The Platinum Corridor—a.k.a. the Dallas North Tollway—is not only prime real estate for companies locally but nationally as well, panelists said during a live event Tuesday hosted by Bisnow, a commercial real estate digital media company.
Panelists and speakers—which included Frisco Mayor Maher Maso, developers and leasing and business experts—discussed the opportunities and challenges the DNT presents to companies and developers, as well as how this corridor has affected the cities it intersects.
Here are a few takeaways from Tuesday’s event:
Solving traffic congestion will take creative solutions
Most panelists agreed that traffic is a growing concern for business owners and developers along the DNT.
Maso, who was the event’s keynote speaker, said addressing traffic issues in the area will take some creative problem solving.
During a full highway closure of a portion of the DNT earlier this month, the city of Frisco hosted Edgefest, the Texas Tech Spring Football Game, Arts in the Square, the Aqua Egg Hunt and the National Videogame Museum’s one-year anniversary celebration.
To help those drivers who would have used the DNT to travel to Frisco that weekend, the city coordinated with Waze and Google to reroute drivers away from the toll road, Maso said.
Other solutions cities should consider are mass transit, traffic signal timing and driverless technology, Maso said.
“Just adding pavement is not going to solve the problem,” he said. “Preston Road is six lanes in Frisco…We can’t make it nine lanes. That’s not the only solution.”
Affordability is top of mind for businesses
Businesses want an address near the DNT, but it comes with a price. Experts say demand and amenities are driving up office rent rates to an all-time high along the corridor.
Kim Butler, director of leasing for Hall Group, said the cost for office space is the main reason prospective tenants choose not to lease at Hall Park in Frisco.
Many office tenants are expecting more amenities from office space, which is contributing to the rising rent rates, said Greg Fuller, president and COO of Granite Properties.
“The 30 percent rise in rental rates that everybody likes to talk about, a good half of that has been what tenants expect today and what they really desire,” he said.
Rising costs hitting more than just businesses
The influx of businesses moving in along the DNT in Frisco and Plano is creating a housing demand as employees move into the area, speakers said.
This housing demand is driving up sales prices, which is affecting the demographics in Frisco, Maso said.
The median price for a new home in Frisco is more than $500,000, whereas the median sales price was more than $300,000 for a new home in 2014, Maso said.
“What does that mean? It means a shift in demographics,” he said, adding that young families who were buying homes were increasing the elementary school population in Frisco ISD. “Today, the new homebuyer in Frisco is now an older couple with older children.”
Tourism is the next big revenue stream
Cities generate revenue through property and sales taxes, Maso said. When a city reaches build-out and its property tax revenue flattens, its leaders need to find a new way to generate more revenue, he said. One solution is tourism.
Frisco has seen a new wave of events since the opening of The Ford Center at The Star, which is situated along the DNT. These events include sporting events, concerts and conventions.
Out-of-town visitors drive up sales tax revenue and also attract hotels to the area, Maso said.
NewcrestImage Management CEO Mehul Patel said hotels can thrive off of tourists who are in town for a special event. More events hosted at major venues along the DNT would help support the influx of hotels being built in the area. NewcrestImage is building four hotels at Frisco Station near the DNT and John Hickman Parkway.