Above is a news paper article published in the Dallas Morning News on April 25th.....last Friday. The article was about job growth and how it was effecting new commercial development in the Dallas area. The charts above depict new development in Industrial, Office, and Apartment construction from 2011 to present.
In the Dallas area, Industrial development increased from about $2 million in 2011 to $16.5 million, about 800.25%. Office development increased from about $1 million to $5.9 million, about 500.9%. Apartment construction increased from 5,000 units to about 26,971 units, about 539%. The source data was from Cushman Wakefield MPF Research. Strangely, retail development was not reported, however I will address retail below.
I don't think its necessary to get into a very deep discussion on Rowlett's performance when compared to the above stats for the Dallas area in general. Let's look at Office development, first. Rowlett had a couple of office buildings that completed at about the same time the above charts started. Therefore, all the planning started before. I think the developers accurately forecast the Dallas market in general, but probably missed the Rowlett market by a considerable margin.
The office building down by Dalrock Road and I-30 never did rely on Rowlett tenants. That building's market was clearly aimed at I-30 and the lakeview ambiance. It apparently worked. I don't know their exact occupancy, but their parking lot is full every morning. The other office building was clearly aimed at Rowlett tenants. It is right in the middle of main "stuff." I really don't know much about that building. It is a rather eclectic design. I am not sure what it's supposed to look like, but I would not be surprised to see some sheets, pillowcases, and underwear stretched on a clothesline across the front. It just seems like a clothesline would fit. I have no idea what the occupancy is. We have other fairly new space that could be either retail or office. However, much of that space is still vacant after being built for quite some time. I think there is enough empty space to suggest that the office/retail market is a little "soft" in Rowlett. However, there is a modest amount of "pre-leased or owned" retail space being constructed along Lakeshore Parkway. It is important to note that all this space is on Lakeshore Parkway or a small amount on Liberty Grove, just outside Waterview. It all equals about the right amount of new development that one would expect from Dallas "spillover." In other words, it was going to happen no matter what Rowlett did or did not do to help development. Interestingly, no commercial development is happening near the lake, DART, or the tollway. DART was the last arrival, and its been here a year. However, recently two apartment projects are contemplated along the shoreline between Rowlett and Rockwall. Another is being planned along the border of Sachse.
Industrial and Apartment development is easy to analyze. Other than remodels, none has been done, to my knowledge anyway, altho some apartments are planned.
So........Rowlett office development is a little fuzzy. Retail development still has a lot of "spec" space sitting empty. Industrial is practically nil. Apartments are in the planning stage. This performance is less than spectacular when compared to the Dallas area increase of Industrial development of 800%, increase of Office development of 501% and Apartments of 539%. Our surrounding cities of Murphy, Sachse, Wylie, and Rockwall have contributed heavily to the Dallas numbers above. They're "blowin' and goin."
So........under any yardstick I can find, we ain't doin' so well. Did you ever ask yourself, "Why? There is a reason. It won't be Rowlett's location anymore.
I will "post" part two later today.