The Dallas / Fort Worth area is a booming market in commercial real estate. In a recent radio interview, Jim Kelley of Champions DFW Commercial Realty, LLC joined Ron Taylor on Texas Money & Business on 620 AM in the DFW area to discuss this topic.
Ron: Why is there a boom right now?
Jim: Well, you’ve got so much going on in the Metroplex, and it kind of starts with some of the corporate relocations such as Toyota, who’s relocating from California. They’re bringing 4,000 jobs. Their new campus is a $350 million dollar project.
Ron: That’s terrific.
Jim: With over a million square feet in North Plano. So those types of relocations generate a lot of rooftops. Obviously you’ve got low barriers to entry in Texas. Texas is a very pro-business, pro-development state.
Jim: So that whole synergy is driving a lot of the development and the progress that we’re seeing in the marketplace.
Ron: Orient us on that term real quick, Jim. For those who might not be quite familiar with “low barrier.” Tell us why that’s important.
Jim: Well, you don’t have as many laws, regulations, ordinances that are involved with development such as a state like California, where you have a lot of state and local ordinances and codes that prevent certain types of development. It makes it harder to develop commercial real estate.
Ron: Yeah. So Texas is a wonderful place to do business, it sounds to me like, Jim. And this is exciting about Toyota coming to Plano. I heard about this and a lot of the media input about this, so we’re excited about that. Give us some other areas, some other exciting things that’s happening here in North Texas that you’re excited about.
Jim: Absolutely. North Texas is just kind of white-hot right now. It’s just, we’re seeing in every property sector, from office to retail to industrial-warehouse, it’s just booming. A combination of soaring population growth, record job gains, is driving the demand for all this real estate growth. But just to kind of give you a benchmark, Texas expenditures on commercial real estate development totaled roughly $42 billion last year. The closest to Texas was California at 13 million [dollars].
Jim: And New York at 10 million [dollars]. There’s more than five billion [dollars] in commercial development underway in Frisco, which also includes the Dallas Cowboys’ new training and office facility there in Frisco. There’s going to be an Omni Hotel that’s coming that’s going to be adjacent to that. So a lot of that growth is being developed.
And we’re seeing it being pushed out further, such as Prosper. Jerry Jones, the owner of the Cowboys, is developing a big retail center up in Prosper. It’s going to be over $1 billion in value. 300,000 square feet of retail. So we’re just seeing that around a lot of the North Texas market, which includes retail. It includes office, medical office, as well as a residential development. And it’s just been an unbelievable path of growth right now.
In addition to Jim’s insight on the booming market, he discusses the current commercial real estate inventory, vacancy rates, office leasing, interest rates and how long this booming market can last. Listen to the podcast, below.
Learn more about the Champions DFW team and their contact information, here.