New retail and commercial developments on the horizon

Frisco Convention & Visitors Bureau: On the SWHorizon

Here are some new and exciting commercial developments in the works:

On the Horizon

Frisco Forcehttp://www.friscoforce.com/

The Frisco Force Race Team and Go-Kart Park opens in the first quarter of 2007 and will offer family entertainment plus the NASCAR craftsman Truck Series race team. The race team will compete annually in 25 nationally televised races around the country, including two at the Texas Motor Speedway. The Go-Kart Park will be a family oriented facility open to the public.

Heritage Villagehttp://www.friscoheritage.org/

Designed as a cultural tourism and an expanded education destination, Frisco’s Heritage Village will provide a dynamic picture of what it was like to live and work in Frisco during the past 100 + years. Centered around the Frisco Heritage Museum, which will feature hands-on exhibits, many historical homes, a log cabin and school room, this “living village” will also be home to shops, stores, meeting rooms and teaching facilities. The Heritage Village is scheduled to open Summer 2007.

Homewood Suites

This 117 room hotel offers warm, spacious suites and home-like services and amenities that make the hotel the perfect place to stay for three nights or three weeks. Enjoy the spacious studio, one and/or two-bedroom suites, a fully equipped kitchen complete with full-size refrigerator, microwave oven, coffeemaker and dishwasher and daily complimentary Suite Start® hot breakfast. Opening Summer 2007.
Shops at Starwood

The Shops at Starwood will be a vibrant collection of select retail merchants and one-of-a-kind specialty restaurants located on the Dallas North Tollway at Lebanon. This Mediterranean inspired development will include DFW Diamonds, Bonnie Ruth’s Trotoirre et Patisserie (a French bistro), and many other upscale restaurants and retailers. Complete with ornamental landscaping, decorative pedestrian walkways and water features, The Shops at Starwood is scheduled to open August 2006. For more information, call 214-373-0220.

Stonebriar Commons at Legacy

Located in front of the Westin Stonebriar Resort is the first phase of this new development that will include retail, restaurants, two new hotels and condominiums. The center currently features Farpointe Wine Cellar & Bistro, Cantina Laredo and The Face & Body Spa. The second phase, scheduled to break ground September 2006 will include more restaurants and retail, and a full service Sheraton Hotel. For more information, contact 214-720-6633.

Studio Movie Grillhttp://www.studiomoviegrill.com/

Studio Movie Grill is coming to Frisco in Spring 2007. This concept, which combines first-run movies, a state-of-the-art viewing experience and high-quality food, will be located in Frisco Square, across the street from Pizza Hut Park. With ticket prices consistent with those of conventional movie theaters, Studio Movie Grill’s nine-screen theater will offer numerous exclusive amenities in addition to food and beverage service, including in-theater table service, full bar service and individual leather recliners. In addition, the facility will have sophisticated audio/video equipment, which is expected to help attract hundreds of corporate events and private parties.

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The State of Frisco Real Estate

As a Realtor, I'm always being asked "How's Real Estate in the Dallas area?" I think, a lot of the time, people are expecting me to say that the end is coming and I'm jumping ship. At least, that's what you'd think listening to the national press.

But my answer is "Fantastic, we are on the verge of exciting and exploding times here."

Here's the general scoop on Real Estate in the Dallas area:

* Appreciation in the Dallas area has held at a steady 5-6% growth for quite a few years now. While there have been some slight regional hiccups, like the airline downsize effecting areas west of the North Dallas Tollway, and the Telecom bust effecting the telecom corridor in Richardson and Allen, Dallas has not seen the super appreciation that the coasts, and much of the rest of the country has, but we have not seen a depreciation of any sort either. It should be noted, that there are areas of fairly substantial appreciation in Dallas. Areas between Hwy 75 and I-35, between Downtown and I-635, have seen appreciation rates as high as 15% in some areas, and of course, Preston Hollow, University Park, and Highland Park would be some of those areas. (Did I mention my sites, HighlandParkRealtor.com and PrestonHollowRealtor.com ?)

* Several things have happened on the national level that is now affecting Dallas.

First, baby boomers are getting older. That means that the most affluent generation of America's history is settling down, which means, downsizing to condo's, townhouses, zero line lot homes, lake homes, second homes, and vacation homes. This is why some of the hype of a housing bubble is unfounded. (I don't believe in housing bubbles at all - stocks may bust, but homes simply deflate (with the exception of natural disasters and government intervention, of course).

Second, a lot of those baby boomers, and people from both coast, are deciding that a warm climate with not to little natural disasters in a undervalued housing market with no state income tax sounds pretty good. And they, my friend, coming (and with lots of cash from the appreciation they made).

Third, a recent nationally publicized study found that Dallas and Ft. Worth were 2 of the top three undervalued real estate markets in the country. Think that caught the ear of investors everywhere? How about the great job growth? (I heard that it was the second best job growth in the nation.) Dallas is at the start of an invasion of home investors, and let me tell you, they are already here. Ask any new home builder in Frisco or McKinney, or any condo developer in Downtown Dallas, and they'll tell you they are knee deep in Yankees, hippies, and people with a foreign accent. I was on an investors club board in California recently, and, I kid you not, HALF of the messages were about buying homes in Texas (Austin is a really hot market too.)

Forth, speaking of a foreign accent, there is a world effect descending upon the Dallas area. With the rise of democracy in Russia and China, some people are starting to make some money over there, but they sure don't trust the banks. So, where's the safest investment vehicle in the world? You guessed it, right here in America, and even better, Dallas. How exciting for a Chinese national to come home and tell everyone that they bought some homes just minutes from J.R.'s place! Oh, and did I mention the weak dollar? That's making us an even better deal.

* Back to Dallas - although Big D's still fighting the black eye of a high crime rate and is gaining national recognition for its City Counsel that often resembles the Jerry Springer Show, financial leaders like Tom Hicks, Tramel Crow, and a thousand hard as nails developers and entrepreneurs are continuing to transform the city and its suburbs into a dynamic, culturally diverse, and vibrant city. I was born and raised in Dallas, Richardson, Garland, and Frisco, and let me tell you, it wasn't always such an exciting place to be. Think pre-1990, or maybe a little before then. There was nothing dynamic or exiting about the Dallas skyline, not neon lights, no Deep Elum, no West End, no State Street condos, no McKinney Avenue restaurant scene, no European Retail/housing villages, and Frisco was a great place for farming and hunting.

Currently, there are about a dozen high rise condo conversions taking place in the Downtown Dallas area, including the Ritz, and the just opened "W" Hotel and condos. If the City can get their act together, we'll be starting the building of a 10 Story high architecturally significant bridge across the Trinity, and then development of the Trinity itself.

Oak Cliff, 10 minutes from Downtown and filled with huge mature trees is being transformed by individual investors and developers into a kind of a quaint, old, ethnically diverse place that's perfect for the thirty-forty something crowd who still have a deep desire to be hip, but can't quite see themselves in a condo.

* Lets move on to Frisco. One of the surprises for out of state relocations and investors is our high property tax rate. Yes, there's no income tax in Texas, but that's kind of inconsequential for an out of state investor. And what about Tennessee, where there's no state income tax AND low property taxes? Lets face it, property taxes hurt...property, and investment, and appreciation, and, yes, Tax Revenue (something I've never been able to get my liberal friends to understand). Currently, Frisco enjoys one of the lowest property tax rates in D/FW (2.32-2.41% depending upon the County), thanks to a retail tax revenue that, at last count was over $25,000,000 a year, and the conservative and sane council members we enjoy in Frisco and thank the Lord for every time we see a Dallas City Council meeting on T.V. That's about $950 per $100,000 in value an investor sees in his pocket when he buys a home in Frisco instead of McKinney, Dallas, or one of the other 2.8% plus cities.

* Behold, the North Dallas Tollway Completion! Well, its not here yet, but the North Dallas Tollway extension to Hwy 380 at the Frisco/Prosper border is expected to be completed by 2007, and the last I heard, they were 6 months ahead. And what does this spell for Frisco? Appreciation my friend, Appreciation with a capital "A" (to the tune of Music Man). Lets take a look at some statistics from the North Texas Real Estate Information System. In the area from Hwy 121 to 380, roughly a mile in either direction, there were 607 properties sold in 2005, with an average sales price of $372,157, and an average price per sq. ft. of $113. (by the way, the largest sale was 9,311 sq. ft. with a price of $3,000,000.) To date, 2006 shows 281 properties sold with an average sales price of $384,524, and an average price per sq. ft. of $115. I know, I know, some of you more savy investors who attended Highland Park schools are saying "hey, wait a minute, that's only 3% appreciation." Well, although some people figure it that way, it's not a barometer of inflation at all, because it doesn't measure an increase in price on the same homes. Personally, I have not found a great, and accurate way to measure the appreciation in a given area, short of a Metropolitan Statistical Area, which is huge. However, the best method I have, indicates appreciation rates up to 11% in some areas along that corridor, and I'm seeing rental signs poping up like Johnson grass in my neighborhood in the same area, which ought to tell you something (investors).

If you'd like to buy or sell your own piece of the pie in Frisco, or anywhere else in the Dallas area, give me a call and I'll help you to navigate the scenery and scam artist along the road.

-Brian Marsh is a Realtor, Frisco resident, native Dallasite, and Editor of the Frisco Real Estate Blog. If you'd like to contact Brian you can reach him through his website, http://www.aggresivehomesales.com/ or by phone at 214.520.

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Frisco Homes Sales and Prices up for 2006

Click the above Picture to enlarge

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Frisco Schools Rate High

These North Texas school districts were rated either Recognized or Academically Acceptable in the 2006 accountability ratings released on Tuesday by the Texas Education Agency. The Districts rating as a whole is first, and then followed by the schools themselves in brackets ()

Why schools on a Real Estate Blog? Because schools may be the single greatest indicator of appreciation within an area.

The districts, their ratings and number of schools within each rating follow:

Allen ISD: Recognized (7 Exemplary; 8 Recognized; 2 Acceptable)

Carroll ISD: Recognized (10 Exemplary; 1 Recognized)

Carrollton-Farmers Branch ISD: Recognized (4 Exemplary; 20 Recognized; 11 Acceptable)

Celina ISD: Acceptable (1 Exemplary; 3 Recognized)

Coppell ISD: Recognized (10 Exemplary; 4 Recognized)

Frisco ISD: Recognized (9 Exemplary; 15 Recognized; 2 Acceptable)

Garland ISD: Acceptable (3 Exemplary; 25 Recognized; 35 Acceptable; 1 Unacceptable)

Lewisville ISD: Acceptable (19 Exemplary; 26 Recognized; 13 Acceptable)

Little Elm ISD: Acceptable (4 Recognized; 4 Acceptable)

Lovejoy ISD: Recognized (2 Exemplary)

McKinney ISD: Recognized (9 Exemplary; 10 Recognized; 4 Acceptable)

Mesquite ISD: Acceptable (4 Exemplary; 10 Recognized; 29 Acceptable)

Plano ISD: Acceptable (25 Exemplary; 24 Recognized; 12 Acceptable; 1

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Another High-Tech Business moves to Frisco

Ignite Technologies

Another high-tech business is headed to Frisco.

Ignite Technologies Inc. has leased 25,713 square feet for its corporate headquarters in the Hall Office Park at 3211 Internet Blvd.

The software and network technology company is now based at 5910 North Central Expressway in Dallas.

Jean Farris with Hall Financial Group negotiated the lease with Steve Thelen and Bo Bond with the Staubach Co.

-Steve Brown, Dallas Morning News

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Frisco's Hall Office Park Weighing Plans for More Spec Office

By Connie Gore, GlobeSt.com

FRISCO, TX-With a banner year of leasing under way, Craig Hall plans to decide within 45 days if it's time to raise another spec building in the 1.65-million-sf Hall Office Park. In the past two months, the team has closed 289,284 sf of deals and is on track to have the park fully leased by year's end.
"We're behind the curve for the first time since we started," Hall tells GlobeSt.com. "It's by far the best leasing year and we did not expect it."

Hall Office Park, now marking its ninth year, can support three million sf. Hall's kept the "key piece"--adjacent to the Dallas North Tollway--in his land bank as a development site for taller buildings and higher density. The plan has been modified several times through the years, but now the developer says "it's getting close to where it needs to get finalized."

Hall says he's getting bids on a new building and alternatives for a couple existing ones. "In order to build future buildings, the rents are going to have to go up," he stresses. Current rents are $23 per sf to $24 per sf for the class A space; concessions are down considerably. By Hall's projections, rents need to be in the $24 per sf to $26 per sf range to support construction at today's prices. "I'm not sure how fast the market will adjust to that," he says.

Hall attributes this year's traction, in part, to larger companies' willingness to look north due to the region's demographical shift, but he says the lion's share of the credit goes to the park's corporate-style amenities package. "People realize we're no longer on the extreme, but the location of the future," he explains. "Bigger companies today have more interest in the general location than they did two, three, four or five years ago. I don't think there's an easy was to predict the economy and office leasing in Dallas. At times, we've had more than we wanted and now we don't have enough." Since the year began, 472,795 sf has been leased.

The leasing pattern has been five-year terms for smaller tenants and six- to eight-year terms for larger firms. The deals are "moderately stair-stepped," Hall says. Lately, the sweet spot's been hovering 25,000 sf, which in most cases factors out to a full floor. The park's 11 office buildings presently house 135 companies with 3,800 employees.

The latest six-year lease, Ignite Technologies Inc., fills the balance of the 128,000-sf mid-rise at 3211 Internet Blvd. The firm will move in Sept. 1 as will Sanyo Energy USA Corp., which took 29,842 sf for the long term at 2600 Network Blvd. Ignite now offices at 5910 N. Central Expressway in Dallas. Ignite was represented by Steve Thelen and Bo Bond with Dallas-based Staubach Co. Jean Farris, Hall's director of leasing, bargained its terms with James L. Gandy, president of the Frisco Economic Development Corp., and its business development director, Nancy Windham, negotiating economic incentives to set the hook.

To date this year, AmeriSourceBergen Specialty Group has been the biggest catch with two leases, totaling 213,762 sf, and 10- and 12-year terms. The Chesterbrook, PA-based company is taking all of 3101 Gaylord Parkway, which delivers in January, and picking up the 80,655-sf balance in a future addition that's penciled for a Jan.1, 2009 delivery, according to Hall.

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