Twenty-sixteen was another strong year for the Dallas-Fort Worth economy and the 
commercial real estate industry, as tenants leased 13.9 million square feet—above the long-term average even after the astounding growth seen in 2013 through 2015.
We are now entering the seventh year of an unprecedented economic boom that has been extended to extra innings largely thanks to corporate relocations to Plano, Frisco, Westlake, and other parts of our ever-expanding suburbs. With the area’s economic momentum envied by nearly every other market in the country, I am often asked by colleagues and clients for my opinion on what could stunt our region’s sustained growth. Although there are many potential diversions, a lack of sufficient transportation infrastructure to meet commuter demand to and from Collin County is my most immediate concern, and one that is shared by many in the North Texas business community.
To sustain and build upon the prosperity we’ve seen over the last six years, I hope public and private stakeholders will work together to address this paramount challenge. Just as Charles Dudley Warner once said, “Everybody talks about the weather, but nobody seems to do anything about it,” let’s not let this issue remain something that we just talk about.
Thanks to a significant talent pool, best-in-class new office product set to deliver, below-average office rents (when compared nationally), low construction costs, a central time zone, and a business-friendly regulatory environment, Collin County will see 75,000 new jobs arriving in the next 24 months, a population expected to nearly triple by 2054, and nearly 16 million square feet of rentable building area that is currently under construction.
In spite of these promising characteristics and market trends, major thoroughfares in Dallas County and Collin County north of downtown make up a sizable portion of TxDOT’s most congested roadways in Texas for 2016. In addition, Collin County has the second-longest average commute time in North Texas. Regional plans analyzed by the Collin County Business Alliance show that the Dallas-Fort Worth area will face a transportation funding shortfall of almost $300 billion over the next 20 years. And Collin County projects will require investment of almost $1 billion just to deal with expected congestion over the next five years.
Conservative estimates assume Collin County’s population will grow to between 2.5 to 3.4 million over the next 40 years, surpassing Dallas County’s current population of 2.5 million. However, Dallas County today has nearly four times Collin County’s number of limited access roadways that are key for moving along high-speed commuter traffic.
During a recent presentation to the Plano Chamber of Commerce, Collin County Commissioner Duncan Webb noted that U.S. 75 and Custer and Preston roads already see daily demand beyond their current capacities, with additional concern for traffic on the President George Bush Turnpike and the Sam Rayburn Tollway as the population continues to grow.
These are alarming statistics and projections that threaten the quality of life for North Texas residents and the ability of businesses in the region to attract jobs and retain top talent. Any decision-maker for a large corporation will tell you during the site selection process: a potential office market’s labor pool, regulatory environment, and available product all lose appeal if transportation within the region is subpar. For employees, commute times have become an important consideration when selecting which company they will work for; nearly all of my clients weigh this strongly when considering an office move.
In November 2015, a constitutional amendment was passed by Texas voters to dedicate additional monies to the State Highway Fund starting in September 2017, and there seems to be renewed bipartisan enthusiasm for public infrastructure projects at a national and local level. Collin County Commissioner Webb has called on county residents to back construction of additional limited-access roadways and to expand U.S. 380 and State Highway 78.
To ensure that North Dallas’s infrastructure challenges are addressed and that taxpayer funds are most effectively applied, I encourage fellow executives to closely follow this development and to participate where and when appropriate. Likewise, I hope our representatives implement policy after taking into account feedback from local business leaders.
Frank McCafferty is executive managing director and co-branch manager for Savills Studley in Addison.
