1. Organic Growth
Between massive corporate relocations like Toyota and the anticipated Liberty Mutual, it’s no wonder that Texas is leading the nation in job growth. Hall Financial Group director Kim Butler (left, with Mike Shillingburg of Wells Fargo) says the growth at the 2.2M SF Hall Office Park has been largely organic. The multi-tenant office park has a wide range of small to midsized tenants from professional services companies to tech and healthcare companies, which have been growing at a rapid pace. Unlike past real estate cycles, companies aren’t taking down space in anticipation of growth, so when it's time to expand, they need space immediately.
2. Support for Corporate Relos
Some support companies for the major relocations like Toyota are scoping out space, but the vast majority aren’t here yet, says Billingsley Co SVP Marijke Lantz (left, with Hunt Realty Investments’ Steve Reynolds along with Jere Goostree). She thinks the demand for space is going to get even larger as those relos start opening up. There are also a lot of companies searching for their own spaces through build-to-suit to rebrand their companies out of the multi-tenant spaces.
3. Ripple Effect
Heady Investments founder Randy Heady (right, with Independent Bank’s Kurt Kuehn) says his projects along the Tollway are in the heart of the development and are benefiting from the organic growth of tenants as well as a ripple effect of corporate relocations. One tenant—which services Toyota—has tripled from 5,600 SF on the first floor of Headquarters One to the top floor. (It also means a rent increase, Randy says. The tenant taking the first floor space has been waiting four months and that space is getting a $2/SF rent bump, too.) Randy says at Headquarters One, tenants can look out the sixth-floor window and see the Toyota construction, as well as the cranes building the FedEx building and the Liberty Mutual Campus. Parkwood Center 5 is fully leased as those tenants have grown, he says. His prediction: absorption will come from internally.
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