The Crane Report - Spring 2019

Who's building what, where



Dallas-Fort Worth is a region that always meets challenges head-on and wins, says Brad Blankenship of Cushman & Wakefield. The region is a competitive, hot market in the office, industrial, and multifamily sectors as Dallas-Fort Worth continues to experience a population boom. State and local governments are marketing North Texas communities aggressively as great places to live and do business.

ON-THE-GROUND INSIGHTS

“Tenants are attracted to new, high-quality offices, floor-to-ceiling windows, and nearby amenities to recruit and retain a strong, educated, young workforce. Developers want to capitalize on that demand by delivering quality office product. Additionally, historically iconic buildings are being infused with significant capital to keep pace with the new construction.”
Bret Hefton, JLL Senior Vice President 

“Competition is driving everything. Labor competition is forcing companies to look for better properties to attract and retain talent. Labor shortage and competition is also driving up construction costs. Market geographic competition is in play for corporations seeking lower taxes, a lower cost of living, and an educated workforce.”
Brad Blankenship, Executive Managing Director, Project and Development Services, Cushman & Wakefield

“Industrial developments in North Texas continue to meet the ever-evolving demands users require to achieve optimum efficiency in their buildings. Speculative projects are offering clear heights reaching 40 feet, truck court depths beyond 225 feet, and staging bays of 70 feet. Whether it’s multilevel e-commerce or an automated storage need, developers are providing the innovation.”
Chris Teesdale, Executive Vice President, Colliers Dallas

“Multifamily properties are experiencing several major shifts in design thinking. There is a growing preference for one-bedroom units, efficiencies, and even ‘micro-units’ that encompass just a few hundred square feet. These shrinking footprints have proportionally smaller rents that allow early-career professionals to live near their urban workplaces.”
Donald R. Powell, Principal, BOKA Architects

OFFICE

Announced Developments

1. FRISCO OFFICE BUILDING AT THE STAR
SIZE: 300,000 square feet
LOCATION: Frisco
DEVELOPER: Blue Star Land
DETAILS: The new building at the Dallas Cowboys’ Star development will overlook the Cowboys’ practice field. Blue Star plans to begin construction on the project—reportedly for a big-name corporate tenant—no later than August, with completion in 2021. 

2. ROUGHRIDER PLAZA
SIZE: 350,000 square feet
LOCATION: Frisco
DEVELOPER: Tom Gaglardi
DETAILS: The mixed-use development on the Dallas North Tollway just south of Frisco’s Dr Pepper Ballpark will have 350,000 square feet of office space across three buildings ranging from four to eight stories. The project will have a 311-room, 7-story hotel, and four retail buildings. Also, several parking garages are planned. 

3. LAKESIDE CENTER
SIZE: 138,500 square feet
LOCATION: Flower Mound
DEVELOPER: Realty Capital Management
DETAILS: There will be two- and four-story office buildings in this 10-acre project in the Lakeside business district. Staubach Capital is the equity partner and First United Bank is the construction lender. The buildings were designed by BOKA Powell.

4. SRS DISTRIBUTION INC.
SIZE: 100,000 square feet
LOCATION: McKinney
DEVELOPER: KDC
DETAILS: The building products firm announced that it will build a four-story, 100,000-square-foot corporate headquarters in the Hub 121 mixed-used development at State Highway 121 and Alma Road. Dallas’ KDC will build the Gensler-designed building that will sit on four acres. Work starts this spring.

INDUSTRIAL

Announced Developments

1. STANLEY BLACK & DECKER
SIZE: 1.2 million square feet
LOCATION: Northlake
DEVELOPER: Hillwood Properties
DETAILS: The new facility will serve as a regional distribution hub for the tool manufacturer and will bring 300 new jobs to North Fort Worth in the AllianceTexas development owned by Ross Perot Jr.’s Hillwood. The building is near Fort Worth Alliance Airport, the BNSF Railway Alliance Intermodal Facility, FedEx Express Southwest Regional Hub, and the UPS and FedEx ground shipping centers.

2. SOUTH FORT WORTH
SIZE: 1 million+ square feet
LOCATION: South Fort Worth
DEVELOPER: Crow Holdings Capital Real Estate and Rob Riner Cos.
DETAILS:  The project will be at Joel East and Oak Grove Road. The companies are building a 394,000 square-foot, a 294,000-square-foot, and two 187,000-square-foot buildings on the site. Construction was expected to begin in the first quarter of 2019.

Under Construction

3. NORTHWEST COMMERCE PARK
SIZE: 1.1 million square feet
LOCATION: Fort Worth
DEVELOPER: Stream Realty Partners
DETAILS: Stream Realty Partners is breaking ground on the industrial park that will be capitalized via a joint venture with a global institutional investor. It’s on 66 acres and will have as much as 1.1 million square feet of space in three buildings. 

4. OLLIE’S BARGAIN OUTLET
SIZE: 615,060 square feet
LOCATION: Lancaster
DEVELOPER: Jones Development Co.
DETAILS: The closeout and excess merchandiser’s build-to-suit distribution center will be at the southwest corner of West Wintergreen Road and North Lancaster-Hutchins Road within the Wintergreen Exchange development, a 71-acre, master-planned Class A industrial park in southern Dallas County. It is expected to be completed in the fourth quarter of 2019. The development team includes Bob Moore Construction, engineering firm Pacheco Koch, and Alliance Architects.

MULTIFAMILY

Announced Developments

1. LAKEYARD DISTRICT
SIZE: 364 units
LOCATION: Lewisville
DEVELOPER: Leon Capital Group
DETAILS: The community will be on a 15.2-acre site at 1000 Lake Ridge Road, about a mile from the Sam Rayburn Tollway. Eight three-story buildings will comprise the development. LG Wade is the general contractor, and the architect is BGO Architects. Delivery of the first units is expected in November.

2. LEGACY LAKESHORE
SIZE: 293 units
LOCATION: Irving
DEVELOPER: Legacy Partners and HGC Investment Management
DETAILS: The property will be on nearly 3.5 acres on Lake Carolyn in the Las Colinas Urban Center. The project is designed by REES Associates, and it is expected to open in 2020. 

3. JEFFERSON TEXAS PLAZA
SIZE: 282 units
LOCATION: Irving
DEVELOPER: JPI
DETAILS: It’s a 9-acre development near the Irving Convention Center and the Toyota Music Factory. A pedestrian trail will connect the apartments to the University of Dallas.

Under Construction

4. JEFFERSON EAST BRANCH
SIZE: 390 units
LOCATON: Farmers Branch
DEVELOPER: JPI
DETAILS:  Ground has been broken on the new project on the Dallas North Tollway in Farmers Branch. It’s on the west side of the Tollway, north of the Dallas Galleria.