John Zikos: The Colony is Red Hot

Nov 15, 2013

D Real Estate Daily - November 15th, 2013

It’s great to see certain submarkets really heating up in retail again. There are several areas in North texas where there is strong retailer interest, where space is hard to find, and where there are several new developments in the works. Nowhere does this seem to be more true than in The Colony.

Along State Highway 121 from FM 423 to the Dallas North Tollway, almost every available tract of land is in play with either developers or investors. At the heart of this activity is Nebraska Furniture Mart. The furniture store itself will have more than 560,000 square feet of retail showroom in its 1.6 million-square-foot building, Phase I of the Grandscape development, which, at build out, calls for 3.9 million square feet of retail, entertainment, and dining options on more than 400 acres of land.

Furniture, mattress, and home furnishings stores are all positioning themselves along this corridor to take advantage of the super-regional draw that Nebraska Furniture Mart will provide when it opens its doors in 2015. Some are even planning multiple stores on both sides of the freeway, hoping to capture people coming from either direction.

Hotels and restaurants are getting in on the act as well. Several hotels have purchased sites along the frontage roads, and dozens of restaurants are competing for pads and space in existing and proposed new developments.

Top Golf’s new location at State Highway 121 and Blair Oaks is also attracting attention. Spec’s has opened a new superstore in front of Top Golf, and Peter Piper Pizza is under construction next door to Spec’s. Also in front of Top Golf, a developer has a 2+ acre tract under contract for a strip center, and another retail developer has the 12 acres adjacent to that under contract.

Across State Highway 121 there are several pads under contract, and at least three new strips planned. Kroger has a new store planned at North Josey Lane and S.H. 121, and at least two movie theaters are vying for locations along the corridor.

In two years, The Colony will look entirely different. It is exciting to witness the activity right now that will be responsible for the dramatic change. It’s good to be The Colony right now, and it’s good for the market to be hot!

John Zikos is a partner at Venture Commercial Real Estate. Contact him at jzikos@venturedfw.com.