When many people hear about Dallas commercial property management, and real estate, they immediately think of cattle ranches and oil properties. The Dallas-Fort Worth metropolitan area, a.k.a. DFW, or The Metroplex, was certainly built on those industries. However, the modern metro area has grown beyond its humble heritage into a diverse economic area with expansive commercial real estate assets of a wide variety.
The Metroplex is made up of 13 counties and is larger than the states of Connecticut and Rhode Island combined. Anchored by Dallas (a city of 1.2 million) and Fort Worth (over 800,000 residents), DFW also has cities like Arlington, Irving, and Plano with over 200,000 residents each and a number of cities throughout with over 100,000 residents each.
Although the nation’s largest inland metro area is home to almost 7.4 million residents, it continues to grow daily. Almost 400 people relocate to DFW each day. With a history of business and entrepreneurship, DFW’s relatively low cost of living combined with Texas’ business-friendly and development-friendly regulations create a great place to do business. Where there is business, there is always commercial buildings requiring commercial property management services.
A Wave of Growth Across the Metroplex
DFW’s economy is the 4th largest in the nation and the 17th largest economy in the world. Key industries in the Metroplex include technology, energy, banking, commerce, healthcare and medical research, telecommunications, and transportation and logistics.
For the past 7 years, Dallas has ridden a wave of growth. After the Great Recession of 2008–2009, the area rebounded quickly, continually adding new jobs.
Almost 750,000 jobs have been added since 2009 — almost four new jobs for every job lost in the recession. Healthy growth in sectors like manufacturing, trade, financial, education, and health has contributed to rising employment.
Unemployment hovers at around 3.8%, lower than the 4.8% average across the rest of the nation. During a 12-month period which ended in May 2017, almost 116,000 jobs were added. Sectors with the largest growth were:
- Professional & Business Services (31,500 jobs or 5.5% growth)
- Trade, Transportation & Utilities (23,300 jobs or 3.2% growth)
- Leisure & Hospitality (18,200 jobs or 4.9% growth)
Further growth is predicted for the next few years with more jobs continuing to be added. Berkadia predicts that, “Employers are projected to add 114,100 new workers to payrolls this year, a 3.1% year-over-year increase.”
DFW Commercial Property Management Submarkets Where We Work
DFW is divided into several commercial property management submarkets, each with their own character. Below is a review of some of these submarkets where we offer our commercial property management services:
- Downtown Dallas CBD — Revitalized and ready for business, the CBD is the center of Dallas. There are 30 MSF of multi-tenant commercial office space and 20 MSF of Class A office space in the CBD. This all needs to be managed by a credible commercial property management firm. This submarket hosts some of the Lone Star State’s largest law firms along with many of the top-ranked and largest companies in Northern Texas.
- Central Expressway — This submarket north of Dallas CBD has numerous Class A and B office buildings and others under construction. With stable vacancy rates and slightly rising rents, the Central Expressway is ideal for clients who face higher rents in areas like Uptown and Preston.
- Uptown/Turtle Creek — This increasingly popular submarket is directly north of Dallas CBD. There are approximately 11 MSF of multi-tenant office space, 87% of which is Class A.
- Preston Center — Continuing north of Uptown/Turtle Creek, this popular submarket has seen rental rates and vacancies rise over the past few years.
- LBJ — With almost 20 MSF of rentable space, this corridor along a 37-mile-long partial loop of I-635 has made a comeback after several years of decline. This is especially true of the office sector.
- Las Colinas/ DFW Airport — North of Mid-Cities and northeast of Dallas CBD, this area has benefited from the completion of new projects with millions of square feet of space. There is now over 30 MSF of rentable space in the Las Colinas/ DFW Airport submarket
- Richardson/ Plano / Allen / McKinney — North of LBJ Freeway, this submarket has experienced an influx of high profile tenants, including Toyota, USA. The automaker’s 2015 arrival in Plano along with State Farm’s relocation to Richardson have raised the submarkets profile. In response, multifamily developers have added over one-fifth of the Metroplex’s 24,411 new apartments.
- Far North Dallas — Beyond the LBJ corridor, this submarket has seen some of the strongest growth in the entire Metroplex. Far North has the highest concentration of new construction in the DFW with new projects in the pipeline consisting of millions of square feet. Right now, Far North Dallas has 42 MSF of rentable space.
- South Dallas — This area is ideal for industrial, transportation, and logistics. It has abundant land at reasonable prices and is situated near several major transportation arteries. More recently, smaller development projects have cropped up in South Dallas.
- Mid-Cities — In recent years, Mid-Cities has been one of the least active submarkets. This suburban area between Dallas and Fort Worth has cities like Arlington, Irving, and Grand Prairie. Overall, Mid-Cities has experienced higher vacancy rates than other submarkets, making it attractive to tenants searching for commercial office space.
- Arlington / Mansfield — In spite of the slow growth of the Mid-Cities over the past couple of years, this area has seen gains. At the end of Q2 2017, Arlington / Mansfield led all of DFW in quarterly direct net absorption gains.
- Fort Worth CBD — The heart of ‘Cowtown’ lies 30 miles west of Dallas CBD. It has most of Fort Worth’s tall buildings. Despite some setbacks, Fort Worth CBD is poised for new Class A tenants. In 2018 the completion of the $115 million Frost Tower will add inventory. In addition, Fort Worth CBD has seven hotels planned or under construction.
- South Fort Worth — A desirable area for business, this submarket has one of DFW’s highest occupancy rates. Also, South Fort Worth has reported a 9.1% increase in annual Class A rent, one of the Metroplex’s largest increases.
- North/ NE Fort Worth — Elevated vacancy rates make this submarket attractive to tenants seeking office, retail, and commercial spaces around Fort Worth.
Let GreenEfficient® Handle Your Commercial Property Management Needs
GreenEfficient® can manage your office building or medical office building. We provide janitorial services, elevator services, and facility maintenance services throughout the Dallas submarkets. Learn more about our commercial real estate services in Dallas and all of tbe DFW Metroplex by reading: Dallas-Area Commercial Office Brokers or Dallas Commercial Office Leasing.