By Joel Kotkin and Michael Shires
Since the U.S. economy imploded in 2008, there’s been a steady shift in leadership in job growth among our major metropolitan areas. In the earliest years, the cities that did the best were those on the East Coast that hosted the two prime beneficiaries of Washington’s resuscitation efforts, the financial industry and the federal bureaucracy. Then the baton was passed to metro areas riding the boom in the energy sector, which, if not totally dead in its tracks, is clearly weaker.
Right now, job creation momentum is the strongest in tech-oriented metropolises and Sun Belt cities with lower costs, particularly the still robust economies of Texas.
Topping our annual ranking of the best big cities for jobs are the main metro areas of Silicon Valley: the San Francisco-Redwood City-South San Francisco Metropolitan Division, followed by San Jose-Sunnyvale-Santa Clara, swapping their positions from last year.
Our rankings are based on short-, medium- and long-term job creation, going back to 2003, and factor in momentum — whether growth is slowing or accelerating. We have compiled separate rankings for America’s 70 largest metropolitan statistical areas (those with nonfarm employment over 450,000), which are our focus this week, as well as medium-size metro areas (between 150,000 and 450,000 nonfarm jobs) and small ones (less than 150,000 nonfarm jobs) in order to make the comparisons more relevant to each category. (For a detailed description of our methodology, click here.)
Changemakers at three DFW firms are transforming the business—and gaining market share.
Running a commercial real estate firm in Dallas-Fort Worth is not for the faint of heart. Firms here are at the top of their game, and the competition is fierce. But in a market as big and active as North Texas, there are bountiful opportunities, too. “So much of it comes down to hustle,” says Moody Younger of Younger Partners. “If you have good people and work hard and are honest with clients, you’ll get your share.”
Younger and Kathy Permenter, co-founders of Younger Partners, are part of a new leadership class in Dallas real estate, a group that also includes David Pinsel at Colliers International and Steve Everbach at Cushman & Wakefield of Texas Inc. All have been in their current positions for about two years. Younger and Permenter run their own shop; Pinsel and Everbach were both brought in to turn around the DFW offices of their respective companies. All have proven they have the mettle it takes to compete. Here are some of their strategies.
By Candace Carlisle, Staff Writer
It’s been more than a decade since Lucy Billingsley initially spotted the large parcel of land near Interstate 635, once owned by Dallas-based TXU Energy, but she still remembers seeing the property and thinking it would make an excellent plot to develop.
The longtime Dallas developer kept in touch with the energy company, hoping to land the 1,000-acre tract, and piece-by-piece, she did.
“It’s so rare to find 1,000 acres of land that’s infill property and near water,” said Billingsley, a partner at Dallas-based Billingsley Co. “In Dallas, you don’t find it.”
Now, Billingsley has jump-started the $3.5 billion master-planned, mixed-use development at the northeast corner of Belt Line Road and Interstate 635 calledCypress Waters, which recently landed the headquarters for Irving-based Cheddar’s Casual Cafe.
“It’s a long-term development that is launching with a lot of momentum,” Billingsley said. “It’s really been thrilling and the speed of development is really exciting.”
Real estate sources say they expectCypress Waters to land some big corporate tenants in the market. The developer has three office buildings underway to attract some of those tenants, as well as a corporate campus park.
Plans for the massive project include a corporate campus of 4.5 million square feet of office space, 10,000 apartments and townhomes, 400,000 square feet of retail space and three one-acre parks.
The project’s proximity to Dallas/Fort Worth International Airport, as well as the rest of North Texas, is one of the reasons why corporate America is taking notice of Cypress Waters, saidMarijke Lantz, a senior vice president at Billingsley Co.
“A company can pull employees together throughout the Metroplex,” Lantz said.
Cheddar’s ability to expand its North Texas headquarters at Cypress Waters drove the restaurant chain’s decision to set up shop in the master-planned community, said Rick Payne, a Cheddar’s senior vice president.
As the restaurant expands, Cheddar’s plans to hire more corporate employees to support the operations in the chain’s 150 restaurants throughout the United States.
Along with Billingsley’s development plans, the city of Coppell is readying to start lowering a 700-acre lake on the site to 362 acres. The downsized lake will be used in the master-planned community, which will include a five-mile nature trail around the lake, a park setting reminiscent of White Rock Lake in Dallas, as well as lakeside dining options.
Billingsley said the firm’s in the midst of plans to develop alongside the water’s edge.
“We have the opportunity to create a space that’s quite special,” she said.
One recent Saturday I went on what has become an annual hog hunt with NAI Robert Lynn broker Sam Hocker. Sam introduced me to this sport a few years ago, and I have been hooked on it ever since.
Hog hunting with Sam on the Red River is not for the faint of heart. We hunt the hogs on mules, with dogs. Your only weapon is a Bowie knife, and you only have one knife, so you are not throwing it. This is brutal “hand-to-hog” combat.
The hogs fight back and sometimes win, by injuring the dogs, or you, and getting away. You have to keep your wits about you to avoid serious injury. The goal is to “bring home some bacon”, or a nice boar’s head as a trophy.
Fortunately, we did both on that Saturday.
How does this relate to commercial real estate brokerage?
By Candace Carlisle, Staff Writer
Dallas-based development firm Billingsley Co. plans to build the new Irving corporate headquarters for Cheddar’s Casual Cafe, which marks the beginning of a number of construction projects at Cypress Waters.
Cypress Waters is Billingsley’s 1,000-acre master-planned development underway in Dallas and Irving, which has been developing the corporate campus portion of the project.
The developer will start construction on the single-story, 31,450-square-foot build-to-suit project in May at 8951 Cypress WatersBlvd. near Ranch Trail and Interstate 635 in Irving. Cheddar’s will have the ability to expand the building for future growth.
“As Cheddar’s continues to expand nationwide and our support center increases to support 150 restaurants in 28 states, it was clear we needed a headquarters that could accommodate our growing team,” Rick Payne, a Cheddar’s senior vice president, said in a written statement.
“Our new space at Cypress Waters will offer an open, collaborative design flow, a test kitchen for research and development and a training wing,” he said.
The new Cheddar’s headquarters will be Cypress Waters‘ first corporate office tenant.
Restaurant chain Cheddar’s Casual Cafe is moving its headquarters to developer Billingsley Co’s new Cypress Waters office park.
The company will relocate to a new 31,450 square foot office project that will start in late May at on Ranch Trail and Interstate 635.
All the stars aligned for both the buyer, Caddo Holdings, and the seller, Granite Properties, to get what they wanted out of the sale of the 261k SF Preston Plaza. Full article.
A new year, a new look: The vacant, 64k SF 1400 Corporate Dr in Irving has been snatched up by Triad Real Estate Consulting, which plans to upgrading the lobby and common areas, among other renovations, we learned exclusively from the seller’s rep. (This is your chance to put a bowling alley in the basement… just sayin’.)
Younger Partners’ Dustin Volz and Zane Marcell (whom we snapped over lunch) repped the seller, an out-of-state investment group. Sales price was not disclosed. Dustin says he’s continuing to see a major price recovery, especially in the Class-B and C assets over the last nine to 12 months in DFW. Things have particularly picked up since March. (Everyone got through St. Patty’s Day alive and decided to buckle down.) A few reasons: the shortage of product, a very aggressive leasing market, and out-of-state buyers back in full force, helping bump up prices.
Billingsley SVP investments and build-to-suits Marijke Lantz (far right, with Pegasus Ablon asset management VP Mark Roppolo and Younger Partners partner Moody Younger) says Billingsley’s 1,000-acre Cypress Waters project at LBJ and Belt Line opened 675 multifamily units (that were pre-leased) and has three buildings under construction, one with a HQ company, one spec, and activity is so strong that the firm is following up with another spec building. Her advice to people entering real estate world: Learn new things and learn all sides of the business to help your clients. Having a good reputation for being ethical and moral will benefit you throughout your career.
Billingsley Company, one of Dallas’ most active and well-regarded real estate development companies, is making progress on construction of 6111 West Plano Parkway in International Business Park. Complete article.
Men’s fashion retailer J. Hilburn has rented space in a North Dallas office tower for its home office. The company leased 26,000 square feet in the Park Central 3 building on LBJ Freeway.
Brant Landry of E. Smith Realty Partners negotiated the lease with Nora Hogan, Robert Deptula and Natalie Snyder of Transwestern and Kathy Permenter and Sean Dalton with Younger Partners. J. Hilburn is currently located at 2601 W. Mockingbird Lane in Dallas.
“Park Central 3 is allowing J. Hilburn to take the next step in our company growth plan,” said co-founder Veeral Rathod. “Our new corporate headquarters provides a cohesive work environment and an efficient layout.” Complete article.
Dallas-based development firm Billingsley Co. will begin construction on its latest office project in Plano by the end of the month.
Once developed, the 180,000-square-foot, three-story building at 6111 W. Plano Pkwy. will serve as the regional offices for Woodland Hills, Calif.-based online marketing firm ReachLocal Inc., which currently operates from the International Business Park.
Younger Partners has tapped Carter Crow to help the company grow its industrial real estate services business. He’ll bring with him 1.2 million square feet of leasing assignments to the company, including Billingsley Co.’s Turnpike portfolio. Full article
According to the final estimate from the Bureau of Economic Analysis (BEA), real gross domestic product (GDP) in the U.S. grew at an annualized rate of 1.8 percent during the first quarter of 2013, a downward revision from the prior estimate of 2.4 percent annual growth. In comparison, real GDP growth was was a very weak 0.4 percent in the fourth quarter of 2012. Growth in real GDP during the first quarter of 2013 was tempered by government spending which contracted at an 8.7 percent annual rate and consumer spending which grew at a tepid 2.4 percent annual rate.
The Federal Reserve Bank of Dallas expects modest to moderate economic growth through the remainder of the year as employment growth is projected to accelerate to an annualized rate between 1.8 and 2.2 percent during the second half of 2013, while inflation is forecast in the range of 1.5 to 2 percent over the next year. As of June 2013, the Federal Reserve Board Members and Federal Reserve Bank Presidents projected the change in real GDP for 2013 would be in the range of 2.0 to 2.6 percent.
Fortunately, we live in Texas which accounted for 9 percent of the the total U.S. GDP in 2012 and should continue to garner a large portion of future gains in total U.S. economic growth. Although the largest share of Texas’ annual growth in 2012 GDP (1.38 percent) occurred in the mining, logging and construction sector resulting from the boom in energy-related businesses, the Texas economy is diversified with a highly educated workforce and relatively low business costs that position the state for sustained economic expansion. The Texas Comptroller of Public Accounts expects Texas to achieve 3.4 percent annual growth in GDP in 2013, much stronger than the 2 to 2.6 percent growth anticipated for the U.S., led by gains in the Professional and Business Services, Trade, Transportation and Utilities, and Manufacturing sectors.
All the world’s a stage, but if Texas were a country where would it rank on the global stage? One measure of comparison is the Gross Domestic Product (GDP) or total output of goods and services produced by a country or, in this case, Texas. According to statistics just released by the Bureau of Economic Analysis, the GDP produced by Texas in 2012 totaled $1,397,369 million and would rank 13th in the world, behind Canada and Spain but ahead of Australia and Mexico.