Richardson, TX Economic Overview
Richardson is a vibrant and diversified business community, strategically located near the Dallas/Fort Worth Metroplex and home to the University of Texas. The city has a population of just over 108,000 and is at the heart of a significant employment center, the Telecom Corridor area. Richardson has been recognized for its economic stability and strong fiscal management. More than 5,000 business have operations within the city’s 28 square miles, making the Richardson commercial real estate market highly sought after. The city also has a state-wide reputation as a great place to play, with numerous art and cultural festivals throughout the year.
Despite declining economic performance in other parts of the country, Richardson experienced substantial improvements in its economic environment from 2005 to 2009. The city’s total assessed property value rose from $8.3 billion in 2005 to $9.5 billion in 2008. The city has performed considerably well in corporate recruitment and retention. It now hosts the largest Dallas/Fort Worth Metroplex office campus development since 1987, the Blue Cross Blue Shield development, a 15-story regional headquarters where 3,100 employees work. Other corporate relocations to Richardson include Bank of America, Yahoo, and Fujitsu Transaction Solutions. The city has diversified its business base of telecom companies with financial service firms like State Farm Insurance and GEICO. Richardson has maintained an AAA rating from S&P’s for the past seven years, placing it among the top 5.8% of rated statewide communities.
Richardson, TX Commercial Real Estate Market
A surge in mixed-use development, suburban infill, and transit-oriented development has hit the city’s eastern side in recent years. Over half of the 56 existing shopping centers and buildings have been remodeled or redeveloped over the past 10 years. Eight new centers have been built, including the Prosper Centre, CityLine Market, and other transit-oriented developments.
Downtown Richardson is currently undergoing a long-awaited rezoning initiative through its Main Street/Central Expressway Corridor, which will include incorporation of additions to the Downtown Richardson office market. This is Richardson’s original downtown and the major access route to the community, business area and neighborhoods.
The Telecom Corridor office market has historically had a significant presence of communications companies and suppliers. It the past few years, however, its business community had evolved to incorporate innovative new technologies. Its key clusters are communications, computer gaming, cleantech, cloud computing, and semiconductor.
CityLine is a recently new development in Richardson, winning the 2017 Regional Economic Development Excellence Award for the project, and has been called a “game changer” for the city and its development. CityLine offers easy access to DART, plentiful parking, and a brand new office scene. The appeal has already attracted major corporations, with 12,800 on-site employees, including State Farm Insurance’s new campus. The development has 2.5 million square feet of leased office space with 1.8 million square feet coming soon. Up to 3 million square feet of office space can be developed at CityLine.
Richardson, TX Office Sales Volume
Data provided by Yardi Matrix, for properties larger than 50K SF, which sold at over $5M.
Richardson, TX Office Transactions
Data provided by Yardi Matrix, for properties larger than 50K SF, which sold at over $5M.
Richardson, TX Commercial Inventory Breakdown
Office Spaces
Total: 15,986,432 SF
By square footage range:
- 50k to 100k SF: 3,321,137 SF / 20.77% of total office
- 100k to 500k SF: 10,285,235 SF / 64.34% of total office
- 500k to 1M SF: 1,329,510 SF / 8.32% of total office
- > 1M SF: 1,050,550 SF / 6.57% of total office
By class:
- Class A: 4,806,449 SF / 30.07% of total office
- Class B: 8,802,070 SF / 55.06% of total office
- Class C: 1,777,913 SF / 11.12% of total office
Industrial
Total: 9,834,220 SF
By square footage range:
- 50k to 100k SF: 1,471,428 SF / 14.96% of total industrial
- 100k to 500k SF: 5,005,470 SF / 50.9% of total industrial
- 500k to 1M SF: 2,244,760 SF / 22.83% of total industrial
- > 1M SF: 1,112,562 SF / 11.31% of total industrial
By class:
- Class A: 3,671,700 SF / 37.34% of total industrial
- Class B: 5,020,568 SF / 51.05% of total industrial
Office Spaces with Retail
Total: 3,188,185 SF
By square footage range:
- 50k to 100k SF: 1,403,009 SF / 44.01% of total office with retail
- 100k to 500k SF: 1,785,176 SF / 55.99% of total office with retail
Employment in Richardson, TX
Richardson is the second largest employment center in the Dallas/Fort Worth metro area. The largest employers in the area include insurance and financial services firms like State Farm Insurance, telecommunications firms like AT&T, and the education sector, including the University of Texas at Dallas. The Dallas/Fort Worth employment level has stabilized below the national average at roughly 3.7%.
According to the Bureau of Labor Statistics, the following sectors employ the most people in the Dallas/Fort Worth region:
- Trade, transport and utilities – currently employs 760,800, growing at 3.3%/year
- Professional and business services – currently employs 597,300, growing at 4.0%/year
- Education and health services – currently employs 441,000, growing at 2.8%/year
Education in Richardson, TX
Richardson is home to the University of Texas at Dallas, sometimes referred to as UT Dallas or UTD, a public research university with 133 degree programs that demonstrate academic excellence. It’s also home to Richland College, which boasts an enrollment of nearly 14,000 students. The city is served by the Richardson Independent School District (RISD) and the Plano Independent School District (PISD) for the portion of the city located in Collin County.
Commuting Time in Richardson, TX
Richardson’s transportation network is a key advantage of the city. The drive between Dallas and Richardson is easy, convenient, and takes 20 minutes or less. The city has access to:
- three major freeways,
- four DART light rail commuter stations,
- city-wide service with DART public buses,
- and non-stop freeway access to DFW International airport
Richardson Demographics
Population
- Total Population114,402
- Male Population(49.8 %) 56,934
- Female Population(50.2 %) 57,468
- Median Age36.00
Income/Financial
- Average Household Income$103,707
- Median Household Income$80,953
- Median Income Under 25$26,314
- Median Income 25-44$89,476
- Median Income 45-64$102,491
- Median Income Over 65$55,276
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