TEXAS SNAPSHOT, SEPTEMBER 2012

DALLAS OFFICE SNAPSHOT

Things really are bigger and better in Texas. It is well-documented that the state economy is the second largest in the nation and the 15th largest in the world. As the leading national exporter of goods, Texas grosses more than $100 billion in world trade on an annual basis. The state also houses 50 Fortune 500 company headquarters, the most of any state, and continues to add more jobs than the other 49 states combined.

Many of the characteristics that make Texas great also makes Dallas great, such as no state income tax, affordable housing, low taxation, a great business environment, quality higher education and an abundance of natural resources. Dallas ranks in the top third for young brainpower with 21 percent of individuals between 18 and 34 holding a bachelor’s degree or higher. Combine the educated workforce with the area’s centralized location, world class airports and rail system and companies take notice.

Dallas’ expanding workforce and growing population have sparked an appetite for large construction projects around the city. Expansions are occurring in mass transit, on highways, parks and recreation and through major developments such as Cowboys Stadium and Terminal expansions at both DFW International Airport and Dallas Love Field. While city leaders and local government are proving their dedication to city progress, no other sector has more to gain than the Dallas Central Business District (CBD).

The convenience of Dallas Area Rapid Transit (DART) in the CBD and the surrounding highway infrastructure make the area highly accessible. Companies considering space downtown inquire first about a building’s proximity to DART. As the fastest growing transit system in the country, DART is the aorta to the CBD and offers cost-effective transportation for North Texas’ largest concentration of employees with more than 135,000 workers.

Today there are tenants looking for more than 5 million square feet of space in the CBD, and for good reason. The benefit of working, living and playing downtown has renewed interest from investors as well as corporations looking to relocate. Recent CBD transactions include JPMorgan’s purchase of Trammell Crow Center and Fountain Place, INVESCO’s joint venture purchase of Plaza of the Americas, Cousins’ purchase of 2100 Ross Avenue and Encore’s interest in Patriot Tower. Corporate headquarter relocations include AT&T, Comerica, 7-Eleven and D Magazine.

Located along Ross Avenue, The Dallas Arts District is a major development reshaping the CBD. Dallas has the largest contiguous arts district in the country totaling more than 19 city blocks and 68 acres. Housed within the district’s boundaries is the AT&T Performing Arts Center, a development encompassing the Winspear Opera House, the Wyly Theatre, parks and underground parking areas.

The district also hosts Booker T. Washington School for the Performing and Visual Arts, which has cultivated stars such as Norah Jones, Edie Brickell and Erykah Badu. The development of this area has been a major driver attracting not only businesses but housing as well.

Today there are more than 7,000 residents in the CBD, up from only 200 people in 1996. The most notable residential building under construction is the $200 million Museum Tower, a 42-story structure that will overlook the Nasher Sculpture Center. The Tower will become one of the residential centerpieces of Dallas upon completion. In addition, there are plans to convert half of Patriot Tower’s 600,000 square feet to residential.

Supporting the CBD are hotels and more than 250 retailers and restaurants. The critically acclaimed French Room, Stephan Pyles’ award-winning restaurant, and the AAA/Four Diamond Pyramid Restaurant & Bar are renowned institutions. Recently Pho Colonial, Wild Salsa and Chop House Burger opened their doors to complete the eclectic restaurant offering in the area.

The opening of the 1,000-room Omni Dallas Hotel is set to break city convention records during the next few years, drawing major attention to the CBD. Other notable downtown hotels include The Joule, which is currently undergoing a multi-million dollar room renovation and meeting space expansion, The Adolphus, The Fairmount and The Sheraton.

Dallas is dedicated to the beautification of the CBD and has focused millions of dollars developing green spaces. There are currently more than 20 parks and plazas. The most notable being the five-acre Klyde Warren Park, which will offer an outdoor performance stage, a dog park, restaurant, fountains and walkways when opened later this year. The park will be suspended over the Woodall Rodgers Freeway and will bridge downtown with The Arts District and the Uptown area.

As the iconic 1980s show “Dallas” reinstates its place as one of the most popular series on television, the city is presenting its business district as a premier place to work, live and visit. The CBD is in a better position to compete for businesses and residents than at any point in recent memory and serves as a reminder of what private business and local government can create when sharing a vision.

— Malcolm Ross, managing director of CASE Commercial Real Estate Partners/TCN Worldwide

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