Amazon announced its expansion in Austin earlier this year (credit: Ryan Companies).
DALLAS—What's in store for DFW next year? That seems to be on the minds of most real estate professionals as 2019 winds to a close. John Griggs, co-founder and Co-CEO of Presidium, recently shared his insights into what to expect in 2020 and the events of 2019 that were crucial in creating that pathway.
In 2019, there were several massive corporate relocations including finance giant Schwab and pharma titan McKesson moving to DFW and Apple, Facebook and Amazon announcing major expansions in Austin.
"It is clear that DFW is becoming the most desirable headquarters metro in the US and leaders in virtually any industry can seriously consider moving here," Griggs tells GlobeSt.com. "We will see more large companies across virtually all industries relocate to the area, perhaps several more from the Fortune 500. As the Bay Area gets more unbearably expensive, expect to see more jobs, divisions and perhaps companies relocate to Austin, now a very favored city for technology. Today, the C-suites of tech companies generally remain in the Bay Area, but a true black swan event for Austin would be a headquarters relocation of an older-line tech company, think Cisco, HP, etc., to Austin. This kind of bombshell relocation may not happen this year, but it feels inevitable."
As housing prices and rents continue to rise across Texas, there will be a greater focus on affordable housing solutions. The best solutions will be policies that encourage development of denser housing closer to urban cores and employment centers, and public-private partnerships that make quality affordable housing economically viable to build, Griggs says.
Moreover, he says the big Texas metros are fundamentally different places than they were 20 or even 10 years ago.
"Now with world-class amenities, entertainment and cultural amenities, it's easier than ever to justify a corporate move," Griggs tells GlobeSt.com. "The diversity and inclusiveness of these metros has also changed markedly in recent years and moving from a progressive environment like New York or California is not nearly as daunting as it once was. This keeps the virtuous cycle of corporate and job growth robust and sustainable."
Overall market trends for Dallas-Fort Worth show a combination of positive occupancy and rent growth.
"In the past 10 years, we have seen Dallas' urban core boom. This is a direct result of Texas' pro-business community: the favorable tax climate, low cost of doing business and variety of economic opportunities have all contributed to its growth," Griggs tells GlobeSt.com. "Overall market trends for Dallas-Fort Worth show a combination of positive occupancy and rent growth for 2020. As long as the job growth continues over the next few years, the future for multifamily in DFW and its suburbs looks very promising."
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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.
