Dallas, a major inland port located in North Texas, plays a vital role in the economy of the Southeastern United States and the country as a whole. The city’s mid-continent location makes its reachable within four hours by air travel from major North American markets, including Toronto, New York, Los Angeles and Mexico City. As the fourth-largest metropolitan region in the U.S., the Dallas-Fort Worth area benefits from a large population base approaching 7 million; a highly-educated, diverse labor pool; a robust and resilient economy; and innovative industries featuring the latest technologies. The Dallas-Fort Worth region also contains the third-highest concentration of Fortune 500 companies in the U.S. and serves as the corporate headquarters for such market leaders as Exxon-Mobil Corp., AT&T Inc., American Airlines Inc., J.C. Penney Co. Inc., Kimberley-Clark Corp., and Fluor Corp. Major industries operating in the area include: energy, aerospace, banking, telecommunications, computer technology, healthcare and medical research, transportation and logistics.
Founded in 1841 and incorporated as a city in 1856, Dallas serves as an international industrial gateway. Its internationally-renowned transportation infrastructure includes the world’s third-largest airport; another industrial airport that ranks as the first of its kind anywhere on the globe; major rail links; and major highway links to the rest of the continent. Accordingly, the Dallas-Fort Worth commercial real estate market embodies many of the region’s excellent features and strengths. The office, retail and industrial sectors rank among the largest in the U.S., attracting billions of dollars worth of international investment from BRIC countries (Brazil, Russia, India and China) and other regions of the world.
The Dallas-Fort Worth market comprises more than 226 million square feet of office space. Office product ranges from large multi-tenant buildings in central business districts to suburban office parks. The largest office occupiers include banking, energy, aerospace, and telecommunications firms. Several Fortune 500 companies maintain their corporate headquarters in the region, taking up large blocks of space in downtown locales while also boosting demand in outlying areas.
The Dallas-Fort Worth retail development sector is one of the most vibrant in the United States. The region contains almost numerous shopping centers or malls that each have more than one million square feet of space. Most major national and international brands have developed a presence here as ongoing development, high-quality product in the most-populous areas, and availability of land in surrounding suburbs helps balance supply and demand.
Several factors benefit the Dallas-Fort Worth industrial market – transportation infrastructure being an obvious example. Dallas benefits from having the world’s first industrial airport, which transports cargo only, and another airport that ranks as the third-largest in the U.S., two large intermodal yards and major rail and highway links. Because of the region’s proximity to other major North American markets, long-haul and short-haul trucking, warehousing and logistics firms are extremely active, along with energy-services companies. Many of these companies are expected to expand in coming years. The Great Southwest and Alliance Texas industrial parks alone account for more than 110 million square feet of industrial space.
The Dallas-Fort Worth investment real estate market is enhanced by several state and local incentive programs that include tax abatements, long-term tax exemptions and free trade zones. Institutional investors – including pension funds, private-equity funds, REITs and public companies – are attracted to the Dallas region because of its large market size, high income and employment levels, numerous trophy-class properties, and wide range of investment-grade assets.
Avison Young launched its Dallas office in July 2011, reaching another milestone in the company’s strategic U.S. expansion program. Together with the firm’s Houston office, the Dallas location gives Avison Young a strong Texas presence and a foothold in the U.S. Southeast. Dallas-area brokers work closely with colleagues in Houston, Calgary and Edmonton on energy-related projects while also partnering with other Avison Young offices across Canada and the U.S. on diverse office, retail, industrial and investment real estate sale and lease transactions.