ALLEN, TX—As North Texas explodes with new development and continued growth, Allen has the foundation in place to potentially emerge as a new submarket, similar to the CBD, Uptown and Richardson-Plano. One of Allen's distinguishing features is its early housing growth because early on, it served as a bedroom community for the Interstate 75 corridor.
To put that in perspective, in 1990, Allen had less than 20,000 residents. That number more than doubled by 2000 and currently stands at 100,000. In addition to single-family housing, 7,500 multifamily units were developed in the Allen corridor during that period, according to JLL research.
While some space existed back in the 1980s, predominantly in community-scale office and medical buildings, the first notable wave of business space was developed in the mid- to late-1990s. These included Enterprise Office Center, Allen Office Center and Allen Tech Center.
It is difficult to fathom that at the beginning of the tech boom in the 1990s, the job base totaled 2.6 million versus 3.7 million today. At that time, the telecom corridor was rapidly expanding and Legacy was in its early years. Those 1.1 million new jobs fueled the expansion and creation of many business hubs. But after the tech bust, Allen fell quiet until the mid-2000s.
At that point, DFW's strong economy returned and the northward progression of new development along the Tollway and Interstate 75 continued. Development in greater Legacy picked up quickly. Trademark also started planning Watters Creek in Allen. The initial phases of Watters Creek opened in 2008 and served as a seed, much like Legacy Town Center's office and retail did back in 2002.
With all the housing, retail quickly followed. In 2000, there was about 2 million square feet in the Allen corridor. Despite the ups and downs of the national economy, the Dallas-Fort Worth metroplex expanded.
Today there is 6.7 million square feet, with many larger centers, such as Allen Premium Outlets, Fairview Town Center and the Villages at Allen serving a broad trade area that extends well beyond immediate neighborhoods. In addition, the Shops at Legacy and retail at Watters Creek, which opened in 2008, helped create a cohesive mixed-use identity for the developing office core.
“Population and employment growth are a big part of DFW's long-term story. Our metroplex has been expanding northward for years, driven by the area's superior regional accessibility, as well as ample land for new development,” Walter Bialas, vice president, market research, tells GlobeSt.com. “With all the recent major projects in Legacy and Cityline in Richardson, this inertia will fuel new opportunities for both commercial and residential development in well-located and accessible locations, bringing places like Allen to the forefront.”
In looking at DFW today, new development continues to flow into established areas to accommodate growth. Other areas, such as Allen, are also emerging as potential new submarkets. Currently, Allen and McKinney are included in the broader Richardson–Plano submarket.
“Although that combination makes sense today, it probably doesn't in the not too distant future,” Bialas says. “Of all the next tier suburbs in the path of development, Allen looks to be positioned for transformative growth.”
Currently, the Allen corridor has about 3 million square feet of office space. All of that is located along a 2-mile stretch between Bethany Drive and Exchange Parkway. And, Allen continues to develop.
Projects such as the new Watters Creek convention center and hotel set to open next year will add to area's draw. In fact, Netscout's decision to leave Plano and locate its 145,000-square-foot build-to-suit in Allen is tied directly to the area's business location, amenities and proximity to a deep talent pool.
Looking ahead, Allen's regional location, accessibility, established newer housing base, proximity to a deep and diverse labor pool, and ample multifamily and retail offerings build a foundation for it to emerge as a key commercial submarket. What's even more important is that Allen has land available for large-scale development that is under strong institutional ownership, says JLL.
One Bethany East, Kaizen Development Partners' 125,000-square-foot class-A office building delivering next month will provide tenants with new office options. Hines' holdings west of Interstate 75 and 121 near Alma Road and Howard Hughes' planned Allentowne mixed-use development at Interstate 75 and 121 are poised to add more space. These projects–as well as continued development in Allen's core–provide opportunities for companies seeking to take advantage of a north Dallas location, but sidestep greater Legacy's increasing traffic congestion, similar to the way Cypress Waters in Coppell and Circle T Ranch in Westlake are now attracting large space users, says Bialas.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
