Texas economy

The economy of Collin County, Texas is changing and diversifying as new business users emerge

Pictured is a rendering of one of the amenity centers in a subdivision of Legacy Hills, a 3,200-acre development in Celina. In addition to 7,000 single-family homes, the development will house over 4,000 multi-family units, 100 acres of commercial space, and multiple other outdoor features and uses, all designed to meet the needs of Collin County’s rapidly growing population.

By Jim Breitenfeld, CCIM, President, Sidecar Commercial Real Estate

As Collin County continues to see massive residential developments in markets like Anna, Celina and Melissa, as well as major redevelopments of existing shopping and dining destinations, a closer look at the area’s economic drivers reveals a shift significant in the types of industries that drive demand for new business ventures.

Housing remains a critical need for all of North Texas, one of the fastest growing regions in the country. With this comes a demand for revamped retail, dining and entertainment options that include a healthy mix of necessity and luxury users, as well as a basic demand for office space.

Jim Breitenfeld, Sidecar Commercial Real Estate

Jim Breitenfeld, Sidecar Commercial Real Estate

The latter is already well supported by the many company relocations and regional labor consolidations that have occurred in the region over the past five to ten years.

But these needs are quite relevant to any region experiencing rapid and substantial employment and population growth. In addition to this activity, we are now seeing new types of commercial tenants targeting Collin County. These include life sciences/biotechnology, supply chain/logistics, and specialist healthcare uses.

According to data provided by the United States Bureau of Labor Statistics and analyzed and published in the Collin County Market Report from Sidecar Industry InsightsCollin County’s workforce at the end of 2021 totaled approximately 582,000 and its “economic base* was distributed among 192 industries (by six-digit NAICS code).

Industry Breakdown

The top four emerging industries in the catchment area based on share of local displacement – ​​defined as a change in local industry employment that contributes or detracts from total local employment growth – are: stock brokerage, non-residential poured foundation contractors, freight arrangement and kidney dialysis
centers.

These Collin County industries experienced employment growth ranging from 68.5% to 262.2% between 2017 and 2020, while none of these industries exceeded 7.5% employment growth. employment nationwide during the same period. Each of these industries continues to create jobs today.

Real estate developers have responded to the demand of these new types of users with a multitude of projects. A review of property data compiled by the CoStar Group reveals many proposed projects and sites under construction.

Major regional and national developers with active healthcare projects in Collin County include Harrod Healthcare Real Estate, which has development at Spring Creek Parkway and Parkwood Boulevard in Plano; Dallas-based Caddis, whose Frisco Medical Pavilion II is underway in North Frisco; and Kansas City-based VanTrust Real Estate, which is developing Phase II of a larger medical practice project within the planned Craig Ranch community in McKinney.

Local developers such as Wynmark Commercial and Huffman Builders are also active in bringing new properties to market. An example of the construction proposed by Wynmark to meet the needs of Healthcare Users is an 18,000 square foot medical office building located in the northeast quadrant of Panther Creek Parkway and Hillcrest Road in Frisco.

With a typical floor area of ​​9,000 square feet and rents starting at $30 per square foot on a triple-net basis, the project will add affordable and flexible space for offices and medical users. Construction is expected to begin in December with occupancy expected in the third quarter of 2023. Space in this and other Wynmark and Huffman projects can also be purchased as condo units, providing a unique alternative companies and practitioners who wish to own their premises.

For fast-growing Melissa, Melissa Wellness Village is a proposed project that will add approximately 75,000 square feet of space to the local offering in six buildings.

In terms of supply chain/logistics, as well as other industrial leasing subcategories, there is no shortage of development activity to meet Collin County’s ever-increasing demand. Blue Star Land, Jerry Jones’ development and holding company, continues to build Star Business Park in North Frisco, with two buildings proposed in the near future. Ranging in size from 76,480 to 132,054 square feet, the facilities are designed to meet the needs of users with varying size requirements.

Supported by the growing regional importance of McKinney National Airport and rapid development along the State Highway 121 corridor, McKinney has multiple projects with multiple buildings each for industrial space seekers, including McKinney National Business Park, McKinney Airport Trade Center and McKinney 121.

Other projects to watch in the industrial space that show several proposed or planned buildings include Technology Park 121 in Allen; Lookout Logistics Center in Richardson; Wylie Logistics Park; Anna Industrial Park; and Prosper Business Park. These last two developments are well suited to small industries
users.

Other emerging industries that are seeing strong job growth throughout Collin County are largely tied to residential development – ​​electrical wiring and equipment suppliers, roofing contractors, title insurance companies, and lumber wholesalers.

This finding is hardly surprising. The area offers a healthy supply of land for development in attractive suburban settings that appeal to residents who no longer need to commute to Dallas, as well as those who work in the various fast-growing office clusters of Plano, Frisco and McKinney.

— This article originally appeared in the August 2022 issue of Texas real estate business magazine.

*Economic base: Industries were analyzed for their concentrations and their contribution to the local economy to determine the economic base. Base industries are identified by finding industries with a positive base employment. Industries that meet this criterion produce goods and services beyond the needs of the local market and therefore bring capital to the local market. Core industries can also be referred to as export industries, with other industries referred to as support industries. Support industries relate to locally produced and consumed goods and services.