Below are summary notes from the Weitzman 18th Annual Shopping Center Survey & Forecast and comments made by Steve Brown, Dallas Morning News Real Estate Editor at a meeting of the Frisco Developers Council. Both were held in January, 2008.
Metroplex Region:
- Metroplex region is a blessed economy; but has cooled off some.
- Anticipated 100,000 new jobs annually will be down to a projected 65,000 new jobs, which will still be No. 2 or 3 in the US.
- Office space, approximately 5.5 million SF under development.
- 2007 office leasing was down about 50% in the Metroplex.
- New housing starts are down. Single family home foreclosures will be a problem for the next 12-18 months.
- Apartment development is a hot market right now, people who cannot qualify for a home loan are leasing apartments and houses.
- About 4 million SF of retail is under construction and vacancy rate is about 10%, not bad.
- DFW Region economy is still better off than most other places in the US.
City of Frisco: Overall market in Frisco is good and remains strong.
- Office:
· Office development in 2007 was approximately 1.5 million square feet.
· Office leasing absorbed approximately 600,000 square feet or 40% absorbed.
· Office vacancy is approximately 20%, which ranks third best in the Metroplex.
- Retail:
· At 95% retail occupancy, which is considered full occupancy, Frisco ranks fourth best in retail submarket occupancy in the Metroplex, (1. McKinney 98%, 2. Allen 97%, 3. Cedar Hill 96%)· Frisco ranks fourth best in 2007 retail construction with approximately 550,177 SF. (1. Lewisville/Flower Mound 1.1M SF, 2. Grand Prairie 640,000 SF, 3. McKinney 615,000 SF)
· Retail construction in Frisco remains strong with approximately 500,000 SF of retail under construction.
- Hotels:
· Frisco has 3 full service hotels and 3 limited service hotels with a total of 1,034 rooms.
· Four hotels are under construction, which will add 469 rooms for a total of 1,503 rooms.
· Four hotels are pending, which would add 477 rooms, or a potential 1,980 rooms.
4. Housing:
· Several major commercial and mixed-use projects at major intersections along the Dallas North Tollway from SH 121 to US380 have been announced or are under construction.
· New single family starts are down about 40%.
· Apartment development is a hot market as Frisco has approximately 2,500 units in the pipeline.
5. Overall outlook:
· Overall economic outlook is good with slowed single family housing development and several major commercial/mixed-use projects underway in 2008.
