DALLAS FORT WORTH | Urban + Suburban P & C

[dollaztx]

Originally Posted by TexasRE

With the Class A office vacancy rate still quite high in downtown Dallas, I suspect that it'll be a couple of yrs. away yet. The vacancy rate at 18% along with sub/shadow space around 20%, that is too high to build a 1.5 million sq. ft. office tower downtown without a major lead tenant, leasing at least 600-700K sq. ft. Even then, to reach a viable financial working number, a significant portion of the remaining space would need tenants rather quickly. I would say by 2020, this tower will be completed or nearing completion.

I know, it's my hometown of Dallas, we love our city. But, lets not get our egos involved here for the sake of having a supertall in our city. Developers built too much inadequate office space here in the 80's, downtown still hasn't recovered from it. And we're paying the price for it, while our suburban areas are flourishing with development.

Your absolutely right TexasRE, but I should of been more clear in that I predict we will hear some good news in the 4th quarter as far as them coming out with some preliminary sketch or rendering that they can start selling to potential tenants. At the very least the actual flooring or height they plan this building to be.

[dch526]

Originally Posted by TexasRE

With the Class A office vacancy rate still quite high in downtown Dallas, I suspect that it'll be a couple of yrs. away yet. The vacancy rate at 18% along with sub/shadow space around 20%, that is too high to build a 1.5 million sq. ft. office tower downtown without a major lead tenant, leasing at least 600-700K sq. ft. Even then, to reach a viable financial working number, a significant portion of the remaining space would need tenants rather quickly. I would say by 2020, this tower will be completed or nearing completion.

I know, it's my hometown of Dallas, we love our city. But, lets not get our egos involved here for the sake of having a supertall in our city. Developers built too much inadequate office space here in the 80's, downtown still hasn't recovered from it. And we're paying the price for it, while our suburban areas are flourishing with development.

Yea, I would have to agree.

Late 2014/Early 2015: Announcement and a preliminary rendering
18-24 months to market, design and get permits for the building
Mid 2016: Start Construction
Late 2018/Early 2019: Complete Construction

The real wiggle room is the 18-24 months timeline for marketing, if they get a huge tenant right off the bat then that could shave off 12-18 months from the timeline. (I'm rooting for this scenario and a 2015 ground breaking)

[TTU Arch]

Keep in mind empty office space in closed empty buildings is still calculated - buildings by today's standards are not up to par for leasing, and are being studied for a conversion into a new use. 1401 Elm is good example and has been studied for a couple years after it shut its doors 5 years ago. The building is at 52 floors and accounts for approximately 27% of the vacant office space in DTD. Also, the new Harwood Suites is about to open on Elm. This was another office building conversion (not nearly as big obviously).

There are number of buildings with volumes of space waiting to be occupied. There have also been a number of announcements for expansions, relocations to downtown etc. So there is momentum, and there will continue to be a demand for new product. That is what Ross Perot and his peers are counting on for new projects. In other words the office vacancy is not as bleak as some would make it out to be, and a snap shop leasing percentage does not tell the whole story.

[futuresooner]

Originally Posted by TTU Arch

Keep in mind empty office space in closed empty buildings is still calculated - buildings by today's standards are not up to par for leasing, and are being studied for a conversion into a new use. 1401 Elm is good example and has been studied for a couple years after it shut its doors 5 years ago. The building is at 52 floors and accounts for approximately 27% of the vacant office space in DTD. Also, the new Harwood Suites is about to open on Elm. This was another office building conversion (not nearly as big obviously).

There are number of buildings with volumes of space waiting to be occupied. There have also been a number of announcements for expansions, relocations to downtown etc. So there is momentum, and there will continue to be a demand for new product. That is what Ross Perot and his peers are counting on for new projects. In other words the office vacancy is not as bleak as some would make it out to be, and a snap shop leasing percentage does not tell the whole story.

Well put. It's the same scenario in downtown Nashville. The Class A vacant is roughly 4-6% while the overall inclusion is roughly 8-10%. One building alone, the former Regions Center now USB Center and undergoing a remodel, is nearly 85% vacant and houses roughly 600k sq ft of Class B space. There are others, like Noel Place and the old First Union building that are completely vacant and awaiting conversion to apartments and/or hotel.

[Austin55]

Fort Worth- More information on the Clearfork project along the Trinity.

Masterplan, Phase ono is everything to the top left of the traffic circle.


http://clearfork1848.com/

Phase one includes 100,000 sq/ft of Office, 50,000 of retail, and 325,000 of residential across 392 units. A new hospital, Forest Park Medical Center, is also part of the first phase.

A couple renderings,


http://www.wdgarch.com/portfolio/projects/streetlights-clearfork


source

[maconahey]

Skyhouse


New camera angle

[dch526]

Dream Hotel set to start construction this summer and open by the end of 2015.

http://www.bizjournals.com/dallas/news/2014/01/17/construction-group-selected-to-build.html

[R1070]

oh wow. I thought they were trying to break ground in January. That's a pretty decent push back in time frame.

[colemonkee]

I've stayed at the midtown Dream Hotel in NY, and they're a pretty funky version of modern cool. Definitely a big win for Uptown.

[R1070]

Originally Posted by colemonkee

I've stayed at the midtown Dream Hotel in NY, and they're a pretty funky version of modern cool. Definitely a big win for Uptown.

I've heard that it's a pretty cool hotel. Def agree that it's awesome for Uptown. I wonder if anything is going to come of the Virgin Hotel for Dallas.

[eburress]

Originally Posted by dch526

Dream Hotel set to start construction this summer and open by the end of 2015.

http://www.bizjournals.com/dallas/news/2014/01/17/construction-group-selected-to-build.html

Wow, not a fan of this one. What an unattractive building, especially when you look at so many of the other projects going up.

[TTU Arch]

New Uptown Dallas apartment highrise to start soon

http://bizbeatblog.dallasnews.com/2014/01/new-uptown-dallas-apartment-highrise-to-start-soon.html/

"Construction is starting on yet another Uptown apartment highrise.

The 1900 Cedar Springs rental community is located at Cedar Springs Road and Harwood Street and will be constructed on top of an existing parking garage..."

"...The 1900 Cedar Springs building is the fourth Uptown highrise apartment project under construction."

[JoninATX]

Nice, I'm glad they are finally moving forward with the project.

[TTU Arch]

Dallas takes #2 spot for U.S. commercial real estate
http://bizbeatblog.dallasnews.com/2014/01/dallas-takes-2-spot-for-commercial-real-estate.html/
By Steve Brown
[email protected]

"Both Dallas and Fort Worth have made it on a list of the top U.S. commercial real estate markets, according to Coldwell Banker Commercial.

The nationwide commercial real state firm compared dynamics including population, the office market, apartments, shopping centers and labor conditions for its new report.

Dallas ranked second on the list behind only Orlando...."

"...Dallas got the highest marks in the report for the strength of its retail market and strong population growth."

[N90]

Shops at Park Lane adds 3 buildings for restaurants, retail, office space

The Shops at Park Lane has begun construction on three new buildings that will add more than 160,000 square feet of retail, restaurant and office space to the Dallas development.

The new buildings bring the total square footage of the property at Park Lane and U.S. Highway 75, to more than 1.6 million square feet.

One of the buildings will be five-stories measuring 150,000 square feet, which will comprise 120,000 square feet of office space and 30,000 square feet of retail on the ground floor.


An outdoor plaza will serve as the central gathering place for The Shops at Park Lane, and will be anchored on either end with two restaurant buildings. The new cafes and restaurants that will be added will have large outdoor patios. The plaza will have areas to relax and include Wi-Fi, landscaping and water features.

http://m.bizjournals.com/dallas/news/2014/01/29/shops-at-park-lane-adds-3-buildings-for.html

[TTU Arch]

^ The retail street frontage along Central Expwy and the internal park will really help to change the feel of the whole complex, imo. Getting rid of those asphalt parking lots and replacing them with a park will also give the residents there a better view. Its good to see this one moving forward.

[TTU Arch]

Street Lighting Residential Tower - Uptown (20 stories)

http://bizbeatblog.dallasnews.com/2014/0...-new-uptown-dallas-apartment-tower.html/

Plans provide details for new Uptown Dallas apartment tower
By Steve Brown

"....The apartment highrise would be built across the street from Hotel Zaza at Maple and Thomas Avenues....

StreetLights’ planned building will have 212 luxury apartments and will be 260 feet tall, according to details filed with the City of Dallas....

Three highrise apartment developments are currently underway in Uptown and more are in the works..."

[toxteth o'grady]

Originally Posted by N90

Shops at Park Lane adds 3 buildings for restaurants, retail, office space

http://m.bizjournals.com/dallas/news/2014/01/29/shops-at-park-lane-adds-3-buildings-for.html

That's an ideal location, at the rail station and across from NorthPark. Should be a good addition.

[eburress]

Originally Posted by TTU Arch

Street Lighting Residential Tower - Uptown (20 stories)

http://bizbeatblog.dallasnews.com/2014/0...-new-uptown-dallas-apartment-tower.html/

Plans provide details for new Uptown Dallas apartment tower
By Steve Brown

"....The apartment highrise would be built across the street from Hotel Zaza at Maple and Thomas Avenues....

StreetLights’ planned building will have 212 luxury apartments and will be 260 feet tall, according to details filed with the City of Dallas....

Three highrise apartment developments are currently underway in Uptown and more are in the works..."

I'm really excited about this one and hope it turns out at least as well as the Taylor!

[TTU Arch]

When you step back for minute and think of the number of projects under development along McKinney Ave or adjacent - its pretty amazing how much the uptown neighborhood is getting a make-over. I'm not including all the developments underway along Turtle Creek Blvd / area.

Directly on McKinney Ave

- Dream Hotel soon to start
- 2500 McKinney Ave Tower (Whole Foods / Gables Apts)
- across from 2500 is the Residential tower on Old Hardrock site that just got city approval
- Street Lights tower
- possible KDC tower
- McKinney and Olive office tower (no start date yet)
- Forest City's retail / residential tower. This all within a short ~ 2 mile stretch.

Adjacent to or nearby
- Richards Group office tower
- 1900 Cedar Springs (same block / behind 1900 McKinney Ave condo tower)