The U.S. Census Bureau estimates that 21.4% of Dallas' population is between the ages of 20 and 34, and out-of-town Millennials won't lack encouragement to join them. The Dallas Regional Chamber's Say Yes to Dallas campaign features a video of Dallas Maverick's owner Mark Cuban proclaiming, “If you're young and you're getting ready to start a business, no matter where you live in the world, I'd say, 'Come to Dallas.'”

Millennial-Ready Development

But where in Dallas will Millennials settle? Millennials are clearly a target of developers in the city's fashionable neighborhoods. Greystar's Ascent Victory Park and Stoneleigh Companies' One Uptown apartments feature such high-end amenities as rooftop pools with private cabanas, 24-hour concierge service, wine fridges, and oversized soaking tubs. Ascent Victory Park even boasts a lavish Uber Lounge, where residents can wait for rides.

But only a small fraction of Millennials can afford such luxury. For the rest, a more likely destination is Dallas' northern suburbs, which have emerged as a major employment center over the last decade. In recent years, JP Morgan Chase, Toyota North America, and Liberty Mutual have made news by locating headquarters or hubs in Plano. It is worth noting that they join Capital One, DXC Technology (formerly Hewlett Packard Enterprise), Bank of America Home Loans, and Ericsson, all of which employ more than 3,000 people in Plano. Nearby Richardson, Carrolton, and Frisco are also attracting major employers.

Multifamily developers have taken note. To cite just a few examples of projects in planning or under construction, Dallas-based B/K Multifamily and homebuilder Toll brothers have announced a 259-unit apartment in Frisco Square, a 147-acre mixed use development. In downtown Plano, Southern Land Company plans to build a 183-unit apartment community, its second in the city. Developer KDC and JLB Partners are completing a multiphase apartment community at CityLine, the 186-acre mixed-use development in Richardson. And Chicago's Stoneleigh Companies, in partnership with Realty Capital Management, is completing the 234-unit Switchyard Apartments in Carrollton.

All these developments have several characteristics that might appeal to more budget-conscious Millennials. They are upscale, not opulent—and upscale costs substantially less in North Dallas than it does in Uptown or Victory Park. They are also close to DART light rail stations, giving notoriously car-averse Millennials the option to work across the metropolitan area and benefit from lower rents. And they offer live/work/play environments for those who prefer to stay close to home. If 2018 does indeed turn out to be the year of the Millennials, Dallas multifamily developers are ready.

Cathy Janke is SVP in the Dallas office of Capital One's Commercial Real Estate Group. The views expressed here are the author's own.