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Dallas booms as a top U.S. hot spot for startups, says new report

A new report finds both Dallas and Texas rank highly based on startup creation.

Photo by Sean Pavone/iStock

Dallas is a bustling hub for startup activity — and the numbers don't lie. A new ranking from real estate investment marketplace Roofstock places Dallas-Fort Worth at No. 5 among the major U.S. metro areas with the highest rates of startup formation.

Roofstock's ranking, based on data from the U.S. Census Bureau, puts the DFW's startup formation rate at 9.82 percent. The startup formation rate refers to the number of new businesses in a given year divided by the total number of businesses.

Here's some additional data for the Dallas-Fort Worth metro area:

Number of annual startup formations: 10,731
Number of annual new jobs created by startups: 69,696
Number of jobs created by startups as a share of all new jobs: 15.11 percent

As a matter of fact, the Dallas area's ratio of new business founders to total business founders stood at a healthy 20 percent as of December 2020, according to career website LinkedIn. Also in 2020 and 2019, Dallas-Fort Worth ranked t hird on a list published by residential real estate platform Clever of the most affordable U.S. metros for startups.

"The Texas State Data Center projects the metro to reach almost 8 million by 2025. That influx of residents, along with graduates from DFW’s 40+ colleges, could pave the way for a productive team at any company," Clever says.

Two other Texas metros appear on Roofstock's list — Austin at No. 3 (startup formation rate of 10.61 percent) and Houston at No. 10 (startup formation rate of 9.48 percent).

Here's the additional data for the Austin metro area:

Number of annual startup formations: 3,858
Number of annual new jobs created by startups: 21,357
Number of jobs created by startups as a share of all new jobs: 16.49 percent

Here's the other Houston startup data cited by Roofstock:

Annual number of startup formations: 9,214
Annual number of jobs created by startups: 55,475
Number of jobs created by startups as a share of all new jobs: 14.44 percent

"In the past years, Houston has seen a massive burst in its startup ecosystem. … Houston is one of the best places in the United States for entrepreneurs to launch and grow a business," Houston-based app developer Bixlabs says.

The Las Vegas metro area holds the No. 1 spot on the Roofstock list, with a startup formation rate of 11.44 percent.

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This story originally ran on our sister site, InnovationMap.

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Coworking News

New coworking space to open in Dallas' Oak Lawn neighborhood

Office Evolution

A coworking space is opening in Dallas in a central location: Office Evolution, a Louisville-based coworking chain, will open what a release says is a "state-of-the-art coworking space" at 3500 Oak Lawn Ave. #360 in Dallas at the southeast corner of Lemmon Avenue.

No details on what makes it state-of-the-art, but construction is ongoing and an opening is anticipated in mid-October.

Office Evolution was founded in 2003 as a shared workspace-coworking environment, cultivated on the principles of "Ohana," the Hawaiian tradition that references family working toward a common goal. (The founder was from Hawaii.)

The company started out in Boulder, Colorado, then relocated its headquarters to Louisville. It's an affiliated brand of United Franchise Group, and is part of The Vast Coworking Group, which specializes in franchising within the coworking industry. All of their locations are franchised.

The Dallas location is owned by franchisee Michael Pickering, a Dallas native who runs a family-owned indoor soccer facility in Dallas. (There are two other Office Evolution locations in the DFW area in McKinney and Southlake, owned by different franchisees.)

They're describing the Dallas location at 3500 Oak Lawn Ave. as "Turtle Creek," although its location at Oak Lawn and Lemmon really puts it at the epicenter of Oak Lawn. (To further complicate matters, the building previously and incorrectly described its address as "Uptown.")

It's a seven-story building in which the majority of tenants are doctor and medical offices.

Office Evolution rates include a coworking day pass for $25, plus "flex" office options starting at $200 a month for 20 hours, up to $550 a month for 80 hours.

Amenities of the building that are also accessible to Office Evolution customers include a front desk; a 1,000-square-foot fitness center; covered parking; and on-site security six days a week.

According to a spokesperson, Pickering and his team put $1.2 million into the renovation to transform the space, which occupies most of the fourth floor where it will span 9,240 square feet of space with 41 total offices — one of which is earmarked as an "on-demand office" for the professional on the go.

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Coworking News

New coworking space to open in Dallas' Oak Lawn neighborhood