downtown dallas growth trajectory
TRANSCRIPT
dallas downtown rising 1
dallas downtown risingRetail is all about logical adjacencies. Over the past decade in Downtown Dallas, there’s been strong hotel and residential development, and finally the time has come to expand retail.
Downtown’s growth is off the charts. But, in recent years, purveyors have generally skirted the urban core, turning close-in neighborhoods like Uptown, Knox-Henderson and West Village into thriving shopping, dining and entertainment destinations.
With the exception of Neiman Marcus, a massively successful Downtown staple for a century, and a smattering of other big names, retail space has been hugely underdeveloped in the Main Street District, due to radius clauses and concerns about bifurcating the consumer base of stores in the nearby submarkets. Recently however, a retail zone is emerging, situated between Pacific Avenue and Jackson Street, from Field Street to St. Paul Street.
Billionaire developer Tim Headington has nearly completed his $150 million, 12-year mission to revitalize Downtown with hotels, residences, pocket parks, art installations and shopping. In his 16 buildings, however, all the retail space is in or near his Joule property and already occupied or
earmarked for specific retailers. But, Headington’s game-changing venture to open a new location for Brian Bolke’s boutique “Forty Five Ten” on Main Street (and in a multi-level space five times larger than its flagship Knox-Henderson store) signals we’ve reached the final stages of this new retail zone’s evolution.
The dozens of office towers and empty buildings converted to housing have exponentially increased the number of residents in the Main Street District, and more apartments are coming. Plus, many executives from recent relocations by Toyota, State Farm and other major corporations and the huge influx of tech companies into the “Silicon Prairie” have chosen to live in the urban core and reverse commute. Add in a solid base of restaurants, amenities and hard goods in the new retail zone, and now we’ve achieved a critical tipping point: The urban core’s population base has reached the right density to independently support soft goods.
So, if you’ve been considering a Dallas launch, the time has come. NOW is your window of opportunity, and it’ll be a short one. Within two years, Downtown Dallas will have a completely different retail landscape...
...and here’s why.
The recenT growTh raTe in norTh Texas is “…abouT The equivalenT of a boeing 747 loaded wiTh new residenTs moving here every day.”
—Nicholas Sakelaris, journalist Dallas Business Journal, 3/26/15
we’re Big
we’re a Bargain
our economyNorth Texas’
$300B annual economy is larger than that of many European nations
95.6% of the U.S. Average Cost of Living1
– of the 10 largest metros in the U.S. Dallas is the second lowest
NO income taX Texas is the 11th lowest among states in total state tax burden2
Dallas is the
9th largest city and part of the fourth- largest metropolitan area in the U.S.—and Downtown is the epicenter
resilieNt, diversified economy that’s not as susceptible to energy market fluctuations
what’sdriving growth?
1 ACCRA Cost of Living Index, 20132 Tax Foundation, 2014
dallas downtown rising 3
we’re Business Friendly
our demographics
Dallas is ranked #1 in the U.S. Chamber of Commerce Foundation’s Regulatory Climate Index 2014
City is spending $1.35B to upgrade infrastructure, including a second Downtown light rail alignment and modern streetcar system
we’re wealthy
Median household income is higher in the CBD than other parts of Dallas3 - there are 20
DFW billionaires on the 2014 Forbes 400 list
$73,920 Downtown
$41,254Dallas
we’re smart
60% of Dallas CBD residents have a bachelor’s degree or higher, compared with only 29.6% of Dallas residents outside the CBD4
60% Downtown
29.6%Dallas
we’re young
DFW’s population overall is young—average age 35—with 51% in their prime earning years of 20-54
35Dallas
3 City of Dallas Economic Development4 U.S. Census, 2012
what’s driving growth?
dallas downtown rising 7
CULT
URE
5 The Resonance Report: Top 50 U.S. Destinations 20146 Downtown Dallas Inc.7 City of Dallas Economic Development8 Fortune, 20129 U.S. Census, 2007
W e ’ r e s U c c e s s F U l
OF THE
7
46 19 OF7
Largest PrIVate COMPaNIes
W e ’ r e
s P e N D e r s
W e ’ r e s U N N y
• Central sunbelt city, just a 3-4 hour flight from major coastal metros
• 3rd most popular tourist destination5 and business travel destination6 in the U.S.
$12,837 D A L L A S
$9,411 NEW YORK CiTY
$9,705 LOS ANGELES
HOMe tO sOMe Of tHe wOrLd’s MOst adMIred COMPaNIes
8
Retail SaleS PeR CaPita9
W e ’ r e t r e N D s e t t e r s
driv
ing
mome
ntum
what
’s
W e ’ r e c i t y - l O v e r s
CONS
UMER
S
40,000 Downtown ReSiDentS; 8,000 in the CoRe• Millennials—young professionals between 25-36
• Baby Boomers—Empty Nesters seeking downsized, convenient urban living
150,000 Daytime PoPulation• Restaurants/entertainment are the primary
draw to stay here after work—for now
• DART Orange Line from DFW Airport to Downtown
+ Only about a dozen U.S. airports have a direct passenger rail connection
laRGeSt uRban aRtS DiStRiCt in the CountRy • 19 blocks, 68 acres
KaRl laGeRfelD/ Chanel’S ReCent faShion launCh KiCK-StaRteD ouR Retail maKeoveR
?
where’s the action?
dallas downtown rising 11
reCent evolution
aPaRtmentS
ClaSS a offiCeS
the Dallas CbD is still known for its
distinctive, trophy office buildings. but,
as the area’s live/work/play appeal has
increased, many b and C—and even
empty—office buildings have recently
been converted to residential. in fact,
in the main Street District in particular,
apartment buildings now outnumber
Class a office towers. this is giving
retailers an opportunity to expand
into this dynamic market, grow their
businesses and satisfy rising demand.
where’s the action?
Urban Core Retail Opportunities
Headington’s Joule property is the primary draw for main street
Neiman’s valet parking draws shoppers to Commerce St
• Pacific ave to Jackson St
• field St to St. Paul St
in the Zone
PRoPoSeD PRoPeRtieS
eXiStinG PRoPeRtieS
dallas downtown rising 13
In Dallas, retailers can count on conspicuous consumption, insatiable shoppers and measurable success. Even with the current limited options in Downtown, Range Rovers and “ladies-who-lunch” are daily mainstays. And, those popular stories about local closets with duplicate purchases that still have the tags on are fact, not legend.
Dallas’ Main Street District is now a thriving, vibrant neighborhood. Gone is the atrophy of old—Downtown is back in business. The empty buildings and run-down streetscapes that dominated just a couple decades ago have been replaced by a pedestrian-friendly, popular destination with niche retailers, museums and galleries, pocket parks and outdoor venues, even an entire district for a farmers’ market—and a rapidly rising population base to pound its pavements.
And, don’t forget: We do everything bigger in Texas. New York has Fifth Avenue, Miami has Lincoln Road and Beverly Hills has Rodeo Drive. But, in Dallas? When we’re done, we’ll have Elm and Main and Commerce—and every corner in between. That means, there’s still some room to grow before this bourgeoning retail zone is filled to capacity, and more development is planned to foster additional expansion.
Significant retail opportunities, however, are shrinking rapidly. Following recent leases with various luxury retailers from shopping meccas like Los Angeles and Paris, larger retail options in the urban core are limited to just the handful of projects we’ve described here.
This is your chance. There’s lots of money here and not enough stores and restaurants to spend it in. Don’t miss this final opportunity to cash in on DALLAS DOWNTOWN RISING.
dallas downtown rising 21
“soon you will be able To walk [commerce sTreeT] from neiman marcus all The way To The sTaTler hilTon, and iT will be all redeveloped.”
—Jerry Merriman, president of Merriman Associates/Architects Dallas Morning News 4/16/15
think Bigger
dallasdowntownrising
Jack Gosnell | Senior Vice PresidentCBRE | UCR214.252.1187 [email protected]
Amy MacLaren | Vice PresidentCBRE | UCR214.252.1163 [email protected]