Market Brief... Dallas/Fort Worth
OFFICE
1Q19 Property Pictured Above: One Ridgmar Centre, 6500 West Freeway | Fort Worth, Texas 76116
DFW OFFICE MARKET BRIEF 1Q 2019
TABLE OF CONTENTS 1. DALLAS/FORT WORTH OFFICE TEAM AND SUBMARKETS
1 2 3
2. OVERALL DALLAS/FORT WORTH OFFICE MARKET A. Facts and Figures
2. SUBMARKET INTELLIGENCE A. Dallas Central Business District
B. Central Expressway C. Far North Dallas D. Fort Worth Central Business District E. Las Colinas F. LBJ G. Mid Cities H. North Fort Worth I. Preston Center J. Richardson/Plano K. Southwest Fort Worth L. Stemmons M. Uptown/Turtle Creek
1
DFW
HLC SUBMARKET COVERAGE
2
HLC DFW OFFICE MARKET EXPERTS
MATT CARTHEY
GEOFF SHELTON
HOLDEN LUNSFORD
JOHN DICKENSON
DAVID CASON
Partner/Managing Principal - Fort Worth mcarthey@hlfortworth.com 817.710.1111
Managing Principal - Fort Worth gshelton@hlfortworth.com 817.710.1113
Partner/Managing Principal - Dallas holdenlunsford@hldallas.com 972.381.3218
Managing Principal - Dallas jdickenson@hldallas.com 972.421.1971
Vice President - Fort Worth dcason@hlfortworth.com 817.810.9137
JAMES ENGELS
BRANDON AVEDIKIAN
JAKE NEAL
MARSHALL MAYS
DAN POND
Market Director - Dallas jengels@hldallas.com 972.280.8307
Market Director - Dallas bavedikian@hldallas.com 972.280.8302
Market Associate - Fort Worth jneal@hlfortworth.com 817.284.5555
Market Associate - Fort Worth mmays@hlfortworth.com 817.632.6150
Market Associate - Dallas dpond@hldallas.com 972.380.3641
DYLAN SHAPIRO
MASON PRITCHER
Market Associate - Dallas dshapiro@hldallas.com 972.381.3219
Market Analyst - Dallas mpricher@hldallas.com 972.280.8320
3
NEW LISTING
3909 Hulen: 41,907 SF Class B office building in the Fort Worth Submarket
4
3909 HULEN
PRESTONWOOD CREEK
NEW LISTING
Prestonwood Creek: 134,595 SF Class B two-building office complex in the Quorum/Bent Tree Submarket.
5
HLC DFW OFFICE MARKET EXPERTS
VACANCY - OVERALL DFW
CONSTRUCTION - OVERALL DFW
25.00%
10,000,000 9,000,000
18.80% 17.90%
8,000,000
15.00%
6,000,000
10.00%
4,000,000
5.00%
2,000,000
7,000,000
17.6%
17.2%
20.00%
5,000,000 3,000,000 1,000,000
1.20%
0.70%
0
0.00% 1Q 16
2Q 16
3Q 16
4Q 16
1Q 17
2Q 17
Direct Vacancy
3Q 17
4Q 17
1Q 18
2Q 18
Sublet Vacancy
3Q 18
4Q 18
1Q 16
1Q 19
2Q 16
3Q 16
Total Vacancy
4Q 16
1Q 17
2Q 17
3Q 17
4Q 17
Delivered Inventory
ABSORPTION - OVERALL DFW 1,100,000
2Q 18
3Q 18
4Q 18
1Q 19
OVERVIEW - OVERALL DFW
20.0%
1,600,000
1Q 18
Under Construction
2,000,000
1,500,000
19.0%
1,000,000
600,000 18.0%
500,000
100,000 17.0%
0
(400,000)
16.0%
(900,000) 1Q 16
2Q 16
3Q 16
4Q 16
1Q 17
2Q 17
3Q 17
4Q 17
1Q 18
2Q 18
3Q 18
4Q 18
(500,000) 1Q 16
1Q 19
2Q 16
3Q 16
4Q 16
Absorption
Total Net Absorption
1Q 17
2Q 17
3Q 17
4Q 17
1Q 18
2Q 18
3Q 18
Deliveries
4Q 18
1Q 19
Vacancy
Source: CoStar 1Q 2019 Office Report
Market
Existing Inventory # Bldgs.
Vacancy
Total RBA
Direct SF
Total SF
Vac. %
YTD Net Absorption
YTD Deliveries
Under Const. SF
Quoted Rates
Central Expressway
114
12,975,118
1,525,488
1,616,345
12.5%
168,099
38,848
0
$28.56
Dallas CBD
85
28,822,472
6,772,578
7,360,559
25.5%
31,271
81,711
60,230
$24.80
East Dallas
193
8,138,131
1,213,159
1,222,306
15.0%
56,657
294,820
387,890
$26.49
Far North Dallas
480
52,136,953
9,677,544
10,673,454
20.5%
638,206
465,623
1,040,078
$28.95
Fort Worth CBD
59
9,227,205
1,438,596
1,471,512
15.9%
(73,016)
0
0
$28.10
Las Colinas
295
35,664,271
5,760,891
6,484,100
18.2%
255,156
246,400
2,454,347
$25.56
LBJ Freeway
168
21,483,697
4,496,767
4,785,367
22.3%
206,698
0
0
$22.77
Lewisville/Denton
167
8,146,515
1,050,567
1,107,932
13.6%
(211,048)
40,925
154,628
$22.59
Mid-Cities
428
21,877,967
3,775,202
3,845,626
17.6%
200,876
0
294,259
$22.38
North Fort Worth
56
2,660,440
185,621
185,621
7.0%
(54,292)
0
300,720
$24.45
Northeast Fort Worth
52
3,634,931
1,133,171
1,133,171
31.2%
5,528
0
0
$22.13
Preston Center
49
4,667,431
454,616
491,190
10.5%
(53,347)
0
118,000
$38.26
Richardson/Plano
379
31,276,152
5,773,609
6,014,408
19.2%
294,395
0
261,400
$24.93
South Fort Worth
231
11,918,030
1,130,353
1,227,950
10.3%
(37,480)
67,850
44,594
$24.06
Southwest Dallas
87
3,646,587
301,514
301,514
8.3%
36,313
0
22,500
$18.45
Stemmons Freeway
120
13,225,110
3,212,299
3,223,003
24.4%
89,982
0
0
$17.00
Uptown/Turtle Creek
105
13,701,871
1,941,285
2,225,127
16.2%
135,259
34,762
231,098
$39.42
3,068
283,202,881
49,843,260
53,369,185
18.8%
1,689,257
1,270,939
5,369,744
$25.91
Totals
Source: CoStar 1Q 2019 Office Report
6
DALLAS CENTRALINTELLIGENCE BUSINESS DISTRICT SUBMARKET Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
31,271
331,301
238,052
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
25.5%
25.4%
27.0%
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
141,941
141,941
vs. Prev. Qtr
vs. 12 Mths Ago
60,230 Delivered SF 81,711 Quoted Rates $24.80
-
261,400
vs. Prev. Qtr
vs. 12 Mths Ago
$24.99
$25.33
VITAL STATS
28.0%
400,000 300,000 200,000
26.0%
100,000 0 (100,000)
24.0%
(200,000) (300,000) 22.0%
(400,000) 1Q 16
2Q 16
3Q 16
4Q 16
1Q 17
2Q 17
3Q 17
Absorption
4Q 17
Deliveries
1Q 18
2Q 18
3Q 18
4Q 18
1Q 19
Vacancy
Source: CoStar 1Q 2019 Office Report
CURRENT EVENTS • 1900 Pearl, the recently developed 25-story, 261K SF office tower in the Arts District, has sold to the State Teachers Retirement System of Ohio. This transaction set a new record for Dallas and the state of Texas at just under $700 per SF. 1900 Pearl leased up quickly with law firms and Steward Health Care System’s headquarters. Lincoln Property built the office tower for Goldman Sachs on land once owned by the Dallas Symphony Foundation.
• The seven-floor Luminary Building towers over downtown Dallas’ West End district. The 100K SF project is set to open its doors in the coming weeks. The building will be the first multi-tenant office building outside of the Arts district in downtown in 30 years. Designed by Corgan, who will be taking 20K SF of expansion space from its longtime office next door, the project will have 80K SF of unique class-A office space available.
• Deep Ellum’s new development, The Epic, has signed several office and retail tenants, Westdale, Regus Spaces, and Komodo (retail). Work is almost completed on the 251K SF office tower, 55K SF retail space, 26-story high rise apartment building, and 165-room luxury hotel.
TOP LEASE TRANSACTIONS • REEL FX has signed a 25.2K SF lease in 717 Harwood
• PNL Companies has signed a 5.7K SF lease in 2100 Ross.
• Brown & Riding has signed a 5.2K SF lease in Bank of
HLC Deal
America Plaza.
• Access Physicians has signed a 4.6K SF lease in Comerica Bank Tower.
• Stout has signed a 4.5K SF lease in Chase Tower. • Zyrka has signed a 3.9K SF lease in the Hartford Building.
DEALS ON THE MARKET • Saint Paul Place – a 273,217 SF class A office building. • 2100 Ross – a 843,728 SF class A office building. • Bank of America Plaza – a 1,849,729 SF class A office building.
• 1700 Pacific – a 1,340,481 SF class A office building. NEW DEVELOPMENTS • 140 Elm Street/The Drever – 60,230 SF LARGE EXISTING VACANCIES • Bank of America Plaza/901 Main Street – 314,729 SF • Fountain Place/1445 Ross Avenue – 295,918 SF • Thanksgiving Tower/1601 Elm Street – 291,607 SF • 1700 Pacific/1700 Pacific Avenue – 235,225 SF • One Main/1201 Main Street – 162,248 SF • Ross Tower/500 N Akard Street – 155,927 SF • Comerica Bank Tower/1717 Main Street – 153,745 SF
Street.
• Trip Actions has signed a 25.2K SF lease in 717 Harwood.
• Komodo has signed a 19.7K SF lease in The Epic. • Cambridge has signed a 16.1K SF lease in Trammell Crow Center.
• Mayer LLP has signed a 13.2K SF lease in Saint Paul Place.
• Roofstock has signed a 10K SF lease in 717 Harwood. • Invesco has signed a 6.3K SF lease in Trammell Crow Center.
7
CENTRAL INTELLIGENCE EXPRESSWAY SUBMARKET Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
168,099
47,876
(230,379)
14.0%
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
12.0%
12.5%
13.5%
13.6%
10.0%
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
38,848
18,101
vs. Prev. Qtr
vs. 12 Mths Ago
18,101
-
vs. Prev. Qtr
vs. 12 Mths Ago
$29.02
$28.06
Delivered SF 38,848 Quoted Rates $28.56
VITAL STATS
16.0%
400,000 300,000 200,000 100,000
8.0% 0 6.0% (100,000)
4.0%
(200,000)
2.0% 0.0%
(300,000) 1Q 16
2Q 16
3Q 16
4Q 16
Absorption
1Q 17
2Q 17
3Q 17
4Q 17
Deliveries
1Q 18
2Q 18
3Q 18
4Q 18
1Q 19
Vacancy
Source: CoStar 1Q 2019 Office Report
CURRENT EVENTS • The Hill retail development located at Walnut Hill Lane and 75 continues to be a big hit with the success of staples like Snooze Eatery and Houndstooth Coffee, and new arrivals such as Sauce Pizza and Wine, Bellagreen, Sushi de Handroll and Nazca Kitchen. The newest restaurant coming to the development will be Casa Verona, the Greek and Italian restaurant will be set to open its doors later in 2019.
TOP LEASE TRANSACTIONS • Venture X has signed a 24K SF lease in Campbell Centre. (North Tower)
• SRS has signed a 22K SF renewal in Walnut Glen Tower. • Redmond & Greer has signed a 12.7K SF lease in 6060 at The Crossing.
• McDowell Ducker has signed a 9.8K SF lease in Meadow Park Tower.
• Hanover Services Group has signed a 4.8K SF lease in Knox Park Village.
• Magnolia Diagnostics has signed a 4.3K SF lease in
HLC Deal
4245 NCX.
• Pace Communications has signed a 3.2K SF lease in
HLC Deal
4131 NCX.
• Trigild has signed a 2.7K SF lease in 4131 NCX
HLC Deal
8
DEALS ON THE MARKET • Meadow Park Tower – a 251,755 SF class B office building
COMING TO MARKET • 4040 NCX – A 148,864 SF class B office building. NEW DEVELOPMENTS No developments are currently under construction at this time. However, three have been proposed: • Four Energy Square – 400,000 SF Build to Suit • 8010 Park Lane – 352,000 SF Office (Community Center) Building • Office Tower in The Glen at Preston Hollow – 250,000 SF Class A Office Building
LARGE EXISTING VACANCIES • Two Energy Square – 98,600 SF • Cityplace Tower – 82,230 SF • The Pyramids at Park Lane – 63,467 SF • 8750 N Central Expy – 51,517 SF • Three Energy Square – 38,714 SF • Meadows Building – 27,211 SF
FAR NORTH DALLAS SUBMARKET INTELLIGENCE Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
(218,263)
(85,471)
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
20.5%
21.0%
21.0%
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
1,297,259
973,435
vs. Prev. Qtr
vs. 12 Mths Ago
92,611
740,934
vs. Prev. Qtr
vs. 12 Mths Ago
$28.71
$27.86
638,206
1,040,078 Delivered SF 465,623 Quoted Rates $28.95
VITAL STATS
24.0%
1,000,000 800,000
22.0% 600,000 20.0%
400,000 200,000
18.0%
0 16.0% (200,000) 14.0%
(400,000) 1Q 16
2Q 16
3Q 16
4Q 16
Absorption
1Q 17
2Q 17
3Q 17
4Q 17
1Q 18
2Q 18
3Q 18
Deliveries
4Q 18
1Q 19
Vacancy Source: CoStar 1Q 2019 Office Report
CURRENT EVENTS
• Dr. Pepper has officially announced the location of their new headquarters. They will be breaking ground on a 350K SF build-to-suit at The Star in Frisco. The company will be moving over 1,100 employees into the $200MM project in 2021. The building is being developed by Blue Star Land, Lincoln Property Company and HKS. • PGA of America plans to relocate its headquarters from Florida to Frisco on a 600-acre proposed development site. The move follows the recent public-private partnership with the city of Frisco, Hunt Realty Investments, and other stakeholders. Upon its expected completion in 2022, the new PGA headquarters will include a 500-room Omni Hotel, a 127K SF conference center, two championship golf courses, a short course, practice area including 45 holes and a clubhouse. The 2027 and the 2034 PGA Championship will be played on one of the two 18-hole championship courses that will be built as part of the $520MM Frisco development. • Fortis Property Group has secured a $63MM loan to refinance The Colonnade. The five-year loan though UBS will ensure the building built in 1983 will continue to see improvements. Since the property was acquired by Fortis in 2013, the project has retained a high occupancy rate with its anchor tenants, including Hilton, United Surgical Partners, Zurich American Insurance, HQ Global Workplaces and Systemware. • After a unanimous Frisco City Council vote, Hall Park will begin its transformation from an office park into a mixed-use development. The 2.5MM SF class A office complex received approval for 2,000 residential units as well as increased building height to 25 floors. The development which currently sits on 162-acres, with 17 office buildings accommodating over 10K employees, sees this as a necessary bet to retain its value in the coming years. • The building formerly known as Lincoln Legacy One has been purchased by Equus Capital Partners. The Pennsylvania-based private equity firm has renamed the building Gateway at Legacy and plans to reintroduce the property to the market as a top-tier product. New capital improvements will include a lobby redo, a new fitness center, multiple tenant lounges, and collaboration areas.
TOP LEASE TRANSACTIONS
• Dr. Pepper has signed a 350K SF lease in The Star Development. • Venture X has signed a 30K SF lease in Stonebrook Business Park. • Veritix has signed a 26K SF lease in Grammercy Center North. • Google has signed a 25.1K SF lease in Colonnade II. • CU Member Mortgage has signed a 14.1K SF lease in Quorum Place. • Optiv Security has signed a 14K SF lease in Hall Park – T2. • White Energy has signed a 8.2K SF lease in Hall Park. • Clear Technologies has signed a 6.9K SF lease in Addison Tower. • Chef Bobo Brand has signed a 3.4K SF lease in Tollway Towers.
HLC Deal
DEALS ON THE MARKET
• Park Center – a 236,604 SF class A office building. • Frisco Station One – a 230,829 SF class A office building. • Former Dr Pepper HQ Building (5301 Legacy Drive) – a 296,434 SF class A office building.
NEW DEVELOPMENTS
• Headquarters II – 220,000 SF office building set to deliver 2/2020 • The Realm at Castle Hills – 248,387 SF office building set to deliver 9/2019 • The Offices Two at Frisco Station – 210,579 SF office buildings set to deliver 10/2019
LARGE EXISTING VACANCIES • • • • • • •
5400 Legacy Drive – 1,587,456 SF 6105 Tennyson Parkway – 393,064 SF International Plaza I – 372,931 SF The Campus at Legacy West – 370,625 SF International Plaza II – 351,963 SF 6400 Legacy Drive – 222,191 SF 4101 International Plaza – 205,750 SF
9
FORT WORTH CENTRAL BUSINESS DISTRICT SUBMARKET INTELLIGENCE Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
(73,016)
22,487
(25,462)
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
15.9%
15.2%
12.8%
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
-
280,489
vs. Prev. Qtr
vs. 12 Mths Ago
-
-
vs. Prev. Qtr
vs. 12 Mths Ago
$28.07
$26.56
Delivered SF Quoted Rates $28.10
VITAL STATS
16.0%
300,000 250,000 200,000 150,000
14.0%
100,000 50,000 0 12.0%
(50,000) (100,000) (150,000)
10.0%
(200,000) 1Q 16
2Q 16
3Q 16
4Q 16
Absorption
1Q 17
2Q 17
3Q 17
4Q 17
Deliveries
1Q 18
2Q 18
3Q 18
4Q 18
1Q 19
Vacancy
Source: CoStar 1Q 2019 Office Report
CURRENT EVENTS • The brand-new commuter rail line from Fort Worth to DFW International Airport is now open. TexRail’s route is entirely in Tarrant County. The 27-mile rail line runs from downtown Fort Worth, Northeast through North Richland Hills to downtown Grapevine, and then into DFW International Airport Terminal B. TexRail trains run hourly and operate 365 days a year.
• The first phase of the city-led, multimillion-dollar streetscape improvements to Race Street just east of downtown is just about finished. With all of the heavy road construction completed now, only some landscaping and utility work remains. Race Street’s revitalization project, Six Points Urban Village, was originally designated in 2005 and is one of 16 Fort Worth urban villages which are zoned for dense, mixed use development. This initial phase consisted of widening sidewalks, new onstreet parking, pedestrian lighting, protected bike lanes, decorative pavements, street markings and public art displays over a nearly 3,000 foot stretch from Grace Avenue to Riverside Drive. Numerous businesses are moving to the newly renovated area with Dallas-based Aberg Property Co. and Corsair Ventures also recently announcing their intent to construct a 140-unit Class A apartment complex at the corner of Race Street and Oakhurst Scenic Drive. Already existing are two recently constructed apartment complexes by Criterion Development Partners.
TOP LEASE TRANSACTIONS • CityCentral has leased 22,530 RSF at 600 W 6th Street from Red Oak Realty
• BGE Inc leased 15,000 SF at 777 Main street from Brookdale
• Mineral Ware leased 10,000 SF at 777 Taylor Street from the Fort Worth Club 10
DEALS ON THE MARKET • Royal Realty Services is selling the Oil & Gas Commerce/Star Telegram Building. The two (2) building Class B complex is 439,802 SF. • Tarrant County Junior College is selling 1500 Houston Street and neighboring 1400 Throckmorton Street. 1500 Houston is an existing 22,507 SF office building while the 1400 Throckmorton land site consists of 1.21 Acres. Both sites are under contract to an undisclosed developer. • Stream Realty is selling 904 Macon Street. 904 Macon Street is an existing 10,525 SF recently renovated office building.
NEW DEVELOPMENTS • The historic office building at 714 Main Street in Downtown Fort Worth has gotten approval to be redeveloped into a hotel. Development Service Group will turn the 97-year-old property into a 232 room Kimpton hotel. DSG purchased the property from XTO Energy, which put the building on the market in June after it relocated to Houston to be with its parent company, Exxon Mobil. • The Sinclair Hotel, once a 1920’s Class B office building, will complete renovations and will open in Summer 2019. The 164 room hotel will operate through Marriott’s Autograph collection. • The Marriott AC Hotel is under construction at 111 W 5th Street. The construction is set to be completed by year end 2019. The 246 room hotel will join a division of the Marriot brand that draws from European inspiration and design.
LAS COLINAS SUBMARKET INTELLIGENCE Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
20.0%
255,156
(4,009)
371,520
18.0%
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
18.2%
18.3%
15.4%
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
2,300,747
2,067,400
vs. Prev. Qtr
vs. 12 Mths Ago
-
364,500
vs. Prev. Qtr
vs. 12 Mths Ago
$25.44
$24.95
2,454,347 Delivered SF 246,400 Quoted Rates $25.56
VITAL STATS
800,000 600,000
16.0% 400,000 14.0% 200,000
12.0% 10.0%
0
8.0%
(200,000)
6.0% (400,000) 4.0% (600,000)
2.0% 0.0%
(800,000) 1Q 16
2Q 16
3Q 16
4Q 16
Absorption
1Q 17
2Q 17
3Q 17
4Q 17
1Q 18
2Q 18
3Q 18
Deliveries
4Q 18
1Q 19
Vacancy Source: CoStar 1Q 2019 Office Report
CURRENT EVENTS • WeWork is coming to Las Colinas in 2019. The coworking firm has recently announced that it will occupy 76.2K SF of space on three floors in the central tower of Williams Square starting in the third quarter. The Towers at Williams Square is underway on delivering a new Tenant lounge and fitness center along with planned renovations of Mustang Plaza at the front of the project. • Verizon’s $1 billion, 150-acre mixed-use project, Hidden Ridge, is starting to take form with the 10-story glass and stone office tower which will house Pioneer Natural Resources. The Building is set to deliver 4Q 2019. The development itself will have its own DART station and will pool together innovative amenities including the latest communications technology, coworking spaces, incubators, and hightech apartment homes within a mixed-use roundup of retail, residential and an estimated 3M SF of office space. • In January, the 152-room Texican Court hotel opened its doors to the public. The hotel by the Valencia Group Hotel Collection is full of 1950s and 60s western décor making guests feel they are a part of an old western film. Along with the 152 rooms, the hotel offers over 3,500 SF of on-site meeting space including the 2,668 SF Little Chapel Ballroom. On-site dining is provided by the Two Mules Cantina.
TOP LEASE TRANSACTIONS • • • •
Exeter Financial subleased 111,795 SF at 2101 W John Carpenter We Work leased 76,229 SF at Williams Square Sirius XM Radio leased 58,380 SF at 8550 Freeport Parkway Cognitive Neuroscience Society leased 40,699 SF at 4851 Regent Boulevard • Examination Management Services, Inc. leased 33,207 SF at 3050 Regent Boulevard • The LaSalle Group signed a 26,625 SF at 545 E John Carpenter Freeway
DEALS ON THE MARKET • Office Properties Income Trust is selling 8701-8711 Freeport Parkway. The Class B office building is 255,375 SF and fully leased to Allstate Insurance Company. • Myers & Crow Company is selling Royal 10 Office Center. The 114,500 SF Class B office building was built in 2018 and is currently vacant. • Brookfield Property Group is selling Riverside Commons Building 1. The Class A office building is 100,661 SF and currently vacant. • Cheston Trust is selling Gateway Plaza. The 78,840 SF Class B office building is currently 83.7% leased. • Wakefield Capital Management is selling The Boardwalk. The 78,813 SF Class B office building is 20.8% leased. • Sperry Commercial is selling Valley Centre. The 77,686 SF Class B office building is currently 96.6% leased.
• Charter Holdings is selling Commerce Park II. The two-building, Class B office complex contains a total of 69,981 SF. • Goldhaber Las Colinas, LLC is selling 1440 Corporate. The 50,000 SF Class B Office Building is currently fully leased. • 1212 Corporate Drive – a 133,552 SF class A office building.
NEW DEVELOPMENTS • 777 Hidden Ridge is a 1,125,000 SF Class A office building currently under construction set to deliver October 2019. The building is a part of Verizon’s 110-acre project in and will serve as the headquarters for Pioneer Natural Resources. • The USCIS Building is a 259,947 SF Class A office building currently under construction at the corner of Belt Line Road and Bush Turnpike. The property will be leased for 20 years and will serve as a Citizenship and Immigration Services Center. It is set to deliver March 2020. • 3200 Olympus Boulevard is a 250,000 SF Class A office building currently under construction set to deliver in October of 2019 in the Cypress Waters development. • 3201 Olympus Boulevard is a 250,000 SF Class A office building currently under construction set to deliver in March of 2019 in the Cypress Waters development. The building has already been leased in its entirety by Nokia Siemens Networks. The balance of their 350,000 SF lease will be accommodated at 3100 Olympus Boulevard. • 3401 Olympus Boulevard is a 200,000 SF Class A office building under construction set to deliver February 2020. The building is being constructed on a speculative basis. • 3501 Olympus Boulevard is a 200,000 SF Class A office building under construction set to deliver February 2020. The building is being constructed on a speculative basis. • 1801 Wittington Place is a 103,000 SF Class B Office Building under construction set to deliver October 2019. The building is being constructed on a speculative basis.
LARGE EXISTING VACANCIES • • • • • • • • • • • •
1925 W John Carpenter Freeway – 403,150 SF 901 W Walnut Hill Lane – 346,951 SF 6000 Connection – 293,890 SF 4000 Horizon Way – 292,988 SF Cottonwood Office Center – 165,818 SF 1555 W Walnut Hill Lane – 151,736 SF 8222 N Belt Line Road – 135,200 SF 6031 Connection Drive – 114,524 SF 3600 W Royal Lane – 114,500 SF 8616 Freeport Parkway – 105,778 SF Park West 2 – 103,980 SF 5040 Riverside – 100,661 SF
11
LBJ SUBMARKET INTELLIGENCE Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
25.0%
206,698
(244,747)
142,560
24.5%
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
24.0%
22.3%
23.2%
21.1%
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
-
20,000
vs. Prev. Qtr
vs. 12 Mths Ago
-
-
vs. Prev. Qtr
vs. 12 Mths Ago
$22.49
$22.53
Delivered SF Quoted Rates $22.77
VITAL STATS
300,000
200,000
23.5%
100,000
23.0% 22.5%
0
22.0% (100,000)
21.5% 21.0%
(200,000)
20.5% 20.0%
(300,000) 1Q 16
2Q 16
3Q 16
4Q 16
Absorption
1Q 17
2Q 17
3Q 17
4Q 17
Deliveries
1Q 18
2Q 18
3Q 18
4Q 18
1Q 19
Vacancy Source: CoStar 1Q 2019 Office Report
CURRENT EVENTS • With a settlement between the owners of the vacated Valley View Mall and the city completed, demolition has begun. After an almost year long legal battle, demo has officially restarted, and the mall will be torn down by the end of the year. This will free up over 70-acres of land for the new Dallas Midtown development which will bring new office, retail and multifamily development to the heart of the city. Almost one-third of Dallas’ population lives within 3.5 miles of Dallas Midtown’s project located at the intersection of 635 and Preston Road.
TOP LEASE TRANSACTIONS • Onyx Payments has signed a 11.6K SF lease in Two Lincoln Centre.
• Crown Labs has signed a 6K SF lease in Pinnacle Tower. • Strayer University has signed a 5.9K SF lease in 2711 LBJ. • Keystone Consolidated has signed a 5.4K SF lease in One Galleria Tower. • vPromos has signed a 2.9K SF lease in The Crossings.
HLC Deal
12
NEW DEVELOPMENTS No developments are currently under construction at this time. However, three have been proposed: • Four Lincoln Centre – 400,000 SF • Park Tower at Dallas Midtown – 376,870 SF • The Inwood at Alpha West – 300,000 SF
LARGE EXISTING VACANCIES • Pinnacle Tower – 108,485 SF • 5525 Lyndon B Johnson Freeway – 111,092 SF • LBJ Tower – 110,928 SF • Midtown Office Center – 97,452 SF • The Crossings II (5501) – 86,515 SF HLC Deal
MIDINTELLIGENCE CITIES SUBMARKET VITAL STATS
Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
200,876
131,266
119,819
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
24.0%
17.6%
18.5%
19.4%
23.0%
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
22.0%
274,259
329,659
vs. Prev. Qtr
vs. 12 Mths Ago
56,470
-
vs. Prev. Qtr
vs. 12 Mths Ago
$22.54
$22.02
294,259 Delivered SF Quoted Rates $22.38
26.0%
300,000
25.0%
250,000 200,000 150,000 100,000 50,000
21.0%
0
20.0%
(50,000)
19.0%
(100,000)
18.0%
(150,000)
17.0%
(200,000) 1Q 16
2Q 16
3Q 16
4Q 16
Absorption
1Q 17
2Q 17
3Q 17
4Q 17
Deliveries
1Q 18
2Q 18
3Q 18
4Q 18
1Q 19
Vacancy
Source: CoStar 1Q 2019 Office Report
CURRENT EVENTS • DFW Airport has started preliminary discussions and planning for a 6th passenger terminal. This spring, airport authorities are starting to discuss plans for a new terminal that would be built with design standards that allow more airplanes to park in smaller space. Terminal F is not likely to be the same shape as the other terminals at DFW as the half-moon shape has proven to be a challenge at times for passengers needing to catch connecting flights. The terminal may not even include a parking garage with recent studies showing that at least a quarter of vehicle traffic at DFW is ride sharing groups like Uber and Lyft.
TOP LEASE TRANSACTIONS • Lockheed Martin leased 60,037 SF at 15100 FAA Blvd • Lester & Lester Realty Advisors leased 5,900 SF at 2928 Blue Quail Lane
• American Mensa leased 5,180 SF at 1200 E Copeland
DEALS ON THE MARKET • Starwood Capital Group is selling 4501 New York Avenue. The 175,537 SF Class B office building has been fully occupied by JP Morgan Chase & Co, however they will move out later this year. • Aque Investment Group is selling Copeland Tower and Stadium Place. The two-building project consists of a 126,628 SF Class A office building and an 84,327 SF Class B office building. • Zerby Interests is selling 8555 Airport Freeway. The 125,436 SF Class B office building is currently 70% leased. • Yacht Harbor is selling Arbors at Brookhollow. The 113,544 SF Class B office building is currently 89% leased. • 4D Circle is selling 7001 Boulevard 26. The 100,442 SF Class B office building is currently 98.7% leased. • Gateway Church is selling Cornerstone Business Park. The 71,567 SF Class B office building is fully leased to Gateway Church.
LARGE EXISTING VACANCIES • DFW Business Center South Tower – 48,068 SF • 300 Six Flags Drive – 51,540 SF • 4200 Buckingham – 58,090 SF • Airport Centre I – 46,052 SF
13
NORTH FORT WORTH SUBMARKET INTELLIGENCE Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
(54,292)
139,574
(43,567)
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
7.0%
4.9%
11.5%
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
300,720
225,000
vs. Prev. Qtr
vs. 12 Mths Ago
-
-
vs. Prev. Qtr
vs. 12 Mths Ago
$23.50
$21.76
300,720 Delivered SF Quoted Rates $24.45
VITAL STATS
20.0%
200,000
150,000
16.0%
100,000 12.0% 50,000 8.0% 0 4.0%
(50,000)
0.0%
(100,000) 1Q 16
2Q 16
3Q 16
4Q 16
Absorption
1Q 17
2Q 17
3Q 17
4Q 17
1Q 18
2Q 18
Deliveries
3Q 18
4Q 18
1Q 19
Vacancy
Source: CoStar 1Q 2019 Office Report
CURRENT EVENTS • More amenities are coming to a North Fort Worth mixed-use development. Champion Circle, located near Texas Motor Speedway, is a one-stop shop for retail, housing, office, entertainment and dining. The 1,000 AC land already has a Marriott, golf course, apartment complexes, an outlet mall and plenty dining options. “We bought this site many years ago because we knew how much growth was happening in that North Fort Worth corridor and how the roads were expanding,” said Bill Boecker, Development Managing Partner with KDC. Boecker said now they’re adding office spaces and more housing. “With all the complementary uses in place just steps away from office buildings will really attract major businesses,” Boecker said.
• Mid-States Distributing Co. Inc., a cooperative of retail stores catering to the farming sector, is relocating its Minnesota corporate headquarters to North Fort Worth. The Mendota Heights-based company has purchased a 40,000 SF building at 2800 Meacham Boulevard in North Fort Worth and plans to move over 100 employees to the new location by the fall. “We’re thrilled to call Fort Worth our new home,” said Jeff Rash, chief operating officer of Mid-States, in a prepared statement. “This move marks a milestone for the company. The building’s amenities, its western design and collaborative work space are attractive features and align with our brand’s identity, and we’re happy to bring more opportunities to our suppliers and members.”
14
TOP LEASE TRANSACTIONS • Compass Real Estate signed a 14,771 SF lease at Granite Place I.
• Texas Digestive Health Consultants signed a 7,707 SF lease at Granite Place I.
DEALS ON THE MARKET • 7001 Boulevard 26 – 100,442 SF Class B Office Building • Alta Vista & N Beach – 48,000 SF Class A Office Building
NEW DEVELOPMENTS • 10865 Texas Health Trail – 60,000 SF Class A office building set to deliver June 2019.
• Pinnacle Point – 27,695 SF Class B office building set to deliver November 2019.
• 320 S Oak Street – 20,000 SF Class B office building set to deliver June 2019.
LARGE EXISTING VACANCIES • 5401 N Beach – 431,579 SF • The Vista at Solana – 379,898 SF • 2601 Meacham – 216,082 SF • Heritage Commons IV – 164,333
PRESTON CENTER SUBMARKET INTELLIGENCE Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
(53,347)
95,379
40,059
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
10.5%
9.4%
13.0%
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
118,000
118,000
vs. Prev. Qtr
vs. 12 Mths Ago
-
-
vs. Prev. Qtr
vs. 12 Mths Ago
$37.81
$40.46
118,000 Delivered SF Quoted Rates $38.26
VITAL STATS
14.0%
200,000
150,000 12.0% 100,000
10.0%
50,000
0 8.0% (50,000)
6.0%
(100,000) 1Q 16
2Q 16
3Q 16
4Q 16
Absorption
1Q 17
2Q 17
3Q 17
4Q 17
Deliveries
1Q 18
2Q 18
3Q 18
4Q 18
1Q 19
Vacancy Source: CoStar 1Q 2019 Office Report
CURRENT EVENTS • Robert Dozier is confident in a plan to replace the much-discussed Preston Center garage with a live, work, play high-rise, despite its differences with a concept approved two years ago. The new proposed plan would consist of a three-level underground garage, street level park, 1,500-unit apartment complex on top with a street level restaurant. Total cost is estimated to be around $40M.
TOP LEASE TRANSACTIONS • Chase has signed a 41K SF renewal in Preston Commons Bank Tower.
• Sammons has signed a 25.5K SF renewal and expansion
NEW DEVELOPMENTS • 6517 Hillcrest Avenue, Hilltop Plaza – Under Construction 119,000 SF Class A office building
LARGE EXISTING VACANCIES • 8333 Douglas – 26,263 SF • 8117 Preston Road/West Tower – 25,136 SF • The Terraces at Douglas Center – 25,067 SF • 8343 Douglas Center – 21,337 SF • Bluffview Towers East – 18,719 SF • Sherry Lane Place – 15,700 SF • 8115 Preston Road/East Tower – 15,477 SF • Highland Park Place – 15,427 SF
in Sterling Plaza. • Ebby Halliday has signed a 10.5K SF renewal in The Berkshire. • Simmons Bank has signed a 9.1K SF renewal & expansion in The Berkshire. • Tubular Synergy has signed a 6K SF lease in Preston Commons. • State Farm Insurance has signed a 1.8K SF lease in Preston Sherry Plaza.
HLC Deal
HLC Deal
15
RICHARDSON/PLANO SUBMARKET INTELLIGENCE Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
294,395
37,939
150,989
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
19.2%
20.2%
19.1%
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
261,400 Delivered SF Quoted Rates $24.93
212,200
426,438
vs. Prev. Qtr
vs. 12 Mths Ago
-
118,040
vs. Prev. Qtr
vs. 12 Mths Ago
$24.83
$24.60
VITAL STATS
23.0%
1,000,000
22.0%
800,000
21.0%
600,000
20.0%
400,000
19.0%
200,000
18.0%
0
17.0%
(200,000)
16.0%
(400,000) 1Q 16
2Q 16
3Q 16
4Q 16
1Q 17
Absorption
2Q 17
3Q 17
4Q 17
Deliveries
1Q 18
2Q 18
3Q 18
4Q 18
1Q 19
Vacancy
Source: CoStar 1Q 2019 Office Report
CURRENT EVENTS • Dallas-based coworking group, CityCentral, has signed a lease in Central Five Hundred. The local coworking company will be taking 30.6K SF and plans to build out 100 private offices, collaborative space, and conference rooms. This is now the 3rd location for CityCentral but the first in Plano, putting them on the growing list of shared office operations in North Dallas.
• The new development, 3400 CityLine, is filling up thanks to 187K SF of leases signed recently. The building is now 60% leased to tenants DTX Technology, an AT&T analytics group, Generational Equity, and Common Desk.
• Plano’s Planning and Zoning Commission voted unanimously on April 1st to rezone plots housing the existing Collin Creek Mall from commercial-retail with specialuse permits to urban mixed-use. The commissioners’ approval is a major step in propelling the development forward, and the plan is now heading to City Council. Mehrdad Moayedi with Centurion American plans to develop the aging mall and its surrounding parking lots in three stages.
TOP LEASE TRANSACTIONS • DXC has signed a 100K SF lease in 3400 CityLine. • CityCentral has signed a 30.6K SF lease in Central Five Hundred.
• Common Desk has signed a 30K SF lease in 3400 CityLine.
• Swirlds has signed a 11.3K SF lease in 3400 CityLine. • Walder has signed a 3.1K SF lease in the Atrium on
HLC Deal
Collins.
16
DEALS ON THE MARKET • Richardson Office Center I & II – a 240,000 SF office building complex
• 555 Republic – a 97,909 SF office building NEW DEVELOPMENTS No developments are currently under construction currently. However, seven have been proposed: • Heritage Creekside Towers - 2,200,000 SF • CityLine – 2,000,000 SF • 7 CityLine – 417,000 SF • One Heritage Creekside – Phase I – 343,800 SF
LARGE EXISTING VACANCIES • 601 Data – 433,435 SF • Legacy Central 2 – 310,000 SF • 465 Independence Parkway – 251,347 SF • Campbell Glenn II – 205,820 SF • Legacy Central 1 – 197,042 SF • APEX – 186,244 SF • 2200 George Bush – 176,831 SF
SOUTHWESTINTELLIGENCE FORT WORTH SUBMARKET Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
(37,480)
(39,886)
46,925
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
10.3%
9.5%
8.9%
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
87,920
255,417
vs. Prev. Qtr
vs. 12 Mths Ago
17,000
-
vs. Prev. Qtr
vs. 12 Mths Ago
$23.51
$23.87
44,594 Delivered SF 67,850 Quoted Rates $24.06
VITAL STATS
12.0%
250,000 200,000
11.0% 150,000 10.0%
100,000 50,000
9.0%
0 8.0% (50,000) 7.0%
(100,000) 1Q 16
2Q 16
3Q 16
4Q 16
1Q 17
Absorption
2Q 17
3Q 17
4Q 17
1Q 18
2Q 18
3Q 18
Deliveries
4Q 18
1Q 19
Vacancy
Source: CoStar 1Q 2019 Office Report
CURRENT EVENTS • Developers have begun construction on the next phase of the highly anticipated Walsh Ranch in West Fort Worth. The 7,200 AC community initially opened in 2017 and has quickly become one of the largest mixed-use developments in North Texas, with over 600 residents moving into the project. Developer Republic Property Group has kicked off construction of 550 more homes, stating: “We’re focused on continuing to provide quality home sites and distinct neighborhood features that further the vision for Walsh and are affordable and attractive options for today’s buyers,” said Jake Wagner, co-CEO at Republic Property Group. Homes at Walsh Ranch have sold at prices ranging from the $270,000s to nearly $800,000. Developers and investors alike have now begin to shift their attention to commercial development surrounding the neighborhood, including office and retail.
• Coming out of the Great Recession, a new high of 1.1 million in total employment hit the record books, specifically since 2010. Within that timeframe, the Fort Worth office market has experienced demand totaling 2.7M SF. Even with the concerns surrounding XTO’s exit from Fort Worth, the office market seems to have successfully powered through. In the areas surrounding downtown, deliveries and relocations have created many new opportunities. The West/Southwest Fort Worth submarket had the largest net gain with 1.3M SF in absorption. This pushed asking rents to mirror downtown and vacancy rates to below 7% for both class-A and B by the end of 2018. The market-wide average has been nearly 450,000 SF annually, with West/Southwest Fort Worth accounting for 50% of the market total. Furthermore, 2018 was a record year for Fort Worth’s office market highlighted by the highest net absorption Fort Worth has seen in the last several years. The West/ Southwest submarket is now at or near its all-time high in occupancy.
TOP LEASE TRANSACTIONS • Caregiver has leased just over 24,000 RSF at First Command Plaza.
• Civitas signed a 14,391 SF lease at Lexington Place. • Alcon signed a 8,971 SF lease at First Command Plaza. DEALS ON THE MARKET • 1212 Lancaster Avenue – 89,632 SF Class B Office • 401-403 S Jim Wright Freeway – 43,463 SF Class B Office
• Plaza on Hulen – 25,000 SF Class B Office Complex NEW DEVELOPMENTS • 5668 Edwards Ranch – 27,312 SF Class A office building set to deliver December 2019.
• Fairway Centre – 20,070 SF Class B office building set to deliver September 2019.
LARGE EXISTING VACANCIES • 481 Winscott Road – 44,717 SF • Overton Centre II – 26,849 SF • 3909 Hulen Street – 22,414 SF • Western Place II – 22,226 SF
17
STEMMONS SUBMARKET INTELLIGENCE Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
89,982
58,045
(106,533)
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
24.4%
25.1%
25.6%
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
-
414,000
vs. Prev. Qtr
vs. 12 Mths Ago
Delivered SF Quoted Rates $17.00
-
-
vs. Prev. Qtr
vs. 12 Mths Ago
$16.95
$16.98
VITAL STATS 12.0%
250,000 200,000
11.0% 150,000 10.0%
100,000 50,000
9.0%
0 8.0% (50,000) 7.0%
(100,000) 1Q 16
2Q 16
3Q 16
4Q 16
1Q 17
2Q 17
Absorption
3Q 17
4Q 17
Deliveries
1Q 18
2Q 18
3Q 18
4Q 18
1Q 19
Vacancy
Source: CoStar 1Q 2019 Office Report
CURRENT EVENTS • Data center specialist, Equinix, is going to spend $138MM with plans to add on to the Infomart. The expansion will include around 290K SF of additional space set to deliver in 2020. Data centers are currently benefiting from the rapid growth in data usage led by e-commerce players and video-on-demand providers. Equinix purchased the building for $800MM a year ago.
• Parkland Hospital Systems is about to start construction on a major addition to its campus. A six-story office building will be built off Maple Avenue, just east of Parkland’s 4-year-old $1.3B main campus. The Parkland expansion is slated to be over 500K SF and be roughly valued at $150MM. The HKS designed project will deliver in early 2021.
• Dallas City Hall employees selected a $179M revitalization plan for Bachman Lake on Monday. Sitting just to the North end of Love Field Airport, drainage problems have become an issue as of late. Even with the endorsement of the task force and the city’s Mobility Solutions, Infrastructure and Sustainability Committee, the plan still must pass city council. The proposal allows for the city to continue to develop amenities around the lake, including a skate park, aquatics center and planned improvements to the area’s recreation center.
18
TOP LEASE TRANSACTIONS • Chamblee Ryan has signed a 15.5K SF lease in Trinity Towers.
• AMCAP has signed a 5.3K SF lease in Brookhollow North.
• Power Play Radio has signed a 2.6K SF lease in 7800 Ricchi Tower.
• Control Panels USA has signed a 1.2K SF lease in Mockingbird Towers.
DEALS ON THE MARKET • 1430 & 1440 Empire Central – a 320,000 SF office building complex
NEW DEVELOPMENTS No new developments are currently under construction at this time, however, three have been proposed: • 2345 Mockingbird Lane/West Love – 1,000,000 SF • The Design District Tower – 243,100 SF • 141 Glass Street – 65,000 SF
LARGE EXISTING VACANCIES • Pegasus Place - The Tower – 518,656 SF • 1430 & 1440 Empire Central Drive – 320,000 SF • The Connection at 8600 – 200,000 SF • Comerica Service Center – 142,600 SF • 7800 Ricchi Tower – 104,357 SF • Ricchi Towers/South – 90,626 SF • Trinity Towers – 79,028 SF • Infomart Freeway – 65,888 SF
SUBMARKETUPTOWN INTELLIGENCE Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
135,259
111,647
(21,781)
Vacancy
vs. Prev. Qtr
16.2%
17.0%
U/C SF 231,098 Delivered SF 34,762 Quoted Rates $39.42
vs. Prev. Qtr 265,860
VITAL STATS 18.0%
600,000
16.0%
500,000
vs. 12 Mths Ago
14.0%
400,000
12.7%
12.0%
300,000
vs. 12 Mths Ago
10.0%
200,000
8.0%
100,000
6.0%
0
4.0%
(100,000)
2.0%
(200,000)
1,310,848
vs. Prev. Qtr
vs. 12 Mths Ago
420,688
-
vs. Prev. Qtr
vs. 12 Mths Ago
$39.27
$38.64
0.0%
(300,000) 1Q 16
2Q 16
3Q 16
4Q 16
Absorption
1Q 17
2Q 17
3Q 17
4Q 17
1Q 18
2Q 18
Deliveries
3Q 18
4Q 18
1Q 19
Vacancy
Source: CoStar 1Q 2019 Office Report
CURRENT EVENTS • With the El Fenix land site in Uptown up for sale, the race is on to see who will buy and develop the next Uptown project. El Fenix has been a staple in that very location since the 1960s but with Victory Park and Uptown land valued in the $300s per foot, and the success of its newest neighbor, the Union development, the landowner feels the time is right to sell. • The cloud-based software company, SalesForce, is set to occupy 100K SF in uptown’s newest building, The Union, which will be 90% leased after the tech company moves in. The development includes a 31-story apartment complex and a retail building that will be anchored by Tom Thumb which will deliver this spring. • With Uptown’s newest projects, Park District and Union office towers 90% and 75% leased respectively, developers are working on the next round of buildings. A few of the notable developments in the next round include The Link, Kaizen’s 22-story tower planned at Akard and Olive. Granite Properties’ Cedar Maple Plaza, a 27-story office project across the street from the Crescent. Hillwood Victory Park, the 15-story 374K SF tower just west of the American Airlines center.
• Deliverfund has signed a 4.3K SF lease in IBC Plaza. • 3DPT has signed a 3.6K SF lease in 3500 Oak Lawn. • Scissors & Scotch has signed a 2.7K SF lease in The Crescent.
HLC Deal
NEW DEVELOPMENTS Under Construction • 2850 N Harwood Street, No. 10 – 231,098 SF office building with Harwood International • The Link – 300,000 SF office building with Kaizen Proposed • Victory Center – 455,526 SF office building with Hines • 3001 Turtle Creek Boulevard – 326,682 SF office building with Hillwood • 2601 Victory Avenue – 347,892 SF office building with Hillwood • 2727 Turtle Creek – 260,072 SF office building with Prescott
LARGE EXISTING VACANCIES • • • • •
2501 Cedar Springs Road – 110,415 SF 2101 Cedar Springs/Rosewood Court – 84,362 SF PwC Tower/2121 Pearl Street – 69,636 SF One McKinney Plaza/3232 McKinney Avenue – 68,496 SF 2100 McKinney/2100 McKinney Avenue – 68,047 SF
TOP LEASE TRANSACTIONS • Hana has signed a 67K SF lease in PwC Tower. • Katten Muchin Rosenman LLP has signed a 56K SF lease in PwC Tower. • Cushing Management has signed a 14.7K SF lease in The Crescent. • Caldwell Cassady & Curry has signed a 14K SF lease in PwC Tower. • Briggs Freeman has signed a 11.3K SF lease in Turtle Creek Tower. • Forrest Perkins has signed a 10.9K SF lease in 3131 Turtle Creek. • Met Life has signed a 6K SF lease in PwC Tower. • Lurin Management has signed a 5.3K SF lease in Rosewood Court.
19
DALLAS
5950 Berkshire Lane Suite 900 Dallas, Texas 75225 T 972.241.8300 F 972.241.7955
FORT WORTH
300 Throckmorton Street Suite 550 Fort Worth, Texas 76102 T 817.710.1110 F 817.810.9017
www.holtlunsford.com
HOUSTON
11451 Katy Freeway Suite 300 Houston, Texas 77079 T 713.850.8500 F 713.850.8550