Uptown’s McKinney Avenue ranks as Dallas’ top office address

When it comes to pricey homes, no one argues that the Park Cities and Preston Hollow are A-listers in North Texas.

And for high-dollar apartment rentals, look no further than Uptown.

But what about top price office digs?

Dallas’ McKinney Avenue is the most expensive business address, according to a new report by commercial real estate firm JLL.

In its annual “America’s Most Expensive Streets” report, McKinney Avenue gets the call out with office rents of $43.81 per square foot.

That’s almost twice the overall average for North Texas.

Read more on the Dallas Morning News

Click Here to view the full report

Charles Schwab to build corporate campus near Perot’s Circle T Ranch development

San Francisco-based Charles Schwab (NYSE: SCHW) could open up a massive operations center on a corporate campus planned adjacent to Circle T Ranch, a 2,500-acre mixed-use, master-planned development in Westlake.

The financial services company is expected to buy 74 acres of land adjacent to the Circle T Ranch from Hillwood by the end of the year, according to real estate sources.

“We’re very interested in the Dallas area for future growth and have signed a lease in the Westlake area that can accommodate up to 500 employees,” said Sarah Bulgatz, a spokeswoman for Charles Schwab, in an email to the Dallas Business Journal. Bulgatz declined to comment concerning speculation about future real estate deals involving Charles Schwab.

Read more on the Dallas Business Journal

Chart of the Week – Office Construction Pipeline

Dallas continues to make the national real estate headlines about our office construction pipeline.  While the big number is always quoted – 7.7 million SF of space now under construction – there is little to no commentary about what is driving this number.  I’m somewhat sensitive about this because, being in Texas, there is sometimes to leap by pundits to the impact of energy on our TX economy.

As we all know, our market has become very diverse, and while energy is a part of our make-up, it is not the driver it was back in the 1980s or 1990s.  Rather, our sizable construction pipeline is made up of several diverse build-to-suits.  When we think of these, Toyota clearly comes to mind, as does the newest phase for State Farm.  In addition, other smaller projects round out the list, such as 7-Eleven and Raytheon.  As of the beginning of the third quarter, 48% of our pipeline is accounted for in the large BTSs.  The remain 10% is in spaces that have been preleased in multi-tenant buildings.

Overall, this level of “preleasing” is a solid showing and does not suggest that our market is over-heated.  What’s even better, is that this economic cycle still has legs, so we expect rent gains to continue, even though vacancy may begin to drift up gradually in 2016.

Chart of the Week 9.28.15

Texas economy grew at ‘moderate’ pace in early fall: 6 things to know

The Texas economy grew at “moderate” pace from mid-August through early October, according to an economic snapshot released today by the Federal Reserve.

1. Energy: Oil drilling declined and demand for oilfield services remained depressed. Firms were considering further but smaller cuts to 2016 capital spending plans. The financial positions of many firms continue to deteriorate amid current price and demand levels. Contacts are concerned that the last three months of the year will bring a “substantial increase” in defaults, bankruptcies, mergers, and acquisitions.

2. Manufacturing: Most manufacturers, including those in primary and fabricated metals, machinery and food products, reported increased demand. Some energy-related manufacturing and many chemicals products have been hurt by the high dollar and lower oil prices.

3. Transportation: There were steep declines in rail shipments of petroleum products and nonmetallic metals, including sand used in drilling. Steel shipments were down notably, mainly due to oil and gas projects being halted. Motor vehicle shipments was a bright spot, with volumes up markedly.

Hall of Fame to move to Toyota Stadium as part of $39M in upgrades

Major League Soccer team FC Dallas plans to make a major unveil Wednesday, showing off $39 million of upgrades at Toyota Stadium. That will include moving the National Soccer Hall of Fame Museum to the stadium.

FC Dallas will unveil the upgrades to Toyota Stadium and the Hall of Fame in conjunction with U.S. Soccer, the Frisco Independent School District and the City of Frisco.

Dallas metro area ranks 3rd in nation for jobs

The Dallas metro area, which includes Plano and Irving, is the third best big city for jobs, according to Forbes’ most recent national rankings.

The area experienced a 4.2 percent increase in the number of jobs last year, bringing the total job growth from 2009 through 2014 to 23 percent. Total employment has gone up 15.7 percent in the past six years.

According to the report, job growth has historically occurred mostly in coastal cities with financial institutions (which were more robust following the 2008 economic downturn due to revitalization efforts) or energy suppliers.

Read more on The Dallas Morning News

MetLife makes another big Uptown play with Ritz loan

A just completed deal by Metropolitan Life Insurance makes the insitutitonal real estate owner and lender the undisputed top investor in Dallas’ booming Uptown property market.

MetLife has just provided $78 million to refinance the 215-room Ritz-Carlton Hotel on McKinney Avenue, Dallas County records show. Fort Worth-based Crescent Real Estate which developed the luxury hotel obtained the financial from the New York-based insurance and financial services firm.

The 10-year-old hotel is considered one of Dallas’ top lodging venues. The financing does not include the 70 residential condominums located in the tower above the Ritz.

With the hotel financing, MetLife has upped the ante on its Uptown property portfolio.

Read more here on The Dallas Morning News

New apartments and retail space will add to Dallas’ popular Knox Street neighborhood

One of Dallas’ first retail districts is seeing a new building boom.

The Knox Street district, just east of Highland Park, got its start early last century when retailers and businesses migrated to the area next to the old Highland Park MKT rail station on Abbott Avenue.

Two of the area’s oldest businesses are still there — Highland Park Soda Fountain (1912) and Weir’s Furniture (1948).

Now developers are adding hundreds of high-end apartments and more pricey shops and restaurants to the mix.

A handful of new rental communities are on the way for the area along with several new shopping venues.

Read more here on The Dallas Morning News

Fort Worth’s apartment rent growth breaks record at 6.8% annual gain

Fort Worth’s annual effective rents grew 6.8 percent year-over-year in March, which is the city’s highest rent gain in the current real estate cycle, according to research from Addison-based Axiometrics.

Meanwhile, the annual effective rent growth for the same time period in Dallas reached 6 percent. Dallas and Fort Worth’s annual rent increases surpass the national effective rent growth of 5 percent.

Read More Here on the Dallas Business Journal