COMMUNITY INVESTOR
COMMUNITY INVESTOR
SPOTLIGHT: DALLAS/FORT WORTH
SPOTLIGHT: DALLAS/FORT WORTH
Ensuring Economic Diversity REGIONAL AND STATE POLICYMAKERS HAVE MOLDED A PLAN TO KEEP DALLAS-FORT WORTH AREA ON AN EVEN KEEL.
THE DALLAS-FORT WORTH area undeniably relies heavily on the oil indus- try for its economic health and well-be- ing, but regional and state policy-makers have spent more than a decade designing programs, incentives and policies to en- sure that the local area continues to grow and evolve regardless of gas prices. Here are a few of the reasons that Dal- las now boasts a diverse business climate with major industries including defense, financial services, information technolo- gy and data, life sciences and more. NO. 1 PROPERTY VALUES ARE UNDER PROPERTY OWNERS’ CONTROL Property owners of residential and commercial properties can request that their areas be targeted for development, redevelopment, improvements and even marketing. One such program allows RESOURCES BUREAU OF LABOR STATISTICS: ECONOMY AT A GLANCE :: www.bls.gov/eag/eag.tx_dallas_msa.htm THE CITY OF DALLAS :: www.dallascityhall.com
rising real estate values to naturally fund such enterprise by allotting increased property tax revenues to these programs without raising tax rates, while another allows property owners to voluntarily pay a supplemental tax to improve ser- vices in their area. NO. 2 TAX REFUNDS FOR ENTERPRISE The state of Texas offers businesses in designated areas, including portions of the Dallas-Fort Worth area, to receive tax re- funds for building materials, machinery and other equipment used in “enterprise zones.” Businesses that move into these zones are also eligible for reduced utility rates. NO. 3 THE CAPITAL DEVELOPMENT PROGRAM (DFW AIRPORT) DFW invested $2.7 billion into a
five-year development program that, although largely concluded, is projected to have yielded a total of 77,000 new jobs by 2022, generate an es- timated $34 billion impact on the region’s economy and further increase DFW’s international cargo shipping presence and, by extension, its trucking industry. As a self-proclaimed “busi- ness-friendly” region in a busi- ness-friendly state, Dallas boasts a number of organizations dedicated to promoting the city as the best place for “progressive” and “innovative” compa- nies and then assisting those companies with the transition from their current locations to the Dallas-Fort Worth area. For example, the Dallas Regional Chamber specifically targets corporate headquarters, while other organizations work to keep locally educated talent local after graduation. •
Taking Off DFW AIRPORT EXEMPLIFIED AREA’S MULTIUSE MIND-SET OF PLANNING AND IMPLEMENTATION.
NO CONVENTIONAL END IN SIGHT While many investors look to the conventional forms of development (i.e. buildings “going vertical” in an area) to get a clear idea of whether or not a region is in growth mode, DFW bucks this conventional definition of growth by actually considering its current physical footprint to be largely sufficient in the near- and mid-term and investigating other ways outside of erecting additional terminals to fortify and supple- ment the airport’s internal economy and the Dal- las-Fort Worth area economy as well. Examples of this
DALLAS-FORT WORTH International Airport (DFW) is not just the primary international airport serving the state of Texas and the largest hub for American Airlines, which also has its headquarters nearby. DFW is also a perfect example of the flexibility and creativity that makes the entire Dallas-Fort Worth metrop- lex an interesting example of economic stability in a state commonly known for a widely perceived economic dependence on the volatile petroleum industry. DFW has a history of strategic plan- ning, development and investment that demonstrates how the local economy operates on a larger scale as well as within the confines of the country’s third-busiest airport. GROWTH-CENTEREDSTRATEGY Review any organization’s master plan—whether that entity is a business or a municipal area—and you’ll read plenty about how it intends to grow. However, what you will not always see is evidence that this growth-centered strategy actual- ly can or will be implemented.
Dallas-Fort Worth International Airport, however, boasts an effective series of “capital development plans” that span multiple decades, although they do not always sport the same ti- tles. These plans often hinge not just on expansion, but also on debt-avoidance, with proceeds from growth being par- tially allocated to future development. They also do not rely solely on expand- ing the reach of the airport or the phys- ical footprint of the runways, but also factor in commercial growth within the DFW Airport community: for exam- ple, via more effective concessions, retail and parking management and expansion, and other uses for airport property, such as obtaining natural gas royalty payments from energy compa- nies interested in investigative research and drilling on DFW property. Look back over the years and review the airport’s strategic growth papers, and you will clearly see that goals set out in the early and mid-2000s in these capital development plans have come to fruition in part or whole in the past few years, clearly contributing to the region as well as the airport.
include potential plans for commer- cial, warehouse and entertainment districts housed on airport proper- ty that would bring with them
GREATER DALLAS CHAPTER OF THE NATIONAL ASSOCIATION OF RESIDENTIAL PROPERTY MANAGERS (NARPM) :: www.dallasnarpm.org TEXAS APARTMENT ASSOCIATION (TAA) :: www.taa.org DALLAS REGIONAL CHAMBER OF COMMERCE :: www.dallaschamber.org FORT WORTH CHAMBER OF COMMERCE :: www.fortworthchamber.com KAY BAILEY HUTCHISON CONVENTION CENTER :: www.dallasconventioncenter.com DISCOVER FORT WORTH: CITY OF COWBOYS AND CULTURE :: www.fortworth.com DALLAS OFFICIAL VISITORS GUIDE :: www.visitdallas.com REALTYTRAC :: www.realtytrac.com | 800-550-4802 TRULIA :: www.trulia.com U.S. CENSUS – DALLAS :: www.census.gov/quickfacts/table/PST045215/4819000 U.S. CENSUS – FORT WORTH :: www.census.gov/quickfacts/table/PST045215/4827000
possible tax-sharing arrangements with surrounding cities that could encourage development in those areas as well. When it comes to the local housing market, it’s easy to see that there is still a solid amount of conventional “growth” going on in the region, but it is a good sign of an area’s probable future stability when the local mind-set does not rely wholly on conventional new construc- tion to bolster growth. •
THE CITY OF FORT WORTH :: www.fortworthtexas.gov CORELOGIC :: www.CoreLogic.com | 866-873-3651 CITY-DATA.COM DALLAS ECONOMIC BREAKDOWN :: www.city-data.com/us-cities/The-South/Dallas-Economy.html
LOCAL MARKET MONITOR :: www.LocalMarketMonitor.com | 800-881-8653 DALLAS/FORT WORTH REAL ESTATE INVESTORS ASSOCIATIONS (REIAS)
& LANDLORD ASSOCIATIONS DFW REIA :: www.reiadfw.com
DALLAS REAL ESTATE INVESTMENT ASSOCIATION (DALLAS REIA) :: www.reiadallas.com NORTH TEXAS ASSOCIATION OF REAL ESTATE INVESTORS (NTAREI) :: www.ntarei.com ZILLOW :: www.zillow.com
60 | think realty magazine november :: december 2016
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