Housing Faces Tariffs and Age Variations
In this EXCLUSIVE, KWA president Brian Webster discussed DFW area job growth, which is leading the charge on increased development, partnerships and the prevalence of senior housing.
DALLAS—KWA Construction has focused on pursuing higher-density suburban developments that have increased the company’s average project size from $19.5 million to $25 million. Noteworthy projects fueling this growth include the $35 million Hebron 121 Station, designed by architecture firm Humphreys & Partners, and the $38 million Arlington Commons, one of the largest redevelopment projects in North Texas. In this exclusive, KWA president Brian Webster discussed area job growth which is leading the charge on increased development, construction partnerships and the prevalence of senior housing.
GlobeSt.com: What are the general construction trends that you are seeing in DFW?
Webster: Dallas-Fort Worth continues to be a leader in job creation, bringing an estimated 146,000 residents to the area last year–more than any other metropolitan in the United States. In order to accommodate the needs of these young professionals, creating a sense of community among new developments has become one of the biggest construction trends. Many apartments today function as their own internal communities, offering luxurious gathering spaces, first-class fitness centers, pet amenities, and close proximity to entertainment and dining services.
While demand has been strong, another construction trend we are having to deal with is the recent tariffs on imported goods. The tariffs have driven up the costs of important construction materials like lumber, steel and especially quartz, which has more than doubled in price. This greatly impacts builders as we have to carefully manage budget limitations without compromising the quality of the project.
GlobeSt.com: You’ve worked on 15 projects for one developer and a fourth project for another. Tell us more about these projects.
Webster: In an effort to stand out in a highly competitive market, KWA focuses on developing and sustaining lifelong partnerships with developers and architects. We carefully select our partners by looking at the following three criteria: capabilities, past performance and willingness to collaborate with KWA by keeping the line of communication open and transparent.
Development company, Seneca Investments, has been with us from the very beginning. We’re currently building our 15th project together–Firewheel Senior Living Residences–a 154-unit upscale senior living community near Garland’s Firewheel Golf Course. We’re working closely with Seneca Investments and architect David Kirch to build the luxury senior living project designed to meet the demands of Texas seniors.
Another developer we have established and maintained a close relationship with is Huffines Communities. We are currently constructing the fifth phase of Hebron 121 Station, a $300 million resort-style community in Lewisville, TX. Once complete, this development will span more than 90 acres and include 1,700 units, a restaurant, fitness center and spacious dog park.
GlobeSt.com: What types of projects are especially resonating with clients?
Webster: The senior housing market segment has grown exponentially over the past few years due to the Baby Boomer generation’s preference of less home maintenance and close proximity to services. It’s critically important to Baby Boomers to maintain their independence, which means builders and developers are adhering to their health and social habits when planning living facilities. Now more than ever, developers are investing a great deal in grand entertainment pavilions or community spaces for residents to spend time visiting family and friends, up-to-date fitness centers and full-service restaurants.
Additionally, KWA has also seen an expanded presence of high-tech apartments in urban areas. Features such as app-controlled thermostats, keyless entry and wireless security cameras have become the new standard, due to a mix between the preferences of the Millennial generation and the added convenience it provides for building management.
Regardless of the average tenant age, developers expect their projects to be equipped with high-end finishes and upscale amenities such as pools, fitness centers and technology, to meet renters’ expectations.
GlobeSt.com: What are KWA’s growth plans?
Webster: KWA will continue to keep pace with the area’s rapid population growth by building higher-density, suburban developments that give residents of all income levels access to comfortable and convenient living. We always strive to improve our processes by looking for new ways to improve the customer experience in both delivery and level of quality construction, which we believe is a result of good planning, good subcontractors, scheduling and dedicated construction supervision practices.
From an internal perspective, KWA recognizes that our employees job satisfaction is a key factor to growth. Our team members are the company’s most valuable asset, and our senior leaders will remain committed to creating individual growth plans for all employees, helping to ensure they remain content and reduce the risk of turnover. Furthermore, satisfied employees put their best foot forward daily, leading to satisfied clients.