Five DFW Real Estate 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.