In the first three quarters of 2023, Dallas-Fort Worth led the nation in CRE investment volume, reaching $13.2 billion. The focus was mainly on industrial, multifamily, and retail projects. Despite a slowdown in sales and leasing activity in the industrial market due to increased construction deliveries, rents have continued to rise steadily, indicating strong demand and growth.
The industrial expansion isn’t limited to Dallas or Fort Worth. In Mesquite, Capstar Real Estate Advisors plans to complete a 750,000-square-foot warehouse later this year. In Garland, NTT Data is expanding with a new 130,000-square-foot, two-story data center. In addition, Rosewood Property Co. and Lovett Industrial are developing a new 240,000-square-foot industrial park in Addison, featuring office and warehousing facilities.
In Allen, located about 25 miles northeast of Downtown Dallas, the 121 Technology Park is under construction. Spanning 746,000 square feet, it aims to become one of DFW’s premier industrial parks with a focus on technology manufacturing.
“There’s been great demand for this type of product for quite a long time,” stated David Ellis, Assistant Director at Allen Economic Development Corp. “We’ve been missing out on many quality tech manufacturing deals. This park gets us back in the game for landing deals such as semiconductor manufacturing, which is hot right now.”
david ellis
As an infill development spanning approximately 60 acres, Stillwater Capital’s 121 Technology Park is set to include seven spec buildings divided into two phases. Phase 1 will feature four buildings totaling 370K SF, while Phase 2 will comprise three buildings totaling 368K SF. The park has already secured its first tenant, set to occupy 94K SF. Additionally, a 20-acre mixed-use development, including townhomes, retail, and office space, will be situated on the east side of the development, as noted by Ellis.
Ellis emphasized the significance of such capital investments, highlighting their contribution to property tax revenue for the city and school district. This revenue plays a crucial role in funding quality services for citizens and helps alleviate property tax rates for residents.
The area has long been a hub for technology, tracing back to the prominence of Texas Instruments and Collins Radio. The appeal of Collin County’s affordable housing, safety, and reputable public schools has attracted engineers, production workers, and technical managers over the years. This migration northward toward well-educated technical talent has resulted in an estimated 2 million workers within a 30-minute radius of Allen, with nearly 60% holding bachelor’s degrees.
Recognizing the importance of talent attraction and retention for technology manufacturers, 121 Technology Park was purposefully designed with these factors in mind according to Ellis.
“Many of these types of companies employ not only production workers but also white-collar employees such as engineers, scientists and corporate executives on-site,” he said. “Traditional industrial parks are typically located far from the white-collar labor force and lack the amenities required for these companies to recruit talent.”
david ellis
Adjacent to 121 Technology Park, several sizable mixed-use developments are emerging, poised to offer amenities crucial for technology companies to attract and entertain white-collar talent, as well as engage clients. These developments will feature restaurants, retail outlets, and entertainment venues.
Location is paramount for technology manufacturers in selecting their headquarters, and the technology park benefits from its strategic position along State Highway 121, also known as the Sam Rayburn Tollway, and its proximity to U.S. Highway 75. This affords excellent transportation access, including direct routes to DFW International Airport, just 30 minutes away, and McKinney National Airport, a mere 5 miles distant. Additionally, the park is conveniently situated just over 1 mile from US-75.
Furthermore, the development enjoys proximity, approximately five minutes away, to Collin College’s expansive 340K SF technical campus. This proximity is highly advantageous for tenant companies seeking to attract and retain talent.
Collin College boasts over 7,000 students enrolled in 20 academic programs, encompassing disciplines such as engineering, robotics, automation technology, nursing, and electrical construction. Ellis emphasized the college’s pivotal role in the community, highlighting its innovative and entrepreneurial student body.
In a significant development, Texas A&M University recently unveiled a partnership with Collin College to launch an engineering academy. Under this collaboration, students completing two years of coursework at Collin College will gain admission to Texas A&M’s esteemed College of Engineering in College Station. The inaugural class is slated to commence this fall.
Ellis underscored the program’s significance in addressing Texas’s pressing need for more engineers, citing its provision of quality education at a fraction of the cost. This initiative is poised to serve as a valuable asset for Allen-area businesses seeking local talent while benefiting the broader community in myriad ways.
