January 7, 2015

Five DFW Game-Changers in 2014

Commercial real estate rocked the DFW economy in 2014. Here are five standouts that are transforming the market.

1) Toyota HQ Relo

It's been a year of HQ relocations to DFW, but Toyota may be the biggest with the announcement of its North American HQ coming from Cali. KDC is heading up the development of the reported $350M Toyota HQ that is on its way to Plano. A groundbreaking is anticipated this month for a 2016 or 2017 move-in. KDC also has the 2.1M SF State Farm corporate campus slated to move in its first occupants in the coming months. Look around these projects and you'll see another flurry of activity from new apartments to leases for companies supporting the big boys. (Heady Investments is already inking deals for Toyota vendors.)

2) Frisco's $5B Mile

Frisco may be one of the most dynamic development concentrations in America with $5.4B in investment announced or under construction within a one-mile stretch of road along the Dallas North Tollway from Warren Parkway north to Lebanon Road. Citigroup Global Markets' Billy Hurst says the Frisco Star development by Jerry Jones (pictured) and Blue Star is a game-changer for the Metroplex. “The development that is set to spur from the Cowboys setting up their HQ at the Dallas North Tollway and Warren is immense. When combined with announcement of Toyota relocating its HQ to Legacy, the entire area of northern Collin County is destined to prosper,” he tells us. Among the projects are the $1B Star (Dallas Cowboys world corporate HQ), the $1.7B Frisco Station (mixed-use developed by The Rudman Partnership with Hillwood Properties and VanTrust Real Estate), the $700M The Gate (Invest Group Overseas's mixed-use project), and the $2B Wade Park (Thomas Land Development's mixed-use project featuring Whole Foods and Hotel ZaZa).

3) Nebraska Furniture Mart & 121 Boom

Nebraska Furniture Mart's almost 1.9M SF project should open in March with its 560k SF retail showroom (the remainder is warehouse and distribution). It's part of a bigger mixed-use development called Grandscape (pictured), which (like Nebraska Furniture Mart) is also backed by Berkshire Hathaway under Warren Buffett's leadership. The retail icon is surrounded by projects from hotels to more retail and residential along a four-mile stretch of SH 121 from the Dallas North Tollway west to Main Street. 

4) Investors Rediscover Downtown

In 2014, Downtown Dallas properties inked 2M SF (give or take) of leases in the urban core (the new term for the CBD), says Downtown Dallas Inc's John Crawford. Not only are the buildings retaining their tenants, but they're attracting relos, he tells us. About 5,000 new jobs moved Downtown in 2014, as well. On the horizon: 10 new hotels within the next 18 to 24 months as well as 35 new restaurants in the works. Plus, there's new life coming to Downtown as investors are buying and redeveloping those previously dying sites.

5) Multifamily Mania

Multifamily dominated 2014 commercial real estate with about 16,000 new units poured into the Metroplex pipeline and there's no slowdown for new deliveries. From senior living to suburban infill and TODs, the projects run the gamut across the region. Uptown, Downtown and the surrounding infill areas top the list of new projects. But, as John tells us, a rising tide floats all boats, and the corporate relos and business expansions are only driving the need for more apartment units to the area. 

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Wells Fargo (Access5) DFW
Addison (Office-5) DFW
CohnReznick (Field) DFW
Bisnow (RawSpace-Crowd)

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Meet New DTZ Chief Exec Joe Stettinius

Monday marked the official merger of DTZ and Cassidy Turley under the DTZ brand (owned by TPG Capital, PAG Asia Capital and Ontario Teachers' Pension Plan). Cassidy Turley CEO Joe Stettinius, now chief executive of the Americas for DTZ, gave us the details. The new company, with $2.9B in annual revenues and more than 28,000 employees globally, will have the benefit of DTZ's global platform and Cassidy Turley's scale in the US, Joe tells us. There will be a big focus on building out services for investors and occupiers around the country via strategic infill acquisitions and recruiting, as well as abroad in Europe and Asia (DTZ has a particularly strong presence in China and the UK), he says.

Technology is a huge help with the merger, he says, with everyone on the same platforms, from email to databases, on day 1. That wouldn't have been possible a few years ago, Joe says. With its global HQ in Chicago, DTZ plans to merge offices in each market where both organizations have offices around the country as quickly as possible (by summer), and in most markets DTZ people will move into the Cassidy Turley office. Now let's learn more about Joe, who's based in DC:

Pictured: Joe as “celebrity bartender” at a DC CREW event last year.

Job title: Chief Executive Americas.

What that means: Knitting together our strengths and resources nationally to create a compelling solution for both clients and employees going forward.

Memorable project: The whole evolution of Cassidy Turley, from being a series of local boutiques to becoming a leading, full-service national company to this merger with DTZ. That's been the focus of my career over the last eight years, and the process taught me the importance of a common vision and strategy. What you're trying to do is much more important than how you're trying to do it.

Hometown: Richmond, VA.

School: George Mason University.

First job: Exercising racehorses. Lesson learned – they're only running off when you're trying to stop them.

Daily habit: Making a cup of coffee at home in the morning is one of my great rituals of the day. Cream, no sugar.

Favorite song of the moment: “Home” by Phillip Phillips.

Favorite book: The Pillars of the Earth by Ken Follett.

Favorite movies: Gran Torino, Braveheart.

Favorite vacation spot: Jackson Hole, WY, for fishing, riding and hiking.

Favorite restaurants: Rasika in DC (order the Palak Chaat, a crispy spinach dish) and Nobu (let the waiter order).

Bucket list: Go to Alaska, the North Pole and diving with great white sharks.

Family facts: Married with a 15-year-old daughter and 12-year-old son.

Hobbies: Riding and fishing, especially for false albacore.

Startling fact: I'm an identical twin and so is my father. My twin brother is in the data center business. (And no, they didn't pull any Parent Trap antics as kids.)

REFM (Valuate) DFW
Arent Fox (REI2) DFW
Bisnow (Niche-White)

TOBY/Lone Star Awards: Jan 24

BOMA Dallas executive director Teresa Foster reminds us that the The Outstanding Building of the Year (TOBY)/Lone Star awards ceremony happens on Saturday, Jan. 24, at the Fashion Institute Gallery (you can still register to attend by Jan. 22 by clicking here). The event will celebrate and recognize Dallas' outstanding building of the year with the Lone Star award highlighting excellence in building management. Since its inception in 1985, more than 700 buildings have been recognized as regional winners and more than 200 of those have been recognized as international winners (here's last year's international winner: Premier Place, 5910 North Central Expressway, Dallas). The TOBY Awards have drawn attention to hundreds of office buildings across the United States and Canada, and to the owners, managers and architects who conceive, operate and design them. Lone Star awards are given to high-performing management and operations professionals, including property managers, engineers and administrative assistants. For a full list of our sponsor's TOBY entries and Lone Star nominations, click here.

UT Southwestern Medical Center

Don't Miss Bisnow's Future of Healthcare Real Estate Event Jan. 21

The impact of medical-related real estate can be felt across the Metroplex from the opening a few weeks ago of UT Southwestern's new 460-room 1.3M SF William P. Clements Jr. University Hospital to the upcoming opening of Parkland's new 2.5M SF campus with 862 single-patient rooms. There's also a growing number of suburban MOBs and free-standing ERs. We'll give the lowdown on all of these projects, as well as what's ahead at Bisnow's 5th annual DFW Future of Healthcare Real Estate event on Jan. 21 (7:30am start) at the Westin Galleria. Come hear from the hospital execs: Parkland Health & Hospital System EVP Kris Gaw, Texas Health Resources EVP Brett McClung, Methodist Health System COO Pamela Stoyanoff and Forest Park Medical Center CEO Archie Drake. Save your place by buying tickets now.

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Brrrrrrr-ing on the cold weather. We have your deals to keep us warm. tonie@bisnow.com