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June 2024 | DFW MARKET UPDATES

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June Market Updates: DFW is a Growing Financial Powerhouse

Rising Skylines: Exciting Expansions and Developments in DFW MSA 

During June 2024, the Dallas-Fort Worth metroplex announced significant expansions and developments that marked a remarkable step in its regional growth. New expansions in the area highlighted its potential as a private equity hub and debut developments are poised to reshape the financial landscape in Dallas. An influx of innovative companies is creating job opportunities, further bolstering the local economy, and solidifying the region’s status as a premier location for industrial growth across multiple sectors. 

ACCELERATING GROWTH: EXPANSIONS IN DFW’S THRIVING HUBS

H-E-B Expands in North Texas: New Locations in Mansfield and Rockwall

Grocery giant, H-E-B, opened its Mansfield location earlier this month, bringing its renowned service and selection to the area. The new store spans 118,000 square feet and is expected to employ around 700 people. This will be H-E-B’s second store in Tarrant County, expanding its footprint in the Dallas market. 

While specific details about the store’s size and staffing levels aren’t yet disclosed, anticipation builds as residents look forward to the new shopping option. Additionally, two more H-E-B stores are planned for Tarrant County, including one in Glade Park, expected to open in 2026. 

Downtown Phoenix

H-E-B’s expansion includes the company’s first North Texas Joe V’s Smart Shop that opened on June 12. This 55,000-square-foot store aims to provide a more affordable shopping experience, following the success of its 10 Houston-area locations. As H-E-B continues growing, it remains a powerhouse in the grocery industry, employing over 150,000 people across 335 stores in Texas, with 2023 revenues hitting $43.6 billion, securing its place among Forbes’ top five largest privately owned companies.

LA-Based Private Equity Firm Expands to DFW MSA

Vance Street Capital LLC, a Los Angeles-based private equity firm with over $2 billion in assets under management, expanded to Dallas. 

The firm invests in medical technology, industrial technology, life sciences, and aerospace and defense, targeting companies with enterprise values between $30-$350 million. One of its portfolio companies, Synapse ITS, is based in Greenville, east of Dallas (Dallas Business Journal). 

This strategic expansion aims to support growth in Dallas in the medical and industrial technology, life sciences, and aerospace and defense sectors.  

CANADIAN SOLAR’S RAPID EXPANSION IN MESQUITE 

Canadian Solar, after opening its first U.S. plant in Mesquite, Texas, is already expanding its footprint. “We have plans for 1,500 American workers here,” said Zhuang during remarks at an opening ceremony on June 7. “We have about 1,000 already and more coming. In two more years, that number could double.” Once Canadian Solar reaches a workforce of 1,500 employees, it will become the second-largest private employer in the city located in Dallas County. (The Dallas Morning News) 

By choosing Mesquite for its expansion, Canadian Solar is positioning itself closer to key markets and customers across the U.S., enhancing its operational efficiency and market responsiveness. This move boosts local employment but also solidifies the region’s status as a prime location for industrial growth and sustainability initiatives. 

As Canadian Solar continues to grow, the increased economic activity and job creation are expected to positively impact the local market. This expansion aligns with broader trends of renewable energy adoption and industrial development in Texas, promising robust returns for stakeholders in the region.  

Culinary Dropout Arrives in Dallas: A New Hot Spot in the Design District 

This month, Culinary Dropout’s had their debut in the Design District. This new hotspot blends casual dining, live music, and a rooftop bar with expansive downtown views. Culinary Dropout is poised to increase foot traffic and tourism to the area. Shang  Skipper, Culinary Dropout’s director of operations, mentioned, “We know Dallas is a very social town.” The Dallas Design District is increasingly becoming a hub of social activity each month, with new restaurants opening throughout the year nearby (The Dallas Morning News). 

Culinary Dropout’s arrival presents an opportunity for economic growth. The restaurant’s appeal as a cultural and culinary destination is expected to enhance nearby property desirability and rental values. Moreover, its introduction is set to stimulate job creation within the hospitality sector, contributing further to the local economy’s vibrancy.  

Investors keen on Dallas’ dynamic growth and its impact on property investment should take note of developments like Culinary Dropout’s expansion. It represents a strategic opportunity to capitalize on increasing demand driven by enhanced urban amenities and the restaurant’s attraction for both residents and visitors alike.  

IMN Enterprises HQ Relocates from Oregon to Texas 

IMN Enterprises chose Dallas, Texas as their new home for its headquarters, a strategic decision aimed at accelerating its expansion and innovation initiatives. Situated in the bustling Dallas-Fort Worth metroplex, this relocation places IMN Enterprises in the center of a thriving business environment, ready to capitalize on the city’s strong infrastructure and supportive tech ecosystem.  

This decision underscores IMN’s commitment to driving technological advancements and enhancing operational efficiencies. By relocating to Dallas, the company seeks to tap into the city’s deep talent pool and strategic advantages, fostering new partnerships and amplifying its market presence. The move signifies a geographical shift but also reflects IMN Enterprises’ dedication to cultivating a dynamic workplace culture and nurturing its global workforce. 

As IMN Enterprises prepares to inaugurate its new headquarters in Dallas, it remains focused on its core values of integrity, innovation, and customer-centricity. This relocation sets the stage for continued growth and leadership in delivering cutting-edge technology solutions and business services (Dallas Business Journal). 

DEBUT DEVELOPMENTS IN DFW MSA

Breaking Ground on Construction: Skybox Data Centers Began Work on First Power Campus Dallas Site 

Skybox Datacenters LLC has commenced construction on the first segment of its extensive 1-million-square-foot data center campus in Lancaster, Texas. The Dallas-based company announced the start of construction on the initial building of its PowerCampus Dallas site earlier this month. This first facility, spanning 270,900 square feet, is expected to cost around $85 million and is slated for completion in early 2026. The PowerCampus Dallas project will consist of three buildings and accommodate approximately 120 new employees upon full completion. This ambitious project is a collaboration between Skybox, Dallas developer Bandera Ventures, and Principal Asset Management, and it will provide up to 300 megawatts of power. 

This development is part of a broader trend of substantial data center investments in Lancaster and the greater North Texas region. Stack Infrastructure Inc. is also making significant strides with its plan to build six data centers totaling 1.5 million square feet in Lancaster, with delivery expected by mid-2026. Other notable projects in the region include PowerHouse Data Centers’ three-building campus in Irving, Prime Data Centers’ three-center site near Fort Worth, and an expansion of NTT Data’s Garland campus. 

The Dallas-Fort Worth area remains a hotspot for data center development, driven by its record absorption of 386 megawatts of power last year and a remarkably low vacancy rate of 3.73%, according to a Cushman & Wakefield report. This surge in data center construction underscores the region’s growing importance as a technological hub (Dallas Business Journal). 

Fort Worth Convention Center Upgrades Promise Economic Boost 

Fort Worth Convention Center’s renovation is set to transform the downtown area and boost the local economy. The project, funded through an increased hotel occupancy tax approved by voters, is set to unfold in two phases, with a projected completion by 2030. 

Phase one, currently underway, includes foundational enhancements such as new entrance construction and a state-of-the-art kitchen. This phase is scheduled for completion in 2026. Following this, the second phase will commence, focusing on demolishing the iconic saucer-shaped arena to make room for modern meeting spaces, extended exhibit halls, and a second ballroom. The goal is to establish a vibrant convention and learning district, enhancing the southeastern quadrant of downtown Fort Worth. 

These upgrades signify a promising opportunity as the development is expected to spur surrounding real estate growth, with plans for a new hotel, retail spaces, and mixed-use developments along the revamped Commerce Street. This pedestrian-friendly area, modeled after successful urban spaces like Dallas’ AT&T Discovery District, aims to attract tourists and business travelers, generating steady revenue for local DFW MSA businesses. With the city’s strategic focus on creating a unique, economically vibrant district, we can look forward to a thriving market in the Dallas Metroplitan area (Dallas Business Journal). 

A New National Stock Exchange May Soon Debut in Dallas 

Dallas could soon become home to a new national stock exchange, an indicator as to its position as a key financial hub in the nation. TXSE Group Inc., a Dallas-based company, announced plans on June 5 to launch the Texas Stock Exchange (TXSE). The company will file a registration with the U.S. Securities and Exchange Commission later this year, with hopes of facilitating trades by 2025 and hosting its first listing in 2026, according to a Wall Street Journal report. 

The initiative garnered significant support, with TXSE Group raising $120 million from over two dozen investors, including major financial institutions like BlackRock and Citadel Securities. TXSE CEO and founder, James Lee, described this move as a “long-held vision,” highlighting the economic strength of Texas and the southeastern U.S. as an opportune foundation for a new major stock exchange. Texas leads the nation in attracting business relocations and expansions and boasts the highest number of Fortune 500 headquarters, making it fertile ground for such a financial venture. 

 

The DFW area has rapidly ascended as a significant U.S. financial center, now home to hundreds of money managers and overshadowing Los Angeles as the second-largest hub of financial workers in the country, trailing only New York. The region has attracted major firms like Charles Schwab Corp. and Fisher Investments, alongside substantial corporate campuses for J.P. Morgan Chase & Co., Goldman Sachs Group Inc., and Wells Fargo & Co. This influx of financial giants underscores the area’s appeal as a booming financial powerhouse. 

If approved, TXSE would challenge the dominance of the New York Stock Exchange and Nasdaq, promising more stability and predictability around listing standards and costs. Lee emphasized that TXSE aims to offer a more “CEO-friendly” alternative and enhance access to U.S. capital markets for all investors. By fostering greater competition around quote activity, liquidity, and transparency, TXSE aspires to create more consistent and reliable markets benefiting investors, global issuers, and liquidity providers alike. With prominent advisors and legal support, TXSE is poised to reshape the financial landscape in Dallas and beyond (Dallas Business Journal). 

As the Dallas-Fort Worth metroplex reinforces its status as a financial powerhouse, from H-E-B’s expansion in North Texas to strategic moves by Vance Street Capital and IMN Enterprises, the region’s growth is unstoppable. Canadian Solar’s commitment to Mesquite and Culinary Dropout’s debut in the Design District showcase DFW’s economic dynamism. Upcoming projects like SkyBox Lancaster and the Fort Worth Convention Center renovations promise to further enhance the urban landscape, while the potential launch of the TXSE highlights the area’s growing financial significance.  

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