One of the biggest stories of the last decade in North Texas commercial real estate is the remarkable growth of the Legacy/Frisco region, north of State Highway 190. In 2006, the submarket contained about 12.8 million square feet of office space. By the end of 2016, that number had nearly doubled, to 22.4 million square feet.
Back in 2006, gross lease rates averaged around $23 per square foot, where it hovered for about six years. The market then converted to a triple net structure, with the newer buildings quoting rates in the mid- to upper-$20s, triple net. Currently, the average gross rental rate, net of electric, is more than $33 per square foot.
“It’s no secret that Legacy/Frisco is the fastest-growing submarket in the region,” says Chris Taylor, executive managing director in Cushman & Wakefield’s Dallas-Fort Worth office. “In fact, it has captured more than 20 percent of the overall demand in the last six years.”
That demand has been fueled by the submarket’s rapidly growing workforce. “Companies are after employees, and employees are after good jobs. Those two things have created a continually evolving cycle of expansion,” Taylor says. “It’s happening across DFW, but Legacy/Frisco has been one of the biggest beneficiaries in attracting the large corporate relocations.”
Plano, for example, won a 2 million-square-foot North American headquarters from Toyota Motor, along with huge campuses for JPMorgan Chase, Liberty Mutual, Fannie Mae, and FedEx Office. Frisco recently saw the opening of The Star, the expansive mixed-use development anchored by a new headquarters and practice facility for the Dallas Cowboys.
One of the newest developments in the submarket is Frisco Station, a 242-acre mixed-use project off the Dallas North Tollway between Warren Parkway and Lebanon Road. Immediately adjacent to The Star, it offers walkability and a robust base of amenities. Plans call for a health and wellness campus, urban-style residences, and The Hub, a retail, restaurant, and entertainment base.
Construction has already begun on the first phase of The Offices at Frisco Station, a seven-story, 228,000-square-foot facility. It’s the first of five office buildings in The Offices component of the overall Frisco Station development, and is scheduled for completion in August 2017.