Gone To Texas: Headquarter Relocations And Expansions Are Transforming The Dallas-Fort Worth Economy
The North Texas region is a hot spot for economic activity. Nearly every week an announcement is made in the media that another company has selected the Dallas-Fort Worth (DFW) area as their new home. The sheer number of headquarter relocations and other corporate expansion projects underway are transforming the local commercial real estate landscape. Once quiet suburban locales are now bustling with activity, and former agricultural tracts are now being master-planned to accommodate large corporate campuses.
The limited supply of inventory and the growing need for space has developers scrambling to meet demand. Office construction activity is at its highest level since the late 1990s with over 8.8 million square feet (msf) of new space currently being built. Nearly 5.2 msf are build-to-suit projects such as Toyota, State Farm, 7-Eleven, Raytheon, Liberty Mutual, and FedEx. Speculative projects make up the remaining 3.6 msf of which 25% is already pre-leased.