Dallas Fort-Worth has recently experienced explosive population growth that is expected to continue for the foreseeable future. The annual population growth of DFW was beaten by only one city nationally from July 1, 2014 – July 1, 2015, where 144,704 residents were added. 7.3 million total residents are estimated as of January 1, 2018.
Moody’s projects that DFW will lead the nation in population growth over the next five years, with estimates in excess of 750,000 new residents.
There is significant opportunity to buy, improve, and re-lease existing buildings for significantly less investment than new construction.
Given supply/demand dynamics, construction costs are at record levels for commercial construction. Current new construction costs for Class A buildings along the North Dallas Tollway are in the $300-$450/PSF.
Corporate relocations and other job/population growth is leading to increased rental rates and higher occupancies, particularly along the North Dallas Tollway.
Toyota Motors North American headquarters has relocated from California to 100 acre site in “Upper Far North Dallas.” 5000 initial jobs have already come to the market in 2017-2018.
Liberty Mutual is building a large service center in Legacy West near the Toyota Headquarters, and is expecting to employ 4000 employees.