There is nary a sector that isn’t burst- ing at the seams in most of the regions of the Southwest. Retail is
finding new life within mixed-use developments, multifamily developers can’t
build fast enough to keep up with
demand, office is staying on its toes with
creative ways to keep employees engaged,
and distribution/warehousing activity is
fast and furious.
When analyzing the local economy,
fundamentals and trends in the region,
one thing is for certain. The Lone Star
State is running roughshod over many
other states. Entering the eighth year of
this real estate cycle, Dallas-Fort Worth,
specifically, has shot to the top of the
most in-demand markets with record-breaking development. However, Real
Estate Forum found that Arizona,
Arkansas, Oklahoma and New Mexico are
holding their own in many respects.
Louisiana is more of a mixed bag.
Indeed, Texas developers have been
hard at work. All major metros are repre-
sented in the top 25 with respect to con-
struction pipelines—Dallas (six), Austin
(nine), Fort Worth ( 10), Houston ( 21)
and San Antonio ( 24), says JLL. The cur-
rent construction pipeline totals 19. 2
million square feet and 50% is preleased.
In fourth-quarter 2017, DFW had
38,792 units of multifamily in the construction pipeline, the most of any US
metro, according to Axiometrics. These
new properties are mainly distributed
across Plano, Allen and McKinney, central
Oaklawn and the Northwest submarkets of
Denton and North Irving—the same areas
Moody’s Analytics forecasts the bulk of
DFW’s job growth (83,200 new payrolls) to
occur this year.
In 2017, DFW developers delivered 26. 8
million square feet of industrial space, a
market record, according to CBRE.
Meanwhile, the office market gained 8. 4
million square feet in the past two years
alone. The largest concentration of office
construction is located in Far North Dallas
and Uptown, both with more than 1 million square feet under construction.
Namely, JP Morgan’s headquarters was
completed at Legacy West in Plano—the
largest of 17 projects finalized in the first
BY LISA BROWN
Real Estate Southwest
quarter of 2018. The 1. 4 million-square-foot campus will bring about half of the
firm’s 12,000 North Texas employees
under one roof.
In February, TD Ameritrade opened its
new headquarters in Southlake, TX, consolidating staff from the company’s North
Fort Worth location. On a 78-acre parcel,
the 355,000-square-foot project is
designed to house up to 2,000 employees.
By mid-year, 16 DFW office projects totaling 4 million square feet are due for completion. Of that, some 504,753 square feet
is set to deliver at Liberty Mutual Tower at
Legacy West I, followed by another 504,752
square feet at Legacy West II. Liberty
Mutual will add 5,000 jobs in Plano when
this 1. 1 million square feet is delivered.