Love Field area boom will bring first new office project there in decades

Developers are set to begin construction on the first office building near Love Field in almost three decades.

KDC — the same developer that did the huge State Farm Insurance campus in Richardson — plans to build the office project as part of the $200 million mixed-use West Love development under construction on Mockingbird Lane.

Read More Here on The Dallas Morning News

D-FW apartment rents rise higher than national average with a jump in January

North Texas apartment renters just can’t catch a break.

After near record rent increases last year, a just-released snapshot of January’s Dallas-Fort Worth apartment market shows more rent hikes are on the way.

Dallas-area apartment rents were up 5.7 percent last month compared with January 2015, according to the new research from apartment analyst Axiometrics Inc.

Read More Here on The Dallas Morning News

Case-Shiller: Dallas-area December home price gains the largest in almost 2 years

Dallas-area home prices posted another lofty gain in the latest nationwide comparison.

Dallas prices were up 9.6 percent in December from a year earlier in the Standard & Poor’s/Case-Shiller Home Price Index released Tuesday.

The local home price rise was among the five largest such increases in the country and was almost twice the nationwide gain of 5.4 percent.

Read More Here on The Dallas Morning News

Chart of the Week – DFW’s Economic Innovation

Last week we highlighted that DFW captured a top spot in the most “competitive” cities in the US and globally according to Site Selection magazine.

Going hand-in-hand with that is our market’s ability to create jobs.  These job gains obviously come from companies growing organically, as well as large relocations (like Toyota).  One area that flies under the radar, however, is the role of new companies forming.  These businesses, often small, are critically important in driving growth – and help define an area’s “vitality”.  Quite simply, these smaller companies are sometimes the innovators of products and ideas – and can be the genesis of tomorrow’s large corporations that define a region.  For DFW, think back to the early days of TI, EDS, and Frito-Lay.

The chart below summarizes the major US markets by the number of NET NEW companies (employing less than 50 people) created between 2010 and 2013 – essentially looking at the strength of the regional economies since the start of this growth cycle.  I get tired making this observation, but DFW’s pro-growth, low-cost business environment, and “entrepreneurial spirit”, helped propel our community to the top ranks, based on both raw numbers and percent.  Overall, we had more than 7.500 net new small businesses created, or 5.7%.  Few markets come anywhere close to this level of expansion.  In addition, DFW scored high in the medium-sized company category, with that segment expanding by 10% over the period.

What’s important here is that site selection professionals and relocating companies often use this metric to compare an area’s vitality or ability to innovate.  In the case of DFW, our market continues to stand out as a place to do business and to grow businesses – which should mean that we will continue to win more than our fair share of economic growth over the foreseeable future.

Chart of the Week 12.16.15

Chart of the Week – DFW Multifamily Permits Rank at the TOP

It should come as no surprise that DFW has risen to one of the top 10 markets in the US for multifamily permits.  The chart below tracks total multifamily permits against annual job gains for these markets.

What is important here is that is that DFW is one of the strongest job markets in the country.  We’ve commented many times that we’ve been adding jobs at a better than 100,000-per year clip for a few years now.  And, that is the key difference.  For me, it is all about the underlying economic engine.  Take DC, for example – after coming not of the recession strong, sequestration kicked-in and they are now struggling through the job erosion and slow-growth brought about by those policies.  In contrast, our rapid growth is fueling development across all real estate categories.

What is really critical to understand is that we are not late in the 4th quarter or anywhere near that final 2 minute hurry-up offense.  Based on general economic factors for the US and the strength of our local engine (remember 2017 is when Toyota’s and Liberty Mutual open) we still have continued expansion ahead – as such, we are probably in the early to mid-part of the 3rd.  That leaves us a lot of game to play.  In addition, our multifamily metrics are strong!  As you can see below, apartment rents are rising fast – and the average occupancy rate is 95%.  Hey, that means our apartment units are running essentially full.  And, if that is not enough, fully a third of DFW apartment units report occupancy above 97%.  Those are solid metrics, by any standard.

Next week, we will take a closer look at the new single family home sector and assess the potential under-supply shaping DFW market demand today.

Chart of the Week 11.10.15

California lost 9,000 business HQs and expansions, mostly to Texas, 7-year study says

Roughly 9,000 California companies moved their headquarters or diverted projects to out-of-state locations in the last seven years, and Dallas-Fort Worth has been a prime beneficiary of the Golden State’s “hostile” business environment.

That’s the conclusion of study by Joseph Vranich, a site selection consultant and president of Irvine, California-based Spectrum Location Solutions.

Read more on the Dallas Business Journal

D-FW home price gains still ahead of U.S. averages

Dallas-Fort Worth home prices are up 8.5 percent in the latest nationwide comparison.

That’s well ahead of the 5.5 percent year-over-year nationwide third quarter home price gain reported Thursday by the National Association of Realtors.

The real estate sales trade association looks at about 170 U.S. markets for its closely-watched quarterly home price report.

Home prices were up in 87 percent of the cities included in the Realtors’ price comparison, which was released at the trade group’s annual conference this week in San Diego.

Read more on the Dallas Morning News

ADP says Texas added 17,200 private jobs in October

Texas added slightly more private-sector jobs in October than the previous, which could mirror an uptick seen nationally, according to a report released today by payroll processor ADP.

It estimates that Texas added 17,200 private-sector jobs, up from a projected 14,300 jobs in September. Private jobs make up the lion’s share of all jobs in the economy.

The state ranked second to California’s estimated 23,100 new jobs in October.

Read more on the Dallas Morning News

Dallas’ 5 Biggest Retail Real Estate Stories in 2015

As the International Council of Shopping Centers’ Texas conference gets underway in Dallas on Wednesday, JLL executives have highlighted some of the biggest trends in retail real estate throughout the region.

“Underneath all of these retail real estate trends is the job growth we have in Dallas-Fort Worth and the housing starts that follow job growth, and the retail that follows those housing starts,” Clay Smith, JLL’s managing director, told theDallas Business Journal.

That growth is spread broadly throughout the region, he said.

North Texas continues to see an influx of grocery stores to serve the growing number of residents in the region, with suburban and urban locations being snapped up by hungry grocers. HEB has recently acquired more than 20 suburban development sites, but has yet to announce plans.

Other grocers, such as Kroger and Tom Thumb also have opened new stores in the suburbs this year, Smith said.

“All across the Metroplex you see a focus on neighborhood grocery-anchored shopping centers,” he said. “And now, grocers are focused on hitting the urban core, such as Uptown, the Design District and Deep Ellum.

Read more on the Dallas Business Journal