Dallas Continues its Robust Growth into the New Decade
Over the past ten years, Dallas real estate has seen massive growth due to an influx of transplants from companies moving their headquarters and local capital investments. And with the arrival of 2020, this growth does not seem like it will be slowing down.
Big D is considered to be the fourth-largest city by population and has over 1,779 square miles. These two factors have led to urban sprawl around the city’s perimeter, leading to the need for quicker public transportation. The introduction and expansion of the DART light rail and airport construction has led the charge
Commercial Real Estate in Dallas
Since 2017, Dallas has captured over 4.4 percent of total U.S. transactions. This number is third-highest nationally (behind Manhattan and Los Angeles) and should continue to sustain with the inclusion of these projects.
Silver Line Project
The Silver Line Project, part of the DART light rail, is the “the future service running on the Cotton Belt Regional Rail Corridor” that will create a mainline, east-to-west light rail connecting the city to DFW Airport all the way to Shiloh Road in Plano.
This 26-mile Cotton Belt Corridor has been in the works since 2006 and has already seen several billion dollars in investment. Local officials believe the light rail will provide ample opportunity for easy-access mobility across the city while also lowering traffic numbers throughout the city.
Dallas-Fort Worth Airport
The Dallas-Fort Worth Airport has seen massive infrastructure investment and will continue to over the next few years. There are two projects of note that, with the establishment of the Silver Line Project of DART, will help increase travel to and from DFW airport.
American Airlines’ Terminal: The airline will be spending upwards of $3 billion dollars to build their new terminal. Set to open in 2025, the 24-gate terminal will fly as far as international destinations like Israel and New Zealand, with over 900 flights daily within and outside of the country.
Amazon Terminal: The eCommerce conglomerate is poised to increase delivery speeds by constructing a regional hub in the Dallas area. This project is part of Amazon’s $800 million dollar investment to “transform a network” from a two-day fulfillment to a next-day delivery promise. The strategy will see Amazon depend less on FedEx and UPS, and more on themselves to make the deliveries.
Future of Dallas-Fort Worth Commercial Development
The Dallas-Fort Worth area continues to build its infrastructure and claim its place as one of the biggest and most modern cities in the country. As new residents and corporations move into the area, Dallas will need to eventually focus its efforts in developing the downtown area. Right now, building out the sprawl has been relatively cheap, but will eventually create more traffic. There is also the issue of a lack of single-family home affordability in the city.
These necessary urban development projects could be difficult for Dallas to implement, mostly due to the lack of a state income tax. Ironically, the absence of this tax is one of the biggest reasons why corporations and transplants have moved to and invested in Big D.
Regardless, the inclusion of public transportation and new jobs should somewhat remedy the situation, but the city must find other sources of revenue to help their middle and working-class citizens.