A N ATO M Y O F A D E A L
RANCH —————— A L S O I N S I D E ——————
DALLAS’ HOTEL BOOM RETAIL ROUNDTABLE THE CRANE REPORT
Design with community in mind
Developing communities of distinct and local character through: Planning Civil Engineering Landscape Architecture Survey/Geomatics Transportation Planning & Traffic Engineering
FA L L 2 0 1 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 / 1
UNDERSTANDS... Breadth of knowledge and depth of experience are essential in an ever-changing real estate market. For more than 30 years, our professionals have provided audit, tax, fund administration, and consulting services to real estate developers, lenders, contractors and investors around the country.
Austin | Dallas | Fort Worth | Houston
ON THE COVER: Circle T Ranch. Photos provided by Hillwood.
17 THE CRANE REPORT
Welcome Letter . . . . . . . . . . . . . . . . . . . . . . . . . .6 Publisher’s Note . . . . . . . . . . . . . . . . . . . . . . . . .8
FOUNDATIONS DFW Market Statistics, Economic Indicators, and Commercial Real Estate News. . . . . . . . . 10
BUILDING TOMORROW TOGETHER Say Yes to Dallas . . . . . . . . . . . . . . . . . . . . . . . 13
THE CRANE REPORT
Who’s Building What, Where . . . . . . . . . 17
SCORECARD DFW’s Top Office, Industrial, and Retail Leases . . . . . . . . . . . . . . . . . . . . . . 25
ROUNDTABLE Talking Shop: Retail real estate experts evaluate the present and look ahead to the future . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 3
TOOLBOX Labor Market Spotlight Alliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Inland Port . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
E XC L USI V E LY P UB L ISHE D B Y D MAGAZINE PARTNERS
D MAGAZINE PARTNERS BUSINESS GROUP PUBLISHER Josh Schimmels
PUBLISHER Quincy Curé Preston
Unlocking the Hotel Boom:
What’s the key to hospitality construction in the Dallas Region? . . . 42
MANAGING EDITOR Lance Murray
CREATIVE DIRECTOR Michael Samples
CONTRIBUTING WRITERS Jeff Bounds Kerry Curry Dave Moore Heather Noel Amy Wolff Sorter
DIRECTOR OF SALES
48 ANATOMY OF A DEAL
Kyle Moss 214-523-5247 firstname.lastname@example.org
A Corporate Home on the Range
Ross Perot Jr.’s vision comes closer to a reality . . . . . . . . . . . . . . . . . . . 48
BUSINESS DEVELOPMENT MANAGER Stephanie Mojonnet 214.523.0311 email@example.com
SPECIAL ADVERTISING SECTION Economic Development Directory Profiles of cities around the region . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
MEDIA DEVELOPMENT MANAGER Callie Head
COMMUNITY Placemakers: Arcadia Realty Corp . . . . . . . . . . . . . 15 The Real Estate Council, Impact Investors . . . . . . . . . . . . . . . . 85 Dallas Regional Chamber, Top-Level Members . . . . . . . . . . . . . 86 Dallas Regional Chamber, Leadership Dallas . . . . . . . . . . . . . . . 88 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
Chloe Bennett Mallory Houser
Calendar of Events . . . . . . . . . . . . . . 89 Photos: FightNight XXIX: A Havana Knockout . . . . . . . . . . . . . 90 The Real Estate Council, TREC Leadership . . . . . . . . . . . . . . . 91 View From the Top: Steve Demetriou . . . . . . . . . . . . . . . . 92
Chase Mardis SabrinaScott
Dallas-Fort Worth Real Estate Review® is published for The Dallas Regional Chamber and The Real Estate Council by D Magazine Partners, 750 N. St. Paul St., Ste. 2100, Dallas, TX 75201; www. dallaschamberpublications.com, 214.523.0300. ©2017 All rights reserved. No part of ths publication may be reproduced or reprinted without written permission. Neither the Dallas Regional Chamber nor The Real Estate Council nor D Magazine Partners is a sponsor of, or committed to, the views expressed in these articles. The publisher is not responsible for unsolicited contributions.
From Downtowns to Suburban Destinations
WE SET THE STAGE Urban Design Entitlements Infrastructure
REPRESENTATIVE PROJECTS CITYLINE TOD TRINITY LAKES TOD MONTGOMERY RIDGE HERITAGE CREEKSIDE DOWNTOWN MCKINNEY DALLAS CITYMAP (depicted)
214.529.7430 | 817.348.9500
A letter from the Dallas Regional Chamber and The Real Estate Council
JAPAN AND DALLAS: A RELATIONSHIP BUILT ON SUCCESS
2017 CHAIRMAN OF THE BOARD Hilda Galvan Partner-in-charge, Jones Day PRESIDENT & CEO Dale Petroskey CHIEF OPERATING OFFICER & CHIEF FINANCIAL OFFICER Pat Priest
DALE PETROSKEY President and Chief Executive Officer Dallas Regional Chamber
LINDA McMAHON President and Chief Executive Officer The Real Estate Council
Dallas is nearly 6,500 miles from Japan, but you wouldn’t know it by looking around the Dallas Region. In July, the world’s largest automaker – Toyota – opened its $1 billion North American headquarters in Plano to house more than 4,000 jobs as part of a $10 billion U.S. investment in the next five years. Earlier this year, Kubota opened its $50 million regional headquarters and research facility in Grapevine. Not long before that, OKI Data opened a $3.5 million technology center in Irving. The Dallas Morning News recently reported that over the past three decades more than 192 Japanese regional operations or headquarters have taken root in
the Dallas Region, nearly half of them since 2012. The commonalities between the Dallas Region and Japan might not seem obvious, but when we come together, as we did at a recent summit of Japanese and Dallas Region companies, our business interests and relationships become clearer. That day, in the Dallas Regional Chamber’s Toyota Conference room, Robert Hastings, of Bell Helicopter, spoke of many collaborations that his firm has with Japan, including the maintenance performed on the Osprey aircraft, which occurs in Japan. Holly Reed, the managing director of external affairs for Texas Central Partners, spoke of the Japanese technology that will be core to the Texas bullet train project scheduled to begin operations from Dallas to Houston as early as 2023. Executives from Japan-based ORIX USA, NEC Corp. of America, and other firms attended as well. Both Japan and the Dallas Region thrive on trade as an essential component of our economies’ health. Texas is the world’s 10th largest economy, largely due to our exports. Trade also is essential to the island nation of Japan, whose history of trading with the West dates back more than 400 years. Japan is the third-largest importer of Texas goods. Japan ranks sixth among countries importing goods into Texas. This is much more than simply an exchange of goods, services, and currency. It’s about building and deepening relationships. “If the business climate is right, and we know it is in Texas, and we know it is in Japan, we know it’s the people who are going to make these things happen,” said Bryan Daniel, executive director of Gov. Greg Abbott’s Economic Development and Tourism Division. “We know these ongoing relationships are important. We’re not going to get the deal done on the first meeting. A relationship has to be built.” These relationships, if fostered, yield results as simple as the opening of Mitsuwa Marketplace in Plano, to corporate offices like Toyota, or more than a dozen other Japanese operations in North Texas. We anticipate many more will follow in Toyota’s footsteps. And the Dallas Region’s commercial real estate community will continue to work hard to help make these relocations and openings come to fruition. In November, a trade delegation from Dallas Region traveled to Japan to fortify existing relationships and to grow new ones. The July 7 Dallas-Japan Summit at the Dallas Regional Chamber headquarters was an outcome of that visit to Tokyo. A return trip is expected in 2018. The relationship between the Dallas Region and Japan has grown because our people genuinely like each other, and want each other to succeed. And we know that by working together, we can grow economically and as global communities.
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
COMMUNICATIONS & MARKETING, SENIOR VICE PRESIDENT Darren Grubb RESEARCH AND INNOVATION, SENIOR VICE PRESIDENT Duane Dankesreiter RESEARCH AND INNOVATION, MANAGING DIRECTOR Eric Griffin
2017 CHAIRMAN Greg Kraus Invesco VICE CHAIR Ran Holman Cushman & Wakefield PRESIDENT & CEO Linda McMahon VICE PRESIDENT, LEADERSHIP & CULTURE Holland Morris VICE PRESIDENT & FOUNDATION DIRECTOR Robin Minick CFO Carla Brandt
Since 1965 Saville, Dodgen & Company has been the trusted advisor for clients across a range of distinctive industries from privately-owned local companies to large public corporations around the world.
Our clients look for strategies that offer freedom, financial security and the ability to turn a business dream into reality. We have a sincere passion for offering our clients exceptional expertise and extensive industry knowledge combined with the utmost confidentiality and professional integrity.
UPFRONT QUINCY CURÉ PRESTON Publisher Dallas-Fort Worth Real Estate Review
A letter from the Publisher
Dallas-Fort Worth continues to be one of the hottest real estate markets in the country, with every sector showing strong activity and bright futures. In this edition of the Real Estate Review, we look at how corporate campuses are taking hold at a working cattle ranch in North Texas that is owned by Ross Perot Jr., and how hotels are springing up all across North Texas. In the summer edition, our cover story is on the Circle T Ranch in Westlake, where a massive mixed-use development soon will surround a new regional campus for the financial giant Charles Schwab Corp. It will join Fidelity Investments and Deloitte University in Westlake. That report begins on Page 48. This edition, our roundtable experts talk about challenges and successes in the DFW retail real estate market. The discussion took place on the day Amazon announced it was buying Whole Foods. Their phone alerts were chiming. They had plenty to say, and you’ll find the roundtable beginning on Page 30. There’s a hotel boom underway in North Texas with numerous facilities under construction or planned all across DFW. We check into what’s driving the boom beginning on Page 42. And, starting on Page 57, the Labor Market Spotlight gives you facts and figures about the Alliance and Inland Port developments, two of the major driving forces in North Texas industrial space. Our Placemakers feature on Page 15 looks at the unique traditional neighborhoods being developed by Arcadia Realty Corp., which works with local cities to ensure their developments are places that people want to live, generation to generation. On Page 92, you’ll find out what prompted Jacobs Engineering to move from California to Dallas in the words of CEO Steve Demetriou. You’ll find the biggest lease transactions in office, retail, and industrial in DFW in Scorecard beginning on Page 25, and the latest in construction projects in the Crane Report beginning on Page 17. You can always find extended content on our website, www.dfwrealestate.com, and in our Facebook feed. Let us hear from you.
Quincy Curé Preston Publisher
8 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
The Addison - 2017 BOMA International Toby Award Winner
The BOMA International TOBY Award is the most prestigious and comprehensive program of its kind in the commercial real estate industry, recognizing excellence in building ownership and management. The Addison was awarded first place in its category, competing against buildings from all over the US and other countries.
FOUNDATIONS REPORT SHOWS IMPACT OF E-COMMERCE ON RETAIL SECTORS Dallas-Fort Worth is a burgeoning market for e-commerce fulfillment, with companies such as Amazon, Kohl’s, WalMart and others operating large, even multiple, facilities in North Texas. According to a report by CBRE, data released by the U.S. Census Bureau for the first time offers a breakdown of internet sales by retail category. The data is available for only 2015, but it offers key takeaways about the industry. Here’s what CBRE had to say: > The electronics and appliances category shows the highest e-commerce penetration of any retail category, with nearly 20 percent of total sales occurring online in 2015. > Clothing and accessories stores account for the highest total volume of internet sales ($24.2 billion), but e-commerce share remains below 10 percent. > General merchandise, which includes department stores and other mass merchandisers, also represents a high volume of internet sales ($22.5 billion) but a low rate of e-commerce penetration — 3.3 percent. > Food and beverage stores, which consist primarily of groceries and supermarkets, remain among the lowest for e-commerce share at 0.1 percent and only $1 billion in total internet sales. > Motor vehicle and parts dealers feature the lowest rate of e-commerce penetration, as most car sales occur at brick-and-mortar dealerships. This is likely to rise over the coming years as online vendors grow, but the current annual e-commerce sales for this category are just $528 million. The U.S. Census Bureau says the information, while subject to a margin of error, accounts for roughly 87 percent of online retail sales.
A baseline for the region’s future BY LANCE MURRAY
DOWNTOWN FORT WORTH’S HEALTHY REAL ESTATE MARKET
E-COMMERCE SALES BY RETAIL CATEGORY (2015) CATEGORY
% OF RETAIL SALES
Downtown Fort Worth, like downtown Dallas, continues to draw interest from investors and is seeing new hotels and new residents. Everything seems to be moving upward, and the research department at Downtown Fort Worth Inc. has compiled some interesting data on several real estate asset classes showing why that’s true. Here are some key takeaways from the annual State of Fort Worth Report.
ELECTRONICS AND APPLIANCE STORES
CLOTHING AND ACCESSORIES STORES
SPORTING GOODS, HOBBY, BOOK, AND MUSIC STORES
GENERAL MERCHANDISE STORES
BUILDING MATERIAL AND GARDEN EQUIPMENT DEALERS
HEALTH AND PERSONAL CARE STORES
> There are 2,603 residential units planned or under construction, which is a 63 percent increase in inventory.
FOOD AND BEVERAGE STORES
> Six hotels are planned or under construction, totaling 1,065 rooms.
MOTOR VEHICLE AND PARTS DEALERS
> As of the fourth quarter of 2016, Class-A office space in downtown was 88 percent occupied.
> Downtown has an appraised property value of $3.4 billion.
> Downtown has an average retail occupancy of 92 percent. > Since 2006, retail sales have increased 98 percent downtown. > Multifamily occupancy topped 97 percent in the last year.
> Downtown has 7,616 residents.
SOURCE: CBRE/U.S. Census Bureau
STRONG EMPLOYMENT DRIVES RETAIL EXPANSION IN DALLAS REGION facilities, urgent-care centers, and dentists — businesses off ering lifestyle and health-related options for office workers or those who live in the developments. Marcus & Millichap also says that the diversification of tenant mixes in North Texas shopping centers is creating strong traffic and tenant demand. Vacancy rates are being driven to historic lows as supply additions continue to lag the pace of absorption, the company says. The report says strong hiring in the Dallas Region is fueling retail spending significantly.
1 0 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
JOB GROWTH BY U.S. METROPOLITAN AREA Dallas Atlanta Miami Phoenix Detroit San Francisco Boston Philadelphia New York Washington Houston Los Angeles Chicago
3.3% 3.1% 2.8% 2.7%
2.1% 1.9% 1.7% 1.6% 1.6% 1.5% YEAR-OVER-YEAR 1.5% CHANGE,
SOURCE: DRC Research
The retail landscape in North Texas continues to be shaped by the “strong and steady employment expansion” in the region, according to the second quarter 2017 market report from Marcus & Millichap. The report says that thousands of jobs are being created in mixed-use developments across the region that combine retail, office, and residential into one master-planned community. That combination is drawing a variety of retail establishments — from necessities-based retailers to eateries, and even specialty stores. It’s also drawing nontraditional retail tenants such as fi tness
F FOUNDATIONS AS RESIDENTS LEAVE NEW YORK, DALLAS ECONOMY CONTINUES TO GROW
DIVERSITY IN THE DALLAS REGION’S INDUSTRIAL SECTOR
From 2010 to 2016, more people moved out of New York than moved in. Often they were headed to Dallas. Quartz says while New York is an epicenter of culture, fashion, and finance, there’s a factor that causes residents to head elsewhere — lack of jobs. New York lost 900,000 residents to domestic migration, Quartz says. That’s the largest loss by any major U.S. metro area, and according to data, many may have headed to Dallas, the city that added the largest number of residents during that time period. The migration was fueled by jobs created by the brisk economy of the South and cheaper real estate, Quartz
Government & Personal Services Energy/Utilities/ Construction
Medical & Technology Related
Business Services Related
INDUSTRIAL TENANTS OVER 50K SF 575 M SF DFW INVENTORY
Manufacturing and Related
said. The website said Dallas makes a great economic case to attract many of those migrants. Its economy has grown 4 percent on average yearly from 2011 to 2015, and Dallas has added more jobs in the past 12 months. Dallas was the 2nd top job generator in May nationwide, producing 115,800 extra jobs compared to the same month a year earlier. New York was first with 157,500 new jobs. And, the jobs are often related to Dallas’ success in luring corporations to relocate their headquarters to North Texas — Toyota, Jamba Juice, Jacobs Engineering, and a division of Boeing, for example.
DALLAS REGION SEES RECORDBREAKING RETAIL OCCUPANCY
Wholesale — Retail
More and more, Dallas-Fort Worth is becoming known for its industrial properties that thrive in a location known for access to air and land transportation options. JLL reports that the industrial market in North Texas is attracting a diverse industrial tenant base, according to the breakdown of industrial tenants by major Standard Industrial Classification (SIC). The breakdown looks at the 2,300+ tenants in North Texas with more than 50,000 square feet of industrial space. JLL says that retail, commerce, and consumer products show clear regional strength. JLL says that a major takeaway from their study is that DFW’s industrial market is very diverse, and has many drivers shaping demand because of North Texas’ central location in the U.S., the region’s status as a top five metro economy, multiple logistics hubs, the availability of rail and air transportation. and the region’s great access to highways — both regional and interstate.
Dallas-Fort Worth has broken a 34-year-old record for high occupancy in the retail sector and now is at 92.6 percent, according to a report by the Weitzman Group. That exceeds the previous high of 92 percent in 1984, the report says. DFW, Austin, Houston, and San Antonio all reported near recordlow construction in 2016, boosting occupancy by sending retailers to existing space in established submarkets, Weitzman reports. The company says that new space in 2017 will be on par with or slightly below the level in 2016. Grocery stores remain the dominant anchor type in the state’s largest metro areas. In fact, much of the new space retail space added in 2016 was for grocery-anchored sites, led by such companies as Kroger and some mixed-use projects. Weitzman also reports that more than 3 million square feet of retail and restaurant projects are under
construction in North Texas. That’s the most in nearly a decade. That figure is the most new construction since 2008 when there was 4.9 million square feet of retail space completed. Where are the projects? You’ll find big concentrations of new shops in Frisco’s Star development with the Dallas Cowboys, the new Legacy West in Plano, and the Shops at Clearfork development in southwest Fort Worth. A large piece of retail construction in DFW is supermarkets, big box stores, and entertainment facilities. Analysts forecast a downward trend in new retail construction beginning next year, but bricks and mortar stores are anything but dead. “People still like to go out and eat and be entertained, and people still like to shop,” Weitzman CEO Marshall Mills told The Dallas Morning News. “And in this market compared to some of the other major markets in the U.S. we have a really robust economy.”
DALLAS OFFICE MARKET CONTINUES TO THRIVE Since 2010, North Texas has added nearly 700,000 jobs, an increase of roughly 25 percent to the region’s job base, and that growth is driving office demand across the region. According to JLL’s first quarter office report, Dallas has absorbed 19 million square feet of Class-A and Class-B office space. Even though construction on new
office space has ramped up, the area’s usually high vacancy rate has fallen in recent years — from 25 percent in 2009 to 17.7 percent now. Almost all submarkets have shown an increase in rental rates, partly driven by new construction that is helping to drive rents in existing properties. JLL says that in the last cycle,
rents have been rising consistently, up roughly 28 percent in the past four years. “Tenants are positioning themselves in the right location with the right amenities in order to retain and recruit top talent for their respective companies, at a premium with rental rates reaching record highs of as much as $52
per square foot in Uptown,” Brooke Armstrong, senior vice president of JLL told GlobeSt.com. In the Uptown/Oak Lawn submarket, for example, total inventory is 11.405 million square feet. Total net absorption is 586,698 square feet with 1.295 million square feet under construction, JLL reports.
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 1
EXPERTS SHARE INSIGHTS ON INSTITUTIONAL CAPITAL BY HE ATHER NOEL
The May 24 “Industry Insights” event from The Real Estate Council and Real Estate Deal Sheet took a dive into institutional capital. Keynote speakers Michael Easson and Adam Geha, co-founders of EG, flew in from Australia to discuss their unique approach to risk management and their proprietary software they say analyzes data better than “misleading spreadsheets.” Following their talks, representatives of institutions discussed what they’re seeing in the current market and how they’re navigating the ever-changing real estate industry. Here are some of the takeaways:
INVESCO REAL ESTATE
CHILDREN’S MEDICAL CENTER
“In [fund managers’] personalities, we look for humility. I want an individual to know what he or she is good at and what they’re not. I also look for discipline. The discipline to say, ‘when the environment is not in my favor, I step down.’”
“We’re seeing disruption in our industry. We’re seeing our tenants accessing real estate in a different sort of way. I think we’re all trying to be extremely thoughtful in pursuing the right assets.”
“The big thing we look at is technological change and immediately there’s disruption … we’re going to have self-driving cars, we’re going to have robotics, we’re going to have all these things that are coming, and they’re going to transform how we use real estate.”
“If you really want to get something done with us, come see us early, come see us often, and come see us with no agenda in mind other than to understand what it is we are attempting to do.”
“Big picture, we use [CRE investment] as a diversifier because we have a lot of equities and bonds in the portfolio.”
“We’re biologically programmed to try to avoid [risk], the rich actively think it, but then only to minimize it.”
TEACHER RETIREMENT SYSTEM OF TEXAS
“We’re much more focused on higherquality assets, better locations, and we really focus on our downside cases.”
1 2 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
EMPLOYEE RETIREMENT SYSTEM
SAROFIM REALTY ADVISORS
“The urban multifamily is currently at a supply demand imbalance with a lot of supply and hopefully continued demand.”
“If you’re not measuring timing risk, you’re not managing it.”
B BUILDING TOMORROW TOGETHER
PHOTO: MICHAEL SAMPLES
GETTING TOP TALENT TO
‘SAY YES TO DALLAS’ BY MIKE ROSA
“Where else would you rather be right now than Dallas, Texas?” is a question Dale Petroskey, President and CEO of the Dallas Regional Chamber, often and proudly asks in economic development meetings and conversations. “It’s just easier in Dallas” is a short and sweet statement that I heard Mayor Mike Rawlings use to effectively wrap up a slide deck pitch to executives with a potential relocating company. I really like Mark Cuban’s description of Dallas as a “friction-free” place to start and grow a business. “Best region, best state, best nation” is something I’ll often say when asked why this region has been so incredibly successful in attracting companies. The Chamber’s strategic plan developed for 2016-2020 recognized that this region has had tremendous success in attracting companies, but that in order to continue that success, we need to help those companies, and companies already here, to attract, find and retain employees. One major element of the Chamber’s five-year plan calls for a talent attraction initiative.
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 3
B BUILDING TOMORROW TOGETHER If you’re a fan of a quick phrase that packs a lot of meaning, then you’ll like “Say Yes to Dallas,” the name for our talent attraction campaign to showcase Dallas as a great place to start or continue a career, to raise a family, and to experience a high quality of life. Corporate recruitment and talent recruitment go hand in hand these days. Every company the Dallas Regional Chamber meets to recruit here is focused in a big way on labor force. The ability to relocate, to attract, to find, or to develop talent is critical to company success. Our region’s ability to provide and to draw talent will be the determining factor in whether we win or lose most deals. 2016 was a planning and development year for the campaign. The Chamber hosted five focus groups to collect information and perceptions about the attributes and challenges in attracting individuals and families to Dallas. We also conducted a nationwide, professionally executed survey of 1,000 young people who are living outside of Texas. We learned a lot. We learned that we are starting this campaign on solid ground. Already, 61 percent of non-Texan millennials have a favorable perception of Dallas, and 58 percent would consider moving to Dallas for the right job. Those are strong numbers; particularly since included in the survey were young people living in some pretty cool places with beaches, mountains, or both, even if those places are impossibly expensive. We learned that strong selling points for Dallas are the availability and variety of job opportunities, the low cost of living,
ALREADY, 61 PERCENT OF NON-TEXAN MILLENNIALS HAVE A FAVORABLE PERCEPTION OF DALLAS, AND 58 PERCENT WOULD CONSIDER MOVING TO DALLAS FOR THE RIGHT JOB. especially compared to those famously expensive places, no personal income tax, lots of options for housing, the central U.S. location, our two great airports, and the overall quality of public schools in the region. The focus groups were not shy about sharing their perceptions of Dallas’ challenges, like infrastructure, public transportation, commuting and traffic, the hot summers, and lack of mountains and beaches, and the availability of housing near downtown Dallas. 2017 is the first full year of the campaign’s implementation. The Chamber has built an entirely new Talent Attraction department, led by Jessica Heer, Senior Vice President. Jessica has been with the Chamber for several years, most of those working with me in corporate recruitment. Her experience working with companies, human resource executives, and even relocating employees and families is perfect for this new role. Already, featured articles, videos and a host of “Say Yes To Dallas” campaign materials are available at the campaign’s website, www.sayyestodallas.com. There is a lot more to come as we build a very powerful capability to market to individuals and families and encourage them to come to Dallas, while also providing a toolkit suite of resources for existing regional companies as well as inbound relocations to attract and retain the best and brightest.
WANT TO LEARN MORE ABOUT HOW TO GET INVOLVED IN BUILDING TOMORROW TOGETHER?
Contact Mike Rosa, Senior Vice President, Economic Development, Dallas Regional Chamber 214-746-6735 | firstname.lastname@example.org
BUILDING TOMORROW TOGETHER The Dallas Regional Chamber’s economic development program, Building Tomorrow Together, provides organizations in Dallas-Fort Worth with an accelerated investment opportunity that helps advance our region’s success. This additional investment made by more than 130 organizations in addition to annual chamber membership dues allows organizations to increase their support of our efforts to further economic prosperity throughout the region. This initiative funds efforts related to direct contact with corporations and location consultants examining the DFW region.
1 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
BILL GIETEMA (LEFT) AND JOHN HODGE OF ARCADIA REALTY CORP.
CREATING GREAT PLACES
PHOTO: LANCE MURRAY
Arcadia Realty Corp. founders John Hodge and Bill Gietema want to build neighborhoods that attract families — generation after generation after generation.
BY LANCE MURRAY
Dallas-based Arcadia specializes in developing master-planned mixed-use developments that blend single-family homes with townhomes, apartments, health and fitness, open spaces, commercial businesses, and other amenities. Hodge and Gietema design their properties with a simple question in mind. “How do we create great places?” Gietema says. The two have been working together since their days as students at the Massachusetts Institute of Technology, where both earned masters’ degrees. Hodge has great admiration for Gietema, who is responsible for the firm’s entitlements, land planning, and development operations. “I consider him one of the best planners in the nation,” Hodge says of Gietema. “Some of this stuff really is cutting edge.” Hodge is responsible for acquisitions, finance, strategic planning, and administration. “John is the master of getting banks,” Gietema says of his partner. Together, they have developed some of the most-creative traditional communities in North Texas — places such as The Canals at Grand Park in Frisco, the Homestead at Liberty Grove in Rowlett, The Parks at Raiford Crossing in Carrollton, the 333-acre HomeTown North Richland Hills, Cambridge Gate in Dallas, and The Homestead in Carrollton. What makes their more-than 30 communities unique is the approach Gietema takes to incorporating multiple features into communities with planned traffic flows, plentiful amenities, and an approach that attracts families as they grow and age. They build neighborhoods that are attractive to young and old alike, a place
where children buy homes near their parents and their grandparents. Take The Canals at Grand Park in Frisco, for example. In addition to its mix of urban flats, townhomes, single-family homes for adults and families with children, you’ll find senior independent living, assisted living, and memory care facilities in one neighborhood. Arcadia has found success, in great part, because it has worked with the leaders in DFW cities to create rules that create long-term value for the homeowners and the city. Arcadia does market research to determine what clients want, and is willing to try different things to see how they work out and are accepted. It has developed state-of-the art “visual preferencing” techniques and supports an MIT research project into homebuyer preferences. They make sure that their neighborhoods have a variety of housing types for a variety of households. “We’ve got some neighborhoods where people have moved three to four times to stay in the neighborhood,” Gietama says.
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
750+ real estate professionals
11 locations across the country
BILLION in real estate transactions annually
www . st r ea m r ea lt y . co m
MILLION sf leased and/or managed from coast-to-coast
VENTANA, A TWO-TOWER SENIORS RESIDENTIAL DEVELOPMENT, IS BEING CONSTRUCTED NEAR NORTHPARK CENTER.
THE CRANE REPORT
The demand for office space in Dallas-Fort Worth continues to be strong with many firms looking for a “work, live, play” environment. Lenders have tightened requirements for speculative development, and that could have an impact on preleasing for much of the new developments. In each issue of the Dallas-Fort Worth Real Estate Review, we showcase projects that are underway or planned in the Crane Report. Data for the office and industrial sectors is provided by Xceligent Inc., while data for the multifamily market is provided by Axiometrics, a RealPage Company. BYLANCE MURRAY
ON-THE-GRO U N D I N S I G H TS
“The amenity list is getting longer as each owner adds value for the higher quoted rental rates. No longer is it just a deli, it’s a ‘healthy’ deli along with restaurants in the immediate area. Athletic facilities are staff ed vs. “equipment only” and conference facilities [must] accommodate diff erent meeting sizes.”
“In today’s highly competitive labor market, corporate office tenants are more focused on their real estate needs than ever before. Their selected office building must serve as an extension of their corporate culture, allowing companies to attract and retain talent with a high level of services and amenities.”
“Since transportation is still the single most expensive component aff ecting the cost of goods, more than inventory or rent, industrial users will continue to focus on locations that shave this and other supply chain costs.”
“With more than 100,000 jobs added for the past 12 months through April, these employees have to live somewhere. There’s a strong focus on the live, work, play concept in Dallas. The Midtown Project, Richardson’s Cityline, Plano’s Shops of Legacy and Legacy West are prime examples.”
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 1 7
THE CRANE REPORT:
● ANNOUNCED ● UNDER CONSTRUCTION
CYPRESS OFFICE 1317 E MCKINNEY ST
OAKMONT OFFICE CONDOS
ANNOUNCED + UNDER CONSTRUCTION
OLD TOWN BLVD NORTH BUILD TO SUIT PAD # 1
PRAIRIE COMMONS OFFICE CONDOMINIUMS LAKESIDE CROSSING
TROPHY CLUB TOWN CENTER
SHOPS AT WILLOW BEND
SIZE: 200,000 square feet DEVELOPER: Encore Enterprises DETAILS: The seven-story, 200-squarefoot building is planned next to the Shops at Willow Bend in Plano. The Class A office tower will be adjacent to the mall’s food court and integrated into Dillard’s parking garage. It will be able to accommodate 800 employees.
HALL PARK IN RICHARDSON
SIZE: 300,000 square feet DEVELOPER: Craig Hall with Leon Capital Group DETAILS: The mixed-use development in Richardson with a 1.5-acre oasis of a park in the middle of the project will have two five-story office buildings totaling 300,000 square feet of space. It will be on nearly 30 acres at the southwest corner of Custer Parkway and the President George Bush Turnpike. Plans include constructing 417 apartments and 15,000 square feet of retail space.
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
MONTEREY OFFICE PARK TANGLEWOOD OFFICE PARK
NORTHWEST PLAZA 104 COUNTRY VIEW DR
801 ENTERPRISE DR PARK WEST PLAZA
SOUTHLAKE MEDICAL OFFICES 404 KELLER PKWY
7105 GOLF CLUB DR PAD SITE
3665 WESTERN CENTER BLVD FOSSIL CREEK STATION
1750 KELLER PKWY
BEAR CREEK SE OF 8821 DAVIS BLVD OFFICE PARK GOLDEN TRIANGLE THE PONDS BLVD AND OLD DENTON RD
DATA SOURCE: XCELIGENT INC., A COMMERCIAL REAL ESTATE RESEARCH FIRM IN PARTNERSHIP WITH NTCAR
460 E JONES ST
FREEPORT COMMONS HERITAGE OFFICE PARK PHASE II
THE APEX AT LAS COLINAS CROSSING
ADVENT PARC BLDG 2
AIRPORT 161 HQ CENTER
7114 MID CITIES BLVD
AMERICAN AIRLINES THE OFFICES @ HAMPDEN WOODS 2901 WINGATE ST
EXPEDITION PLAZA 9701-9703 WHITE SETTLEMENT RD
FROST TOWER FORT WORTH
D. R. HORTON HEADQUARTERS
OVERTON TOWER III 1200 6TH AVE
NEAR SOUTHSIDE MERCANTILE BLDG 2
CLEARFORK PHASE I
3001 BRYANT IRVIN RD
701 SECRETARY DR
THE GARDENS AT TOWN CENTER
111 LARSON LN
4015 W I-20 6940 HARRIS PKWY MATLOCK PROFESSIONAL OFFICE PARK
SUMMER CREEK STATION GARDEN OFFICE
2909 TURNER WARNELL RD
HULEN VILLAGE OFFICE
CANNON PROFESSIONAL PLAZA HIGHPOINT COMMONS
THE ATRIUM REGENCY STATION
PIONEER NATURAL RESOURCES
SIZE: 1.125 million square feet DEVELOPER: KDS DETAILS: The new corporate headquarters campus will include a 10-story office tower as part of its new $100 million campus in the first phase at Verizon’s new Hidden Ridge development. Dallas-based KDC is the developer for the campus that could total 1.125 million square feet of space. Dallas’ Austin Commercial is the general contractor, while Duda Paine Architects is the design firm, and Dallas-based HKS is the architect. Completion is slated for winter 2019.
VICTORY AT FRONTIER BLDG. 4
GARDENIA VILLAGE OFFICE PARK
2020 E MELISSA RD BUILDING 1
THE FORUM AT PROSPER WEST
COBB FARM WEST OFFICE PARK
VICTORY AT STONEBRIDGE
6579 VIRGINIA PKWY SUMMIT PARK II
NE OF ELDORADO PKWY AND TEEL PKWY
TOWER AT FRISCO SQUARE FRISCO SQUARE
4645 WYNDHAM LN
3900 S STONEBRIDGE DR WESSEX@ ALMA ROAD 5001 COLLIN MCKINNEY PKWY
STEWART CREEK OFFICE CENTER I
ONE FOUNTAIN COURT
STONEBROOK BUSINESS PARK THE GATE
PRESTON @ WADE CROSSING
NW OF WARREN PKWY & DALLAS NORTH TOLLWAY
PRESTON WATTERS CREEK BEND ONE OFFICE PARK
STONEBRIAR COMMONS ON LEGACY SANYO ENERGY HEADQUARTERS CENTRE AT THE COLONY THE REALM
INTERNATIONAL BUSINESS PARK INTERNATIONAL BUSINESS PARK 190
VISTA RIDGE ROCKBROOK
NORTH DALLAS MEDICAL CENTER II
RED HAWK OFFICE VILLAGE 2 MAIN STREET COPPELL
WATCHGUARD VIDEO CORPORATE CENTER FOUR ALLEN PLACE ANGEL FIELD CENTER WATTERS CREEK AT MONTGOMERY FARM
LEGACY BUSINESS PARK LAKES OF TENNYSON PROFESSIONAL LEGACY CENTRAL 5 LEGACY III WINDHAVEN PLACE ONE DEXTER PROFESSIONAL NW OF W FM 544 & N MURPHY RD
AMERICAN AIRLINES GROUP
CROWN CENTRE 4101 HIGHWAY 121 BYPASS BLVD
SIZE: 1.8 million square feet DEVELOPER: Crescent Real Estate Holdings DETAILS: The airline giant has begun construction on a new headquarters complex on its nearly 300-acre Fort Worth corporate campus. The site is west of Texas 360, between Texas 183 and Trinity Boulevard. Renowned architect Cesar Pelli is working on the project through his firm Pelli Clarke Pelli Architects.
1840 LAKE FOREST BLVD
3400 @ CITYLINE PALISADES CENTRAL
MURPHY MEDICAL OFFICES CAMPBELL CROSSING OFFICE PARK
399 MELROSE DR FOURTEEN555
9797 ROMBAUER RD 3000 OLYMPUS BLVD THREE HICKORY CENTRE
FOUR GALLERIA TOWER
ROCKWALL COMMONS PHASE II
PARK TOWER AT DALLAS MIDTOWN OFFICE
ROYAL TOWER PINNACLE TOWER II 5400 WHITE TEXAS MUSIC HALL ST FACTORY HIDDEN RIDGE
TOWER AT PRESTON HOLLOW VILLAGE
PARK CITIES PLAZA
THE TERRACES 4401 W LOVERS LN
RIDGEMARK OFFICE BUILDING NWC OF DALROCK RD AND I-30
FOUR ENERGY SQUARE 4437 BUENA VISTA ST 2505, 2727, & 3001 TURTLE CREEK BLVD PARK DISTRICT TOWER TWO ARTS PLAZA
WEST LOVE VICTORY CENTER TWO VICTORY PARK THE UNION
DAVIS STREET MARKET
SPRINGFIELD PROFESSIONAL CONDOS - PHASE II
SOLA ON LAMAR
324 & 336 W JEFFERSON BLVD
SUNNYVALE PROFESSIONAL PLAZA 207 S FM 548
SIZE: 240,000 square feet DEVELOPER: Cawley Partners DETAILS: Construction has started on the first phase of the two-building project on the Dallas North Tollway. The six-story office building is on the west side of the tollway north of Spring Valley Lane. BOKA Powell is the architect, and Hill & Wilkinson is general contractor.
THE CRANE REPORT: INTERACTIVE VERSION
online at dfwrealestatereview.com
UNDER CONSTRUCTION MIDTOWNE
AMERISOURCEBERGEN SPECIALTY GROUP
SIZE: 300,000 square feet DETAILS: Construction has begun on the $113 million, 40-acre campus for Amerisourcebergen Specialty Group. It will have enough room to add more than 1,000 employees. They plan to relocate the regional office to the Offices at Austin Ranch near Parker Road and Plano Parkway in Carrollton. AmerisourceBergen signed a 12.5-year lease with Billingsley for the 300,000-square-foot, build-to-suit campus.
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 1 9
US 380 BUSINESS PARK WEST GATE BUSINESS PARK
THE CRANE REPORT:
MA OAK HILL BUS PARK
5075 TIM DONALD RD BLDG 3
ANNOUNCED + UNDER CONSTRUCTION
GATEWAY BUSINESS PARK
SPEEDWAY DISTRIBUTION CENTER
TRAMMELL CROW @ 35-EAGLE
ALLIANCE CENTER NORTH 15
12500 WILLOW SPRINGS RD
SIZE: 194,000 square feet DEVELOPER: DCT Industrial DETAILS: DCT Industrial bought 13 acres east of Enchanted Way and Bass Pro Drive in Grapevine to develop a two-building, 194,000-square-foot industrial park. Pross Design Group of Dallas designed both buildings, one 110,000 square feet and the other an 84,000-square-foot facility.
12801 HARMON RD
1005 CHISOLM TRL
5761 PARK VISTA CIR
RAILHEAD INDUSTRIAL PARK
35/820 @ MERCANTILE
PARKER PRODUCTION FACILITY 901 S CHERRY LN
PHASE I - BLDGS I & 2 @ COLLEYVILLE BLVD
PARC NORTH BLDG 5
1815 RELIANCE PKW
4000 STATE 157 HWY
1009 NE 11TH ST
360 GLOB LOGISTIC PARK LAN 2809 SHAMROCK AVE
1431 S CHERRY LN
2317 W ARKANSAS LN
NW OF TECH CENTRE PKWY & GAMBREL RD
SIZE: 130,000 square feet DETAILS: Truck maker PACCAR Inc. will build a new manufacturing facility for its Dynacraft division in McKinney. The new 130,000-square-foot facility will be at Wilmeth Road and Redbud Boulevard. The company designs and builds trucks under the Kenworth, Peterbilt, and DAF nameplates. The facility is expected to bring 200 new jobs to the city in the next six years. Hill & Wilkinson of Richardson is the design-build firm working on the project.
ARLINGTON LOGISTIC CENTER
SIZE: 1.2 million square feet DEVELOPER: NP Arlington Industrial LLC DETAILS: The site is the former Six Flags Mall in Arlington, and it will house a major expansion of the General Motors operation in the city. The site will consist of two warehouses to be leased by General Motors. The facility will house a number of automotive suppliers that service the Arlington Assembly Plant operated by General Motors. The project, at the northeast corner of Texas 360 and East Division Street, is expected to be completed by December 2018.
2 0 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
4925 SUN VALLEY DR
● ANNOUNCED ● UNDER CONSTRUCTION
SOUTH CENTRAL DISTRIBUTION CENTER II
8600 WILL ROGERS BLVD
KENNEDALE PKWY F
1102 ENTERPRISE PL
350 GARDEN ACRES DR BLDG B
THE CRANE REPORT: INTERACTIVE VERSION
619 S WISTERIA ST
online at dfwrealestatereview.com SW OF E FM 917 AND LONGHORN DR
121 RIVERVIEW CROSSING
SIZE: 121,000 square feet DEVELOPER: ML Realty Partners DETAILS: This 121,000-square-foot facility in Lewisville will front Texas 121 Business. The building will be available for occupancy in spring of 2018. Dan Spika of Henry S. Miller is leasing agent for the facility.
PROSPER BUSINESS PARK
2211-2241 REDBUD BLVD
ARKET STREET INDUSTRIAL PARK
COBB BUSINESS PARK
THE TECH CENTER ON GREENVILLE LEWISVILLE CORPORATE CENTER
NW OF HILLSIDE DR & N MILL ST
INTELLIGENT EPITAXY TECHNOLOGY, INC
STREAM DATA CENTERS
SIZE: 145,000 square feet DEVELOPER: Stream Data Centers DETAILS: Stream is building a ground-up 145,000-square-foot data center on 16 acres within Legacy Business Park in Plano. Completion is slated for October.
4814 DOZIER RD PLANO TECH CENTER 8
AKESIDE RIDGE II
FRISCO PARK 25
PLANO COMMERCE PARK SITE A
MAJESTIC AIRPORT CENTER DFW
OGIS PARK 121
MAIN STREET COPPELL FREEPORT NORTH
PROLOGIS VALWOOD CORPORATE CENTER
COTTON RIDGE BUSINESS PARK
ROYAL TECH 18 PARC 114 DFW EAST LOGISTICS CENTER
JUPITER MILLER BUSINESS CENTER JUPITER MILLER BUSINESS CENTER NORTHGATE GARLAND LOGISTICS DIST CENTER CENTER BLDG
4.93 ACRES N STEMMONS FWY
DFW/161 DISTRIBUTION CENTER 300 9749 CLIFFORD BEAR CREEK CORPORATE CENTER
MESQUITE INDUSTRIAL BUSINESS PARK
LIBERTY PARK GSW NORTH BLDG 1
2909 W OAKDALE RD
WILDLIFE COMMERCE PARK
BAL CS ND
PROPOSED UPS EXPANSION SKYLINE DISTRIBUTION CENTER
GRAND LAKES 4003 EXPANSION
DCT MIDPOINT DISTRIBUTION CENTER
SOUTHWEST DISTRIBUTION CENTER LIBERTY PARK MOUNTAIN CREEK
RK 20/360 FIRST MOUNTAIN CREEK DISTRIBUTION CENTER
SOUTHFIELD PARK 35
PLANNED POINTSOUTH LOGISTICS & COMMERCE CENTRE SOUTHPOINTE 20/35 LOGISTICENTER AT DALLAS
1600 W WINTERGREEN RD SUNRIDGE BUSINESS PARK LOT 10
I 35 LOGISTICS CROSSING
SOUTHPORT TRADE CENTER DALPORT TRADE CENTER 6
SIZE: 1.6 million square feet DEVELOPER: Trammell Crow Co. and PGIM Real Estate DETAILS: The next phase of the 35-Eagle industrial park in North Fort Worth has begun, bringing 1.6 million square feet of industrial space. At build-out, this 106-acre phase will include three buildings: A roughly 1.1 millionsquare-foot warehouse, a 312,654-squarefoot warehouse, and a 233,961-square-foot warehouse at the northwest corner of I-35W and Eagle Parkway. They are slated for completion in late 2017.
DALPORT TRADE CENTER DFW INLAND PORT I
NW OF E OVILLA RD & N CENTRAL BLVD
DATA SOURCE: XCELIGENT INC., A COMMERCIAL REAL ESTATE RESEARCH FIRM IN PARTNERSHIP WITH NTCAR
HIAN BUSINESS PARK
I-35 LOGISTICS CROSSING
SIZE: 1.2 million square feet DEVELOPER: Crow Holdings Capital-Real Estate DETAILS: The new twobuilding industrial park near Interstate 35E and Interstate 20 in southern Dallas County will include two 610,806-square-foot cross dock facilities at the northwest corner of Houston School and Wintergreen roads in Lancaster.
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 2 1
WOODLANDS APARTMENTS I
THE CRANE REPORT:
ANNOUNCED + UNDER CONSTRUCTION
DISTRICT O HIGHLAND VILL
ANNOUNCED DEVELOPMENTS 1
HILLSTON RIVER WA
● ANNOUNCED ● UNDER CONSTRUCTION
THE DRAKE AT WHITE ROCK
UNITS: 100 DEVELOPER: NBKW Partners LLC DETAILS: The Dallas-based development group is planning a new seven-story condominium residence that will bring up to 100 new single-family homes to the White Rock Lake neighborhood. Project designer is Dallas-based GDA Architects.
THE CRANE REPORT: INTERACTIVE VERSION
online at dfwrealestatereview.com
SAGEWOOD VILLAGE VERA PRESIDIO DOLCE LIVING HOME TOWN
MERRITT STREET APARTMENTS
THE KELLEY AT SAMUELS AVENUE THE SCENIC AT RIVER EAST I FORT201 AT THE FOUNDRY
ELAN AT RIVER DISTRICT ALEXAN SUMMIT THE MONARCH RIVERVUE
HILLS AT CENT
ARLINGTON COMMONS PH I
THE FLATS AT ALTA LEFTBANK BROWNSTONE 5TH AND SUMMIT 250 LANCASTER MAGNOLIA
COLUMBIA AT RENAISSANCE SQUARE
UNITS: 300 DEVELOPER: Palladium USA DETAILS: The 29-story, $100 million luxury residential tower is within Plano’s $3.2 billion Legacy West mixed-use development. The new residential development is called LVL29 and will sit at 6000 Columbus Ave. near Windrose Avenue, adjacent to Liberty Mutual’s new regional hub. Project architect is Dallasbased Humphreys & Partners Urban Architecture LP.
THE MAIN STREET LOFTS I
DATA SOURCE: AXIOMETRICS INC.
UNITS: 160 DEVELOPER: Jerry Jones, Roger Staubach, and Robert Shaw DETAILS: The 17-story condo tower will have 160 units with an average size of 1,200 square feet. It will be the first high-rise building in Frisco. Construction is expected to begin in January 2018, with first move-ins scheduled for the first quarter of 2019.
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
REGALIA MANSFIELD II
ADARA WINDSONG RANCH
SOVEREIGN PRESTON RD ASCEND AT WESTRIDGE
THE LUXE 3EIGHTY
PALLADIUM LITTLE ELM APARTMENTS
PDG FRISCO WATERFORD AT FRISCO PH I
PARKVIEW APARTMENTS MAXWELL ARTISTRY AT PCR
RAVELLO STONEBRIAR LVL29
CENTRAL PARK AT CRAIG RANCH PH I TWIN CREEKS CROSSING II DOLCE LIVING TWIN CREEKS PH I
THE RESIDENCES THE HUDSON AT AT LEGACY AUSTIN RANCH
DISCOVERY AT THE REALM
BREEZEWAY FARMS ADDITION AVILLA PREMIER PLACE
BROADSTONE CITYLINE PARK EVOKE APARTMENTS
SLOANE STREET ON PARK
SIZE: 286 units DEVELOPER: JPI DETAILS: The Irving-based developer has broken ground on the Class A apartment complex near the soon-to-open Irving Music Factory. The project is on Carolyn Drive and it is expected to deliver in fall 2018. It will be within walking distance of the Irving Convention Center DART station.
THE MANSIONS OF MCKINNEY
COMMONS OF CHAPEL CREEK ECHELON AT THE SUMMIT VERUS HUNTINGTON APARTMENTS
DAVIS ST AND MCDONALD ST
SOUTHERN LAND CO DEVELOPMENT
THE PARC AT WYLIE PARK AT GATEWAY HEIGHTS AT JEFFERSON WOODS I CAMPFIRE TRINITY MILLS THE FLATS AT CROSSING VILLAGE TOWERS ALTA PALISADES IMT AT SPRING MANSIONS AT SPRING CREEK PRESTONWOOD CREEK JEFFERSON THE MALLORY LANDMARK AURA 5515 EASTSIDE I
HEBRON 121 STATION IV GRAPEVINE BLUFFS THE SWITCHYARD THE SOUND
WATERWALK LAS COLINAS
5 GABLES WATER STREET
MODERA NEAR THE GALLERIA JPI MERCER CROSSING I RIVERSIDE PARK APARTMENTS CREST AT LAS COLINAS STATION APARTMENTS
CREST AT PARK CENTRAL II
VILLAGE OF ROWLETT
VALENCIA AT MIDTOWN HANOVER THE ROYAL MIDTOWN PARK LAKE HIGHLANDS TOWN CENTER THE PRESTON
THE LAUREL THE ATWOOD
PARC AT GARLAND
RESERVE ON ABRAMS THE ASH AT THE BRANCH
DOMAIN AT BLUFF VIEW
UNITS: 353 DEVELOPERS: Embrey Partners DETAILS: Work is underway on the Class A multifamily community on 10 acres on Kelley at Samuels Avenue in Fort Worth JEFFERSON WEST LOVE
THE DOMAIN AT FIREWHEEL
ALEXAN KATY TRAIL
THE MCKENZIE B & F FLATS THE KATY ALEXAN LOWER GREENVILLE MODERA TURTLE CREEK APARTMENTS AT M STREETS ENCORE SWISS AVENUE
ALTA STRAND THE RESIDENCES AT PARK DISTRICT THE CHRISTOPHER
THE CASE BUILDING
THE AUSTIN AT TRINITY GREEN I EPIC
THE ENCLAVE AT MIRA LAGOS II
MAGNOLIA AT ZANG THE COLORADO PLACE
CRESCENT BISHOP ARTS BISHOP HIGHLINE
UNDER CONSTRUCTION 4
UNIT: 225 DEVELOPER: Buckner Senior Living DETAILS: The $136 million, D2 Architecturedesigned, two-tower seniors residential development is being constructed across from NorthPark Center mall at the southwest corner of U.S. Highway 75 and Northwest Highway. The buildings will contain more than 225 independent and assisted-living apartments, as well as memory care, skilled nursing and rehabilitation facilities. Itâ€™s scheduled to open in mid-2019. General contractor is Whiting-Turner.
UNITS: 234 DEVELOPER: Stoneleigh Co. LLC and Realty Capital Management DETAILS: Construction is underway at the northeast corner of IH 35 and Belt Line Road, at 1199 North Broadway St., adjacent to a DART rail station. The development will feature luxury one- and two-bedroom apartments in a four-story building in sizes ranging from 525 to 1,262 square feet. First move-ins are expected in late spring or early summer 2018.
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
INTRODUCING A NEW URBAN EXPERIENCE. ROSS AVENUE REINVENTED.
FOR MORE INFORMATION, CONTACT: Ramsey March, Sara Terry, or Scott Sowanick at 214.267.0400 TRAMMELLCROWCENTER.COM
STREAM ENERGY MOVED ITS HEADQUARTERS AT CAWLEY PARTNERS’ BRAND-NEW TOLLWAY CENTER IN DALLAS.
The overall markets for office and industrial leases remain strong in the Dallas-Fort Worth area. Companies continued to move to Dallas-Fort Worth, many seeking amenity-rich buildings in prime locations. The retail sector saw several large lease deals throughout the area. Here, we examine the top five office, industrial, and retail leases in the past three months throughout North Texas. As always, data is provide by Xceligent Inc. BY LANCE MURRAY
ON-THE-GRO U N D I N S I G H TS
Executive Vice President JLL
“Companies are looking for efficient, economically sound commercial real estate solutions with the desired amenities in the right location. They want access to targeted labor pools, and flexibility to maximize workspace layout and give them opportunities for long-term growth.”
“Activity in the first half of 2017 has been strong. We felt an immediate uptick in activity at the start of the year, and it has not let up. North Texas remains at the center of relocation opportunities, and established companies continue to view Dallas as a priority expansion market.”
“Proximity to quality labor is a major factor in final distribution center selection, as many of the modernday distribution centers contain more fulfillment and require much more labor. For e-commerce, the employees’ accuracy in completing orders can directly affect the company/customer relationship.”
“Retail occupancy should continue to increase due to the population and employment growth in DFW. With the limited vacancy and the high cost to deliver new space, rents should remain strong. Grocers and restaurants are driving most of the new retail development.”
Managing Director, Cushman & Wakefield
Co-managing Principal, Lee Associates
Managing principal, Coldwell Banker Commercial Advisors
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
2 5 4
0-10,537 SF 10,53847,406 SF 47,407152,058 SF 152,059327,183 SF 327,184750,000 SF
LARGEST OFFICE LEASES
SIZE: 222,000 square feet TENANT REPS: Comerica’s Michael Venetis and CBRE’s Phil Puckett, John Woolsey, Harlan Davis, and Jamie Dingeman LEASING AGENTS: Ken Moczulski, Joel McCarty and Mike Silliman of Landlord M-M Properties DETAILS: Comerica extended its lease at its namesake tower at 1717 Main St. in downtown Dallas. The financial services company renewed through September 2028.
SIZE: 152,000 square feet DETAILS: The giant Japanese IT company signed a 10-year lease for an additional 25,000 square feet at the 14-story One Legacy West, bringing its total footprint in the building to 152,000 square feet.
SIZE: 104,000 square feet TENANT REPS: CBRE’s Phil Puckett and Harlan Davis LEASING AGENTS: Ramsey March, Sara Terry, and Scott Sowanick of Stream DETAILS: The Baker Botts law firm renewed its 104,000 square feet of office space at Trammell Crow Center at 2001 Ross Ave. in Downtown Dallas. Baker Botts will rebuild its entire space.
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
SIZE: 88,084 square feet TENANT REPS: Colliers’ Daniel Rudd and Billy Vahrenkamp LEASING AGENTS: Shannon Brown and Celeste Fowden of CBRE. DETAILS: The data-driven marketing firm with head offices in St. Louis and Dallas is leasing 88,084 square feet of space on four floors of the Three Galleria Tower.
SIZE: 55,000 square feet TENANT REPS: LEASING AGENTS: DETAILS: The energy provider moved its headquarters from the Infomart building in Dallas into Cawley Partners’ brand-new Tollway Center at 14675 Dallas Parkway in Dallas. The building is Stream’s Class A headquarters and was designed by Corgan.
4 3 2
14,00131,680 SF 31,68170,000 SF 70,001152,946 SF
DATA SOURCE: XCELIGENT INC., A COMMERCIAL REAL ESTATE RESEARCH FIRM IN PARTNERSHIP WITH NTCAR
SIZE: 27,000 LEASING AGENTS: Todd Hawpe and Jeff Givens of Transwestern DETAILS: Xchange Leasing, a leasing option aimed at Uber drivers, signed a new lease for 27,000 square feet of retail space at 2301 Southeast Loop 820 in Fort Worth with Cidema Three.
SIZE: 13,000 square feet TENANT REPS: David English of Ridge Pointe Real Estate LEASING AGENT: Scott Rose of Structure Commercial DETAILS: Redline Athletics, a youth athletic training company, leased 13,000 square feet of retail space at 3178 Lavon in Garland. SUMMER 2017
LARGEST RETAIL LEASES NATURAL GROCERS KELLER
SIZE: 15,000 square feet TENANT REPS: Clay Mote and Tim Henson of Venture Commercial Real Estate DETAILS: The Keller location for the grocer will be on a 1.5-acre site at the northeast corner of Keller Smithfield Road and FM 1709/Keller Parkway.
NATURAL GROCERS FORT WORTH
SIZE: 15,000 square feet TENANT REPS: Clay Mote and Tim Henson of Venture Commercial Real Estate DETAILS: The new retail locations will open in the fall of 2017. This location is a 2-acre site at 5210 North Tarrant Parkway east of Park Vista Boulevard in Fort Worth.
SIZE: 10,500 square feet TENANT REP: LEASING REP: The Woodmont Company DETAILS: The furniture and home furnishings retail chain operated by Williams-Sonoma has leased 10,500 square feet of space to locate a store at 2868 W. 7th St. at Currie St. in Fort Worth.
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
INDUSTRIAL LEASES 3 4 2 5
39,001160,272 SF 160,273492,500 SF 492,5011,440,000 SF 1,440,0013,018,708 SF
DATA SOURCE: XCELIGENT INC., A COMMERCIAL REAL ESTATE RESEARCH FIRM IN PARTNERSHIP WITH NTCAR
LARGEST INDUSTRIAL LEASES
SIZE: 1.011 million square feet TENANT REP: CBRE’s Ann Huntington LEASING AGENTS: MEPT Gateway/Pinnacle Park LP DETAILS: Geodis Logistics renewed its lease for 394,000 square feet, and expanded by 617,000 square feet at 3700 Pinnacle Park Blvd. in Dallas.
KRAFT HEINZ CO.
SIZE: 358,000 square feet TENANT REPS: Cushman & Wakefield’s Stuart Smith LEASING AGENT: CBRE’s Steve Trese and Wilson Brown DETAILS: Alpha Broder renewed its lease for 358,000 square feet of space at 1040 Trade Ave. in Dallas. The landlord is GPT Trade Avenue.
SIZE: 260,959 square feet TENANT REP: David Sours of CBRE LEASING REP: Kevin Kelly of CBRE for Westmount Realty DETAILS: The global food and beverage company signed a lease for 260,959 square feet of industrial space for a new distribution hub in Garland’s Logistics Pointe Garland complex at 2600 McCree Road.
SIZE: 493,000 square feet TENANT REPS: Cushman & Wakefield’s Mark Collins, Dean Collins and Britt Casey LEASING AGENTS: Trey Fricke, Reid Bassinger, and Becky Thompson of Lee & Associates DETAILS: S&S Activewear leased 493,000-square feet at 35/820 @ Mercantile Center, where it plans to open its new fulfillment center by the end of 2017. The 657,000-square-foot warehouse and distribution building was developed on a speculative basis by Hunt Southwest.
2 8 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
SIZE: 175,000 square feet TENANT REPS: Gary Collett and Jean Russo of Cushman & Wakefield LEASING AGENTS: Cannon Green and Luke Davis of Stream Realty DETAILS: Jeld-Wen, one of the world’s biggest window and door manufacturers, renewed its lease at Main Street Distribution Center at 2510 West Main St. in Grand Prairie.
“ Through TREC, I am able to contribute to my industry and my community in a meaningful way.
Sarah Hinkley PELOTON COMMERCIAL REAL ESTATE
Imagine. Empower. Impact.
Join TREC and build the city you’ve imagined. Mid-year pricing for membership available starting July 1. RECOUNCIL.COM
214 692 3600
3100 McKinnon Street NO. 1150, Dallas, Texas 75201
TALKING SHOP A S T H E R E TA I L W O R L D R E I N V E N T S I T S E L F, I N D U S T R Y E X P E R T S E VA L U A T E T H E P R E S E N T A N D L O O K A H E A D T O T H E F U T U R E BY L ANCE MURR AY
PHOTO: CHASE MARDIS
3 0 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
R ROUNDTABLE Many North Texans like to shop, and most of us like to eat out at a local restaurant. There’s strong demand for retail space in Dallas-Fort Worth with grocery stores, restaurants, big box, and mixedused developments driving much of the new retail space. Is there enough supply to meet the demand? What’s the future of malls? We brought together six of the top retail minds in North Texas — Tom Salanty, Jennifer Frank, Alan Shor, Frank Mihalopolous, Herb Weitzman, and Mike Geisler — to talk about Dallas-Fort Worth retail real estate in a discussion at the Amenity Lounge conference room at St. Paul Place in Dallas. LANCE MURRAY: Let’s begin with your assessment of the state of the retail market in Dallas-Fort Worth in the past 12 months. TOM SALANTY: It’s oversupplied in some cases. The easiest way to put it into perspective is that we had a lot of land around here. Thankfully, we had a lot of population growth, too. We’ve been able to keep up with the new demand [and] the new supply that’s been built. We’ve been able to backfill some of the things that didn’t make it. We have around 50 to 60 square feet per capita. ... If you include all the Walmart stores and everything else, it isn’t necessarily in the data. If you compare that to Europe and other areas, it’s 25 [square feet per capita], so there’s a lot of supply. There are winners and losers. JENNIFER FRANK: Being on the tenant side, I see kind of the opposite. The supply — especially for restaurant and smaller shop space — is really tight and very competitive. Rents are increasing to levels I’ve never thought I would see in Dallas-Fort Worth. On the box side, there’s a lot of repositioning — major boxes getting right sized. There are tenants coming behind to backfill some of those larger boxes. It seems pretty healthy to me. Where those boxes are the larger grocery stores that are repositioning or moving, there seems to be a good supply of discounters that are coming in to take those over. ALAN SHOR: We’re very fortunate to be in DFW. Dallas-Fort Worth is a market that’s unlike most markets around the country. When you’ve got a city or [region] that’s No. 1 in job growth and top three in population growth — along with the corporate relocations that have happened here — it puts some stress on the available real estate. But, from our perspective, the retail real estate space is strong. We know there’ll be some boxes coming back, and I think those boxes will get redeployed, both in retail and nonretail use. The bottom line is, if you can pick a market to be in, this would be it. FRANK MIHALOPOULOS: Our market has been very active. It’s active in multiple ways. We’ve got the mixed-use projects that are going on that are record-setting, like in Collin County and Legacy West — the whole Frisco corridor, which is unheard of — to the corporate relocations that have happened in the last year and are opening up. It’s been a game-changer.
Dallas-Fort Worth has become one of the leading corporate cities in the world. You see the Toyotas and Liberty Mutuals and others that have come in here. Jacobs Engineering and other firms — they’re picking Dallas. But from the retail perspective, you have retail that’s changing. The big boxes — those rents are probably leveling off or going down. You’re giving rent to make deals work, yet the expenses are higher, and everything is being made on the pads. Everything is small strip centers. The restaurants, there are not enough of them. There’s a proliferation of small strips that are getting built. The rents that used to be $30 and [then] $40 are approaching $50 for some of these small strip centers. The users are now going smaller. They’re going with less space, more efficient space: “How can I use the patio for half my seating in the restaurant side?” The big restaurants aren’t as strong as they used to come in. The mega restaurants are all mini restaurants. If you look at some of the projects [now], they’re 2,000 to 3,000 square feet. ... I’ve got to make enough money to make it work. We’re lucky to be here, but at the same time, the cost of doing business in DallasFort Worth — between land prices and the cost of construction — is getting to a point where it’s difficult sometimes to get deals done. ... We’re doing a lot out of town for that reason. HERB WEITZMAN: Retail is always parasitic to something and reacts to something that’s external — sometimes overbuilding, sometimes interest rates. ... We went from building a lot of centers over the years to hardly building any. What was built was demand based. It was basically built for the grocers and discount stores. They own the stores, and we went down to a million, million-and-a-half feet. Right now, we’re 93 percent occupied, which is the highest since 1981. Retail reacts to overbuilding, and we’re not seeing that. And other categories react to overbuilding as well. We expect that the markets will remain strong and stable for the foreseeable future. MIKE GEISLER: I kind of echo what Jennifer says. It’s a very healthy market. Retail has major things influencing it that it’s reacting to, but it’s reacting to it very quickly and pretty positively. In my career, we’ve never had as little vacancy — which
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 3 1
R ROUNDTABLE is our challenge. It’s finding enough space. There’s a lot of restraint in building new real estate retail. It’s kept our market very healthy.
SHOR: We’re going to see more repurposing for the reasons stated earlier. You have construction costs continuing to rise at an unsustainable rate. You’ve got fewer retailers growing. And those that are growing are putting more pressure on rent. You’ve got dark boxes coming back, you’ve got e-commerce. We’ve been a pretty active ground-up developer. I’m telling our guys that development is going to get quiet for a while — let’s find things we can buy and repurpose. With the dark space that will come back — particularly department stores that will get divided up and re-tenanted — we’re seeing that’s going to be the trend for a while. MIHALOPOULOS: There are only a handful — less than a handful — of big projects going on with the big boxes. They’re in Grand Prairie and north Fort Worth, but there aren’t many mega centers being built. What is being built is mixed-use, so the retail that’s being built is ancillary to another job center or something else that’s coming in and generating the traffic. What is being built is the small strip centers. It
PHOTO: MICHAEL SAMPLES
Where do we see good retail activity in DFW? Are we seeing substantial new builds, or are we seeing more repurposing of properties?
reminds me somewhat of the 1980s because unanchored strip centers were probably what most of the FDIC RTC properties were. There were a lot of folks building centers that hadn’t done them before. [Like the ’80s], some are running with a small tenant. Just as you get involved in the business, and you’re a broker/tenant rep — next thing you know, you’re building ten little strip centers for your tenants, and you’re speculating. It will be interesting to see in the next 12 months how much of that gets done — or what’s left and where it is. ... If we start compromising principles, you will have some issues. Fast-casual restaurant growth has created a big demand for some of this space. And, a center today is not just your shopping center with a big parking lot — there’s a hotel in it, there’s going to be an office building, there’s a retail center mixed in the ground floor of a hospital. WEITZMAN: I will speak to new centers. Of course, Plano is on fire because of the corporate relocations and the population growth. Those projects [are] unique,
Jennifer Franks is principal at Segovia Retail Group, and has more than 20 years of experience in commercial real estate leasing and development. Her specialty is tenant representation throughout Texas, Arkansas, Louisiana, and Oklahoma. Her clients include IKEA, Ulta Cosmetics, Bath and Body Works, and rue21.
Mike Geisler is founding principal and managing partner at Venture Commercial Real Estate, which he co-founded in 2000 with longtime business colleague and friend, Kenneth Reimer. Geisler has spent more than 30 years as a real estate broker and 20 years leasing specialty and lifestyle centers.
Frank Mihalopoulos is the owner of Corinth Properties and has more than 37 years of experience in real estate investments and development of commercial retail and office properties. He has developments throughout the country, and is a graduate of Southern Methodist University.
3 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
[among] the very few in the United States that big being built. The mall business is contracting very, very fast. Even in Dallas, we’ve lost half the malls — either they’re closed, or they’re in foreclosure. The good operating malls ... we were at 26, and now we’re down to 13. In the non-mall projects, primarily community centers and power centers, we’re actively leasing. 25 are under construction around the state now, and probably another eight where there are very active anchor leases being made for new centers. That part of the business is just excellent; however, you’ve got to be at the right location. And the numbers have to prove out. That sector of the business is the best place to be in today. I don’t know if you need to lose any sleep over that type of retail being in harm’s way of e-commerce. It competes very well. FRANK: There’s a lot of repurposing of malls. For example, the Midtown project, which is the former Valley View Mall, is being repurposed into a mixed-use
development. It’s owned by three separate entities, and they’re planning a high densification for office, some retail, and a wellness component. Ridgmar Mall in Fort Worth is bringing in a big aquarium and an indoor go-cart track. It’s [for] entertainment and the “active lifestyle” that they’re repurposing some of these malls. The Starwood Mall in Plano at Willowbend has taken the former Lord and Taylor space and turned it into about six restaurants. They’re working on a theater deal, as well as a hotel. ... We will see a lot more of that as these boxes continue to shut down.
PHOTOS: CHASE MARDIS
Tom Salanty is managing director at JLL in Dallas, having joined the firm in 2016. He has more than three decades of experience in the commercial real estate sector, particularly in the sales of shopping centers.
Alan Shor is a co-founder of The Retail Connection LP, and serves as its president and co-chairman of the board. He is involved in TRC’s strategic direction, and he oversees the day-to-day operations of the company. Shor leads TRC’s investment and merchant banking business.
Herb Weitzman is executive chairman of the Weitzman Group, which he founded in 1990. It is a full-service real estate brokerage firm with the largest retail real estate brokerage force in Texas and one of the largest regional commercial estate firms in the nation. It ranks among the top 50 shopping center management firms in the country.
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 3 3
R ROUNDTABLE You hear some gloom and doom in the news about the future of malls, in not only this area but around the country. What do you think about the future of malls?
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
PHOTO: MICHAEL SAMPLES
SALANTY: Absolutely there’s a future for malls. WEITZMAN: Malls are classified “A,” “B,” and “C.” Class A malls are doing probably $550, $600 a foot or better. They’re doing very well. ... “C” malls are $300 to $450, and “B” malls are around $450 to $550. Most of these malls have to be upgraded, and it takes a lot of capital. There’s been a polarization of ownership with the public REITs, and they own most of the good malls. Tom (Salanty) sells a lot of malls in the “B” and “C” category, and they’re like a drug on the market today. In other words, if you’re growing your sales and you put money into it, and you have a good location, you’ve got a good opportunity of doing well — increasing sales, getting tenants, and growing it. But if you’ve got a crowded area with malls that overlap each other in sales, e-commerce is hurting the chain businesses that are in malls. You see it from the top down. Department stores are getting hit, and they’re having a tough time competing on sales. Their sales are dropping across the board. There are a few winners, like Nordstrom. Even as well as J.C. Penney is operating with the level of leadership they have, they’re struggling. I think they’re going to make it. Fortunately, [former Chief Executive Officer] Ron Johnson went ahead and improved a lot of the stores ... They’re new, and they’re clean, and there’s new leadership changing the merchandising mix. It’s helping their sales. I think they’ll do well, but it’s a struggle for those who are moving too slow. But, there’s this convergence: e-commerce is converging with brick and mortar. It’s happening. ... Amazon has this tremendous cost of shipping, and you see Wal-Mart coming with 63 percent in e-commerce sales last quarter ... They’ve figured it out, and they can distribute out of their 4,700 stores. That’s convenient to the customer. What I read is, [Wal-Mart] has a store within 10 miles of everyone in the United States. They don’t have the shipping costs. ... There’s a convergence, and it’s still working itself through the market. There are going to be winners and losers. SHOR: If you believe the press, the experts say that 25 percent of malls are going to be out of
business in five years — some 250, 260 malls. That’s a tremendous amount of square footage. The mall operators — and you can count them on one hand — the Simons and the GGPs, they’re saying, “Wait a minute, we’re not just going to stand by and watch this happen.” These guys have started investing in retail companies to put into their malls. Simon, particularly, has gotten aggressive with what they believe to be growth retailers. They will put money in them, just like a private equity firm. Other mall operators in the “B” and “C” markets are repurposing malls in a nonretail way: You’ve got government annex offices going into the malls. You’ve got junior colleges and community colleges going in the malls. It’s interesting how the owners on the mall side are reacting to this. They’re not just sitting back and saying, “Let it happen.” They know the department stores are in trouble, but they’re very proactive, and we’re going to see more and more of this in the nonretail and the entertainment spaces where they’re going to be the anchors in the malls. GEISLER: What you will see in weaker communities are call centers, data centers, and government offices. And in [other] communities, most of these malls are in great real estate. I can see Collin Creek being redeveloped and being much more dense and diverse. And I think that’s one thing you can probably see — any of the malls that are at risk in DFW are at pretty outstanding intersections. WEITZMAN: I think the malls are going to fail. I think the numbers are correct. We monitor rents on a monthly basis for about 3,000 tenants, and I see the sales in strips. I was in meetings yesterday, and every center had increased sales, but malls — the “B” malls and “C” malls couldn’t say that. Their sales are dropping. It’s just that the country is over-retailed. When you go lay Amazon on top of an overbuilt mall community, so many people are buying more and more on Amazon and online. I see a lot of failures. I’m not saying they’re not going to be repurposed, but I don’t think they’re going to be retailed. GEISLER: I agree. MIHALOPOULOS: You have to look at the mall as a whole picture, “A,” “B,” “C,” and
PHOTO: MICHAEL SAMPLES
“D” malls. We’ve been playing that field for ten years and living with the REITs and living with the department stores. And we see the “A” malls will stay “A” malls. Those are going to be general growth — your Macerich, your Simons — they’re going to run those malls high end, and keep them going. They’ll always be there. Then there are the “B” malls that are evolving to try to be “A” malls. There’s Tommy Morel who sold The Starwood [Group]. There’s a group of people that have tried to fix those malls, [like] Rouse Company, and the second layer of ownership — Starwood and WP Glimcher. Now it’s going to be Prime again. They’re trying to create the malls and keep them going. Throw in a Dick’s, throw in an H&M, and try to get them to a “B-plus,” “A-minus” mall. Then you’ve got a category of the “C” malls to the “B” malls that are operating. In some cases, they might be the only place in town with nothing around for 200 miles: They will survive. Pueblo, Colorado — or somewhere in the middle of nowhere — that’s the place for 300 miles. In cases where there’s a big mall down the street, even 50 miles away or another city, those are going to suffer. There’s a layer of financing from foreign money that’s buying the “C” malls just to cashflow them. They’re being dumped on the market by the REITs, so they’re buying them at a 12 percent. SALANTY: Special servicers. MIHALOPOULOS: They’re not even paying utility bills sometimes. They’re just trying to grab as much as they can — get their money out as quickly as they can — and then there will be a skeleton left. You have something like ten malls that sold last year in this category. And you hear horror stories where tenants are trying to stay open. So those are going to die. The next level we’re looking at is good location. It’s a dying mall, but it’s a great piece of real estate: Can you repurpose it? We’ve been able to take these and put in medical clinics — we did one of the big ones with Pinnacle Medical Clinic ... 450,000 square feet of retail and 450,000 square feet of offices and medical clinics, and it’s the model of mixeduse in Nashville. The second mall we did [was] in York, Pennsylvania — a small town. There was a purpose for it to be a town center. We opened it up, turned it
LIVE-WORK-PLAY IS GREAT. IF YOU’RE A YOUNG PERSON AND YOU DON’T HAVE A FAMILY YET, YOU’RE GOING TO WANT TO LIVE IN THAT ENVIRONMENT CLOSE TO THAT ACTIVITY. — TOM SALANTY inside out, and put in traditional tenants and the DSWs of the world, Ulta, and Burlington. ... The other case, the one we’re doing in Atlanta, is in a neighborhood that can’t compete with the perimeter malls or the [other nearby centers], so we see it as a mixed-use. We have a Macy’s, a Penney’s, and we’re working with Sears to — hopefully — put them out of their misery. In that case, maybe we get a grocery store to take over that wing. Then we’re working on 300,000 square feet of offices. We can deliver offices $10 to $15 [per square foot] below market rate because you open up the mall and you mix-use it. Now there’s a place to come and entertain and react. [It’s] the whole idea of having a better workplace — with higher ceilings — so it’s a fun place to work. What we’re trying to do is create a different place. WEITZMAN: Have you ever made money on these? Interest rates are picking up, and everybody is getting squeezed from home builders on up. How does it look for the future in the conversion, because it’s awfully expensive? MIHALOPOULOS: We have to buy it right. We’re not buying the specialty income. There are a lot of temporary tenants and specialty tenants in these malls, and that’s where it’s kind of like a drug that keeps going. You can’t pay for that. W e’re buying it for land and building values, and that’s how you can get it fixed. We have participation from public money, we’re tearing down a building, and we open up a park. You’re going to get some incentives. It’s a case-by-case basis. Every property has its own story. The problem is, there are too many malls. There was a dysfunctionality of the big mall developers and the department stores. It started back in the ’70s and ’80s. If you remember: I’m
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 3 5
WE HAVE SEEN PRICES ON LAND GO UP, PARTICULARLY SOUTH OF LBJ. AND IT’S GETTING HARDER AND HARDER TO GET ANYTHING NEW IF IT’S NOT IN A MIXED-USE PROJECT. — HERB WEITZMAN
3 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
PHOTO: MICHAEL SAMPLES
going to build this wonderful mall — but [in the case of a] department store, you’re going to have to take three of my malls, because I am building these other secondary malls around the country. If you want to be here, you are going to do these deals. When a department store meets with a mall owner, it’s a summit; it’s not a meeting. It’s how they’re going to manipulate all their portfolio. That created a lot of the things that shouldn’t even be here today. SHOR: That’s also an opportunity that goes beyond the malls. We just bought a center in Longview, Texas. It’s a center that’s adjacent to the mall there — the only mall there. It’s got a temporary tenants in it. It’s probably 80 percent leased. We bought it right, to Frank’s point. We got it at the right basis. It’s almost like a cash-flowing covered land play. We will cash flow it — cash flow is very healthy — until it’s time to rebuild it. We’re holding. We’re going to hold cash flow. We have a three- to four-year plan to redevelop and rebuild it. In the meantime, the risk is mitigated by the cash flow and the cost basis. Those are going to be the opportunities going forward. SALANTY: I do this around the country. There are 1,300 malls. I think there are 300 to 400 that closed. But I think that what you need to understand is what happened. The department stores’ net worth in ’07 was $85 billion. Today, it’s $26 billion. The off-price retailers’ value in ’07 was $18 billion. Today, it’s $75 billion. That’s market cap. The shift is, in the ’70s and ’80s we built all these malls in population centers. Then you come out with the power centers in the ’90s — most of them late ’90s, ’00 — you might add a
million square feet to a market, and you didn’t add any new people. That’s not true in Dallas. ... We’re growing, so we keep up. We’re unique in the United States. I tell people when I go into a meeting: I live in Dallas, Texas. I live in the best city, in the best state, in the best country in the world. That’s what I tell people, because we have a lot of good things happening here. Today, we are going through another shift. Retailers change the way they merchandise and the way they distribute — that’s what is going to happen. This has happened several times. If you want to look in Dallas at examples that you can understand, the old Prestonwood Mall was a Neiman Marcus-anchored center. They didn’t go to the Galleria because it was too close — it was within five miles of NorthPark mall. They go up to Prestonwood, and it goes from a Neiman Marcus center to a data center that then failed in the telecom boom. Today, it’s a Wal-Mart. Back to the discounters with the growing value. One of the first malls I ever sold was Six Flags Mall over 15 years ago. Finally, it’s selling, or making a deal with the City of Arlington now, and GM is picking it up to do supplier work. The same thing is happening in Detroit with the mall Ford is taking over.
How have multi-use developments in the so-called live-work-play areas changed how retailers approach where they’re putting their locations? GEISLER: There’s so much density that’s come in and around Uptown that didn’t exist 15 or 20 years ago. It’s created a lot of demand for services and needs in retail. The customer today wants to live-work, but I still don’t think there’s a lot of that product that exists. A lot of people end up working for whoever they have to work for. One of the things I find fascinating is you have more people going north in the morning [now], and it used to be everybody was north, going south. But, a lot of the people in Uptown have to work in Legacy. I don’t think that’s what they want, but I think there’s only a handful of office users that are really trying to meet the needs. A lot of the movement for the office tenants in Uptown are Deloitte and [those] that want to attract better talent. Part of why they’re officing
PHOTO: MICHAEL SAMPLES
around the deck park and paying big rents is that it’s a good insurance policy that you’ll have a better opportunity to win the best talent. But there are still a lot of businesses not doing that. SALANTY: Live-work-play is great. If you’re a young person and you don’t have a family yet, you’re going to want to live in that environment close to that activity. An empty nester like me [might] live downtown. I did it for three years. I didn’t get in my car for four days. And my wife said she didn’t cook for a month because we went around to all the restaurants. That was fun. But [young people] get married and have kids, and they need to find a good school system. If we want to keep Uptown and downtown vibrant and family oriented, we need to have good school choices, otherwise [they will] bolt to the suburbs for the schools. SHOR: And then move back when they become empty nesters. MIHALOPOULOS: The whole way of life today is mixed-use. And it’s going to vary from the suburbs to the urban areas. The reason these companies are coming here is they have an opportunity. Their employees aren’t going to drive an hour and a half to commute to get to work, be it in California or the East Coast. [The companies] want them to have an environment where they’re working, and they can run out for 30 minutes and come right back — not lose them for an hour and a half. If you’re looking from employment base to the housing base, they’re all intertwined together, and that’s where this mixed-use works. For the different age groups, it’s going to have a different scenario, too. A lot of young kids first came to Addison because they thought it was the place to go. They lived in those apartments for six months and then came back to Uptown as soon as they could. They realized, “I’m in the suburbs. Even though it looked cool, it didn’t feel like what I wanted.” There are people now who are moving to the Plano and Frisco area, and 121, but they’re commuting from Westlake and Southlake, because their family needs are, “I want to be on a golf course.” [Highway] 121 now is easy for me to integrate. They call 121 the freeway that never stops giving. It’s like the “golden goose” of Collin County, 121. NTTA put in
THE BOTTOM LINE IS, IF YOU CAN PICK A MARKET TO BE IN, THIS WOULD BE IT. — ALAN SHOR that toll road and, look, it’s exploding. That’s what’s connected now from McKinney to the airport: You can be there in 20-something minutes. It used to be an hour-and-a-half commute. Each sector has its uniqueness. But mixeduse is going to be here to stay. It’s going to be an evolution — and there’s more depth to it if you do it right. State Farm came, and they wanted mixed-use. They created their retail mixed-use because that’s what their employees wanted. They didn’t want to get a big company to come in and do the “company cafeteria.” They wanted to bring in restaurants that would allow their employees to go out real quick. But it had to be affordable. Like the failures of Victory, it can’t be too expensive. It’s got to meet the demographics of what your employee base is. SALANTY: Those restaurants will need residents around them for dinner. A restaurant can’t survive on lunch or dinner by itself, at least very few of them. SHOR: The moral of the story for the mixeduse discussion here is that retail will never lead a mixed-use development. At the end of the day, it’s an amenity. You’ve got to have that core office and multifamily — that built-in customer — then retail and restaurant will follow. MIHALOPOULOS: They complement each other. WEITZMAN: We’ve seen prices on land go up, particularly south of LBJ. And it’s getting harder and harder to get anything new if it’s not in a mixed-use project. ... Right now, we’ve been in a cycle, and it’s a good way to lose money three different ways at once. Prices are extremely high. They’re as high as they’ve ever been. We could see some problems because rents are very high for retail and the stars are lined up right — we are doing fantastic, economically. However, everybody is asking the question, “Where are we in the cycle right now?” We’ve been in this cycle for a pretty good while.
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 3 7
R ROUNDTABLE Let’s talk about ICSC (International Council of Shopping Centers). I assume most of you may have attended the RECon (The Global Retail Real Estate Convention) in May. What were your major takeaways?
3 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
PHOTO: MICHAEL SAMPLES
MIHALOPOULOS: It was very active — 37,000 people. I expected more of a negative, fewer retailers to be there, but that wasn’t the case. There was a lot going on — on a lot of different fronts. This ICSC was more about the changes that are happening in retail. For the first time at ICSC, in all the years I’ve been in business, I never thought a hedge fund would be part of our industry. But in three of the meetings I had, it all had to do with hedge funds, either shorting the retailer, shorting the REIT, or shorting the mall market. ... We’re having a big short happening in our business because the retailers get on a call, or the REITs get on a call, and there’s a hedge fund guy there trying to knock it down. SHOR: Probably fewer deals got done, but we’re in this situation where retail is not in the cycle — retail is in sort of permanent change with what’s happening with e-commerce. [The] Amazon announcement that they’re buying Whole Foods for $13.7 billion ... That’s also very telling for what’s happening in the state of retail. MIHALOPOULOS: And what it did to their stock. SHOR: When you look at the number of retail bankruptcies that have been announced — the number of store closures that have been announced in the last ten months — it already exceeds the number of store closings during the recession. It’s the highest 12-month period in the last 35 years, and that’s in a pretty healthy economy. That’s with a stock market that’s booming, low unemployment, and an economy that’s pretty good — not great. That tells you this is a permanent change. And so, the discussions we have with retailers, almost every time e-commerce was a topic of discussion at ICSC, is how do they react? The retailer that’s going to survive is going to have to do both really well. There’s a reason why e-commerce retailers are opening up brick and mortar stores, because they’ve got to have both. You have to do both really well to survive. That’s the change that we’re in. FRANK: I’ve done a lot of work with Ulta Beauty over the last 12 years. They’ve experienced 13 consecutive quarters of double digit
comps and 50 percent year over year on their e-commerce. They know how to do that well. They’ve been looking at opening a hundred new stores every year, and they’re going to continue to open a hundred new stores every year. It’s about market share — really penetrating the market — especially with the “Amazon effect.” The takeaway from ICSC that I gained this year was creating a “mousetrap” in development, where you’re bringing in the entertainment, and you’re bringing in the right components — the right restaurants, the right mix of local chef-driven food concepts. “Food hall” is a big buzz word. Alongside the food and theater, alongside all these new [retail experience] concepts— whether it’s an iFly indoor skydiving [center] or a multitude of different indoor concepts — it’s [about] bringing experience to the whole retail segment so the consumer will want to go to this destination to do their shopping, versus across town where there are not all the experiential-type components to it. SHOR: They are the new anchors. FRANK: They are definitely the new anchors. Grandscape is a good example in The Colony of bringing that in ... Who would have thought of a furniture store that size? GEISLER: Legacy West is all about experience. FRANK: Right. So they’ve created that effective mousetrap. GEISLER: I think the summit at ICSC was very positive, more than I expected. I think that everybody was there to do business. But there was less business being done. It’s a healthy industry, but it’s an industry that’s adapting and reacting to tremendous change, more change than it’s ever experienced in my lifetime. WEITZMAN: The interesting thing is, the non-mall business is probably 96 percent of all the centers in the country. Most of the business is still done in nonmall projects. And there’s a whole group of tenants that thrive with visibility and easy in, easy access that serve the neighborhoods. Those are the community centers which are really the backbone of retailing in this country.
PHOTO: MICHAEL SAMPLES
MIHALOPOULOS: The other part I sensed was capital — the banks being very cautious, traditional banks on construction loans — it’s very hard to get loans right now unless you put enough equity in. But the equity players that were there — the capital structure — it feels like there were more people bringing capital to the markets because they think there’s an opportunity. Because of the change in what’s going on, there’s also a change in how the structure looks at it. Half our meetings were with capital people. I saw an interesting presentation by Marcus & Millichap. They showed us Sears versus Amazon: Where Sears was, what Sears had, and what Amazon is trying to build. Sears — the stores, catalog, distribution centers, and warehouses — the whole network was there. It was the number-one company at one time in America. And then Amazon started with an idea of selling books online. What they built was exactly what Sears had — a distribution facility, the catalog store. Now, [Amazon] is starting to get into brick and mortar to some extent. It was because Sears didn’t understand — they didn’t get the play of the internet and what was changing in the world — that they became a real estate play that was bought. They merged with Kmart. They’re falling apart on this side, and Amazon is building up ... What Amazon is building is what [Sears] already had. All they had to learn was ... get on the internet. [Sears] had the infrastructure, and they would’ve been a package. Evolution happens to these retailers. How many of us did Blockbuster deals? It was a leading tenant in the ’80s and ’90s, and then something called Netflix showed up and changed the whole world. It’s part of what we see — there’s change every day here. One thing is, the majority of all sales — still 85, 90 percent — are still done brick and mortar, not on the internet. If you ask somebody in this room the total of internet sales in trillions of dollars of sales, [they would say] it’s 13 percent. Some call it 15 percent. SALANTY: The last set of numbers that were published by ICSC was 10 percent, and it was based on 2015 numbers. It’s certainly getting bigger. We don’t know where
HOW MANY OF US DID BLOCKBUSTER DEALS? IT WAS A LEADING TENANT IN THE ’80S AND ’90S, AND THEN SOMETHING CALLED NETFLIX SHOWED UP AND CHANGED THE WHOLE WORLD. — FRANK MIHALOPOULOS the number is today. It’s interesting to note that mail order — the pure-play online retailers — was 3.7 percent of the 10 percent at that time. Mail order catalog [is] still 3.1 percent. That business has been around for a long time. Omni-channel retailers are 2 percent. There’s another percent, the non-merchandise stuff, which is shipping. That’s what makes up the 10 percent. And all that is growing a little bit. We’re watching this change, but the brick and mortar is the last mile. There’s also education that needs to go on in the stores. There are a lot of products out there, and people don’t know what’s right for them, so they go into IKEA and pick something. They go into Best Buy and pick something. The top five internet retailers are Amazon, Apple, Dell, Walmart, and Staples. How many of those have stores, of those five? A majority. MIHALOPOULOS: But Amazon is over 50 percent of the internet sales. SALANTY: Getting bigger — and getting brick and mortar stores. SHOR: You look at what Wal-Mart is doing in the dot com. Wal-Mart made the decision, “we can’t do it organically like Amazon — we’re going to do it by acquisitions.” They buy jet.com for a billion dollars, which gives them the infrastructure. They buy Bonobos, Mod Market, and one or two other specialty retailers and e-commerce retailers. They’re going to do it by acquisition. I think they’re going to be a very formidable competitor to Amazon. And Walmart.com is going be a very strong player. SALANTY: They’re not going to give up, I will tell you that.
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 3 9
MIHALOPOULOS: It’s rightsizing. We’ve got an example of a Staples store. We know it’s too big. But when they leave, we’ve got an Ulta and a Petco to take whatever space they want to give us. SHOR: And much higher rent. MIHALOPOULOS: I mean, they’re in a spot — most of their business is on the internet now. The office supply business is a perfect example of the mergers. SALANTY: Number five retailer right now online, Staples. MIHALOPOULOS: Dollar Trees and Dollar General, they cater to a different market. They’re going after the Walmart and below customer. ... My parents are Greek immigrants. They came to this country for the American dream, and they worked in the factories. They made money, and they made more money. Today, that dream is gone. You’re working either at Walmart or McDonald’s, and you’re making minimum wage or a little above minimum wage, and you’re going to have to shop at a Dollar Tree, Dollar General because that’s where you are going to be able to balance your food budget. SHOR: That’s the demographic that’s not going to buy on the internet, for the most part. That’s why the value guys are doing so well. Not just the Dollar Generals and Family Dollars and Dollar Trees, but TJ Maxx, Marshalls, and Ross. Their business continues to boom. GEISLER: A lot of these companies are financed, whether it’s private equity or publicly traded. The public markets want shortterm results, and that affects good decision making — long-term decision making. The private equity companies are there to push them to grow, and they load them with debt. I think we have some really great retailers that are victims — or becoming their own victims because they pushed growth too much. Neiman’s has so much debt. It’s one of the best operations in the country, but they’re in jeopardy. SHOR: It’s really a shame. I got out of public
4 0 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
PHOTO: CHASE MARDIS
In the last five years, there’s been a lot of merger and acquisition activity in the retail sector, and it seems to be affecting a lot of the retail sectors. How is that going to change the real estate component when you have companies merging, and they’re not going to need all of their physical locations?
company retail because I couldn’t stand having to run a business quarter to quarter. It doesn’t allow you to be strategic because if you have a bump in the road on one quarter’s earnings — you miss it by a couple of pennies — your stock gets beaten up. That’s an issue. The bigger issue is private equity’s activity in retail. Neiman Marcus is sort of the poster child of this. You buy a great brand with a great operating team [and] you load it up with debt to take your investment out, because these guys have to get a return on their investment, and now you’ve got a little bump in the road. Neiman has had negative comps, but not terrible negative comps — minus three, minus four, minus five points. I think Neiman, unfortunately, is in real trouble, because they can’t find a buyer. Nobody is going to take the debt. They will take the assets, but they won’t take the debt. What does Neiman do? They pull themselves out — they were in talks with a couple of major buyers. I don’t know how you get from under that debt. GEISLER: Nordstrom is talking about going private, right? I think that’s a great solution in these times. You have to get back to running a business with longterm in mind. SHOR: Exactly. That’s exactly right. SALANTY: The bond holders have to take the loss. GEISLER: You look at rue21 and Children’s Place, all of these concepts that have been through these really aggressive expansions in the last five years, they’re all dying because of too much expansion, poor operations, and debt. MIHALOPOULOS: Store closings have been the highest [in] years, and it’s going to continue. There’s a catharsis going on. There’s a cleaning up, and a lot of it has to do with how Wall Street and how money created this. Go back to the other companies that we’ve done, and every time there’s a leveraged buyout of a retail company, it’s like, “Oh, no.” SHOR: Here we go again. MIHALOPOULOS: We have a Fresh Market store that’s 45 days from finish out and opening its doors. It was bought out by Apollo, and they’re paying rent, but the store is not going to open. We don’t know when it’s going to open. It’s leveraged buyout controlling it. It’s a bean counter controlling the operations of a store. SHOR: It doesn’t give you any margin for error. You put debt on at the current business level; the company can carry the debt load. If there’s a little bump in the road, if business turns negative a little bit, it could be the end of the business. It’s a shame because these are great brands.
I would like to give each of you an opportunity to sum up what your overall impressions are. SALANTY: When I said that I live in the best city in the best state in the best country, that’s a good summary. We have so much good happening in our market — good people and good developers. We’re on fire. We’re in the middle of the country; we can get anywhere within three hours. We just have to get through July and August. FRANK: I agree. Dallas-Fort Worth is an excellent market. It’s a great test market
R ROUNDTABLE on all these repurposings of malls and the transition from traditional retail to more entertainment-oriented retail concepts or development projects. We have a great base for retail developers in this community, and they’re going to meet the challenges and the demands of the new consumers. SHOR: More of the same. DFW is the best place to be, and Texas as an extension is a great place to do business. We’re in a permanent, or certainly a long-term change, in the way retail is going to be conducted. That will have an impact on real estate and an impact on the investments we make and the leasing that we do. But there may be a little bit of unsettling for a period of time. At the end of the day, I think we will all be very happy with how things settle out — and very happy to be doing it from Dallas-Fort Worth. MIHALOPOULOS: We are blessed to be in a place where [we’ve had] all that’s happened here in the last 20 or 30 years. It’s a can-do city. And it just continues. We create things. Sometimes we don’t have the best waters or the best mountains, but we create transportation, we create parks. It’s a positive to be here. GEISLER: One of its greatest assets is there’s not a [high] cost of doing business. There’s a lot of opportunity to do business. Many cities around the country, we’ve competed and had envy over, but they’ve always been expensive places to do business. I think that what is driving Dallas is that everybody is aware they’ve got to operate more efficiently. It’s what is causing retailers to change; it’s why office users are moving to Dallas. Because it’s a more efficient way to live and do business, and it allows your company to excel.
EXTENDED CONTENT AND ADDITIONAL TOPICS ONLINE AT DFWREALESTATEREVIEW.COM
Our retail experts weigh in on:
How technology is changing brick-and-mortar retail
FOOD HALLS The food hall trend
Health-care service businesses and retail space
Retail opportunities for small business and “mom-and-pop” operations
This report was edited for context and clarity.
Capital Markets: A Global View
Details: Date: Wednesday, September 13 Location: Dallas Country Club Time: 7 – 9 a.m.
CRE investors all over the world are finding North Texas ripe with opportunity.
TREC Member Cost: $90 General Admission: $100 Table for 10: $1,000
What is fueling international interest? How does Dallas compare nationally?
Visit recouncil.com for tickets
What trends are informing investors’ decisions? Mark Gibson, CEO of HFF, and our slate of experts will bring you answers.
The Real Estate Council and Real Estate Deal Sheet have partnered to bring you unparalleled access
Office & Industrial
to industry experts and networking opportunities.
Wednesday, November 1
Imagine. Empower. Impact.
FOR MORE INFORMATION R ECOU NCIL .COM
214 692 3600 PHONE
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 4 1
HOTEL BOOM WHATâ€™S THE KEY TO HOSPITALITY CONSTRUCTION IN THE DALLAS REGION? BY AMY WOLFF SORTER
4 2 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
F FEATURE When the city of Roanoke announced in late June that it would become home to a new 300-room luxury Peabody Hotel, it was the latest sign that there’s a hotel boom underway in DallasFort Worth. It’s a boom that will bring scores of new facilities, thousands of new rooms, and jobs for the legions of people hoping to find work in the hospitality industry. Much of that boom is tied to the region’s growing economy and driven by corporate relocations, but it’s also the result of an industry playing catch-up from previous years’ lack of supply. The economic growth is visible to all those traveling DFW’s roadways. “Driving north on the (Dallas North) Tollway, a personal game I play is to count how many cranes I pass,” says Jeff Binford, director of CBRE Hotels’ Consulting. Binford says he saw upward of 17 cranes at one point, particularly in West Plano and Frisco. “I’m seeing a lot of activity from folks trying to build in those areas,” Binford says. The boom is the result of new development and corporate relocations, such as Toyota Motor’s new headquarters in Plano. It’s the same situation in the hotel industry. There are many hotels that opened recently, are in the planning stages, or already are under construction throughout the region. To get a clear picture on what is happening in the DFW hospitality sector, let’s check into some of the activity underway in the region. The 224-room dual-branded Aloft and Element hotels recently opened in the 37acre West Love development near Dallas Love Field. New hotel projects are underway in Irving, including a Westin adjacent to the convention center, and throughout Dallas and Fort Worth, especially within Dallas’ Central Business District and the Dallas Arts District. An $80 million, 240-room Virgin hotel is underway in the Design District of Dallas. In Fort Worth, you’ll find activity along West Seventh Street. Also, green-lit are a Marriott Autograph Collection hotel-conference center in McKinney, a Delta Hotels by Marriott Dallas and Watters Creek Convention Center in Allen, and more hotels in Grapevine. Further west, a new Cambria hotel
RENDERING: OMNI HOTELS AND RESORTS
THE OMNI FRISCO HOTEL AT THE STAR
and Suites opened in Southlake. In the town of Trophy Club next door, several hotels have opened, such as Hampton Inn & Suites and Homewood Suites by Hilton. Others are under construction, including a Holiday Inn. An Aloft hotel is planned in Beck’s Trophy Club Town Center development. The $5 Billion Mile in Frisco, anchored by the Dallas Cowboys’ mixed-use complex, The Star, has plenty of planned hotels, as does Plano’s Legacy West mixed-use project. And, in Arlington, the massive Texas Live! development, to be anchored by the Texas Rangers’ new stadium, will have a 302-room hotel as part of the $250 million project. Not far away, Drury Development Corp. of St. Louis wants to put in a nine-story hotel in the Arlington Entertainment District. Those are the “main-liners,” the projects that are making the headlines, and don’t include the hotels that are undergoing renovations, or those that aren’t part of a massive mixed-use development. In June, for example, a Las Vegas investor announced it bought the 241-room Regency Hotel in North Dallas with plans to upgrade the 150,000-square-foot facility. Dupree Scovell, managing partner and chief investment officer with Woodbine Development, says the overall DFW fundamentals — corporate relocations, job increases, and previous low supply — are driving hotel development across the region. He says that corporate relocations and jobs are macro-level issues that are overlaid on the hotel sector, which he says is very much of a micro-level industry. “In reality, each site, each hotel developed, doesn’t follow that (macro) mandate through to the micro level,” says Scovell, who is with the company that developed the Hyatt Reunion and is working on the 128-room, boutique Dream Hotel in Dallas’ Uptown submarket. In other words, ground-level factors can play more of a role in hotel decisions than do the overall fundamentals of a region. Woodbine, for example, focuses on several demand drivers before considering to build a hotel. Those drivers include proximity to an employment cluster, entertainment venue, or even an airport. Such micro-focused issues make it difficult to paint the entire hotel industry with one brush. While resort hotels aren’t going to be near employment clusters or airports, business hotels, according to Hall Group Chairman and Founder
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 4 3
F FEATURE ROANOKE’S ANNOUNCED PEABODY HOTEL
RENDERING: BOKA POWELL
“IT’S MORE THAN SIMPLY THE HOTEL THESE DAYS. IT’S WHAT’S AROUND THE HOTEL, IF IT’S PART OF A MIXED-USE DEVELOPMENT, PART OF AN INNER-CITY REVIVAL.” — MIKE GARCIA , PRESIDENT OF MAT THEWS SOUTHWEST HOSPITALIT Y
Craig Hall, should be within walking distance to business areas and employment centers. Hall, whose company is building the 183room Hall Arts Hotel in Dallas’ Arts District, says that the hotel is near employment clusters, while also being in an area focusing on leisure activities. “There aren’t that many sites that appeal to both sectors in the Dallas area,” Hall says. Then there are niches within niches. Medical hotels are trending, and Gatehouse Capital has partnered with Baylor Scott & White Health to build a 132-room hotel at Gaston Avenue and Hall Street at Baylor’s East Dallas campus. Gatehouse Capital CEO Marty Collins says that medical hotels need to be near medical campuses that offer plenty of hospital beds. “Real estate plays a role in hotel development, without question,” Collins says. “But just as important is matching the brand and the product with the customer. You could have the best location in the world. But if you have the wrong product, you have an issue.” Meanwhile, Garfield Public/Private LLC’s 350-room Westin Irving Convention Center Hotel is going up next door to the Irving Convention Center and adjacent to the Music Factory development. The project relied on something totally different from proximity to business and leisure centers, or even hospitals. The BOKA Powell-designed hotel, which is being built in partnership with the city of Irving, is meant to boost performance of the Irving Convention Center.
4 4 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
“A $130 million convention center without a hotel within walking distance created a sales hurdle for the convention and visitor’s bureau,” says Ray Garfield, chairman of Garfield Public/Private. “Dallas had a convention center for years without the Omni, and suffered in attracting conventions to the community.” BOKA Powell also is the architect on the Valencia Texican Court, a 148-room hotel planned for the southeast corner of West Las Colinas Boulevard and West Northwest Highway. It will be smaller of the two hotels to be built adjacent to the Irving Convention Center. Adjacency to a convention center can be a favorable factor for hotel companies looking for prime locations. For some developers, deciding to build depends on what’s going on in the submarket or neighborhood. “It’s more than simply the hotel these days,” says Mike Garcia, president of Matthews Southwest Hospitality. “It’s what’s around the hotel if it’s part of a mixed-use development, part of an inner-city revival.” And, finally, construction decisions might rest on aging inventory that needs to be replaced, not to mention that newer hotels are geared toward very different needs and travelers. “Twenty years ago, hotel lobbies were places to pass through. Today’s lobbies are places to hang out,” says Joe Champ, president with Champ Hospitality, which broke ground recently on a 126-room Aloft Hotel in Las Colinas. “Newer hotels have lobbies that are user-friendly, if you want to be social.” Also, people simply like newer spaces. “It doesn’t have the same stigma the older stuff does,” Champ says. Many hotel developers like the Dallas-Fort Worth area simply because there are low barriers to entry. “It’s simply easier to develop here,” Scovell observes. “We’re seeing first-time developers making decisions that might not make a ton of sense.” It’s those “because we can” developers that have Scovell worried. “Those types of decisions don’t necessarily do force a disciplined underwriting process,” he says. Such decisions, as well as the announced hotels and those under construction, can bring up oversupply concerns. The experts say that supply has outpaced demand. Metrics for the first quarter of 2017 issued by STR Global back this claim. CBRE forecasts 70.1 percent occupancy in the Dallas metro area for 2017, and
Irving Convention Center Las Colinas Coming Fall 2018
A hospitality connection between the Irving Convention Center and the Music Factory.
PHOTO: MICHAEL SAMPLES
224-room dual-branded Aloft and Element hotels recently opened in the 37-acre West Love development near Dallas Love Field.
69.3 percent occupancy among Fort Worth hotels, declines of 1.9 percent and 0.3 percent, respectively, from the previous year. In terms of pipeline and a lot of extra rooms, the West Plano-Frisco area is taking top honors. Meanwhile, according to Lodging Econometrics, the pipeline for Dallas alone (consisting of rooms under construction and in the planning stages), totals 17,869 rooms across 141 properties. In 2017, Lodging Econometrics estimates 68 hotels will break ground, eventually delivering 8,616 rooms. In 2017, it’s projected that 44 new hotels will open, adding 5,050 rooms to the market, a growth rate of 6.1 percent. However, before anyone rings the “oversupply” alarm, it needs to be remembered that there are many different hotel categories, ranging from “budget” or “economy” (limited-amenity properties and lower average-daily rates, or ADR), through midscale, upper midscale, upscale, and luxury. Within those categories are a range of limited- to full-service amenities. There are also the destination hotels (resorts) and extended-stay hotels. The different categories have different numbers of rooms anticipated for delivery. Lodging Econometrics says that the bulk of new rooms coming to the North Texas market are anticipated to be midscale and upper-midscale hotels, especially in areas such as West Plano/Frisco/McKinney and Lewisville/Denton. Meanwhile, experts point out that there hasn’t been much full-service or luxury product added to the North Texas collection. Adds Matthews Southwest’s Garcia: “The limited service right now is outpacing the luxury builds, because it’s cheaper to build.” Still, from the developer’s standpoint, Woodbine’s Scovell says that the industry for the area is in the late stages of the cycle. As a result, Woodbine is pulling back from development and focusing more on acquisitions. Hall says his company is planning a hotel in its mixed-use Hall Business Park in Frisco — during the next economic cycle. “Because of the number of hotels in progress right now, we’ll wait for a while,” he says. Matthews Southwest Hospitality is focusing on a few areas in North Texas in which “we’ve been asked to take a look to see if it makes sense to build a hotel there,” Garcia says. “It all gets back to what’s driving demand, and what is sustainable.” It’s this caution that is, in part, taking the sting out of the potential for
DALLAS REGION HOTEL MARKET, Q1 2017 SUPPLY
% YEAR-OVERYEAR INCREASE
% YEAR-OVERYEAR INCREASE
5.2% SOURCE: STR Global
oversupply. “There is some wait-and-see out there,” CBRE’s Binford says. “Everyone knows that new hotels are coming in, and they’re asking themselves if they want to come in with their own.” As for the already-announced projects, “a lot of things get announced that don’t get built,” Hall says. Despite some undisciplined underwriting, conventional loans for hotels are not exactly easy pickings. Even if debt were freely available, it takes a while to see any kind of return, meaning the property sector is not for the faint-ofheart investor. “They have to wait upward of three years, between designs, entitlements, and contractor bids, to break ground,” Garfield says. When construction actually begins, it will be at least two years before the hotel opens. Tack on to that an additional two years for the hotel to get heads in beds, to stabilize, and to generate consistent income. “You’re putting your money in year one, open the hotel in year three, and you can’t refinance, or put on a permanent mortgage, or sell the property until years five or six, at the earliest,” Garfield says. “Investors are extraordinarily cautious of taking that type of risk.” As a result, “some of those high-end, full-service projects won’t get done,” Champ says. “There is a point in the cycle when underwriters won’t be able to project a 5 to 10 percent growth pro forma and won’t go forward with building.” Meanwhile, Binford says the supply already under construction will exert downward pressure on occupancy and Average Daily Rate (ADR). As a result, Binford continues, future occupancy and ADR metrics will settle down to historical trends, barring any devastating economic swings. The experts do point out that, if supply continues to be delivered at the current rate, there could be a glut. But not necessarily. Overall, while there could be a few bumps here and there within the hotel industry, the macro signs, in addition to the micro conditions, continue to be robust. While hotel supply is outpacing demand, few experts are worried about a massive glut in the market. “I think the supply will taper off,” Garcia predicted. “The spigot won’t shut off, but things will slow down.”
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 4 7
A ANATOMY OF A DEAL
4 8 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
A ANATOMY OF A DEAL
ROSS PEROT JR.’S VISION COMES CLOSER TO A REALITY AS CHARLES SCHWAB CORP. JOINS FELLOW FINANCIAL GIANTS FIDELITY INVESTMENTS AND DELOITTE IN PLANTING ROOTS AT THE CIRCLE T RANCH
BY KERRY CURRY
The Charles Schwab Corp. has called the hills of San Francisco home for decades. But when the financial giant began looking for a place to expand, it found the perfect home on the range, a working cattle ranch where Brangus cattle roam and corporate citizens are welcome — The Circle T Ranch in Westlake. Schwab’s new North Texas campus will join Fidelity Investments and Deloitte University as major corporate residents in Westlake.
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
A ANATOMY OF A DEAL
Ross Perot Jr. and his Hillwood real estate development company acquired the 2,500acre Circle T Ranch in 1993. The big-picture vision has always been one of high-end corporate campuses nestled into and respecting the property’s natural beauty. “That land doesn’t look like anything else, literally, in North Texas,” says Mike Berry, president of Hillwood Properties and Hillwood Urban. “It’s so unique. It was kept up over the years, beautifully, by the Hunts who ran it as a very upscale horse operation.” Over time, the land was cleared but big, beautiful post oaks were showcased and allowed to flourish, enhancing the ranch’s natural beauty, which includes a lake and rolling hills. Hillwood believed Circle T Ranch would develop slowly as a quality master-planned corporate campus environment. They were willing to be patient. With Las Colinas just down Texas 114 to the east and Legacy booming in Plano, Hillwood knew it would take time for development to head west. Eventually, growth did come west, and, as a result, the Circle T Ranch has entered the mix as a sought-after corporate campus site. Schwab began scouting the Dallas area for an expansion in December 2012, and by late 2013, it had zeroed in on the ranch in Westlake, a small town of roughly 1,200 residents that already was home to Fidelity and Deloitte University. Although it remains committed to its
5 0 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
headquarters in San Francisco, Schwab decided about 10 years ago to reduce its headcount there and expand in other select cities after strategizing a long-term growth plan. Schwab, which has several employment centers around the nation, chose Denver and Dallas as expansion sites. “It was all about demographics —where can we find the right employees that fit the Schwab culture and have the experience and expertise we need?” says Glenn Cooper, senior vice president of corporate real estate at Schwab. “Several cities arose in our research, but Dallas clearly came up as No. 1.” Schwab tapped the expertise of CBRE’s Josh White to help it explore options around Dallas, and company officials visited Circle T for the first time in late 2013, meeting with the entire team at Hillwood, which is developing the ranch site. “We spent the good part of a year getting to know each other,” Cooper recalls. “It was a negotiation, but it was also getting to know each other and making sure we were the right fit for them,” Cooper says. “It was unique in that way.”
FIDELITY KICKS OFF DEVELOPMENT
Hillwood originally envisioned a regional mall at the property’s most visible corner, the intersection of state highways 114 and 170. Hillwood and General Growth entered into a partnership to develop the mall there while allowing for other development within the ranch’s core. “We had ideas, always heavy with open space. We thought about golf, a resort hotel, [a] low-density corporate campus. We thought about some other uses such as a wedding chapel or a winery,” Berry says. “Over time, we planned those different things, but the vision was always primarily driven by a corporate campus concept to anchor the development, kind of like the early days with Legacy, which Mr. Perot Sr. created with EDS [Electronic Data Systems].” Although the mall never got off the ground and was eventually removed from the plan, Hillwood landed Fidelity five years after buying the ranch, setting the stage for the future corporate development. “Fidelity went over and above the call of duty in terms of their respect for the land and their respect for design,” Berry says. The more than 1 million-squarefoot campus isn’t visible from Texas 114. “That was a validation that the Circle T
A ANATOMY OF A DEAL
needed to be treated as a very special place.” Scott Orr, vice president of public affairs at Fidelity, says former Fidelity Chairman Ned Johnson drove the decision to consolidate Fidelity’s North Texas operations at Circle T. “He told stories of flying over the terrain in a helicopter,” he says. “He liked the hills, the ponds, and said, ‘Here’s the land I want—you guys figure out how to put it together.’” Fidelity ultimately bought 337 acres. It initially opened one building in 2000 and its second building in 2010. Fidelity now employs more than 6,000 people at Circle T. “It’s definitely been a very successful outpost for Fidelity. In fact, this is our single largest collection of Fidelity employees in the world,” Orr says. Johnson made Westlake the first Fidelity facility outside Boston after a massive East Coast snow storm in 1978 made it impossible for most Boston-area workers to make it to the office, crippling customer service efforts. Johnson used cross-country skis to get to the office. Seeing a need to diversify Fidelity’s locations, Johnson began a search for a place to build a Sunbelt campus. On the heels of the Fidelity deal, Hillwood worked with Discovery Land and put together Vaquero, a high-end residential development just south of the Fidelity campus. Discovery brought in world-renowned golf-course architect Tom Fazio to design a golf course, which opened in the fall of 2001. The 330-acre project faced some initial challenges because of the recession that followed the 9/11 terrorist attacks, but it persevered and now is substantially built-out. In 2000, DaimlerChrysler Financial Services built a 130,000-square-foot office building on the west side of the ranch, which would later be occupied by TD Auto Finance. Today, Schwab occupies the building as a temporary outpost. It has 150 employees there and will be able to accommodate as many as 900 as it ramps up employment concurrent with its campus construction.
DELOITTE COMMITS TO CIRCLE T
The next spring, in March 2001, Boeing Co. announced plans to move its headquarters from Seattle to Dallas, Denver, or Chicago. A flurry of media attention ensued as the three cities competed to woo the Fortune 500 multinational company. In North Texas, the Circle T Ranch was among sites Boeing officials toured,
but by May the airplane manufacturer had settled on Chicago. The effort to woo Boeing raised Circle T’s profile on the national stage as a strong and viable location for top-tier corporate relocations, but seven years would pass before the ranch attracted its next high-profile corporate client. In 2008, Deloitte announced plans for a corporate training center, Deloitte University, at Circle T. It opened in 2011. It was a huge win for Hillwood’s Circle T. The 700,000-square-foot facility contains 800 hotel rooms along with meeting rooms, a dining hall, and a fitness center. “We looked at a number of locations around the country, some 300 sites,” says Jason Downing, managing partner, North Texas for Deloitte. “It was a very attractive physical site — the property is beautiful, heavily treed, lots of hills, just great space — but probably the No. 1 factor was proximity to the airport,” he says. Deloitte also liked that North Texas was geographically "fair" for professionals traveling from both coasts and had a cooperative climate. Roughly 60,000 visitors cycle through the center every year for leadership development curriculum, Downing says. Deloitte also offers a program for military veterans transitioning into the workforce, and a weekend development program for school principals.
SCHWAB ANCHORS MIXED-USE DEVELOPMENT
Corgan, which is designing the Schwab campus, said the 70-acre project will include parks, open space, and nature trails — all open to the public. About 3,500 people are expected to work at the 580,000-square foot Phase One of the Schwab campus. Ultimately, the campus is expected to expand to more than 1 million square feet. “Charles Schwab wants to be a great corporate citizen, and they want to engage the community,” Corgan Managing Principal Matt Mooney says. The design includes an amenity center with meeting rooms near the front entrance available for civic functions. “They plan to develop a campus that is an asset to the community, engages the public and offers venues and functions for employees and citizens that extend beyond a business use,” he says.
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 5 1
A ANATOMY OF A DEAL
THE SCHWAB CAMPUS DEVELOPMENT TEAM: CORGAN Architect, Masterplanning, Shell & Interiors Scope THE OFFICE OF JAMES BURNETT Landscape Architects KIMLEY-HORN Civil Engineering AG&E STRUCTURAL ENGENUITY Structural Engineering TELIOS Mechanical, Plumbing, Electrical, Security, Telecommunications Consulting HWA Parking Consulting DPR CONSTRUCTION General Contracting SCHWAB REAL ESTATE: Glenn Cooper, Senior Vice President Corporate Real Estate JOSH WHITE, CBRE Real estate broker
MIXED-USE NEIGHBORING COMPONENT: HILLWOOD AND HOWARD HUGHES CORP. Developer RENDERING: SCHWAB'S NEW CAMPUS
It also includes a park-like feature for public use that will sit alongside a parking garage accommodating 2,600 cars. The Office of James Burnett, which designed Klyde Warren Park, is serving as landscape architect. Mooney says the campus design will balance a rural ranch aesthetic with a sophisticated commercial image. Corgan will incorporate metal gabled roofs with large shaded overhangs and natural stone veneers. Service functions, such as a loading dock are concealed below grade to not spoil the aesthetic. Steve Aldrich, senior vice president with Hillwood Properties, says Hillwood will partner with Howard Hughes Corp. to develop a vibrant, urban mixed-use development to complement the Schwab campus.
5 2 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
Howard Hughes Corp. sees a lot of upside to that mixed-use development, says Mark Bulmash, senior vice president of development for Howard Hughes. Based in Dallas, Bulmash oversees properties based in the central and southeast regions of the U.S. "We believe corporate campuses are looking for these highly amenitized areas — walkable situations with hotels, fitness centers, restaurants, and retail that will create amenities not just for Schwab but for the surrounding communities,” Bulmash says. "Westlake is known for its tremendous quality of life, and Schwab will create momentum for the project and will accelerate other developments that will occur around it. It's already happening, but I think Schwab is a seminal event for the area.” Hillwood is already “softly out to market” on the mixed-use project, which it recently took to the International Council of Shopping Centers (ICSC) conference in Las Vegas, says Bill Burton, executive vice president of Hillwood Properties and Hillwood Urban. Hillwood and Howard Hughes have jointly owned the land for several years, but have never jointly developed anything until now, according to Bulmash. "We are looking forward to our first venture together," he says. "We’ve had a long relationship with the Hillwood people — a very skilled and
A ANATOMY OF A DEAL
SCHWAB TEMPORARY OUTPOST
LAY OF THE LAND
CIRCLE T RANCH
CIRCLE T RANCH
The Schwab campus provided the catalyst for Hillwood to revisit its vision for
VAQUERO RESIDENTIAL DEVELOPMENT
MIXED-USE DEVELOPMENT UNDER CONSTRUCTION
experienced group. It's fun to work with others like that and figure out how we will build it together,” Bulmash says. Gensler is master-planning the mixed-use component with the expectation that construction could get underway by 2018. “I think there is opportunity to put density in Westlake that exists nowhere else there,” says Barry Hand, principal and studio director at Gensler. Downtown Roanoke and Southlake Town Square are the closest high-density mixed-use developments, and this project will be different, he says. “I think Hillwood and Hughes want to tap into the Circle T Ranch brand, but it won’t be Cowboys and Indians. When we say ranching, it's more about casual sophistication,” he continues. The project will attract residents from area cities but also connect to the Schwab campus. “We intend for the corporate citizens at Schwab to be able to walk into this development and use it for a lot of lifestyle amenities,” Hand says. “We talk a lot about the amenitized corporate environment, and in our masterplans, we are putting lifestyle cores against HQ parcels because that is what new HQ relocations are looking for.”
A LOOK TO THE FUTURE
corporate campus development on the western portion of the ranch, Aldrich says. “We hadn’t taken a fresh look at the western side of the ranch and the 900 acres we have there in quite a while,” he says. “We are really starting to look at that in conjunction with the pieces of the ranch that have fallen into place: Vaquero, Fidelity, Deloitte, Schwab, and our mixed-use piece: What can we do with the remainder of that land to attract firms that want to locate in North Texas?” That revisioning is being finalized with the help of Gensler and will allow for sites as small as 5 to 10 acres or as large as 100 or more acres. “We are figuring out what will fit best on that land and will be refining our story,” Aldrich says. “We are excited about Schwab allowing us to advance the story of Circle T Ranch.”
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 3
A ANATOMY OF A DEAL
THE HISTORY OF THE CIRCLE T RANCH TIMELINE 1993:
Ross Perot Jr. acquires the 2,500acre Circle T Ranch from Nelson Bunker Hunt
Fidelity buys more than 300 acres of land, some from Hillwood and the remainder from Scott Bradley, then the mayor of Westlake
General Growth announces a partnership with Hillwood to build a super regional mall (Plans for a mall are later removed in the mid 2000s)
Fidelity campus opens its first building, One Destiny Way
DaimlerChrysler Financial builds a 130,000-square-foot office BY KERRY CURRY
Circle T Ranch is unique in that it’s only had a handful of owners over its lifetime and has always been owned by highly influential Dallas business leaders who used the ranch as a family getaway, as a horse or cattle operation, and as the site for sophisticated gatherings of Dallas’ well-to-do society. Ted Dealey, who succeeded his father as head of Belo Corp., bought acreage in what is now Westlake in the late 1930s and had a home built there in 1938 by famous architect Charles Dilbeck. The property was known as the 220 Ranch for the amount of acreage it contained. Dealey, who built what is now known as Turner Lake, sold his ranch in the late 1940s to J. Glenn Turner who renamed the property Circle T Ranch and continued to add acreage until it reached about 2,500 acres. Turner used the ranch to raise and train Tennessee Walking Horses, and as a place for entertaining and respite from Dallas. Turner incorporated the ranch and surrounding area as the Town of Westlake in December 1956. The ranch was sold in 1969 to Nelson Bunker Hunt, another powerful Dallas figure who raised horses and cattle on the property.
5 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
2001: Hunt is said to have loved the property so much he once insisted he’d never part with it, even for $200 million, according to a story in the New York Times. Ross Perot Jr. managed to buy Circle T Ranch in 1993 for less than $20 million after Hunt went bankrupt. After Perot bought the ranch, former Westlake mayor Scott Bradley — who owned 130 acres adjacent to the ranch including the Dilbeck house that he’d restored — opposed Perot’s development plans, and a feud developed over the Circle T and whether it would be owned by Westlake or disannexed and annexed into the city of Fort Worth. A multiyear battle with many layers of intrigue eventually was settled with the ranch declared to be in the Town of Westlake. In 1998, Bradley sold acreage he owned to Fidelity and moved the Dilbeck house to another property about a mile away. In 2000, Fidelity opened its campus, becoming the first major corporate facility on the ranch. Sources: The Little Town that Could, by Joyce Gibson Roach, The New York Times, The Dallas Morning News.
Tom Fazio golf course and Vaquero residential development opens
Westlake Academy opens
Deloitte buys land and announces plans for Deloitte University
Fidelity opens Two Destiny Way, bringing its square footage at the ranch to more than 1 million square feet
Deloitte University opens
General Growth’s interest at Circle T is transferred to Howard Hughes Corp.
Schwab announces plans to build at Circle T
Hillwood announces partnership with Howard Hughes for a mixeduse development
Construction to begin on the Schwab campus
A ANATOMY OF A DEAL
AREA CITIES FOCUSED ON OPPORTUNITIES BY KERRY CURRY
PHOTO: ELIZABETH LAVIN
PHOTO: LANCE MURRAY
PHOTO: CITY OF WESTLAKE
Development on the Circle T Ranch is expected to benefit not only Westlake, where the ranch is located, but also surrounding cities where leaders say they see positive economic impacts on the horizon. “The vitality of the [State Highway] 114 corridor is something that Southlake and the City Council have been focused on for some time,” says Alison Ortowski, Southlake assistant city manager. “In fact, in our most recent economic development master plan, we identify several goals related to the development of the corridor in Southlake, including the desire for additional corporate and regional office development.” Ortowski says the current construction of TD Ameritrade’s regional site in Southlake is an example of Southlake’s vision coming to life. “We believe we are well on our way to a vibrant, diversified corridor that encourages desired future growth,” she says, “and development in neighboring cities only contributes to the success of the region as a whole.” Cody Petree, director of community & business development in Roanoke, says he expects many Schwab employees to consider Roanoke for housing and for its amenities, which include more than 50 restaurants, including the original Babe’s Chicken Dinner House and the popular Classic Café. The city is widening Parish Lane, which leads from Texas 170 into Roanoke, in anticipation of the coming growth, he says. In Westlake, Town Manager Thomas Brymer says they expect Circle T projects will add to the city’s tax base over the course of time after tax abatements run their course. He says some additional executive-level housing likely will be built in town as a result of the Schwab campus. “In respect to sales tax, I think it will have an impact on communities contiguous and near to Westlake as employees will be living all around the area, not just in Westlake,” he says. “We see (Schwab) as part of our comprehensive plan to attract an industry cluster, which in the case of Westlake, is turning out to be financial services with Fidelity and Deloitte already here, and now Schwab. Over in Southlake, right across the street from us, TD Ameritrade is building a big campus complex. We are getting a critical mass of financial services companies.” Brymer says Westlake has been pleased with the quality of corporate citizens locating at the ranch, adding that, “Hillwood, to its credit, has been very selective on its development at the ranch. It’s been of the highest caliber.”
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 5
DISCOVER WHATâ€™S NEW + NEXT IN NORTH TEXAS INNOVATION WHERE
TECH CREATIVES INNOVATORS INCUBATORS EDUCATORS ENTREPRENEURS INVESTORS ENTERPRISE &
CONNECT, CONVERSE, AND CONVERGE ACROSS INDUSTRY SECTORS
THE DIGITAL MEDIA PLATFORM COVERING DALLAS-FORT WORTH AS A HUB FOR INNOVATION
COLLABORATION OF OF THE THE DALLAS DALLAS REGIONAL AACOLLABORATION REGIONAL CHAMBER CHAMBERAND ANDDDMAGAZINE MAGAZINEPARTNERS PARTNERS
ALLIANCE PHOTOS: ALLIANCETEXAS
LABOR MARKET SPOTLIGHT A talented and highly skilled workforce is a driving force behind North Texas’ booming commercial and residential real estate markets. In this section of the Dallas-Fort Worth Real Estate Review, we profile specific areas that have grown in conjunction with the influx of professionals who continue to relocate to the Dallas region. We also profile worker commuting preferences and highlight the proximity of employees’ homes to their places of work.
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 7
LABOR MARKET SPOTLIGHT: ALLIANCE BY DAVE MOORE
Few developers have the chance to build a project across 28 miles of rolling, unencumbered land. But that’s what H. Ross Perot Jr. and his company, Hillwood, did in the 1980s to handle a surge of air traffic and population to the Dallas Region. Today, that development, called AllianceTexas, contains more than 1 million square feet of retail space, near the workplaces of 40,000 professionals, many of whom live in a blend of more than 10,000 townhomes, apartments, and single-family homes. Scores of shipping containers pass through the Alliance Global Logistics Hub, which includes Fort Worth Alliance Airport and BNSF Railway’s Alliance Intermodal Facility. The Hillwood development and its surroundings are commonly referred to as Alliance. Accordingly, a fifth of all employees in Alliance area work in transportation and warehousing. And roughly a third of all workers live less than 10 miles away from their jobs, while another third is 10 to 24 miles away, according to federal data. The site has drawn financial services jobs, with Charles Schwab’s announcement of its 1,200-employee corporate campus on the sprawling Circle T Ranch property, including restaurants, retail, day care facilities, and a 200-room hotel. Completion is set for 2019. Employers include the North American HQ of Galderma Laboratories LP and TD Ameritrade’s regional branch office. Other operations include BNSF Railway, AT&T, and LG Electronics USA. In 1987, when the initial project was referred to as “North Fort Worth Airport,” H. Ross Perot Jr. spoke of the benefits of largescale planning that Alliance would yield. “Imagine being able to work for one of the top companies in the country … and drive to work in five or 10 minutes,” he told the Fort Worth Star-Telegram. “More and more companies … are going to take jobs to where the people are.”
5 8 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
INDUSTRY SECTORS BY PERCENTAGE OF EMPLOYEES Accomodation & Food Services
Professional, Scientific & Tech Services
Transportation & Warehousing
Health Care & Social Assistance
(except Public Administration)
All Other Industries*
Wholesale Trade Construction
Finance & Insurance
*Includes Finance & Insurance; Administrative & Support & Waste Management & Remediation Services; Real Estate, Rental & Leasing; Arts, Entertainment & Recreation; Public Administration; Information; Utilities, Unclassified Establishments; Management of Companies & Enterprises; Agriculture, Forestry, Fishing & Hunting; Mining. Source: ESRI Total Residential Population forecasts for 2016
DISTANCE AND DIRECTION OF WORKER COMMUTE N NE
DISTANCE TO JOB Less than 10 miles 10 to 24 miles 25 to 50 miles Greater than 50 miles
% OF WORKERS 31.5% 37.5% 16.8% 14.3%
The U.S. Census Bureau pairs home/work census blocks to describe geographic patterns related to the workforce. Mapping commuter flows, for example, can help employers determine where potential workers live, as well as how far they might be willing to travel for work. Radar images dynamically communicate several important aspects about worker commute patterns. The radar indicates primary and secondary cardinal directions from which a worker travels to a job, and the distance traveled as determined by the color of each pie piece. The size of each pie piece indicates the volume of workers who commute from that direction and distance as indicated by the dashed and numbered concentric circles. Source: U.S. Census Bureau, Longitudinal EmployerHousehold Dynamics (data based on 2014 employment estimates of 26,656 jobs)
ESTIMATED TOTAL JOBS IN ALLIANCE: 47,500
as reported by AllianceTexas
4 31 29 10 36 5 7 30 40 2812 48
27 19 49
21 42 2
38 50 52
WORKER CHARACTERISTICS AGE
Age 29 or younger. . . . . . . . . . . . . . . 21.8% Age 30 to 54 . . . . . . . . . . . . . . . . . . . . 61.1% Age 55 or older . . . . . . . . . . . . . . . . . . . 17.1%
Less than high school. . . . . . . . . . . . . . High school or equivalent, no college. . . . . . . . . . . . . . Some college or Associate degree . . . . . . . . . . . . . . . . . . Bachelorâ€™s degree or advanced degree . . . . . . . . . . . . . . . . . . Data not available
EARNINGS $1,250 per month or less . . . . . . . 15% $1,251 to $3,333 per month . . . . . . 33% More than $3,333 per month . . . . . 52%
(workers aged 29 or younger) . . . . . . . . .
12.0% 20.0% 25.4% 20.6% 21.8%
INDUSTRY SECTORS BY PERCENTAGE OF ALL BUSINESSES Accommodation & Food Services
Health Care & Social Assistance
Professional, Scientific & Tech Services
Finance & Insurance
Real Estate, Rental & Leasing
5% Retail Trade
Other Services (except Public Administration)
All Other Industries*
Administrative & Support & Waste Management & Remediation Services
*Includes Educational Services; Transportation & Warehousing; Wholesale Trade; Manufacturing; Arts, Entertainment & Recreation; Information; Public Administration; Management of Companies & Enterprises; Agriculture, Forestry, Fishing & Hunting; Mining; Utilities.
Source: ESRI Total Residential Population forecasts for 2016
SAMPLE OF MAJOR EMPLOYERS IN ALLIANCE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52
Alliance Airport Amazon - Fort Worth Fulfillment Center Amazon - Haslet Fulfillment Center AmerisourceBergen Corp Babe's Chicken Dinner House Baylor Medical Center at Trophy Club BEHR Process Corp BNSF Railway BrandFX Body Co Bridgestone Cabela's Cardinal Health Inc Charles Schwab Corning Optical Communications LLC Deloitte University DynCorp International ECi Software Solutions Inc Michaels Distribution Center Facebook Farmer Brothers Federal Aviation Administration FedEX and FedEX Freight Fidelity Investments First American Mortgage Solutions Galderma Laboratories LP GE Manufacturing Solutions Genco/ATC Logistics General Mills Inc General Motors Corp/Customer Care Grainger Industrial Supply Hawaiian Falls Waterparks JB Hunt JCPenney Logistics LG Electronics Marriott Solana Martin-Brower Co LLC Mercedes-Benz Financial Nestle RECARO Aircraft Seating Americas Inc Ryder Sabre Kraft Foods Distribution Southstar LLC TD Ameritrade Texas Health Harris Methodist Alliance Texas Motor Speedway GDC Technics Tom Thumb Distribution Tucker Rocky Distributing Inc UPS Vaquero Club Walmart Distribution
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 9
LABOR MARKET SPOTLIGHT: INLAND PORT BY DAVE MOORE
Dallas leaders once entertained the notion that the city would serve as an inland port to the Gulf of Mexico, via the Trinity River. That never happened. But Dallas has its port and a growing workforce, to boot. The Southern Dallas Inland Port – located in sections of Dallas, DeSoto, Ferris, Hutchins, Lancaster, and Wilmer – offers unsurpassed connections to rail and trucking lines, an airport, and serves as a base for distribution centers, manufacturing and foreign trade. Roughly 26,000 workers are employed in and around the port, where nearly half of them are engaged in warehousing, processing and shipping goods and materials throughout Texas and the world. The list of companies in the port area reads like a who’s who of commerce: Home Depot, Quaker, Whirlpool, Wal-Mart, BMW, and many more. The inland port’s appeal mostly lies in its central U.S. location, and in its access to Interstates 20, 35 and 45. Combined, these thoroughfares guarantee that about 93 percent of goods shipped from the port can arrive anywhere in the continental U.S. within two days. Lancaster Regional Airport is located in the port, which is also near Dallas Fort Worth International Airport, Fort Worth Alliance Airport, and Dallas Love Field. The 360-acre Union Pacific Intermodal Terminal offers advanced software that tracks motor carrier wait times. Roughly one in 10 workers in the port area is employed in the educational services sector, reflecting the growing presence of UNT-Dallas, Paul Quinn College, and DCCCD Cedar Valley campus. UNT Dallas employs about 165 faculty members, while Cedar Valley College employs 645 people. The Southern Dallas Inland Port is growing to become not just a logistics hub, but a major center of retail, education and manufacturing.
6 0 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
INDUSTRY SECTORS BY PERCENTAGE OF EMPLOYEES All Other Industries*
Accommodation & Food Services
Transportation & Warehousing
7% Health Care & Social Assistance
(except Public Administration)
Professional, Scientific & Tech Services
*Includes Adminstrative & Support & Waste Management & Redemption Services; Real Estate, Rental & Leasing; Finance & Insurance; Information; Arts, Entertainment & Recreation; Agriculture, Forestry, Fishing & Hunting; Utilities; Unclassified Establishment; Mining; Managment of Companies & Enterprises. Source: ESRI Total Residential Population forecasts for 2016
DISTANCE AND DIRECTION OF WORKER COMMUTE N NW
DISTANCE TO JOB Less than 10 miles 10 to 24 miles 25 to 50 miles Greater than 50 miles
% OF WORKERS 34.5% 33.7% 15.7% 16.1%
The U.S. Census Bureau pairs home/work census blocks to describe geographic patterns related to the workforce. Mapping commuter flows, for example, can help employers determine where potential workers live, as well as how far they might be willing to travel for work. Radar images dynamically communicate several important aspects about worker commute patterns. The radar indicates primary and secondary cardinal directions from which a worker travels to a job, and the distance traveled as determined by the color of each pie piece. The size of each pie piece indicates the volume of workers who commute from that direction and distance as indicated by the dashed and numbered concentric circles. Source: U.S. Census Bureau, Longitudinal Employer-Household Dynamics (data based on 2014 employment estimates)
ESTIMATED TOTAL JOBS IN THE INLAND PORT: 25,604 SUMMER 2017
1 T AR TU NS
30 54 51 6 53
27 33 32
43 52 44
SAMPLE OF MAJOR EMPLOYERS IN DALLAS’ INLAND PORT
21 22 23 49
E AV AS
BELT LINE RD
3 25 24
WORKER CHARACTERISTICS AGE
Age 29 or younger. . . . . . . . . . . . . . . 23.0% Age 30 to 54 . . . . . . . . . . . . . . . . . . . . . 57.1% Age 55 or older . . . . . . . . . . . . . . . . . . 19.9%
Less than high school. . . . . . . . . . . . . . High school or equivalent, no college. . . . . . . . . . . . . . Some college or Associate degree . . . . . . . . . . . . . . . . . . Bachelor’s degree or advanced degree . . . . . . . . . . . . . . . . . . Data not available
EARNINGS $1,250 per month or less . . . . . 23.3% $1,251 to $3,333 per month . . . . 39.8% More than $3,333 per month . . . 36.8%
15.0% 23.0% 25.7% 13.4%
(workers aged 29 or younger) . . . . . . . . . . . 3.0%
INDUSTRY SECTORS BY PERCENTAGE OF ALL BUSINESSES Construction
Health Care & Social Assistance
Finance & Insurance
Accommodation & Food Services
Professional, Scientific & Tech Services
Transportation & Warehousing
Real Estate, Rental & Leasing
15% All Other Industries*
5% Other Services
(except Public Administration)
*Includes Manufacturing; Public Administration; Educational Services; Adminstrative & Support & Waste Management & Redemption Services; Information; Arts, Entertainment & Recreation; Agriculture, Forestry, Fishing & Hunting; Mining; Utilties; Management of Companies & Enterprises.
Source: ESRI Total Residential Population forecasts for 2016
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56
Paul Quinn College Amazon.com Distribution Center Brass-Craft Manufacturing Co University of North Texas at Dallas Methodist Charlton Medical Center Medline Distribution Center Marten Transport Ltd Home Depot Adesa FedEx Ground Distribution Center Walmart Supercenter O’Reilly Auto Parts Distribution Center BLW Place and Finish Trinity River Audubon Center Trinity Forest Golf Club Allied Waste Services Georgia Pacific Distribution Center Consolidated Casting American Standard Distribution Center Medline Distribution Center Ace Hardware Distribution Center Sprouts Distribution Center Unilever Distribution Center Procter & Gamble Distribution Center Whirlpool Distribution Center Oncor System Operating Services Mobis Parts- Hyundai Distribution Walmart Distribution Center Kohls Distribution Center Diab Group Cintas Distribution Center Swift Transportation Dart Transit Company Solar Turbines Bentwood Kitchens Inc AT&T Distribution Center Cedar Valley College Shippers Warehouse Distribution Center L’Oreal Distribution Center Premier Truck Group Niagara Bottling Schneider Mars Petcare Distribution Center Quaker Oats Distribution Center Walmart Supercenter VA North Texas Health Care System Southwest Center Mall Union Pacific Dallas Intermodal Terminal Shippers Warehouse Distribution Center Genco Southwest Molding NFI Industries NFI Pratt Industries Biagi Bros Distribution Center Discount Tire Distribution Center
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 6 1
SPECIAL ADVERTISING SECTION
ALLEN - WELCOME TO THE FAMILY WE KNOW YOUR BUSINESS IS YOUR BABY, AND THAT’S WHY WE’VE CREATED A GREAT ENVIRONMENT TO HELP YOUR BUSINESS GROW. We’re the place to raise your business right. Allen’s community spirit, high-performing schools, nationally recognized parks and recreation facilities, and vibrant economy continue to attract business and residents to our city. We can rattle off the standard stats and accolades (trust us, we have plenty), but we do things differently. And that’s what makes us great — we’re a vibrant and active community that connects our residents, businesses, and workers together to open the door for new opportunities. We’ve got excellent amenities. Great places to live also make for great places to work, making our abundant shopping and dining, entertainment and sports teams, and superior parks and trails a valuable recruiting tool. Every location in Allen is within 5 minutes of one our National Gold Medal Award-winning recreational facilities, offering nearly 1,200 acres in parks and 63 miles in scenic hike and bike trails. We’ve got a diverse, educated population. With our proximity to 35 colleges and universities, businesses in Allen have access to over 1.5 million highly skilled workers within a 30-minute drive. Allen’s exceptional school system also serves residents’ families today while growing a well-prepared workforce for tomorrow. The secret to our success rests in our commitment as a one high school town, creating the best experience for students and maintaining our shared community
6 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
identity. The results speak for themselves: graduating seniors received over $21.5 million in scholarships last year, and our football games had an average attendance of over 18,000. We’ve got space to grow. Over six million square feet of Class A office is being planned in Allen, including The Strand, a 4 million square foot mixed-use development by Hines, one of the largest private developers in the world. The Strand features corporate campuses, retail, and urban living along State Highway 121 just 10 minutes from Legacy and the Dallas North Tollway. Other large developments under construction include The Convention Center at Watters Creek, a $91 million convention center, and four-star hotel, and One Bethany, an amenity-rich complex opening its first 125,000 square feet of Class A office space in February 2018. We’ve got the tools you need to succeed. The Allen EDC may be charged with recruiting businesses, but recruitment isn’t where our relationship ends. Whether it is a simple introduction to other community members, fulfilling research needs, or attending the city’s annual job fair, businesses in Allen enjoy a supportive, service-based EDC committed to ensuring their continued growth and success. We’re the place to raise your business right. To find out if this is the family for you, visit AllenEDC.com.
SPECIAL ADVERTISING SECTION
DALLAS ALLEN POPULATION:
99,882 FASTEST GROWING CITIES IN THE NATION:
#16 WORKFORCE WITH BACHELOR’S DEGREE OR HIGHER:
55% AVERAGE HOUSEHOLD INCOME:
$105,679 CONTACT DANIEL S BOWMAN 972-727-0252 700 CENTRAL EXPWY SOUTH, SUITE 210 ALLEN, TX 75013
Welcome to the family. Allen is home to many businesses, and weâ€™re proud of every single one. From our diverse, well-educated population to our business-friendly economic development corporation, we give the companies that call us home the tools they need to succeed. To find out if this is the family for you, visit AllenEDC.com.
The Place to Raise Your Business
SPECIAL ADVERTISING SECTION
ARLINGTON – WHERE BIG DEALS DON’T STOP THE REGION’S PREMIER ENTERTAINMENT DESTINATION IS NOW LEADING THE REGION IN DEVELOPMENT PROJECTS.
ARLINGTON RANKING AMONG NORTH TEXAS ECONOMIC DEVELOPMENT AGENCIES IN DEAL VALUE:
-DBJ DEGREE SEEKERS AT UTA:
45,000 VISITORS PER YEAR:
14 MILLION MILES FROM DFW AIRPORT:
CONTACT ARLINGTON OFFICE OF ECONOMIC DEVELOPMENT 101 W ABRAM ST, ARLINGTON, TX 76010 (817) 459-6155
Home to three professional sports teams, two world-class theme parks, and some of the largest concerts in the Metroplex, Arlington attracts over 14 million visitors each year. But it’s more than just tourists who are attracted to Arlington — a long list of high profile businesses and developments have recently made Arlington their home. In fact, over the past year, Arlington’s value of economic development deals surpassed all other Metroplex communities. It has been hard to miss Arlington in the headlines recently. Since General Motors announced a $1.4 billion investment in its Arlington Assembly Plant in mid-2015, the city has hardly gone a month without another big announcement. Such announcements have included the headquarters of Fortune 500 homebuilder, DR Horton; a $1 billion new stadium for the Texas Rangers; a $400 million mixed-use entertainment district, Texas Live, and the 300-room Live by Loews hotel; a 1.6 million-square-foot industrial development, Park 20/360; and several major distribution centers for companies like UPS and Summit Racing. All in, these deals have amounted to investments of more than $3.2 billion over the past two years. While Arlington has definitely had a recent uptick in development activity it is no stranger to large projects. Centrally positioned between Dallas and Fort Worth, Arlington is a convenient home base for companies doing business across
6 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
the Metroplex. A mere eight miles from Dallas Fort Worth International Airport, Arlington executives can easily travel to either coast in no time at all. Arlington’s position along two major interstates and premier rail lines make the city a no-brainer for supply chain and distribution companies. Such qualities are why Arlington was among the first DFW suburbs to develop and why it was the site of one of the country’s first master-planned business parks, the Great Southwest Industrial District. While Arlington’s position in the community has always made it a prime location for business, businesses are increasingly being drawn for other reasons; chief among these being the University of Texas at Arlington. UT Arlington is now on its way to being the largest university in the University of Texas system. With 45,000 degree seekers in Arlington, companies are attracted by the educated workforce that Arlington has to offer. Now that UT Arlington is a tier-one research institution with nationally ranked science and engineering programs, the business case for Arlington is even more compelling. With all the recent capital invested, the booming job market, and the exponential growth of UTA, there’s a lot to be excited about in Arlington. Branded as “the American Dream City,” dreams are coming true, and the future is bright in Arlington.
SPECIAL ADVERTISING SECTION
Perfect Location | Vibrant Economy | Can-Do Culture
101 Ce nter
ive! Texas L
D.R. Hor ton
JOIN THE TEAM
Arlington welcomes corporate relocations, new business partnerships and redevelopment opportunities. The future is bright and the economy is strong in the American Dream City. IN THE NEWS: • • • • • • • •
Rangers, City Announce Texas Live! $250 Million Entertainment Complex & Hotel/Convention Facility UPS to Open Regional Hub in Arlington Bringing 1,400 Jobs GM Financial Announces $35 Million Addition to Arlington Operations Center Champions Park 14-Acre Mixed-Use Development to Include Retail/Restaurants and Festival Park 101 Center Mixed-Use Development Set to Bring Innovation, Excitement and Urban Living to Downtown Summit Racing Announces $82 Million Regional Distribution Center and Superstore Coming to Arlington D.R. Horton, America’s Largest Home Builder, Relocates Corporate Headquarters to Arlington GM Invests $1.4 Billion In Expansion of the Arlington Assembly Plant
Office of Economic Development
ArlingtonTX.gov/ecodev | 817-459-6155 | email@example.com
SPECIAL ADVERTISING SECTION
DALLAS THE COLONY AVERAGE HOUSEHOLD INCOME:
$131,697 RETAIL TRADE AREA POPULATION:
155,425 EDUCATIONAL ATTAINMENT, BACHELOR’S DEGREE OR HIGHER:
54% MEDIAN AGE:
35 CONTACT KERI SAMFORD, EXECUTIVE DIRECTOR OF DEVELOPMENT THE COLONY ECONOMIC DEVELOPMENT CORPORATION 972-624-3127 EDC@THECOLONYTX.ORG WWW.THECOLONYEDC.ORG
THE COLONY ECONOMIC DEVELOPMENT CORPORATION: AWARD-WINNING COMMERCIAL AND RESIDENTIAL DEVELOPMENTS AND A LAKESIDE LOCATION WITH EASY ACCESS TO ALL POINTS OF THE DFW METROPLEX ADD UP TO A BRIGHT FUTURE FOR THIS VIBRANT COMMUNITY! Located 25 miles north of Downtown Dallas on Lewisville Lake, The Colony is experiencing an exciting pace of quality growth. Award-winning projects include Nebraska Furniture Mart, anchoring the 400-acre Grandscape Development; The Cascades, a mixed-use development on SH 121; and Austin Ranch, another beautiful mixed use development minutes from SH 121.
REAL EXPERIENCES The brands opening and expanding in The Colony reflect what today’s consumer wants: an experience! With a Retail Trade Area that has almost tripled in 15 years to 155,425, The Colony continues to attract popular brands like Topgolf, Scheels and Galaxy Theatre, and unique concepts like Hard 8 Barbecue and KISS frontman Gene Simmon’s Rock & Brews restaurant. Other destination-level venues include Lava Cantina, a 28,000-square-foot restaurant and live music depot and The Shacks Dining and Dog Park. Best of all, you can easily spend the time necessary to explore it all with multiple high-quality accommodation choices including the newly-opened Marriott Courtyard, Hyatt Place, Holiday Inn, La Quinta, and Hampton Inn & Suites.
REAL EASY Thanks to the City’s ongoing investment in infrastructure, accessibility along major road systems including S.H. 121 and Main Street are keeping pace with the dramatic growth in the community and throughout the region. Drive times to key locations are equally convenient: get to DFW International Airport in 15 minutes; Downtown
6 6 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
Dallas in 25 minutes; I-35 in under 10 minutes; and Dallas North Tollway in five minutes or less.
REAL OPPORTUNITY Businesses are expanding or relocating to The Colony and bringing the added benefit of jobs and sales and property tax revenue. Companies like Panasonic and Quest Resource Management have recently moved to The Colony, while long-time partners like Edward Don & Co. and RAVE (formerly Pizza Inn) continue to thrive.
REAL LIVING Beautiful master-planned communities like The Tribute showcase award-winning golf courses and provide a diverse choice of homes with access to the recreation offered by Lewisville Lake, hike and bike trails, parks, sports complexes and even a Hawaiian Falls Water Park. Accolades confirm The Colony’s desirability for living, working, and visiting. CNN/Money magazine has recognized the city as one of the Top 20 Best Places to Live in the U.S., and The Colony is a perennial on the top of D Magazine’s Best Suburbs list. Other honors include being named one of the Top 5 Healthiest Housing Markets by smartasset.com, and a Top 15 Safest Texas City by Safewise.
REALIZE YOUR VISION While this great community has grown, there’s still room for your business or family with prime office/ flex, light industrial, retail and residential space available. To learn more, visit www.thecolonyedc. org.
SPECIAL ADVERTISING SECTION
OFFICE/FLEX • INDUSTRIAL • RETAIL • RESIDENTIAL AWARD-WINNING COMMERCIAL DEVELOPMENTS IDEAL FOR CORPORATE RELOCATIONS BUILDING FOR THE FUTURE UPSCALE LIVING & RECREATION IN THE HEART OF D/FW METROPLEX
Keri Samford, Executive Director of Development 972.624.3127 • firstname.lastname@example.org • www.TheColonyEDC.org
SPECIAL ADVERTISING SECTION
DALLAS IS NORTH AMERICA’S CITY CENTER
DALLAS POPULATION GROWTH SINCE 2010:
+100,000 DAILY CITY WORKFORCE:
1.13 MILLION SMALL BUSINESSES:
59,000 BUSINESS ACCELERATORS/ INCUBATORS:
17 CONTACT J. HAMMOND PEROT 214.670.1685 JOSEPH.PEROT@ DALLASCITYHALL.COM 1500 MARILLA STREET, 5CS DALLAS, TEXAS 75201
BIG TO SMALL, THE CITY OF DALLAS OFFICE OF ECONOMIC DEVELOPMENT CAN HELP ANY COMPANY REACH ITS POTENTIAL. Dallas is the urban heart of the most dynamic and diverse metropolitan economy in the United States. The city center is the hub of DFW’s talent, technology, culture and infrastructure. With a rich history of success, entrepreneurship, art and family, Dallas is the perfect reflection of an increasingly interconnected world. Business. Dallas is home to diverse industry leaders, including AT&T, Texas Instruments, Southwest Airlines, Tenet Healthcare, Jacobs Engineering, and Neiman Marcus. From the tallest downtown high-rise to the modern custom corporate campus, Dallas is the city with a perfect place for any office. Skills. With access to a labor force of 3.6 million, Dallas is ideally positioned to draw the brightest and best for all business needs. The City’s diverse neighborhoods, lifestyles and culture draw talent of all ages. Ideas. In Dallas, ideas become industries. The city’s legacy of innovation includes convenience retail (7 Eleven), modern computing (Texas Instruments), information technology (EDS), casual dining (Chili’s), Internet streaming video (Broadcast.com) and even the frozen margarita (Mariano’s). Today’s entrepreneurs build on this foundation in a vibrant and supportive startup community centered in downtown with one of the largest collections of co-working spaces, accelerators, forums, and funders in the southern U.S., all within walking distance. Networks. Dallas is connected to the world, with
6 8 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
two large airports, five major interstate highways and three major freight railroads, 35% of the U.S. population is within a 48-hour truck haul, 98% within 48-hours by rail, and all major North American business centers are within a four-hour flight. DFW’s transportation networks converge on Dallas, including major highways and the region’s only comprehensive mass transit system. Dallas Love Field is a convenient base for domestic air travel, within minutes of the City’s major business centers. Living. Get the character that only an urban center can provide, with a collection of neighborhoods and housing options to meet every need. From high-rise apartments and condominiums to new townhomes and classic single-family homes, life in Dallas is great. Over 23,000 acres of parkland, a renowned 145-mile trail network, nationallyranked schools in nine different districts, eclectic and opulent retail choices and a vibrant, innovative restaurant scene provide a high quality-of-life. Culture. Bigger and better, Dallas has the nation’s largest arts district, exquisite museums, world-class sporting venues and exciting nightlife. Home to the State Fair of Texas, White Rock Lake, the Great Trinity Forest, NorthPark Center, the PGA Tour Byron Nelson Championship and the Dallas International Film Festival, and birthplace of southwestern cuisine, Dallas offers a slice of Texas and the world. Make Dallas the center of your business plan. For more information on how to partner with the City, please visit the City of Dallas Office of Economic Development at www.dallasecodev.org
SPECIAL ADVERTISING SECTION
HAPPEN IN DALLAS
WHEN YOU PARTNER WITH US
The City of Dallas Office of Economic Development is here to partner with you on your project, big or small. When youâ€™re ready to discuss your business or development needs, contact us: (214) 670-1685 DallasEcoDev.org
BUSINESS. SKILLS. IDEAS. NETWORKS. LIVING. CULTURE. Photography: Large Dallas skyline, Dallas Love Field Airport - Urban Fabric Photography; Winspear Opera House - DCVB
SPECIAL ADVERTISING SECTION
$53,128 AVERAGE HOUSEHOLD INCOME:
$71,700 RESIDENTS WITH HIGH SCHOOL DIPLOMA OR HIGHER:
92.5% MINUTES FROM DOWNTOWN DALLAS:
15 CONTACT: DESOTO ECONOMIC DEVELOPMENT CORPORATION (972) 230-9611 211 E. PLEASANT RUN ROAD DESOTO, TEXAS 75115 WWW.DEDC.ORG
DESOTO, TEXAS IS AT THE HEART OF BUSINESS THE DESOTO DIFFERENCE The “DeSoto difference” is evident around every corner. Conveniently located in southwestern Dallas County, DeSoto is home to thriving neighborhoods, award-winning homeowners associations, a growing tax base, a competitive school system, and state-championship teams. Companies, both large and small, within the city’s Eagle Business & Industrial Park continue to cultivate products that serve as an enhancement to the lives of citizens around the world. DeSoto has a rich history of businesses that thrive — locally, nationally, and globally. Its future is even more promising as the city continues to build an even stronger pipeline of highly skilled and highly educated workforce. DeSoto’s private and public schools are exceptional with special emphasis on STEM curriculum and international baccalaureate programming. With budding economic sectors in medical, hospitality, and aviation, coupled with over 400 acres of undeveloped land, DeSoto has plenty to offer a business looking to grow.
LOCATION, LOCATION, LOCATION Located just 15 minutes from downtown Dallas, DeSoto sits at the crossroads of several major U.S. thoroughfares. • Interstate 20 (I-20) spans over 1,500 miles from South Carolina to Texas. • US Route 67, also covering more than 1,500
7 0 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
miles, runs across the Central United States from Iowa through DeSoto and down to Texas’ border with Mexico. • Interstate 35 (I-35E) runs from the border of Mexico through DeSoto and into Oklahoma. • Interstate 45 (I-45) originates in Dallas and leads south to the Gulf of Mexico.
DEVELOPING THE RIGHT INCENTIVES The DeSoto Economic Development Corporation is a non-profit, Section 4A company funded by sales tax revenue to foster local prosperity while maintaining an excellent quality of life and minimizing local taxation. The company aims to assist businesses with a seamless relocation to DeSoto by providing site selection search assistance, competitive incentives, a skilled workforce, and a prime location in the Dallas-Fort Worth metroplex. Whether your company needs a new commercial office building on I-35, a manufacturing facility on a hill overlooking downtown Dallas, a fulfillment warehouse, or a service-oriented facility, DeSoto is the place to build your business, raise your kids, enjoy life, and retire in style. We offer a wide variety of competitive incentives to help businesses grow and prosper. Incentives range from tax abatements, tax exemptions and land cost assistance to sales tax rebates, site search assistance and more. The DeSoto Economic Development Corporation is ready to go the extra mile for your business.
53,128 DESOTO POPULATION
AVG. HOUSEHOLD INCOME
AT THE HEART OF BUSINESS
HIGH SCHOOL DEGREE OR HIGHER
15 10 31
MINUTES SOUTH OF DOWNTOWN DALLAS MINUTES FROM THE DALLAS EXECUTIVE AIRPORT MINUTES FROM THE DFW INTERNATIONAL AIRPORT
Business and industrial park offering more than 400 acres of land with easy access to I-35E, I-20, and I-45
Low-cost, building-ready land with an existing space inventory
Home to Kohl’s e-Commerce Fulfillment Center, Solar Turbines – A Caterpillar Company, and Sam’s/Wal-Mart Distribution
Development plans that aid in our partners success
FOR MORE INFORMATION CONTACT:
DeSoto Economic Development Corporation 972-230-9611
C .O R
211 E. Pleasant Run Rd. DeSoto, TX 75115
FAIRVIEW SPECIAL ADVERTISING SECTION
DALLAS FAIRVIEW AVERAGE HOUSEHOLD INCOME:
$106,220 RESIDENTS WITH BACHELOR DEGREE OR HIGHER:
57.5% MEDIAN AGE
50.7 LAND AREA:
5,492 ACRES/ 8.58 SQUARE MILES CONTACT: RAY DUNLAP ECONOMIC DEVELOPMENT MANAGER 972-886-4222 RDUNLAP@FAIRVIEWTEXAS.ORG 372 TOWN PLACE FAIRVIEW, TX 75069
FAIRVIEW … WHERE COMMUNITY MEETS OPPORTUNITY The Town of Fairview is a unique North Texas community, offering excellent growth opportunities for businesses without sacrificing the quality of life Fairview is known for. Fairview’s easy access to the entire North Texas region, including award-winning educational institutions and a diverse, well-educated workforce gives businesses a competitive advantage in an ever-changing global economy. Locating in Fairview puts you in close proximity to all forms of transportation that help promote business growth; Fairview is bordered by U.S. 75, providing direct access to Downtown Dallas, and SH 121, with high-speed access to DFW International Airport. There are more than 450 acres of green space available along the US-75/121 intersection within the Commercial Planned Development District (CPDD). Current and proposed infrastructure make it the perfect choice for office, retail, and corporate campuses. Unique zoning allows for commercial, retail, single-family, and multi-family uses. With a retail trade area comprised of both strong demographics and psychographics to match the town’s pro-business attitude, retailers and developers will find Fairview is right for them. The more than 8,000 people who call Fairview home enjoy the idyllic setting of rolling hills and natural creeks. The award-winning schools and high quality of life are the top reasons executives from all over Dallas choose to call Fairview home, making it the leading North Texas community to both live and work. Many of the town’s developed subdivisions
7 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
consist of one- and two-acre home sites. Popular with families with children, “empty nester” professionals, and retirees alike, Fairview retains its rural flavor while continuing to quietly grow each year. A quality education is one of the cornerstones of sustained, long-term economic development. Fairview is fortunate to be served by the McKinney and Lovejoy Independent School Districts, both of which are recognized for their commitment to quality education. In addition to fine academic programs, these school districts offer a well-rounded menu of extracurricular activities. Located nearby, Collin College offers a wide range of classes for those seeking a degree or merely wanting to increase their knowledge. Fairview enjoys all the conveniences of modern cities — dining, shopping, and entertainment. Individuals can delight in fine dining at our local hotspots or go more casual with burgers or pizza. After dinner, you can explore Fairview Town Center — you can shop, watch a movie at iPic Theatre, bowl at Splitsville, or catch one of the many highly rated shows at Fairview Youth Theatre. Noah’s of Fairview, located in Fairview Town Center, is available for private events and meetings. Two hospitals (Texas Health Presbyterian Allen and Medical City, McKinney) are located virtually on the north and south borders of Fairview. The mission of the Fairview Economic Development Corporation is to develop and nurture a diverse, vibrant economy consistent with the values and goals of the community, making Fairview a top choice for businesses and executives.
SPECIAL ADVERTISING SECTION
If You Can Dream It You Can Build It In...
Fairview,TX Land available for office, retail and corporate campuses Existing 200 acre mixed-use development Exceptional home values Top rated schools
Contact: Ray Dunlap972-886-4222FairviewTexasEDC.com
SPECIAL ADVERTISING SECTION
FARMERS BRANCH: THE PICTURE-PERFECT PLACE TO LIVE, WORK AND PLAY RANKED IN THE DBJ TOP 4 ECONOMIC DEVELOPMENT AGENCIES QUICK FACTS :
• 20 minute primary trade area responsible for 51,112 businesses and 1,211,467 employees • Primary trade area purchasing power is $83,443,084,227
• • • • •
12.8 miles to DFW International Airport 11 .5 miles to Love Field Airport 13.5 miles to Downtown Dallas 22 miles to Frisco 35 miles to Fort Worth
Bordered by 1-35, 635, and the Dallas North Tollway, Farmers Branch is perfectly located with easy access to wherever you need to go. And Farmers Branch Station provides direct access to the DART Light Rail for you and your employees.
FARMERS BRANCH POPULATION:
31,719 MEDIAN AGE:
Contact the Farmers Branch Economic Development Department to discuss generous incentive packages. Allison Cook — Director of Economic Development and Tourism
74 / 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
972.919.2509 SPECIAL ADVERTISING SECTION
FARMERS BRANCH RANKED IN THE
TOP 4 ECONOMIC DEVELOPMENT AGENCIES To learn more about our generous incentive packages contact the
FARMERS BRANCH ECONOMIC DEVELOPMENT DEPARTMENT Allison Cook , Director of Economic Development and Tourism, 972.919.2507
SPECIAL ADVERTISING SECTION
BRING YOUR DREAMS TO FRISCO, TEXAS Hundreds of people relocate to Frisco each month, so we understand the challenges and opportunities that come with being the “new kid on the block.” With a five-year compound annual growth rate of 4.7 percent, Frisco specializes in turning change and new beginnings into a success story for people and businesses alike. The city’s innovative culture is a magnet for a highly educated and diverse workforce, many of whom are raising the next generation of innovators in one of the safest and most prosperous places in America. True and lasting partnership among the municipal government, public school district, and many community organizations is how a small farming community grew into the city with a $5 Billion Mile. The one-mile stretch along the Dallas North Tollway includes four mixed-use developments, either announced or under construction, worth more than $5 billion in capital investment. One of those, The Star in Frisco, is
7 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
home to the world corporate headquarters and training facility of the Dallas Cowboys. In fact, five professional sports teams are headquartered here. Multiple mixed-use developments are ready for corporate relocation, along with Hall Park, one of the largest office developments in North Texas. Frisco’s dynamic business climate is possible through low unemployment and one of the lowest municipal property tax rates in North Texas. The Frisco Economic Development Corporation is here to help when you’re ready to make your corporate move, from offering competitive incentives for qualified projects to connecting your executive team with a network of resources to make a smooth transition. There’s room to grow in Frisco, Texas. Bring your dreams! Learn more about building a better business and a better life at FriscoEDC.com/videos and search #5BMILE on Twitter.
SPECIAL ADVERTISING SECTION
FRISCO RESIDENTS WITH BACHELOR’S DEGREE OR HIGHER:
60% POPULATION AS OF 5/1/2017:
165,770 MEDIAN HOUSEHOLD INCOME:
SPECIAL ADVERTISING SECTION
MESQUITE: THE TRAIL TO SUCCESS REAL. TEXAS. FLAVOR. HAS PRODUCED THE HEALTHIEST HOUSING MARKET IN TEXAS, AN OUTSTANDING EDUCATION SYSTEM, AND ONE OF THE STRONGEST ECONOMIES IN THE REGION. MESQUITE POPULATION SIZE:
14 MILES FROM DOWNTOWN DALLAS CONVENIENCE:
ACCESS TO FOUR MAJOR HIGHWAYS VALUE:
NAMED #1 HEALTHIEST HOUSING MARKET IN TEXAS (SMARTASSET) CONTACT: CITY OF MESQUITE ECONOMIC DEVELOPMENT DIVISION 1515 N. GALLOWAY AVE MESQUITE, TX 75149 (972) 216-6293 CITYOFMESQUITE.COM/ ECONOMICDEVELOPMENT
Positioned in the crossroads of four major highways with a prime location only 15 minutes east of downtown Dallas, Mesquite offers all the amenities of a major metropolitan area, but with the friendly charm and value of small town hospitality. These sought-after qualities have produced the #1 Healthiest Housing Market in Texas, as named by SmartAsset (a real estate resource), with Mesquite residents staying in the city for an average of more than 15 years. Today, more than 140,000 people call Mesquite home with affordable housing, award-winning recreation, an outstanding education system, plus a variety of shopping, dining, and entertainment options. The award-winning Mesquite Independent School District (MISD) is consistently recognized as one of the area’s best public school systems. The district is one of only 14 Texas school districts among 477 in the United States and Canada to be honored by the College Board with placement on its Fourth Annual AP® District Honor Roll. In the 2015-2016 school year, MISD students earned more than 4,000 dual credit hours, and Career and Technology Education students earned 389 industry certifications and licenses. Nearly 40 percent of Mesquite schools are also being rebuilt or renovated to meet the latest standards of innovative learning environments. Mesquite has also emerged as one of the hottest job markets in the Dallas-Fort Worth region with an estimated 1,212 new jobs created by projects approved in 2016 alone. In the same year, new commercial permits increased in value by 200
7 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
percent, from $21 million to $44 million. Projects recently approved include a 375,000-square-foot FedEx Distribution Center with a permit valuation of $27.5 million, an $87 million expansion of an existing United Parcel Service facility, and a new $65-million Ashley Furniture southwest regional warehouse and distribution facility. The city has also been designated a Playful City USA four years running with 76 parks and numerous recreation facilities. The 4.25-mile Heritage Trail system opened in 2015, connecting residents to schools, shopping, recreation centers, and the Mesquite Golf Club, one of the top 50 courses in the region. The Mesquite Arts Center serves as the cultural center for the community and is home to the Mesquite Symphony Orchestra, Mesquite Community Band, and Mesquite Community Theatre. Plus, the Mesquite Championship Rodeo recently opened for its 60th season. With the motto “Real. Texas. Flavor,” Mesquite appeals to people in all stages of life looking for a community that is genuine and authentic.
SPECIAL ADVERTISING SECTION
DALLAS ROCKWALL SPECIAL ADVERTISING SECTION
44,658 MEDIAN AGE:
37 HIGH SCHOOL COMPLETION RATE:
99% 2015 MEDIAN HOUSEHOLD INCOME:
$92,718 CONTACT ROCKWALL ECONOMIC DEVELOPMENT CORPORATION 2610 OBSERVATION TRAIL ROCKWALL, TEXAS 75032 (972) 772-0025 SFRANZA@ ROCKWALLEDC.COM
EXPERIENCE THE BEST Located on Interstate 30 just east of Dallas and nestled on the shores of Lake Ray Hubbard, the City of Rockwall has incorporated two very dynamic aspects of living; the amenities of a big city with hometown charm. The community has grown to become prosperous and known for its expanding businesses and entertainment districts. One of Rockwall’s entertainment districts that stands out considerably is the Harbor. Bordering Lake Ray Hubbard, the Harbor has grown into an exciting location that attracts both local residents and visitors. This district delivers a range of preferences for any occasion from fine dining, weekly concerts during the summer, and the beautiful lake view. The Harbor also appeals to many corporate businesses with Class A office space. The luxurious Hilton Dallas Rockwall Lakefront hotel has abundant conference space to accommodate business gatherings and large events. As Rockwall continues to grow, the quality of life speaks for itself. Family Circle Magazine named
8 0 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
ROCKWALL Rockwall as the “Best Town for Families,” and CNN Money Magazine named Rockwall County #2 for job creation in the United States. Business districts such as the Rockwall Technology Park encompass over 400 acres of land have flourished immensely. Corporations such as SPM, L-3 Technologies, Bimbo Bakeries USA, ColMet Engineered Finishing Solutions, Channell Commercial, Pratt Industries, and many others call Rockwall home. The Rockwall Economic Development Corporation is dedicated to ensuring the growth of Rockwall by attracting and expanding businesses by offering land incentives and site development grants. Businesses are choosing to relocate and expand in Rockwall because of its regional location and interstate accessibility. One of the best things about Rockwall is that it’s far enough from the big cities but close enough to easily get there when needed or desired. Rockwall EDC is actively recruiting businesses — and businesses are growing and prospering here. Come see for yourself!
SPECIAL ADVERTISING SECTION
SPECIAL ADVERTISING SECTION
WELCOME TO CEDAR HILL
WHERE BUSINESS OPPORTUNITIES AND GOOD PLANNING GROW NATURALLY.
It doesn’t take very long to figure out you’ve arrived someplace special when you come to Cedar Hill. Maybe it’s the pristine natural beauty as you drive into town on our FM 1382 nature corridor, maybe it’s the highend shopping that makes Cedar Hill the regional shopping destination for parts of four counties, or maybe the warm feeling you get at a restaurant where everyone really does “know your name.” Whatever the reason, Cedar Hill offers the perfect place to live, work, and play in an environment that is simply different from any other — an environment where opportunities really do grow naturally. Cedar Hill has enjoyed a longstanding culture of value-based leadership. A clear, consistent vision, a commitment to develop and implement long-range plans, an expertise in developing partnerships, and a solid focus on community all serve to guide not just where Cedar Hill is going, but why. The result is a stable, vibrant, and intentional environment that is not only business friendly, but a sound and prudent place to invest. Families, businesses, and community grow organically in Cedar Hill, and this works to create the kind of marketplace that discerning businesses need to start, thrive, and grow. From tech start-ups to multinational companies, Cedar Hill has been designed to be a partner for business success. Being only half grown, and in the midst of of one of largest and fastest growing economies in the nation, Cedar Hill’s solid planning, friendly, stable environment, and unique community and business amenities will continue to attract discerning businesses for many years to come.
8 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
INTENTIONAL PLANNING AND VALUES = GROWTH & PROSPERITY A wide range of innovative planning is guiding Cedar Hill into its future. One of most exciting of these is the City Center Plan that is transforming Cedar Hill’s historic downtown and commercial core into the most unique urban center in the region. The mix of integrated residential, retail, office, and community services highly connected with open spaces, trails, bike lanes, and, eventually, transit rail is creating many exciting business opportunities and new ways of calling Cedar Hill home. Another key element is Cedar Hill’s innovative, sustainable land use planning, which balances growth with a deep commitment to preserving and connecting its natural spaces. Working in concert with its open space partners like Cedar Hill State Park and Dogwood Canyon Audubon Center, the City is preserving 20% of its land area to insure it will continue to flourish and set Cedar Hill apart as a model. Other plans include creating a vibrant tourist economy centered on Cedar Hill’s iconic natural attractions, historic downtown charm, and high-end shopping attractions. Significant transportation infrastructure enhancements are planned, including capacity and congestion upgrades to U.S. 67, and also Future Loop 9, which will connect Cedar Hill’s industrial and commercial areas directly to I-45, I-35, and other fast-growing areas within our expansive trade area. As the North Texas region continues to experience dramatic growth, the most successful communities will be those that are connected, distinctive, and discerning about who they are and where they are going. In this regard, Cedar Hill is uniquely positioned
for business and community success. As one of the oldest communities in Dallas County, commerce has always been a key part of the community and the environment. From its earliest days as a trading hub, agricultural center, and railroad destination, to the vibrant, highly diversified economy that is emerging today, Cedar Hill has been deliberately designed to perfectly balance quality business and community growth within the stunning natural beauty that makes Cedar Hill the prettiest part of North Texas. Cedar Hill’s unique natural qualities, strategic central location, excellent connectivity, and solid infrastructure supports a wide range of business sectors and are just a few of the reasons why so many national and regional brands of distinction are calling Cedar Hill home. Brands such as Dillard’s, H&M, J.C. Penney, Burlington Coat Factory, and Home Depot all add to over 2 million square feet of retail and office space that make Cedar Hill a regional retail and business service hub. Cedar Hill’s industrial sector is exceptionally diversified. The ease of connectivity to the region, availability of freight rail, and abundant well-educated human capital promotes growth and profitability in industries from metal fabrication and distribution centers to commercial fixture and aeronautical component manufacturing.
SPECIAL ADVERTISING SECTION
EMPLOYEES GLADLY CALL MCKINNEY HOME McKinney offers the perfect mix of successful business development; strategically located 30 minutes north of Dallas, a highly-educated workforce, available space opportunities, competitive incentives, and a nationally acclaimed quality of life. Home to McKinney National Airport, a first-class corporate aviation airport with on-site U.S. customs, the city is also within minutes of DFW International and Love Field airports connecting you to nearly every major global market. Local companies range from Fortune Global 500 corporations to homegrown startups. McKinney has moved forward on several fronts to create new opportunities for economic growth in the coming years and is firmly focused on attracting, retaining, and expanding businesses that add vitality to the local economy. McKinney is a community where businesses flourish, and employees gladly call home. Rich with history and home to a thriving historic district,
DALLAS MCKINNEY POPULATION:
McKinney offers a welcoming family atmosphere with its mix of charming neighborhoods, growing business districts, serene natural settings, and multiple recreational opportunities that all come together to form a balanced way of life. The friendly, safe, and inviting city holds strong ties to its roots and history while enjoying growth and development. People and businesses alike relish the sense of place and authenticity that makes McKinney “Unique by nature.”
168,000 DEVELOPED WITHIN CITY LIMITS:
60% BACHELOR DEGREE OR HIGHER:
McKINNEY, TEXAS The Best Place to Live, Work, Play
McKINNEY ECONOMIC DEVELOPMENT CORPORATION McKINNEYEDC.COM • INFO@McKINNEYEDC.COM • 972-547-7651
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 8 3
SPECIAL ADVERTISING SECTION
NORTH RICHLAND HILLS: FIND YOUR PERFECT FIT NORTH RICHLAND HILLS
NORTH RICHLAND HILLS AVERAGE NEW HOME VALUE:
$400,000+ BRICK & MORTAR BUSINESSES:
1,200 MILES OF HIKE & BIKE TRAILS:
With benefits like a central location, an educated and abundant workforce, and superior quality of life amenities, North Richland Hills (NRH) is the perfect place for your business’s success. NRH is strategically located 15 minutes from DFW Airport, the Alliance Global Logistics hub, and downtown Fort Worth. For nearly 70,000 residents, NRH offers a seamless balance of the conveniences of suburban living with easy access to all of the necessary urban resources and amenities, while also being consistently ranked as one of DFW’s safest cities. NRH has received a number of accolades in the past year, including being ranked as one of the “Top 10 Best Neighborhoods in DFW” by the Dallas Morning News. In addition, the City was designated as a Platinum Level Scenic City for our dedication to cohesive design standards and maintaining the natural beauty of our environment. Finally, special recognition was given to our Home Town development
CRAIG HULSE, CECD – DIRECTOR OF ECONOMIC DEVELOPMENT
by the American Planning Association, which named it as one of its “Great Neighborhoods”. In 2016, North Richland Hills again saw record levels of growth with $200 million in new construction development, the opening of 75 new businesses, and over 250 single-family starts with an average value over $400,000. This impressive growth places NRH as one of the fastest-growing cities in Tarrant County and DFW. To find your perfect fit in North Richland Hills, visit www.NRHED.com. —
| NORTH RICHLAND HILLS
THE FINAL PIECE OF YOUR PUZZLE 15 MINUTES FROM DFW Airport Downtown Fort Worth Alliance Airport
Degreed professionals within a 20 minute drive
Commuter rail between Downtown Fort Worth & DFW Airport in 2018
8 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
Greg Kraus, Chairman Ran Holman, Vice 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.
Bank of Texas
Real Estate Deal Sheet
Cushman & Wakefield of Texas, Inc. Davidson & Bogel Real Estate
Sarofim Realty Advisors
LegacyTexas Munsch Hardt Kopf & Harr P.C.
Spirit Realty Capital
Crow Holdings Capital Partners, L.L.C.
Granite Properties Jackson Walker L.L.P. JLL Republic Title of Texas, Inc. Stantec Stewart Title Winstead PC
PRESIDENT’S CIRCLE 42 Real Estate, LLC Balfour Beatty Construction
Bank of America Merrill Lynch CBRE Chief Partners LP Eastdil Secured Frost Bank GFF Invesco Real Estate
The Howard Hughes Corporation BENEFACTOR’S CIRCLE Adolfson & Peterson Construction American National Bank of Texas Arch Con Corporation Bank of the Ozarks BB&T BBVA Compass Beck Group Berkadia Commercial Mortgage Bradford Companies Capital One Bank Capright, LLC Colliers International Communities Foundation of Texas Compatriot Capital Corgan Associates, Inc Corinth Properties
DPR Construction, Inc.
Stream Realty Partners
The Retail Connection
TIER REIT, Inc.
Gaedeke Group LLC
Gardere Wynne Sewell LLP
Trammell Crow Company
Walker & Dunlop
HALL Financial Group
Wells Fargo Bank
Haynes and Boone, LLP
Westmount Realty Capital, LLC
Holt Lunsford Commercial Hunt Mortgage Group
Inwood National Bank
Hilton Anatole Hotel
Jones Day JPI Kane Russell Coleman & Logan PC KeyBank Locke Lord LLP Matthews Southwest Mill Creek Residential Trust LLC Mohr Partners OMNIPLAN, Inc. ORIX Real Estate Americas
WHO WE ARE TREC is where 2,000 commercial real estate professionals spark community transformation, influence policy, and propel careers in DFW and beyond. Only TREC provides the road map for success and the platform to Build the City You’ve Imagined. SUMMER 2017
Learn more at recouncil.com or by calling 214-692-3600.
D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W / 8 5
C COMMUNITY The Dallas Regional Chamber recognizes the following companies and organizations for their membership investment at one of our top levels. Bolded companies are represented on the DRC Board of Directors. For more information about the benefits of membership at these levels call Diana Rivas-Smith at (214) 746-6744.
Dr Pepper Snapple Group
BOARD OF ADVISORS
Exxon Mobil Corporation
Boeing Global Services
Cook Children’s Healthcare
Corgan Associates, Inc.*
Toyota Motor North America*
Forest City Texas, Inc.
Frito-Lay North America*
AlixPartners Altair Global*
Haynes and Boone, LLP*
American Heart Association
Dallas County Community College District*
HEB and Central Market
Baylor Scott & White Health*
Highland Capital Management LP*
Andrews Distributing Armanino, LLP
Capital One Bank* Chase* Chickasaw Nation*
Hilton Anatole* HKS* IBM Corporation
Dallas Fort Worth International Airport*
Jones Day* KPMG LLP*
Kroger Food Stores*
Hilti North America*
Littler Mendelson, P.C.*
Hunt Consolidated, Inc.*
Locke Lord LLP*
Methodist Health System*
Tom Thumb Food & Pharmacy
NEC Corporation of America*
New York Life Regional HQ
Omni Dallas Hotel Omnitracs*
Amegy Bank of Texas*
Sheraton - Dallas
Southern Glazer’s Wine & Spirits*
Spirit Realty Capital
Axxess* Baker Botts L.L.P. BB&T* BBVA Compass* CBRE Group, Inc.* Children’s Health System of Texas* Citi* Copart*
Dallas Wings Dallas Stars Hockey Club*
Dallas Women’s Foundation
Bain & Company, Inc.
Dean Foods Company
Baker & McKenzie, LLP
Bank of America*
Bank of Texas*
Dunavant Distribution Group
Barnes & Thornburg
Emmitt Smith Enterprises*
BDO USA LLP*
Ebby Halliday, Realtors*
Edelman PR Worldwide
Bell Nunnally & Martin LLP
EN Consulting, Inc.
Brasfield & Gorrie
The Beck Group*
Blue Cross and Blue Shield of Texas*
Big 12 Conference
Fox Sports Southwest
Bracewell & Giuliani LLP Boomtime Boston Consulting Group* Bottle Rocket Brierley+Partners* Brinker International, Inc. Business Wise C.C. Young
Texas Central Partners*
Carrington, Coleman, Sloman & Blumenthal, L.L.P.
Texas Health Resources*
Century 21 Judge Fite Co.*
Texas Scottish Rite Hospital for Children
Choctaw Nation of Oklahoma*
Thomson Reuters, Tax &Accounting*
City Electric Supply
Dallas Cowboys Football Club
CHRISTUS Health Civitas Capital Group*
Federal Reserve Bank of Dallas Freeman* Frost Bank* Furniture Marketing Group* Gardere Wynne Sewell LLP* Gensler Grant Thornton L.L.P.* Greenberg Traurig, LLP Gruber Elrod Johansen Hail Shank LLP Gulfstream Aerospace Corp. Gupta & Associates Hall Financial Group HDR Inc. Heritage Health Solutions
CliftonLarsonAllen LLP ClubCorp Inc.*
Dallas Morning News
UT Southwestern Medical Center*
Hilton Garden Inn Downtown Dallas
Commemorative Air Force
Corrigan Investments, Inc.*
8 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
Hill + Knowlton Strategies Hill & Wilkinson*
Aviall, A Boeing Company
Holland & Knight LLP*
Southwest Office Systems*
Balfour Beatty Construction*
Ocean Prime Restaurant
Beasley, Hightower & Harris, P.C.
Peter O’Donnell, Jr.
Hoar Program Mgmt.*
Squire Patton Boggs
PGIM Real Estate Finance
HPI Real Estate & Ross Tower*
BMO Transportation Finance
Post Properties, Inc.
BOKA Powell, LLC*
Primoris Services Corp.
State Farm Insurance*
The Ritz-Carlton, Dallas
Int’l Leadership of Texas
Stout Risius Ross
Strasburger & Price, LLP*
Imaginuity Interactive Inc.
Strategic Staffing Solutions
Chandler Signs L.L.P.
Republic Title of Texas
Jackson Walker L.L.P.*
Susan G. Komen
CityDoc Urgent Care
Ruth’s Chris Steak House
JE Dunn Construction JLL*
Texans Can Academies
Crowe Horwath LLP*
Russell Reynolds Associates, Inc.
Texas A&M University
Kilpatrick Townsend & Stockton LLP
Texas Woman’s University*
Dave and Busters
Thompson & Knight LLP*
DeGolyer and MacNaughton
Serta Mattress Co.
Domain at Midtown Park
Sewell Automotive Companies*
Lockwood, Andrews, & Newnam
Trane Commercial Systems
Mary Kay, Inc.*
Southwest International Trucks
Essilor of America, Inc.
Turner Construction Co.*
Estrada, Hinojosa & Company, Inc.*
Miller, Egan, Molter & Nelson LLP
UMB Bank N.A.*
Fogo De Chao
Staff One HR
University of North Texas*
Foster Blair Consulting, LLC
State Fair of Texas
McKinsey & Compnay, Inc.
University of Texas at Arlington*
Gables Residential Trust
Stream Realty Partners*
Moss Adams LLP
University of Texas at Dallas*
Structure Tone Southwest*
Munck Wilson Mandala, LLP
George W. Bush Foundation*
Texas A&M University
Gibson, Dunn & Crutcher LLP
Texas Capital Bank*
Newmark Grubb Knight Frank
G6 Hospitality LLC
Texas Rangers Baseball Club*
Northwood University Norton Rose Fulbright*
Village Green Holding, LLC
H Mart Companies Inc.
Halff Associates, Inc.*
The Westin Dallas Downtown
NTT Data, Inc.
Vinson & Elkins L.L.P. Walgreen’s Company
Hart Group, Inc.
Willis Towers Watson*
Oscar Health Insurance
Weber Shandwick Southwest
Hazel’s Hot Shot, Inc.
Tradition Senior Living
Trinity Basin Preparatory
ORIX USA Corporation
Whitebox Real Estate
Holmes Murphy and Associates*
Whitley Penn, LLP*
Union Pacific Railroad
Weil, Gotshal & Manges LLP
University of Phoenix
PDS Technical Services*
Hunt Construction Group*
Hunton & Williams LLP
Virgin America Airlines
Women’s Food Service Forum*
Huselton, Morgan & Maultsby, PC
J-BJ Marketing LLC
W Dallas – Victory Hotel
Premier Truck Group PSA Constructors, Inc.
AAA Texas, Inc.
Joule, A Luxury Collection Hotel
Account Control Technology, Inc.
Kiewit Infrastructure South, Co.
Acme Brick Company*
RSM US LLP
Rosewood Crescent Hotel
Rosewood Property Co.
Advocare International, L.P.
Linebarger Goggan Blair & Sampson, LLP*
Alamo Drafthouse Cinemas
MW Logistics, LLC
Sidley Austin, L.L.P.
MWH Americas, Inc.
APAC - Texas, Inc.
Munsch Hardt Kopf & Harr, P.C.
Southern Methodist University*
Ash Grove Cement Company
Networking Results, Inc.
WageWorks Walter P Moore Walton Development and Management* Weaver* Whiting-Turner Construction Woodbine Development Corporation YP Marketing Solutions
* Building Tomorrow Together Fund Investors
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 / 8 7
GROWING FOOD AND HOPE FOR A COMMUNITY Developed by Leadership Dallas, the New Hope Garden offers benefits beyond nutritious food BY NICHOLAS SAKELARIS
Nutritious meals, self-sufficiency, and therapy all spring from the New Hope Garden at the Austin Street Center in Dallas. A summer crop of tomatoes, watermelons, cantaloupes, and more will be ready to harvest later this summer, providing food for hundreds of homeless clients who rely on the shelter every day. In the meantime, the garden is tended by the people at the center, giving them a therapeutic outlet for the stress of life. The hydroponics garden was the brainchild of the Leadership Dallas Class of 2017, backed by the Dallas Regional Chamber. The program, which started in 1975, empowers professionals in the Dallas region to become catalysts for positive change in the area. The garden is something the 35-yearold homeless shelter has wanted for a long time, but it took the community coming together with a plan, along with donated labor, in-kind materials, and $120,000 in donations from corporations and individuals to execute it. “We can have a sustainable way to provide nutritious food to Austin Street Center clients, and we can also make it into a work readiness and support program,” said Daniel Roby, executive director of DANIEL ROBY
the Austin Street Center. “If it weren’t for the partnership with the Dallas Regional Chamber, this project wouldn’t have happened. It’s done in such a way that’s supportive of the community, the environment and our guests here at Austin Street Center.” The shelter serves more than 900 meals a day and provides food for 2,700 people a year. Every person who comes to Austin Street Center gets a safe place to sleep and shower along with clothing and meals. The food from the garden will supplement that, Roby said. Companies such as Jacobs Engineering, Halff & Associates, Hunt Consolidated, and HollyFrontier worked together to make the project happen. Scot Sanders was part of the Leadership Dallas class and served as the project manager because of his role with Jacobs Engineering. The people who work in the garden will learn valuable skills so they can grow their own food, becoming self-sufficient while also receiving the therapy that comes from working in the dirt, said Sanders, a principal with Jacobs Engineering.
“If they learn those skill sets and traits they can help feed themselves,” he said. “We’d like to see this spread and definitely participate in more down the road. People are starting to see [that’s a resource] we have available to us. We have land, and we have the knowledge on how to farm it.” He donated his time and effort to manage the project, which he sees as a critical part of Dallas Mayor Mike Rawling’s initiative on poverty. Rawlings released a statement thanking the chamber and Leadership Dallas for working with Austin Street Center to make this happen. “The new garden will truly bring ‘New
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. 8 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
CALENDAR OF EVENTS PHOTO: CHASE MARDIS
Hope’ to Austin Street Center residents by not only providing a source of food and income but also a therapeutic activity for those who struggle with mental health issues,” Rawlings said.
JULY.. JULY 31 ALC Application Deadline Through the Associate Leadership Council (ALC), commercial real estate professionals come together over 10 months to attend leadership development programs, receive personalized training with a professional executive coaching firm and implement a community service project. (TREC)
DIGGING INTO THE GARDEN The New Hope Garden uses traditional raised beds and a modern aquaponic system that recycles water, a first for a Dallas homeless shelter. Here’s how the aquaponic system works: ■ It starts with a tank full of fish, that fertilize the water with their waste. ■ That water is pumped into a plant bed where the fruits and vegetables break down the nutrients from the waste and absorb them. ■ The water is returned to the fish tank, and the process starts again in a closed-loop system. “It uses one-third less water than a traditional garden, so it’s more sustainable and environmentally friendly,” Sanders said. “[The fish] are part of the filter and nutrient system. In the long run, they’ll be able to harvest the fish, too.” In addition to the fruits and vegetables, there’s an herb garden with 15 different plants growing. They’ll also harvest the seeds from the plants so they can continue to grow new crops without having to buy them. Lenny Hughes, director of landscaping architecture and planning for Halff Associates, led the design for New Hope Garden as part of the Leadership Dallas class. He worked after hours putting in his personal
Make plans now to attend these upcoming real estate and business events. For information on programs hosted by The Real Estate Council, visit recouncil.com. For details on events presented by the Dallas Regional Chamber, visit dallaschamber.org.
AUGUST.. time to coordinate the project. Now he’d like to see more. “If these things were placed throughout South Dallas and Oak Cliff along with farmers markets, this could prevent the food deserts that are there,” Hughes said. “We wanted to make sure we had a design that was sustainable, low maintenance and didn’t use a whole lot of water. We looked at using a lot of adaptive plant materials.” The garden also has a shaded pavilion and two pergolas that let in natural light for relaxation and contemplation. There’s even a prayer garden with flowers. “It’s about being more at peace in the garden area,” Hughes said.
DIGGING INTO THE FUNDING The Leadership Dallas Class started raising money for the New Hope Garden in the fall. In the first few months, they got $30,000, but knew much more was needed. Corporate sponsors and individuals stepped up, quickly raising $120,000 in cash. Another $80,000 was donated through in-kind labor and materials. There’s even room to expand the garden with eight more traditional raised beds in the future.
AUGUST 16 Congressional Forum The Anatole This annual event features leaders of our North Texas Congressional delegation discussing important issues that impact our region, including infrastructure, environmental regulations, and federal budget priorities. Following a panel discussion, the representatives will answer questions from the audience. (Dallas Regional Chamber)
AUGUST 17 Capital Markets Summit 7 a.m., Dallas Country Club With a strong regional economy, but an uncertain outlook for the national and global markets, industry experts discuss what challenges and opportunities may lie ahead. TREC and Real Estate Deal Sheet have partnered to bring you the Industry Insights series, presented by D CEO. (TREC)
SEPTEMBER. SEPTEMBER 27 State of Public Education The Anatole Texas Commissioner of Education Mike Morath returns to provide insight into the impacts of education legislation and will be joined by regional superintendents to discuss innovation opportunities for public education in North Texas. Hear updates on statewide and regional public education issues. (Dallas Regional Chamber)
OCTOBER. OCTOBER 6 Giving Gala Hilton Anatole Join us for the annual fundraising event benefitting TREC Foundation. Funds raised will help fulfill TREC Foundation’s mission of strengthening the community in four key areas: education, housing, job creation, and the environment.
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 / 8 9
FIGHTNIGHT XXIX: A HAVANA KNOCKOUT On Thursday, April 27, more than 1,500 people gathered at the Hilton Anatole for the industry’s hottest event of the year — FightNight XXIX — to raise an impressive $1.43 million benefiting TREC Foundation. The 29th year of FightNight kicked off with a special VIP reception where boxers from the Dallas Police Youth Foundation, the 2016 Legacy Leaders Impact Award recipient, showed off their expert boxing moves. Guests were then ushered into the Chantilly Ballroom for an unrivaled black-tie extravaganza to experience the vibrant scene of Havana, Cuba. The soldout evening featured three professional boxing bouts, casino gaming, and Vegas-style diversions, along with second-to-none networking with the “who’s who” of the political community and commercial real estate industry. PHOTOGRAPHY: JAMES EDWARD
BILLINGSLEY FAMILY WITH GREG KRAUS
CROW HOLDINGS’ BRIAN CAVANAUGH; STEWART TITLE’S KATE CAVANAUGH; MUNSCH HARDT’S CHIP CAVANAUGH
SETH PARKER, SUZANNE JONES, STEVE WHITEHEAD, LISA HURD, AND PAUL BRIGHTON
9 0 / D A L L A S - F O R T W O R T H R E A L E S TAT E R E V I E W
CREATING VALUE FOR PEOPLE AND COMMUNITIES Vicky Gunning’s real estate law career has taken her through the region’s economic ups and downs
CHUCK AND KAREN COOPERSTEIN
REPUBLIC TITLE’S LINDSAY CARROLL, VICKI SUMMERALL, MARYBETH SHAPIRO, AND BRANDI WICKS
STANTEC’S GRAYSON HUGHES AND STEPHANIE LAUGHLIN
Vicky Gunning, Managing Partner with Locke Lord LLP’s Dallas office, decided on a law career because of her uncle. The uncle, a practicing attorney in the small town of Stroud, Oklahoma where Gunning grew up, was admired and trusted. But, it wasn’t the deference alone that intrigued Gunning. It was the fact that, each afternoon, her uncle would take the phone off the hook at 3 p.m. sharp, and go have tea. “This was a profession in which I’d be wellrespected,” Gunning said. “And, I’d be able to have tea at 3 p.m., and take the phone off the hook every day.” Needless to say, as a veteran attorney with the Chicago-headquartered law firm, Gunning, doesn’t really take an afternoon tea break. “This is a service-oriented business,” she said. “If you want to keep your practice, you shouldn’t take the phone off the hook and have tea.” However, in her close to three-decade tenure at Locke Lord, Gunning has earned plenty of respect and trust. As the firm’s Real Estate and Real Estate Finance Practice Group’s Co-Chair, Gunning works with financial institutions and venture capital companies on everything from real estatesecured loans to debt restructurings to foreclosures. She also uses her vast array of experience to counsel commercial real estate owners and developers on issues including buying, building, and leasing. It all started in 1990 when Gunning, armed with a law degree from Southern Methodist University, joined Locke Lord. North Texas, at the time, was still reeling from the real estate crash, and Gunning cut her legal teeth on foreclosures and loan workouts. “Two years into my practice, I was thrilled to finally draft a contract for a client to acquire a commercial property,” she said. These days, having been through the region’s economic ups and downs, and drafting and executing thousands of
contracts on behalf of her clients, Gunning said that her favorite part about the practice of commercial real estate law is the relationships, not to mention how commercial real estate builds value within a community. Gunning is also active in the community, partly through her work with The Real Estate Council (TREC), where she serves as the organization’s secretary. “It is the largest and most effective commercial real estate organization in town,” she said. “The group digs into issues that surround being in the commercial real estate industry in Dallas.” This year, she went on to say, TREC is seeking out a catalyst project, something similar to Klyde Warren Park. “We’re looking for something that is transformational, in a part of Dallas that needs and wants it,” she added. Gunning is also very much involved with the Dallas chapter of Commercial Real Estate Women’s Network (CREW), which she calls her “secret weapon.” “Part of the reason I’ve been successful in commercial real estate is because of CREW,” said Gunning, who serves on CREW Network’s international board. Much like her Stroud-based uncle, Gunning believes in building community and relationships. “Despite all the jokes, the law is a noble profession,” she said. “We are helping our clients through challenging situations, and helping them create value for themselves and their communities.”
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 / 9 1
VIEW FROM THE TOP
BY LANCE MURRAY
STEVE DEMETRIOU Chairman and CEO, Jacobs Engineering
International engineering firm Jacobs Engineering moved its headquarters from Pasadena, California, to the Harwood Center Dallas in the fall of 2016. One of the largest engineering firms in world, Jacobs has more than 50,000 employees worldwide. Steven J. Demetriou joined Jacobs as Chief Executive Officer in August 2015 and was appointed chairman of the company’s Board of Directors in August 2016. Demetriou recently took time to answer our questions about the big move.
WHAT WERE THE MAIN REASONS FOR JACOBS RELOCATING TO DALLAS, AND WHY DID YOU CHOOSE THE LOCATION AT HARWOOD CENTER? Jacobs has had a presence in Texas for more than 30 years, and relocating our corporate headquarters to downtown Dallas meant we would benefit from a business-friendly economic environment that enables us to capitalize on the company’s high-performance culture and workforce. Being a professional services company that cuts across most global design, engineering, and construction projects built around the world, our new headquarters location ensures access to top talent and geographically positions us with access to our valued clients and partners around the world. We wanted to be in the heart of downtown, so Harwood Center was ideal. We currently occupy about 100,000 square feet with plans to expand our footprint.
9 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
HOW HAS THE NEW LOCATION MET YOUR NEEDS FOR INNOVATION AND EFFICIENCIES? Our downtown office was designed based on our corporate initiative to provide open concept workspaces and technology to increase collaboration and mentoring at all levels within the company. Texas is home to more than 50 Fortune 500 companies and its robust economic environment aligns nicely with our commitment to continued growth. Our diverse set of businesses, coupled with the employment potential for talent in the state, enable us to deliver innovative solutions that provide superior value to our clients.
WHAT ABOUT RELOCATING TO NORTH TEXAS HAS BEEN THE MOST PLEASANT SURPRISE? We are deeply involved in infrastructure projects throughout the Metroplex, including Klyde Warren Park, the Dallas Independent School district, significant enhancements to Dallas Fort Worth International Airport, extensive work with TxDOT, and Lockheed Martin. We feel very fortunate for how much the North Texas business community has embraced us being here. We were recently selected by Texas Governor Greg Abbott to be featured in the Texas economic development section of the annual Fortune 500 issue in June. We’re very honored and humbled to have received such a grand welcome to the Lone Star state.
THE HEIGHT OF LO C A L E
Ross Towerâ€™s 45 stories of Class A office space provide distinctive accommodations at an iconic, architecturally stunning downtown destination. Conveniently located near Klyde Warren Park and the Arts District, and featuring a selection of on-site dining options and amenities, Ross Tower places you in an unparalleled setting at the heart of the city.
For leasing info contact HUNTER LEE 214.954.3304 email@example.com FA L L 2 0 1 4
R O S S TOW E R .CO M 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
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
FA L L 2 0 1 4
Circle T Ranch, Hotel Boom, Retail Roundtable, The Crane Report