ECONOMIC UPDATE
JULY 2015
Data provided by Strategic Insight Group
Intelligence Research Partner of the Fort Worth Chamber of Commerce
In the Works
Two apartment projects planned for Lancaster Avenue in downtown Fort Worth – one at the west end and
the other at the east end – received $7.2 million in tax increment financing funds Wednesday. Conine
Residential Group in Frisco and Odyssey Residential Holdings in Dallas, operating as TX Kent
Apartments L.P., plan a $26.6 million, 200-unit project called Cadillac Lofts on the former Frank Kent
Cadillac site at the southeast corner of Lancaster Avenue and Main Street. The project is expected to be
completed by the end of 2017.
Star-Telegram, July 2, 2015
Texas Christian University and the University of North Texas Health Science Center are teaming up
to open a new medical school in the heart of the city. TCU and UNTHSC have signed a memorandum of
understanding detailing a collaboration between the two academic institutions to open an M.D. school
with as many as 60 new students in 2018. About $25 million from private donors has already been
pledged to start the new medical school, said UNTHSC President Michael R. Williams. TCU Chancellor
Victor Boschini said his school has pledged to use $50 million from its endowment to support the effort.
Star-Telegram, July 7, 2015
City, state political leaders (including Governor Greg Abbott) and businesspeople made their way to Fort
Worth Tuesday for the official announcement that social media giant Facebook is opening a new data
center in Fort Worth. The data center will be built in the Alliance Corridor, in north Fort Worth.
Construction on the first phase is expected to be complete in late 2016.
Facebook’s vice-president for infrastructure, Tom Furlong, envisions potentially as many as three
buildings. “Assuming the business continues on its trajectory, we’ll be building more than one building,”
he told CBS 11 News adding, “And as the business continues to generate the need, we’ll plan to keep
building.”
She [Mayor Betsy Price] told the crowd, “The economic impact that Facebook brings with them is
amazing.” Saying that the new data center would surpass a billion dollar investment, Price spoke about
the City of Fort Worth and the people working there. “We do it bigger and better. We’re the 16th largest
city in the nation, but we take pride in knowing that our city and our community… have the best smalltown attitude anywhere.”
The new data center will be located at the corner of Park Vista Blvd. and State Highway 170 and
ultimately consist of three 250,000-square-foot buildings on a 110-acre site.
Facebook officials say the Fort Worth facility will be “one of the most advanced, efficient, and
sustainable data centers in the world.”
DFW.CBSlocal.com, July 7, 2015
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Facebook announced on Tuesday that it’s building a large $1 billion plus data center in Ft. Worth,
Texas. The facility, which is already under construction, will be Facebook’s fifth data center.
The data center will use wind power from a large wind farm that is also under construction on 17,000
acres of land in Clay County about 90 miles from the data center. By agreeing to buy the power from the
200-megawatt wind farm, Facebook helped bring the clean power project onto the grid. Facebook says
the data center will be 100% powered by clean energy.
Fortune.com, July 7, 2015
Chicago-based Yolk, which offers breakfast and lunch, is coming to Sundance Square in downtown Fort
Worth. The 5,100-square-foot restaurant is expected to open by the end of the year in the space last used
by Cowtown Diner, at 305 Main St., according to Sundance Square. Yolk, known for generous portions, a
unique and wide-ranging menu, specialty juices and a private-label premium coffee, has locations in
Chicago, Indianapolis and Dallas.
Star-Telegram, July 9, 2015
Lockheed Martin Corp., known for its high-tech fighter jets and highflying missile systems, announced
Monday that it is buying helicopter maker Sikorsky Aircraft for $9 billion.
Star-Telegram, July 21, 2015
Some heavy hitters from the business world have climbed aboard the effort to build high-speed rail in
Texas, a project that just a few months ago was threatened by opposition in the state Legislature. Fort
Worth fund manager John Kleinheinz, Dallas developer Jack Matthews and Houston entrepreneur
Drayton McLane Jr. head the list of new investors who have agreed to chip in a collective $75 million to
build the proposed Dallas-to-Houston bullet train system. “This is a really big day,” said Tom Schieffer of
Fort Worth, a former diplomat and Texas Rangers baseball club president who is a senior adviser to the
high-speed rail project.
Star-Telegram, July 23, 2015
NiteSite has confirmed plans to move into leased Fort Worth space on July 29 as the British night vision
company establishes a Cowtown presence, according to the Fort Worth Chamber of Commerce. The
York, England-based firm, which manufactures night vision firearms products, has leased 3,000 square
feet at 2574 Gravel Drive. The facility will serve as the company’s U.S. distribution center for night
vision rifle scopes, which are manufactured in the United Kingdom. The company will employ up to four
workers, initially, upon opening.
Fort Worth Business Press, July 23, 2015
Smith & Nephew Inc. has secured tax incentives from the city of Fort Worth as the firm plans to make
Cowtown the U.S. headquarters of its Advanced Wound Management division. By 9-0 vote, the City
Council on Tuesday July 28 approved proposals that pave the way for more than 200 new jobs while
saving the company thousands of dollars in taxes. Specifically, the company secured a five-year,
$250,000 incentive on the incremental real and business personal property taxes for a 55,000-square-foot
building it plans to lease at Chisholm Trail Parkway and Clearfork Main Street. To seal the deal, the
London-based maker of wound care and surgical products agreed to add 80 positions to its local staff by
Dec. 31, 2021, pushing total staffing to 250, with an $85,000 average salary for all full-time employees.
Fort Worth Business Press, July 29, 2015
HRI Properties, a New Orleans-based hotel developer, plans a $52 million Westin-branded hotel directly
across University Drive from the Modern Art Museum that will serve as the primary hotel for the new
14,000-seat multipurpose arena planned for Will Rogers Memorial Center.
Star-Telegram, July 29, 2015
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Expansions and Moves
GE Transportation said its Pennsylvania locomotive plant fell behind on its production schedule during
union negotiations and the company now plans to move more work to Fort Worth. GE Transportation said
it plans to move production of 10 Evolution locomotives to its plant west of Texas Motor Speedway in far
north Fort Worth this year and 50 more next year. GE opened the plant in 2012 and employs more than
500 at the complex, which also produces mining equipment.
Star-Telegram, July 12, 2015
On the Dotted Line
Triton Commercial, owned by Mike Karns, the owner of four restaurant chains, has bought the Kress
building downtown. The company has also acquired property on the near west side, adjacent to the West
7th residential, shopping and restaurant development. Karns’ Firebird Restaurant is working on a design
for the first floor of the Kress building, at 604 Main St.
Star-Telegram, July 6, 2015
Auto Glass Now leased 2,400 square feet at 2933 Alta Mere Drive.
Star-Telegram, July 6, 2015
Fort Worth investor Queen Shiva Llc. bought a 4,184-square-foot building at 4567 James Ave. from
Robert McClellan.
Star-Telegram, July 6, 2015
Robert Bruhn bought a 4,000-square-foot building at 3312 Stuart Drive.
Star-Telegram, July 6, 2015
Monterrey Drywall bought an 8,000-square-foot building at 3132 Bryan Ave. from Alfareed
Investments.
Star-Telegram, July 6, 2015
Christopher Cureton leased 4,000 square feet at 1150 W. Blue Mound Road for an auto dent repair store
in the Blue Mound Business Centre.
Star-Telegram, July 6, 2015
Centric Capital Partners bought a 10,000-square-foot shopping center at 5216 Camp Bowie Blvd. from
Stony River Ltd.
Star-Telegram, July 13, 2015
The 22,000-square-foot Adams Professional Office Building at 508 S. Adams St. was bought by FEB
Llc. from Heaf Llc., both Fort Worth firms.
Star-Telegram, July 13, 2015
Fort Worth-based Q Investments’ real estate arm – Q Real Estate Holdings LLC — has acquired a
388,600-square-foot large office complex in Richardson, part of the city’s Telecom Corridor. Currently
leased by Verizon, 2400 North Glenville was originally built-to-suit in 1989 for MCI by architect HOK.
Parts of the complex were remodeled as recently as 2012. The site is strategically located in the heart of
Galatyn Park Urban Village, a transit-oriented mixed-use development within Richardson’s Telecom
Corridor. Verizon will remain in the property until the fourth quarter of 2016 when Q Real Estate plans to
begin renovations to reposition the property for new tenants.
Fort Worth Business Press, July 28, 2015
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Openings
Veteran chef and caterer Katie Schma recently launched a new farm-to-table restaurant, Local Foods
Kitchen, located at 4548 Hartwood Drive in Fort Worth’s Tanglewood Village. The new eatery offers an
evolving menu of small-batch meals – including soups, salads, sweets, sandwiches and home-comfort
meals – made from local and regional, farm-raised ingredients. Schma, owner of Star Gourmet
Catering, said the menu will change monthly and menu items will include what is available at the
moment.
Fort Worth Business Press, July 14, 2015
Around Town
Facebook officials seemed a little overwhelmed by the huge Texas welcome they received Tuesday at a
groundbreaking ceremony at the north Fort Worth site where it has begun working on a massive billiondollar data center project. But city and state officials indicated that perhaps it’s Fort Worth, and Texas,
that should be overwhelmed. The data center complex, to be built at Texas 170 and Park Vista Boulevard,
just east of the Cabela’s store on Interstate 35W, will eventually have more than 100 employees, but the
economic impact will be far-reaching.
Fort Worth Mayor Betsy Price, who gave Facebook’s California representatives an enthusiastic “Howdy,
and welcome to Cowtown,” said city officials expect the data center to attract other businesses to Fort
Worth. “The future economic growth opportunities related to data centers and data warehouses are
staggering,” Price said. “We are in an enviable position to attract global leaders like Facebook, and we are
excited to welcome them to our community.”
Star-Telegram, July 8, 2015
WestBend 2 has reached completion, with Trademark Property Co. announcing the 57,000-square-foot
office building’s addition to the WestBend development in Fort Worth. Located at 1701 River Road Road
along the eastern edge of University Drive, the three-story structure boasts proximity to trendy
storefronts, restaurants, the Trinity River and Trinity Trail.
Fort Worth Business Press, July 22, 2015
Out of Town Reporting
FedEx is considering a large order for cargo aircraft from the Boeing Co. According to a report
from Leeham News and Comment, the package carrier could order as many as 50 767s and 10 777s.
FedEx has extensive North Texas operations, with its Southwest Regional Hub at Alliance Airport
in Fort Worth and a major operation at Dallas/Fort Worth International Airport. The 767 order would
be a boost to a program that currently has 35 orders in its backlog.
Dallas Business Journal, July 9, 2015
Texas billionaire Sid Bass agreed to lend Blue Bell Creameries LP up to $125 million to help the icecream maker rebound from a sweeping recall, and the deal could give the Bass family a one-third stake in
the private company. Blue Bell closed on a loan facility with Mr. Bass earlier this month and expects the
Bass family to exercise warrants to acquire 33% ownership of the company before the loan matures in
2018, Chief Executive Paul Kruse told Blue Bell owners in a letter this week reviewed by The Wall Street
Journal. Mr. Bass is a prominent Fort Worth, Texas, investor who has managed an oil-and-gas fortune for
years and was a major shareholder in Walt Disney Co.
The Wall Street Journal, July 16, 2015
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The commandant of the U.S. Marines Corps declared earlier this morning that the F-35B joint strike
fighter jet is battle ready, a milestone for the most expensive weapons program in U.S. history and for
nearly 9,000 Lockheed Martin workers who make the jets in Fort Worth. The U.S. is spending some
$400 billion to develop its next-generation fighter plane, a “joint force” fighter designed for use by the
Navy, Marines and Air Force, as well as friendly foreign forces around the world.
The Dallas Morning News, July 31, 2015
Did You Know?
Existing home sales in North Texas continued at a record-setting pace in June as the number sold passed
the 10,000 mark for the first time. Sales of single-family homes reached 10,575, a 12 percent jump from
June 2014 and nearly 1,100 more than in May, according to the latest data from the Real Estate Center
at Texas A&M University. The record month is another sign of the strengthening housing market, which
has benefited from continued job growth and low interest rates.
Star-Telegram, July 9, 2015
Most of the retail space in Dallas-Fort Worth is occupied, according to a mid-year report from the
Weitzman Group in Dallas. About 9 percent of the 192 million square feet remains available, the lowest
since 2000, the report said. Grocers are active in Tarrant County. New Kroger Marketplace stores are
planned to open this year. Sprouts, Fresh Market and WinCo are also expanding, as well as Whole
Foods, which plans to open its first Fort Worth store in 2016 at 3400 Bryant Irvin Road in the Waterside
development.
Star-Telegram, July 10, 2015
Bell Helicopter announced Tuesday the sale of five V-22 Ospreys to Japan, the first such purchase of the
versatile tilt-rotor aircraft through the U.S. government’s foreign sales program. The contract for the
Block C aircraft includes support, training and equipment. Many of the Osprey’s parts are made in the
Fort Worth area, with final assembly in Amarillo. U.S. Rep. Kay Granger, R-Fort Worth, traveled to
Japan last year to promote the Osprey to the Japanese.
Star-Telegram, July 15, 2015
American Airlines said it earned its highest quarterly profit ever as it continued to benefit from lower jet
fuel prices. The Fort Worth-based carrier said it earned a record $1.7 billion in the second quarter, almost
doubling its profits from the same period last year. On a conference call with Wall Street analysts and
investors on Friday, American Chief Executive Doug Parker said the second-quarter earnings were the
best in American’s history and possibly for all commercial airlines.
Star-Telegram, July 25, 2015
The Fort Worth-Arlington area reached 95.8 percent apartment occupancy in June, up slightly from 95.5
percent in May, according to Axiometrics, a Dallas-based apartment market research and analysis firm.
For the month, the Fort Worth and Dallas areas’ annual effective rent growth and occupancy levels
trended above those of national averages, according to Axiometrics. And employment continued to be the
primary factor. “There is absolutely no doubt in our minds that the main driver of all of this supply is
jobs,” said Stephanie McCleskey, Axiometrics’ vice president of research, commenting in a news release.
Fort Worth Business Press, July 27, 2015
Teachers at three high schools and their feeder campuses could get $2 million worth of training this
school year in math and science. The district is expected to set aside $350,000 in federal money to train
and offer instructional resources to teachers at Southwest, Diamond-Hill Jarvis and Western Hills high
schools’ STEM programs. Lockheed Martin Corp. Foundation has pledged to donate up to $1 million
in a dollar-for-dollar match if a partner, such as a private foundation, chips in.
Star-Telegram, July 28, 2015
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The Tarrant Appraisal District certified property valuations last week with little change from
preliminary numbers released a month ago. After exemptions, Tarrant County’s net taxable value is
$142.2 billion, up $6.8 billion from 2014, or a 5 percent hike…G.K. Maenius, Tarrant County’s
administrator, called the 5 percent increase in net taxable value “very healthy.”
Star-Telegram, July 29, 2015
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