Where there’s an urban core, there will be Millennials. Dallas-Fort Worth (DFW) is no exception. Its downtown is teeming with 67,000 Millennials who comprise 51 percent of the immediate population.
Millennials, however, are a large and diverse group – as soon as you paint them with a single brush, you may have already missed identifying them clearly. In terms of preferred locations, they have shown they are willing to eschew the urban core for the suburbs if the ingredients are right.
“Most people would tell you that Millennials are pretty much tethered to urban cores around the country,” said Walter Bialas, JLL’s Director of Research in Dallas. “However, Dallas is a good example of why that is not necessarily the case as we see them spreading out to be near good jobs and growing job opportunities.”
In addition to job proximity, they are looking for that elusive integration of a live, work and play environment that feels authentic.
“Each submarket has its own style of infrastructure, amenity base, real estate products and companies that drive its desirability,” said Hines Senior Managing Director Rob Witte. “Each behaves differently related to rents, occupancy and overall demand.”
DFW is home to more than 40 of Texas’ 100-plus Fortune 1000 companies. These companies form a corporate infrastructure that helps anchor the region for both large and small companies in the urban core and the suburbs. And it’s no coincidence that the three largest clusters of Millennials are centered around DFW’s concentrations of Fortune companies.
“Many Millennials have relocated to DFW primarily for job opportunities, some of which are located in the suburbs,” said JLL Managing Director Jeff Price. “With so much employment based in dense job centers, we have seen the development of Millennial enclaves.”
For instance, near Las Colinas, a diverse corporate suburb, there are 12 Fortune 1000 companies and a whopping 32,000 Millennials, according to JLL’s analysis of age and lifestyle. That compares to the 41,000 Gen-Xers that live in Las Colinas. Likewise, in the greater Legacy/Frisco area there are 23,000 Millennials, or 13.1 percent of that area’s population, and six Fortune 1000 companies.
Added Witte, “It is critical to success in the real estate business in large cities like Dallas to fully understand each submarket and its attributes, and how an opportunity could perform within that submarket.”