Real estate leaders in North Texas are navigating a complex market defined by rising construction costs, high interest rates, and evolving tenant demands. At a recent summit in Dallas, top developers outlined new strategies focusing on technological innovation, vertical integration, and a hospitality-driven approach to attract and retain tenants in one of the nation's most competitive markets.
The discussions, held on October 9, 2025, brought together key figures from the development, investment, and architecture sectors to address the challenges shaping the future of Dallas-Fort Worth's built environment. The consensus was clear: adaptability is paramount for survival and success.
Key Takeaways
- Developers are adopting vertically integrated models to control costs, quality, and supply chains.
- Innovative materials like mass timber are being used to shorten construction timelines by up to 25 percent.
- The tenant experience is now a primary focus, with developers adding hospitality-inspired amenities to office and residential projects.
- Artificial intelligence is slowly being integrated for market analysis, though data security remains a concern.
- Despite challenges, Dallas-Fort Worth remains a highly attractive market for capital partners due to strong corporate migration and population growth.
Navigating a Challenging Capital Market
The financial landscape for new development has shifted significantly. Panelists at the North Texas Real Estate Summit, including leaders from Trammell Crow and Crow Holdings Development, described a more cautious environment where capital is deployed selectively. Higher interest rates are directly impacting project valuations and feasibility.
Despite these headwinds, the Dallas-Fort Worth metroplex continues to be a magnet for investment. Joel Behrens, managing director at Trammell Crow, and Cody Armbrister, senior managing director at Crow Holdings Development, noted that the region's consistent influx of corporate relocations and population growth keeps it on the radar for both institutional and private equity partners.
However, deal sizes and replacement-cost considerations are under intense scrutiny. Developers are now forced to be more strategic, ensuring that new projects not only meet market demand but also offer a clear return in a high-cost environment.
A Persistent Advantage
Even with rising costs, industry leaders confirmed that Texas maintains a competitive advantage over coastal markets like California and New York. Lower relative building costs continue to make large-scale projects more viable in the state, fueling the development pipeline despite national economic pressures.
Innovation in Construction and Operations
To combat rising costs and labor shortages, developers are fundamentally changing how they build. One of the key strategies discussed was vertical integration, a model where a single company controls multiple stages of the development process.
Greg Coutant, president of development at StreetLights Residential, explained his company's move toward a fully integrated model. By bringing architecture, structural engineering, design, and procurement in-house for certain projects, StreetLights has been able to reduce costs, improve quality control, and mitigate supply chain disruptions.
The Rise of Mass Timber
Material innovation is also playing a crucial role. Cody Armbrister highlighted Crow Holdings' new development in Frisco, Southstone Yards, which was built using cross-laminated mass timber instead of traditional steel or concrete.
While the upfront cost of mass timber can be higher depending on market conditions, its benefits are substantial. Armbrister noted that the material helped cut project delivery timelines by as much as 25 percent. This speed is a significant financial advantage in a high-interest-rate environment.
Environmental and Sourcing Benefits
Mass timber also offers advantages in domestic sourcing and manufacturing relationships. Furthermore, its environmental, social, and governance (ESG) benefits are a major draw for tenants with sustainability goals, making properties built with it more attractive to a specific mix of environmentally conscious companies.
The New Priority: Tenant Experience
In the age of hybrid work, simply providing office space is no longer enough. The summit reinforced a universal theme: location and tenant experience are more critical than ever. Developers are now competing to create environments that employees want to commute to.
Paul Bennett, senior managing director at Granite Properties, moderated a discussion that emphasized a hospitality-inspired approach. This includes features like premium lobby designs, state-of-the-art wellness centers, and even recreational amenities such as pickleball courts.
This trend extends beyond individual buildings. Mixed-use and transit-oriented developments are gaining significant traction. Projects that successfully integrate lifestyle, entertainment, and retail components create a vibrant community that attracts both residential and commercial tenants.
Technology's Growing Role
The real estate industry is also beginning to embrace artificial intelligence. Developers are using AI tools for specific tasks like analyzing lease data, tracking concessions, and conducting competitive market analysis. These early use cases are already improving operational efficiency and helping leaders make more accurate, data-driven decisions.
However, full integration remains on the horizon. Panelists expressed that concerns over data security present significant hurdles to widespread adoption. As these issues are addressed, technology is expected to play an increasingly central role in every aspect of development, from site selection to property management.
Lessons from an Unlikely Source
The event concluded with a unique perspective from the world of college athletics. Damon Evans, athletic director at Southern Methodist University (SMU), drew parallels between navigating the changing landscape of the NCAA and the real estate market.
Evans highlighted how long-term planning and a willingness to adapt to new economic structures—such as SMU's move to the Atlantic Coast Conference (ACC)—are principles that apply equally to both sports and property development.
He emphasized the importance of brand cultivation and community engagement in the competitive Dallas market. Just as SMU invests in the fan experience and strategic partnerships to elevate its profile, developers must invest in amenities and community-building to make their properties stand out.
As the North Texas real estate market continues its transformation, the path forward requires a blend of innovation, collaboration, and strategic adaptation. By focusing on sustainable solutions, embracing new technologies, and reimagining the tenant experience, developers can position themselves and the Dallas-Fort Worth region for continued growth and long-term success.
