The Dallas-Fort Worth metropolitan area is one of the largest metros in the nation. With almost 7.4 million residents, the region grows daily — almost 400 people move to DFW every day. A region this size requires exceptionally talented Dallas commercial real estate brokers to make the deals necessary to keep the economy growing.
Referred to by locals as DFW, or The Metroplex, it is made up of Dallas and Fort Worth, but also includes Texas cities like Arlington, Plano, Irving, Frisco, and Carrollton.
Dallas is a city of 1.2 million while Fort Worth has over 800,000 residents. Several DFW cities have more than 200,000 residents while a number have over 100,000 residents.
Covering 13 Northern Texas counties, the Metroplex is Texas’s largest metro. It is also the nation’s fourth-largest metro area and the largest inland metro.
Dallas-Fort Worth is Open for Business
Texas is one of the top states for doing business. And DFW is one of the best places to do business in the Lone Star State. The Metroplex ranks second in the nation in job growth, behind only New York/ Newark, New Jersey for metros with more than 1 million residents. DFW also hosts 22 Fortune 500 companies, putting it 4th in the nation.
North Texas has a diversified economy and lower costs of doing business than many other parts of the nation. The top industries are transportation, high-tech, telecommunications, aerospace/defense, healthcare, financial services, and retail.
David Walters, Senior Vice President with Occupier Advisory and Transaction Services in the Fort Worth office, says DFW is one of the top relocation destinations for people and companies. He also believes that favorable tax laws and business regulations will continue to produce growth at a decent rate in the Metroplex.
Types of Commercial Real Estate
After previously being second for square-footage-under-construction, DWF construction shrank after almost 8.5 MSF of rentable commercial office space was delivered in the past two years. Yet DFW still has more commercial real estate in the pipeline than any other part of the country making it the nation’s fourth most active market. The Dallas commercial real estate brokers marketplace is booming.
Throughout DFW, commercial real estate brokers work with a variety of property types, including office buildings, medical office buildings, land sales, and storage units.
- Office Buildings — Many Metroplex submarkets have both Class A and Class B office buildings. Over the past few years, a renaissance in Dallas’ CBD has attracted more tenants. For example, law firm Simon Greenstone Panatier P.C. recently signed a 7-year lease for a 24K SF lease at the Renaissance Tower.
- Medical Office Buildings — With 10,000 baby boomers reaching 65 every single day, medical facilities could be the future of DFW commercial real estate, even more so than office buildings. This CRE niche requires special infrastructure to accommodate modern medical technology, increased connectivity, and numerous medical devices.
- Land Sales — Growth in cities like New York, Los Angeles, San Francisco, and Chicago are limited by features like lakes, oceans, rivers, and mountains. In contrast, the Metroplex can expand with less consideration for geography. On top of that, Former Dallas Mayor Tom Leppert says, “Dallas has more available land in the urban core than any other city in the country.” South Dallas in particular has an abundance of undeveloped land. More available land than almost any other American city presents great potential for land sales.
- Storage Units — Texas is considered the birthplace of modern self-storage. These days, one out of every 10 American households rents a storage unit. If properly vetted and researched based on population density, household income, and traffic counts, these facilities can be money-making businesses for investors in DFW.
Dallas Commercial Real Estate Broker Submarkets
From a commercial real estate perspective, Dallas and Fort Worth are broken down into various submarkets. Below are some of these along with details about activity in each:
- Downtown Dallas CBD — This submarket has some of the best rental growth and office leasing rates in central Dallas. It also has some of the longest average lease terms of any Metroplex submarket. Ideal for companies wanting to be in the heart of Dallas.
- South Dallas — An industrial area with abundant, reasonably-priced land and proximity to several major transportation arteries. Perfect for distribution, industrial, and logistics companies.
Richardson/ Plano / Allen / McKinney — A new hub of business in DFW, high profile relocations (Toyota’s US headquarters to Plano and State Farm to Richardson) have boosted this submarket and spurred growth and development.
- Central Expressway — Many existing Class A and B office spaces and others under construction, stable vacancy rates, and moderately rising rents offer a solid alternative to higher rents elsewhere in DFW.
- Far North Dallas — Having experienced some of the strongest growth, Far North also has the highest concentration of construction in the entire Metroplex. There are currently 42 MSF of rentable space in this submarket.
- Las Colinas/ DFW Airport — Millions of square feet of new projects have been completed in the past few years giving Las Colinas over 30 MSF of rentable space.
- LBJ — With almost 20 MSF of rentable space, LBJ has made a strong comeback in the office sector after several years of decline.
- Preston Center — A popular submarket with increasing rental rates and office vacancies.
Uptown/Turtle Creek — An increasingly popular submarket with 11 MSF of multi-tenant office space, much of which is Class A.
- Arlington / Mansfield — At the end of Q2 2017, this submarket led all DFW in quarterly direct net absorption gains. due to a new Class A project and several large Class B move-ins.
- Stemmons Freeway — This submarket has a good number of office towers and hotels.
- Mid-Cities — One of the least active DFW submarkets recently. Higher vacancy rates have made it ideal for new tenants looking for office space.
- Fort Worth CBD — The heart of ‘Cowtown’ is still the prime location in Fort Worth. New projects in the pipeline have the CBD primed for even more new Class A tenants. And later this year, the 27-mile TEXRail will connect downtown Fort Worth to DFW Airport making it easier for business travelers to reach the CBD.
- South Fort Worth — A desirable place to do business with one of DFW’s highest occupancy rates.
- North/ NE Fort Worth — Elevated vacancy rates make it attractive to Fort Worth tenants.
GreenEfficient®’s Metroplex Commercial Real Estate Brokers
GreenEfficient® offers a variety of commercial real estate brokers services throughout the Dallas-Fort. Worth Metroplex. Learn more about our commercial real estate services in Dallas and all of DFW by reading: Dallas Commercial Office Leasing or Dallas-Ft. Worth Metroplex Commercial Property Management Services.