Q3 2022 DFW Office Market Report

MARKET REPORT

New ListingCOLLIN CREEK CORPORATE CENTER II

New Listing

New ListingTHE STAR-TELEGRAM BUILDING

Fort Worth CBD 122

Las Colinas 490

LBJ Freeway 260

Mid-Cities 2,711

North Fort Worth 827

Preston Center 177 6,846,729

SW Fort

Stemmons

30,000

(702,173) 2,104,176 0 4,126,530

113,786 0 615,062 249,254

(707,923) 126,655 0 2,670,988

(745,814) 107,000 0 1,415,105

14.3% 658,099 842,699 0 1,840,425

10.2% (51,804) 123,430 0 335,000

12.1% 142,638 297,000 1,447,052 512,270

(225,680) 8,100 0 1,354,895

133,905 37,656 186,000 1,001,845

(109,992) 0 109,500 498,089

43,471 656,078 0 1,262,559

(2,220,742) 4,617,394 2,821,126

CURRENT EVENTS

An Atlanta-based legal services firm, Calloquy PBC, is eyeing a new office in downtown Dallas. Calloquy PBC is a tech company that provides virtual meeting platforms for legal firms. Calloquy is looking to open an office in downtown Dallas’ West End district at The Luminary with a plan to lease 8,700 SF according to planning documents filed with the state. The space is being designed by Houston’s IA-Interior Architects and aims to open at the end of this year.

Lument, a New York-based real estate firm, has signed a lease in Plaza of the Americas in Downtown Dallas for their nearly 120 local employees. The 1.2M SF complex underwent major remodeling in 2013 which added restaurants and tenant gathering spaces into the building atrium. In 2021, the Federal Deposit Insurance Corporation signed a 163,005 SF office lease at the Plaza of the Americas, one of the largest deals in the city. The buildings are now more than 65% leased.

Young Street Tower in downtown Dallas is being remodeled and rebranded as Radiance Plaza. The twelve-story building is only a block away from the AT&T Discovery District, a new entertainment and restaurant district, which had over 2.5 million visitors in 2021.

Dallas-based Harwood International has purchased The Luminary, a seven story, 169,005 SF, Class-A building in downtown Dallas’ historic West End district. Harwood purchased the property from Crescent Real Estate and is now 70% leased to major tenants including Corgan and Lerma advertising. Harwood is planning improvements to the building that include a lobby renovation, a terrace and a coffee bar.

Dallas-based Woods Capital is renovating Santander Tower, formally known as the Thanksgiving Tower, with plans to add 228 apartments in the 1.4M SF office tower. Woods Capital has owned the building since 2013 and has invested over $40 million in the building which currently has offices, hotel rooms, and a private club.

DALLAS CBD

STATS

TOP LEASE TRANSACTIONS

• LP Analyst has signed a 14K SF lease at Saint Paul Place.

• Calloquy signed a 10.5K SF lease at The Luminary.

• TransPerfect has signed an 8.5K SF lease at Comerica Bank Tower.

• L’Atelier Paris signed a 3K SF lease at The International.

• Diane Carreon signed a 1.6K SF lease at 921 N Riverfront.

DEALS IN THE MARKET

• The Stack – a 300K SF building with Eastdil Secured

• 1825 Market Center - a 115K SF building with Newmark

NEW DEVELOPMENTS

• Field Street District, Future Phase | 1100 McKinney Avenue – a 722K SF class A office district (proposed)

• Field Street Tower | 2012 N Field Street – a 534K SF class A office tower (proposed)

• 555 S Pearl | 555 S Pearl Expressway – a 486K SF class B office tower (proposed)

• 2500 Ross Avenue – a 425K SF class A office tower (proposed)

• Two Arts Plaza | 1900 Routh Street – a 283K SF class A office tower (proposed)

LARGE EXISTING VACANCIES

• Fountain Place | 1445 Ross Avenue –589,268 SF

• Renaissance Tower | 1201 Elm Street –534,390 SF

• Energy Plaza | 1601 Bryan Street –400,000 SF

• Bank of America Plaza | 901 Main Street – 314,729 SF

• 1700 Pacific | 1700 Pacific Avenue –270,822 SF

• Chase Tower | 2200 Ross Avenue –193,102 SF

• Harwood Center | 1999 Bryan Street –187,728 SF

• 300 S Pearl Expressway – 170,385 SF

• Comerica Bank Tower | 1717 Main Street – 148,025 SF

• 2100 Ross Avenue – 136,335 SF

• Santander Tower | 1601 Elm Street –117,059 SF

• One Main | 1201 Main Street – 115,410 SF

• Hilltop Securities Tower | 717 N Harwood Street – 113,187 SF

• Radiance Plaza | 1301 Young Street –107,463 SF

CENTRAL EXPRESSWAY

STATS

CURRENT EVENTS

Stockdale Investment Group and Hines are planning a mixed used development along North Central Expressway in the Knox Street business district. Stockdale has owned the block for over a decade and plans to build 250,000 SF of office space, a 300-unit apartment tower and a senior housing highrise with 225 homes as a part of the development.

TOP LEASE TRANSACTIONS

• Brassfield & Gorrie extended its 16K SF lease at The Gild.

• AMWINS has signed a 3.4K SF lease at Premier Place.

NEW DEVELOPMENTS

• The Central – a 500K SF class A office tower (proposed)

• Energy Square 4 – a 400K SF class A office tower (proposed)

• The Shops at Park Lane (8010 Park Lane) – a 352K SF class A office tower (proposed)

• The Tower at Preston Hollow Village – a 260K SF class A office tower (proposed)

LARGE EXISTING VACANCIES

• Energy Square 1 - 101K SF

• 8080 NCX – 98K SF

• Cityplace Tower – 90K SF

• Walnut Glen Tower – 76K SF

Neiman Marcus group has confirmed its selection of CityPlace Tower in Uptown as one of its corporate hubs as they move out of Downtown Dallas. The luxury retailer will take roughly 85,000 SF of space on floors 11 through 13 in the 1.3M SF building. Neiman Marcus will maintain its downtown location as its flagship store with office space above it.

CURRENT EVENTS

Comerica bank is leasing close to 100,000 SF in Frisco at the 17 Cowboys Way building, which is currently under construction and set to deliver early next year. The space will be used as a business and innovation hub for roughly 300 employees of the Dallas-based bank. Comerica will maintain its downtown office for the bank’s executive offices, commercial banking operations, wealth management, credit and other business units. Dallas Cowboys owner Jerry Jones and Lincoln Property Co. are building the office tower in the $1.5 billion Star development.

The city of Frisco, Texas, is offering millions of dollars in incentives for Crow Holdings’ SouthStone Yards office park development. The 45-acre campus will have four office buildings with over 1M SF of space. The first building in the development will be built out of mass timber, the first of its kind in DFW. Crow Holdings is a privately owned real estate investment and development firm with more than 70 years of history and $27 billion of assets under management.

Frisco-based Music Audience Exchange is expanding its office to nearly 11,000 SF in the Hall Business Park. Hall group started construction last year on additions to its Frisco business park which include a 16-story, 410,000 SF office tower, a 19-story apartment building with 214 units, a 154-room boutique hotel and a 10,000SF food hall.

California-based Alto Pharmacy is expanding its office in Plano to more than 40,000 SF in Plano’s International Business Park. International Business Park is a 300-acre development of Dallas’ Billingsley Co. The mixed-use project north of the George Bush Turnpike includes about a dozen office buildings with approximately 2M SF.

FAR NORTH DALLAS

TOP LEASE TRANSACTIONS

• Tri Global Energy LLC renewed its 16K SF lease at 17300 North Dallas Parkway.

• Higginbotham Insurance Agency, Inc. renewed its 13.4 K SF lease at Tollway Towers.

• Carstens, Allen & Gourley has signed a 12.5K SF lease at One Legacy Circle

• Softtek Integration Systems has signed a 10K SF lease at The Colonnade.

• Citadel Partners has signed a 7K SF expansion at Tollway Towers.

• Grissom & Co has signed a 4k SF expansion at Tollway Towers.

• Encore Bank has signed a 4K SF lease at Legacy Town Center Headquarters I.

• First Financial signed a 2.1K SF lease at Liberty Plaza.

DEALS IN THE MARKET

• The Campus at Legacy | 5320 Legacy – a 394,405 SF two (2) building office complex with Newmark

• The Princeton – a 377,821 SF office building with Colliers

NEW DEVELOPMENTS

• The Link at Fields Frisco | Legacy Drive & PGA Parkway – a 2M SF class A office complex (proposed)

• The Offices at The Gate | 4205 Dallas Parkway – a 1M SF class A office complex (proposed)

• 15555 N Dallas Parkway - a 504K SF class A office building (proposed)

• Tate + Toll | SEC of Warren Parkway & Dallas N Tollway – a 500K SF class A office building (proposed)

• Destination Drive A – a 500K SF class A office building (proposed)

• IBP 190 | Hwy 190 & Midway Rd - Bldg 1 - a 500K SF class A office building (proposed)

• The Tower at Hall Park | 6605 Warren Parkway – a 496K SF class A office building

• Legacy West Office Tower | SEC Windrose Avenue – a 450K SF class A office building (proposed)

• Granite Park Six | 5525 Granite Parkway – a 422K SF class A office building

• Two Legacy West | 7950 Legacy Drive – a 414K SF class A office building (proposed)

• Ryan Tower | 8101 Windrose Avenue – a 409K SF class A office building

• 6200 Legacy Drive – a 402K SF class A office building (proposed)

• Legacy Union Three | Legacy Circle – a 328K SF class A office building (proposed)

• 6301 Headquarters | 6301 Headquarters Drive – a 304K SF class A office building (proposed)

• The Star | Phase IV | 17 Cowboys Way – a 299K SF class A office building

• Platinum Tower | 6899 Dallas Parkway – a 275K SF class A office building (proposed)

• International Business | 6275 W Plano Parkway – a 240K SF class A office building

• Southstone Yards | NEC Spring Creek Pky & State Highway 121 - a 235K SF class A office building (proposed)

• Fourteen555 – South Building | 14545 N Dallas Parkway – a 239K SF class A office building (proposed)

• Plaza at Legacy II | 5465 Legacy Drive – a 200K SF class A office building (proposed)

• 3930 Dallas Parkway - a 120K SF class A office building (proposed)

LARGE EXISTING VACANCIES

• 5400 Legacy Drive – 1,587,458 SF

CALWest – 1,071,344 SF

The Campus at Legacy – 500,864 SF

6100 Reata Pharmaceuticals – 327,396

Legacy Commons – 296,433 SF

5600 Headquarters Drive – 251,478

Legacy Drive – 227,577

International Parkway – 205,750

The Apex 1 at Legacy –

FORT WORTH CBD

VITAL STATS

CURRENT EVENTS

Fort Worth is moving forward with a $34 million renovation of a historic park along the Trinity River that will be the gateway between downtown and the future Panther Island. Heritage Park sits on a few hundred acres at the edge of downtown near the historic Tarrant County Courthouse. Despite being the location where Fort Worth was established as an army post 173 years ago, the park has been fenced off and closed for years because of safety concerns. City leaders have a grand vision to reopen the park in a whole new way.

TOP LEASE TRANSACTIONS

• UShealth Group has signed a 34,553 SF lease at 300 Burnett St.

• SPACES has signed a 25,621 SF lease at 702 Houston St.

• An undisclosed tenant has signed a 10,639 SF lease at 801 Cherry St.

DEALS IN THE MARKET

• 115 West 7th Street – a 300,347 SF class B office building (under contract)

• 1500 Houston Street – a 42,400 SF class C office building (under contract)

• 701 W Belknap Street – a 3,300 SF class C office building

LARGE EXISTING VACANCIES

• 801 Cherry Street | Burnett Plaza –237,209 SF class A vacancy

• 115 West 7th Street | 115 W 7th Street –a 224,693 SF class B vacancy

• 777 Main Street | 77 Main – a 173,603 SF class A vacancy

• 307 W 7th Street | The Star-Telegram Building – a 117,295 SF class B vacancy

• 301 Commerce Street | Bank of America Tower – a 111,714 SF class A vacancy

• 500 W 7th Street | First on 7th – a 82,514 SF class B vacancy

The Dallas Business Journal recently tallied up the biggest hotel and apartment projects coming to downtown Fort Worth — more than 300 units for residential and 150 rooms for hospitality. Starting with the biggest price tag, the Fort Worth Convention Center is expected to finish its $400 million expansion by 2026. The project, which includes a new 1,000-room hotel, was largely funded with federal funds from the American Rescue Plan Act. There are two other hospitality developments nearby. The first is the $217 million expansion to the Omni Fort Worth Hotel. After being sidelined completely during the pandemic, the 400-room addition is set to deliver in 2026. The other is the upcoming Le Meridien Downtown Fort Worth, costing about $47 million. Expected by 2024, the Commerce Street hotel will offer a total 189 rooms.

CURRENT EVENTS

Irving City Council has approved construction on a massive mixeduse project in Las Colinas. The planned 800,000 SF office campus on Lake Carolyn is expected to house workers for Wells Fargo, real estate brokers say. There are also plans for an adjoining apartment and retail complex. Project developer KDC is a leading national developer of commercial office buildings, corporate buildto-suit facilities and mixed-use projects for companies across the country.

The Riverside Commons offices in the Las Colinas Urban Center have sold to Dallas-based Wolverine Interests from a unit of New Yorkbased Brookfield Properties. The 467K SF, four-building complex is more than 90% leased and overlooks a lake and green space. Wolverine Interests intends to make any necessary upgrades to the building.

LAS COLINAS

VITAL STATS

TOP LEASE TRANSACTIONS

• BSI Financial Services has signed a 31K SF lease at 4200 Regent.

• Consilium Staffing has signed a 28K SF lease at Las Colinas Corporate Center.

• Apartment Association of North Texas signed a 15.2K SF lease at Cottonwood Office Center.

• Martin Powers signed a 5.5K SF lease at The Embassy.

• Care Continuity signed a 4.9K SF lease at MacArthur Plaza.

DEALS IN THE MARKET

• One Panorama Center – a 208,450 SF building with Colliers

• 5150 Regent – a 76,400 SF building with Newmark

NEW DEVELOPMENTS

• Project Blue Star – a 2M SF class A office park (proposed)

• Freeport Commons – a 1.2M SF class A office park (proposed)

• 750 W John Carpenter Freeway | Phase II – a 330K SF class A office building (proposed)

• 3300 Olympus – a 300K SF class A office building

• 9650 Locke Street – a 279K SF class A office building (proposed)

• Royal Tower – a 275K SF class A office building (proposed)

• 9100 Olympus Boulevard | Building D – a 250K SF class A office park (proposed)

• NWC I 635 & I 35 – a 200K SF class A office building (proposed)

• Las Colinas Corporate Center III –a 200K SF class A office building (proposed)

LARGE EXISTING VACANCIES

• 6000 Connection – 292K SF

• 8900 Freeport Parkway – 268K SF

• One MacArthur Ridge – 250K SF

• Regent Commons – 215K SF

• Intellicenter Dallas – 180K SF

• Horizon Way Business Park – 287K SF

• Browning Place III – 171K SF

• Williams Square West – 162K SF

• Freepoint 9 Office Center – 153K SF

• Las Colinas Commons – 151K SF

• 6031 Connection Drive – 139K SF

• Las Colinas Corporate Center II – 137K SF

• 450 N Freeport Parkway – 128K SF

• 8840 Cypress Waters Boulevard – 108K

LBJ

VITAL STATS

CURRENT EVENTS

LBJ Freeway office tower, Crossings II, has been sold to the Dallas Independent School District. The 12-story Crossings II high-rise is on LBJ Freeway just east of the Dallas Galleria. Built in 1979, the almost 280,000SF office building was recently renovated with upgraded interiors and outside landscaping. This building now contributes to the more than $1 billion in office building sales recorded in the Dallas-Fort Worth area in 2022 thus far.

TOP LEASE TRANSACTIONS

• Empowering Success has signed a 7.2K SF lease at One Galleria Tower.

• McGregor & Oblad PLLC has signed a 6K SF expansion at Element Towers.

• Master Halco has signed a 6K SF expansion at Element Towers.

• Oilfield Water Logistics has signed a 7.5K SF lease at Pinnacle Tower.

• Firemon signed a 5K SF lease at Pinnacle Tower.

• The Lincoln National Life Insurance Company signed a 5K SF lease at Pinnacle Tower.

• Firemon signed a 5K SF lease at Pinnacle Tower.

DEALS IN THE MARKET

• Park Central 7, 8, & 9 – a 845,919 SF class A office complex

NEW DEVELOPMENTS

• Four Lincoln Centre – 400K SF (proposed)

• Park Tower at Dallas Midtown – 376,870 SF (proposed)

• The Inwood at Alpha West – 330K SF (proposed)

LARGE EXISTING VACANCIES

• Park Central 8 – 212,617 SF

• 7171 Forest Lane – 180K SF

• 5525 LBJ – 120K SF

• One Lincoln Centre – 100,501 SF

• Pinnacle Tower – 98,412 SF

• Northpoint Plaza II – 92,694 SF

• Three Galleria Tower – 89,208 SF

• Lakeside Square – 72,824 SF

• The Hightower – 66,609 SF

Seritage Growth Properties, the owner of the Valley View mall site, is hoping to sell the almost 17-acre land site previously planned for a high-rise mixed-use project. The project was intended to have up to 2M SF of office, retail, and residential space. The site, which was once a Sears department store, is now being marketed for sale as Vista Commons by JLL.

CURRENT EVENTS

Throughout north and central Arlington, the city is working with developers to plant new class A office space and high-rise multifamily development. Mayor Jim Ross spoke with the Dallas Business Journal about how Arlington is aiming to attract development and businesses and create its own skyline.There has not been much office development in the city over the last 25 years, he said, but in order to attract businesses to the area new class A space needs to come up. “While we’ve been in that sleepy bedroom community, we’ve learned how to develop relationships with folks,” he said. “The Rangers came here 50 years ago. They never left.” Having a thriving entertainment scene will also help attract new businesses to the community.

Currently located in New York City, the OneWorld global headquarters will move to Fort Worth effective December 2022, joining American on its 300-acre, state-of-the art Robert L. Crandall Campus adjacent to Dallas Fort Worth International Airport (DFW). American’s campus, dubbed Skyview, is home to the airline’s Flight Academy, DFW Reservations Center, Robert W. Baker Integrated Operations Center, Training and Conference Center, and CR Smith Museum, as well as an office complex that houses the airline’s leadership and support staff.

Oneworld has been based in New York City since 2011, following a move from Vancouver where the alliance’s central management team was based after the launch of the alliance in 1999. Co-locating with founding member American Airlines, the largest airline in the world, will further accelerate the alliance’s drive to deliver greater value for its member airlines and customers.

The oneworld central management team will continue to be led by Rob Gurney, who was appointed as CEO in 2016. Dallas-Fort Worth is one of the fastest growing hubs in the oneworld network, offering nearly 900 daily flights to more than 260 destinations. In addition to being American’s largest hub, DFW is served by seven other oneworld members: Alaska Airlines, British Airways, Finnair, Iberia, Japan Airlines, Qatar Airways and Qantas. Both Finnair and Iberia launched new service to DFW in the past year, leveraging the strength of American’s network at its largest hub. Oneworld’s new headquarters in Fort Worth will also enable the alliance to tap into the significant aviation talent pool in the Lone Star State. Ranked as the U.S. state with the most air transportation jobs, Texas is home to one of the largest aerospace and aviation labour forces in the country. American has more than 30,000 team members in North Texas and is proud to have employees from several other oneworld carriers based at its Fort Worth campus.

Southlake is building a $3.4 million pickleball complex that it hopes draws more visitors city with its hotels and bustling town square. “We’re calling this the Taj Mahal of pickleball,” said Mayor John Huffman before the City Council voted recently to approve a site plan for the complex in the city’s Bicentennial Park. It will include eight courts, a championship court with bleachers, shade structures, lighting and fencing. The complex will also include a small building for offices, storage and restrooms. Huffman said the city is seeing lots of demand for a place to play the popular game. The city is banking on tournaments and other events to draw visitors to the complex. Bicentennial Park also has other amenities for sports enthusiasts, including a tennis center, baseball fields, batting cages, a playground and basketball courts.

MID-CITIES

VITAL STATS

TOP LEASE TRANSACTIONS

• An undisclosed Tenant has signed a 12,753 SF lease at 601 State Street.

• An undisclosed Tenant has signed a 8,910 SF lease at 8131 Matlock Road.

• Principal Management has signed a 8,384 SF lease at 9001-9003 Airport Fwy.

DEALS IN THE MARKET

• 4300 Centreway Place – a 139,445 SF class B office building

• 2505 N State Highway 360 – a 119,424 SF class A office building

• 1600 E Pioneer Parkway – a 81,997 SF class B office building

NEW DEVELOPMENTS

• 601 State Street – a 160,000 SF class A office building

• 2710 E Lamar Boulevard – a 61,500 SF class A office building

• 2101 West Park Court. – a 60,000 SF class A medical office building

LARGE EXISTING VACANCIES

• 3120 Sabre Dr Building B – a 204,052 SF class A vacancy

• 1900 W Kirkwood Boulevard – a 379,898 SF class A vacancy

• 950 E State Highway 114 – a 144,227 SF class B vacancy

• 2200 W Airfield Drive – a 130,096 Class B vacancy

NORTH FORT WORTH

VITAL STATS

CURRENT EVENTS

TOP LEASE TRANSACTIONS

• Village Farms has signed a 9,083 SF lease in 3800 Sandshell Drive.

• An undisclosed has signed a 7,400 SF lease in 2925 Shamrock Avenue.

• Affordable Insurance has signed a 3,550 SF lease in 5650 N Riverside Drive.

DEALS IN THE MARKET

• 13650 Heritage Parkway – a 164,333 SF class A office building

• 620 S Main Street – a 36,000 SF class A medical office building

• 8224 White Settlement Road – a 27,716 SF class B office building

• 8101 Boat Club Road – a 24,990 SF Class B office building

• 121 NE Loop 820 – a 6,000 SF Class C medical office building

NEW DEVELOPMENTS

• 9810 Hillwood Parkway – a 135K SF class A office building

• Golden Triangle and Alta Vista Road –a 57K SF class B office building

• 126000 Willow Springs Road – a 54K SF class A office building

• 1242 FM 407 Road – a 10,157 SF class B office building

LARGE EXISTING VACANCIES

• 13650 Heritage Parkway – 164,333 SF Class A vacancy

• 5555 N Beach Street – 668,392 SF Class B vacancy

• 13601 Heritage Parkway – 68,399 SF Class A vacancy

• 2601 Meacham Boulevard – 53,236 SF Class A vacancy

Clevon, the autonomous delivery vehicle innovator, announced the expansion of its global operations to North America with the opening of its Center of Excellence and U.S. headquarters in Fort Worth’s Mobility Innovation Zone in the Alliance corridor. The company introduced the next-generation autonomous delivery vehicle, the CLEVON 1, as the first robot courier in Europe to offer autonomous delivery services on public roads, starting with DPD (part of LaPoste) and most recently working with customers including DHL Express Estonia in Tallinn and IKI stores in Vilnius, Lithuania, delivering groceries, among others. Clevon is expanding into the North American market as the pressure from businesses to offer on-demand, same-day or next-day delivery of goods and services continues to skyrocket. Clevon’s unmanned autonomous delivery vehicles will drive on public roads and enable the transportation of goods to be more energy-efficient, cost-effective and scalable.

Perot Field Fort Worth Alliance Airport has been named one of the top 20 U.S. cargo airports ranked by the Federal Aviation Administration. Moving up three spots in the rankings, Alliance Airport landed more than 2.4 billion pounds in 2021, a volume increase of 45.75% from the previous year. “This recognition reinforces the incredible growth and demand we have experienced at the airport over the past five years,” said Christian Childs, president of Alliance Aviation companies at Hillwood. “The airport plays a critical role in our national security efforts and in ensuring Americans have access to essential household goods.” According to the airport’s operations data for 2021, Alliance Airport experienced a 43% year-over-year volume increase in cargo transported. The airport reported 789,429,648 pounds of cargo enplaning and deplaning in 2021, compared to 550,762,202 pounds in 2020.This growth stems from a variety of factors, including increased efficiencies and lower operating costs, a dramatic shift in consumer behavior and an increase in e-commerce shipping activity. FedEx’s AllianceTexas-based Southwest Regional Sort Hub is ranked third in the U.S. in terms of square footage of sortation and handling facilities. Alliance Airport is also home to one of Amazon Air’s regional air hubs enabling wider selection and faster delivery to customers across Texas and the region. Born out of a collaboration between Hillwood, the City of Fort Worth and the Federal Aviation Administration, Alliance Airport features a vast array of flight services including air cargo, corporate and government aviation, and is the cornerstone of one of the nation’s most successful privatepublic partnerships, the 27,000-acre AllianceTexas development. Alliance Airport is also a key component of the AllianceTexas Mobility Innovation Zone, spurring innovative mobility solutions throughout the supply chain and attracting leading companies focused on the autonomous and automated movement of goods.

CURRENT EVENTS

New towers in Knox Henderson will replace multiple low-rise towers near Knox Street and Armstrong Avenue. Property owner Stockdale Investment Group is teaming up with developer Hines on the project, one of several in the works in the Knox neighborhood. The development will include an apartment high-rise, office tower, senior housing and retail. The mixed-use development is planned to be north of downtown Dallas in the popular Knox Street business district. Three towers would replace several retail buildings on the block between McKinney Avenue and U.S. Highway 75 at Armstrong Avenue.

PRESTON CENTER

VITAL STATS

TOP LEASE TRANSACTIONS

RPM Living signed a 16.4K SF lease at Preston Commons.

Stellar Service Brands has signed a 4.3K SF lease at The Offices on Katy Trail.

• American Federation for Children has signed a 2.3K SF lease at The Berkshire.

NEW DEVELOPMENTS

• 8111 Douglas – a 318K SF class A office building

LARGE EXISTING VACANCIES

• Bluffview Towers | West – 36,029 SF

• Sherry Lane Place – 34,106 SF

5950 Sherry Lane – 27,948 SF

8333 Douglas Avenue – 27,746 SF

RICHARDSON/PLANO/ALLEN/MCKINNEY

VITAL STATS

CURRENT EVENTS

Chicago-based Zeller Realty has purchased 3400 CityLine in Richardson. The five-story, 312,345 SF building is more than 70% leased to tenants including DTX Technology, Generational Equity and McCarthy Cos. In the first half of 2022, the DFW area led the nation in investment property sales with almost $23 billion in transactions.

Plano-based Primera Cos. is planning two new office buildings in Plano which are set to open in 2024. Primera intends to build two (2) three story buildings with more than 200,000 SF of space valued at more than $36 million. Over 2.2M SF of office space is currently under construction in West Plano and Frisco.

TOP LEASE TRANSACTIONS

• Kimley-Horn signed a 50K SF lease at Tower 2600

• MB Group signed a 13K SF lease at Parkwood Place I.

• Bank Compensation Consulting signed a 4.7K SF expansion & extension at Harrington Place.

• Craig Ranch HOA has signed a 3K SF lease at the Square at Craig Ranch.

• H4F Investments signed a 2.2K SF lease at Summit Park.

• Rockcliff Energy signed a 1.3K SF renewal at the Square at Craig Ranch.

NEW DEVELOPMENTS

• State Hwy 121 & N Central Expy - a 2M SF class A office building (proposed)

• Heritage Creekside Towers – a 1.2M SF class A office park (proposed)

• Palisades Central | 2426 N Central Expressway – a 1M SF class A office complex (proposed)

• Beacon Square – a 800K SF class A office building (proposed)

• The Campus at CityLine – a 600K SF class A office complex (proposed)

• 3661 N Plano – a 533K SF class A office building (proposed)

• 3661 N Plano – a 508K SF class A office building (proposed)

• Legacy Central 5 – a 300K SF class A office building (proposed)

• One Bethany North - a 300K SF class A office building (proposed)

• District 121-East - a 300K SF class A office building (proposed)

• One Heritage Creekside – a 250K SF class A office building (proposed)

• SWC 121 and Alma - a 125K SF class B office building (proposed)

• Assembly Park – a 180K SF class a office park

LARGE EXISTING VACANCIES

• Galatyn Commons – 215K SF

• Lakeside Tower - 203K SF

• 2200 George Bush – 177K SF

• Richardson Commons – 156K SF

• Waterview 190 South – 116K SF

• Lakeside Centre II – 115K SF

• Lookout Park II – 156K SF

The Tower Lakeside Campus – 104K SF

• Legacy Central I – 104K SF

• 1600 W Plano Parkway – 103K SF

• Creekview I – 101K SF

Preliminary data indicates that third quarter net office leasing in DFW totaled nearly 660,000 SF with nearly 7M SF of office space under construction. The largest office construction totals are in Dallas’ Uptown/Turtle Creek district and along the Dallas North Tollway in Frisco and West Plano.

Dallas-based JP Realty Partners, in partnership with Liberty Bankers Insurance, has purchased the Fossil Group’s office campus in Richardson’s telecom corridor from California investor The Swig Co. The campus is over 535K square feet with more than 9 acres of vacant land. JP Realty Partners has execution experience of over 800 properties in the US, Mexico and Canada.

Independent Financial’s $150 million headquarters campus has completed its Phase 2 expansion in McKinney. Dallas-based developer KDC built the six-story, 198,000 SF building which added to the Phase I building that opened in 2019. KDC is a leading national developer of commercial office buildings, corporate build-tosuit facilities and mixed-use projects for companies across the country. For more than 30 years, KDC has produced approximately 36 million square feet valued at over $9 billion.

The Ryan Tower in Plano just secured $125 million in funding from Acore Capital, a California commercial real estate lender. This office high-rise is a project of Minneapolis-based developer Ryan Cos. and Dallas tax services firm Ryan LLC. Ryan Tower is currently under construction and will open at the Legacy West development in 2024. The tower is located near the southwest corner of State Highway 121 and the Dallas North Tollway. Once completed, Ryan LLC plans to move its headquarters from the Dallas Galleria to the new building and plans to occupy about half of the office tower.

CURRENT EVENTS

Dallas-based Citadel Partners, a corporate tenant and asset services real estate advisory firm, represented national accounting firm Weaver, in a 35,948 SF lease renewal at One West 7th, at 2821 W. Seventh Street in Fort Worth. Weaver was the original lead tenant for the seven-story One West 7th development, which opened in 2009 in the popular West Seventh submarket. Weaver will continue to occupy the top two floors and enjoy prominent, top-of-building signage. “Much has changed over the last 10 years with the company’s growth, office design standards and corporate real estate strategy. With a lease expiration on the horizon, our team set out to find space that would create efficiencies in the Fort Worth office and exemplify Weaver’s current brand and company culture,” says Citadel Partners’ Managing Partner, Scott Morse. Weaver was represented by Morse; Citadel Partners’ Managing Partner Scott Jessen; Fort Worth Market Principal Andy Goldston; Fort Worth Market Associate Advisor Daniel Mullen; and Advisor Katherine Jessen. Matt Carthey and Jake Neal with Holt Lunsford Commercial represented the landlord, Macfarlan Capital Partners.

Vantage Bank will relocate its Fort Worth executive offices to Two Museum Place, a high-profile office development in the heart of the museum district. The move from 777 Taylor Street is part of the bank’s plan to expand its presence in North Texas and signifies its growing investment in and commitment to the Fort Worth businesses it serves, the bank said in a news release. Vantage Bank will renovate the fourth floor of Two Museum Place with a longterm goal of expanding within the building, adding a branch, offices and meeting rooms, the release said. The renovated space will be occupied by the company’s Fort Worth-based C-Suite executives, including CEO Jeff Sinnott and Rafa Garza, vice chairman of the board, as well as the bank’s treasury management and human resources departments. The Museum Place facility will be Vantage Bank’s third location in the Dallas-Fort Worth area. The bank has a total of 22 branches in Texas.

SOUTHWEST FORT WORTH

TOP LEASE TRANSACTIONS

• Fort Worth Signs & Graphics has signed a 16,000 SF lease at 1025 S Jennings Avenue.

• Undisclosed tenant has signed a 8,502 SF lease at 7250 Hawkins View Drive.

• Undisclosed tenant has signed a 8,193 SF lease at 6100 Western Place.

DEALS IN THE MARKET

• 101 S Jim Wright Freeway – 48,892 SF class B office building

• 3509 Hulen Street - 27,766 SF Class B office building

• 108 South Freeway - 41, 427 SF Class B office building

NEW DEVELOPMENTS

• 465 S Main Street – 13,503 SF Class B office building set to deliver March 2023

• 6101 Southwest Boulevard – 15,000 SF Class B office building set to deliver November 2022

LARGE EXISTING VACANCIES

• 6100 Western Place – 105,273 SF class B vacancy

• 405 W Loop 820 – 101,043 SF class B vacancy

• 6000 Western Place – 94,703 SF class B vacancy

• One Ridgmar Center – 86,561 SF class A vacancy

STEMMONS

VITAL STATS

CURRENT EVENTS

Despite vacancy and sublease activity across the country, United States office rental rates seem to be holding steady. Since Q3 2021, rent levels in Class A office properties within United States central business districts are up 2.1%. During the same period, rents for Class B and C office properties for those same submarkets are down 0.3%.

DEALS IN THE MARKET

• Newmark is marketing for sale 1825 Market Center. The 115,000 SF building is 70% leased.

NEW DEVELOPMENTS

• West Love | 2345 Mockingbird Lane – a 250K SF class A office building (proposed)

• East Love | 2345 Mockingbird Lane – a 250K SF class A office building (proposed)

• The Design District Tower – a 243,100 SF class A office building (proposed)

• 2122 W Mockingbird Lane – a 158K SF class A office building

• 6500 Harry Hines Blvd - a 155,000 class A office building (proposed)

• 2221 W Mockingbird Lane – a 150K SF class A office building (proposed)

• 155 Riveredge Drive - a 142,260 SF class A building

• 1333 Oak Lawn Avenue – a 122,788 SF class A office building

• 1400 W Mockingbird Lane – a 66,504 SF class A office building (proposed)

• 111 Glass Street – a 30K SF class B office building (proposed)

• 122 Class Street - a 20,000 SF class B building

LARGE EXISTING VACANCIES

• 2525 N Stemmons Fwy - 201,178 SF

• 8585 N Stemmons Fwy - 197,949 SF

• Comerica Service Center – 142,600 SF

• Pegasus Park – 133,477 SF

• The Connection at 8600 – 101,530 SF

• 8777 N Stemmons – 76,968 SF

Q2 2022 has marked the third consecutive quarter of positive net absorption (556,000 SF) for offices in North Texas with vacancy at 24%, down 70 basis points from Q1. Around 1.4M SF of new office developments kicked off in Q2, the largest being Granite Properties 2323 Springs project in Uptown with over 620,000 SF of space.

CURRENT EVENTS

Rosewood Court in Uptown has reached 99% occupancy. The class AA, 456,028 SF property has closed nearly 30,000 SF of leases since the start of 2022 including Megatel Homes (11,567 SF expansion), Lido Advisors, LLC (9,247 SF lease) and Surge Private Equity (2,920 SF lease).

Dallas-based White Rock Coffee will also be opening a location in the lobby of the building.

New information supplied by Balfour Beatty, a general contractor, provided insight into Goldman Sachs’ planned campus northwest of downtown Dallas. Project Meadow is planned to be 4.5 acres mixed-use and have three distinctive towers ranging from nine to fifteen levels. It also includes approximately 890,000 SF of lobby and common spaces, amenities, office areas and accessible outdoor terraces with gardens on portions of the roofs. Balfour Beatty did not disclose the location of Project Meadow, but the only Uptown project in the works of this scope is Hunt Realty’s redevelopment of the North End apartments.

One of North Texas’ busiest developers wants to expand its office near Turtle Creek. The commercial property firm wants to build an eight-level office on property that’s now the site of a smaller office building.

The building between Travis and Buena Vista streets is planned to house eight to ten small tenants, including Stillwater Capital. Austin-based Michael Hsu Office of Architecture designed the proposed project.

Granite Properties has partnered with Raleigh-based Highwoods Properties as a 50% equity investor in the 23Springs and Granite Park Six projects. The two projects will combine for more than 1M SF of Class AA office space. Since 1991, Granite has developed or acquired over 29 million square feet of commercial real estate and completed transactions worth over $8 billion. The company’s current portfolio includes 11.5 million square feet of highquality office space.

Dallas-based Stream Realty Partners has broken ground on a second Uptown office building next to its Quad development. The 126,000 SF, four-story building will house the American Board of Obstetrics & Gynecology and is scheduled to deliver next year.

Stream has developed over 26 million SF of property across the nation.

Developers are now offering a closer look at what would be one of the largest new building projects set for Dallas’ Uptown district. Lincoln Property’s Uptown Dallas tower project at 2500 Cedar Springs would include a large office tower and two residential high-rises. International architecture firm Skidmore, Owings & Merrill designed the project, along with landscape architect OJB.

The Crescent in Uptown is now over 95% leased following three leases that were recently signed in the building. Building renovations include revamped first floors, enhanced lobbies and common areas, and a new fitness center. Since March of 2021, The Crescent has signed over 500K SF of new leases, renewals, and expansions.

Crescent Real Estate LLC’s premier real estate portfolio consists of Class A and creative office, multifamily and hospitality assets located throughout the U.S., including The Ritz-Carlton, Dallas, and the wellness lifestyle leader, Canyon Ranch®

UPTOWN

TOP LEASE TRANSACTIONS

• Phaidon International has signed a 26.7K SF lease at The Centrum.

• Carlson Capital renewed its 26.4K SF lease at 2100 McKinney Avenue.

• Chicago Title has signed a 20K SF lease at The Quad.

• Echo Global Logistics signed a 12K SF lease at Citymark on the Katy Trail.

• Dallas CBT has signed a 4.3K SF lease at 3500 Oak Lawn.

• Clancy & Clancy Attorneys at Law has signed a 4K SF renewal at 3131 McKinney.

NEW DEVELOPMENTS

• 2401 McKinney – a 673K SF office building (proposed)

• Parkside Uptown | 1919 Woodall Rodgers Freeway – a 450K office building (proposed)

• 23Springs | 2323 Cedar Springs Road – a 623K SF office building

• Harwood XII – a 542K SF office building (proposed)

• Victory Center | 2371 Victory Avenue – a 466K SF office building (proposed)

• Harwood No. 14 – a 360K SF office building

• The Quad | 2699 Howell Street – a 345K SF office building

• 2850 Lemmon – a 280K SF office building (proposed)

• Maple Terrace | 3001 Maple Avenue – a 135K SF office building

• McKinney & Lemmon – a 82K SF office building (proposed)

LARGE EXISTING VACANCIES

• Victory Commons One – 351,507 SF

• One Victory Park – 302,030 SF

• 2801 N Central – 240,000 SF

• Parkside Tower – 111,728 SF

• 2501 Cedar Springs – 110,415 SF

• The Centrum – 73,401 SF

• PwC Tower – 67,325 SF