Dallas-Fort Worth's population grew faster than any other metro area between 2006 and 2007, adding 162,250 new residents, according to new figures from the U.S. Census Bureau. That growth pushes Dallas-Fort Worth into the fourth spot on the list of America's largest metros with a population of 6.2 million, and growth from 2007-2012 is projected at 9.65%.

The area's relatively low taxes, affordable land and abundant workforce have proven powerful draws. Dallas is home to 12 of the Fortune 500, including No. 2-ranked Exxon Mobil Corp. But oil is a bit player in this diversified economy, which is driven by finance, accounting, health care and distribution services. On the jobs front, local employers have maintained their hiring pace. The area's unemployment rate is still consistently below the national average and many believe it will survive the current economic downturn better than any other area of the country.

The local office and apartment markets are showing signs of continued health. New York-based research firm Reis projects the office vacancy rate for Dallas properties to drop from 20.6% in the first quarter of 2008 to 17.2% by 2012. Apartment vacancies have dropped from 8.3% in 2006 to 6.9% in the first quarter.

Many local observers continue to believe in the city's ability to attract more residents and continue its growth streak. Dallas has always been considered an achiever city and many believe it's starting to mature.

ZONING GETS AN OVERHAUL
One attitude that has changed over the past 20 years is the city's willingness to welcome development opportunities. In fact, the city is now undertaking the first major overhaul of its zoning codes to encourage more pedestrian-friendly, mixed-use development as part of a citywide vision.

North Texas is projected to grow by about 4 million residents to 9.1 million by 2030, and many of those residents will settle in Dallas-Fort Worth. This projection was not lost on city leaders and a comprehensive land-use plan dubbed “forward Dallas” was adopted by the city in 2006. At its core, the plan provides a road map for consistent planning, zoning and design.

City officials believe the changes will help revitalize certain urban areas and create new neighborhoods, including those around DART light-rail stations, by offering more flexible zoning options that allow a variety of uses. The Dallas City Council is scheduled to vote on the zoning proposals this summer.

Ahead of the zoning changes, downtown Dallas has witnessed a residential rebirth of sorts. According to the Downtown Dallas Association, more than 3,800 people now live in the 1.3-square-mile area bordered by the downtown freeway loop (Interstate 45, U.S. 75, I-30, I-35E and Woodall Rodgers Freeway).

The North Central Texas Council of Governments suggests that number could increase to more than 10,000 by 2010. “Downtown Dallas may change more over the next 30 years than any other area of its size in the region,” the group said in a recent demographic forecast.

Also creating a catalyst for downtown growth is the long-planned redevelopment of the Trinity River flood area just to the south. The city is kicking in $28 million to help fund a $115 million bridge to link West Dallas and the close-in community of North Oak Cliff to downtown. The bridge is designed by Spanish architect Santiago Calatrava and set for a 2009 completion.

VICTORY FOR THE HOME TEAM
Just north of downtown, one of the city's largest mixed-use developments, Victory Park, celebrated the 10th anniversary of its formal approval by the City of Dallas in 1998. The project, under development by Fort Worth-based Hillwood and Dallas-based Hicks Holdings, will include 12 million sq. ft. on a 75-acre brownfield site spanning 33 city blocks when completely built out in the next 10 years.

Oddly enough, we note that only $1 billion of the total projected $3 billion development has been completed. That includes the 20,000-seat American Airlines Center, a 33-story W Hotel, two residential buildings and two seven-story office buildings. The second phase, which is set to open by the end of the year, includes 400 new apartment units and a 450,000 sq. ft. office tower that is almost fully leased to law firm Haynes & Boone and Ernst & Young.

Dallas-based Granite Properties and Atlanta-based Gables Residential broke ground in April on a $200 million mixed-use project at 1717 McKinney Ave. When completed in 2010, it will include a 19-story office building, 292-unit apartment tower and a 1,400-car parking garage.

Other developers are starting big mixed-use projects in more traditional suburban locations including Plano, which is 15 miles due north, and Irving, five miles to the northwest. In Plano, Ainbinder Co. has broken ground on a 500,000 sq. ft. project on 35 acres on State Highway 121 and Parkwood Boulevard near the Plano/Frisco city line. The first phase, set to open in June, includes The Container Store, and a second phase will feature 250,000 sq. ft. of retail and 100,000 sq. ft. of office space. A boutique hotel also is planned for the site. It is the first project by Houston-based Ainbinder in Plano and its second in the Dallas-Fort Worth area.