John Terrell, Dallas/Fort Worth International Airport
Texas has been a beacon of light during our country’s recent bout of recession. No doubt, this has to do with our business-friendly regulations and the physical space and capacity for business growth. Our economy is growing stronger every day.
This past March, the United States Bureau of Labor and Statistics (BLS) released the latest employment numbers, and Regional Commissioner Stanley W. Suchman pointed out that the Dallas/Fort Worth (DFW) area ranked first in the rate of job growth and third in the number of jobs added among the country’s largest metropolitan areas.
DFW’s largest growth last year was in the professional and business services sector, as 33,000 jobs were added. Other growth sectors included trade, transportation and utilities (30,500 jobs), education and health services (19,200 jobs), and leisure and hospitality (17,300 jobs).
It is hard to open the business section of the morning paper anymore without seeing news of a company relocating to the DFW Metroplex, bringing along the promise of thousands of jobs. As a result, commercial real estate is booming in north Texas.
Dallas/Fort Worth International Airport is an important force behind Texas’ growth and a contributor to one of the nation’s most prosperous and vital economies. Located halfway between the cities of Dallas and Fort Worth, DFW Airport is the world’s third busiest, offering non-stop service to 148 domestic and 57 non-stop international destinations. It is a powerful engine for the Texas economy, boosting trade, creating jobs and attracting considerable investment to the surrounding region.
Distinct Opportunity
DFW Airport is already home to several developments not typically found in the aviation industry. This includes private warehouse/distribution centers, two 18-hole golf courses at Bear Creek Office Park, the Grand Hyatt and Hyatt Regency hotels and a number of offices and corporate facilities.
With over 17,000 acres, DFW Airport has the unique ability to attract this growth while operating a world-class hub for travelers.
Airports present a distinct opportunity for businesses and developments that cater to air cargo and passenger services. Upon seeing DFW Airport’s success, other airports look to north Texas as a model for how to bring unique services to customers while adding jobs and businesses to their communities.
As identified in DFW Airport’s 2013 land use plan, over 6,000 acres of developable airport land sit strategically between Dallas and Fort Worth, complete with an abundance of highway access. This development opportunity represents a key part of the airport’s innovative business structure and provides numerous advantages to commercial developers. More than 760 acres have been identified for future office, flex office and corporate campus development.
Our primary mission is to continue to operate a world-class airport that serves more than 62 million passengers per year and pumps nearly $32 billion into the local economy. With thousands of acres of undeveloped land — and more than 166,000 daily passengers and 143,000 jobs supported — DFW Airport has taken a strategic approach to commercial real estate development.
Foreign Trade Zone
Launched in 2001, International Commerce Park was the first master-planned industrial/warehouse park at DFW. The park is located on approximately 432 acres of airport property and offers effective strategies and efficient locations to better serve customers and business partners alike.
Additionally, the complex is located in a Foreign Trade Zone (FTZ), providing opportunities for imports and exports to facilitate the development of international trade and air freight logistics to expand world air cargo growth.
Established to encourage and expedite United States participation in international trade, foreign goods may be admitted to an FTZ without being subject to customs duties or certain excise taxes, and to defer payment of duties until goods are entered into the commerce of the United States. Businesses located and operating in an FTZ can delay, reduce or eliminate customs duties on raw material, parts, components or finished products imported from other countries.
Incorporating the latest design and technology to maximize the project size and functionality, Logistics Center I, a finalist for the Dallas Business Journal’s Best Industrial Development 2014, is the largest non-terminal building ever built at DFW Airport. It is situated on 60 acres in Coppell with more than 1 million square feet, and the cross-dock facility provides all of the elements desired for efficient global e-commerce distribution.
Whether customers are traveling for business, meeting clients, picking up or dropping off rental cars, DFW Airport’s mixed-use developments provide versatile venues to meet all their needs. Located on approximately 30 acres on the southeast side of the airport, Southgate Plaza, which is currently being developed, is a mixed-use development that serves DFW’s daily workforce and the traveling public.
Southgate Plaza will feature approximately 50,000 square feet of restaurant and retail space, approximately 500,000 square feet of office space and an on-site 137-room Hyatt Place hotel adjacent to the rental car center.
In addition, Passport Park provides 600 acres of available space and encompasses retail, office and industrial facilities. It offers unparalleled opportunities for prime real estate development within the airport’s boundaries. Located near DFW’s south entrance along Highway 183 with access to Highway 161, this development is expected to accommodate multiple nationally branded tenants.
As the state’s economy continues on its upward trajectory, increased need for retail office space and new real estate developments are all but guaranteed. Former Texas Governor Rick Perry marketed the state to be “wide open for business” and promoted Texas’ world-class business climate. Current Governor Greg Abbott builds on that, touting the slogan, “Texas means business.”
The economic forecast for Texas looks bright and the airport’s strategic position has made it a catalyst for growth in north Texas.
— By John Terrell, vice president of commercial development, Dallas/Fort Worth International Airport. This article originally appeared in the May 2015 issue of Texas Real Estate Business.