These notes from the radio interview so they are cryptic, but the information is very insightful. Don’t stop now. Read on…
Houston Real Estate….Houston’s Big Deal List is 85% energy companies.
Houston has 6,300,000 SF in subleases as companies downsizing. Currently, over 5,000 energy firms call Houston home.
Dallas-Fort Worth energy deals...In contrast, DFW’s largest energy company leases in last quarter were Inlink 160,000 SF and Trinity Energy 45,000 SF lease in Fort Worth.
DFW Real Estate….Occupancy and rents increase… historical highs…with rates as high $50 PSF and an average $21 PSF. The low DFW unemployment rate of 4.8% last quarter is attracting new companies to relocate to DFW.
Dallas is hub for insurance companies…Insurance companies are taking millions of SF. New relocations include Liberty Mutual, GEICO, and State Farm.
The growing trend is toward mixed use. Currently DFW has 7,600,000 SF is under construction or being rehabbed.
Frisco’s $5 billion Mile…Frisco has 1 mile on tollway with $5 billion in new construction in four big projects. Included are the Dallas Cowboys headquarters with 180,000 SF of retail and restaurants. The Gate is being developed on 42-acre site and is projected to total cost of $700,000,000. This project includes residential, retail, hotel, restaurants, and office. Foreign capital is coming to Frisco including Invest Group Overseas Dubai money for The Gate project. Watch the video at https://www.youtube.com/watch?v=wHInW3-CnXk
Granite is building 5th tower at 121 & tollway as first 4 buildings nearly full.
In conclusion... Dallas-Fort Worth’s diversified economy is blunting the impact of the energy implosion being felt in Houston. If you are inclined to venture into high yield cash flow projects, drop me a note.