dallas-fort worth real estate review - summer 2014

D A L L A S - F O R T W O R T H

R E V I E W20

14S U M M E R

THE CR A NE REPORT: WHO’S BUILDINGWHAT, WHERE

SCORECA RD:TOP 2014 LEASES

OFFICE ROUNDTA BLE:INSIGHTS FROM TOP EXPERTS

L E T ’ S S O L V E I T.

A R I Z O NA | T E X A S | F L O R I DA W W W. B U RY I N C .C O M

Nowhere Is So Much, So Near.

E A S T

NO

RTH

W E S T

SO

UTH

City of Waxahachie Economic Development · Doug Barnes, Director · 214-762-5022 · www.crossroadsoftx.com

W A X A H A C H I E

The Crossroadsof Texas

Waxahachie offers national railroad connections, a new airport with an impressive 6,500 foot runway and the buildings, land and people to make things happen for your business. Nowhere in Texas can you be so close to so much for so little. Geographically, you could not find a better location for your business. But Waxahachie

is more than the interstate crossroads of our state… it is also the very heart, soul and spirit of Texas.

WAXAHACHIE is located at the Crossroads of I-35E and Hwy. 287 linking a total of more than 3,300 miles of north-south highways from Mexico and the Gulf to the archways of Canada. Our city is just 15 minutes from major east-west super highways I-20 and I-30. It is 30 minutes from the city limits of both Dallas and Fort Worth and the dynamic Metroplex. To the south is the portal to the Texas Hill Country and to the east is the gateway to the piney woods.

243 ,871 SF Ava i l ab le

$3 .5 mi l l i on r enovat ion comple ted in 2013

Loca ted in the hea r t o f Downtown For t Wor th

For l ea s ing in fo rmat ion , p l ea se contac t :

WHIT KELLY

wh i t . k e l l y@am. j l l . c om

817 .334 .8117

BOB BOYKINbobboyk in@cous in sp rope r t i e s . com

713 .966 .3975

158 ,742 SF Ava i l ab le

Mul t i -mi l l i on do l l a r r enovat ion , inc lud ing innovat ive a r t in s t a l l a t ions , r ede s i gned lobb ie s , a s t a te -o f - the -a r t con fe rence cente r, Pu l s e F i tne s s and

advanced s ecu r i t y so lu t ions

Loca ted in the hea r t o f the Da l l a s Ar t s D i s t r i c t ne ighborhoo d

For l ea s ing in fo rmat ion , p l ea se contac t :

B ILL BROKAWb i l l . b r okaw@cushwake . com

972 .663 .9618

CYNTHIA COWENcyn th i a . cowen@cushwake . com

972 .663 .9617

Proud owner of landmark offi ce towers in Dallas-Fort Worth.

Talk to Cousins.

cousinsproperties.com

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

S U M M E R 2 0 1 4

ON THE COVER:CITYLINE PHOTOGRAPHED BY JUSTIN TERVEEN FROM THE ROOFTOP OF TOWER 2600, MANAGED BY CBRE.

D A L L A S - F O R T W O R T H

R E V I E W20

14S U M M E R

THE CR A NE REPORT: WHO’S BUILDINGWHAT, WHERE

SCORECA RD:TOP 2014 LEASES

OFFICE ROUNDTA BLE:INSIGHTS FROM TOP EXPERTS

Welcome Letter . . . . . . . . . . . . . . . . . . . . . . . . . .6Publisher’s Note . . . . . . . . . . . . . . . . . . . . . . . . .8

FOUNDATIONSDFW market statistics, economic indicators, and commercial real estate news. . . . . . . . . . 10

BLUEPRINT FOR PROSPERITYSurprise! Relocation teams get an eye-opening look at DFW. . . . . . . . . . . 13

THE CRANE REPORTWho’s building what, where. . . . . . . . . . . 17

SCORECARDA midyear look at the region’s top o� ce, industrial, and retail leases. . . . . 23

ROUNDTABLEAn insider’s view on o� ce leasing activity in North Texas. . . . . . . . 28

CONTENTS

635

820

35W

35W

35E

35E

75

75

80

175

360

183

114

161

121

78

12

30

30

45

35

20

20

THE CRANE REPORT17

ROUNDTABLE28

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 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

WWW.DFWREALESTATEREVIEW.COM

PUBLISHER Quincy Curé Preston

[email protected]

EDITOR-IN-CHIEFChristine Perez

PROJECT EDITORKerry Curry

CONTRIBUTING WRITERSTanya Rutledge

Glenda Vosburgh

COPY EDITORHilary Lau

ART/PRODUCTION MANAGERMichael Samples

DIGITAL IMAGINGSPECIALIST

Andy Rolfes

CONTRIBUTING PHOTOGRAPHERSSheryl Lanzel

Ryan TharpJustin Terveen

DIRECTOR OF SALES Kyle Moss

[email protected]

ACCOUNT EXECUTIVEBen Skidmore

[email protected]

INTERNSKailey Gamble

Suzanne CoulterHelena Bologna

PRESIDENT & GENERAL MANAGER

Gordon Locke

CREATIVE DIRECTORKyle Phelps

EDITORIAL DIRECTORAmy Robinson

MANAGING EDITORSCasey CasteelJonathan Ball

DIRECTOR OF PRODUCTIONDiane Testa

PRODUCTION MANAGERPedro Armstrong

GRAPHIC DESIGNEREmily Slack

MARKETING MANAGERJessica Fritsche

Dallas-Fort Worth Real Estate Review® is published for The Dallas Regional Chamber and The Real Estate Council by D Custom, a division of D Magazine Partners, 750 N. St. Paul St., Ste. 2100, Dallas, TX 75201; www.dcustom.com, 214.523.0300. ©2014 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 Custom is a sponsor of, or committed to, the views expressed in these articles. The publisher is not responsible for unsolicited contributions.

E X C L U S I V E L Y P U B L I S H E D B Y D C U S T O M , A D I V I S I O N O F

D M A G A Z I N E P A R T N E R S

SPECIAL REPORT: ANATOMY OF A DEAL

Building a City Within a City . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Kind of a Big Deal: How State Farm’s huge lease came together. . . . . . . . . . . . . . . . . 42

State of the Art: A detailed look at the insurer’s new campus . . . . . . . . . . . . . . . . 44

A Place to Walk About: Breaking down the project’s live-work-play environment. . . . . 46

A Day in the Life of CityLine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

Lay of the Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

Raytheon: Creating a high-tech command center . . . . . . . . . . 52

A Multifamily Home Run . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

Built to Last: The sustainable elements of CityLine . . . . . . . . . 55

TOOLBOXOperating in a Foreign Trade Zone gets easier. . . . . . . . . . . . . 56

SPECIAL ADVERTISING SECTION: CITY PROFILES

COMMUNITY

635

820

35W

35W

35E

35E

75

75

80

175

360

183

114

161

121

78

12

30

30

45

35

20

20

Waxahachie . . . . . . . . . . . . . . . . . 62Sachse . . . . . . . . . . . . . . . . . . . . . . . 64Allen . . . . . . . . . . . . . . . . . . . . . . . . 66Cedar Hill . . . . . . . . . . . . . . . . . . . . 67

Dallas. . . . . . . . . . . . . . . . . . . . . . . . 68Denton . . . . . . . . . . . . . . . . . . . . . . 69Haltom City . . . . . . . . . . . . . . . . . . 70

Calendar ofReal Estate Events. . . . . . . . . . . . . . . 71

Dallas Regional Chamber, Leadership Dallas . . . . . . . . . . . . . . . 71

Dallas Regional Chamber,Top-Level Members . . . . . . . . . . . . . 72

The Real Estate Council,Impact Investors . . . . . . . . . . . . . . . . 74

The Real Estate Council,FightNight XXVI . . . . . . . . . . . . . . . . 75

The Real Estate Council,Associate Leadership Council . . . . 76

ANATOMY OF A DEAL38


For the last six months, the Dallas Regional Chamber, The Real Estate Council, and D Custom have been hard at work to bring you this completely redesigned must-read quarterly outlook on the state of commercial real estate in our region.

Remastered from the ground up—and increasing publication to four times a year—the Real Estate Review is designed to engage a targeted, infl uential market of decision makers. We have looked at what’s come be-fore, then refi ned and refreshed to create this data-rich resource that we know you and your customers will reach for again and again.

In each issue we’ll bring you the kind of information you won’t see in any other publication—such as this

month’s “Anatomy of a Deal” on CityLine, Richardson’s 186-acre mixed-use de-velopment that has lured the exciting and lucrative 2 million-square-foot State Farm expansion.

Also in every issue, “The Crane Report” covers the biggest new developments in Dallas-Fort Worth at a glance, “Scorecard” tracks the latest lease transactions, and “Foundations” serves up key metrics and statistics across commercial real estate sectors.

The Dallas Regional Chamber and The Real Estate Council are not only dedi-cated to building a strong economic climate for our region but also to building future leaders for our community. Each issue of the Real Estate Review will fea-ture a graduate of The Real Estate Council’s leadership development program called the Associate Leadership Council (ALC) or the Dallas Regional Chamber’s Leadership Dallas program. In this issue you’ll read about Champion Partners’ Jeff Swope, who founded the ALC class almost 20 years ago.

Combining The Real Estate Council’s infl uence, expertise, and network with the Dallas Regional Chamber’s perspective on data and policy with the consid-erable experience and insight of Editorial Director Christine Perez and Project Editor Kerry Curry, the fresh perception of the Real Estate Review puts the right information at your fi ngertips.

We are excited to share this inaugural issue with you and hope you will enjoy the beautiful visual presentations—both in print and a unique, multiplatform digital experience that takes the content to the next level.

WELCOME 2014 CHAIR MA N OF TH E B OA R D

Stephen L. Mansfield, Ph. D, FACHE

President & CEO, Methodist H ealth System

PRES IDENT & C EO

Dale Petroskey

CHIEF OPER ATING OFFIC ER & CHIEF F INA NC IA L OFFIC ER

Pat Priest

COMMUNICAT IONS, VIC E PR ESIDENT

Amy Ramos

BUSINESS INFOR MATION & RESEARCH, VIC E PR ESIDENT

Duane Dankesreiter

RESEA R C H DIR ECTOR

Ryan Tharp

DIRECTOR OF C OMMUNICATIONS

Meredith Turner

2014 CHAIRMA N OF TH E B OA R D

Paul Rowsey

Comp atr iot C apital

VICE C H A IR MA N

Sue Ansel

Gables R esidential

PRES IDENT & C EO

Linda McMahon

CHIEF F INA NC IA L OFFIC ER

Carla Brandt

VICE PRESIDENT MA R KETING & EVENTS

Debby Hanson

VICE PRESIDENT FOUNDATION

Robin Minick

A letter from the Dallas Regional Chamberand The Real Estate Council

PAT PRIESTChief Operating Offi cer/Chief Financial Offi cer

Dallas Regional Chamber

LINDA McMAHONPresident

The Real Estate Council

We are proud to welcome you to

the all-new Dallas-Fort Worth

Real Estate Review.

Spotlight on Haltom Road and IH 820

Commercial lots now •available for new development at Haltom Road, south of IH 820 Great highway frontage and •close approximation to Interstate 35W, downtown Fort Worth and adjacent to residential growth Tax Increment Finance Zones •Backage roads under construction •will provide ample access

HalTom CITy, TEXaSIn the Heart of Tarrant County

Haltom City Economic Development5024 Broadway AvenueHaltom City, TX [email protected]


A PARTNER YOU CAN BUILD WITH,FROM CONCEPT THROUGH COMPLETION.› General Contracting› Construction Management› Design/Build› Preconstruction

mccarthy.com | 972.991.5500

A letter from the PublisherUPFRONT

We’re thrilled to collaborate with the Dallas Regional Chamber and The Real Estate Council to bring you the all-new Dallas-Fort Worth Real Estate Review. The publication, which will now come out every quarter, has been completely remastered. And it’s not just the print edition that has changed. Be sure to visit www.dfwrealestatereview.com to check out our digital fl ip book, online bonus content and videos, and interactive maps.

All of these enhancements are designed to give readers a defi nitive look at DFW’s commercial real estate industry—a powerful economic engine that drives regional growth. Lately, the impact is being felt more than ever, with big relocations and expansions from, among others, Toyota Motor Corp. (4,000 jobs) and State Farm (8,000+ jobs). State Farm will anchor the 186-acre CityLine project KDC is developing in Richardson. We bring you an 18-page special report on the project in “Anatomy of a Deal” (page 38).

A key resource in our eff ort is Xceligent Inc., a research fi rm that’s in partnership with the North Texas Commercial Association of Realtors. The company and its team of researchers do on-the-ground data collection, to ensure the most accurate property leasing and sales information possible. The expertise of Xceligent’s Broker Advisory Boards help guide in market/submarket creation, classifi cations of buildings, and fact-checking of deals.

The Dallas Regional Chamber used Xceligent’s data to create the one-of-a-kind maps that accompany “The Crane Report” (page 17), a comprehensive guide to existing and planned construction projects for the offi ce and retail sectors, and “Scorecard” (page 23), our rundown on the top offi ce, industrial, and retail leases for the fi rst half of 2014.

Special thanks to Ryan Tharp with Cloudkicker Media, whose drone photography provided some terrifi c skyline shots; Ted Wilson of Residential Strategies Inc., who shared his helicopter photos of CityLine with us; and renowned Dallas photographer Justin Terveen, who went to great lengths—and heights—to get our cover image. (Thanks CBRE and Tower 2600, for the roo� op vista.)

The team behind Dallas-Fort Worth Real Estate Review is committed to ongoing innovation as we move for-ward. I’d love to get your thoughts on the publication—and how we can better serve you.

With a market this big and this active, we’re just getting started!

QUINCY CURÉ PRESTONPublisher

Dallas-Fort WorthReal Estate Review

Quincy Curé PrestonPublisher

ADDITIONAL CONENT ONLINE ATDFWREALESTATEREVIEW.COM

THERE’SEVEN MORETO THE STORY


m c k i n n ey a n d o l i ve . c o m

C O M P L E T I O N 2 0 1 6

As the tallest building in Uptown, McKinney & Olive will redefine the Dallas skyline. Featuring an iconic design by world-reknowned architects, Pelli Clarke Pelli, this multi-use project offers 480,000 square feet of Dallas’ finest office space, and 50,000 square feet of premier retail space opening onto a lushly landscaped park. McKinney & Olive.

There’s only one.

2 1 4 - 8 8 0 - 4 5 2 5

T H E R E ’ S O N LY O N E .

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

OFFI

CE –

CLA

SS A

& B

( MIL

LION

S OF

SQU

ARE

FEET

)

22

18

14

10

6

2

(2)1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994

375,000 JOBS+25%

149,000 JOBS+8%

209,000 JOBS+11%

BIRTH OF MODERN DALLAS1980-1986NET NEW JOBS: 480,000> Hyper-infl ation ushers in the

1980s; prime rate hits 21.5 percent.

> Oil prices double.> Job gains spike 50 percent from

the mid-1970s.> DFW offi ce building boom results

in 100 million square feet in 660 buildings.

> Dallas’ iconic downtown skyline created as offi ce inventory doubles: 17 towers and 16 million square feet added.

REAL ESTATE RECESSION1986-1993NET NEW JOBS: 171,000> 1986 Tax Reform Act sets the

stage for a deep real estate recession nationwide.

> With the S&L collapse in full swing, Texas is an early casualty.

> Momentum Place and Texas Commerce Tower (now known as Comerica Bank Tower and Chase Tower) are delivered, adding 2.8 million square feet to the downtown Dallas offi ce inventory.

RECOVERY + REBUILDING1993-1997NET NEW JOBS: 260,000> North American Free Trade

Agreement passes.> The Barnett Shale boom takes off .> Asia enters into a fi nancial crisis.> Extended minimal offi ce

construction.> Tenants continue to restructure as

secular change spreads.

DALLAS REAL ESTATE CYCLESRegion’s mature economy suggests widespreado� ce overbuilding a relic of the past.

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

A new research report from JLL breaks down DFW development eras:

MIDYEAR DFW INDUSTRIAL SNAPSHOTCommercial real estate fundamentals are the best seen since 2006, according to a new report from Cushman & Wakefi eld. Industrial leasing activity (new leases and renewals) totaled 13.9 million square feet during the fi rst six months of 2014, creating a current vacancy rate of 8.1 percent. Here are additional midyear industrial stats:

A B A S E L I N E F O R T H E R E G I O N ’ S F U T U R E

> DFW MARKET STATISTICS > ECONOMIC INDICATORS > COMMERCIAL REAL ESTATE NEWS

NETABSORPTION

2013: 4.6 million s.f.2014: 6.5 million s.f.

+41%

UNDER CONSTRUCTION

2013: 10.5 million s.f.2014: 16 million s.f.

+51%

CONSTRUCTIONCOMPLETIONS

2013: 1.3 million s.f.2014: 5.7 million s.f.

+328%

OCCUPANCY RATE

2013: 90.5 percent2014: 91.9 percent

+1.5%SOURCE: Cushman & Wakefi eld

OFFICE: 2 MILLION SF LEASED IN 2014 (SO FAR)Brisk activity. Demand for North Texas offi ce space is stronger than at any point since 2006, according to second-quarter statistics from Cushman & Wakefi eld. During the fi rst six months of the year, direct absorption reached 2 million square feet—a 37 percent increase over the 1.5 million square feet absorbed during the same period in 2013. Dallas-Fort Worth offi ce occupancy currently stands at 18.1 percent (19.1 percent for Dallas markets; 10.4 percent for Fort Worth markets.) On the Dallas side, the central business district comes in at 24.9 percent, with suburban markets at 18.2 percent. The tightest of the larger markets include Preston Center (8.9 percent) and Turtle Creek Uptown (12.7 percent). Arlington (14.8 percent), Far North Dallas (15 percent), Far North Central (15.2 percent), and Legacy/Frisco (15.4 percent) are tightening as well. Average asking lease rates for the market stand at $21.19—the highest on record. Lease rates are up an average of 67 cents per square foot in Dallas since June 2013, and $1.74 per square foot in Fort Worth. Preston Center rings in with the highest lease rates ($32.41), followed by Turtle Creek/Uptown ($30.60) and Legacy/Frisco ($28.28). Space in the Fort Worth CBD is leasing for an average of $27.06 per square foot.

—Christine Perez, D Real Estate Daily, June 2014

FOUNDATIONS

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 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

F FOUNDATIONS

1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994

■ DELIVERED MULTI-TENANT OFFICE SPACE

■ NET ABSORPTION (millions s.f.)

5-YEAR JOB GROWTH

(THOU

SAND

S )

TECH + TELECOM BOOM1997-2001NET NEW JOBS: 444,000> Deep telecom roots set the stage

for new boom.> DFW unemployment drops to 3

percent (3.9 percent nationwide)> Richardson’s Telecom Corridor is

established.> Pent-up offi ce demand and

velocity of need results in 35 million square feet in new offi ce space deliveries.

> Lag in absorption leads to vacancy rate of 19 percent.

TECH RECESSION + RECOVERY2001-2005NET NEW JOBS: 65,000> Tech bust hits DFW hard.> Telecom volatility results in major

job and company losses.> President George W. Bush signs

new tax cut package.> Oil hits 12-year high, at $56 a

barrel.> New Urbanism philosophies used

in the development of Legacy Town Center.

HOUSING BOOM + RECESSION2005-2009NET NEW JOBS: 167,000> The housing bubble hits the U.S.> DFW’s economy is impacted,

selectively.> Balanced expansion in North

Texas off set by 111,000 jobs lost in 2009.

> Oil hits $140 a barrel.> Uptown sees a resurgence.> 19 million square feet of offi ce

space added.> Net absorption totals 15 million

square feet.

RECOVERY + EXPANSION2009-2013NET NEW JOBS: 253,000> New DFW job peak, with gains

across all sectors.> 3.6 million square feet of

multitenant offi ce space is delivered on base of more than 250,000 new jobs.

> 8.1 million square feet of offi ce absorption puts DFW in top ranks of U.S. markets.

> Prudent investor and bank underwriting keeps development in check.

THE BARNETT SHALE’S IMPACT ON REAL ESTATE

600

500

400

300

200

100

0

(100)1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

510,000 JOBS+23%

167,000 JOBS+6%

253,000 JOBS+9%

5-YEAR TOTAL JOB GROWTH

10-YEARTREASURY YIELD

34,000 JOBS+1%

A new research report from JLL breaks down DFW development eras:

The oil and gas industry has been central to the North Texas economy for decades. This is especially true for Tarrant County and Fort Worth, where the Barnett Shale is anchored. Solid investment in the offi ce sector is due in part to oil and gas exploration, according to a report from CBRE. Despite the recent closure of Encana’s offi ce in Plano, the offi ce sector outlook is positive. The Fort Worth CBD has the highest concentration of energy companies in DFW. Momentum is building in retail, multifamily, and hotel development activity in the Barnett region, due to broad-based economic and employment growth. Pending the escalation of natural gas prices, the Barnett should see increased construction activity across all sectors.SOURCE: CBRE Econometric Advisors

CRE DEVELOPMENT ACTIVITY IN BARNETT REGION, 2012-2013Texas counties include Tarrant, Johnson, Denton, Wise, and Parker.

■ HOTEL ■ RETAIL ■ OFFICE ■ WAREHOUSE ■ MULTIFAMILY

$900

$800

$700

$600

$500

$400

$300

$200

$100

$0

COMPLETED UNDERWAY PRE-PLANNING& PLANNING

TOTAL COMPLETED: $719.3 MILLIONTOTAL UNDERWAY: $2.5 BILLIONTOTAL PLANNING: $2.1 BILLION

SOURCE: JLL


Chicago Title National Commercial Services

To Meet 3 Of Our Biggest Real Estate Stars And Find Out How Bright They Are,

Give Them A Call At 214-965-1796 Or Visit Us At CTICcommercial.com

Holden Heil, Vice President

Clark Pulliam, General Counsel & VP

Kyle McCartan, Sales Associate

THREE STARS

THAT MAKE US

SHINE BIG & BRIGHT

DEEP IN THE

HEART OF TEXAS

REAL ESTATE.


B BLUEPRINT FOR PROSPERITY

A WHILE BACK, I MET WITH TEAM MEMBERS from a company that was considering the

Dallas area for a potential corporate relocation and presented our region’s considerable assets. As I described our region’s network of direct fl ights to domestic and international destinations, I mentioned a “secret” I knew would be making the newspapers the very next day, thinking it would be helpful for the delegation to have the information prior to leaving town.

I revealed that Emirates would be announcing direct air service between Dubai and DFW, and I knew immediately by the group’s reaction just how important this new information was. The

company’s interest in the Dallas area spiked because they saw a new direct fl ight to Dubai providing an easy connection point to India, an important market for the company. What I thought to be a simple tidbit of news was, to them, exciting information on a critical deal point that boosted Dallas’ chances.

These days, companies and those advising companies on location decisions have easy access to a great deal of data and information on just about any place they’d like to evaluate. The facts are rarely presented as visually or as smartly as found in the chamber’s economic development guide or

SURPRISE! RELOCATION TEAMS GET EYE-OPENING LOOK AT DFWFrom international access to downtown development, North Texas has a lot to o� er.

BY MIKE ROSA

GLOBALGATEWAYDallas/Fort Worth International Airport o� ers an extensive route network with more than 200 direct international destinations.

Airport code/Average number of fl ights per week

ABU DHABI (AUH)3

BOGATA, COLOMBIA (BOG)7 DOHA, QATAR (DOH)7 DUBAI (DXB)7 EDMONTON (YEG)7 HONG KONG (HKG)4 ROATAN, HONDURAS (RTB)1 SHANGHAI (PVG)4

BY THE NUMBERS:Dallas/Fort Worth International Airport

On-Airport Employees:Approximately 60,000

Economic Activity Across North Texas Attributable to DFWTotal Economic Output:$31.6 billion

Full-Time Jobs:143,000

Daily Passengers:Approximately 165,580

NEWEST INTERNATIONAL ROUTES:

CONTINUED 3


B BLUEPRINT FOR PROSPERITY

other publications and presentations, but nevertheless are out there and accessible. What’s not as easy to get, but o� en more valuable to a company thinking of a move, is the foresight into what Dallas will be like in fi ve years, 10 years, or longer, as a place to operate and for employees to live.

When executives visit Dallas, or when we take our show on the road, we are armed with a wide range of data and information critical to the evaluation process: labor force, wage rates, taxes and incentives, housing costs, real estate costs, and so forth. The region’s case is a strong one. We have such a great bundle of assets wrapped up in a cost-eff ective, business-friendly environment. The showstoppers seem to be the new things happening that enhance our region’s future attractiveness for companies and people, or both. These are things decision makers don’t necessarily already know—like new direct air service to Dubai.

Air service is almost always a top driver of location decisions that go our way, and it’s surprising just how many executives outside our region remain unaware that Love Field is opening up direct fl ights across the U.S. this year, or that we have direct service to Shanghai, Hong Kong, Doha, and Abu Dhabi from Dallas-Fort Worth International Airport. On a recent chamber mission to Australia, each audience was excited to learn about DFW Airport’s investment in technology that will allow Aussies rapid entry into the United States. This encouraged more of them to use DFW as their gateway instead of LAX.

There are many examples of how this region continues to surprise and be enhanced as a place for companies, talent, jobs, and investment.

A BIRD’S EYE VIEW OF THE REGIONAll the great developments in downtown Dallas are striking to someone who

has not been in town in the past few years. We see the positive reactions routinely from corporate guests at our 26th fl oor viewing spot in Ross Tower. “Wow, I had no idea all this was going on here!” is common to hear.

Recently, our full regional presentation was given to a group standing at our big bay windows. We did not bother to go into the conference room, where our 2D presentation was compiled and ready to view. From the window, we shared more surprises, such as DART rail connecting to the terminals at D/FW Airport this summer and the prospect of high-speed rail from Dallas-Fort Worth to Houston. We talked about companies that have recently moved here and about Klyde

“ALREADY A STRONG, GROWING, PROSPEROUS REGION, DALLAS-FORT WORTH MUST NOT REST ON ITS LAURELS.”—MIKE ROSA

B L U E P R I N T F O R P R O S P E R I T Y,

O U R N E X T S T E P S F O R W A R D

BLUEPRINT FOR PROSPERITY

The Dallas Regional Chamber’s economic development program, Blueprint for Prosperity, 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 e� orts to further

economic prosperity throughout the region. This initiative funds e� orts related to direct contact with

corporations and location consultants examining the DFW Region.

WANT TO LEARN MORE ABOUT HOW TO GET INVOLVED IN BLUEPRINT FOR PROSPERITY?Contact Mike Rosa, Senior Vice President, Economic Development, Dallas Regional Chamber

214.746.6735 | mrosa@ dallaschamber.org

Warren Park, the Perot Museum of Nature and Science, the Margot and Bill Winspear Opera House, and plans for additional offi ce towers in downtown.

We could highlight housing, point the way to regional cities and the locations of area universities, and to a new barbecue joint. We were able to give the lay of the land, from Fort Worth’s distant but visible skyline and AT&T Stadium to Oak Cliff , Fair Park, Trinity Groves, and the George W. Bush Presidential Library and Museum. It helped our guests see the present and envision the future.

Already a strong, growing, pros-perous region, Dallas-Fort Worth must not rest on its laurels. We need to work hard and coopera-tively to make it better in the ways that matter most, and in ways that companies are acutely examining

as they make long-term decisions. Issues that are fundamental to future success include trans-portation, the water supply, K-12 education, a Tier 1 research university, and greater connec-tivity to global markets. We are building our case not only with the current facts and fi gures, but forward-looking surprises.

Watters Creek

Bethany Drive

• America’s Top 25 Best Cities to Relocate - Forbes

• Top 10 Best Suburbs - D Magazine

HOW FAST CAN YOU GET HERE?

COMPANIES ON THE MOVE MOVE TO ALLEN, TX

ALLEN IS MOVING FORWARD WITH TWO NEW CLASS A DEVELOPMENTS

25 Minutes to DFW International Airport

AllenPlace Office Complex

500,000-SF CLASS A OFFICE DEVELOPMENT

Allen Central Park

1,000,000-SF PLANNED CLASS A OFFICE PARK ADJACENT TO WATTERS CREEK

Allen Economic Development Corporation • One Allen Center • 700 Central Expressway South Suite 210 • Allen, Texas 75013 • allentx.com

For more information contact: Dan Bowman, Interim Executive Director / CEO [email protected] • 972.727.0252

14913_Allen ad_PR.indd 1 6/27/14 4:50 PM


Watters Creek

Bethany Drive

• America’s Top 25 Best Cities to Relocate - Forbes

• Top 10 Best Suburbs - D Magazine

HOW FAST CAN YOU GET HERE?

COMPANIES ON THE MOVE MOVE TO ALLEN, TX

ALLEN IS MOVING FORWARD WITH TWO NEW CLASS A DEVELOPMENTS

25 Minutes to DFW International Airport

AllenPlace Office Complex

500,000-SF CLASS A OFFICE DEVELOPMENT

Allen Central Park

1,000,000-SF PLANNED CLASS A OFFICE PARK ADJACENT TO WATTERS CREEK

Allen Economic Development Corporation • One Allen Center • 700 Central Expressway South Suite 210 • Allen, Texas 75013 • allentx.com

For more information contact: Dan Bowman, Interim Executive Director / CEO [email protected] • 972.727.0252

14913_Allen ad_PR.indd 1 6/27/14 4:50 PM


Denton, Texas

Econ

omic Developmen

t

Par tnership

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 REPORTShrinking vacancy rates, a rebounding economy, explosive population growth, available land, and the most talented development community in the nation are all combining to create another North Texas building boom. This time, though, disciplined capital markets are reining in unbridled optimism, staving o� an oversupply.

BY CHRISTINE PEREZ

O N -T H E- G R O U N D I N S I G H T S

OFFICE INDUSTRIAL

FROST BANK TOWER

Summer2014

GREG BIGGSManaging DirectorJLL

“Offi ce market demand and absorption has increased dramatically and, as a result, we’re seeing some of the highest development totals that we’ve seen in years. This momentum has driven rents higher.”

THOM RIDNOURSenior Vice PresidentParmenter Realty Partners

“DFW is prospering due to the oil and gas industry, general business expansion, and the low cost of funds combined with rising corporate profi ts. Due to demand, new construction likely will continue at its current pace.”

ALLEN GUMPExecutive Vice PresidentColliers International

“Lease terms are going longer, and concessions aren’t what they used to be, as there’s less available space. It’s not necessarily a landlord’s market, it’s just a more balanced market.”

STEVE TRESEFirst Vice PresidentCBRE

“With every cycle we experience waves in deal activity. Last year the big mega-deal dominated; so far this year we’ve seen strong deal volume in the smaller tenant base, which is also indicative of strong conditions.”

RYAN THARP, CLOUDKICKER MEDIA


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ANNOUNCED OFFICE DEVELOPMENTS

2371 VICTORY PARKSIZE: 470,000 s.f.DEVELOPER: HinesLEASING AGENTS: Bill Brokaw, CynthiaCowen, and Mark Dickenson, Cushman &Wakefi eld

AKARD PLACESIZE: 425,000 s.f.DEVELOPER: RED DevelopmentLEASING AGENTS: Burson Holman and Shannon Brown, CBREDETAILS: AkardPlace will alsoinclude a 20-storyresidential high-rise with street-level retail.

ALLEN PLACESIZE: 500,000 s.f.DEVELOPERS: Sentinel Capital LLC, Centra Partners LLC, Triad Real EstateLEASING AGENT: Ben Appleby, Paladin PartnersPROJECT DETAILS: KONE, a global maker of elevators and escalators, has signed on as the lead tenant of this $26 million, fi ve-building offi ce park. Designed by Goulas + Associates Inc., the development will provide relief in an exceedingly tight Allen market.

McKINNEY & OLIVESIZE: 530,000 s.f.DEVELOPER: Crescent Real EstateLED BY: John Goff , chairman and CEO

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HE HAD A GLIMMER IN HIS EYE THAT I KNEW MEANT HE GOT IT.—JOHN GOFF,ON SELECTING FAMED ARCHITECT CESAR PELLI

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OFFICEBOOM

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DATA SOURCE: XCELIGENT INC., A COMMERCIAL REAL ESTATE RESEARCH FIRM IN PARTNERSHIP WITH NTCAR

STEWART CREEK OFFICE CENTER I

4120 MIDWAYRD

WATERSIDE

NE OF W 7TH ST AND ARCH ADAMS ST

5450 CLEARFORK MAIN ST

THE CASSIDY

VICTORY MEDICAL CENTER

FROST TOWER

PARKLANDHALL

FOREST PARK MEDICAL CENTER SOUTHLAKE

CARILLON OFFICE BLDG 1-3

GRAPEVINE STATION

2900 LAKE VISTA DR.

THREE HICKORY CENTRE

WESTPOINT II

FM 2499 AND GERAULT RD

FREEPORTCOMMONS NATIONSTAR

MORTGAGE HOLDINGS HQ

HILLWOOD COMMONS I

USAA BUILDINGFAA CORPORATE CAMPUS

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F O R T W O R T H

According to Xceligent, 27 DFW offi ceprojects totaling 7.2 million s.f. are underconstruction. Another 54 projects totaling 12.1 million s.f. are planned or proposed. A sampling are labeled here.


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KPMG PLAZA AT HALL ARTSSIZE: 500,000 s.f.Developer: Hall Financial GroupLead Tenants: KPMG, Jackson Walker, UMB, Hall Financial Group, Stephan Pyles

THE RICHARDS GROUP HQSIZE: 250,000 s.f.VALUE: $45 millionARCHITECT: Perkins + Will

OFFICE UNDERCONSTRUCTION

NATIONSTAR MORTGAGE HOLDINGS HQ

FREEPORT COMMONSSIZE: 300,000 s.f.DEVELOPER: Capital Commercial InvestmentsLEASING AGENTS: Fletcher Cordell and Duane Henley with Transwestern

KNOLL TRAIL PLAZASIZE: 120,000 s.f.DEVELOPER: Cawley PartnersARCHITECT: BOKA Powell

FROST TOWERSIZE: 168,000 s.f.DEVELOPER: Harwood InternationalLEAD TENANT: Frost BankPROJECT DETAILS: At 22 stories, Frost Tower is the seventh phase to be developed in Gabriel Barbier-Mueller’s Harwood district in Uptown.

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I ’VE NEVER SEEN THIS VOLUME OF BUSINESS; IT’S UNBELIEVABLE. — BILL CAWLEY, CAWLEY PARTNERS

SIZE: 175,585 s.f.DEVELOPER: Billingsley Co.LED BY: Lucy BillingsleyDETAILS: Nationstar’s new headquarters is one of fi ve offi ce buildings under way or planned for Billingsley’s Cypress Waters development.

THE ARTS DISTRICT PUTS DALLAS FRONT

AND CENTER ON THE INTERNATIONAL

STAGE. . . .— CRAIG HALL,

HALL FINANCIAL GROUP

● ANNOUNCED● UNDER CONSTRUCTION

FAR NORTH DALLAS ON FIREThe epicenter of offi ce development is the areasurrounding the intersection of State Highway121 and the Dallas North Tollway, home to HallOffi ce Park in Frisco and Plano’s Granite Parkand Legacy business park—the site of a new 1.5million-square-foot headquarters for Toyota.

Online ExtraVisit an interactive version of this map atwww.dfwrealestatereview.com.

ANNOUNCED Windhaven Place One 200,000 s.f.One Champions Park 200,000 s.f.Stonebriar Commons on Legacy Bldg 9 100,000 s.f.Toyota Headquarters 1.5M s.f.Preston Bend One 109,988 s.f.Legacy Center 169,000 s.f. 6000 Tennyson Pkwy 157,000 s.f.Palomino Crossing Bldg A-D 540,000 s.f.

UNDER CONSTRUCTIONDominion Legacy Offi ce 92,250 s.f.Legacy Towers 342,066 s.f.FedEx Offi ce Print Services Inc. 265,000 s.f.Lincoln Legacy Two 134,990 s.f.

THE FORUM AT PROSPER WEST

MCKINNEY CORPORATE CENTER I

SUMMIT PARK II

FOUR GALLERIA TOWER

ALLEN PLACE BLDG1, 2, 3,4

CITYLINE

ALLEN CENTRAL PARK I

FRISCO SQUARE BLDG A1, B1, B9,C2, C5, C9, D1STEWART

CREEK OFFICE CENTER I

INTERNATIONAL BUSINESS PARK XVI

4120 MIDWAYRD

ONE FOUNTAIN COURT

8111 WESTCHESTER AVE

PARK CITIES PLAZAPRESTON HOLLOW VILLAGE

THE RICHARDS GROUP HQ

KPMG PLAZA AT HALL ARTSFROST TOWER

PARKLANDHALL

8020 PARK LN

THREE HICKORY CENTRE

WESTPOINT II

DAVIS STREET MARKET

KNOLL TRAIL PLAZA

ROGERS HOTEL OFFICE PROJECT(WAXAHACHIE: 7.5 MILES SOUTH)

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D A L L A S1-3


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ANNOUNCED INDUSTRIAL DEVELOPMENTS

PARK 20/35SIZE: 653,582 s.f.DEVELOPER: PrologisAMENITIES: Direct access to interstates 35 and 20, expandable to 1 million s.f., Foreign Trade Zone and Triple Freeport.

STONERIDGE 11-13 POINTSOUTH LOGISTICS AND COMMERCE CENTRESIZE: 1,113,500 s.f.DEVELOPER: Majestic RealtyLEASING AGENT: Al Sorrels

SOUTHPORT LOGISTICS PARKSIZE: 1.5 million s.f. (fi rst phase)DEVELOPER: Port Logistics RealtyLEASING AGENTS: Kacy Jones, John Hendricks, and Wilson Brown, CBRE

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�WE ARE SEEING AN INCREASING NUMBEROF CORPORATE AND E-COMMERCE USERSMOVING INTO THESOUTHERN SECTOR.— KACY JONES

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INDUSTRIAL STRENGTH

● ANNOUNCED● UNDER CONSTRUCTION

SIZE: Three buildings: 140,000 s.f., 150,000 s.f.,and 400,000 s.f.DEVELOPER:Holt Lunsford CommercialLEASING AGENT:John Gorman


ALLIANCE CENTER NORTH 2TRAMMELL CROW 35/EAGLE

RAILHEAD INDUSTRIAL PARK

101 JIM WRIGHT FWY

SOUTH CENTRAL DISTRIBUTION CENTER II

CARTER DISTRIBUTION CENTER BLDG C

LOGISTICS CROSSING 2 CUMMINS

SOUTHERN PLAINS

SOUTHWEST DISTRIBUTION

CENTER

WILDLIFE COMMERCE PARK

PHASE I

1460 AVENUE S

RIVERPARK BLDG 100, 400 DFW SOUTHGATE

DFW EAST LOGISTICS CENTER BLDG C

MERCER BUSINESS

PARK

POINT WEST

MAJESTIC AIRPORT CENTER

LAKESIDECOMMERCECENTER

DFW NORTH DISTRIBUTION CENTER

FREEPORT NORTH

SPEEDWAY DISTRIBUTION CENTER

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WAL-MART

ALLIANCE GATEWAY 57

Online ExtraVisit an interactive version of this map atwww.dfwrealestatereview.com.

F O R T W O R T H


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TRAMMELL CROW 35/EAGLESIZE: 1,041,879 s.f. and 548,495 s.f.DEVELOPERS: Trammell Crow Co., Prudential Real Estate InvestorsLEASING AGENTS: Bob Scully and Steve Trese with CBRE

INDUSTRIAL UNDERCONSTRUCTION

SPEEDWAY DISTRIBUTION CENTER, BLDG. ASIZE: 729,900 s.f.DEVELOPER: IDIAMENITIES: The building off ers proximity to Interstates 114 and 35W and BNSF Railroad’s intermodal facility. Also near Texas Motor Speedway.

SOUTHFIELD PARK 35SIZE: 1,126,320 s.f.DEVELOPER: SeefriedProperties and USAALEASING AGENTS: Terry Darrow, Nathan Orbin, and Kurt Griffi n with JLL

ALLIANCE CENTER NORTH 2SIZE: 1,002,620 s.f.DEVELOPER: HillwoodAMENITIES: Access to Alliance Airport and frontage along Interstate 35W.

DALPORT TRADE CENTERSIZE: 1,564,800 s.f.DEVELOPER: PanattoniLEASING AGENT: Terry Darrow, JLLDETAILS BEHIND THE DEAL: Key players will only reveal the tenant’s code name: “Project Sunrise.” The company that’s leasing the space plans to use it as a distribution center.

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THIS IS ONE OF THE BEST INDUSTRIAL SITES I ’VE EVER BEEN INVOLVED WITH.— BOB SCULLY

�NORTH FORT WORTH HAS SEEN UNPRECEDENTED LEASING ACTIVITY OVER THE LAST 24 MONTHS. — TONY CREME, HILLWOOD

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HOT CORRIDORFor years, North Texas developers have predicted an industrial boom for southern Dallas. With the confl uence of Interstates 20, 35, and 45 and intermodal hubs, it made perfect sense. Now the vision is fi nally becoming a reality. Major tenants like Kohl’s, L’Oreal, Quaker, BMW, and Home Depot have already staked a claim. Millions of square feet of space are under construction or in the planning stages.

DEVELOPERS BETTING ON SOUTHERN DALLAS:

CenterPoint PropertiesDuke Realty Corp.HillwoodHolt Lunsford CommercialIDI GazeleyIndCor PropertiesKTR Capital PartnersMajestic Realty Co.Mountain Creek InvestmentsPanattoniPrime 45 DevelopmentPrologisRidge DevelopmentSeefried PropertiesTrammell Crow Co.Weeks Robinson Properties

SOUTHPORT LOGISTICS

PARK

SOUTHPORT TRADE CENTERI35 INTERCHANGE I

DALPORT TRADE CENTER

POINTSOUTH LOGISTICS COMMERCE CENTRE

PARK20/35 RIDGE

LOGISTICS CENTER

STONERIDGE 11-13

SOUTHFIELD PARK 35

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CUMMINS SOUTHERN

PLAINS

SOUTHWEST DISTRIBUTION

CENTER

FIRST PINNACLE

PARK BLDG B

I-30 BUSINESS CENTER

BLDG 3

WILDLIFE COMMERCE PARK

PHASE I

DFW SOUTHGATE

DFW EAST LOGISTICS CENTER BLDG C

2040 CENTURY CENTER

BLVD

MERCER BUSINESS

PARK

POINT WEST

FREEPORT NORTH

THREE VALWOOD

CROSBY TRADE CENTER I

NEBRASKA FURNITURE

MART WAREHOUSE

COBB BUSINESS PARK

PLANO TECH CENTER 8

ADVOCARE INTERNATIONAL

9

Xceligent reports that41 DFW industrialprojects totaling18.2 million s.f. areunder way; another94 projects totaling46.9 million s.f. areplanned or proposed.

RIDGE LOGISTICS CENTERSIZE: 503,880 s.f.DEVELOPER: Ridge DevelopmentLEASING AGENTS: Chris Teesdale and Tom Pearson, Colliers International

D A L L A S

Photo: Kimley-Horn & Associates Inc.

Photo: Tim Hursley

Photo: The Urban FabricPhoto: DART

Photo: Glenn James/NBAE/Getty Images Photo: The Urban Fabric

Photo: UTSW Photo: The Urban Fabric Photo: Dillon Diers Photography

Photo: Baylor University Medical Center at Dallas

IIPOD Union Pacific Intermodal

Baylor Sammons Cancer Center

DART Mockingbird Station Dallas Love Field

DallasMavericks

Downtown Dallas Skyline AT&T Performing Arts Center

University of TexasSouthwestern Medical Center

Magnolia Pegasus DFW International Airport Klyde Warren Park

Photo: DFW International Airport

Dallas-EcoDev.org214.670.1685


S SCORECARD

SCORECARDLeasing activity across North Texas is brisk, buoyed by relocations and population growth. The demand is a� ecting all sectors: midyear o� ce leasing stands at 2 million square feet, the industrial vacancy rate has dropped to 8.1 percent, and a number of specialty grocers and other chains are expanding across DFW.

BY CHRISTINE PEREZ

O N -T H E- G R O U N D I N S I G H T S

OFFICE INDUSTRIAL

FOUNTAIN PLACE

Summer2014

RYAN EVANICHVice President, Stream Realty Partners

“The top three factors driving DFW prosperity are Rick Perry, a pro-business environment, and quality of life, in that order. Companies want to operate as effi ciently as possible, with minimal government interference or taxation.”

BARBARA HOULIHANSenior Vice President, Peloton CommercialReal Estate

“Generally, business owners today are looking for a location that speaks to their workforce and image. It’s less about the convenience of the decision-makers and more about the employees.”

CRAIG JONESIndustrial Division President, NAI Robert Lynn

“Leasing activity continues at a feverish rate, causing competition among tenants for quality industrial space. This is especially true for ‘bread and butter’ deals of 20,000 to 150,000 square feet.”

MICHAEL SPAINSenior Vice President, Bradford Commercial Real Estate Services

“Moving allowances have just about disappeared. Free rent is still available, but not at the level it was a couple of years ago, when you’d expect one month of free rent for every year on the lease term.”

Photo: Kimley-Horn & Associates Inc.

Photo: Tim Hursley

Photo: The Urban FabricPhoto: DART

Photo: Glenn James/NBAE/Getty Images Photo: The Urban Fabric

Photo: UTSW Photo: The Urban Fabric Photo: Dillon Diers Photography

Photo: Baylor University Medical Center at Dallas

IIPOD Union Pacific Intermodal

Baylor Sammons Cancer Center

DART Mockingbird Station Dallas Love Field

DallasMavericks

Downtown Dallas Skyline AT&T Performing Arts Center

University of TexasSouthwestern Medical Center

Magnolia Pegasus DFW International Airport Klyde Warren Park

Photo: DFW International Airport

Dallas-EcoDev.org214.670.1685


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OfficeLeased_SF

46.000000 - 5169.000000

5169.000001 - 16500.000000

16500.000001 - 41419.000000

41419.000001 - 109000.000000

109000.000001 - 265000.000000

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S SCORE CARD

FEDEX OFFICE

DEAL:265,000 s.f. build-to-suit at Legacy West

OCCUPANCY:2015DEVELOPER:KDC

TENET HEALTHCARE CORP.

DEAL:242,000 s.f. at Fountain Place in Dallas

OCCUPANCY: Expansion and renewalLEASING AGENTS: Johnny Johnson and Lauren Napper with Cassidy TurleyTENANT REPS: Phil Puckett, Harlan Davis, and Chris Hermann with CBRE

DETAILS: Tenet, which has occupied Fountain Place since 2009, expanded its lease by about 30 percent in May, signing on for 242,000 square feet through 2025. The 58-story Fountain Place was sold in June to Goddard Investment Group and an affi liate of Metropolitan Life Insurance.

ENVOY

DEAL:142,000 s.f. at 4301 and 4401 Regent Blvd., Irving

OCCUPANCY: July 2014LEASING AGENTS: Johnny Johnson and Rodney Helm with Cassidy TurleyTENANT REPS: Steve McCoy and Alan Harrington with Transwestern; Troy Baron with Weston Commercial.

ENERGY TRANSFER PARTNERS

DEAL:130,000 s.f. at 8111 Westchester in Preston Center

OCCUPANCY: Early 2015DEVELOPER: Bandera VenturesTENANT REPS: Randy Cooper and Dan Harris with Cassidy Turley

TOYOTA MOTOR CORP.

DEAL:125,742 s.f. at The Campus at Legacy in Plano

OCCUPANCY: Summer 2014LEASING AGENTS: Chuck Sellers, Russ Johnson, and Lauren Perry with Peloton Commercial Real Estate represented the landlord, Spear Street Capital.TENANT REPS: Paul Whitman, Brad Selner, and Brooke Armstrong with JLL

DETAILS: Toyota announced in April that it was relocating its U.S. headquarters from California to Plano—a move that will bring 4,000 new jobs to North Texas. While its new campus is being built near the northwest intersection of the Dallas North Tollway and State Highway 121, the automaker has leased space at the nearby Campus at Legacy, giving it room to grow.

<< FedEx’s new offi ce is being built on former JC Penney land off State Highway 121, immediately east of a new headquarters for Toyota. Both projects are being developed by KDC.

OFFICELEASES

LARGEST OFFICE LEASES

46 - 5,169 SF

5,169 - 16,500 SF

16,500 - 41,419 SF

41,419 - 109,000 SF

109,000 - 265,000 SF

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<< Designed by BOKA Powell and developed by Bandera Ventures, the 197,000-square-foot 8111 Westchester will also house Chief Oil and Gas, a partner in the project.

D A L L A SF O R T W O R T H

WITH ENVOY’S TRAINING FACILITY ON SITE, THE HOTELS IN THE AREA ARE GOING TO BE VERY BUSY.

—PEDRO FABREGAS, PRESIDENT

AND CEO, ENVOY

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24 / 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 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

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OfficeLeased_SF

46.000000 - 5169.000000

5169.000001 - 16500.000000

16500.000001 - 41419.000000

41419.000001 - 109000.000000

109000.000001 - 265000.000000

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DALPORT TRADE CENTER

DEAL: 1,564,800 s.f. distribution center in Wilmer

OCCUPANCY: Fall 2014LEASING AGENT: Terry Darrow with JLL

DETAILS: This massive new building is being developed off Interstate 45 by Panattoni for an unnamed tenant, which will use the space as a regional distribution center.

WILLIAMS-SONOMA INC.

DEAL: 821,502 s.f. at Arlington Commerce Center

OCCUPANCY: May 2014LEASING AGENT: Dave Anderson with CBRE represented landlord, Exeter Property GroupTENANT REPS: Tom Pearson and Chris Teesdale with Colliers International

WHIRLPOOL CORP.

DEAL: 725,709 s.f. at Carter Industrial Park

OCCUPANCY: February 2014LEASING AGENTS: Trey Fricke and Reid Bassinger with Lee & Associates TENANT REPS: Tom McCarthy and George Curry with JLL

DETAILS: Whirlpool, a former occupant of the building, re-leased this state-of-the-art distribution center because, among other things, it provides a strategic central location to distribute goods manufactured in Monterrey, Mexico, to U.S. markets.

ALLIANCE GATEWAY 1

DEAL: 499,797 s.f. at Hillwood’s Alliance Gateway 1

OCCUPANCY: July 2014LEASING AGENT: Tony Creme, HillwoodTENANT REP: Sharon Morrison, E Smith Realty Partners

JC PENNEY

DEAL: 420,000 s.f. lease renewal at 1650 S. Highway 67 in Cedar Hill

OCCUPANCY: RenewalLEASING AGENT: The property owner, AP Cedar Hill LLC, was self-represented.TENANT REPS: Nathan Orbin, Melissa Holland, Kurt Griffi n, and Greg Matter with JLL

DETAILS: Plano-based JC Penney did a lease renewal for its South Dallas distribution hub in early 2014.

INDUSTRIALLEASES

LARGEST INDUSTRIAL LEASES

180 - 31,000 SF

31,000 - 130,128 SF

130,128 - 360,000 SF

360,000 - 821,502 SF

821,502 - 1,564,800 SF

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THE INTERSTATE 20 CORRIDOR PROVIDES EXCELLENT ACCESSIBILITY TO A GREAT LABOR FORCE.

—TOM PEARSON, COLLIERS INTERNATIONAL

<< With LG Electronics moving into its new 1.1 million-s.f. home at Alliance, an unnamed tenant has signed on to take occupancy of LG’s former space at Alliance Gateway 1.

The property became available after LG Electronics moved out and into its new 1.1 million-square-foot new home, also within AllianceTexas.



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KROGER MARKETPLACEDEALS: 123,000 s.f. at North Tarrant Marketplace in North Richland Hills, 123,000 s.f. at S.H. 121 in Castle Hills in Lewisville, and 123,000 s.f. at Lantana Town Center in the Denton County town of Bartonville. In early July, Kroger also purchased a 13.35-acre tract at Burleson Commons for a new 114,000-s.f. Marketplace store.

KEY PLAYERS: Cencor Realty Services, an affi liate of The Weitzman Group, is developing the Lewisville store; the other two properties are being developed by NewQuest Properties. The stores will open in 2014 and 2015. Mark Reeder and Tyler Isbell with SRS Real

Estate Partners represented Cullinan Properties Ltd. In the Burleson land sale.

DETAILS: Kroger’s $150 million expansion plan for North Texas includes fi ve new “Marketplace” stores, a concept that goes beyond groceries to include furniture, housewares, toys, and jewelry.

FITNESS CONNECTIONDEAL: 52,688 s.f. at Mills Pointe in Carrollton

KEY PLAYERS: Maury Levy and Robert Luleff with UCR represented the landlord, 2810 E. Trinity Mills Holdings Ltd. Wyatt Russo and Sherman Hinkebein with The Retail Connection represented the tenant.

DETAILS: Based in McLean, Virginia, Fitness Connection is a new and fast-growing fi tness chain that’s backed by a $500 million private equity fund. Its new Carrollton gym will be its fourth, with other centers in Allen, Arlington, and Garland.

STUDIO MOVIE GRILLDEALS: 51,935 s.f. at the southeast corner of S.H. 26 and Hall Johnson in Colleyville, 40,000 s.f., and 40,000 s.f. in Lewisville Towne Crossing at 4740 State Highway 121 in Lewisville (The Colony trade area).

KEY PLAYERS: In Colleyville, Larry Leon and John Zikos with Venture Commercial represented the property owner, ANB Special Assets LLC. In Lewisville, Kendall Ibsen and Jim Weir with The Retail Connection represented the landlord, Endeavor RE Management LLC. The Retail Connection (Alan Shor and Ross Golman) also represented Studio Movie Grill.

DETAILS: The Colleyville theater, which opened in April, features eight screens and more than 1,000 seats. The new venue in Lewisville will feature 10 screens and more than 1,300 seats.

TOM THUMBDEAL: 45,256 s.f. lease renewal in Arapaho Village at 819 W. Arapaho Road in Richardson.

KEY PLAYERS: Robert Luleff and Maury Levy with UCR represented the landlord, 819 W. Arapaho Road Holdings LP.

LA FITNESSDEAL: 37,000 s.f. at Custer Road and Virginia Parkway in McKinney.

KEY PLAYERS: Jean Smith with UCR represented the landlord, Biruk Partners Ltd. The tenant was represented by Jonathan Cooper and John Zikos with Venture Commercial and Walt Brown Jr. and Tim J. Dollander with Diversifi ed Partners LLC.

635

820

35W

35W

35E

35E

75

75

80

175

360

183

114

161

121

78

12

30

30

45

35

20

20

S SCORE CARD

NAME OFPROJECT

SQUARE FOOTAGE: 15,000

BROKER:Firstname Lastname, Company Name

TENEANT REP:Company Na me

NAME OFPROJECT



TENEANT REP:Company Name

HOW THE DEAL WAS DONE: Quote Caectemp orionsequi bla cumquaecab ium electot atempor se audam quaturio etur sequassunt et rem et que volorep erupta que nem quate nonemod itasit poreperibus, si rentotat vit aut ant eium eiur. Ant, con poribus es voleserument eos sus, solupta denditi ute nos mos molupta

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HOW THE DEAL WAS DONE: Quote Caectemp orionsequi bla cumquaecab ium electot atempor se audam quaturio etur sequassunt et rem et que volorep erupta que nem quate nonemod itasit poreperibus, si rentotat vit aut ant eium eiur. Ant, con poribus es voleserument eos sus, solupta denditi ute nos mos molupta

RETAILLEASES

175-3,850 SF

3,850-13,000 SF

13,000-30,000 SF

30,000-60,858 SF

60,858-123,000 SF

1

23

4

5



MARK REEDER

JOHN ZIKOS

LARGEST RETAIL LEASES


TOP COMMERCIAL REAL ESTATE EXECUTIVES GIVE

AN INSIDER’S VIEW ON OFFICE LEASING ACTIVITY

IN NORTH TEXAS—AND WHAT LIES AHEAD

B Y C H R I S T I N E P E R E Z

THE FUTURE

LOOKS BRIGHT

R ROUNDTABLE

SHERYL LANZEL


SUSAN ARLEDGEAs managing principal of Cresa

Dallas, Susan Arledge represents

business and corporate clients

locally, regionally, and nationally.

Prior to taking the helm of Cresa

Dallas, she led Arledge Partners

Real Estate Group, a fi rm she

founded in 1993.

PHIL PUCKETTPhil Puckett is an executive vice

president of CBRE in Dallas, where

he specializes in offi ce tenant

representation in the downtown

and Uptown submarkets. A

signifi cant portion of his 4.2 million

square feet in transactions have

been for law fi rm clients.

JACK EIMERJack Eimer is Central region

president of Transwestern, leading

a team that provides property and

facilities management, leasing,

development, investment sales,

tenant representation, and

corporate advisory services. He also

serves as a company director.

MEET THE REAL

ESTATE EXPERTS

We’re only midway through 2014, but already the year is shaping up to be a banner one for commercial real estate in North Texas, with big relocation announcements and huge development projects under way.

What’s driving activity? Where are the greatest opportunities? And what challenges stand in the way? To tackle these topics, we gathered seven top industry experts for a roundtable discussion. Participating were Susan Arledge with Cresa Dallas, Kim Butler with Hall Financial Group, Jack Eimer with Transwestern, Steve Everbach with Cushman & Wake� eld, Johnny Johnson of Cassidy Turley, Phil Puckett with CBRE, and Steve Thelen with JLL.


KIM BUTLERKim Butler, director of leasing,

oversees marketing and leasing of

Hall Financial Group's 2.5 million-

square-foot offi ce portfolio,

including the award-winning

Hall Offi ce Park in Frisco and the

new Hall Arts development in the

Dallas Arts District.

STEVE EVERBACHAs senior managing director and

market leader, Steve Everbach

oversees Cushman & Wakefi eld in

North Texas and the fi rm’s U.S. Agency

Leasing practice group. During his

career, he has completed more than

8 million square feet of transactions,

with a value of $1.5 billion.

JOHNNY JOHNSONAs executive managing director

and principal, Johnny Johnson

co-leads marketing and leasing

services for Cassidy Turley

clients in Dallas and Houston. He

has closed more than 14 million

square feet of transactions

during his 26-year career.

STEVE THELENAs a managing director for JLL,

Steve Thelen leads offi ce tenant

representation teams that deliver

real estate solutions that align with

his clients’ business objectives. He

has been involved in some of the

most notable lease transactions in

North Texas.

DFW REAL ESTATE REVIEW: Let’s start by getting a midyear update on offi ce leasing activity. How is 2014 shaping up so far? PHIL PUCKETT: We just fi nished our fi rst-quar-ter reports, and they show that the fi rst quar-ter of 2014 has been the best—maybe the best quarter that we’ve seen in history—in terms of absorption. We had 1.1 million square feet of ab-sorption in the fi rst quarter alone. So, yes, I think we’re off to a great start. Not since 2007 or 2008 has vacancy dipped below 18 percent citywide; that’s another positive. We’re currently at about 16 to 18 percent, which is pretty exciting. JOHNNY JOHNSON: The reason that’s signifi -cant, that 18 percent, is because we came off of a point. Back in 2010, vacancy was more than 23 percent. So in a market our size, with more than 200 million square feet, going from 23 percent to under 18 percent is a huge milestone. If you break it down even further, in some key submar-kets we’re seeing single digit vacancy. Just look at Far North Dallas, Richardson, and Plano, where’s there’s a miraculous turnaround with some of the relocations we’re seeing. JACK EIMER: And over the years our central business district market has driven up our vacancy. What’s really exciting this time around is that we’re starting to see some true absorption downtown. I think we’re going to start getting back to a vacancy of 15 percent or less across all submarkets, and that’s going to be a huge positive.KIM BUTLER: That’s the big diff erence. A couple

of years ago, we were talking about the submarket haves and the have-nots. You had Uptown and Far North Dallas/Frisco. Now, if you look at the activity, Las Colinas is doing great. And look what’s happening in Richardson and Plano. The wealth is abundant, and it’s great for the region. STEVE THELEN: Leasing activity is much better than expected. You’ve got the big-name deals like Raytheon, FedEx, and Nationstar. And then you start going down to those submarkets that are hot at the vacancy level. Preston Center and Uptown is 10 percent, Far North Dallas/Legacy is 14 percent. What that has done is drive up net rents—some have gone by 25 percent in the last 12 months.SUSAN ARLEDGE: Clients are confused about that vacancy rate, though. When they’re from out of town and look at that 18 percent, then they come to Dallas and are surprised there’s no space. And the space they do fi nd is much higher than what they expected to pay.JOHNSON: Phil, if you’re looking for a block of space or even a full fl oor in Uptown right now, there are, what, two options? Or, say they need 40,000 square feet. ARLEDGE: Take a sublease. PUCKETT: Maybe a sublease …JOHNSON: For a 14 million-square-foot market, that’s impressive. PUCKETT: The rates at our building in Uptown just went to more than $46 per square foot, plus electric. When we moved in four years ago, it was about $29 per square foot. EIMER: That’s the exciting thing. When the occupancy in a submarket gets up into the high 80s, low 90s, rates don’t go up 5 percent or 7 percent—they spike. They go up 25 percent, 30 percent, and that’s what we’re starting to experience. At least on the investor side, that’s pretty exciting. ARLEDGE: Just look at Advancial Tower off Woodall Rodgers. It was leasing for $19 to $21 per square foot, and now, when renovations are complete, the rates will be in the $30s. Buying that building, at that location, was brilliant.JOHNSON: And then you’ve got deals like State Farm at CityLine in Richardson, which has turned the market upside down. It has grown to 2.5 million square feet. Then the announcement of Toyota, at 1 million square feet. There are probably fi ve deals in the market today that are between 500,000 square feet and 1 million square feet. When we’d have roundtable discussions like this 10 or 15 years ago, if there was a 200,000- or 300,000-square-foot relocation, it would be a big deal.


Today the question is: Are huge deals the new norm? Is the new norm for Dallas 1 million square feet?BUTLER: Everything’s bigger in Texas.

It used to be front-page news when a project would create 200 new jobs. Now the announcements are in the thousands. ARLEDGE: And people forget about Parkland. When the new Parkland opens next year, I believe they’re creating another 2,000 jobs with the biomedical facility and the research facility. Many are coming in from other major medical universities. It’s going to be huge. That medical district is just exploding down there.

What impact will Toyota’s decision to relocate its corporate headquarters to North Texas have on the market? THELEN: I think the biggest impact is going to be how it aff ects build-to-suit costs in that area. Land in the area has already escalated 20 percent to 25 percent, and it has continued to rise. Construction costs have gone up by 11 or 12 percent over the last year and a half. All of that has caused build-to-suit expense to go up by $5 a square foot in that market over the last 12 to 18 months. That means developers are going to try to get higher density on that land, because it has gotten so expensive. There will be more mixed-use.JOHNSON: We were involved with part of that deal, the land transaction. Two years ago, land was under $5 a square foot. Now it’s up the mid-teens, thereabouts. But from where Toyota is coming from (California), and what they’re seeing in other parts of the country where they’ve looked, it’s a tremendous value. STEVE EVERBACH: Toyota’s decision sends a number of messages about the Dallas-Fort Worth area to the country. First, it’s a very prestigious trophy for DFW, as a headquarters location for Toyota. They’ve been in California for 40 or 50 years. Think about all the ancillary companies that serve Toyota and deal with Toyota. Many are going to end up opening offi ces here because of those relationships. Then there’s the perspective of companies from across the country, looking at the decision. Other markets—the upper-Midwest, for example, it’s a diff erent economy. It’s not as strong as what we’re seeing here. Everyone sitting around this table is busy every minute of every day. ARLEDGE: I spoke with an executive at the regional chamber in Charlotte, N.C., a city that competed early on for Toyota, too. He said, “What are you guys doing right? We need to understand what it is that’s so attractive.” I said, “Well, our Dallas Regional Chamber started marketing to California companies two or three years ago. It also helps to have a governor who’s pro-business and who doesn’t mind aggravating other governors with his radio campaigns and his blitz through their states. It has an impact. CEOs listen to that. EIMER: We did a little research and looked at when Exxon relocated here, and found there was very little ancillary business that came along with that. This time, the vendor chain of suppliers and others related to this company—it’s going to be very signifi cant. I was living in Atlanta in the late 1980s, early ’90s, and Atlanta was competing dramatically for big corporate relocations. Within about a 12-month period, as I recall, they got FedEx and Holiday Inn—huge relocations

WE HAVE A GREAT, DIVERSE, STRONG WORK FORCE IN THIS AREA, AND THAT IS PART OF THE ATTRACTION.

— STEVE THELEN

SHER

YL L

ANZE

L


at that time. That opened the fl oodgates. At-lanta had another 10 years of growth that were just incredible; I think this move could be a large moment for this city. THELEN: You remember Exxon? We heard there were 100 executives that had incomes over $1 million dollars a year, and they bought all the big houses in Las Colinas. Imagine 4,000 people coming in from California buy-ing homes in Frisco, Plano, McKinney, Pros-per, Celina—think about what that’s going to do to that housing market up there.

The average salary for those 4,000 peo-ple, according to Forbes, is $100,000 or more—six fi gures. That’s a lot of money coming in. ARLEDGE: If they all choose to relocate. There will be a lot of attrition. JOHNSON: There will be many who move, though, too. When companies off er reloca-tion packages, if 50 percent or maybe 60 per-cent take the package, that’s high. Our tenant rep team is working on State Farm, and more than 82 or 83 percent of the people who were off ered relocation packages came to Texas. Toyota’s not going to be any diff erent. People

want to be here. The chamber no longer has to do the marketing—the word’s out. People who have experienced living here and the quality of life here, the schools and everything else—it has become a known fact that Texas is a place where com-panies and people want to be.ARLEDGE: The groundwork has been laid; the word is out because that happened years ago. We’ve been building on that, and it has paid off .

With all of the companies relocating and expanding here, how are we situated there in terms of employees? THELEN: We have a great, diverse strong work force in this area, and that is part of the attraction. It’s not just the cost of living and the quality of life, but our strong work force. This fact is well known due to labor analytics studies. Dallas always shows up as having a great work force. BUTLER: We were recently talking with a relocation prospect about our work force. Everybody wants to hire the best and the brightest. In the northern sector, we’ve got young workers. I think the average age is 34. And 65 percent or more have a bachelors degree or greater. That’s huge. Companies are going to go where the talent is. And people are just going to keep migrating here because they know the job market’s great. EIMER: And relatively speaking, it’s very aff ordable labor compared to most other cities.EVERBACH: And real estate … very aff ordable real estate.

Do you think we’ll continue to see more relocations? ARLEDGE: Oh, yeah. JOHNSON: It’s the tip of the iceberg.ARLEDGE: There are at least 20 projects right now that are looking at Dallas.


We won’t get them all. We’re competing with other cities. I think there will be some concern for entry-level employers that, between State Farm, Toyota, Nationwide, all of the big jobs that have come in, that it will be harder to hire people at a certain range here. There might be some impact if you’re looking for workers below $20 an hour. BUTLER: Our chamber folks are out there working with all sorts of companies. In our offi ce park in Frisco, we have 180 tenants. I’m talking to six of them that are planning major relocations of other divisions here. Their headquarters may already be here or they may be somewhere else, but they’re moving their sales offi ces, they’re moving their manufacturing, and other divisions; it’s accretive.EIMER: Or like State Farm, which is consolidating on a regional basis. ARLEDGE: The mayor of Torrance, Calif., Toyota’s current home base, was quoted in a newspaper basically saying, “When you look at the package they got to relocate, it makes it incredibly hard to do business here.” Well, let’s just throw in the towel. JOHNSON: It’s not all relocations. A lot of activity is being driven by expansions. The economy is doing well, and companies overall are doing well. Whether it’s a 2,000-square-foot tenant or a 100,000-square-foot tenant, the demand for more space is across the board. Raytheon is a good example of a great company that has been here for years. The new campus they’re doing in Richardson was due to expansion of its internal operations. And look at Las Colinas, which has always been driven by corporate America and the Fortune 500 world. It’s experiencing a big comeback.PUCKETT: What do you think is diff erent from 2006 and 2007, when we had a pretty strong market. What’s diff erent from that and today?JOHNSON: The economy back then was diff erent from the evolving economy now. Today it’s much more global. And U.S. companies have really gone through a tough time, from the bust in 2008 and in 2009 and 2010, when everyone was just reeling. Companies were shell-shocked and just holding on. As businesses started coming back, there was a lot of pent-up demand. And then when it really turned, they were all

well ahead and prepared to grow again. They had a lot of cash reserves, and now we’re seeing the benefi t of that. ARLEDGE: Investors have real money in their projects today, too. The banks were so leveraged back then and projects were highly leveraged, and now investors—whether they are REITs or individuals or corporate investors—have real money in these deals, and they’re more viable. THELEN: What I’ve seen with my clients today is they’re looking more at the ability to recruit and retain good quality employees. They’re putting that fi rst and foremost. If you look at a company’s expenses, probably 70 percent is labor-payroll cost and the real estate is maybe 10 percent. So they’re looking at it correctly. They’re looking at Dallas and they say, “Listen, we can get a good strong workforce here, and by the way, real estate is low cost as well.” So they’re making decisions to expand here, to move here. EIMER: At the end of the day, for our business, it always comes back down to job growth. In the last study, from February to February, we recorded 81,000 new jobs for this market. That’s phenomenal. That ranks in the top fi ve by just about anybody’s standards. And that’s what has drawn us out of this previous recession.

Steve Everbach of Cushman & Wakefi eld (left) and Johnny Johnson of Cassidy Turley.

SHERYL LANZEL


Our research group is projecting, I think, 77,000 new jobs on average for the next three years. Well that gives you a pretty good sense of where this market’s going to be going.

What kinds of trends are you seeing with regard to suburban markets and urban markets? With regard to activity, what are the parallels, and what are the diff erences? BUTLER: I think suburban markets are trying to be urban. Urban is cool. Everybody wants density—it’s beyond mixed use. It’s creating huge areas of critical mass where there’s offi ce, restaurants, hotels, schools, etc. Then there’s the Arts District, which also is going live-work-play, and we’ve needed it there. We’ve had the play; we needed the live and the work. We have residences now, with Museum Tower, once it fi lls up, and Hall is going to build residences. There’s a school, houses of worship, entertainment, everything literally all within a four- or fi ve-block area. EVERBACH: Companies are being smarter about their real estate today. Ten, 15, 20 years ago, real estate was a place where you sat rear ends in seats, with a phone and a computer. Now there are two focuses. One is that real estate can be the identity of a company. It’s branding. You also have to have that economic eye, to make sure you’re using the space as effi ciently as possible. To Jack’s point on job growth, we need the job growth in order to have the absorption. That’s because tenants

are using space more effi ciently. A 100,000-square-foot user today may need 60,000 feet in redesigned space that’s more effi cient and also brands their company diff erently and better. A lot of large renewals are taking less space and putting it back on the market. Yet we’re still getting 1 million square feet in net absorption for the fi rst quarter, which is fantastic. PUCKETT: With the density trends come new challenges—companies want less space but more parking. This is something we need to address sooner rather than later, particularly downtown. The demand is coming, and it’s coming in a big way.JOHNSON: Phil and I are working right now on a deal where parking is an issue. PUCKETT: Following up on Steve’s point about branding, it’s not just the building, it’s the location, whether it’s Uptown or the Arts District or wherever. They’re repositioning their companies and deciding where they need to be to recruit and retain talent. We’re seeing that particularly with law fi rms. But yes, parking is an issue. Kim is smiling because she has the best parking in town.BUTLER: We Texans like our cars. ARLEDGE: You’re not going to get lawyers to ride DART. JOHNSON: People want to be effi cient, and occupancy costs matter, but it’s really all about retention and attracting employ-ees in a very competitive environment. So building features in facilities that gobeyond the conventional … food service, and fi tness and wellness—that’s the new norm.

Just North of Dallas. Far from Ordinary. Close to Perfect.

McKinneyEDC.com

McKINNEY ECONOMICDEVELOPMENT CORPORATION

WITH THE DENSITY TRENDSCOME NEW CHALLENGES;

COMPANIES WANT LESS SPACEBUT MORE PARKING. . .

— PHIL PUCKETT


JOHNSON: We won’t go too far. BUTLER: You’ve got the balance of construction costs. EIMER: That, too. And you hate to have to rely on it, but I hope that the lending com-munity doesn’t ease up, or ease up dramat-ically. Pre-leasing in Dallas has always been the amount of leasing you do a� er you break ground and before you get fi nished. Well, this cycle we have real pre-leasing requirements. If the capital is there and the restraints aren’t, well, we have the best development talent in the world sitting right here in Dallas, and they’re ready to develop.

Do you think that we will get into a situa-tion in the near term where a lack of supply could constrain growth? EIMER: I think that’s a legitimate question. JOHNSON: For deals that are moving fast, for really large deals that just don’t have options, they might consider another city if they can’t fi nd the options they want here in a timely manner. But those are few and far in between. You still got a market that has 18 percent va-cancy. In key markets, there is a shortage of large quality blocks of space, but there are still ample options.

Looking ahead, what are the biggest challenges the DFW offi ce leasing market offi ce will face this year?EIMER: I was asking some of the brokers in our shop about that, and their response was: man-aging client expectations—on both sides.PUCKETT: That’s a good point.EIMER: We’re in a market—it’s a sliver of time in Dallas called a landlord’s market. And it doesn’t last very long, usually. You’ve got landlords now getting pretty aggressive. On the other hand you’ve got tenants trying to get deals that may-be their friends got just a year ago. They don’t understand why they can’t get the same deal. It’s an interesting point, and it’s on both sides of the spectrum. THELEN: Long-term, I think our biggest chal-lenge could be our water solution, as we start approaching 10 million people in this area. Short-term, I think it’s the demand on con-struction services. We’ve got Midland compet-ing for it, we’ve got Houston competing for it—people are being drawn all over the state. And then I think we’ve got to make sure our trans-

EIMER: And all of a sudden we’ve got a huge generational gap. Decision-makers are trying to decide, how do I attract the highest class of millennials? And what should the space be like to help them be the most effi cient? Because it’s probably diff erent than what made me the most effi cient. At the same time, they don’t want to get too trendy.THELEN: Tenants are also starting to realize that they may need to compete for space. Many of my clients are becoming more decisive, because they know they’ve got to make a decision or the space can go away. That’s one of the trends I think we’ll see for the next 12 months, as there’s going to be more demand than there is supply.

So what does that mean for development? JOHNSON: It’s here. We’ve got a lot of land. The growth is going to continue to the north and now the northeast to some degree, and the northwest corridor is going to continue to evolve. PUCKETT: But will it be excessive? Will we overbuild? JOHNSON: It feels like it’s manageable. As we’re talking to prospects, it doesn’t feel like people are way out over their skis. They’re still careful about their decisions. And fi nancing will evaluate whether it makes good sense or not. But the reality is, for these big, big deals, the only alternative is a build-to-suit. EVERBACH: You hit on a good point: The lenders are helping us help ourselves. ARLEDGE: Yes, forcing us. Forcing us. EVERBACH: The money is available, but it is only available for developments that actually make sense and are not fee-driven. The worst headline I’ve seen in the last month was, “Lenders easing restrictions.” That’s a drug we don’t need here, because look at what happened the last three or four cycles. This time, development is re-stricted by capital, which is good. I think that’s the best medicine we can have. Keep it under control. I don’t think any of us want to see another bubble on the supply side.

Jack Eimer of Transwestern and Kim Butler of Hall Financial Group.

SHERYL LANZEL


portation network stays ahead of the growth. We don’t want to be a bottleneck community. We want to make sure DART works and that our highway systems work. I think we’re head-ing in the right direction with that, but I think those are the concerns I have, short- and long-term. BUTLER: I agree that we’re making a lot of prog-ress, but the water issue is something we need to look at. Just recently out in Frisco, we were installing a new type of grass. It’s actually com-bination of fi ve diff erent grasses. It was devel-oped at the University of Texas, and it’s used at the Bush Library. It requires very little water. The education of developers and corporate us-ers that are building their own facilities, on how we can conserve our natural resources better—I think that’s going to be key. EIMER: We know that we’re going to be facing rising interest rates. We’re in an abnormal pe-riod of time. And we’re all learning to live with-in the low interest-rate environment. It’s aff ect-ing everything. It is going to change. It has to, and it will be interesting to see what impact that has. EVERBACH: And as rates go up, one side, sell-er or buyer, is going to have to accept a lower return. Last time this occurred, the buy side accepted a lower return. That will probably happen again, because there’s so much cash available. Currently, there’s a tremendous amount of capital looking at Dallas. From a sta-bility standpoint and an attractiveness stand-point for that capital, Dallas, unlike fi ve or sev-en years ago, is a bull’s-eye on the map. It was the coasts, and then Houston worked its way in there because of the energy concentration and the attractiveness of that market as the third coast. But now, the DFW area is very well posi-tioned, and I think that will continue for the fore-seeable future. ARLEDGE: All that capital that had been on the sidelines is now in the fi eld. THELEN: An expression I heard is, “You’re never as good as you think you are, and you’re never as bad as you think you are.” We’re somewhere in between. PUCKETT: In terms of challenges, I go back to downtown. Our city will always need a healthy CBD. The great news is that good things are happening downtown again. But if we don’t get focused on this parking issue, we’re going to have some serious problems. The city, or whoever

needs to get this going, needs to get it going now. The good news with our CBD is we’re getting great new ownership of many properties; good things are happening. JOHNSON: For a long time, people talked about revitalizing downtown; and, with such strong sponsorship, it’s fi nally happening. Fountain Place is a good example. A new owner is coming in who will transform the asset, address the parking issue in a huge way, play into what the neighbors are doing all around the building. It’s going to help transform part of downtown that for too many years languished. ARLEDGE: People can do what Craig Hall did: build a parking garage and share the facility, utilizing it for diff erent amenities. There have to be more opportunities to do public-private opportunities like that for parking.

Let’s close by getting everyone’s general outlook with regard to offi ce leasing activity for the next 12 months.PUCKETT: Extremely optimistic, based on current workload. EIMER: Yeah, very optimistic. This is a time when the sun’s shining, and you’ve got to take advantage of it. If there was ever a time to work real hard, it’s now. BUTLER: Fortunately, we have great city leaders and heads of companies looking at the city and the vision and how do we protect its health going forward. That’s something other cities also enjoy, but I think in the Dallas region as a whole, we have more leadership in place solving the problems of the future. So I feel great about it. EVERBACH: If you’re on the investor/owner side, your returns are going to increase for the foreseeable future. If you’re on the tenant’s side, your rent’s going up. So, I’m optimistic for the DFW area, cautiously optimistic nationally. JOHNSON: Now’s the time to not just work hard, but work smart. Clients need us now more than ever. Work smart for them. It’s easy to be sloppy in a good market, but now’s the time to be thoughtful and value your clients. ARLEDGE: I wouldn’t have said this two years ago, but now’s a great time for young college graduates, 20-somethings, to get into the real estate business. We’re starting to see more graduates look at commercial real estate as an option again. THELEN: I’m optimistic. Everything looks good. Companies are going to continue coming to Dallas. We’re going to see more development in Uptown and Preston Center, and we’ll see a lot of build-to-suits in the northern suburbs, as there’s a lack of that type of space up there right now.

Well, it sounds like the future looks bright. Thanks to everyone for sharing your insights and perspectives today.

IT ’S EASY TO BE SLOPPY IN A GOOD MARKET. BUT NOW’S THE TIME TO BE THOUGHTFUL AND VALUE YOUR CLIENTS.

— JOHNNY JOHNSON


It’s hard to appreciate of the size and scope of CityLine without a little perspective. Consider that in 1940, a century after Richardson was � rst settled, the small town was home to just 740 people. By 1961, it had about 16,800 residents. When CityLine opens in late 2015, the development will have a daytime population of more than 16,000. In other words, it will replicate growth that its hometown took 120 years to achieve.

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 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 9D A L L A S R E G I O N A L C H A M B E R

S�o, what does it take to build a city within a city? A huge team of players at the top of their game—and plenty of cooperation. At full build-out, CityLine will contain 6 million square feet of offi ce space, 300,000 square feet of retail space, and thousands of apartments.

Already, State Farm has signed on for 2 million square feet of offi ce space, and Raytheon will take another 500,000 square feet. A 150-room Alo� hotel is in the works, as are a Cinemark movie theater, a 17,000-square-foot fi tness and wellness facility, numerous shops and restaurants, more than 500 apartments, and a shopping center anchored by a specialty grocer.

City Manager Dan Johnson credits former civic lead-ers with recognizing the importance of mass transit. Richardson has four rail stops on the Dallas Area Rapid Transit’s red line, including one that’s part of the CityLine development. The city also sought to keep the land as one large tract to attract a large-scale, high-impact project, Johnson says. “Truly, if you really study the story of this, it is an anatomy of decades,” he says. “It is the result of many prior leaders and administrators doing the right thing on their watch in order for it to be ready to be devel-oped by the current team.”

Another key factor was the construction of the Presi-dent George Bush Turnpike, which provides important access to the property. In 2010, approvals were secured for form-based zoning, which allow a developer to meet timeframes with minimal red tape. The city also put into place a tax increment fi nancing district, as it knew the

A ANATOMY OF A DEAL

TED WILSON

By Kerry Curry

W I T H I N A C I T YB U I L D I N G A C I T Y

Discover Success in Tenant Representation www.cassidyturley.com | 972.692.1750

Property Management / Capital Markets / Corporate Services Tenant Representation / Project & Development Services / Project Leasing

THANK YOUFor a project to accomplish great success, it takes a great team. Cassidy Turley is thankful to have had the opportunity to work with such talented companies, and want to say thank you to State Farm, KDC, Corgan and all the other members of the team.





site would require a signifi cant investment in infrastructure. It was a strategic move to foster interest in the land, Johnson says.

KDC, which had developed other large proj-ects in Richardson, began looking at the proper-ty in 2012. “We were seeing more interest from corporate users in transit-oriented, live-work-play developments,” says Toby Grove, president of KDC. The company began master-planning the site and pursuing build-to-suit opportu-nities. It was then that discussions with State Farm began.

KDC put the 186-acre tract under contract, and closed on its acquisition in December 2013. By March 2014, it was breaking ground on State Farm’s new campus.

“We’ll have roughly 16,000 people on this site on a daily basis in a relatively short time frame,” Grove says. “That supports the residential and the retail and provides a great environment for employees.”

THE RIGHT FEELTo help create CityLine’s fl ow and sense of

place, KDC turned to a team of experts, includ-ing Omniplan, which established criteria for

things such as streetscapes, storefront design, and lighting. It set requirements on how wide sidewalks could be and how parking should be confi gured.

“I think the whole project is interesting be-cause it underlines how the workplace is chang-ing,” says Tip Housewright, principal at Om-niplan. “Young employees want to work in a vibrant workplace. Here’s a major corporation [State Farm] that is partnering with KDC to rein-vent the workplace.”

Omniplan collaborated with a number of oth-er fi rms, including Corgan, Good Fulton & Far-rell, the Offi ce of James Burnett, Kimley Horn, and Retail Street Advisors.

Once CityLine is developed, Transwestern will oversee property and facilities management for the whole shebang. The commercial real estate fi rm beat out several other contenders to secure the plumb assignment—the largest in Tran-swestern’s Central region.

“This is a phenomenal development with so many diff erent facets,” says Jack Eimer, re-gional president of Transwestern. “It’s going to really anchor Richardson and transform the market.”

C I T Y L I N EN U M B E R S

1.1 MILLIONMAN HOURS

HAVE BEEN PUT INTO THE CONSTRUCTION IN ONE YEAR.

108,000CUBIC YARDSOF CONCRETE

HAVE BEEN POURED.

MORE THAN

12,000 TONSOF REBAR

HAVE BEEN INSTALLED.

AN AVERAGE OF

950 WORKERSHAVE BEEN ON SITE ON A DAILY BASIS.

MORE THAN

2.5 MILLIONSQUARE FEETOF OFFICE SPACE ARE

INCLUDED IN PHASE 1 AND 2.

JUSTIN TERVEEN





In April of 2012, execs from State Farm got in touch with their longtime North Texas real estate brokers, Randy Cooper and Craig Wilson of Cassidy Turley, to talk about a top-secret expansion the company was considering. It was a deal that could potentially be as large as 500,000 square feet, maybe one day expanding up to 750,000 square feet. The insurer was thinking it would look for an existing facility with land for expansion, or perhaps it would build from the start, a typical campus of tilt-wall buildings with surface parking.

By the summer of 2012, Cooper and Wilson had taken diff erent State Farm execs on tours of numerous sites. A� er one such tour, the brokers gathered with their cli-ents in a hotel lobby to recap the possibilities. It just so happened that a number of diff erent division heads were there, and they used the opportunity to have an inter-nal meeting. Each leader talked about anticipated employee counts for certain di-visions within the organization. Cooper and Wilson took notes and did some quick math. The numbers added up to about 7,500 jobs.

The brokers looked at each other, silently reaching the same conclusion: State Farm was going to need a whole lot more than 750,000 square feet.

There had also been some discussions that maybe a tilt-wall campus wasn’t the way to go. Instead, what if the company created a place that would help it recruit and retain a vibrant workforce as an “employer of choice.” What if it created an exciting environment where people would want to spend their entire careers?

A� er that, everything changed. Because of the larger size requirement, developing a new campus was the only real possibility. But State Farm didn’t want to delay its growth. So that meant also fi nding large blocks of existing space where it could bring on new employees. On top of everything else, the company needed a place to house its large catastrophic operations center.

“The market was really confused,” Cooper says. “We were looking for temp space and long-term space, no one knew who the client was, and we were all over the city.”

A KDC-controlled site near the intersection of State Highway 190 and U.S. 75 quick-ly emerged as a front-runner for State Farm’s campus. The tract off ered access to a deep labor pool, both within Richardson and other cities in all directions, with its on-site DART station. And the design possibilities were endless. In one development meeting, the team was talking about the effi ciencies of value offi ce buildings with 40,000-square-foot fl oorplates. Steve Van Amburgh, CEO of KDC, looked at the group and said: “You’re going to need 40 of those!”

TIMELINE

April 2012Cassidy Turley kicks off “Project Guapo” for State Farm.

January 2013State Farm enters into lease agreement with Champion Partners for 311,000 s.f. in two building at 2375 N. Glenville in Richardson.

September 2012State Farm leases 405,000 s.f. from Brookfi eld for a national catastrophic operations center at Regent Commons in Irving.

August 2012State Farm enters into a lease with Champion Partners for 291,000 s.f. at 1011 Galatyn Parkway in Richardson.

June 2013State Farm leases 812,000 s.f. from Cawley Partners and the owners at Lakeside Campus in Richardson.

June 2013State Farm renews its lease with UBS at 8222 Belt Line in Irving for 135,000 s.f.

December 2012State Farm leases 1.52 million s.f. from KDC for the fi rst three offi ce buildings at CityLine in Richardson.

April 2014State Farm enters into a 530,000 s.f. lease with KDC to construct a fourth building at CityLine.

2 0 1 2 2 0 1 42 0 1 3

Since 2012, State Farm has leased more than 4 million square feet of DFW offi ce space.

K I N D O F A

B I G D E A L

A ANATOMY OF A DEAL

State Farm’s four-building, 2 million-square-foot lease at CityLine is the largest o� ce transaction in DFW’s history. Here’s a behind-the-scenes look at how it evolved.

By Christine Perez

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 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 3D A L L A S R E G I O N A L C H A M B E R

Van Amburgh went on to explain that State Farm could have all of the effi cien-cies of tilt-wall buildings by building taller buildings of varying heights—that it could create the exciting “city” environment the company wanted. “It was a great moment,” Cooper says.

Critical to making it work was the avail-ability of large vacant blocks where State Farm could take immediate occupancy. Market conditions worked in State Farm’s favor, and the company was able to secure about 2 million square feet in various facili-ties. Local ownership and cooperative exist-ing tenants (see “Jumping Through Hoops” at right) helped everything come together.

The landlords—Jeff Swope and Steve Mo-dory at Champion Partners and Bill Cawley with Cawley Partners—saw a revenue op-portunity, but they had their civic hats on, too, Wilson says: “They were just as excit-ed about the economic impact and what it meant for Dallas.”

State Farm will be an outstanding cor-porate citizen, Cooper says. “If you look at their track record, they’re all about em-

JUMPING THROUGH HOOPS

CITIGROUP405,000 s.f.

RegentCommons,

Irving

ERICSSON812,000 s.f

LakesideCampus,

Richardson

BANK OF AMERICA

311,000 s.f.2375 N. Glenville,

Richardson

A critical element in paving the way for State Farm to expand in North Texas was fi nding large blocks of space for the company to occupy while its CityLine campus was being built. This was complicated by the fact that three of the spaces were occupied by other tenants. State Farm’s brokers, Randy Cooper and Craig Wilson of Cassidy Turley, had to secure tri-party agreements with the existing tenants—all huge corporations—agreeing to early move-outs:

HELEN

A BOLOGNA

A R C H I T E C T U R E | I N T E R I O R D E S I G N | C O R G A N . C O M

S TAT E FA R M D A L L A S H U B AT C I T Y L I N E

DESIGNING FOR WHAT’S NEXT

ployee retention and community involve-ment,” he says. “They have a strong history of being a key component of any commu-nity they’re in.”

The assignment meant about two years of nearly nonstop work—nights, long week-ends, and missed summer vacations. “It was stressful, it was fun—it was all worth it,” Wilson says. “It was one of those things you hope you get to experience again, but know you probably never will.”

Randy Cooper

Craig Wilson


DESIGN TEAMArchitect: Corgan

Interior Design: Corgan

Civil: Kimley-Horn

Landscape Architect: Offi ce of James Burnett

Structural: L.A. Fuess

MEP/FP/Security: Telios

Roofi ng: Amtech

Parking: HWA

Code: Aon

Door Hardware: Allegion

Vertical Transportation: HH Angus

Accent Lighting: LuM

Acoustical: Jaff eholden

Signage / Wayfi nding: RSM

Envelope: Vertical Solutions

Wind Engineer: CPP (Cermak, Peterka, Petersen)

Audio Visual: GAP Solutions Group

CONSTRUCTION TEAMContractor: Austin Commercial

MEP: Brandt

Concrete Formwork: Capform

Concrete Formwork: Potter

Concrete: Southern Star

Concrete: TXI

Precast Concrete: Gate Precast

Glazing: Harmon

Drywall: Drywall Interiors

Access Flooring: Prestige Interiors

Millwork: Woodhaus

Elevators: Thyssen Krupp

G O I N G U P

K E Y P L AY E R S

July 2014Fourbuildings under construction January 2015

One CityLine and Three CityLine to be occupied

May 2015Two CityLine to be occupied

Q1 2016Four CityLine to be occupied

2 0 1 4 2 0 1 62 0 1 5

A ANATOMY OF A DEAL

DEVELOPER: KDC | TENANT: State Farm

S TAT ESKYBRIDGE> Connects One and Two CityLine

at the sixth level to connect conference and training areas at all three buildings.

> 203 feet long overall.> Primary span of 145 feet

was constructed almost entirely on the ground and this nearly 100-ton piece was lifted into place with a single crane.

> The bridge also carries chilled water piping and other utilities between buildings to allow for a single Central Utility Plant to serve all three.

LIVE-WORK-PLAYEmployees will have easy access to many amenities.

O F T H E A R T

State Farm lobby

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 54 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

CITYLINE PLAZAMore than 92,000 square feet of retail, restaurant, and entertainment venues with sidewalk cafes and patio seating will frame CityLine Plaza and State Street.

GLASS AND STEEL AT TWO CITYLINEAn 80'x50' glass-enclosed corner element will culminate in a series of illuminated fi ns that extend another 50 feet above the highest concrete roof, using more than 60 tons of steel.

ON A PEDASTALEach building sits atop a fi ve-level parking structure over ground-fl oor retail space.

IMMEDIATE IMPACTFrom the start, State Farm's new campus will house more than 8,000+ employees—a ready consumer base for retail and restaurant tenants.

689 MILLION POUNDS OF CONCRETEOne, Two, Three, and Four CityLine will use a projected 170,000 cubic yards of concrete upon completion. That would weigh about 689 million pounds.

OPEN AIR PLAZA The focal point of the initial phase will be CityLine Plaza, a centrally located urban plaza designed by the Offi ce of James Burnett, the landscape architect of Dallas’ Klyde Warren Park. The natural looking landscaped plaza will off er open space for outdoor concerts and festivals, shaded gathering spots for meetings or meals and walkways for pedestrian experiences.

STATE FARM’S LEASED SPACE IN CITYLINE TOTALS

2 MILLIONSQUARE FEET

150-ROOM ALOFT HOTEL

SOURCE: CORGAN, L.A. FUESS, DALLAS-FORT WORTH REAL ESTATE REVIEW RESEARCH

20,000 SQUARE FEET OF ENTERTAINMENT SPACE

403APARTMENTUNITS

300APARTMENTUNITS


Listen Solve

Not everyonehas a vision

MEP EngineeringTechnologyCommissioningOwner Representation

Proud to be a part of CityLine

teliospc.com

CONGRATULA-CONGRATULATIONS

CONGRATULATIONS

A ANATOMY OF A DEAL

A Day in the LifeCityLine’s live-work-play environment puts everything within easy reach.

Most cities grow in random fashion, evolving bit by bit over time. Imagine having the opportunity to de-sign a community for more than 16,000 people—from scratch. That’s exactly what a collaborative team of de-signers have had the opportunity to do with CityLine. They’ve been able to consider pedestrian traffi c fl ow and how the diff erent components should best interact.

“What’s exciting about the CityLine project is that it’s a state—if not national—example of where contem-porary offi ce and residential mixed-use development is going,” says Dan Johnson, Richardson’s city manager.

The opportunity to plan such a development is rare. It’s all made possible by the fact that CityLine is an-chored by at least 2.5 million square feet of offi ce space for State Farm and Raytheon. That creates a ready-made base of consumers to support the simultaneous development of residential, hotel, medical, entertain-ment, and retail space.

The walkable urban development will promote a healthy lifestyle and provide plenty of opportunities to get outside. The fi rst phase will include two parks, the 1.3-acre CityLine Plaza and the 3.5-acre CityLine Park. Both are being designed by renowned landscape archi-tect the Offi ce of James Burnett, designer of Dallas’pop-ular Klyde Warren Park. On the east side of the project, nearly 20 acres are currently set aside for green space.

CityLine Park will provide a welcome respite from the hustle and bustle of work, Johnson says, with a quiet wooded area right next door. “There are some very tall trees—some that have been there for decades,” he says. “Other trees will be planted. The meandering trails will create almost a treehouse-eff ect, because of the terrain that falls down below.”

Many companies want to create their own campus and have their own amenities. CityLine goes well be-yond that and takes a new approach, says Joe Haver, project manager with Corgan.

“The live-work-play, this excitement, this vibran-cy—I think it’s going to be a really neat place to be,” he says.

A P L A C E T O

WA L K A B O U T

Two parks will be developed as part of CityLine’s fi rst phase:

CITYLINE PLAZASIZE: 1.3 acresLOCATION: Centrally located within the developmentFEATURES: A natural-looking landscaped plaza will off er open space for outdoor concerts and festivals, shaded gathering spots for meetings or meals, and inviting walkways for an enjoyable pedestrian experience. More than 92,000 square feet of retail, restaurant, and entertainment venues with sidewalk cafés and patio seating will frame CityLine Plaza and State Street.

CITYLINE PARKSIZE: 3.5 acresLOCATION: Western side of phase one, bounded by the DART red line.FEATURES: The park will off er expansive open space, a hike-and-bike trail that will ultimately extend as far south as White Rock Lake, an amphitheater, and a children’s play area.

B Y K A I L E Y G A M B L E G E T T I N GO U T S I D E

OUTSIDE. IN THE CITY.

CITYLINEDFW.com

In Line With The Future. A new

mixed-use development at

George Bush Turnpike and

Central Expressway. Coming

summer 2015. Office, restaurant

and retail spaces available now.


G E T T I N GO U T S I D E

OUTSIDE. IN THE CITY.

CITYLINEDFW.com

In Line With The Future. A new

mixed-use development at

George Bush Turnpike and

Central Expressway. Coming

summer 2015. Office, restaurant

and retail spaces available now.


Thank you, KDC, for selecting A&P as your builder for Raytheon’s new Richardson campus.

innovate. collaborate. outperform.


Thank you, KDC, for selecting A&P as your builder for Raytheon’s new Richardson campus.

innovate. collaborate. outperform.

Congratulations KDC,and

Welcome State Farm and Raytheon

CityLine is transforming

Richardson’s skyline

www.telecomcorridor.com

State Farm at CityLine, Richardson, TX

INNOVATION | EXPERIENCE | SERVICE

A ANATOMY OF A DEAL

6:30 A.M.Hit the snooze button for an extra 15 minutes in your CityLine apartment—no traffi c jams for you. Wake up, walk the dog, and start your day.

7:00 A.M.Stroll through the plaza to drop off dry cleaning.

7:15 A.M.Head to the wellness center for yoga class. Hit the showers to get ready for the work day.

8:30 A.M.Stop off at a Grab-n-Go station for coff ee, a banana, and a muffi n.

8:45 A.M.Arrive at the offi ce.

NOONMeet a friend at the DART's red line station, then walk to a fast-casual restaurant. Get lunch to go and eat outdoors in the plaza.

1:00 P.M.Stop off at the apartment to check on the dog. Call CityLine hair salon to confi rm the next day’s appointment, then pick up a prescription on the way back to work.

1:30 P.M.At the offi ce again.

3:00 P.M.Walk to the Aloft hotel to meet out-of-town co-workers arriving for a two-day conference.

3:30 P.M.Back to the offi ce for meetings. Administrative assistant brings in trays of goodies from the fi rst-fl oor deli.

5:00 P.M.Take advantage of the nice weather and catch up on emails using the free Wi-Fi in the plaza.

5:30 P.M.Head to the tavern for happy hour.

6:30 P.M.Walk back to the apartment, take the dog for a walk around CityLine park, then get ready for the evening.

7:30 P.M.Walk to the plaza and have dinner with out-of-town co-workers.

8:45 P.M.Make a quick stop at Whole Foods for some milk, produce, and organic dog food. Run into neighbors on the walk back to the apartment.

9:30 P.M.In for the night.

Communities typically evolve and grow over time. But the pure scale of CityLine’s o� ce component—more than 2.5 million square feet—means immediate support for residential, retail, hotel, entertainment, medical, and other uses. With so many amenities on site, here’s how a typical CityLine worker might spend his or her day.

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 W5 0 / D A L L A S - F O R T W O R T H R E A L E S TAT E G U I D E

2

11

21

5

31

32

15

1

13

23

717

9

19

34

3

12 22

33

6 16

26

4

14

818

10 20

30

PRESIDENT GEORGE BUSH TURNPIKE

CITYLINE DRIVE (PLANNED)

E. RENNER RD.

DART

RAI

L RED

LINE

N. P

LAN

O RD

.

1 CityLine OneState Farm Offi ce360,000 s.f.

2 CityLine TwoState Farm Offi ce710,000 s.f.

3 CityLine ThreeState Farm Offi ce450,000 s.f.

4 CityLine FourState Farm Offi ce530,000 s.f.

5 Aloft Hotel150 Rooms

6 CityLine Plaza

A DART plaza welcomes transit riders and encourages them to shop and dine. Parking for DART Bush Turnpike rail station is under the Bush Turnpike overpass.

Once the initial phase is complete, the daytime population at CityLine will top 16,000.

A ANATOMY OF A DEAL

5L AYL A N D

O F T H EALOFT HOTEL

State Farm's offi ce towers are situated on fi ve-level parking structures, along with ground-fl oor retail space.


THE PROJECT WILL DIRECTLYAND INDIRECTLY EMPLOY

17,000 PEOPLEIN THE DFW AREA

IT WILL DIRECTLY AND INDIRECTLY LEAD TO

$7.3 BILLION DOLLARS IN SALARIES PAID

THE CITY OF RICHARDSONWILL RECEIVE

$13.5 MILLION IN PROPERTY TAX REVENUE

IT WILL ALSO RECEIVE

$7.2 MILLION IN SALES TAX REVENUESOURCE: City of Richardson

ECONOMICIMPACT OVER A10-YEAR PERIOD

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 G U I D E

30 DART Bush Turnpike Station 31 Entertainment complex 32 Medical offi ce building

42,000 sf

33 Anchored retail center11.33 acres

34 Hotel

25

27

29

24

28 WYN

DHAM

LN.

7 Multifamily220 units

8 Multifamily 150 units



11 CityLine Park3.5 acres

12 Multifamily400 units (Third Party)

13 Multifamily 400 units (Third Party)

14 Offi ce 500,000 s.f.

15 Offi ce700,000 s.f.

16 Offi ce900,000 s.f.

17 Multifamily

18 Entertainment Complex




22 Whole Foods40,000 s.f.

23 Offi ce, 300,000 s.f.





28 Raytheon Campus600,000 s.f.

29 Offi ce Campus400,000 s.f.

About 1,700 employees will operate out of Raytheon's new CityLine campus

KDC plans to achieve LEED Silver certifi cation from the U.S. Green Building Council.

KDC thought the name "CityLine" was especially appropriate because the project will be an instant "city within a city."

At full build-out, the project will include 5 million square feet of offi ce space, 300,000 square feet of retail space, 3,925 apartments, and two hotels.

When Raytheon was evaluating real estate options, it discovered that the center point of employees’ homes was just a couple of blocks east of CityLine in Richardson.

An on-site shopping center will be anchored by a 40,000 s.f. Whole Foods.

Subterranean loading will allow the functional elements of restaurants and retail at CityLine Plaza to be hidden and not detract from shopping and dining experiences.

Runners and cyclists will ultimately connect to a trail system that runs as far south as White Rock Lake.

The$1.5 billionCityLine sits on 186 acres.

DARK

SERG

E20

5 DART BUSH TURNPIKE STATION

SOURCE: DALLAS-FORT WORTH REAL ESTATE REVIEW RESEARCH


K E Y P L AY E R S

A ANATOMY OF A DEAL

C R E AT I N G A H I G H -T E C H

C O M M A N D C E N T E R

DEVELOPER: KDCTENANT: Raytheon

DESIGN TEAMArchitect: HKS Inc.

Interior Design: HKS Inc.

Civil: Kimley-Horn

Landscape Architect: TBG

Structural: RLGoodson

MEP/FP/Security: Syska Hennessy Group

MP Design Build: TD Industries

Electrical Design Build: Walker Engineering

Roofi ng: Amtech

CONSTRUCTION TEAMContractor: Adolfson & Peterson

MP: TD Industries

Electrical: Walker Engineering

Fire protection: North Star

Earthwork: Vilhauer

Concrete: Osburn

Site Utlities: Wright Construction

Steel: Thornton

B Y C H R I S T I N E P E R E Z

Raytheon isn’t one to move around a lot. In fact, its current Jupiter Road complex in Garland, which houses its Intelligence, Information and Services (IIS) operations, dates back to the 1950s. But things are about to change—in a big way.

The defense contractor will join State Farm as an offi ce anchor of CityLine, oc-cupying a new three-building campus KDC is developing at the southwest corner of State Highway 190 and Wyndham Lane in Richardson.

In announcing the news, Lynn Dugle, president of Raytheon IIS, said the devel-opment would allow for expansion as the business unit grows. “Our new offi ces will also help us support the missions of our customers and will better refl ect our role as a global technology and innovation leader in such areas as information pro-cessing, big data, cyber security, and weather data exploitation,” she said.

About 1,700 employees will move to the new cam-pus when it’s complete in late 2015 or early 2016. Most will have a much shorter commute. When Raytheon was evaluating real estate options, it discovered that the bullseye of a scatter map of employees’ homes was just a couple of blocks east of CityLine in Richardson.

In May, Bill Foley, director of operations for Ray-theon, told a crowd at a Richardson Chamber of Com-merce luncheon that the company picked the CityLine site because the location provided access to a young, technical workforce. The look and feel of the campus, designed by Dallas-based HKS Inc., will be more in line with the defense and aerospace industry, he said, and is destined to become a DFW engineering hub.

In addition to Richardson’s highly skilled labor force, access to DART’s Bush Turnpike Station was key factor in Raytheon’s selection of CityLine.

Toby Grove, president of KDC, said the new tenant will fi t right in, complement-ing the entire development and enabling Raytheon “to attract and retain the best possible talent for years to come.”

The company was represented in its search by Brad Selner and Stephen Holley with the Dallas offi ce of JLL, along with Michael Condon and Brendan O’Shaugh-nessy with JLL’s Los Angeles offi ce.

Raytheon has about 8,000 employees in the North Texas region, including those who work for the IIS division. Other operations include Raytheon’s Missile Systems division and its Space and Airborne Systems group, which last year moved to McKinney from Southern California.

THE LOOK AND FEEL OF THE CAMPUS, DESIGNED BY DALLAS-BASED HKS INC., WILL BE MORE IN LINE WITH THE DEFENSE AND AEROSPACE INDUSTRY.

LOCATION30.5-acre tract at the southwest corner of State Highway 190 and Wyndham Lane.


K E Y P L AY E R S

SECURITYThe campus will be secured by a 6-foot fence and have 24-hour manned guard shacks at all three entrances.

TIMINGConstruction kicked off in July 2014; completion is scheduled for late 2015 or early 2016.

COMPONENTSTwo three-story, 145,719 s.f. offi ce buildings; one four-story 194,773 s.f. offi ce building, and one single-story 4,000 s.f. storage and distribution facility.

Source: City of Richardson


Thousands of workers will converge upon CityLine when State Farm and Raytheon move into their new offi ce buildings in 2015. Some will have just a short walk to work, with residential options conveniently located on site.

Construction will begin in early August on the fi rst of two planned luxury apartment communities. Dallas-based JLB Partners is pairing up with CityLine developer, Dallas-based KDC, to build the multifamily components.

JLB’s projects will provide 532 apartment units in the heart of the develop-ment, CityLine Plaza. The yet-to-be-named communities will sit just south of the offi ce buildings being built on Plano Road. The fi rst phase will be a four-story project wrapped around a parking garage that sits above ground-level retail. The second phase will be fi ve stories tall.

Apartment units will range from one to three bedrooms and 573 square feet to 1,550 square feet. Amenities include resort-style swimming pools, fi tness centers with cardio and strength training options, and pet-friendly perks, including a dog park and dog washing station. The properties also will off er bicycle storage for res-idents who want to take advantage of the city of Richardson’s nearby trail system.

“From the ground up, this is going to be a very urban environment and it’s going to happen very quickly, instead of evolving over time as some mixed-use developments do,” says Walt Mountford,

vice president of KDC. “When the offi ce component is done in May 2015, we will have 900 apartments ready for residents, along with the hotel and restaurants.”

The massive development also is sparking additional construction nearby. Immediately south of CityLine at Plano and Renner roads, Zale/Corson Group Inc. is developing The Standard at CityLine. Comprised of four- and fi ve-story, urban-style residential buildings with retail on the ground fl oor, the fi rst section of phase one is expected to open in November.

The Standard will include a total of 836 multifamily residential units with structured parking. Teresa Nix, a spokeswoman for Zale/Corson, says the fi rst-phase units will range from 540-square-foot effi ciencies to 1,008-square-foot one-bedrooms. Two-bedroom units will start at 984 square feet; three-story townhomes will be as large as 1,949 square feet, with 3.5 baths and attached two-car garages.

Interiors will feature granite in kitchens and bathrooms, 13-foot ceilings on the fi rst level and 10-foot ceilings on other fl oors, and large walk-in closets. Ame-nities will include a large fi tness studio with a spin room, a lap pool with a foun-tain, sun deck, outdoor grills, cabana, a two-story clubhouse, business center, conference room, game room, and a café lounge with Wi-Fi.

THE STANDARD AT CITYLINE

UNITS:836 units total 403 units in Phase I

ARCHITECT:JHP Architecture/Urban Design PC

INTERIOR DESIGN:Moore Design Group

CIVIL:Kimley-Horn and Associates Inc.

STRUCTURAL ENGINEER:Urban Structure

ELECTRICAL ENGINEER: H.E.C Holdings Electrical

LANDSCAPE ARCHITECT:Studio Outside

MEP/FP/SECURITY:PHA Consulting Engineers

GENERAL CONTRACTOR:Zale Properties Inc.

DEVELOPER:Zale/Corson Group

SOURCE: Zale/Corson

CITYLINE PROJECT (NOT YET NAMED)

UNITS:532

DEVELOPER:JLB Partners

ARCHITECT:Good Fulton Farrell

INTERIOR DESIGN:HBC Design Group

CIVIL ENGINEER:Kimley Horn

STRUCTURAL ENGINEER:United Structural Consultants

ELECTRICAL ENGINEER:Jordan and Skala

LANDSCAPE ARCHITECT:Enviro Design

MEP/FP/SECURITY:Jordan and Skala

GENERAL CONTRACTOR:JLB Builders

A ANATOMY OF A DEAL

A M U LT I F A M I LY

H O M E R U NB Y G L E N D A V O S B U R G H

The Standard will feature urban-style residential buildings.

THE MASSIVE DEVELOPMENT ALSO IS SPARKING ADDITIONAL CONSTRUCTION NEARBY.


A D E V E L O P M E N T T H AT ' S

B U I LT T O L A S TB Y K A I L E Y G A M B L E

With CityLine, KDC and its design and construction partners aren’t just developing amaster-planned community for today—they're keeping tomorrow very much in mind. That means a commitment to sustainability. For the offi ce components, LEED Silver certi-fi cation from the U.S. Green Building Council will be pursued, which involves using recy-cled and renewable materials and water- and energy-effi cient strategies.

Density plays a key role, says Joe Haver, project manager at Corgan, which designed State Farm’s campus. Environmental impact will be lessened by building up, rather than out. “You’ve also got the live-work-play, with retail and residential,” Haver says. “So people can do all three of those things without having to get in their cars and leave the site.”

Security and sustainability are the two most important considerations for Raytheon, says Brady Ream, project executive with Adolfson & Peterson, which is constructing the defense contractor’s three-building offi ce campus at CityLine. The company and its sub-contractors are using energy-effi cient materials and heating and cooling systems. “And we’re recycling a ton of concrete,” Ream says.

LEED initiatives at CityLine include:

>> Development density and community connectivity—dense urban development.

>> Alternative transportation—easy access to DART's Bush Turnpike Station.

>> Water-effi cient landscaping—native plant materials with low water consumption.

>> Energy optimization—high-performance building envelope (roofs, ceilings, exterior walls, windows, doors, etc.); effi cient lighting.

>> Recycled content—use of environmentally sensitive products.

>> Regional materials—use of locally sourced materials.

>> Low-emitting materials—use of low-VOC products for sealants, paints, and fl ooring systems.

SOURCE: Corgan

S U S TA I N A B L E S T R AT E G I E S


OPERATING IN A

FOREIGN TRADE ZONE

GETS EASIER

Streamlined approach opens option to m

ore companies

BY TANYA RUTLEDGE // ILLUSTRATION BY CHRIS MULDER

W H AT I S A N F T Z ?A Foreign Trade Zone is a parcel of land deemed to be outside of the United States for purposes of duty assessment. Companies located in an FTZ are able to defer, reduce, and/or eliminate import duties.

T TOOLBOX


For Dallas-Fort Worth, this has led to a boost in FTZ participation and import volume. Approved in January 2010, the expedited procedures were created to help make domestic businesses more competitive internationally. Called Alternative Site Framework, or ASF for short, the program is available to companies that aren’t located inside pre-designated FTZ sites but are within the eight-county Dallas-Fort Worth service area. Those companies must submit an application to the U.S. Foreign Trade Zone Board in Washington, D.C., to designate their building as a “usage-driven site.”

Companies that are located within a pre-designated FTZ site simply need to fi le an activation application with U.S. Customs and Border Protection, a process that also comes with assistance from the FTZ grantee. An FTZ grantee sponsors companies that are working to get FTZ designation. As such, they fi le necessary applications on behalf of the company. They don’t assist monetarily in the process. In fact, a company that applies has to pay the grantee a fee (see checklist for fees) to fi le and review the applications and assist the company through the process. Grantees also help manage and maintain FTZ designations throughout the metro area.

Under the new system, the time to gain approval for an FTZ designation has been shortened from about a year to 45 days, or sometimes as quickly as three weeks.

Created in 1934, FTZs allow businesses to delay, reduce, or eliminate customs duties

on material, parts, components, or fi nished products imported from other countries. This, in turn, lowers the cost of engaging in international trade. Other benefi ts include paying no state or local personal property taxes on imported inventory or domestic inventory held for export.

Since the ASF was put into place, there has been an increase in demand from companies applying to establish zones within the service area. Zones are essentially the same as an FTZ and are established and operated within the confi nes of a company’s warehouse. Offi cials with the Dallas-Fort Worth International Airport FTZ, known offi cially as Foreign Trade Zone No. 39, said that between January 2010 and April 2014, the DFW Airport Board, which is the grantee for No. 39, has set up 11 new zones in the area, with two more in the works. By comparison, in the 31-year period between August 1978 (when DFW became a zone grantee) and January 2010, a total of 16 zones were established.

CONTINUED 3

DALLAS-FORT WORTH FOREIGN TRADE ZONESFor 70 years, the historical concept of FTZs was location-specifi c. Now, with federal government approval, it is possible to pre-designate regions as FTZ eligible so that specifi c businesses wanting the designation can receive approval for their specifi c operations at their business location in 30 days.

For the North Texas region, 8 counties have this pre-designated status.

Any company may locate on this land and simply activate with Customs.

For companies wanting FTZ status but which cannot locate in an existing magnet site.

FTZ ELIGIBLE REGIONS

PRE-DESIGNATED "MAGNET SITES"

COMPANY/SITE-SPECIFIC FTZs

FTZ NO. 39DALLAS/FORT WORTHGrantee/Operator: Dallas/Fort Worth International Airport Board

FTZ NO. 168 DALLAS/FORT WORTHGrantee: Metroplex International Trade Development Corp.Operator: Foreign Trade Zone Operating Co. of Texas

FTZ NO. 196 FORT WORTHGrantee: Alliance Corridor Inc. c/o Hillwood Development Corp.

FTZ NO. 113 ELLIS COUNTYGrantee: Ellis County Trade Zone Corp.

DFW-AREA FOREIGN TRADE ZONE SPONSORS

Sources: www.ita-web.ita.doc.gov, Dallas-Fort Worth Real Estate Review research

Among the many advantages Dallas-Fort Worth has to o� er is access to Foreign Trade

Zones, which can save companies millions of dollars in taxes. A new fast-track approach opens the program up to more companies—and reduces the cost.

GRAYSON

DENTON COLLIN

TARRANT DALLAS

KAUFMAN

ELLIS

HUNT

ALLIANCE AIRPORT

DALLAS-FORT WORTH

INTERNATIONAL


Although DFW offi cials credit the streamlined movement for a large part of that uptick, they said other factors, such as an economic upturn and the growth of industrial development on airport property, also played a role.

DFW offi cials helped six businesses set up company-specifi c FTZs, or subzones, outside of the pre-designated FTZ areas, between 1978 and 2009, before the ASF was in eff ect. Since 2010, four companies have established usage- driven sites, and two additional companies are currently working through the FTZ appli-cation process.

Bill Methenitis, global director of customs and international trade at EY LLP who specializes in FTZs and works closely with DFW and FTZ

applicants, said the streamlined procedures have encouraged more companies to consider operating in an FTZ. “We’ve seen more activity from medium-sized companies that previously had faced too many signifi cant barriers in terms of up-front costs and the length of time of the approval process,” Methenitis says. “The return on investment for these smaller companies has been signifi cantly accelerated.”

Christina Wood, manager of lease and property management at DFW Airport, says companies should fi rst undertake an internal due-diligence process to make sure that the savings associated with operating in an FTZ justify the set-up and ongoing maintenance costs associated with the benefi t. Although the status can provide a signifi cant cost benefi t for certain companies, it’s not for everyone. “Across the board, it really depends on their business model and whether they can reap enough of the benefi ts to off set the costs that come with setting it up,” she says.

Methenitis points out that those costs have been reduced from tens of thousands of dollars

to between $5,000 and $10,000. In addition to applying to get the geography of the FTZ approved, companies can expect to incur costs to set up internal controls, systems, and reporting procedures that are necessary to stay in compliance.

In the case of Coppell-based Matrix Network Inc., a manufacturer and distributor of closed circuit television equipment to the video security and surveillance industries, that initial outlay of time and money made sense, considering that the company imports about 95 percent of its CCTV products from Korea, then packages and distributes them throughout the United States from its FTZ. But about four months a� er receiving approval to operate as a “user-driven site” within a designated FTZ service area, Matrix Network got an unexpected boost by the passage of the Korean Foreign Trade Act, which provided much of the same duties benefi ts to the company.

Still, Andi Hemann, Matrix Network’s vice president of operations, says the company continues to benefi t from its designation in the form of reduced property taxes and merchandising processing fees. “We still save money in other ways,” she says. “It has been a real benefi t to us.”

Because both the cost and the time frame have been reduced, Methenitis and Wood say the potential user base for FTZs has been considerably expanded. Companies that might only benefi t from one smaller aspect of the FTZ may still fi nd it a money-saving proposition. “The focus of the program has been broadened so that a wider set of

companies are going to be interested,” Methenitis says. “We’ve seen more activity in the past two years than we have in a long time.”

Steve Boecking, vice president of Hillwood Development Corp., which, through Alliance Corridor Inc., is the grantee of FTZ No. 196, says the ASF has essentially eliminated a barrier for entry

SHIPMENT VALUEThe 2012 U.S. FTZ shipment

value was $732 billion, up 14 percent over the

prior year (2013 numbers are not yet available)

THE TOTALA total of $3.4 billion in

merchandise was received into the AllianceTexas FTZ in 2013, and more than $2.5 billion in merchandise was received into DFW’s FTZ.

VALUEThe AllianceTexas FTZ

is the No. 1 general purpose FTZ in the U.S. in terms of

value of foreign-status merchandise processed

through the FTZ.

FTZFACTS

$2.5

bill

ion

$3.4

bill

ion

Alliance DFW

"The focus of the program has been broadened, so a wider set of companies are going to be interested. We've seen more activity in the past two years than we've seen in a long time."

—Bill Methenitis, EY

$732B

NO. 1

14%

Bill Methenitis, global director of customs and international trade at EY LLP, says the streamlined procedures have encouraged more midsize companies to consider operating in an FTZ.

CONTINUED 3


STEP 2 Provide support letters from the city, county, and school district within which the site is located. It is the responsibility of the company, or the company’s hired consultant, to obtain these letters.

STEP 3Submit a one-time payment of $6,000 (if DFW) or $5,000 (if Alliance).

STEP 5Usage-driven site designation usually takes about 60 days from the time DFW receives the material package from the company.

STEP 1File a written request to either the Dallas/Fort Worth International Airport Board (DFW) or Alliance Corridor Inc., which are the entities that submit applications to the Foreign Trade Zones Board on behalf of North Texas companies seeking FTZ status. The request must include the full name of the company, a description of business that will be conducted at the site, the address of the site, legal description of the site and a map showing the site boundaries.

STEP 4Provide a usage-driven site operating agreement.

STEP 6Once the materials are received and reviewed, DFW or Alliance will request approval from the U.S. Bureau of Customs and Border Protection. Activation must then be requested by the company after the FTZ board approves designation of the site.

A P P L I C AT I O N P R O C E S S

With the approval of new streamlined procedures in January 2010, the time it takes to gain approval for an designation as a “user-

driven site” (for companies not operating within the boundaries of an FTZ) has been shortened from several months—and sometimes

up to a year—to about 45 days, or sometimes as quickly as three weeks. Under the new program, the six-county Dallas-Fort Worth

area became preapproved by the federal government as eligible FTZ property under the supervision of two FTZ grantees, the Dallas/

Fort Worth International Airport Board and Alliance Corridor Inc. That means that with the agreement of local o� cials, the federal

government will provide any eligible business with FTZ designation on an expedited and simplifi ed basis. A company’s address

determines under which Grantee Service Area they will apply and operate their FTZ. DFW Airport covers the entire region except for

the Alliance Corridor along I-35 West in North Fort Worth.

FAST TRACK APPROVAL CHECKLISTApplying for a Foreign Trade Zone designation doesn’t have to be complicated—or time-consuming—if companies follow a few simple guidelines for undertaking the process.


T TOOLBOX

for companies that are not sitting in a designated FTZ area but are within a service area, which covers most of the Dallas-Fort Worth area.

In the past, he says, it would typically cost a company thousands of dollars and could take up to 18

months for approval if the business was not already sitting in an FTZ, and the long approval process was extremely onerous.

Boecking says the service-ar-ea rules helped the region re-tain a Fortune 500 company. The company was located outside Alliance’s FTZ zone but within the service area. The business was expanding, and was going to consider mov-ing out of state if it didn’t win approval as a user-driven site, Boecking says. But a� er receiv-ing a quick approval under ASF, the company opted to stay and expand in Fort Worth.

In another case, a medical company that had moved into the area but was not in a desig-nated FTZ also quickly gained approval through ASF.

“Neither of these two com-panies would still be players in our area if it weren’t for ASF,” Boecking says. “This re-ally opens up the world to us.”

Methenitis says the DFW area has been a model for the rest of the country in terms of taking advantage of its status as an eligible FTZ area and of the increased ease of gaining approval that was brought on by the ASF rules. He adds that the executive director of the FTZ board was

very complimentary of the region’s utilization of the program during a trip to North Texas about a year ago.

“There was a lot of positive feedback about how the DFW area embraced the new program and used it to provide maximum benefi ts,” Methenitis says. “It’s something that is not paralleled anywhere else in the country.”

JUST A MONTH AFTER MATRIX NETWORK INC. RECEIVED approval to operate as a Foreign Trade Zone site, Vice President of Operations Andi Hemann attended a forum about how to expand international trade through the use of FTZs.

Although informative, the forum came a bit too late for Hemann, who led her company’s process of applying for FTZ status. Matrix Network—an original equipment manufacturer and distributor of closed circuit television equipment to the video security and surveillance industries—received its FTZ designation mostly by trial and error, she said. The process involved asking a lot of questions and sometimes talking to the wrong people.

Matrix Network applied for designation as a “usage-driven site” several months after the expedited Alternative Site Framework was passed; still, the entire process took more than a year. That was due, in part, to timing. The Coppell-based company submitted its application in November 2010, during a time of government cutbacks when things were moving more slowly on state and national levels. These days, the approval portion of process typically takes only about a month.

“I essentially had to give myself a crash course in learning how to navigate this process,” Hemann says. “It’s not a hard process, but if you don’t know it, there can be a lot of stuff that you are unaware of.”

Hemann says hiring an FTZ consultant along the way helped Matrix Network offi cials get a better grasp on FTZs and made things go more smoothly. But everything became more clear after she attended the fi rst-ever North Texas Foreign Trade Zone Forum in January 2013, a month after Matrix Network had received its approval.

“There was so much information there that I had to learn the long way, the hard way,” Hermann says. “I learned to call a lot of people and ask a lot of questions, but the information is so much more readily available now.”

Matrix Network manufactures about 95 percent of its CCTV products in Korea, then brings them into the U.S. and packages and distributes them from here. Some manufacturing is also performed in Taiwan and Hong Kong. FTZs allow businesses to delay, reduce or eliminate customs duties on material, parts, components, or fi nished products imported from other countries, which in turn lowers the cost of engaging in international trade. Other benefi ts include paying no state or local personal property taxes on imported inventory or domestic inventory held for export, as well as other logistical and process savings.

Hemann said using tools such as hiring consultants, attending forums, and even engaging experts within the grantee organizations can help boil down what may seem like an overwhelming process to a few simplifi ed steps. Still, in the case of Matrix Network, the key to making the process seamless came down to asking the right questions.

“You have to be persistent,” Hemann says.

‘YOU HAVE TO BE PERSISTENT’Tapping experts and asking questions helps move Foreign Trade Zone process along.

BY TANYA RUTLED GE

C A S E S T U D Y

7 FTZs are administered by the Foreign-Trade Zones Board, under the U.S. Department of Commerce.

7 The FTZ Board gives privilege to FTZ grantees to establish, operate, and maintain FTZs; approves applications for companies setting up FTZs; and authorizes specifi c manufacturing activity allowed in FTZs.

7 FTZ activity is supervised by U.S. Customs and Border Protection.

SOURCE:Dallas-Fort Worth International Airport

FTZFACTS


Looking for the best city in which to headquarter your business?Consider this the start to your search.When deciding to relocate your business, there are infi nite factors to take into consideration. You already know that the DFW area is a great place to do business, with its attractive quality of life, strong regional and state economy, low cost of living, young and skilled labor force, and absence of corporate and personal income taxes. Did you also know that DFW ranks among the top three U.S. metropolitan areas for business expansions, relocations, and employment growth? So really, the question is, “Which DFW city is best for my company?” Let this compilation of some of the best and most rapidly-growing cities in DFW be your guide to helping you to make that all-important decision.

C I T Y P R O F I L E S

S P E C I A L A D V E R T I S I N G S E C T I O N


WAXAHACHIE, TEXAS – CROSSROADS OF TEXAS

Waxahachie is located at The Crossroads of Texas. Conveniently located at the intersection of Interstate 35E and U. S. Highway 287, this prime location is less than 35 minutes to Downtown Dallas to the north, less than 60 minutes to Waco and the Texas Hill Country to the south, 18 miles to I-45 and the Piney Woods to the East, and 45 minutes to Downtown Fort Worth to the west.

Over 80,000 vehicles travel through this intersection every day, making Waxahachie an ideal location for a variety of business and industry. Medical, manufactur-ing, technology, retail and many other businesses con-tinue to choose Waxahachie as their home.

HISTORYSince it was founded in 1850, Waxahachie has benefi ted from its prime location. In the late nineteenth century, Waxahachie grew rapidly largely due to the area’s prosperous cotton industry. This industry was advanced by local rail transportation and the highways that traveled

right through the heart of Waxahachie’s central business district. Soon, one of the country’s fi rst textile mills was built and the rest is history.

Fast forward over a hundred years, and Waxahachie continues to experience a healthy and graceful rate of growth. In fact, the same places where cotton barons traveled to market and the historic Shawnee cattle trail passed through, is where today’s companies are enjoying success in tourism, retail, medical, service, and manufacturing industries.

The success of the early cotton barons has le� a legacy that is still enjoyed today in the form of beautiful Victorian homes and grand historic buildings that frame the most photographed courthouse in the state of Texas. For more than 150 years, historic downtown Waxahachie has been a destination for locals and visitors alike. It is still the place for delicious restaurants, boutiques, antiques, and much more. Downtown Waxahachie is also home to many festivals and special events that are attended by an estimated half million people

POPULATION SIZEIN CITY LIMITS

31,700POPULATION IN

PRIMARY TRADE AREA

74,000WORK FORCE WITHIN

A 30 MINUTE DRIVE TIME

419,000AVERAGE HOUSEHOLD INCOME:

$80,073

DOUG BARNES469-309-4121

[email protected] S. ROGERS ST.

WAXAHACHIE, TEXAS 75165

CONTACT

WAXAHACHIE


Nowhere in Texas can you be so close to so much for so little.

D A L L A S

WAXAHACHIE


throughout the year. And best of all, while you’re in town, you’ll enjoy the kind of down-home hospitality that will have you looking forward to your next trip back.

A REGIONAL CENTER FOR COMMERCEWaxahachie is the county seat of Ellis County which also makes the community a regional center for commerce. Retailers throughout Waxahachie have enjoyed success for decades and continue to prosper today. Many new retail developments such as Waxahachie Crossing and Waxahachie Town Centre, have been added to the community since 2000.

Several professional service companies also enjoy the amenities Waxahachie has to off er. Some, such as Southwest Data Solutions, have offi ces in the historic downtown area while some are located in one of the many offi ce centers located along the US Hwy 287 Bypass. Waxahachie’s numerous manufacturers and close proximity to the DFW Metroplex make building a customer base a breeze.

Waxahachie’s industrial companies are from a broad range of sectors. Some of the largest companies include a Walgreens distribution center, Dart Container Corp., Owens-Corning Fiberglass, C. R. Laurence, and Rock-Tenn. These companies have made Waxahachie home for the obvious reasons: excellent transportation corridors, quality workforce and training, cost-eff ective land development, a business-friendly environment, and a wonderful quality of life.

OPTIONS FOR RESIDENTIAL, EDUCATION AND MEDICALThe community’s quality of life is bar-none with a variety of residential options, an excellent education system, convenient shopping and dining, progressive medical care, and easy access to all the metropoli-tan amenities that the DFW Metroplex has to off er.

Waxahachie’s residents have a number of options when it comes to choosing a home. From historical Victorian homes and executive estates on the lake to condos and apartments convenient to higher education, shopping and the interstate, Waxahachie has the perfect place for you.

Waxahachie’s exceptional education opportunities consist of an award winning

4A school system that includes a STEM academy, Navarro College and Southwestern Assemblies of God University. A number of private and charter schools are also available.

Medical amenities in Waxahachie from the Baylor Scott & White Medical System are about to be even better with the construction of a new 120 bed regional hospital and medical complex. The $175 million hospital is slated for completion in November 2014 and will only improve the quality of healthcare that residents enjoy.

A PROVEN TRACK RECORD FOR SUCCESSConveniently located at the intersection of Interstate 35 and Highway 287, Waxahachie is the perfect home for a wide variety of businesses. Technology, medical, retail, and many other companies continue to choose to make Waxahachie home. The community has a proven track record for success, and most Waxahachie fi rms have continued to thrive, even during times of uncertainty. You are invited to experience that same success for your business by making Waxahachie your company’s home.


OVER 80,000 VEHICLES TRAVEL THROUGH THE INTERSECTION OF I-35E AND US HWY 287, MAKING WAXAHACHIE AN IDEAL LOCATION FOR A VARIETY OF BUSINESS AND INDUSTRY.


DEMOGRAPHIC SNAPSHOT 2014› Population – 22,411 › Households – 7,238› Average Household Income – $103,341 › Median Age – 36› Bachelor’s Degree or Higher – 32%› Median Home Value – $195,534 $1 BILLION IN RETAIL POTENTIAL 2014› Retail Trade Area – 12-minute drive time› Total Population – 162,981› Total Households – 52,024› Average Household Income – $99,646› Annual Retail Leakage – $84,881,904 Source: Nielsen SiteReports 2014

BUSINESS RECRUITMENT INCENTIVES› Start-up Cost Assistance› Expedited Permitting› Tax Abatement› Tax Increment Financing (TIF)› Infrastructure Incentives› Fee Waivers

THE GOOD LIFE› Woodbridge Golf Community› Woodbridge Village› Woodbridge Commons› Hawaiian Falls Adventure Park› Firewheel Town Center› Lake Lavon› Lake Ray Hubbard› Lake Lewisville

COMMUNITY PROFILE› Location – The City of Sachse is located 20 miles northeast of downtown Dallas› Population – 22,411› Educational Attainment – 90% High School Graduates; 32% Bachelors or Greater› Education – Garland and Wylie ISD – Richland College Garland Campus – Collin College Plano Campus – Texas A&M-Commerce at Rockwall› Parks – Seven› Area Lakes – Three› Public Golf Course – One› Eight Miles Multi-use Trail › Voted 5th Safest City in Texas – Safewise 2013

Leslyn Blake, CEOSachse Economic Development Corporation3815-B Sachse Road, Sachse TX [email protected] sachseedc.com

WELCOME TO SACHSEThe City of Sachse and the Sachse Economic Development Corporation (SEDC) are committed to the promotion and retention of high-quality development and to maintain an exceptional quality of life for its citizens. City leadership facilitates a local environment that is responsive and beneficial to business. They are prepared to advance public-private partnerships intended to help Sachse grow and prosper in a partnership that generates new job opportunities, increased capital investment and overall community improvement.

AS SACHSE GROWS, SO DO NEW INCENTIVES TO EXPAND RESTAURANT BASEThe City of Sachse offers three categories of incentives designed to recruit regional and national sit-down restaurants to the community. The incentive packages offer varying percentages of deductions based on assessed values, sales taxes, financial help and permit fee waivers to help minimize start-up costs for new restaurants. These incentives are the investment that Sachse is willing to make in order to ensure that it has the businesses, the increased tax base and jobs.

SACHSE IS CONNECTEDPresident George Bush Turnpike/190 runs straight through the southern section of Sachse connecting north to US 75 and south to I-30. Sachse offers prime developable land with 190 frontage for retail and restaurants. With the expansion of Highway 78 to six lanes, the opportunities for a major retail corridor are available for development. Woodbridge Parkway at Highway 78 opens yet another business district of the city that is anchored by a 152,000 sf Walmart Supercenter. A vibrant city economy, commercial and residential development, access to the DART Downtown Rowlett and Garland Stations and a pipeline of projects now make Sachse an excellent choice for those wanting to live “the good life”.


RICHARDSON

635

DFWINTERNATIONAL

AIRPORT

DALLAS LOVE FIELD

35

30

75

190

161

SACHSE

DALLAS

114

30 80

183

12

LAKE RAY

HUBBARD

PLANO

IRVING

ADDISON GARLAND

ROWLETT

MESQUITE

78

ADDISONAIRPORT

ROCKWALL

FIREWHEEL TOWN

CENTER

MCKINNEY NATIONALAIRPORT

N

}{› Average Household Income – $103,341

› Pro-business Environment

› Customized Incentive Packages

› Well-connected Location with Proximity to Major Markets

› Ample Supply of Land; Competitive Building Costs and Lease Rates

HAVE YOU LOOKED AT SACHSE LATELY?

14909_sache edc ad_PR.indd 1 6/26/14 1:52 PM


TRAVEL TIMETO DFW AIRPORT

25 MINUTES

AMERICA ’S TOP 25BEST C I T I ES TO

RELOCATE- FORBES

TOP 10BEST SUBURBS

- D MAGAZINE

DAN BOWMANEXECUTIVE DIRECTOR/CEO

[email protected]

CONTACT

ALLEN

ALLEN ECONOMIC DEVELOPMENT

Positioned at the interchange of US 75 and SH 121, Allen’s connectivity makes the city ideally suited for commercial development. Access to global markets within a 25-minute drive via DFW International Airport and Dallas Love Field has led to the development of the city’s newest Class A Offi ce Park, AllenPlace Offi ce Complex. KONE Elevators is the fi rst tenant in the park, which will be under construction in Q3/2014 and available for 2015 occupancy.

With over 2 million square feet of new retail space, Allen is home to Watters Creek, Village at Allen and Cabela’s. PFSweb, KONE, Frontier Communications and MonkeySports recently located corporate re-gional offi ces in Allen, leasing over 200,000 square feet and creating over 1,200 jobs.

Allen’s corporate and technology parks are designed with dual-feed electric power from separate substations, redundant fiber optics and abundant water resources. Designed to meet the city’s high aesthetic standards, these business parks are built for high tech, telecom, medical and defense-related users, data centers, and the new corporate workplace. Allen draws from a labor pool of more than 3 million workers in a 30-mile radius. Close proximity to some of the nation’s fi nest universities ensures a continuous stream of talent.

The Allen Independent School District (AISD)

is one of the premier school districts in the Dallas area. Allen High School students gain real world experience through coursework and internships at the new $21 million Career and Technology Center. Allen residential communities off er a variety of housing options, including residential subdivisions, townhomes, and multi-family complexes. Allen recently moved to the forefront of suburban development as the fi rst neighborhood in Texas to participate in the Leadership in Energy and Effi cient Design – Neighborhood Program (LEED-ND).

Allen boasts over 1,000 acres of parks and recreational areas, including the largest in-line skate park in Texas and an enclosed competition swimming pool and water park. The city is also home to two championship public golf courses (Twin Creeks Golf Club and The Courses at Watters Creek), a Top Golf entertainment complex, the Hydrous Wakeboard Park and the beautiful Allen Event Center. It’s no wonder that Allen was ranked among the Top 10 in the nation by Family Circle as “Best Places to Live.”


Allen, Texas has become a premier location for businesses and families alike.

“TOP 20 BEST PLACESTO LIVE IN AMERICA.”

– MONEY MAGAZINE

D A L L A S

ALLEN


TRAVEL TIME TO DOWNTOWN DALLAS

20 MINUTES

US 67/RA IL -SERVEDBUSINESS PARK

WORK FORCE WITHINA 30 MINUTE DRIVE TIME

OVER 1 MILL ION

OVER 3 MILL ION SFOF RETAIL, AND

CLASS A OFFICE SPACE

ALLISON J. H. THOMPSONCEcD, EDFP - DIRECTOR

972-291-5132 EXT.3ALLISON.THOMPSON@

CEDARHILLTX.COM

CONTACT

CEDAR HILL

Opportunities grow naturally in Cedar Hill. Our cityis full of vibrant businesses, natural beauty and a family-friendly quality of life. Located in the DFW Metroplex less than 20 minutes from downtown Dallas and 40 minutes from downtown Fort Worth, Cedar Hill has multiple thoroughfares to the rest of the DFW Metroplex. A 30-minute drive will take you to DFW International Airport or Dallas Love Field. For executive air travel, Dallas Executive Airport is only 15 minutes away. BNSF rail serves the Cedar Hill Business Park as well as other available sites in the City.

With regional advantages and a ready workforce, Cedar Hill off ers outstanding amenities for business growth and relocation. Strayer University, Cedar Valley College, a TEA-recognized school district, the BEST Southwest SBDC, a responsive city government and an active business community all make locating and growing a business in Cedar Hill an easy decision.

The Hill Country of the Metroplex, Cedar Hill has commitment and passion for the environment. Travel along mature tree-lined roadways and winding pathways to view impressive residential and retail developments. Add to this a commitment

to 20% open space and 67 city parks. Cedar Hill State Park is nearly 2,000 acres and located on 75,000 acre Joe Pool Lake. The rolling hills and scenic beauty of the area combined with over 100 miles of shoreline and water-based recreation activities make the park a major attraction for hiking, biking, camping, boating, and one of the most visited state parks in Texas. The nationally recognized Dogwood

Canyon Audubon Center at Cedar Hill is situated on 205 acres of Dogwood Canyon, which contains the widest variety of rare species in North Texas. Plants and animals from east, west and central Texas converge there.

For more information about Cedar Hill, visit www.cedarhilledc.com or call the Cedar Hill Economic Development team at 972.291.5132.

WHERE OPPORTUNITIESGROW NATURALLY


To facilitate and energize development, Cedar Hill o� ers progressive economic development incentives.

“THE HILL COUNTRY OF THE METROPLEX, CEDAR HILL HAS A COMMITMENT AND PASSION FOR THE ENVIRONMENT.”

D A L L A S

CEDAR HILL


CITY OF DALLAS OFFICE OF ECONOMIC DEVELOPMENTDallas is all ways connected — from business to geography, talent to culture, technology to infrastructure. With a rich history of success, entrepreneurship, art, and family, Dallas is a perfect refl ection of an increasingly connected world.

To The World. Centrally located in the continental U.S., Dallas’ strategic location achieves worldwide market access through international logistics and transportation. Dallas’ two commercial airports, DFW International Airport (DFW) and Dallas Love Field (DAL), combine for 7,067 weekly non-stop fl ights to 187 global destinations. Dallas is less than 3.5 hours from North America’s business centers by air and 98% of the U.S. is within 48 hours by ground. Dallas’ cargo airports, intermodal rail yards and fi ve major highways provide easy product delivery to the east and west coasts of the U.S. as well as to Mexico and Canada.

To Talent. Dallas is the 9th largest city in the U.S. with a population of over 1.2 million. Dallas is the cultural and economic core of the internationally important Dallas/Fort Worth (DFW) Metropolitan area with access to over 6.8 million people. Educational opportunities abound in the Dallas area; more than 25 colleges and universities provide a trained and ample workforce.

To Business. Dallas has over 65,000 businesses and 269 corporate headquarters that each employs more than 1,000 globally, and those numbers continue to grow. Leading Dallas headquarters include AT&T,

MoneyGram, Southwest Airlines, Comerica, Tenet Healthcare, Brinker International, Texas Instruments, Neiman Marcus and Dean Foods. Other industry clusters are high-tech manufacturing, food processing, construction, healthcare, entertainment, energy, and transportation, providing a diversifi ed Dallas economy.

To Aff ordability. The ACCRA Cost of Living index consistently reports that it is less expensive to live in Dallas than in other large U.S. Metro areas. In 2010, Forbes magazine ranked Dallas the 14th most aff ordable city in America. Dallas off ers a combination of low taxes, reasonable housing prices and low costs of living and doing business providing the environment and support your company needs to succeed and grow.

To Lifestyle. From world-class sporting events to a bustling nightlife and music scene, some of the best food and shopping in the U.S. to exquisite museums, parks, architecture, and art — Dallas off ers a truly diverse mix of culture and lifestyle. The Dallas Arts District is the largest urban cultural district in the nation. The Dallas parks and recreation system covers 21,000 acres and includes lakes; jogging and bike trails; recreation centers; sports complexes; playgrounds and picnic areas; pools; golf courses; driving ranges, and the Dallas Zoo.

Dallas is a pro-business city that has many advantages to offer any company. For more information on Dallas, please visit www.dallas-ecodev.org.


POPULATION SIZE

1,241 ,162

WORKFORCE WITH BACHELOR DEGREE

OR HIGHER

29.0%

MEDIAN AGE

32.4

AVERAGE HOUSEHOLD INCOME:

$41,354

J. HAMMOND PEROT214.670.1685

[email protected]

1500 MARILLA STREET, 5CSDALLAS, TEXAS 75201

CONTACT

DALLAS

DALLAS


DENTON ECONOMICDEVELOPMENT PARTNERSHIP

Denton, Texas has received a lot of attention from manufacturers recently, and it’s easy to see why. According to Aimee Bissett, Director of Economic Development, location is a major factor, “We are just north of Dallas and Fort Worth at the convergence of I-35 East and West. Manufacturers can bring in supplies and ship out products by truck, rail, or air. It’s an ideal situation for anyone with critical logistics needs.”

Of course successful manufacturers have needs beyond logistics. That’s why Denton has focused on training the next generation of manufacturing professionals. Denton’s state-of-the-art Advanced Technology Complex gives high school students hands-on experience with the latest equipment through its Applied Technology and Aerospace Manufacturing programs.

Denton is home to The University of North Texas (UNT) and Texas Woman’s University (TWU). These universities bring over 50,000 students to Denton, ensuring that employers can draw from a large, well educated workforce.

UNT’s Research Park is training tomorrow’s leaders in advanced engineering and applied materials science. This facility operates as a world

class research and development lab, off ering dedicated space, technology, and expertise to local industries.

Westpark is Denton’s 800-acre industrial park strategically located adjacent to Interstate 35 and Highway 380. Westpark off ers easy highway access and is located adjacent to Denton Enterprise Airport. This municipally-owned airport has a 7,000 foot runway with air traffi c control and two FBOs. Denton also has the strategic advantage of a municipally-owned electric utility, giving Denton the fl exibility to work with industrial customers to create custom solutions quickly. Denton’s electric utility off ers more wind power than any other city in the nation. It makes locating in Denton an easy way to help manufacturers reach their fi nancial and sustainability goals.

Visit www.DentonEDP.com to fi nd out more about Denton.


HIGH TECH HOT SPOT #6 IN US

MOST L IVEABLEC I TY IN TEXAS

MOST WIND ENERGYIN N AT ION

AIMEE BISSETTECONOMIC DEVELOPMENT

DIRECTOR940.349.7774

[email protected]

ADAM GAWARECKICHAMBER ECONOMIC

DEVELOPMENT VICE PRESIDENT940.382.7151

[email protected]

CONTACT

DENTONDenton, Texas is an economically diverse business community with a development friendly atmosphere, unique culture, and engaged citizens.

“... IT’S AN IDEAL SITUATION FOR ANYONE WITH CRITICAL LOGISTICS NEEDS.”


DENTON


POPULATION SIZE

42,409

DISTANCE TOALLIANCE AIRPORT

±11 MILES

DISTANCE TODFW AIRPORT

±14 MILES

AVERAGE HOUSEHOLD INCOME:

$66,112(based on a 12 minute drive time)

TRAVEL TIME TODOWNTOWN

FORT WORTH

10 MINUTES

HALTOM CITY

NEW ROAD CONSTRUCTION FUELING DEVELOPMENT

Some cities may view road construction as a nuisance, but for Haltom City it’s an opportunity. The NE Loop 820 widening project has opened up more than 300 acres of land for development on both sides of the freeway in Haltom City. The new design gives the town better accessibility than ever before. To further enhance development opportunities, the city is adding north and south backage roads to provide ample access for future development. Although the leading development expected will be commercial, a residential developer will be building new homes in the area as well. Tax Increment Finance (TIF’s) Zones will add to incentives for sustainable economic development along the corridor.

In addition to the emerging, new commercial growth, revitalization is occurring in older commercial sectors. East Belknap, the road that originally helped spur business growth in Haltom City, is experiencing a new surge of businesses. A variety of unique Asian restaurants and businesses make East Belknap their home and the area will continue to grow into a destination for diners and shoppers. Utilizing a grant from TxDOT, the City is redesigning the intersection of East Belknap and Highway 377. This will create four distinct corners for new development near the

historic Haltom Theater. Another distinctive commercial corridor in Haltom

City is Highway 121 Airport Freeway. This stretch of highway is home to more than 20 fl ooring and building supply businesses. The clustering of these stores makes it convenient when shopping for materials for new construction and remodeling projects.

Passenger rail is in Haltom City’s long-term plans. The T has been working to develop the TexRail line from downtown Fort Worth to Grapevine, and extending to the north entrance of Dallas-Fort Worth Airport. Haltom City is lobbying for a rail stop near Denton Highway so that it can promote transit-oriented development on the adjacent 42 acres near the rail line. The T is targeting the new rail line to be complete in 2017.

Similar to the TIF’s along the NE Loop 820 corridor, Haltom City off ers many types of incentives to encourage business development throughout the city. Two cash grants are off ered to help assist businesses and include a $50,000 economic development assistance grant and a $10,000 property enhancement grant. Tax abatements, foreign trade zones, enterprise zones, and triple freeport are other incentives that are available.


Be on the lookout…Big things are coming our way! Haltom City presents opportunities for commercial growth with easy access.

F O R TW O R T H

HALTOM CITY


November 6Economic Outlook 7:30-10 AMSMU

November 13 Dallas Regional Chamber Blueprint Awards11:30 AM-1:30 PM, Hyatt Regency Hotel

December 2 State of the City12-1:30 PMTBD

December 4 Bank of Texas Speaker SeriesPresented by The Dallas Morning NewsFeaturing Capital Markets Panel, moderated by JLL7:30 AM, Belo Mansion

For more information about The Real Estate Council’s programs and events, please visit www.recouncil.com or call 214.692.3600. For more information about Dallas Regional Chamber events see www.dallaschamber.org/events/

Leadership Dallas, the fl agship program of the Dallas Regional Chamber for leadership development, is aimed at increasing the leadership pool for community activities in the Dallas area. Visit www.dallaschamber.org for more information.

August 1The Real Estate Council Foundation Applications due for 2015 Community Initiatives

August 19Real Estate 10111:15 AMCenter for Nonprofi t Management

August 21Associate Leadership Council Applications due for 2014-2015 class

August 26Insiders Roundtable Water Conservation Tool Kit 12 PMThe Real Estate Council Congressional Forum 12-1:30 PMLocation: TBD

AUGUST

SEPTEMBER

OCTOBER

DECEMBER

NOVEMBER

September 16State of the District 12-1:30 PMBelo Mansion

September 23Real Estate 10111:15 AM Center for Nonprofi t Management

September 29Women in Philanthropy DinnerFeaturing Lyda Hill(By invitation only.)

October 2Bank of Texas Speaker Series Presented by The Dallas Morning NewsFeaturing Gary Kelly, CEO Southwest Airlines7:30 AMBelo Mansion

October 3Women’s Business Conference8 AM-2 PMHilton Anatole

October 9Young Guns View From the Top5:30 PM

October 10YP Summit8 AM-4 PM, Winspear Opera House

October 16PAC reception with Harvey Kronberg5:30 PM

October 23Giving Gala6:30 PM, Hilton Anatole Hotel

= CHAMBER EVENT

LEADINGTHE WAYThe Dallas Regional Chamber’s 39th Leadership Dallas class partnered with Uplift Education to design and construct four innovative MakerSpace classrooms in high schools throughout the city of Dallas.

“From the moment our class selected this proj-ect, I knew it would be special,” says Chad Pro-chaska of Turner Construction and a member of the LD Class of 2014. “We researched and toured MakerSpaces and teamed with the Perot Muse-um of Nature and Science and Upli� educators to transform classrooms into an oasis of learning.”

MakerSpace classrooms are a popular new concept for teaching students science, technol-ogy, engineering, math, and art through hands-on, stimulating, and interactive projects. In their workshops, students use engineering and design tools to make things and reuse everyday materials in exciting ways. From woodworking and plaster casting to electronics and 3D print-ing, the MakerSpace labs encourage experi-mentation and open-ended exploration.

“The teamwork and dedication of our class was instrumental in the success of the project,” Prochaska says. “It’s something we can all look at and be inspired to create future opportuni-ties for students and scholars.”

E L EVENTS CALENDAR LEADERSHIP

The MakerBot Replicator 2


The Dallas Regional Chamber recognizes the following companies and organizations for their membership investment at one of our top levels. Bold-faced companies are represented on the DRC Board of Directors. For more information about the bene� ts of membership at these levels, call 214.746.6600 .

STRATEGYBKDChaseTexas Instruments

CATALYST AT&TBaylor Scott & White HealthCapital One BankChickasaw NationComerica BankDallas/Fort Worth Int’l AirportHunt Consolidated, Inc.JC Penney Company, Inc.MV TransportationONCORRaytheon CompanyTom Thumb Food & PharmacyWells Fargo

ADVOCATE7-Eleven, Inc.Akin Gump Strauss Hauer & Feld Atmos Energy CorporationAxxess Baker Botts L.L.P.BB&TBBVA CompassCBRE Group, Inc.Children’s Medical CenterCitiCopartCorrigan Investments, Inc.Dallas Morning NewsDal-Tile CorporationDeloitte LLPEnergy Future HoldingsExxon Mobil Corporation EYFedEx Offi ceFidelity InvestmentsFluor Corporation Frito-Lay North AmericaGE CapitalGlazer’sGolden Living

Haynes and Boone, LLP Highland Capital Management LPHKSIBM CorporationJones DayKPMG LLPKroger Food Stores Littler Mendelson, P.C.Locke Lord LLPLockheed MartinLuminantMedical City Dallas Hospital/Medical City Children’s HospitalMethodist Health SystemMicrosoft CorporationNEC Corporation of AmericaOmni Dallas HotelPwCReliant EnergyRent-A-CenterSheraton – DallasSunTrust Robinson HumphreySWS Group, Inc.TDIndustriesTenet Healthcare Corp.Texas Central High-Speed Railway, LLCTexas Health ResourcesTexas Scottish Rite Hospital for ChildrenTM AdvertisingTXU EnergyUT Southwestern Medical CenterViewPoint BankWinstead PC

BOARD OF ADVISORSAbbott LabsAccentureAetnaAIG Airbus Helicopters, Inc.Alcatel-LucentAndrews Distributing Company Andrews Kurth LLP

Army & Air Force Exchange Service Arthur J Gallagher & Co.Austin IndustriesBaker & McKenzie, LLPBank of AmericaBank of Texas, N.A.BDO USA, LLPThe Beck GroupBlue Cross and Blue Shield of TexasBoy Scouts of America Bracewell & Giuliani LLPBrinker International, Inc.Brinkmann CorporationBuryC.C. YoungCassidy TurleyCCS MedicalCHRISTUS HealthCIGNA HealthcareCity Credit UnionCivitas Capital GroupClubCorp Inc. Coca-Cola RefreshmentsColgate Oral Pharmaceuticals Colliers InternationalComposite Technology Inc.CompuCom Systems, Inc.ConnextionsConsolidated CommunicationsCook Children’s Healthcare Corgan Associates, Inc.CP&Y, Inc.Cresa Dallas LLCCushman & Wakefi eld of Texas, Inc.Dallas County Community College DistrictDallas Cowboys Football ClubDallas HD FilmsDallas Marriott City Center Dallas Stars Hockey ClubDean Foods CompanyDell ServicesDialog DirectE Smith Realty Partners

Ebby Halliday, RealtorsEdelman Public Relations WorldwideEmerson Process ManagementEN Consulting, Inc.Eulen AmericaThe Fairmont DallasFisher & Phillips, LLPFlowserve CorporationFossilFreemanFrost BankFujitsu Network Communications, Inc.Furniture Marketing GroupGardere Wynne Sewell LLPGenerational EquityGenslerGlobal Power Equipment Goldman SachsGrant Thornton LLPGreatbatch, Inc.Greenberg Traurig, LLPGulfstream Aerospace Corp.Hall Financial GroupHill & WilkinsonHilton AnatoleHilton Worldwide HNTB CorporationHolland & Knight LLPHollyFrontier CorporationHolman Boiler Works, Inc.HOLT CATHumana Inc.InStaff Interceramic, Inc.International Leadership of TexasJackson Walker L.L.P.JacobsJE Dunn ConstructionJLLJohnson Controls Inc.LegacyTexas BankLincoln Property CompanyMHBT, Inc.Midway Press, LTD

C COMMUNITY


Minerva Real EstateMission FoodsMunck Wilson Mandala, LLPMunsch Hardt Kopf & Harr, P.C.Neiman MarcusNestle Waters North AmericaNorton Rose FulbrightThe Novo GroupNTT Data, Inc.NYLO Hotels, LLCORIX USA CorporationParker UniversityPDS Technical ServicesPeople Performance ResourcesPioneer Natural Resources, LLCPlainsCapital BankPollock Paper DistributorsPublicis DallasQuality Art HouseRexel Holdings USA RIB U.S. CostRosewood Crescent HotelSchneider ElectricSimplexGrinnellSoftlayer Technologies Inc.Southern Methodist UniversitySouthwest AirlinesSouthwest Offi ce Systems, Inc.Staff elbach, Inc.State Farm Insurance CompaniesStellarStrasburger & Price, LLPSymantec CorporationTDJ EnterprisesTexas OncologyTexas Woman’s University Thompson & Knight LLPTime Warner CableTopGolfTown of AddisonTrane Commercial SystemsTrustPoint ManagementTurner Construction CompanyUMB Bank N.A.University of Texas at ArlingtonURS CorporationVerizon Wireless Village Green Holding, LLCVinson & Elkins L.L.P.Weber Shandwick Southwest WFAA-TVWhitley Penn, LLPWinStar World ResortsWomen’s Food Service Forum

LEADAAA Texas, Inc.Ackerman McQueenAcme Brick CompanyAdolfson & Peterson ConstructionAdolphus HotelAdvocare International, L.P.Allegro DevelopmentAlliance DataAlliedBarton Security ServicesAlvarez & MarsalAmerican Bank of CommerceAPAC - Texas, Inc.Arise Virtual SolutionsAsh Grove Cement CompanyAshtonAtkins of North AmericaAutomatic Data ProcessingAviall, A Boeing CompanyBain & Company, Inc.Balfour Beatty ConstructionBancTec, Inc.BelkBerger Engineering Co.Beshear GroupBethel UniversityThe Black-Eyed PeaBoka Powell, LLCBoston Consulting GroupBrunswick Group, LLPBullsEye TelecomCareington International CorporationCarrington, Coleman, Sloman & Blumenthal, L.L.P.Carter Financial ManagementChampion PartnersChandler Signs L.L.P.Coldwell Banker Residential BrokerageCommercial Metals CompanyCommunity Trust Bank ConcentraConsumer Credit CounselingService of Greater Dallas, Inc.Crowe Horwath LLPCyrusOneDallas Center for RehabilitationDallas Foundation Dallas Lighthouse for the BlindDallas MavericksDalworth RestorationDatabank, Ltd.DeGolyer and MacNaughtonDenali Construction ServicesDuro-Last Roofi ng, Inc.ECS Refi ning, Recycling and Asset Management

EnLink Midstream LLCEssilor of America, Inc.Estrada, Hinojosa & Company, Inc.Evergreen Life ServicesFederal Reserve Bank of DallasFonality, Inc.FPL Fibernet, LLCFresh Point Gables Residential TrustGateway Canyons Resort LLCGeorge W. Bush FoundationGibson, Dunn & Crutcher LLPGLP & AssociatesHalff Associates, Inc.Hart Group, Inc.Hazel’s Hot Shot, Inc.Hill + Knowlton StrategiesHolmes Murphy and AssociatesHRSmartHuawei TechnologiesHunt Construction GroupHunton & Williams LLPHuselton, Morgan & Maultsby, PCHyatt Regency DallasHyatt Regency DFWiFLY Dallas Indoor SkydivingImagetek Offi ce SystemsImaginuity Interactive, Inc.In-N-Out BurgerJMP EngineeringJoule, A Luxury Collection HotelKaplan College - DallasKimberly-Clark CorporationLBJ Infrastructure Group LLCLe Meridien Dallas, The StoneleighLinebarger Goggan Blair & Sampson, LLPLucas GroupManhattan Construction CompanyMarsh USA, Inc.Mary Kay Inc.McAlister’s Deli – DallasMcKinsey & Company, Inc.Metl-Span, LLCMonitronics International, Inc.MW Logistics, LLCMWH Americas, Inc.Networking Results, Inc.New York Life Regional HeadquartersNorth Highland CompanyOcean Prime RestaurantOffi ce Depot Business Solutions OHLPark Inn by Radisson

Peter O’Donnell, Jr.Polsinelli PCPost Properties, Inc.Prudential Asset ResourcesRagan’s HOPE FoundationThe Ritz-Carlton, DallasRiver Ranch Educational CharitiesRush Truck Center – Dallas Light and Medium DutyRussell Reynolds Associates, Inc.Schwan’s Home Services, Inc.Sewell Automotive CompaniesShannon Gracey Ratliff & Miller, LLPSleep Apnea Treatment Centers of AmericaSmart CookieSouthwest International TrucksSparks AgencySpine Physicians InstituteSpring Hill Suites Dallas Downtown – West EndState Fair of TexasSterling HotelStructure Tone SouthwestSun Holdings, LLCTelePacifi c CommunicationsTexas A&M University CommerceTexas Institute for SurgeryTexas Rangers Baseball ClubTowers WatsonTracyLockeTuesday Morning Corp.TXD Investment CompanyTXI/Texas Industries, Inc.Union BankUnion Pacifi c RailroadUnited Surgical Partners InternationalUniversity of South Carolina Career CenterUniversity of Texas at DallasUSAAU.S. Memory CareVirgin America AirlinesVOX GlobalW Dallas – Victory HotelWalnut Hill Medical CenterWarrior Group, Inc.Weaver Westin Galleria DallasWeston SolutionsWinston SchoolWoodbine Development CorporationYounger PartnersZale Corporation


IMPACT INVESTORSEach year The Real Estate Council receives both � nancial 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.

CHAMPION’S CIRCLEBank of America Merrill Lynch

Bank of Texas

Chicago Title Company/Fidelity National Financial (FNF)

Citigroup Foundation

Compatriot Capital

Deloitte.

JP Morgan

CHAIRMAN’S CIRCLEBBVA Compass

BURY

Butler Burgher Group

CBRE

Goldman Sachs

Granite Properties

HFF

Holt Lunsford Commercial

Hunt Realty Investments, Inc.

Jackson-Shaw

Jones Day

KPMG

Munsch Hardt Kopf & Harr PC

NorthMarq Capital

Republic Title of Texas, Inc.

Stewart National Title Services

PRESIDENT’S CIRCLEBalfour Beatty Construction

Beck Group

Behringer

Breitling Royalties

Champion Advisory Partners

Comerica Bank

Corgan

Crow Holdings Capital Partners, LLC

EY

Gaedeke Group LLC

Invesco Real Estate

Jones Lang LaSalle

KeyBank

Kimley-Horn and Associates, Inc.

Lincoln Property Company

Schwob Companies

Thackeray Partners

The Howard Hughes Corporation

ViewPoint Bank

Wells Fargo

BENEFACTOR’S CIRCLEAmegy Bank

Capital One Bank

Cassidy Turley

Chief Partners LP

Cushman & Wakefi eld of Texas, Inc.

E2M Partners, LLC

Fischer & Company

Frost

Gables Residential

Gardere Wynne Sewell LLP

Good Fulton & Farrell

Haynes and Boone, LLP

Highland Capital Management LP

Hines

Hudson Americas

Jackson Walker LLP

PlainsCapital Bank

Regions Bank

StratfordLand

The Retail Connection

US Bank

Winstead PC

Learn more at www.recouncil.com or by calling 214.692.3600

Paul Rowsey, Chairman

Sue Ansel, Vice Chairman

C COMMUNITY

1

ONLINE ATDFWREALESTATEREVIEW.COM

THE INTERACTIVECRANE REPORT

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 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 / 7 5

7

3

4

21

7

9

8

65

It was another full-house crowd of more than 1,200 when pro boxers took to the ring for a good cause at The Real Estate Council’s FightNight XXVI. The black tie extravaganza was held April 24 in the Hilton Anatole’s Chantilly Ballroom and featured casino gaming, Vegas-style entertainment, and amazing networking with the who’s who of the commercial real estate industry.

FightNight has grown into one of North Texas’ largest philanthropic events, raising more than $23 million over the past 26 years to support The Real Estate Council Foundation and its good works. These funds are leveraged with the pro bono expertise of The Real Estate Council members to support projects impacting the foundation’s four target areas: aff ordable housing, education, economic development, and the environment.

1 Randy Fleisher, Jeff Staubach, and

Tim Jordan-JLL2 Terrence Maiden and Frank

Mihalopoulos-Corinth Properties, Jerry Allen-City Councilmember

3 Dennis Noebel-Chicago Title, Diane Butler-Butler Burgher Group

4 A crew from Crow Holdings5 Peter Graf, MaryBeth Shapiro, Bo

Feagin-Republic Title6 Mitch Paradise and Jack

Matthews-Matthews Paradise Development

7 Trey Morsbach-HFF, Sue Ansel-Gables Residential, Paul Rowsey-Compatriot Capital

8 Dallas Cowboys players with Dallas Mayor Mike Rawlings and Roger Staubach-JLL

9 Patricia Gibson and Mark McClanahan-Hunt Realty Investments

Photography by James Edward


When Jeff Swope founded The Real Estate Council’s Associate Leadership Council two decades ago, he didn’t realize it would one day come full circle. But that’s exactly what has happened. Swope’s 33-year-old son, Tobin, an associate at Winstead PC, is a member of this year’s ALC class.

The elder Swope was The Real Estate Council’s fi rst chairman and a member of the founding board, back when the organization was launched in 1990. The group quickly established itself as an advocacy group and a model for industry and civic leadership. Swope formed the ALC in the mid-1990s to help young real estate professionals understand and become involved in their community. It’s a 10-month leadership development program where each class, which is typically limited to 25 to 30 participants between the ages of 27 and 37, performs a real estate-related community service project.

Swope, managing partner of real estate development and investment fi rm Champi-on Partners Ltd., says the ALC helps mem-bers gain a deeper understanding of the local market and the sense of pride that comes from giving back.

“There were so many young people who didn’t have any perspective on Dallas but who really wanted to get involved,” Swope says. “We wanted to develop a give-back philoso-phy, which people may not have in their DNA. These young people had an innate desire to give back, but didn’t always know how. The idea is that giving back is a skill that can be learned.”

Swope says the ALC typically receives be-

tween 50 and 60 applications for the 25 to 30 spots that are available each year. ALC mem-bers are given access to opportunities for education, networking, leadership training, and community service, and must commit to serve 20 hours per month.

As part of the program, members meet each month to create and implement a reno-vation project in the community. Last year’s class selected REAL School Gardens as its project. Members built learning gardens at two diff erent Dallas Independent School Dis-trict elementary schools. The eff ort included manual labor as well as raising funds to cover costs over what The Real Estate Council Foun-dation provided. This year’s project, for the East Dallas Boys & Girls Club, is expected to cost more than $100,000, all of which will be raised in cash and through in-kind donations.

“The program took off from the very begin-ning,” Swope says. “So many young people want to be involved in their community, and this pro-vided them with a way to do that.”

SHAPING THE NEXT GENERATION OF LEADERSThe Real Estate Council’s Associate Leadership Council fosters involvement among young professionals.BY TANYA RUTLEDGE

ALC ALUMNISome of the area’s most successful commercial real estate players are graduates of the ALC program and involved in its alumni association, which has grown to more than 400 members.

Graduates include:Michael Ablon, Pegasus AblonJon Altschuler, Altschuler + Co.Sue Ansel, Gables Residential Steve Aldrich, HillwoodLee Belland, Stream Realty PartnersGlenn Callison, Munsch Hardt Kopf & Harr PCTony Creme, HillwoodBrad Selner, JLLSteve Modory, Champion PartnersDenton Walker, Trammell Crow Co.Michele Wheeler, Jackson-ShawJosh White, CBRECraig Wilson, Cassidy TurleyManny Ybarra, Pillar Commercial

MAKING A DIFFERENCEHere’s a list of ALC community improvement projects over the years:

4523 Congo StreetBoys & Girls Club of East DallasBoys & Girls Club of Greater DallasBoys & Girls Club of Oak Cliff Girls Inc. of Oak Cliff Girls Inc. South Dallas CenterLa Calle Diez Community ParkLifenet Community Behavioral HealthMi EscuelitaOak Cliff United Methodist Church Child CarePark South YMCA—Champion CityPromise HouseREAL School GardensShort North Dallas (Hall Street)SouthFair Community Development Corp.Vogel AlcoveSt. Philips School and Community CenterWe Over Me Farm at Paul Quinn CollegeYMCA South Oak Cliff

ASSOCIATE LEADERSHIP COUNCIL

The Real Estate Council’s Associate Leadership Council (ALC) is a 10-month leadership devel-

opment program for 27- to 37-year-old commercial real estate professionals designed to inspire

and educate our future leaders. For more details, visit www.recouncil.com.

L LEADERSHIP

“THESE YOUNG PEOPLE HAD AN INNATE DESIRE TO GIVE BACK, BUT DIDN’T ALWAYS KNOW HOW.”—JEFF SWOPE

JOIN US AND BUILD THE CITYYOU’VE IMAGINED

The Real Estate Council is Texas’ largest and most influential organization of its kind representing more than 1,400 members and 500 companies. We strengthen our industry and community by connecting our members, developing leaders, advocating for business, and investing financial and human resources in good works.

MID-YEAR PRICING IS NOW AVAILABLE FOR NEW MEMBERS. Visit recouncil.com/join or call 214.692.3600 and join at half-price now so you won’t miss these upcoming events:

August 26, 2014—Insiders Roundtable: Water Conservation ToolkitOctober 2, 2014—Speaker Series: Gary Kelly, CEO Southwest Airlines October 23, 2014—Giving Gala: Under the stars at the Hilton Anatole Sculpture ParkDecember 4, 2014—Speaker Series: Capital Markets, moderated by JLL


When Jeff Swope founded The Real Estate Council’s Associate Leadership Council two decades ago, he didn’t realize it would one day come full circle. But that’s exactly what has happened. Swope’s 33-year-old son, Tobin, an associate at Winstead PC, is a member of this year’s ALC class.

The elder Swope was The Real Estate Council’s fi rst chairman and a member of the founding board, back when the organization was launched in 1990. The group quickly established itself as an advocacy group and a model for industry and civic leadership. Swope formed the ALC in the mid-1990s to help young real estate professionals understand and become involved in their community. It’s a 10-month leadership development program where each class, which is typically limited to 25 to 30 participants between the ages of 27 and 37, performs a real estate-related community service project.

Swope, managing partner of real estate development and investment fi rm Champi-on Partners Ltd., says the ALC helps mem-bers gain a deeper understanding of the local market and the sense of pride that comes from giving back.

“There were so many young people who didn’t have any perspective on Dallas but who really wanted to get involved,” Swope says. “We wanted to develop a give-back philoso-phy, which people may not have in their DNA. These young people had an innate desire to give back, but didn’t always know how. The idea is that giving back is a skill that can be learned.”

Swope says the ALC typically receives be-

tween 50 and 60 applications for the 25 to 30 spots that are available each year. ALC mem-bers are given access to opportunities for education, networking, leadership training, and community service, and must commit to serve 20 hours per month.

As part of the program, members meet each month to create and implement a reno-vation project in the community. Last year’s class selected REAL School Gardens as its project. Members built learning gardens at two diff erent Dallas Independent School Dis-trict elementary schools. The eff ort included manual labor as well as raising funds to cover costs over what The Real Estate Council Foun-dation provided. This year’s project, for the East Dallas Boys & Girls Club, is expected to cost more than $100,000, all of which will be raised in cash and through in-kind donations.

“The program took off from the very begin-ning,” Swope says. “So many young people want to be involved in their community, and this pro-vided them with a way to do that.”

SHAPING THE NEXT GENERATION OF LEADERSThe Real Estate Council’s Associate Leadership Council fosters involvement among young professionals.BY TANYA RUTLEDGE

ALC ALUMNISome of the area’s most successful commercial real estate players are graduates of the ALC program and involved in its alumni association, which has grown to more than 400 members.

Graduates include:Michael Ablon, Pegasus AblonJon Altschuler, Altschuler + Co.Sue Ansel, Gables Residential Steve Aldrich, HillwoodLee Belland, Stream Realty PartnersGlenn Callison, Munsch Hardt Kopf & Harr PCTony Creme, HillwoodBrad Selner, JLLSteve Modory, Champion PartnersDenton Walker, Trammell Crow Co.Michele Wheeler, Jackson-ShawJosh White, CBRECraig Wilson, Cassidy TurleyManny Ybarra, Pillar Commercial

MAKING A DIFFERENCEHere’s a list of ALC community improvement projects over the years:

4523 Congo StreetBoys & Girls Club of East DallasBoys & Girls Club of Greater DallasBoys & Girls Club of Oak Cliff Girls Inc. of Oak Cliff Girls Inc. South Dallas CenterLa Calle Diez Community ParkLifenet Community Behavioral HealthMi EscuelitaOak Cliff United Methodist Church Child CarePark South YMCA—Champion CityPromise HouseREAL School GardensShort North Dallas (Hall Street)SouthFair Community Development Corp.Vogel AlcoveSt. Philips School and Community CenterWe Over Me Farm at Paul Quinn CollegeYMCA South Oak Cliff

ASSOCIATE LEADERSHIP COUNCIL

The Real Estate Council’s Associate Leadership Council (ALC) is a 10-month leadership devel-

opment program for 27- to 37-year-old commercial real estate professionals designed to inspire

and educate our future leaders. For more details, visit www.recouncil.com.

L LEADERSHIP

“THESE YOUNG PEOPLE HAD AN INNATE DESIRE TO GIVE BACK, BUT DIDN’T ALWAYS KNOW HOW.”—JEFF SWOPE

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