves 2.2 million people, and generates more than $550 in sales per square foot. The Square also features 43 luxury brownstones and a five-story red brick building with 38 condominiums, allowing residents to walk to dinner or to the movies. Earlier this year, Plano-based Granite Properties announced plans to build a seven-story, 160,700-square-foot office tower within the development.
LOOKING AHEAD: FAIR PARK AND SOUTH DALLAS “What do we do with Fair Park?” It’s a complicated question that has inspired at least one city task force, a university research study, countless panel discussions, and no small measure of infighting between various organizations with an interest in the district’s 277 acres. George Kessler’s Fair Park, owned by the city and constructed for the 1936 Texas Centennial in Old East Dallas, is the site of the State Fair of Texas—but not much else. When Interstate 30 went up in 1964, it cut the neighborhood off from the rest of the city. The isolation is felt in different ways—in the surrounding seas of parking lots, and in the impoverished neighborhoods just beyond. Despite challenges, Dallas urban planner Patrick Kennedy and other experts say Fair Park and South Dallas offer the greatest potential for both large and smallscale development. Public transportation hubs are already in place. The parking lots surrounding the art deco buildings could become valuable square footage in the hands of talented developers. But there are a lot of old mansions in the historic neighborhoods of south Dallas that invite a more fine-grained approach, like the revitalization that occurred in Oak Cliff ’s Bishop Arts District. Stitching those two pieces of the puzzle— new development and adaptive reuse—together will be key.
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PERSPECTIVES ON PLACEMAKING THE WOW FACTOR “From my builder/owner point of view, ‘placemaking’ and ‘mixed-use’ are two very different things. Mixed-use represents a mix of residential, retail, and office use all in one area or building. Placemaking may involve that same mix of uses, but must include additional items to create a place that can be described with the word “wow.” The “wow” factor is what creates place. And when we create place, it attracts people, and people make projects successful. ... The formula of entertainment, beauty, art, and safety will work in most areas to create thriving, successful places.” —DON DAY, Owner, DFA Ltd.
CREATIVE COLLISIONS “Standard definitions aside, to me, ‘placemaking’ is about the social environment of the physical realm. When we engage in placemaking initiatives, we aim to create spaces for people that encourage creative collisions, interaction that crosses socio-economic divides, and experiences that enhance quality of life.” —KOURTNY GARRETT, Executive Vice President, Downtown Dallas Inc.
STICKY INFRASTRUCTURE “A successful mixed-used destination is not only sustained by those who live there, but is also well-connected within the community and attracts people from surrounding neighborhoods. A critical mass of people should want to be there and feel compelled to stay for a while. The infrastructure must be ‘sticky.’ By ‘sticky,’ I mean that the streets and sidewalks are more pedestrian-friendly than vehicle-friendly. Although good circulation is important, cars should not be able to speed through the streets, and people should feel comfortable walking around.” —HEATH JOHNSON, Managing Director of Commercial Development, Hines
ENERGY AND DENSITY “The reason mixed-use places and districts or neighborhoods work so well is the energy that is created from densification. These areas are active 24/7/365, and the activity of each use adds value to the other uses. People want to be around other people and feel safer and more energized with others around, above, and below.” —TERRY MONTESI, CEO, Trademark Property Co.
THE SHARING ECONOMY “The sharing economy presages yet another iteration in the way in which real estate is supported and implemented. Between the evolution of communication and commerce, along with the simultaneous overlay of a generational hand-off from the consumer economy to the experience economy, cities and buildings inevitably echo the societal impact on a larger scale.” —MICHAEL ABLON, Principal, PegasusAblon
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U URBANISM A CHANGE IN ATTITUDE “People are beginning to appreciate benefits of density and the way it contributes mightily to activity and placemaking. It wasn’t that long ago that density had a negative connotation. But with the advent of places like West Village, Legacy Town Center, Uptown, and the new vibrancy downtown, that’s changing.” —DUNCAN FULTON, Founding Principal, President, and CEO, Good Fulton & Farrell
THE ROMANCE OF OUTDOOR ROOMS “The placemaking artistry critical to any successful mixed-use development is the careful choreography and harmony of shelter, scale, detail, materiality, connectivity, sensation, and romance found in the walkable ‘outdoor rooms’ between the buildings. It is in these rare and sometimes accidental spaces where individual human experiences inspire the countless memories that attach us and compel us to return again—like to a home—to those certain familiar and special places in our built environment.” —BARRY HAND, Studio Director and Regional Mixed-Use Practice Area Leader, Gensler
BEYOND THE BUDGET “We are given such a gift in life to be able to engage in creating places. And yet we feel the pressure of our budgets. We feel the pressure of the expected norms. Somehow we need to emancipate ourselves—to do what we know is right, needed, and creative. If we will be so bold to do this, we will create places that are seen as natural fabric of our society and of nature. In doing this, we will have fulfilled our purpose.” —LUCY BILLINGSLEY, Partner, Billingsley Co.
HOLISTIC DESIGN APPROACH “Placemaking is a holistic design approach that is focused on how users interact with a project at the human level. It really applies at many different scales of a project from the buildings, plazas, and parks, to the streetscape. It takes a talented and collaborative project team of not just consultants but owners who understand what it takes to make a place. We approach placemaking as a responsibility when designing. I always envision my family walking through the project. I want it not to just be safe and feel good, I also want it to create lasting memories.” —SEAN O’BRIEN, Senior Design Manager, O’Brien Architects
WHAT MAKES SUCCESSFUL MIXED-USE? HOW DOES PLACEMAKING FIT IN? Expanded thoughts from every expert are online. DFWREALESTATEREVIEW.COM
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A ANATOMY OF A DEAL
HOW LEGACY WEST WAS WON Timing, persistence, experience key to winning the lucrative project.
BY KAREN NIELSEN
For 16 years, developer Fehmi Karahan eyed 240 acres of land owned by J.C. Penney at the southwest corner of the Dallas North Tollway and State Highway 121. He saw the potential of the property surrounding the retailer’s corporate headquarters even before he was selected by EDS to develop The Shops at Legacy in Legacy Town Center on the east side of Legacy and the tollway. J.C. Penney had acquired 360 acres in 1987, but only used 110 acres for its headquarters campus, after relocating from New York to Plano. Despite Karahan’s interest, the company “wasn’t interested and they weren’t in a rush to do anything,” he says.
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“EVERYTHING THAT WE LEARNED IN THE LAST 15 YEARS ... WE CAN IMPLEMENT THAT. THE GOAL IS TO MAKE LEGACY WEST MORE BEAUTIFUL AND MORE EXCITING AND MUCH LARGER.”
— FEHMI KARAHAN
About three years ago, though, financial struggles caused J.C. Penney to begin looking at additional revenue sources. The retailer invited five companies to vie for the right to develop the land by submitting a request for proposal. When Karahan learned he would be competing against big boys like Trammell Crow Co., he called for reinforcements, ultimately forming “Team Legacy” with corporate office developer KDC and multifamily developer Columbus Realty Partners. The strategy worked, and Team Legacy was awarded the plum project in February of 2014. When they heard the good news, the partners enjoyed a nice lunch with champagne, then got back to work, says Steve Van Amburgh, chief executive of KDC. “We made a conscious decision to put the three of us together,” he says. “Our three firms have done over $1 billion in development at Legacy, and that was before we formed our land venture with J.C. Penney. Fehmi Karahan and Robert Shaw [of Columbus Realty] are true visionaries. They have created a mixed-used development that’s second to none, and we’re just fortunate to be teamed up with them.” KDC is certainly no slouch. The developer has completed 11 projects at Legacy, totaling more
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than 3 million square feet. Projects it has underway at Legacy West will significantly increase those figures. Last July, KDC won a 1.1 million-square-foot headquarters for Toyota Motor North America. The $350 million campus is being built on 100 acres at the southwest corner of S.H. 121 and Legacy Drive. Once completed, it’s expected to house more than 4,000 employees. KDC also is developing a 265,000-square-foot headquarters for FedEx Office. The global company is combining two North Texas offices into one campus at Legacy West, where it will employ about 1,200. The project broke ground last July and should be ready in October, says Mike Rosamond, executive vice president at KDC.
A LASTING LEGACY Transforming 240 acres of farmland into a successful $2 billion mixed-used development requires a strategic master plan that considers how things will evolve in the coming decades, Karahan says. “Today multifamily is hot, but real estate changes,” he says. “We want to create a plan that is flexible enough during the changing economy that can create maximum value.”
A ANATOMY OF A DEAL
BREAKING GROUND: The future site of Legacy West, viewed from Legacy Town center. JC Penney’s headquaters can be seen on the far left of the horizon. MICHAEL SAMPLES
TEAM LEGACY J.C. Penney acquired 360 acres of land within Legacy in 1987, but used only 110 for its headquarters campus, leaving 240 prime acres available. Teaming up to win the right to develop the land were these three Dallas companies: THE KARAHAN COS.: Led by Fehmi Karahan, developer of The Shops at Legacy in Legacy Town Center—the first project in the country to create a suburbanurban district within FEHMI KARAHAN an existing office park. Karahan has since extended his impact with a number of other projects throughout North Texas.
The velocity of office development has helped jump-start the other components of Legacy West. They include 280,000 square feet of retail and restaurant space, 260,000 square feet of multitenant office space, more than 600 luxury apartments, 100 single-family homes, and a 300-room Renaissance Hotel. Karahan also is working with the city of Plano and the North Texas Tollway Authority to connect the east and west sides of Legacy by making the Legacy bridge over the tollway more pedestrian-friendly. He predicts that in 10 to 20 years the area will simply be known as Legacy, much like the Midtown or Lower East Side districts in New York City. The success of Legacy Town Center, and the backing of Invesco Real Estate, which now owns 1,700 apartments in the town center and is a partner in Legacy West, will help propel the new development, Karahan says. “Everything that we learned in the last 15 years ... we can implement that,” he says. “The goal is to make Legacy West more beautiful and more exciting and much larger. Two years from now, it’s going to be unbelievable.”
COLUMBUS REALTY GROUP: After suffering a knee injury and retiring from the National Football League, Robert Shaw turned to real estate and formed Columbus Realty Group. He was among the first to develop walkable urban neighborhoods, pushing forth a fundamental optimism about cities, their urban cores, and long-term viability. KDC: Known as a developer of choice for corporate campuses, the company’s client list reads like a “who’s who” in business. Along with its work at Legacy West, KDC is working on a 2 STEVE VAN AMBURGH million-square-foot campus for State Farm and a 500,000-squarefoot campus for Raytheon, both at CityLine in Richardson. The company is led by Steve Van Amburgh.
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A ANATOMY OF A DEAL
CEO JIM LENTZ AT TOYOTA’S LEGACY WEST GROUND-BREAKING PROJECT TOYOTA
BLASTING OUT OF THE GATE Huge office projects have sparked development in all sectors at Legacy West, where the full effects are yet to be seen. BY HILARY LAU
Last year, when J.C. Penney partnered with three Dallas firms—The Karahan Cos., Columbus Realty Partners, and KDC—to develop 240 acres of prime real estate surrounding the retailer’s Plano headquarters, few expected the project to get so big, so fast. But in short order, one of the largest and most-admired companies in the world decided to relocate its North American headquarters from California to Legacy West. And things really started rocking from there. Along with the corporate build-to-suits developed by KDC, Legacy West also will include multitenant space. Earlier this year, Dallas-based Gaedeke Group snapped up an 11-acre tract at the southeast corner of State Highway 121 and Legacy Drive for a 15-story, 308,000-square-foot office tower. Gaedeke Group expects to have the project completed before the end of 2016. Anchoring Legacy West are headquarters for two of the most recognizable brands in the world—Toyota Motor North America and FedEx Office. KDC is developing both projects. FedEx Office, a subsidiary of Memphis-based FedEx, decided to consolidate its Dallas headquarters and another North Texas office into one larger facility in Plano. Designed by HKS Inc. with interiors by HOK, the four-story, 265,000-squarefoot building will eventually house about 1,200 FedEx Office employees. Legacy West and KDC beat out a host of other developers vying for the project, says Toby Grove, the company’s president. “We had done four previous build-to-suit projects for various tenants over the years, which gave us a little credibility,” he says. KDC broke ground on the FedEx campus last July, and Grove expects it will take about 22 months to complete. The campus is located on the east side of Headquarters Drive, immediately south of the Gaedeke site. But that wasn’t the project’s original location. The company had signed on for a
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larger parcel on the west side of Headquarters Drive within Legacy West. It was persuaded to move to the smaller site to make room for one of the largest and most significant corporate relocations North Texas has ever secured: Toyota. The Japanese automaker began exploring options for a new North American headquarters last year, selecting Meredith O’Connor and Michael Sessa with JLL’s Chicago office to help lead the search. They pulled together a team from JLL’s Dallas office—Paul Whitman, Brad Selner, Brooke Armstrong, and Torrey Littlejohn—to evaluate North Texas opportunities. In the end, Legacy West proved to be the perfect fit. “North Texas, and specifically Plano, have a lot of positive attributes that make it attractive to relocating corporations,” Selner says. “They include a pro-business climate and tax structure; a large, highly educated workforce; a relatively low cost of living with top-ranked K-12 schools; and a variety of housing options.” As it often is in large searches like these, the Dallas Regional Chamber was the primary economic development point of contact. Mike
A ANATOMY OF A DEAL Rosa, the chamber’s senior vice president of economic development, said winning the prized relocation has been a career highlight for him and his team. “It’s like winning the World Series, an Academy Award, or the green jacket,” he says. — MIKE ROSA, DALLAS REGIONAL CHAMBER, Toyota’s selection of Dallas-Fort Worth will ON TOYOTA’S SELECTION OF DFW FOR ITS NORTH AMERICA HEADQUARTERS have a lasting impact on the market, Selner says. “Our local and state governments are doing great things to bring businesses to our area,” he says. “We’re all fortunate to be in Texas with a business-friendly environment.” Upon completion, the $350 million Toyota campus will include more than 1 million square feet of office space in six or seven buildings, and house more than 4,000 employees. KDC broke ground on the project, which was designed by Dallas-based Corgan, in January. TOYOTA MOTOR NORTH AMERICA They’re using environmentally sensitive construction methods while building the campus, DEVELOPER: KDC and are also incorporating sustainability principles into the buildings themselves. KDC exARCHITECT: Corgan pects the campus will take between 30 to 32 months to build. TENANT REPRESENTATIVE: JLL Along with its 4,000 workers, Toyota will likely attract various automotive suppliers and ECONOMIC DEVELOPMENT: Dallas Regional vendors to the region. Economic developers anticipate a large-scale impact on both the city of Chamber, Plano Economic Development Corp. Plano and the North Texas region as a whole. It has already kick-started development of Legacy West’s $300 million urban village, which will include retail, restaurants, and multifamily space. FEDEX OFFICE Some industry observers are projecting a “four-fold ripple effect” spurred by secondary DEVELOPER: KDC jobs from automotive suppliers wanting to be located around Toyota’s new campus, relocatARCHITECT: HKS Inc. ing employees’ need to buy new houses, and consumer spending driven by new supply and INTERIOR DESIGN: HOK demand in the marketplace. GENERAL CONTRACTOR: Rogers O’Brien It also could help persuade more companies to relocate to North Texas, Selner says. STRUCTURAL ENGINEER: Kimley Horn “Without a doubt, there are other companies looking in the area, and largely because we have a company like Toyota—of that profile and magnitude,” he says. “It really validates this marLEGACY WEST TOWER ONE ketplace as a great place to do business.” One company that got that message is Boston-based Liberty Mutual. In April, the company DEVELOPER: Gaedeke Group ARCHITECT: Morrison Dilworth + Walls announced that it was joining the Legacy West party, too. The insurance giant is planning a GENERAL CONTRACTOR: Austin Commercial large operations center that will employ as many as 5,000. It will be located at Headquarters Drive and the Dallas North Tollway, immediately north of Legacy West’s urban village.
“IT’S LIKE WINNING THE WORLD SERIES, AN ACADEMY AWARD, OR THE GREEN JACKET.”
FEDEX OFFICE HEADQUARTERS
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A ANATOMY OF A DEAL
Legacy West’s apartments will help meet demand in one of the region’s hottest markets. BY HILARY LAU
THE KARAHAN COS.
After Team Legacy (The Karahan Cos., KDC, and Columbus Realty Partners) was selected by J.C. Penney executives to develop the 240 acres of prime real estate surrounding its corporate headquarters in Plano, the group got together to craft a master plan. The partners knew they wanted to create a timeless, upscale live-work-play-style environment, says Fehmi Karahan, president and CEO of The Karahan Cos. What they could not have anticipated, though, was the velocity of demand. Not long after the development opportunity was announced, Toyota Motor North America and FedEx Office signed on for major headquarters campuses within Legacy West. The timeline for multifamily space was accelerated to help accommodate employees. “We knew that corporations now look at relocating their campuses in environments that have that mixed usage,” Karahan says. “That is what everybody wants. It has been done extremely well on the east side of the highway at Legacy Town Center. This will be a very natural extension of what we did on the east.” Columbus Realty is handling develROBERT SHAW opment of Legacy West’s multifamily component. The first phase calls for 621 units totaling 495,000 square feet in two buildings. The apartments will be LEED Silver rated and offer a host of amenities, including three pools, a fitness center, a wellness studio, a dog park and washing station, a rooftop lounge with outdoor fireplaces, a bike repair shop, garage parking, and an electric carcharging station. The apartments will COLUMBUS REALTY PARTNERS
SINGLE-FAMILY ADDED TO THE MIX
Along with multifamily space, Legacy West will include single-family residences, too. About 12 acres of land has been rezoned for “urban-style detached homes,” says Fehmi Karahan of The Karahan Cos. In March, Plano city planners gave the goahead for a high-density enclave near the development’s “urban village.” Nearly 120 homes will be built on the site, which sits at Headquarters and Communications drives. The two- and three-story residences will range in size between 2,000 and 3,500 square feet. Team Legacy chose Scott Felder Homes as the builder. “Scott Felder Homes has a great reputation in Austin and San Antonio, and was recently purchased by a Dallas group led by Bobby Ray, who is one of the most respected home-building executives in the country,” Karahan says.
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range from 325-square-foot “micro” studios to 1,250-square-foot residences, with rents averaging about $1,275. Interior perks will include quartz countertops, stainless steel appliances, and wood plank flooring. They’ll be ready for occupancy starting in the summer of 2016. Columbus CEO Robert Shaw, who helped pioneer the new urbanism movement, expects everyone from millennials to baby boomers to move in. “It’s a neat blend, with the urban walkable housing over retail, but also a significant amount of the units will be sitting on the ground in a more typical garage-wrap experience,” he says. “It gives us more room to deliver amenities and green space that many times is missing in urban, vertical mixed-use projects.” The project is one of a number of multifamily developments underway in the region. Stephanie McCleskey, vice president of research at Axiometrics Inc., expects the Plano-AllenMcKinney submarket to deliver 1,500 multifamily units in 2015—accounting for more than 9 percent of the total Dallas-Fort Worth metropolitan statistical area. This compares with the 1,000 or so multifamily units that were delivered in the submarket in 2014. Still, demand is expected to be brisk, especially with the corporate headquarters projects underway. ”I think the demand is going to be more than what is being built currently,” McCleskey says.
A ANATOMY OF A DEAL
Legacy West will bring more stores and restaurants to an area known as a suburban shopping mecca.
THE PLANNED 300-ROOM RENAISSANCE HOTEL
Situated near the southwest corner of State Highway 121 and the Dallas North Tollway, Legacy West also offers easy access to these nearby retail developments. LEGACY TOWN CENTER
The idea for this 150-acre mixed-use development was hatched in the late 1990s, with RTKL handling the masterplan, Lincoln Property Co. handling office development, and The Karahan Cos. overseeing the retail component, The Shops at Legacy. Construction began in 1999, and the first phase delivered in 2000 and 2001. Just east of Legacy West, across the Dallas North Tollway, Legacy Town Center boasts 600,000 square feet of retail and restaurants. It’s estimated that 4 million people visit each year.
STONEBRIAR CENTRE ARTIST’S RENDERING
BY HILARY LAU
Once Legacy West is completed, it’s projected to have a daytime population of more than 15,000, along with 5,000 residents—all of whom will have plenty of places to shop, dine, and drink. The project’s 280,000-square-foot retail component is being developed by The Karahan Cos. Fehmi Karahan, president and CEO, says the retail offerings will include “bigname brands” and round out the development’s office and residential segments. “The retail and multifamily come together on the principle of work, play, live,” he says. “That environment is what everybody wants to have.” Karahan knows what he’s talking about. After all, he led development of the ground-breaking Legacy Town Center, the first and one of the most successful suburban-urban developments in the country. Legacy West also is getting an $82 million Renaissance hotel. The 300-room property will include 26,000 square feet of conference space. Funded by the Sam Moon family, it will be adjacent to retail and residential buildings and sit along the Dallas North Tollway. Like Legacy Town Center, Legacy West—a walkable destination near the intersection of two of the region’s two busiest roadways—will rival Dallas’ Uptown and other urban districts. “Just imagine what it will be like in 2017 when all of these buildings have mushroomed up,” Karahan says. “The entire project truly will be unlike anything North Texas has ever seen.”
To the east along State Highway 121 at Preston Road in Frisco, Stonebriar Centre set retail records when it opened in August 2000. Boasting more than 1.6 million square feet, with more than 150 tenants, Stonebriar has six major department store anchors, a movie theater, and a variety of restaurants and other retailers. The mall—and its retail tax proceeds—helped jump-start economic development and growth in Frisco, a city that saw its population grow from about 35,000 in 2000 to nearly 146,000 in 2015.
THE SHOPS AT WILLOW BEND
This upscale, 125-store shopping destination at the Dallas North Tollway and West Park Boulevard in Plano opened in 2001, catering to the area’s affluent shoppers. At 1.5 million square feet, The Shops at Willow Bend is anchored by three department stores and has a reputation for being highly selective in its tenants. Last year, Michigan-based Taubman Centers Inc. sold The Shops at Willow Bend, along with seven other shopping centers, in a $1.4 billion sale, transferring ownership to Chicago-based Starwood Capital Group.
NEBRASKA FURNITURE MART
Having opened only three locations before entering the Dallas-Fort Worth market, Berkshire Hathaway-owned Nebraska Furniture Mart made big news in 2011 when it acquired 433 acres at State Highway 121 and Plano Parkway in The Colony. The 560,000-squarefoot store, slated to open this spring, will employ around 2,000 workers and is expected to attract as many as 10 million visitors a year.
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A ANATOMY OF A DEAL
LAY OF THE LAND The $2 billion, 240-acre Legacy West is beginning to take shape.
2 GAEDEKE GROUP
IVE DR IP SH DER LEA VE
AD QU AR TE RS DR I
FED EX OFFICE
C GA LE
COMMUNICATION S PA RKW AY
YD RI VE
POINTS OF INTEREST
LEGACY TOWN CENTER
1 Tract 2B, ±49 acres 2 Tract 2A, ±35 acres 3 More than 100 luxury homes 4 20-story condo high-rise 5 “Food hall” with beer garden and live music 6 Retail/restaurant 7 Retail/restaurant with 4-story multifamily above 8 Retail/restaurant with 2-story office above 9 303-room Renaissance Hotel
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Retail/restaurant with office above Retail/restaurant with multifamily above Parking garage
That’s an impressive number. It’s the number of square feet KDC has developed or is currently developing in the Legacy area. Our latest projects in Legacy West include Toyota’s North American Headquarters and a corporate campus for FedEx Office. These projects are a testament to our experience and expertise, and the high level of trust that world class clients have placed in the KDC team.
We build relationships that precede construction and last beyond completion. We’re a national, leading build-to-suit company with offices in five thriving cities. We’ll lead you through the building experience into an environment that fits your company’s every need. We do it with our people, for your people.
KDC Real Estate Development & Investments kdc.com| 214.696.1700
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KLYDE WARREN PARK
THE SPIRIT OF
COOPERATION WHEN IT COMES TO PUBLIC-PRIVATE PARTNERSHIPS, FEW REGIONS DO IT BETTER—OR BIGGER—THAN DALLAS-FORT WORTH. BY JEFF BOUNDS
PATRICK MCDONNELL / DOWNTOWN DALLAS INC.
When Woodall Rodgers Freeway was built in a recessed fashion in Dallas in the 1960s, it created a great divide between the urban core of Dallas and what’s now known as Uptown. The rift widened with the development of the Dallas Arts District on the eastern end of downtown. For decades, civic and real estate leaders talked about the need to bridge the gap. But there wasn’t a feasible way for the city of Dallas or the private sector to fund such a large undertaking on their own. In the end, the complicated and bold project required a variety of entities to come together. The $110 million development of Klyde Warren Park—a 5-acre green space built atop the freeway that opened in 2012—was funded through a public-private partnership, with money coming from the city, state highway funds, federal stimulus capital, and individual donors. Each party was essential to making it happen. “Klyde Warren Park has made downtown Dallas an asset and provided a lot of green space,” says Linda McMahon, president and CEO of The Real Estate Council, which was an early and significant investor. Public-private partnerships have played a significant role in the development and growth of Dallas, as evidenced by projects such as Klyde Warren Park, the Omni Dallas Convention Center Hotel, Parkland Hospital, Forest City
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T TOOLBOX IMPROVING THE CITY THROUGH P3s
> BUSINESS RETENTION: To help compel The Richards Group to stay in Dallas, the advertising firm was given a 10-year tax abatement valued at $1.8 million. The company built a new 15-story headquarters along North Central Expressway, and kept 650 jobs in Dallas, with an estimated 10-year net fiscal impact of $4.3 million. > BUSINESS RECRUITMENT: DealerTrack was given a $210,000 economic development grant in 2012 when it opened a software development and transactionprocessing center at Galleria North. The project created 250 jobs and a $2.5 million investment. > INDUSTRIAL PARK: Dallas supported the creation of Mountain Creek Business Park in 1998 with $7 million in bond funds for infrastructure improvements. The bustling development is now home to major operations of American Leather, Costco, Nestlé, and other tenants. The estimated 10-year net fiscal impact: $6.1 million. > RETAIL CENTER: A $2 million economic development grant from a 2006 bond program helped support Glen Oaks Crossings in Southern Dallas County. The project includes a 182,000-square-foot Walmart Supercenter and 45,000 square feet of additional retail space. The projected 10-year fiscal impact: $3.1 million. > URBAN REDEVELOPMENT: In April 2014, the city placed one of its biggest bets yet, approving a $46.5 million infusion of public funds into the $175 million redevelopment of the Statler Hilton hotel in downtown Dallas, along with an adjacent former library. About $43.5 million in TIF funds will be a grant to reimburse the developer, Mehrdad Moayedi of Centurion American, with another $3 million going to street and utility improvements. Moayedi is transforming the Statler, which closed in 2001, into 229 apartment units, a 164-room hotel, and about 30,000 square feet of retail space. —Jeff Bounds
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OMNI HOTELS AND RESORTS
The structures of public-private partnerships can vary as widely as the projects they support. Essentially, they’re agreements between public entities, such as a city, and one or more private party, such as a developer, to build or improve anything from a toll road to a new business park. Here are a few examples of publicprivate partnerships in which the city of Dallas has engaged:
OMNI DALLAS CONVENTION CENTER HOTEL
West Village, and the Sammons Center for the Arts. “Without public-private partnerships between the city of Dallas and a number of investors, developers and stakeholders, we wouldn’t be where we are today in the downtown Dallas area with the revitalization that has been so successful,” says John Crawford, president and CEO of Downtown Dallas Inc. “Our success is through public-private partnerships.” Broadly speaking, a public-private partnership is a legal contract between a public sector entity and a private company, with the partners sharing both the risks and rewards of a given project. These partnerships can take on many forms, with a range of deal structures and types of assets. Crawford says more than 50 public-private partnerships of various sizes and shapes have been executed in North Texas over the last five or 10 years. “They probably amounted to $2 billion to $3 billion of new development,” he says.
LEADING THE WAY The economic development community of North Texas has embraced public-private partnerships—known in the industry as P3s—as a way to accelerate the pace at which new developments come to market, while at the same time helping everybody involved achieve their goals, according to Scott Polikov, principal and founder of Gateway Planning Group Inc., which has offices in both Dallas and Fort Worth. “Dallas-Fort Worth is really leading the Sunbelt with these kinds of innovative approaches,” he says. The concept of public-private partnerships is not new, but the structure of such agreements has evolved over time. In the 1980s, according to McMahon, significantly more public money was available, through both the state of Texas and the federal Department of Housing. “That federal and state funding is pretty much gone,” she says. Today, leading public entities like the city of Dallas have come up with creative ways to raise capital for infrastructure projects, McMahon says. One example is tax increment financing districts, or TIFs, which help finance public improvements in designated areas, with the city re-investing added tax revenue from a new development back into the geographic area where the project is based. Another increasingly popular avenue for making public-private partnerships happen is through what’s known as the U.S. EB-5 Immigrant Investor Program. This program allows qualified foreign investors to get permanent residency in the United States in exchange for investing a minimum of $500,000 into an American business that creates new jobs. One company that’s helping to make those types of deals happen is Civitas Capital Group, a Dallas-based family of companies that provides a range of wealth
KTR IS A DYNAMIC INDUSTRIAL INVESTMENT, DEVELOPMENT AND OPERATING PLATFORM WITH OVER 5 MILLION SQUARE FEET OF ASSETS IN THE DALLAS MARKET. KTR is focused exclusively on the industrial property sector in North America. KTR is a recognized industry leader and dependable partner providing solutions in every major population center and logistic hub in the United States. Since 1997, the KTR team has completed nearly $7 billion of acquisitions and development.
KTR’s 89 employees in 8 offices across the country are led by a management team that averages 25 years of industrial real estate experience. Our unique depth and breadth combines the investment acumen and financial sophistication of an institutional asset manager with the real estate knowledge and entrepreneurial spirit of a local operator.
KTR currently owns and operates a portfolio of approximately 65 million square feet in 25 markets, highly concentrated in California, New Jersey, Chicago, South Florida and Texas.
IF YOU WOULD LIKE TO HEAR MORE A B O U T H OW K T R C A N H E L P YO U, EMAIL US AT: INFO@KTRCAPITAL.COM.
F E AT U R E D P R O P E R T I E S
W W W. K T R C A P I TA L . C O M N E W YO R K C I T Y | C H I C AG O | DA L L AS LAS VEGAS
P H I L A D E L P H I A | S E AT T L E
Interchange Distribution Center, DeSoto, Texas Up to 1.5 Million SF Build-to-Suit
Meacham Crossing, Fort Worth, Texas 502,323 SF – Newly Delivered
Xceligent Knows Dallas Real Estate Xceligent has partnered with NTCAR to offer comprehensive real estate data on the North Texas marketplace to ensure you have the right numbers when they matter. Our team has partnered with the research and brokerage communities to compile fresh data on the city’s major and lesser known assets and tenants giving you more data, more insight and more power to execute on your clients’ needs. Search for property listings in North Texas and throughout the U.S. at CommercialSearch.com Property Listing Data Comps xceligent.com
Tenant Data Mapping Vacancy & Absorption
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SPECIAL ADVERTISING SECTION
ECONOMIC DEVELOPMENT DIRECTORY
Looking for a new place for your company to call home? Consider this the start to your search.
Benbrook is in southwest Tarrant County. Benbrook retains its small-town appeal, while located only minutes from regional attractions such as Fort Worth’s cultural and historic districts, and Granbury’s shopping opportunities. Encompassing the northern shoreline of Benbrook Lake, Benbrook affords outstanding leisure and recreational amenities, acres of lush parkland, and family-friendly festivals and events. Highly rated for its city services, Benbrook offers superb quality of life for residents, visitors, and businesses. DAVE GATTIS, Deputy City Manager BENBROOK ECONOMIC DEVELOPMENT CORPORATION / CITY OF BENBROOK 911 Winscott Rd., Benbrook, TX 76126 817.249.3000 firstname.lastname@example.org benbrook-tx.gov
The McKinney Economic Development Corporation (MEDC) was created in 1993 to support the development, expansion, and relocation of new and existing companies. The MEDC is an organization with a mission to work to create an environment in which community-oriented businesses can thrive. JIM WEHMEIER, President and CEO MCKINNEY ECONOMIC DEVELOPMENT CORPORATION / CITY OF MCKINNEY 5900 S. Lake Forest Dr., Ste. 110 McKinney, TX 75070 email@example.com 972.547.7651 mckinneyedc.com
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Opportunities grow naturally in Cedar Hill, with its vibrant businesses, natural beauty, and a family-friendly quality of life. With a location just 20 minutes from downtown Dallas, 30 minutes from DFW Airport, and 40 minutes from downtown Fort Worth, Cedar Hill offers outstanding amenities for business growth and relocation. ALLISON J.H. THOMPSON, Director CEDAR HILL ECONOMIC DEVELOPMENT 285 Uptown Blvd., Bldg. 100, Cedar Hill, TX 75104 972.291.5132 ext. 3 firstname.lastname@example.org cedarhilledc.com
Rockwall Economic Development Corporation assists new and existing companies, both large and small, in the development, modernization, and expansion of business in a booming global economy. We are dedicated to your company’s growth through incentive programs, financial assistance, comprehensive sites, and resource collaboration. While collaborating with city leaders, we have secured the necessary infrastructure, services, and high-tech amenities to maintain thriving, profitable businesses. Rockwall has big-city conveniences yet maintains a small-town atmosphere. Rockwall offers quality of place and peace of mind. SHERI FRANZA, President and CEO ROCKWALL ECONOMIC DEVELOPMENT CORPORATION 2610 Observation Trl., Rockwall, TX 75032 972.772.0025 email@example.com rockwalledc.com
The City of Dallas Office of Economic Development is a full-service shop that offers business development and area redevelopment programs, small business assistance, and innovative programs such as the City of Dallas Regional Center and New Market Tax Credits. We can successfully usher a project from beginning to end. The Office of Economic Development offers a range of programs and services to assist developers, investors, and businesses looking to expand or relocate, and small businesses looking to grow. With innovative programs, a supportive business climate and a city full of opportunities, we are ready to make your project a success. HAMMOND PEROT, Assistant Director, Business Services CITY OF DALLAS ECONOMIC DEVELOPMENT 1500 Marilla St., Dallas, TX 75201 214.670.1685 firstname.lastname@example.org dallas-ecodev.org
The mission of the Sachse Economic Development Corporation is to act on behalf of the City of Sachse in promoting and developing authorized projects, while supporting economic development activities to retain, expand, and attract businesses for the purpose of diversifying the tax base and improving the quality of life of the citizens of Sachse. LESLYN BLAKE, CEO 3815 Sachse Rd., Bldg. B Sachse, TX 75048 469.429.4764 email@example.com sachseedc.com
WITHOUT PUBLIC-PRIVATE PARTNERSHIPS BETWEEN THE CITY OF DALLAS AND A NUMBER OF INVESTORS, DEVELOPERS AND STAKEHOLDERS, WE WOULDN’T BE WHERE WE ARE TODAY IN THE DOWNTOWN AREA WITH THE REVITALIZATION THAT HAS BEEN SO SUCCESSFUL.
— JOHN CRAWFORD, Downtown Dallas Inc.
management and investment services. Civitas’ duties include managing the City of Dallas Regional Center, a public-private partnership that the city of Dallas owns. Through the Regional Center, Civitas helps find EB-5-related opportunities that help investors both obtain permanent residency in the U.S., preserve their invested capital, and earn a fair return. Deals the center has been involved with include a $64 million senior loan to an affiliate of Forest City in 2012 for a 20-story high-rise tower with 387 luxury apartments, along with a $15 million senior secured term loan to Encore Enterprises to finance a call center and related real estate investments. Daniel Healy, CEO of Civitas Capital, credits the city of Dallas and its economic development team for the success of the Regional Center in the EB-5 arena. “They were well ahead of the curve in using EB-5 as a development tool,” Healy says.
DESIGN DISTRICT REINVENTION Public-private partnerships have also been key in improving the Dallas Design District. A roughly 186-acre area in the Stemmons industrial corridor west of Interstate 35E just north of downtown, the district was zoned in the 1940s for light industrial, warehouses, and light manufacturing. By 2005, many of the streets and utility lines needed improvements, and a number of industrial and warehouse structures had suffered from deterioration and neglect. A Design District Tax Increment Financing District was created to support improvements. Today, the area is a bustling, pedestrian-friendly, mixed-use neighborhood. Leading the transformation was Michael Ablon, principal of PegasusAblon. He and partner Lionstone Investments purchased 40 acres in the district from Crow Holdings in 2007. In seven years, Ablon and his team increased the value of the neighborhood by nearly $500 million. Redevelopment spurred the growth of more than 200 businesses, in an area that had been in decline. More than 1,300 new multifamily units were added and 500,000 square feet of commercial space was revitalized with new restaurant, retail, art, and design tenants. It all generated hundreds of new jobs and increased the value of the Design District TIF area by 88.4 percent over the base year. What’s more, Ablon’s success sparked real estate investment in all directions surrounding the district and created a model for other developers. “Public-private partnerships play a very positive role in the densification and maturing of a city,” Ablon says. “Dallas is currently in the maturing phase, and as the city requires more infrastructure or more building, public-private partnerships are really relevant.”
SHARING THE RISKS, REWARDS The city of Dallas actively partners with qualified companies that are looking to expand or relocate within its borders. The goal is to provide a competitive incentive offer that matches each project’s needs. With this goal in mind, the city has created several publicpartnership opportunities: > CITY OF DALLAS REGIONAL CENTER: The CDRC assists individuals and their families through the EB-5 immigration process via investment into businesses and development projects located within city limits. > ECONOMIC DEVELOPMENT GRANTS: Companies considering a relocation, expansion, or new commercial development may be eligible for a grant in lieu of tax abatement or to defray project costs such as land purchase, building costs, public infrastructure costs, development fees, right of way abandonment fees, loan guarantees, training costs, relocation costs, etc. > FOREIGN TRADE ZONE: Dallas’ two Foreign Trade Zones allow duty-free importing of foreign-made components that are assembled, manufactured, processed, or packaged. > FREEPORT TAX EXEMPTIONS: Ad valorem tax exemptions for goods that are detained in Texas for up to 175 days. > HISTORIC TAX INCENTIVES. An abatement of city real property taxes for a period up to 10 years if a building has been designated as a Dallas landmark and a restoration is planned. > JOB TRAINING: Workforce development in Dallas is coordinated and implemented by the Dallas County Community College District and Workforce Solutions Greater Dallas. Opportunities range from basic skills to employer access to qualified employees, as well as workplace education, child care, and educational initiatives. > MUNICIPAL MANAGED DISTRICTS: MMDs are special districts that are self-governed but approved by the host municipality. Through their fundraising powers they can provide infrastructure and other services within the district. > NEW MARKET TAX CREDITS: This federal program provides tax credits for new development in traditionally underserved areas. > PUBLIC IMPROVEMENT DISTRICTS. These special districts privately fund public improvements or special supplemental services over and above those provided by the city. > TAX ABATEMENTS: Through this program, the city provides tax abatement on the value added to real property or new business personal property. > TAX INCREMENT FINANCING: These special districts are funded with increased tax revenues resulting from new private development. SOURCE: City of Dallas, Economic Development 2015
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C COMMUNITY The Dallas Regional Chamber recognizes the following companies and organizations for their membership investment at one of our top levels. Bold-faced companies are represented on the DRC Board of Directors. For more information about the benefits of membership at these levels, call 214.746.6600 .
STRATEGY BKD Chase Texas Instruments
CATALYST Active Network AT&T Baylor Scott & White Health Capital One Bank Chickasaw Nation Comerica Bank Dallas/Fort Worth Int’l Airport Hunt Consolidated, Inc. JC Penney Company, Inc. MV Transportation ONCOR Tom Thumb Food & Pharmacy Wells Fargo
ADVOCATE 7-Eleven, Inc. Akin Gump Strauss Hauer & Feld Amegy Bank of Texas Atmos Energy Corporation American Airlines Axxess Baker Botts L.L.P. BB&T BBVA Compass CBRE Group, Inc. Children’s Health System of Texas Citi Copart Corrigan Investments, Inc. Dallas Morning News Dal-Tile Corporation Deloitte LLP Dr Pepper Snapple Group Energy Future Holdings Exxon Mobil Corporation EY FedEx Office Fidelity Investments Fluor Corporation Forest City Texas, Inc. Frito-Lay North America GE Capital
Glazer’s Golden Living Haynes and Boone, LLP Highland Capital Management LP HKS IBM Corporation Jones Day KPMG LLP Kroger Food Stores Littler Mendelson, P.C. Locke Lord LLP Lockheed Martin Luminant Medical City Dallas Hospital/ Medical City Children’s Hospital Methodist Health System Microsoft Corporation NEC Corporation of America Omni Dallas Hotel PwC Reliant Energy Rent-A-Center Sheraton – Dallas TDIndustries Tenet Healthcare Corp. Texas Central High-Speed Railway, LLC Texas Health Resources Texas Scottish Rite Hospital for Children Thomson Reuters, Tax & Accounting TM Advertising Torchmark Corporation TXU Energy UT Southwestern Medical Center ViewPoint Bank Winstead PC
BOARD OF ADVISORS Abbott Labs Accenture AECOM Aetna AIG Airbus Helicopters, Inc. Alcatel-Lucent Alix Partners Andrews Distributing Company
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Andrews Kurth LLP Army & Air Force Exchange Service Arthur J Gallagher & Co. Austin Industries AustinCSI Avanade Baker & McKenzie, LLP Bank of America Bank of Texas, N.A. BDO USA, LLP The Beck Group Blue Cross and Blue Shield of Texas Big 12 Conference Bracewell & Giuliani LLP Breitling Energy Brierley & Partners Brinker International, Inc. Brinkmann Corporation Bury C.C. Young Cantex Continuing Care Network Cassidy Turley CHRISTUS Health CIGNA Healthcare City Credit Union Civitas Capital Group ClubCorp Inc. Coca-Cola Refreshments Colliers International Commerce Bank Consolidated Communications Cook Children’s Healthcare Corgan Associates, Inc. CP&Y, Inc. Cushman & Wakefield of Texas, Inc. Dallas County Community College District Dallas Cowboys Football Club DHD Films Dallas Marriott City Center Dallas Stars Hockey Club Dean Foods Company Dell Services Dialog Direct E Smith Realty Partners Ebby Halliday, Realtors
Edelman Public Relations Worldwide EF Johnson Technologies Management EN Consulting, Inc. Eulen America Etihad Airways The Fairmont Dallas Federal Reserve Bank of Dallas Fisher & Phillips, LLP Flowserve Corporation Fossil Freeman Frost Bank Furniture Marketing Group Gardere Wynne Sewell LLP Generational Equity Gensler Global Power Equipment Goldman Sachs Grant Thornton LLP Greatbatch, Inc. Greenberg Traurig, LLP Gulfstream Aerospace Corp. Gupta & Associates Hall Financial Group Hill & Wilkinson Hilton Anatole Hilton Worldwide HNTB Corporation Holland & Knight LLP HollyFrontier Corporation Holman Boiler Works, Inc. HOLT CAT Humana Inc. IBC Bank InStaff Interceramic, Inc. International Leadership of Texas Jackson Walker L.L.P. Jacobs JE Dunn Construction JLL Johnson Controls Inc. LegacyTexas Bank LeTourneau University Lincoln Property Company MHBT, Inc. SPRING 2015
Midway Press, LTD Minerva Real Estate Mission Foods Montgomery Coscia Greilich LLP Most Valuable Personnel Neiman Marcus Nestle Waters North America Norton Rose Fulbright The Novo Group NTT Data, Inc. NYLO Hotels, LLC Oliver Wyman ORIX USA Corporation Parker University Parkland Foundation PDS Technical Services People Performance Resources Pioneer Natural Resources, LLC PlainsCapital Bank Pollock Paper Distributors Publicis Dallas Regions Bank Rexel Holdings USA RIB U.S. Cost Rosewood Crescent Hotel Rosewood Property Co. Schneider Electric Sethi Petroleum LLC. SimplexGrinnell Site Selection Group, LLC Slalom Consulting Southern Methodist University Southwest Airlines Southwest Office Systems, Inc. Squire Patton Boggs (US) LLP Staffelbach, Inc. State Farm Insurance Companies Strasburger & Price, LLP Strategic Staffing Solutions STRAVIS Consulting TDJ Enterprises Texas Oncology Texas Woman’s University Thompson & Knight LLP Time Warner Cable TopGolf Town of Addison Trane Commercial Systems TrustPoint Management Turner Construction Company UMB Bank N.A. University of Texas at Arlington University of Texas at Dallas UnitedHealthcare Verizon Wireless Village Green Holding, LLC Vinson & Elkins L.L.P. SPRING 2015
Vorex, Inc. Walgreen’s Company Weber Shandwick Southwest WFAA-TV Whitley Penn, LLP WFF
LEAD AAA Texas, Inc. Ackerman McQueen Acme Brick Company Adolfson & Peterson Construction Adolphus Hotel Advocare International, L.P. Allegro Development Alliance Data AlliedBarton Security Services Allsteel Wilson Alston & Bird, LLP Alvarez & Marsal APAC - Texas, Inc. Ash Grove Cement Company ATOS IT Solutions and Services Automatic Data Processing Aviall, A Boeing Company Bain & Company, Inc. Balfour Beatty Construction BancTec, Inc. Belk Berger Engineering Co. Beshear Group Boka Powell, LLC Boston Consulting Group Brunswick Group, LLP BullsEye Telecom Callison LLC Cancer Treatment Centers of America Carrington, Coleman, Sloman & Blumenthal, L.L.P. Carter Financial Management Cawley Partners Champion Partners Chandler Signs L.L.P. CityDoc Urgent Care CLEAR Commercial Metals Company Consumer Credit Counseling Service of Greater Dallas, Inc. Crowe Horwath LLP CyrusOne Dallas Foundation Dallas Lighthouse for the Blind Dallas Mavericks Dalworth Restoration Databank, Ltd. Dave and Busters DeGolyer and MacNaughton
Duro-Last Roofing, Inc. EnLink Midstream LLC Essilor of America, Inc. Estrada, Hinojosa & Company, Inc. FPL Fibernet, LLC Fresh Point Gables Residential Trust George W. Bush Foundation Guardian Mortgage Co. Gibson, Dunn & Crutcher LLP GLP & Associates Halff Associates, Inc. Hart Group, Inc. Hazel’s Hot Shot, Inc. Hill + Knowlton Strategies Holmes Murphy and Associates HRSmart Huawei Technologies Hunt Construction Group Hunton & Williams LLP Huselton, Morgan & Maultsby, PC Hyatt Regency Dallas Hyatt Regency DFW Imaginuity Interactive, Inc. In-N-Out Burger Jefferson Tower Events Joule, A Luxury Collection Hotel Kaplan College - Dallas Kimberly-Clark Corporation LBJ Infrastructure Group LLC Linebarger Goggan Blair & Sampson, LLP Linkex, Inc. Live IT Consulting Group Lucas Group Manhattan Construction Company Marsh USA, Inc. Martin Marrietta Mary Kay Inc. McAlister’s Deli – Dallas McKinsey & Company, Inc. Metl-Span, LLC Monitronics International, Inc. Monogram Apartment Collection MW Logistics, LLC MWH Americas, Inc. Munsch Hardt Kopf & Harr, P.C. Networking Results, Inc. New York Life Regional Headquarters North Central Surgical Hospital North Texas Endoscopy Centers Ocean Prime Restaurant Office Depot Business Solutions OHL Pegasus Community Credit Union Peter O’Donnell, Jr. Polsinelli PC
Post Properties, Inc. ProBuild Prudential Asset Resources Questcare Medical Services RISE The Ritz-Carlton, Dallas River Ranch Educational Charities Russell Reynolds Associates, Inc. Schwan’s Home Services, Inc. Sewell Automotive Companies Shepard Agency Smart City Networks LP Southwest International Trucks Sparks Agency Spine Physicians Institute Spring Hill Suites Dallas Downtown-West End State Fair of Texas Structure Tone Southwest Sun Holdings, LLC Summit Financial Group Supreme Lending Texas A&M University Commerce Texas Brand Bank Texas Capital Bank Texas Rangers Baseball Club The Palm Restaurant Tiger Media Towers Watson TracyLocke Trinity Basin Preporatory Triumph Learning Union Bank Union Pacific Railroad United Surgical Partners International University of Phoenix University of South Carolina Career Center USAA U.S. Memory Care Virgin America Airlines Vision33 VOX Global W Dallas – Victory Hotel Walnut Hill Medical Center Walton Development and Management Warrior Group, Inc. Weaver West End Events, LLC Westin Galleria Dallas Weston Solutions Winston School Woodbine Development Corporation Worldwide Express Yates Construction Younger Partners Zale Corporation
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FightNight, benefiting The Real Estate Council Foundation, is the commercial real estate industry’s largest philanthropic event. Join the who’s who of the industry, local celebrities and boxing great George Foreman for an unforgettable evening. Since its inception, FightNight has raised $23 million to help more than 90 community organizations make Dallas a better place for all. Join us for this special night as we celebrate the 25th anniversary of The Real Estate Council.
THURSDAY, APRIL 23, 2015 . 6:30 P.M. . CHANTILLY BALLROOM . HILTON ANATOLE
Learn more at recouncil.com THANK YOU TO OUR SPONSORS
Prize Fight /
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Paul Rowsey, Chairman
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.
CHAMPION’S CIRCLE Bank of America Merrill Lynch Bank of Texas BURY CBRE Chicago Title Company/ Fidelity National Financial (FNF) Citigroup Foundation Compatriot Capital Embrey Family Foundation HFF JPMorgan Chase Bank
CHAIRMAN’S CIRCLE Behringer Butler Burgher Group Deloitte EY Gables Residential Goldman Sachs Granite Properties Holt Lunsford Commercial Hunt Realty Investments, Inc Jackson Shaw JLL KPMG Munsch Hardt Kopf & Harr, PC NorthMarq Capital Republic Title of Texas, Inc. Schwob Companies Stewart Title The Howard Hughes Corporation US Bank Wells Fargo
PRESIDENT’S CIRCLE BBVA Compass/ Foundation Beck Group
Breitling Royalties Corporation Comerica Bank Corgan Associates, Inc Crow Holdings Capital Partners, L.L.C. DTZ Gaedeke Group LLC Grant Thornton Invesco Real Estate Jones Day KeyBank Legacy Texas Matthews Paradise Office Development Regions Bank Thackeray Partners Winstead PC
BENEFACTOR’S CIRCLE Amegy Bank American National Bank of Texas Ares Management LLC Capital One Bank CB Jeni/Normandy Homes Chief Partners LP Diane Butler E2M Partners, LLC Fischer & Company Frost Gardere Wynne Sewell LLP GE Capital Real Estate Good Fulton & Farrell Hall Financial Group Hart Advisors Group, LLC Harwood International Haynes and Boone, LLP Hillwood Investments Hudson Americas Husch Blackwell LLP Independent Bank
WHO WE ARE 1,500 commercial real estate professionals strengthening our industry and community by connecting members, developing leaders, advocating for business and investing financial and human resources in good works.
Sue Ansel, Vice Chairman
Jackson Walker L.L.P. Kane Russell Coleman & Logan PC KDC Kimley-Horn and Associates, Inc Lincoln Property Company Locke Lord LLP Lowery Property Advisors Marvin F. Poer & Company MetLife Real Estate Investors Mill Creek Residential Trust LLC Peloton Commercial Real Estate PlainsCapital Bank Rampart Construction Roger Staubach Rosewood Property Company Stockdale Investment Group, Inc. Stream Realty StreetLights Residential Sue Ansel TDI Real Estate Texas Capital Bank The Retail Connection Thompson & Knight Foundation Tonti Properties Trinsic Residential Group UBS Financial Services Inc. UCS Group, LLC Venture Commercial Real Estate, LLC Vinson & Elkins L.L.P.
PATRON’S CIRCLE* ENTOS Design Imlach Group Jones Day Schmidt & Stacey * Donors who have provided in-kind goods and services
Learn more at recouncil.com or by calling 214.692.3600.
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EMERGING INDUSTRY LEADERS CAME OUT IN FORCE WHEN THE REAL ESTATE COUNCIL YOUNG GUNS HOSTED ITS NINTH ANNUAL CASINO NIGHT IN FEBRUARY. The event was held at South Side on Lamar, with an after party at the SODA Bar at NYLO Dallas South Side. Attendees enjoyed the ’80s-themed event with casino-style games, cocktails, networking, and the chance to win amazing raffle prizes while listening to DJ Jason Esquire’s ultimate throwback playlist. Proceeds from the 2015 event benefit the Young Guns Foundation project—Genesis Women’s Shelter. They’ll support facility updates that will create a cleaner, more efficient and welcoming facility for hundreds of women and children who are victims of domestic violence.
LEFT TO RIGHT: YOUNG GUNS VICE-CHAIR ELIAS BAHAR OF PRITCHARD ASSOCIATES, ABBY MAYER AND BIANCA JACKSON OF GENESIS WOMEN’S SHELTER, YOUNG GUNS PROJECT MANAGER BRAD BARTON OF DPR CONSTRUCTION; YOUNG GUNS CHAIR BRIAN SMITH OF BECK GROUP, AND CASINO NIGHT CHAIR JUSTIN GOERTZ OF MARVIN F. POER.
REPUBLIC TITLE’S MEGAN FORTUNE, LIZ STUTTS, LINDSEY JAMAR, AND ESTER COX.
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ROLLING THE DICE AT CASINO NIGHT 2015
LEFT TO RIGHT: KATE HUMPHRIES, BALFOUR BEATTY CONSTRUCTION; MILLER SYLVAN, TDI REAL ESTATE; SARAH HIPP, COMPATRIOT CAPITAL; KATIE CLEAVELAND, GOLDMAN SACHS; MARTI DUBUISSON, CORGAN ASSOCIATES, INC; MARCUS P. WALTHER, NORTHMARQ CAPITAL; GREG COLLINS, BERKSHIRE GROUP
EVENT SPONSOR JPI’S TEAM
MAKING THE COMMUNITY BETTER BY GIVING BACK PHOTOGRAPHY BY BRUNO
TREC’s Associate Leadership Council helps young professionals get involved. BY NOELLE JABAL
ASSOCIATE LEADERSHIP CLASS MEMBERS MEGAN SMITH OF TRAMMELL CROW RESIDENTIAL AND JARED ROOKER OF PERKINS + WILL.
In 1985, Jim Berry began his career at Deloitte, unaware what the future held for him, or that in 30 years he would have worked his way up to partner and U.S. audit leader in real estate services. Berry says he’s inspired by the challenges he faces in his job. That, and “getting to work with talented people, great clients, dealing with a lot of transactions, and cutting-edge things every day,” he says. Early on his in career, Berry was looking for a way to get more involved in the real estate sector and give back to the community. Becoming a member of The Real Estate Council gave him the opportunity to do just that. He became actively involved in community development and finding ways to help give TREC members a voice not just in the community but also throughout the state. And in 1997, Berry became part of the organization’s second Associate Leadership Class. He says it helped him learn about issues facing Dallas and the region on an in-depth level. It also gave him hands-on experience in identifying community needs, helping to raise funds, and completing good works projects. “It provides you with the opportunity to think bigger about how you can make a difference when you team with others,” Berry says. Berry has served in countless ways since joining TREC. He’s currently chair of the organization’s “I Give” campaign, which encourages members to contribute on an individual basis. This means service as well as financial, Berry says.
“IT PROVIDES YOU WITH THE OPPORTUNITY TO THINK BIGGER ABOUT HOW YOU CAN MAKE A DIFFERENCE WHEN YOU TEAM WITH OTHERS,” —JIM BERRY
“Through our unique model of combining contributed money with volunteerism, we can achieve a 5-to-1 multiplier,” he says. Since its inception, The Real Estate Council has raised nearly $10 million in grants to fund more than 90 nonprofit community organizations, supported by volunteer hours.
ASSOCIATE LEADERSHIP COUNCIL The Real Estate Council’s Associate Leadership Council (ALC) is a 10-month leadership development program for 27- to 37-year-old commercial real estate professionals designed to inspire and educate our future leaders. For more details, visit www.recouncil.com. HEATH AND ANDREA CHEEK. SPRING 2015
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CALENDAR OF EVENTS Make plans now to attend these upcoming real estate and business events. For information on programs hosted by The Real Estate Council, visit www.recouncil.com. For details on events presented by the Dallas Regional Chamber, visit www.dallaschamber.org.
APRIL.. APRIL 22 Higher Education Luncheon. 12 noon, DRC Offices. President of Purdue University, Mitch Daniels, will provide unique insights into how higher education institutions can implement best practices to better prepare students for the challenging and changing workforce in the nation. [DRC]
APRIL 23 FightNight. Thursday. 6:30 p.m., Hilton Anatole. This community fundraising evening features professional boxing, exceptional cuisine, casino gaming, Vegas-style entertainment and the opportunity to be among the top decision makers in the real estate industry and political community. Buy tickets at recouncil.com/2015fightnight-registration [TREC]
APRIL 29 Coffee Cup Connections. 7:30 a.m., DRC Offices. Fastpaced lead generation breakfast, with an opportunity to meet as many as 65+ quality peer-business professionals. [DRC]
MAY.. MAY 8 Education Outlook Series. 7:30 a.m., DRC Offices. The second of the three-part series will feature HEB Houston’s President, Scott McClelland, who will emphasize why quality, full-day Pre-K is important to the business community. [DRC]
MAY 27 Global View: Survive and Thrive. 7:30 a.m., Belo Mansion. Retired Navy Seal Clint Emerson, CEO of Escape the Wolf (www.escapethewolf.com), helps companies and individuals bridge the gap between crisis and the unknown with preemptive security solutions. Part of the Bank of America Speaker series, presented by the Dallas Morning News. [TREC]
LDA COMMUNITY DAY: ALL HANDS ON DECK Alumni of the Dallas Regional Chamber’s Leadership Dallas program come together to make a difference. BY NOELLE JABAL
LDA in the Community Day only happens once a year, but it has a lasting impact on the community—and on those who participate. On Jan. 24, Leadership Dallas Alumni and other volunteers gathered in Old East Dallas to give back, with a variety of activities geared toward improving the lives of residents of all ages. Founded in 1975, Leadership Dallas is the Dallas Regional Chamber’s flagship leadership development program. It aims to provide the city with an ongoing source of diverse leaders who are prepared and committed to help spark and sustain positive change for the quality of life in the greater Dallas area. Leadership Dallas’ alumni group, or LDA, becomes larger and its impact is enhanced with each graduating class. One of the group’s signature programs is the annual LDA in the Community Day. Heading up one of the project sites this year, and previous co-chair of the event, was Steve Doyle, corporate counsel of Austin Industries. In Old East Dallas, LDA members and other volunteers held resume workshops, helped prepare apartments for new families, restored picnic tables and outdoor seating areas, and held a workSTEVE DOYLE shop for nonprofit leaders. With each year, the number of LDA volunteers continues to grow, Doyle says. “We had more people stepping up this year and wanting to help early on in the process,” he says. “It’s more than we ever had in the past.” The number of participating agencies also continues to grow, he says. This year, LDA volunteers were partnered with LUMIN Education, Volunteer Center of North Texas, Alley’s House, CitySquare, Community Partners of Dallas, Interfaith Housing, and Juliette Fowler Communities. LDA in the Community Day helps the agencies connect with residents throughout the year—extending impact. The group has found that it helps to narrow the focus to a specific community. The first LDA in the Community Day was held in West Dallas (in 2013). Doyle says it’s a privilege to be involved and to help foster positive change. He encourages other LDA members to join in.
JUNE.. JUNE 4 Chamber Live! 8:30 a.m., DRC offices. Orientation for new members and prospective members to learn about the DRC and its initiatives.[DRC]
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Leadership Dallas, the flagship program of the Dallas Regional Chamber for leadership development, is aimed at increasing the leadership pool for community activities in the Dallas area. Visit dallaschamber.org for more information.
BUSINESS WORKS BETTER HERE Explore for facts supporting why DFWâ€™s business climate is more than favorable, the workforce is highly skilled and highly educated and the location is about as close to perfect as it comes. Each page contains a snapshot of the DFW region, our people, companies, and industries. Use this fact rich tool to promote the region, attract businesses to your community, and expand existing ones.
THE DALLAS-FORT WORTH REGIONAL ECONOMIC DEVELOPMENT GUIDE. AVAILABLE AT WWW.DALLASCHAMBER.ORG/DFWFACTS/
VIEW FROM THE TOP DARKO DEJANOVIC CEO, Active Network
Active Network, a global data solutions company that streamlines activity and event administration, moved its global headquarters from San Diego to Dallas in late summer 2014. The company signed a 12-year lease for 125,000 square feet at 717 Harwood, formerly known as KPMG Centre. For its impact on the local economy, Active Network was recognized by the Dallas Regional Chamber with the 2014 Blueprint Award. Here, CEO Darko Dejanovic talks about the relocation and what it has meant for the company.
WHY DID ACTIVE NETWORK DECIDE TO MOVE TO DALLAS?
We have many offices globally, and we wanted to consolidate several of our U.S. offices into one large global headquarters to drive operational efficiency. We were looking for a location with a businessfriendly climate, a strong pool of talent, and a city that offered a great quality of life for our employees. Based on our search, Dallas proved to be our top choice, and it has exceeded our expectations. Dallas is a vibrant and growing city, and its location makes it a great hub for our expanding global business.
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WHY WAS DOWNTOWN THE RIGHT CHOICE?
We wanted to be in an urban, fast-paced environment, where we can tap into the energy of the city of Dallas. We felt that the Arts District, in particular, was in tune with who we are as a company, [so we wanted close proximity]. Active is a high-energy, growing business, and being in the city fits best with us and the talent we want to attract.
HOW HAVE THINGS BEEN GOING SO FAR?
Fantastic. We’ve built-out what we’ve been told is the best tech office in North Texas, a state-of-the-art, 125,000-square-foot space that fosters collaboration and innovation. We’ve hired several hundred talented and passionate people since last summer, and we are well on our way to having 1,000 staff here. Active is excited about making Dallas our home and growing with the city.
HIGH-QUALITY PROPERTIES. SUPERIOR LOCATIONS.
At Duke Realty, we know the importance of having a well-placed building that projects the right image for your company. That’s why we’ve delivered almost 20 million square feet of strategically located, state-of-the-art industrial, office and medical buildings in the Dallas metro area. And we keep on growing. Right now we are building a 93,000-square-foot industrial project for Advance Spice and Valdez and a 270,500-square-foot speculative warehouse (with 127,189 square feet available for lease) at Point West, our flagship industrial development in the Dallas/Fort Worth Airport submarket. Plus we own 220 acres of land in the market’s top office and industrial submarkets ready for up to 4.2 million square feet of new development. Locate your operations into a well-placed, first-class Duke Realty property or let us deliver a build-to-suit facility for you. Call us at 972.361.6700 or visit dukerealty.com/dallas for more information about our industrial and office space capabilities.
14241 N. Dallas Parkway, Suite 1000 Dallas, TX 75254 | 972.361.6700 dukerealty.com/dallas
610 Uptown Class A Office
Build-to-suit Sites Available
THIS is Cedar Hill
L A N D OF OP P OR T U N I T I E S Cedar Hill’s robust development has made it a prime location for commercial, industrial, residential, retail and recreational opportunities. Located in the beautiful hill country environment of Joe Pool Lake and
° Pro-business environment with a workforce of over 1 million within a 30-minute drive time
° Low taxes, low cost of living, quality education,
over 3 million sf of retail, and Class A office space
° To facilitate and energize relocation and
expansion, Cedar Hill offers aggressive economic development incentives
the Cedar Hill State Park, Cedar Hill is the natural choice for those who want big-city amenities with a small-town ambience.
° 20 minutes from Downtown Dallas ° US 67/Rail-served Business Park 285 Uptown Boulevard • Bldg 100 • Cedar Hill, Texas 75104
Allison J. H. Thompson, CEcD, EDFP - Director ° firstname.lastname@example.org ° 972.291.5132 ext.5 ° cedarhilledc.com Rolling Hills and Panoramic Vistas
Uptown Village at Cedar Hill
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