North Central Texas Development News 2nd Quarter 2006 Volume 3 Number 2 Summary The Research and Information Services Department of the North Central Texas Council of Governments (NCTCOG) tracks major developments for the 16-county region as part of the Development Monitoring Program. The second quarter summary is an overview of office, retail, and industrial projects over 80,000 square feet (sq ft) and hotels over 80 rooms that were announced, began construction, or were completed between April 1 and June 30, 2006. Also included is a summary of quarterly activity by type and location within the region. At the end of the second quarter, 361 commercial developments were being tracked. In addition to commercial developments, NCTCOG s website includes data on residential developments, schools, and institutions (hospitals, government, etc.). Go to the Development Monitoring page at http://development.nctcog.org/ to access a tool that creates maps and reports by address, zip code and city, in addition to past issues of Development News. Development Monitoring information can also be mapped at http://www.dfwmaps.com/devmon. Industrial The biggest development news of the second quarter was the completion of the Texas Instruments RFAB plant at 300 W. Renner Rd. in Richardson. The 1.1 million sqft plant will eventually employ 1000 people. Three projects were completed in Dallas County during the quarter. Valley View Business Center Buildings 1 and 2, which are 117,200 sqft and 91,674 sqft respectively, were completed at the northwest corner or Valley View and FAA Blvd. in Irving. Proterra Properties was the developer. Bandera Ventures completed a new 135,231 sqft facility for Advo Inc., a direct mail media company, at 600 Cockrell Hill Rd. in Pinnacle Park. And in DeSoto, DW Distribution completed a 180,000 sqft expansion (not pictured) at 1200 E Centre Park Boulevard. Two projects were completed in Tarrant 2nd Quarter Snapshot Completed Projects Office Three Legacy Town Center 2600 Network T-Mobile Lakeside Office Center Bldg. 1 Epsilon Inc. Retail Wal-Mart Supercenters (3) Star Creek Retail Northpark Center Home Depot Sam s Club Industrial Texas Instruments Riverpark 500 Waxahachie Distribution Center Mercantile Dist. Center 11,12 & 13 Valley View Business Center 1 & 2 DW Distribution VEKA Advo Inc. Motivating Graphics Landmark Fabrication Began Construction Office Medical Center at Calloway Creek Methodist Medical Office Retail Uptown Village at Cedar Hill Robertson s Creek Vineyard Village Shops at Highland Village SuperTarget (2) Pinnacle Point Industrial Grand Lakes I Duke Intermodal I Skyline Trade Center Bldg. C Lakeside Ranch Business Park 30 & 31 Essilor Laboratories Allied Electronics Ten Eleven N. 28th St. DFW Trade Center Bldg. H DFW Logistics Center Freeport Corporate Center IV The Texas Instruments plant at 300 W. Renner Rd. in Richardson will eventually employ 1000 people. (Cont d on page 7) Page 1
Riverpark 500 at 3101 High River Dr. in Fort Worth contains 320,000 sqft. County. Seefried Properties completed Riverpark 500 at 3101 High River Road in far east Fort Worth. JanPak is leasing 170,000 sqft of the building. Also completed in Fort Worth was a three-building project on Mercantile Dr. consisting of the 137,500 sqft Mercantile Distribution Center 11 and two 121,700 sqft buildings (Bldgs. 12 and 13). Mercantile Partners was the developer and Bob Moore Construction was the contractor. The final four projects completed were in the surrounding counties. First Industrial Realty Trust developed the 201,500 sqft Waxahachie Distribution Center at 2265 N Hwy. 77 in Ellis County. VEKA Inc., a manufacturer of extruded vinyl profiles for windows and doors, opened a new facility in Kaufman at the northeast corner of Apache Trail and Metrocrest Way. In Wise County, Landmark Fabrication completed the first building in the 400-acre Decatur Landmark Industrial Park at the intersection of Hwy. 81/287 and Bus. Hwy. 81. The company, which builds composite elevated water storage tanks, will eventually employ 50 people at the plant. And in Denton County, Motivating Graphics completed an 80,000 sqft expansion (not pictured) of their facility at 3100 Eagle Parkway in north Fort Worth. Construction began on eleven industrial projects totaling over 3.4 million sq ft. Seven of the projects are in Dallas County. The largest project is the 752,000 sqft Grand Lakes I by Duke Realty, located at 4003 Gifford St. in Grand Prairie. Duke Realty has also started work on Duke Intermodal I at 801 E. Wintergreen across from the Union Pacific Intermodal Facility. That building is 624,000 sqft. In Mesquite, work has begun on Skyline Trade Center Bldg. C, a 492,000 sqft building at the southwest corner of Skyline and Peachtree. IDI is the developer of the project, which will eventually include four buildings. Work on Bldg. A will wrap up in the third quarter. IDI is also developing DFW Trade Center Bldg H at 2901 SH 121 in Grapevine. The 170,000 sqft building will be the last in the development. Bandera Ventures and Crow Holdings are developing a 205,000 sqft project near DFW Airport called Ten Eleven N. 28 th Avenue. Close by, Prologis has begun work on the 114,600 sqft Freeport Corporate Center IV at 9250 Royal Lane. The final project underway in Dallas County is a new 270,000 sqft headquarters for Essilor Laboratories, a manufacturer of optical lenses, at 13515 N Stemmons Frwy. in Farmers Branch. In Tarrant County, work has begun on a new 365,000 facility for Allied Electronics at 7101 S. Jack Newell Blvd. in Fort Worth and Waxahachie Distribution Center was developed by First Industrial Realty. on DFW Logistics Center, a 113,640 sqft project by AMB Property Corp. at the northwest corner of Airfield and Minters Chapel in Grapevine. Finally, LNR Properties has started construction in Denton County on Lakeside Ranch Valley View Business Center Building 1 is one of two in the project. Mercantile Distribution Center 11 in Fort Worth is 137,500 sqft. Page 2
VEKA Inc. moved into a new 100,000 sqft facility in Kaufman. Landmark Fabrication will eventually employ 50 people in Decatur. Business Park Bldgs. 30 and 31, which are 66,000 and 277,000 sqft respectively. That development is at the southeast corner of Lakeside Pkwy. and Gerault Rd. in Flower Mound. One project was announced during the quarter. Duke Realty will construct a 527,000 sqft building called DFW Airport I near the airport. The new 135,231 sqft facility for Advo Inc. at 600 Cockrell Hill Rd. in Pinnacle Park. Retail Three Wal-Mart Supercenters comprise over half of the 1.2 million sqft of retail completed during the quarter. The stores are located at 951 W Beltline in DeSoto, at 9500 Clifford in Fort Worth, and in the Hawk s Creek Town Center at 6770 Westworth Blvd. in Westworth Village. A 155,000 sq ft Sam s Club opened adjacent to the Westworth Village store. Both of those stores relocated from White Settlement locations. An additional 250,000 sqft of retail and 90,000 sqft of office space are planned for the Town Center. An expansion at Northpark Center in Dallas added 110 stores in 260,000 sqft and an AMC theater. Nordstrom opened a store there last November and Barneys New York will open a store in the Lord and Taylor space in the fall. With the two-year expansion completed, the mall now boasts 2,351,600 sqft of space and it is now the largest mall in Texas. In Allen, a 126,000 sqft Lifetime Fitness center opened in the Star Creek development at 971 SH 121. Across the street, a new 16- screen Cinemark theater also opened. And in Denton, Home Depot relocated to a new 117,995 sqft store in Denton Towne Crossing at the southwest corner of Loop 288 and Brinker Road. A SuperTarget will open in the center in the third quarter. Construction began on seven projects totaling almost 2.9 million sq ft. The largest project is Uptown Village at Cedar Hill, which is located southeast of Pleasant Run and FM 1382. The Cinemark Allen 16 at 921 SH 121. Lifetime Fitness opened a 126,000 sqft health center in Allen. Page 3
Special Products & Mfg. relocated into a new facility in Rockwall. Home Depot relocated to a new store at Denton Towne Crossing. Sam s Club relocated from White Settlement to Westworth Village. The 800,000 sqft lifestyle center is scheduled to open March 2008 and tenants will include Dillard s and Barnes and Noble. Two projects are underway near the intersection of FM 2499 and FM 407 in Highland Village. Regency Centers is building the 375,951 sqft Shops of Highland Village at the northwest corner of the intersection and Direct Development is building Robertson s Creek to the south of the intersection at Dixon Lane in Flower Mound. That project will total 400,000 sqft. Construction began in the fourth quarter of last year on the 450,000 sqft Marketplace at Highland Village at the northeast corner of the intersection. Construction began on two SuperTargets during the quarter. In Grand Prairie, a SuperTarget will anchor a 582,000 sqft center at the southeast corner of Hwy. 360 and Camp Wisdom. The other store is under construction in Rowlett on Lakeview Parkway east of Rowlett Road. In Euless, a Lowe s Home Improvement will anchor Vineyard Village at the southeast corner of SH 121 and Glade Road. Burk Collins is developing the 400,000 sqft center. Finally, Pinnacle Point is under construction at the northwest corner of I-30 and Cockrell Hill Rd. across from the Pinnacle Park development. The site plan calls for 100,000 sqft of retail on the corner, a 500,000 sqft industrial building, and either a 220,000 sqft warehouse or 136,000 sqft of retail on the remaining lot. A mix of retail and industrial buildings will also be constructed on the northeast corner of the intersection. Holt Lunsford is the developer. The Northpark Center expansion includes an AMC Theater and brings the mall to 2,351,600 sqft. One project was announced during the quarter. Lowe s Home Improvement purchased the former Coca- Cola building at 6011 Lemmon Ave. in Dallas and plans to clear the site for a new store. Wal-Mart opened Supercenters during the quarter in (left to right) Fort Worth, Westworth Village and DeSoto. Page 4
Three Legacy Town Center at 5801 Tennyson Parkway in Plano. Office Four office projects totaling 451,415 sqft were completed during the quarter. Duke Construction completed work on a new 125,000 sqft facility for T- Mobile at Warren Parkway and the Dallas North Tollway. T-Mobile also leases 103,000 sqft in an adjacent building and will eventually employ 1200 people at the new campus. Also completed in Frisco is 2600 Network, a new 150,000 sqft building in Hall Office Park. Just to the south, work was wrapping up on Three Legacy Town Center at 5801 Tennyson Pkwy. in Plano. CarrAmerica developed the 154,443 sqft building. Myers Crow completed another building in their Vista Ridge Business Park in Lewisville. Lakeside Office Center I at 2850 Lake Vista Dr. contains 101,415 sqft. In Irving, Epsilon Inc. moved 340 workers from Dallas offices to a new 75,000 sqft building at 4301 Regent Boulevard. Koll T-Mobile moved to a new campus in Frisco. 2600 Network is the latest addition to Hall Office Park in Frisco. was the developer. Construction has begun two medical office buildings. A new building underway at Methodist Medical Center Dallas on N. Beckley will contain 100,800 sqft and Medical Center at Calloway Creek, located between North Hills Hospital and the closed mall, will contain 80,000 sqft. Three office projects were announced during the quarter. The largest project is the 150,000 sqft One Allen Center, which is being developed by Duke Realty at the northwest corner of US 75 and Bethany Drive. Completion is scheduled for Sept. 2007. Next up is Heritage Commons II, a 120,000 sqft building at the northwest corner of I-35W and Legacy Crossing in Fort Worth. And finally, a 100,000 sqft medical office building is planned at the southwest corner of Great Southwest Pkwy. and Hospital Blvd. in Grand Prairie adjacent to the Renaissance Hospital renovation project. Mercantile Distribution Center III in Fort Worth was completed in June. Lakeside Office Center Bldg. 1 in Lewisville contains 101,415 sqft. Epsilon Inc. relocated 340 employees from Dallas to Irving. Page 5
This new La Quinta in Arlington will replace the existing hotel. Hotel The biggest hotel news of the quarter is the opening of the W Hotel and Residences at Victory Park in Dallas. The hotel has 252 rooms with 61 condos above. In Arlington, La Quinta opened a 178-room hotel on the site of their existing hotel at 825 N. Watson Road. The existing hotel will be razed to make room for ten acres of office and retail development. Also completed were an 86-room Hampton Inn & Suites at 2010 Civic Center Dr. adjacent to the 60,000 sqft Civic Center in Waxahachie and a 77- room Homewood Suites at 7800 Dulles near DFW Airport. Construction began on four hotels. Site work began at 1400 W. Hwy. 26 in Grapevine on the new Great Wolf Lodge. The 51-acre site was purchased from Trencor Inc. and the existing manufacturing facility has been demolished. The 404-room hotel, which will include a 98,000 sqft indoor entertainment area with a year-round waterpark, is scheduled to open Fall 2007. In Lewisville, a 161-room Hilton Garden Inn is under construction at the W Hotel Dallas held a grand opening celebration June 29. northwest corner of SH 121 and Lake Vista. A second Hilton Garden Inn with 110 rooms is under construction in Grapevine at 205 W. SH 114. And in Plano, Staybridge Suites is building a 112-unit hotel at the northeast corner of President George Bush Tollway and Coit Road. Three of the five hotels announced during the quarter will be in Mansfield at the southeast corner of Hwy. 287 and Debbie Lane. The hotels, which are planned within the next three years, are a Fairfield Inn and Suites, a Hampton Inn and Suites and a La Quinta. In Dallas, another hotel is planned for Victory Park. A 120-room Mandarin Oriental Hotel will be included in Victory Tower. Completion is scheduled for 2009. Construction will begin Summer 2007 on a 100-room Holiday Inn at SH 161 and Northgate Dr. in Irving. Homewood Suites opened a new hotel near DFW Airport. The new Hampton Inn and Suites in Waxahachie has 86 rooms. Page 6
Mixed-Use Two additions to existing mixed-use projects opened during the quarter. A 245,000 sqft expansion at Southlake Town Center includes a Harkins movie theater and a Barnes and Noble. A Hilton hotel is nearing completion as part of the expansion. Two new phases have been added to West Village in Dallas. Phase II at the northeast corner of Blackburn and Cole Ave includes 75 apartments over 18,000 sqft of retail. An additional 30,000 sqft or retail and 104 apartments have been added to Phase III at Lemmon and McKinney adjacent to Borders Bookstore and Chase Bank. West Village Phase III added 30k sq ft of retail and 104 apartments. Construction began on three mixed-use developments. Park Lane Place at the southeast corner of Park Lane and Central Expressway will eventually include 700,000 sqft of retail, apartments, and possibly a hotel, to be built around the existing office buildings. An 80,000 sqft Whole Foods is scheduled to open early next year. Also 2ndQuarter Snapshot (cont d from page 1) Announced Office One Allen Center Heritage Commons II Renaissance Hospital Medical Office Retail Lowe s Home Improvement Industrial DFW Airport I under construction in Dallas County is Broadstone Galleria at the northwest corner of Inwood Rd. and Galleria Dr. in Farmers Branch. The project will include 333 multi-family units over 40,000 sqft of street-level retail space. The third project mixed-use project underway is Venue at Hometown in North Richland Hills. The first phase will consist of seven buildings containing 55,000 sqft of ground-floor retail and 189 apartments. A 245,000 expansion at Southlake Town Square opened in April. Three mixed-use centers were announced. Denton Hillview will cover 412 acres at the intersection of I-35E and W. University. The development will include the Rayzor Ranch Town Center at the southeast corner of the intersection and a power center at the northeast corner. The open-air town center will contain retail, office and medical space, multi-family and single family units, a 30- acre campus for seniors and two hotels. The power center will include a Wal-Mart Supercenter and a Sam s Club. In Arlington, construction will begin early next year on the 70- acre Glorypark project, located between Ameriquest Field and the new Cowboys stadium. The first phase will include one million sqft of retail, 200,000 sqft of office, and 300 or more multi-family units. Completion is scheduled for Fall 2008. And in Fort Worth, construction will begin in the first quarter of 2007 on Museum Place at the northwest corner of University and Camp Bowie. The development will contain 160,000 sqft of retail, 80,000 sqft of office space, a hotel and multi-family units. West Village Phase II includes 75 apartments over 18k sqft of retail. Disclaimer These data have been collected through various sources including print and web media, real estate professionals, developers, Chambers of Commerce and City and Economic Development staffs. While we endeavor to provide timely and accurate information, we make no guarantees. The North Central Texas Council of Governments makes no warranty, express or implied. Use of the information is the sole responsibility of the user. Please contact Richard Schell, Research Associate, at 817-608-2387 with any comments or suggestions. Page 7
Quarterly Activity Summary Number of Projects Under Development at the End of the Quarter (Includes Conceptual, Announced and Under Construction) Square Footage of Construction That Began Each Quarter Number of Projects 120 100 80 60 40 20 104 96 88 80 75 75 32 28 110 106 71 35 113 107 97 98 63 62 44 38 Square feet (millions) 3.5 3 2.5 2 1.5 1 0.5 0 2nd05 3rd05 4th05 1st06 2nd06 Quarter 0 2nd05 3rd05 4th05 1st06 2nd06 Quarter Retail Industrial Office Mixed-Use Retail Office Industrial All Projects Under Development by Type (Includes Conceptual, Announced and Under Construction) Page 8