commercial real estate

Chicago’s Merchandise Mart, a former Marshall Field’s Warehouse and a tech darling.

Any of us who’ve spent time in an office know that work is changing. We hear about new ways to work and all the technologies that aim to serve. But what about the actual physical spaces we work in?  Sure, everyone talks about mobility and the ubiquity of the cloud, but what about when the butt hits the Aeron chair? That’s changing, too.

A recent survey by commercial real estate broker CBRE reported that 45 percent of respondents “anticipate migrating to an activity-based workspace,” while 52 percent “anticipate implementing some level of unassigned seating.”

Back in January 2018, the Chicago Tribune posted a story about how older, enormous buildings — typically the stuff of real estate white elephantry — were suddenly tech company darlings. And not for manufacturing, but carpeted office space. These are buildings like the disused Old Main Post Office, Merchandise Mart, and a number of 100-year-old catalog warehouses (remember Monty Wards?). Each of these relics have 50,000 to 260,000 square feet per floor. Put in perspective, that something up to six acres per floor.

The reason these spaces are now hot is because as commercial broker Matt Ward of Newmark Knight Frank said, “This thinking of different floor, different planet is finding its way into every boardroom. The idea of us getting out of our offices and being together is seen as a necessity in today’s business.”

In a word, collaboration.

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Recently sold 3131 Turtle Creek offers glimpse into DCAD’s commercial problem

Whenever property taxes are spoken about, residential usually gets the most ink. The reason is simple. The commercial market offers a fraction of the data available to a residential assessor. In the residential world, similar homes are typically clustered together, placing them in the same valuation realm. There aren’t a lot of crackerboxes on Strait Lane.  However in the commercial world, a four-story building can be next to a skyscraper.

Also, unlike residential, there is no centralized multiple listing service to get a view of commercial properties for sale. If residential is iPads and apps, commercial real estate is the equivalent of a quiet conversation in the back of a darkened, smoke-filled restaurant. It’s just more difficult.

I’ve made the suggestion that DCAD needs to hire appraisers to zoom around town and physically inspect commercial real estate to accurately assess its value. That’s because …

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Exxir - Bishop Arts - Interior

Rendering of interior plazas of the Bishop Arts Village project   (Source bishoparts.com)

Update 12/16/16 from yesterday’s Plan Commission meeting: after much conversation, commissioners voted to hold the motion until the January 19th meeting. Neighbors will be meeting with Rob Baldwin, the developer’s zoning rep after the New Year to clarify recent changes to the zoning amendment request.

Arts Village, LLC (aka Exxir Capital, aka the Nazarian family) will be going before the Dallas City Plan Commission Board this week to amend the zoning for Planned Development District No. 830, just south of the Bishop Arts District in North Oak Cliff.

Nazerian Subdistrict Map

In September, I reported on this zoning change request, and since then the developers have held at least one community meeting. Yet they failed to include two of the most important requests I heard at that meeting:

1) To word the 15,000-square-foot market use to prohibit one singular tenant, and …

2) To limit hotel and entertainment uses to the portion of the 11 acre site south of 9th Street, where these uses are currently planned to be built — away from the residential neighborhood north of 9th and surrounding the development site.

We must remember that in this PD, zoning change requests are not subject to a specific development plan. Once uses are allowed by right in an area, plans can change, even owners can change. And although the Nazerians have proven to have great ideas for this development, these changes effect the land use allowances for the indefinite future, regardless of who the owner is.

At Thursday’s meeting, their zoning request will include the changes listed below, to be applicable within this one new subdistrict which will cover the entire 11 acre site resting between Melba Street, Madison Street, 10th Street, and Bishop Ave.

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Video courtesy of Uptown Dallas, Inc.

Something has to be done. Uptown is beginning to feel a bit like Greenville Ave. did a few years back. Remember? The late night crime and violence, residential streets overrun with youthful overindulgence, and uninvited visitors parking in front of residences … to put it nicely.  Uptown is on the cusp of being known as similarly problematic area — unless we can do something now to curb that trajectory. As Uptown Dallas, Inc. works diligently to attract more young families, improve the schools, and focus on great parks, the late night bar scene is (literally) spilling into the streets and driving a higher police presence.

Two potential solutions have surfaced and exploration began last night at a formal community input session hosted by the City of Dallas Department of Sustainable Development and Construction:

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$30K millionaire

Guest post by David Shaffer

The term $30,000 millionaire describes a young professional who spends his or her disposable income on items that represent a more expensive lifestyle than what would be expected based on the paycheck. Think of the college graduate who wears designer suits, frequents five-star restaurants, and lives in a swanky high rise; or the young professional who enjoys fine dining and hanging out at the most prestigious clubs nearly every night. They spend money freely on fun, feeling and looking good, withfauxballer-300x201 long term growth investments about as far from their brain as a Volvo station wagon.

The $30,000 millionaire mentality is about looking good and staying mobile — and let me tell you, this lifestyle choice has been a positive driver for the multifamily sector in DFW. The young professional is hoping that he or she becomes a HENRY (high earner not rich yet) soon, and so on …
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Looks like there could be a new mixed-use or multi-family development coming, as Charlie Perdue of Perdue Equities Company has listed this 2 acre site on Greenbrier with unobstructed downtown Dallas views. Trust me, this is an incredible lot, and is right in the Oak Cliff Gateway.

“The site would be ideal for a seven- to 10-story (three to four stories of parking included) multi-family project that could take advantage of the maximum height allowances and unobstructed views of downtown Dallas,” Perdue said. “Within the Oak Cliff Gateway zoning ordinance, this site is one of the only places you can achieve maximum height (20 stories) without the residential proximity slope restricting the number of feet you can build up.”

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Photo: RealTech Dallas

John Backes, left, at the RealTech Dallas event “Cultivate: Building the Next Big Thing in Real Estate.” Photo: RealTech Dallas

John Backes is a young real estate entrepreneur, technology innovator, and champion of the city of Dallas. He practically vibrates with energy and ideas, and has a sort of raw enthusiasm that’s utterly sincere and unscripted.

The St. Mark’s grad is passionate about bringing new ideas to the real estate community by collaborating with the active start-up community in Dallas. That motivation is showing up in myriad ways in his life.

As we wrote about yesterday, he is launching the MOTIVE Accelerator Program this fall. This exciting program will fund selected commercial real estate technology start-ups, as well as provide mentoring through a program oriented around customer and product development.

Backes was also the co-founder of RealTech Dallas 12 months ago, which brings together the startup community with the real estate industry.

His new company, DXZ Media, is a full-service branding and digital marketing agency that aims to solve complex problems related to technology, identity, and strategy.

Sound like a full plate? It’s not even the beginning. He’s also a mentor at the The Dallas Entrepreneur Center and advisor at PoshPublic, a curated crowdfunding platform which allows artists or nonprofits to create a campaign at no upfront cost and no risk. There’s so much more. And the ideas just keep coming.

“We have an incredible story here in Dallas of innovative real estate companies, and so many tech start-ups, too. There was so much vibrancy, but no intersection,” Backes said. “Every day, I feel like I’m in a very dynamic center of change.”

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Toyota groundbreaking 1.20.2015

At a ceremonial groundbreaking Tuesday, about 100 attendees watched as a Toyota Tundra truck moved the first shovels of dirt for the Japanese automaker’s $350 million North American headquarters in West Plano.

The relocation of Toyota Motor Corp.’s $350 million headquarters to Plano from Southern California was North Texas’ biggest corporate relocation of 2014. By the time construction is complete in late 2016 or early 2017, some 4,000 jobs will have been created at or moved to the 100-acre campus, including transfers from California, New York, and other states. Plus, for every one of the jobs Toyota brings to Plano, four more jobs will be created.

That’s a colossal business opportunity for Collin County realtors, who are getting ready to be a part of finding homes for those who need it. The company’s 1 million-square-foot campus is located off the Sam Rayburn Tollway and Legacy Drive in Plano, and many of the corporate employees will want to live close to that area.

“We’re all gearing up for it and we are ready to take them on, whether they’re going into Plano or Uptown,” said David Maez, broker and co-owner at VIVO Realty. “Another thing we’re going to see is all the corporations that do business with Toyota moving to the area. You’ll be adding all those other jobs and people to the area.” Jump to read more!

Toyota Executives groundbreaking

Toyota CEO Jim Lentz, President and CEO Michael Groff, and Plano Mayor Harry LaRosiliere (center). All photos courtesy of WFAA-TV.

 

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