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November 2023 | DFW MARKET UPDATES

November Dallas Blog Cover Photo

Dallas, Texas: A Beacon of Economic Prosperity and Opportunity

Dallas, Texas, stands as a shining example of economic dynamism, boasting a thriving job market, rapid population growth, and robust economic resilience. Recent reports and developments spotlight the city’s remarkable growth, showcasing a landscape ripe with opportunities for both businesses and residents alike. 

Expanding Job Opportunities: DrinkPak’s Transformative Investment 

The job market in Dallas continues to flourish, propelled by investments from corporations seeking expansion. In a recent article from Dallas Business Journal DrinkPak revealed plans for a monumental $452 million investment. The expansion project is anticipated to create around 1,000 job opportunities in the region, marking a significant win for the city’s manufacturing sector.  

Downtown Dallas at Night

The locations, situated in Trammell Crow’s 35 Eagle campus in southern Denton County and at Carter Park East in southeast Fort Worth, will serve as production sites for an array of beverages, including energy drinks, sodas, hard seltzers, canned cocktails, and various milk and milk-alternative drinks. 

The company’s commitment to the region has prompted Fort Worth to offer incentives, including a 10-year tax abatement valued at approximately $21 million, contingent on DrinkPak fulfilling specific job creation and salary criteria. This investment is expected to be realized in two phases, with phase one targeting $37 million in real property improvements by the end of 2026 and $183 million in business personal property by January 2027. 

This significant expansion shows Dallas’s appeal as a prime destination for corporations looking to capitalize on a vibrant market and a skilled workforce. 

The Majestic Theater in Downtown Dallas, Texas
Shaping the National Economic Landscape: Dallas’s Economic Influence 

Dallas is playing an increasingly influential role in the U.S. economy. Reports from The Daily Mail and Yahoo News highlight Dallas’s impressive growth rate, positioning it alongside other thriving cities like Houston, Nashville, and Miami.  

In a study by moveBuddha, The Dallas-Fort Worth Metroplex is projected to become the most populous area in the United States by 2100, with a predicted population exceeding 33 million. The study utilized U.S. Census Bureau data and growth rates from 2010-2020 to project population trends for metropolitan areas with over 250,000 residents. Already the fourth fastest-growing metro area in 2023, Dallas-Fort Worth is expected to experience substantial growth if current trends persist. 

Factors contributing to this surge include remote work influencing migration patterns, individuals relocating closer to family, and the attraction of major tech companies like Tesla, Hewlett-Packard, Apple, and Amazon establishing roots in Texas. The city’s Gross Domestic Product (GDP) growth rate outpaces many major metropolitan areas, cementing its status as a frontrunner in reshaping the national economic narrative. 

Fort Worth’s Economic Contributions: Driving Growth and Innovation 

As part of the broader Dallas-Fort Worth metropolitan area, Fort Worth emerges as a cornerstone of economic development. Corporations such as Kroger and Siemens are pivotal in fortifying the region’s economic foundation.

Kroger’s recent establishment of a new store, complemented by infrastructural improvements through new bonds and road enhancements, promises heightened economic vitality within Fort Worth (WFAA). Keith Shoemaker, Kroger’s Dallas Division President, said, “As Fort Worth continues to expand, this new store will be a very important and significant investment in our community and will provide opportunity for new jobs and further economic growth.” 

Downtown Fort Worth

Additionally, Siemens’ investment in a state-of-the-art $150 million manufacturing facility further amplifies the city’s economic momentum (D Magazine). The plant aims to support American data centers and critical infrastructure while creating over 700 local jobs. Siemens also plans to invest in manufacturing plants in Grand Prairie, Pomona, and Lexington, totaling $220 million, contributing to a $510 million U.S. investment and generating 1,700 jobs. 

Siemens’ President and CEO, Roland Busch, expressed commitment to fortifying critical electrical infrastructure and green mobility, aligning with the company’s $2 billion global investment strategy for 2023. The Fort Worth plant will leverage Siemens’ advanced manufacturing tools and cater to the increasing demand in data center technology, projecting a ten percent annual growth until 2030. 

Governor Greg Abbott commended Siemens’ expansion in Texas, highlighting the $150 million investment’s impact on job creation and economic growth in the Dallas-Fort Worth region. 

Dallas Skyscrapers
Population Booms in DFW 

The Dallas-Fort Worth-Arlington metropolitan area, with 8,060,528 inhabitants as of January, is witnessing substantial growth, contributing 36% of Texas’ population rise in the last three years. Much of the state’s expansion is attributed to surging suburban communities, encompassing over 14 million residents in Texas. 

Notably, several North Texas cities within Collin County such as Celina, Princeton, and Anna nearly doubled their populations, indicating rapid growth rates. Collin, Denton, and Tarrant counties witnessed both domestic and international migration, whereas Dallas County’s growth predominantly stemmed from international migration (Dallas Morning News). 

Skybox Datacenters: Fueling Job Growth and Economic Development in North Texas 

Skybox Datacenters LLC, headquartered in Dallas, plans to construct a colossal 1 million-square-foot data center named PowerCampus Dallas in Lancaster, south of Dallas. This initiative, a joint venture with Dallas developer Bandera Ventures and Principal Asset Management, is expected to provide a substantial power capacity of up to 300 megawatts. 

This venture is part of a growing trend in the area, with Lancaster attracting various data center developers. Compass Datacenters LLC is already developing a facility on over 200 acres on Houston School Road. Additionally, Google is set to invest at least $600 million in a new data center in nearby Red Oak, potentially generating 1,200 construction jobs and 30 permanent positions. 

Population Growth and Economic Resilience 

Amidst these strides in economic development, Dallas continues to experience exponential population growth. The comprehensive analysis from D CEO outlines the region’s growth potential and business-friendly environment. 

Dallas, a hub for sustainability and innovation, remains alluring due to its dynamic urban core and smart city initiatives. Emphasizing livability, public transportation, mixed-use development, and cultural opportunities, Dallas sustains its appeal for businesses amid evolving work models. It stands as North Texas’s sole urban choice, boasting extensive office space, robust transportation networks, diverse economic sectors, and a commitment to incentives that stimulate substantial capital investment and job creation. 

Aerial view of DFW

Fort Worth, though ranked as the 13th largest U.S. city and experiencing rapid growth, retains vast undeveloped land and significant planned development, especially in downtown. Its strengths lie in aerospace/defense, advanced manufacturing, and emerging sectors like sustainable energy and autonomous vehicles. The city’s strategic location as a global logistics hub, with DFW International Airport and the Mobility Innovation Zone, appeals to companies reliant on seamless transportation networks. 

Both cities offer varied financial incentives, such as tax increment financing, Opportunity Zones, tax abatements, and specialized district programs, to attract and support business relocation or expansion. The distinct allure of Dallas and Fort Worth stems from their unique assets, strategies, and incentives, positioning them as prime destinations for businesses and individuals seeking diverse opportunities and favorable environments for growth and innovation. 

 DFW is a dynamic metroplex thriving with a flourishing job market, burgeoning population, and unparalleled economic prospects. Its ability to attract significant investments, foster a diverse employment ecosystem, and influence national economic trends reaffirms its status as a powerhouse of opportunity and growth within Texas and the wider United States. 

Since 2019, Rise48 Equity has completed over $2.09 Billion+ in total transactions, and currently has $1.65 Billion+ of Assets Under Management located in Phoenix and Dallas. All of the company’s assets under management are managed by Rise48 Equity’s vertically integrated property management company, Rise48 Communities.