Mixed-Use Project with Large Retail Component Planned for Dallas Area
- May 19, 2008
A mixed-use project that could eventually contain approximately 2 million square feet of retail space is being planned for Forney, Texas, located approximately 20 miles east of Dallas. According to a report in Friday’s Dallas Business Journal, Endeavor Real Estate Group and Meadow Ridge Farm L.P. of Dallas are planning the project. To break ground next year, the development will contain 500,000 to 700,000 square feet of retail space, to open by 2010. According to the report, another 1.3 million to 1.5 million square feet of retail could eventually be added. Three hotels and office space are also planned for the 670-acre site. In the first quarter of this year, Dallas-Fort Worth enjoyed positive net absorption of retail space of 600,000 square feet, according to CB Richard Ellis Inc. And its average asking rental rate is now $14.55 per square foot, the highest rate in the last four years. A potential concern for landlords is the amount of new retail space now under construction. There is nearly 12.8 million square feet of retail space in the construction pipeline, up from 11.7 million in the same period last year, according to the Grubb & Ellis report. New retail construction may slow, however, due to a sharp drop in new home construction in the Metroplex. New home construction fell 36 percent from the end of 2006 to the end of 2007. The Dallas area continues to see a large amount of mixed-use projects. As reported by CPN on May 7, UDR began construction of the $1 billion Vitruvian Park, a large mixed-use apartment compound on 100 acres in Addison, Texas. The development will contain over 5,000 residences, as well as office and retail space. On April 24, Trademark Property Co., along with RP Partners, announced it would start construction soon on a $100 million mixed-use project in Fort Worth, which will contain specialty retail and restaurants, office space, a hotel and a renovated office building.