Frisco housing boom spurs retailers

City officials and community leaders in Frisco expect a wave of new retail possibilities to follow the recent housing explosion in the area.

Residential and retail development runs in cycles, and with housing developments taking shape at a rapid pace for the past couple of years, retail is poised to take another step forward, said John Lettellier, director of the city's Development Services.

"Generally you see about 2 and a half years of residential growth—strong residential growth—and then the retail starts to come," Lettellier said. "[Retail growth] is going to be taking off soon, maybe by the end of this year, early next year."

Lettellier said while the city issued about 1,600 single-family home permits in 2012, this year permits are on track to reach about 2,300 to 2,400.

Retail follows rooftops

Jim Gandy, Frisco Economic Development Corp. president, said most real estate development works in cycles, and those growth cycles may not be as strong from one to the next.

"We are seeing certainly a tremendous increase in housing development in Frisco, and that's going to be very attractive to retailers looking for emerging markets where there is significant retail development," Gandy said.

Housing developments are "extremely critical" in attracting retailers—both what is already built and plans for future development.

"Real estate developers looking to do commercial development from a retail perspective generally say that retail follows rooftops," Gandy said. "So as you have more rooftops, you obviously have more people, and there is a stronger market for retailers in a retail trade area."

Retailers do drive time studies to determine the demographics within a specified distance, whether it is five, 10 or 15 minutes from the proposed development.

The FEDC uses similar studies to recruit developers and retailers, Gandy said.

The FEDC focuses its efforts on attracting developers and big-box retailers, such as Target, Wal-Mart, Lowe's Home Improvement and mall anchor stores.

Gandy said generally, when a big-box retailer is established, smaller retail stores and restaurants will follow and benefit from the traffic drawn by the larger business.

Housing trends

The eagerness builders have for finished lots is the strongest Frisco has seen since 2005 or 2006, and retail development is closely tied to that residential growth, said Matthew Kiran with Rex Real Estate, based in Frisco.

"The old adage of retail follows rooftops will dictate what gets built," Kiran said. "The longer and stronger the residential run, the higher the probability that we will see several significant retail or mixed-use projects develop."

Provided interest rates remain at or near the levels of the past several years, Kiran said he expects home sales to remain strong and wouldn't be surprised if Frisco maintained its level of residential growth for about the next five years.

"Preston Road, the Dallas North Tollway and the 380 corridor sites are being closely monitored by both retail developers and retailers," Kiran said. "We would venture to say that we will first see restaurants, entertainment uses and possibly a couple large format big-box retailers in the first wave."

Prices continue to rise

Jeff Cheney, a Frisco City councilman and real estate broker associate with Keller Williams Realty, pointed to Frisco's continued home price increase and continued growth in building permits as measures of Frisco's housing market strength.

"In 2009, we dropped to 921 residential permits, which would be quite a few for most communities," Cheney said. "This year we anticipate approximately 2,500 building permits, with August being our best month in over seven years, with 230 permits issued."

He attributes the growth to an increase in the nationwide housing market because of economic improvements, low interest rates and home prices. Cheney also mentioned the strength of Frisco ISD along with community amenities and a low tax rate.

"I expect pricing to continue to grow in Frisco," the councilman said. "Frisco is generating a great deal of buzz throughout North Texas with exciting projects, such as the Cowboys headquarters and practice facility, great shopping, as well as entertainment options."

He said he expects residential permits to stay at about 2,500 for the next three to five years.

"In addition, we are only about 50 percent developed, so we have ample space to take advantage of the booming economy with exciting new residential and commercial developments," he said.

By


MOST RECENT

Located at the south end of Teel Parkway, the 1135 Hike & Bike Trail will now be part of Iron Horse Trail. (William C. Wadsack/Community Impact Newspaper)
Frisco approves names for 3 neighborhood parks, 2 connected trails

Frisco City Council approved names for three neighborhood parks and two city trails during its Dec. 1 meeting.

The Texas Higher Education Coordinating Board has launched a campaign to address declining college enrollment numbers across the state since the pandemic started. (Courtesy Pexels)
Texas Higher Education Coordinating Board launches campaign to boost college enrollment

The decline in college enrollment across the state of Texas has prompted several agencies to partner up and create online resources for students and counselors.

Frisco ISD is slated to spend roughly $822,000 on blue strobe lights to enhance security systems. (Elizabeth Ucles/Community Impact Newspaper)
Frisco ISD to install blue strobe lights as security enhancement

Upon the request of campus administrators, Frisco ISD is planning to spend approximately $822,000 to install blue strobe lights on each district campus to visually alert students and faculty in lockdown situations.

As of Nov. 30, patients confirmed to have COVID-19 filled 16.1% of hospital beds in Trauma Service Area E, which includes Collin, Denton, Tarrant and Dallas counties among others. (Courtesy Adobe Stock)
North Texas hovers above key COVID-19 hospitalization threshold as further restrictions loom

North Texas businesses could face additional restrictions—including the closure of some bars—if area hospitals do not see a reversal in the number of COVID-19 patients within a matter of days.

Meals on Wheels Collin County expects to serve about 300,000 meals to homebound seniors and disabled adults throughout the county during 2020. (Courtesy Meals on Wheels Collin County)
Meals on Wheels expects to serve 300K meals in Collin County this year

Meals on Wheels Collin County is on pace to provide 300,000 meals this year to nearly 2,000 seniors.

Artio Birth Care opened in October at 614 S. Edmonds Lane, Ste. 205, Lewisville. The education center offers classes and groups for people preparing for childbirth. (Courtesy Artio Birth Care)
Artio Birth Care opens in Lewisville, plus 7 more DFW business updates

Here are eight recent business updates from across the Dallas-Fort Worth area.

COVID-19 patients occupy around 15% and 10% of hospital beds in Denton County and Collin County, respectively. (Community Impact staff)
Denton County COVID-19 hospitalizations hit 15% of beds; Collin County approaches 10%

For the fourth day in a row, COVID-19 patients have occupied at least 15% of hospital beds across Denton County.

D'Ambrosio's #1 Pizza Pub will offer customers a friendly environment to enjoy a more contemporary style of Chicago deep-dish pizza. (Courtesy Adobe Stock)
D'Ambrosio's pizzeria opens in Grapevine and more DFW news

Read the latest business and community news from the Dallas-Fort Worth area.

99 Ranch Market has teamed up with Instacart to offer rapid grocery delivery services at stores nationwide. (Courtesy 99 Ranch Market)
99 Ranch Market in Frisco now delivering with Instacart

99 Ranch Market is now offering direct delivery from the store via Instacart.

The Omni PGA Frisco Resort is scheduled to open in spring 2023. (Courtesy Omni PGA Frisco Resort)
BEYOND THE GAME: PGA Frisco creating destination 'whether you're a golfer or not'

While the new Professional Golfers Association of America development in Frisco aims to make the city the home of golf in America, it will also have appeal for those unfamiliar with birdies, bogeys and mulligans.

The food hall adjacent to the Frisco Fresh Market will open in early 2021. (Elizabeth Uclés/Community Impact Newspaper)
Food hall coming to Frisco in 2021 set to be ‘pandemic-proof’

Frisco Mayor Jeff Cheney said the project will be “a big win for the city” and that it will tie the downtown, Frisco Square and The Rail District areas into one large entertainment district.

The $8.5 million sales tax allocation Frisco received in November was more than a 4% increase as compared to the same month a year ago. (Community Impact staff)
DATA: Frisco's latest monthly sales tax revenue up more than 4% year over year

The $8.57 million sales tax allocation for Frisco was based generally on purchases in September, the Texas State Comptroller’s Office reported Nov. 12.