The LBJ Freeway area is becoming a burgeoning area for commercial real estate as the LBJ Express Project comes to an end. The $2.7 billion construction project, set to be complete by the end of 2015, was first started to relieve congestion on the busy freeway by widening the lanes and adding toll express lanes.
The project has turned the LBJ Freeway and surrounding areas into a rejuvenated hotspot for real estate in North Texas. Lease rates and vacancies remain low, making it a prime location for expansion. Texans can expect to see a substantial amount of redevelopment along and around the LBJ Freeway, particularly between Preston Road and Midway, in the coming years.
The area surrounding the LBJ Freeway includes the cities of Richardson, Garland, Farmers Branch, and Mesquite. The LBJ Express Project employed over 2,000 Texans and even included a loyalty program for the businesses surrounding the freeway. The loyalty program gave consumers discounts for shopping, dining, and doing business around the construction site.
Business Space in LBJ Freeway:
As the LBJ Freeway project wraps up, CRE experts foresee the area undergoing a rebirth. The average asking lease rate is still low when compared with other submarkets like Uptown and Preston Center. However, the rental rates are increasing and vacancies are decreasing. In 2014 LBJ Freeway experienced one of the largest increases in lease rates in North Texas, and the rates are expected to rise as the area is revitalized.
While the ongoing construction project proved to be a hurdle for retail leasing activity, brokers are starting to see a shift. Experts say that retail activity along the LBJ Freeway will continue to increase as the construction project reaches its end. With the Valley View Mall redevelopment project and other revitalization plans for the future, the areas surrounding the LBJ Freeway will also continue to increase in value.
A few Fortune 500 companies are headquartered around the LBJ Freeway including the Fluor Corporation, Atmos Energy, and Texas Instruments. Corner Bakery, ClubCorp, Brinker International, and Chili’s are all also located around the LBJ Freeway.
Facts About LBJ Freeway:
The LBJ Freeway reconstruction project was one of the biggest and most intricate reconstruction projects in Dallas to date and only took 5 years since it was all worked on concurrently. The entire stretch of freeway was under construction on a continuous basis.
The LBJ Express Project widened the existing lanes, added paid lanes underneath the highway, and revamped the frontage roads. It is said that with the addition of the toll roads, traffic will always flow at a speed of 50mph regardless of the time of day.
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