July 20, 2017

From Allen To The Colony, How Class-A Developments Are Changing The 121 Corridor

BISNOW: From Allen To The Colony, How Class-A Developments Are Changing The 121 Corridor

by JULIA BUNCH

From build-to-suit offices in Allen to first-in-region retailers in The Colony, the 121 corridor is ripe with Class-A developments. With increased competition, developers are trying to differentiate more than ever. The Sam Rayburn Tollway has existed in its entirety for five years, and it is driving the robust real estate market. “[Sam Rayburn Tollway] is turning into the great connector of people. It connects a lot of communities, like McKinney,

The Sam Rayburn Tollway has existed in its entirety for five years, and it is driving the robust real estate market. “[Sam Rayburn Tollway] is turning into the great connector of people. It connects a lot of communities, like McKinney, Allen and Frisco, that were otherwise isolated. [Highway] 121 allows them to speak to each other,” Kaizen Development Partners CEO and Managing Partner Derrick Evers said.  Kaizen owns five sites in Allen’s Watters Creek. One Bethany East broke ground in February and will deliver 125K SF of office space in Q1 2018.  “When we first came to Allen, we thought we’d have a log of 3K to 7K SF tenants. We’re pleasantly surprised that we have corporate users, tenants that are looking to take larger blocks of 10K, 20K and up to 90K SF,” Evers said.

Kaizen will break ground on a 145K SF build-to-suit office for one such larger user in August. NetScout will move 500 employees into the three-story office with structured parking in August 2018. Kaizen is courting other BTS users for the remaining three sites.  Even if proximity to other 121 corridor developments is not unique to Watters Creek, it is certainly a recruiting tool. “In the past, Allen didn’t have a lot of product, but now we have a very aggressive Allen Economic Development Corp. Users who want to go into Class-A space, they consider this location strategic,” Evers said.  All of Allen falls into Legacy West’s desired trade area.

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