OFFICE Q3 2023 MARKET REPORT DALLAS/ FORT WORTH
P ro p er t y : One R i d g ma r Ce ntre
w w w.h o l t l u n s fo rd .co m
TABLE OF CONTENTS
05
DFW Office Market Experts
06
Featured Properties
08
DFW Office Submarket Coverage
09
DFW Office Facts & Figures
10
Submarket Intelligence
DALLAS 5950 Berkshire Lane, Suite 900 Dallas, Texas 75225 T 972.241.8300 | F 972.241.7955
FORT WORTH 1200 Summit Avenue, Suite 300 Fort Worth, Texas 76102 T 817.710.1110 | F 817.810.9017
www.holtlunsford.com
Q3 2023 DFW OFFICE MARKET REPORT 05
DFW OFFICE Market Experts
MATT CARTHEY
JOHN DICKENSON
CHASE STONE
TYLER HOWARTH
Partner, Managing Principal Fort Worth mcarthey@holtlunsford.com 817.710.1111
Managing Principal Dallas jdickenson@holtlunsford.com 972.421.1971
Managing Principal Dallas cstone@holtlunsford.com 972.265.0128
Managing Principal Dallas thowarth@holtlunsford.com 972.280.8302
DAVID CASON
JAKE NEAL
VIC MEYER
HUNTER HEDRICK
Vice President Fort Worth dcason@holtlunsford.com 817.810.9137
Vice President Fort Worth jneal@holtlunsford.com 817.710.1112
Market Director Fort Worth vmeyer@holtlunsford.com 817.710.1113
Market Associate Dallas hhedrick@holtlunsford.com 972.421.1973
JOHN ARMES
PAUL HERNANDEZ
HARRISON DAVIS
CAROLINE HIX
Market Associate Dallas jarmes@holtlunsford.com 972.381.3210
Market Associate Dallas phernandez@holtlunsford.com 972.380.3641
Market Analyst Dallas hdavis@holtlunsford.com 972.421.1974
Market Analyst Dallas chix@holtlunsford.com 972.421.1961
HUDSON SHEETS
CARTER SELLS
HAYDEN PARKER
GARRETT LEVY
Market Analyst Dallas hsheets@holtlunsford.com 972.421.1975
Market Analyst Fort Worth csells@holtlunsford.com 817.632.6153
Market Analyst Dallas hparker@holtlunsford.com 972.265.0129
Market Analyst Dallas glevy@holtlunsford.com 972.585.5110
MATT ARENDS
KAREEM AMER
Market Analyst Dallas marends@holtlunsford.com 972.585.5154
Market Analyst Fort Worth kamer@holtlunsford.com 817.632.6169
Dallas Featured Property LINCOLN LEGACY II
Fort Worth Featured Property ONE WEST 7TH
08 Q2 2023 DFW OFFICE MARKET REPORT
SUBMARKET INTELLIGENCE
DFW OFFICE Submarket Coverage OTHER SUBMARKETS
TUR
1 FORT WORTH CBD 2 NORTHEAST FORT WORTH 3 PRESTON CENTER 4 UPTOWN/TURTLE CREEK 5 DALLAS CBD 6 STEMMONS FREEWAY 7 LBJ PONDER 8 CENTRAL EXPRESSWAY
DENTON McKINNEY
FAR NORTH DALLAS
PRINCETON
ALLEN/MCKINNEY FRISCO
LEWISVILLE/DENTON
ALLEN
JUSTIN
THE COLONY
BOYD
LEWISVILLE
RICHARDSON/PLANO
NORTH FORT WORTH
PLANO
FLOWER MOUND
WYLIE
ROANOKE
HASLET
CARROLLTON GRAPEVINE
KELLER
COPPELL LAS COLINAS
ADDISON
RICHARDSON
SOUTHLAKE FARMERS BRANCH
DFW INTERNATIONAL AIRPORT
7
GARLAND
ROCKWALL ROWLETT
LAS COLINAS
8
COLLEYVILLE
3
SAGINAW DALLAS LOVE FIELD AIRPORT
BEDFORD EULESS FORT WORTH MEACHAM INTERNATIONAL AIPRORT
RICHLAND HILLS
HURST
WHITE SETTLEMENT
6
IRVING
2
4
MID-CITIES
EAST DALLAS SUNNYVALE 5
1
DALLAS
MESQUITE
FORT WORTH
FORNEY
GRAND PRAIRIE ARLINGTON
DALLAS EXECUTIVE AIRPORT
BENBROOK DUNCANVILLE
HUTCHINS
CRANDALL
WEST-SOUTHWEST FORT WORTH
CEDAR HILL
DESOTO
LANCASTER
MANSFIELD
SOUTHWEST DALLAS
BURELSON
N
RED OAK
SOUTHEAST FORT WORTH MIDLOTHIAN
WAXAHACHIE
CLEBURNE ENNIS
Q3 2023 DFW OFFICE MARKET REPORT 09
DFW OFFICE Facts & Figures OVERALL DFW
OVERALL VACANCY
20.0%
4,000,000
18.0%
3,000,000
20.0% 17.8% 16.1%
2,000,000
16.0%
14.9%
18.0% 16.0%
16.1%
14.0% 12.0%
1,000,000
10.0%
14.0% 0 12.0%
8.0% 6.0%
-1,000,000
10.0%
-2,000,000
8.0%
4.0%
1.7%
1.2%
2.0% 0.0%
-3,000,000 Q3 20
Q4 20
Q1 21
Q2 21
Q3 21
Q4 21
ABSORPTION
Q1 22
Q2 22
Q3 22
Q4 22
Q1 23
DELIVERIES
Q2 23
Q3 20
Q3 23
Q4 20
Q1 21
Q2 21
Q3 21
Q4 21
Q1 22
DIRECT
VACANCY
OVERALL ABSORPTION
Q2 22
Q3 22
Q4 22
Q1 23
Q2 23
SUBLET
Q3 23
TOTAL
OVERALL CONSTRUCTION 7,000,000
10,000,000
6,000,000
9,000,000
5,000,000
8,000,000
4,000,000
7,000,000
3,000,000
6,000,000
2,000,000
5,000,000
1,000,000
4,000,000
0
3,000,000
-1,000,000
2,000,000 1,000,000
-2,000,000
0
-3,000,000 Q3 20
Q4 20
Q1 21
Q2 21
Q3 21
Q4 21
TOTAL NET
Q1 22
Q2 22
Q3 22
Q4 22
Q1 23
Q2 23
Q4 20
Q1 21
Q2 21
Q3 21
DELIVERED
LEASING ACTIVITY
EXISTING INVENTORY SUBMARKET
Q3 20
Q3 23
Q4 21
Q1 22
Q2 22
Q3 22
Q4 22
Q1 23
Q2 23
Q3 23
UNDER CONSTRUCTION
VACANCY
# BLDGS.
TOTAL RBA
DIRECT SF
TOTAL SF
VAC. %
YTD NET ABSORPTION
YTD DELIVERIES
UNDER YTD LEASING CONSTRUCTION SF ACTIVITY
Dallas CBD
145
34,867,645
8,535,028
9,368,252
26.9%
(2,434,653)
0
0
792,394
Central Expressway
251
14,967,787
2,655,292
2,807,935
18.8%
(162,251)
0
0
821,737
Far North Dallas
1,346
74,436,130
14,477,310
16,175,806
21.7%
(307,052)
1,231,070
2,884,227
3,375,398
Fort Worth CBD
121
11,269,912
1,284,748
1,320,163
11.7%
129,493
0
0
365,053
Las Colinas
505
45,348,948
9,148,977
10,499,320
23.2%
(372,052)
1,135,753
951,101
3,678,321
LBJ Freeway
254
22,998,826
5,220,910
5,701,874
24.8%
(124,554)
0
0
1,280,751
Mid-Cities
2,778
44,510,858
6,512,964
6,894,034
15.5%
(295,185)
450,578
294,171
1,496,137
North Fort Worth
839
12,212,422
1,088,386
1,312,058
10.7%
41,418
44,931
353,380
368,170
Preston Center
173
7,694,318
686,604
798,866
10.4%
64,762
323,860
10,434
364,759
Richardson/Plano
850
35,489,023
4,812,539
5,388,666
15.2%
51,657
258,577
40,940
1,235,752
SW Fort Worth
1,441
20,841,314
1,567,559
1,609,695
7.7%
372,091
331,570
56,449
1,062,280
Stemmons
315
16,177,726
2,553,155
2,778,539
17.2%
575,251
170,000
272,743
260,371
Uptown/Turtle Creek
303
17,436,395
2,981,099
3,202,776
18.4%
202,273
359,914
1,939,163
1,648,088
TOTALS
9,321
358,251,304
61,524,571
67,857,984
18.9%
(2,258,802)
4,306,253
6,802,608
16,749,211
SOURCE: COSTAR Q2 2023 OFFICE REPORT
10 Q2 2023 DFW OFFICE MARKET REPORT
SUBMARKET INTELLIGENCE
DALLAS CBD CURRENT EVENTS A Dallas energy firm is headed to new digs in Victory Park. HF Sinclair Corp. is taking more than 90,600 SF of space in the One Victory Park tower northwest of downtown. The company is moving from near The Crescent to the 20-story tower at 2323 Victory Avenue. “We are excited by the opportunity to partner with HF Sinclair to bring their global headquarters and iconic Dino brand to One Victory Park,” David Dow of building owner Clarion Partners said in a statement. “With the property’s best-in-class amenities such as the new food hall, and prime location offering easy accessibility, we’re confident One Victory is a place HF Sinclair will love to call home for many years to come.” HollyFrontier Corp. and Holly Energy Partners L.P. last year established HF Sinclair Corp. after an acquisition of Sinclair Oil Corp. and Sinclair Transportation Co. The energy firm manufactures and sells gasoline, diesel fuel, jet fuel, products and specialty chemicals. A landmark building in downtown Dallas’ West End district has changed hands. The more than century-old Landmark Center on Ross Avenue is one of the largest properties in the historic district. The six-story building was constructed in 1913 as a warehouse for General Electric. The 140,317 SF property was converted to offices in the 1970s. The historic building has been up for sale since last year. Previous owner Spear Street Capital invested more than $7 million to upgrade Landmark Center since acquiring the property in 2015. A week after one of downtown Dallas’ largest office occupiers announced plans to leave, one of the area’s top developers says the city’s core needs a new generation of office space. Multiple businesses have migrated from downtown to newer buildings in Uptown in the past decade. Bank of America plans to leave its longtime location on Main Street for a 30-story tower to be built just north of downtown.“Downtown needs new office space,” said Lucy Burns, partner in Dallas-based Billingsley Co., one of North Texas’ most successful office builders. “Uptown is getting a lot of it. “Downtown needs some to continue to attract business – particularly groups that are moving here from other parts of the country,” Burns said at a Thursday meeting of the economic development group Downtown Dallas Inc.
VITAL STATS
Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
(245,947)
(62,789)
1,656,426
35.0%
2,000,000
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
30.0%
1,500,000
25.0%
26.9%
26.2%
22.9%
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
-
-
60,230
Delivered SF
vs. Prev. Qtr
vs. 12 Mths Ago
-
-
-
Quoted Rates
vs. Prev. Qtr
vs. 12 Mths Ago
$30.23
$30.15
$28.98
TOP LEASE TRANSACTIONS • Haynes and Boone a 125K SF lease at a tower at 2801 North Harwood Street in Dallas. • Barrow Hanley Mewhinney & Strauss, LLC renewed its 41.1K SF lease at Chase Tower, 2200 Ross Avenue in Dallas.
DEALS IN THE MARKET • Plaza of the Americas is being marketed for sale by Newmark. M&M/ Clarion own the 1.14M SF building, which is 64% leased.
NEW DEVELOPMENTS • Field Street Tower | 2012 N Field Street – A 529K SF class A office district (proposed) • Field Street District – Phase I | 1100 McKinney Avenue – A 500K SF class A office tower (proposed) • One Newpark | 806 S Akard Street – A 500K SF class A office tower (Proposed) • Field Street District – Phase II | 1012 McKinney Avenue – A 500K 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)
1,000,000 500,000
20.0%
0 15.0%
-500,000
10.0%
-1,000,000
5.0%
-1,500,000
0.0%
-2,000,000 Q3 20
Q4 20
Q1 21
Q2 21
ABSORPTION
Q3 21
Q4 21
Q1 22
Q2 22
Q3 22
Q4 22
Q1 23
DELIVERIES
Q2 23
Q3 23
VACANCY
LARGE EXISTING VACANCIES • Renaissance Tower | 1201 Elm Street – 622,880 SF • Fountain Place | 1445 Ross Avenue – 589,268 SF • Field Street Tower – 529,038 SF • Field Street District – Phase 2 – 500K SF • Field Street District – Phase 1 – 500K SF • 555 S Pearl Expressway – 486K SF • Energy Plaza | 1601 Bryan Street – 400K SF • Bank of America Plaza | 901 Main Street – 287,054 SF • Two Arts Plaza – 296,800 SF • 1700 Pacific | 1700 Pacific Avenue – 270,822 SF • Bryan Tower | 2001 Bryan Street – 226,975 SF • Dallas Arts Tower – 193,203 SF • Harwood Center | 1999 Bryan Street – 187,728 SF • Comerica Bank Tower | 1717 Main Street – 148,025 SF • East Quarter | 300 S Pearl Expressway – 136,245 SF • Radiance Plaza | 1301 Young Street – 117,673 SF • One Main | 1201 Main Street – 115,410 SF • Plaza of the Americas - South Tower – 109,964 SF
SUBMARKET INTELLIGENCE
Q3 2023 DFW OFFICE MARKET REPORT 11
CENTRAL EXPRESSWAY CURRENT EVENTS
Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
(19,368)
(161,050)
(18,030)
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
18.8%
18.7%
17.9%
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
-
-
-
Delivered SF
vs. Prev. Qtr
vs. 12 Mths Ago
-
-
-
Quoted Rates
vs. Prev. Qtr
vs. 12 Mths Ago
$35.38
$35.31
$34.75
TOP LEASE TRANSACTIONS • Southwest Risk renewed its 26K SF lease at Walnut Glen Tower, 8144 Walnut Hill Lane in Dallas.
NEW DEVELOPMENTS • The Central – A 500K SF class A office tower (proposed)
VITAL STATS 20.0%
200,000
19.0%
150,000
18.0%
100,000
17.0%
50,000
16.0%
0
15.0%
-50,000
14.0%
-100,000
13.0%
-150,000
12.0%
-200,000
11.0% 10.0%
-250,000 Q3 20
Q4 20
Q1 21
Q2 21
ABSORPTION
Q3 21
Q4 21
Q1 22
Q2 22
Q3 22
Q4 22
Q1 23
DELIVERIES
Q2 23
Q3 23
VACANCY
LARGE EXISTING VACANCIES • 2828 N Haskell Avenue – 475K SF • Energy Square 4 – 400K SF • Cityplace Tower – 269,604 SF • The Tower at Preston Hollow Village – 250K SF • The Ivy – 191,050 SF
• Energy Square 4 – A 400K SF class A office tower (proposed)
• 8750 NorthPark Central – 102,297 SF
• The Ivy – a 265K SF class A office tower (proposed)
• One Lincoln Park – 91,477 SF
• The Tower at Preston Hollow Village – A 260K SF class A office tower (proposed)
• 8080 NCX – 133,793 SF
A Dallas developer is finalizing plans for two towers to be built on North Central Expressway near Highland Park. Woods Capital last year acquired two high-rise development sites on the west side of North Central at Webb Avenue. The developer with a track record of major downtown Dallas projects has been working on plans for two buildings on the properties. On the development site at 5115 McKinney Avenue, Woods Capital intends to build a 20-story residential tower, according to planning documents filed with the state. The $70M high-rise called The English will total more than 368K SF and is set to start early next year. WDG Architecture designed the building, which would open in 2026. Triten Real Estate Partners has completed the transformation of Assembly Park two years after debuting ambitious redevelopment plans for the 300K SF property. The development is located at Central Expressway and Spring Creek Parkway and is the former home of Plano Market Square Mall, a retail center built in 1983. Triten turned the mall into a mixeduse development consisting of multifamily, retail, restaurants and office space.
12 Q2 2023 DFW OFFICE MARKET REPORT
CURRENT EVENTS Topping out construction on an office building isn’t usually much of a headliner. But the structural completion of a Frisco building is different. It’s the first timber commercial building construction in the area in almost a century. Developer Crow Holdings hopes to complete the wood-structured Southstone Yards building by the end of the year. The seven-story, 242K SF office building constructed with “mass timber” beams is going up on the north side of State Highway 121, west of the Dallas North Tollway. It’s the first and largest mass timber office building project in North Texas. Crow Holdings started the Frisco project last year — the first phase of a 45-acre mixed-use development. This week, contractors with Structure Tone and SmartLam North America put the last laminated wood beams in place at Southstone Yards. Crow Holdings senior managing director Cody Armbrister said the building should be ready for the first occupants by the start of 2024. The developer is talking to potential tenants for the project. With the newest building opening its doors in the Dallas Cowboys’ Star development in Frisco, plans are already in the works for another high-rise. The $1.5 billion, 91-acre mixed-use development on the Dallas North Tollway has been under construction since 2014 and includes the headquarters and training facilities for the professional football team. Blue Star Land — the real estate firm founded by Cowboys’ owner Jerry Jones — and developer Lincoln Property Co. have almost fully leased the newest 314K SF office building at 17 Cowboys Way at the tollway. The 11-story glass high-rise started construction in 2021. About 93% of the tower is leased to tenants at quoted rents of more than $40 per square foot. The largest tenants include Comerica Bank, financial services firm Cain Watters and Associates, tech firm McAfee, Wells Fargo Advisors and Boingo Wireless. One of North Texas’ biggest data center campuses is growing again. CyrusOne broke ground in 2017 on the first phase of its 90-acre tech complex on Chelsea Drive in Allen. It’s one of the largest data center campuses in Texas, planned for almost 1M SF of construction, according to CyrusOne. In August, the company filed plans for a $50 million, 82,750 SF expansion of the complex near U.S. Highway 75. Now CyrusOne is signaling that it will start work after the first of the year on another $31 million, 126,005 SF addition, according to planning documents filed with the state.
.
SUBMARKET INTELLIGENCE
FAR NORTH DALLAS
Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
(456,507)
49,495
278,945
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
21.7%
20.7%
20.2%
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
VITAL STATS 25.0%
1,000,000
20.0%
500,000 15.0%
2,884,227
2,214,474
2,228,606
10.0%
Delivered SF
vs. Prev. Qtr
vs. 12 Mths Ago
5.0%
435,109
309,120
26,791
Quoted Rates
vs. Prev. Qtr
vs. 12 Mths Ago
$34.33
$34.44
$34.13
TOP LEASE TRANSACTIONS
1,500,000
0 -500,000 -1,000,000 -1,500,000
0.0%
-2,000,000 Q3 20
Q4 20
Q1 21
Q2 21
Q3 21
Q4 21
ABSORPTION
Q1 22
Q2 22
Q3 22
Q4 22
DELIVERIES
Q1 23
Q2 23
Q3 23
VACANCY
•
•
Crestron Electronics extended its lease to 56.4K SF at Legacy Tower, 7250 North Dallas Parkway in Plano.
Parkside III in Legacy Drive – A 440K SF class A office building (proposed)
•
•
Hilton Worldwide Inc. renewed 52.8K SF at The Colonnade, 15305 North Dallas Parkway in Dallas.
Two Legacy West | 7950 Legacy Drive – A 414K SF class A office building (proposed)
•
•
National Bankruptcy Services signed a 45K SF space at 14841 North Dallas Parkway in Addison.
Ryan Tower | 8101 Windrose Avenue – A 409K SF class A office building
•
•
New York Life Insurance Co. signed a 23.9K SF lease at Pinnacle Tower, 5005 Lyndon B. Johnson Freeway in Dallas.
TCC Legacy | 6200 Legacy Drive – A 406K SF class A office building (proposed)
•
• HLC DEAL
AMLI Development Company signed a 13.2K SF lease at Liberty Plaza II, located at 5057 Keller Springs Road in Addison.
Granite Park Eight | 5650 Granite Parkway – A 400K SF class A office building (proposed)
•
HLC DEAL •
Corda Investment Management signed a new 2.7K SF lease at
Legacy Union Three | Legacy Circle – A 328K SF class A office building (proposed)
•
6333 Legacy Dr | The Campus at Legacy West – A 321K SF class A office building (proposed)
•
Legacy Union Two | Legacy Circle – A 320K SF class A office building
•
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)
•
HQ53 Phase II | 5303 Headquarters – A 250K SF class A office building
•
International Business | 6275 W Plano Parkway – A 240K SF class A office building
•
The Apex II at Legacy | 5801 Headquarters Drive – A 240K SF class A office building (Proposed)
•
Southstone Yards | NEC Spring Creek Parkway & State Highway 121 – A 235K SF class A office building
•
Fourteen555 – South Building | 14545 N Dallas Parkway – A 239K SF class A office building (proposed)
•
The Heritage At Spring Creek | Dallas North Tollway & Spring Creek Parkway – A 220K SF class A office building
•
Four Corners | President George Bush Highway & N Dallas Tollway – A 200K SF class A office building (proposed)
•
Plaza at Legacy II | 5465 Legacy Drive – A 200K SF class A office building (proposed)
•
NWC John Hickman Parkway | Auspire at The Gate- Phase 2 – A 200K SF class A office building
•
IBP 19 | W Plano Parkway – A 187K SF class A office building
•
Stonebrook Building IV – A 150K SF class A office building
Tollway Towers, 15660 N Dallas Parkway in Dallas.
DEALS IN THE MARKET •
Galleria Tower North II is being marketed for sale by CBRE. DWS/ RREEF owns the 379,019 SF office building which is 80% leased. Guidance pricing is $70/0M ($185/sf).
•
Parkway Plaza I & II is being marketed for sale by CBRE. Hartman owns the 136,506 SF buildings, which are 71% leased. Guidance pricing is $10.25M ($75/sf).
•
Bent Tree Green is being marketed for sale by JLL. Hartman owns the 139,609 SF building, which is 701% leased. Guidance pricing is $14.0M ($100/sf).
•
•
•
•
The Commons is being marketed for sale by Newmark. Triten owns the 91,046 SF office building which is currently 80% leased. Guidance pricing is $13.5M ($150/sf). Liberty Plaza I & II is being marketed for sale by Newmark. Franklin Street Properties owns the 216,834 SF office buildings, which are 78% leased. Guidance pricing is $38.0M ($175.sf). Interchange Office Center is being marketed for sale by JLL. Brookwood Financial Partners owns the 150,596 SF office building, which is 86% leased. Guidance pricing is $22.0M ($175/SF). Tollway Plaza is being marketed for sale by JLL. Buchanan Street and UC Regents own the 370,624 SF office buildings, which are 85.0% leased. The original guidance pricing was $90.0M ($245/sf).
•
One Legacy Circle is being marketed for sale by CBRE. Franklin Street Properties owns the 214,110 SF building, which is 71% leased. Guidance pricing is $53.5 M ($250/sf).
•
Parkway Office Centre IV is being marketed for sale by Newmark. Goldman Sachs owns the 174,322 SF building, which is 85% leased. Guidance pricing is $34.0 M ($195/sf).
•
Parkwood Place is being marketed for sale by Newmark. Vero Capital owns the 98,750 SF building which is currently 93.5% leased.
NEW DEVELOPMENTS •
The Link at Fields Frisco | Legacy Drive & PGA Parkway – A 2M SF class A office complex (proposed)
•
IBP 190 | Highway 190 & Midway Road - Building 1,2,3 – A 1M SF class A office park (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)
•
Destination Drive B – A 500K SF class A office building (proposed)
•
Destination Drive C – A 500K SF class A office building (proposed)
•
TIAA Frisco Corporate Center |3951 N Dallas Parkway – A 500K SF class A office building (propose)
•
The Tower at Hall Park | 6605 Warren Parkway – A 496K SF class A office building
•
Legacy West Office Tower | NEC Windrose Avenue – A 450K SF class A office building (proposed)
(proposed)
LARGE EXISTING VACANCIES •
5400 Legacy Drive – 1,587,458 SF
•
CALWest – 1,071,344 SF
•
The Campus at Legacy – 500,864 SF
•
Granite Park Six – 352,258 SF
•
AmerisourceBergen – 300K SF
•
5600 Headquarters Drive – 251,478 SF
•
6400 Legacy Drive – 227,577 SF
•
4101 International Parkway – 205,750 SF
SUBMARKET INTELLIGENCE
Q3 2023 DFW OFFICE MARKET REPORT 13
FORT WORTH CBD CURRENT EVENTS
Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
161,602
(28,162)
(28,684)
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
12.3%
15.4%
14.0%
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
-
-
-
Delivered SF
vs. Prev. Qtr
vs. 12 Mths Ago
-
-
-
Quoted Rates
vs. Prev. Qtr
vs. 12 Mths Ago
$28.59
$27.91
$28.26
TOP LEASE TRANSACTIONS • Higginbotham has signed a lease for 15,765 SF at 801 Cherry Street, Fort Worth, Texas 76102. • An undisclosed tenant has signed a lease for 15,480 SF at 100 Throckmorton, Fort Worth, Texas 76102. • ProTechnics has signed a lease for 1,467 SF at 801 Cherry Street, Fort Worth, Texas 76102.
DEALS IN THE MARKET • 210 E 7th Street is being marketed for sale by Jim Finley Properties. Jim Finley Properties own the 82,226 SF class B office building. • 1100 Macon Street is being marketed for sale by Sentry CRE. Manuel & Teresa Diaz own the 51,052 SF class C office building. • 512 W 4th Street is being marketed for sale by Lancarte Commercial Real Estate. The YMCA owns the 31,537 SF class B office building.
VITAL STATS 20.0%
200,000
18.0%
150,000
16.0%
100,000
14.0%
50,000
12.0%
0
10.0%
-50,000
8.0%
-100,000
6.0%
-150,000
4.0%
-200,000
2.0% 0.0%
-250,000 Q3 20
Q4 20
Q1 21
Q2 21
ABSORPTION
Q3 21
Q4 21
Q1 22
Q2 22
Q3 22
DELIVERIES
Q4 22
Q1 23
Q2 23
Q3 23
VACANCY
LARGE EXISTING VACANCIES • 301 Commerce Street | Bank of America Tower – A 62,660 SF class A vacancy • 801 Cherry Street | Burnett Plaza – A 54,421 SF class A vacancy • 777 Main Street | 777 Main – A 47,862 SF class A vacancy • 640 Taylor Street | Frost Tower – 45,872 SF class A vacancy • 307 W 7th Street | The Star-Telegram Building – 43,772 SF class B vacancy
Fort Worth has closed the books on the $18M purchase of the Central Library, setting up a development that could bring a new chapter of change to the area on the west side of downtown. While plans are still in the preliminary stages, Dart Interests LLC, a Dallas-based firm specializing in real estate investment and development, expects to build a multi-story, mixed-use development on the site with residential, retail and office space. The sale was initially announced in December, but didn’t officially close until May. The released renderings show two (2) 20-story buildings which would add a new appeal to Fort Worth’s skyline, said David Berzina,vice president of JLL Fort Worth. “Additionally, this sale not only sets a new benchmark for commercial land sales in downtown Fort Worth but also reflects the immense value and potential of the Fort Worth market,” he said. The price tag for the project is likely to exceed the $200M city officials were hoping to see for the development, JLL officials said. The two towers would replace the current 234K SF building at 500 W. 3rd St. that has housed the Central Library since 1978. The city listed the building in February 2022 pointing to a 45% decrease in usage since the 2020 pandemic and decreasing use of the building over time. That mirrored library usage trends around the country. The listing required prospective buyers to invest at least $100 million into the property and redevelop the area as a mixed-use project. The Dart Interests project is expected to exceed that, officials at JLL said. “We look forward to working with the city and its downtown residents and workforce to bring to life a development that gives more people the opportunity to live, work, play, and experience all that Fort Worth has to offer,” said Christopher Kelsey, Dart Interests president, in a statement.
Dart Interests has more than a billion dollars invested in real estate across seven states, including projects in New York, Washington, D.C., South Carolina and Houston, but the Fort Worth project is the company’s first in North Texas. The city had a requirement that the development include a new space for the library for several years. That requirement limited some potential buyers, Berzina said. But Dart Interests was on board with the library space, he said. “Now, we don’t know if that’s what the city wants to do, but that’s an available option,” Todd Burnette, managing director of JLL Fort Worth, who along with Berzina, was part of the team that marketed the property for the city, said the site generated a great deal of interest from around the country. “You’ve got the largest piece of property available downtown, two contiguous city blocks, so there was a lot of interest,” he said. Burnette noted that development downtown has recently focused on hotel expansions and that currently there are several downtown residential developments under way. He expects whatever is built on the Central Library property to be part of that. “We think the residential is truly what’s going to transform downtown Fort Worth,” Burnette said. He expects residential and retail will kick off the development with office development to follow. “That’s typically what occurs and in this case, with the interest rate environment as it is, that makes sense,” he said. However, Burnette said downtown needs new office development. The last new highrise office in downtown was the Frost Tower, which opened in 2018. “If you look at downtown, where there’s a 13% class A office vacancy, which means there are very limited full floor options downtown,” he said. That makes relocations or redevelopment of existing spaces difficult, he said. Corporate America is still trying to figure out how to attract employees back to the office, and the next wave of office development is going to reflect those trends, Burnette said. “I think once the Fed figures out where the interest rates need to be, we’ll see some very interesting office developments coming, and I think this will be one of them,” he said. “With all the development going on downtown, with Texas A&M and the convention center upgrades, we’re going to see office development.” The development of the property will not only create new jobs within the towers and during construction, but it will also help generate additional tax revenues for the city, Burnette said. As a city building, the library property isn’t currently on the tax rolls. The new development will add to the city’s tax base, he said. JLL is also consulting with the city on relocating central library services somewhere downtown. Those plans are still ongoing, JLL officials said.
14 Q2 2023 DFW OFFICE MARKET REPORT
SUBMARKET INTELLIGENCE
LAS COLINAS CURRENT EVENTS Another huge Dallas-Fort Worth data center project is in the works – this time in Las Colinas. The $180M development is planned by Kansas-based QTS Realty Trust, which operates data centers in more than a dozen states. In 2014, QTS Realty expanded to North Texas with its purchase of a 700K SF property near State Highway 114 in Irving. The building on Longhorn Drive previously housed a semiconductor plant. QTS repurposed the buildings and has been expanding on the more than 50-acre campus. The latest project will add 264,400 SF of space, according to planning documents filed with the state. The data center, designed by Dallas architect Corgan, is scheduled to open in late 2025. When finished, the Las Colinas campus is planned for about 2M SF. That would make it one of the largest data center complexes in North Texas.
Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
(147,200)
517,095
63,217
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
23.2%
22.3%
20.3%
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
951,101
1,251,101
1,192,022
Delivered SF
vs. Prev. Qtr
vs. 12 Mths Ago
300,000
464,000
322,877
Quoted Rates
vs. Prev. Qtr
vs. 12 Mths Ago
$28.44
$28.50
$27.70
TOP LEASE TRANSACTIONS •
HLC DEAL
• • • • •
HLC DEAL
•
AcquireBPO signed a new 17K SF lease at 3660 Regent in Irving. TAF Intellicenter leased 11.5K SF lease at Intellicenter Dallas, 3701 Regent Boulevard in Irving. NEC signed a new 10.3K SF lease at Williams Square West Tower, 5205 N O’Connor Boulevard in Irving. Total Wealth Academy signed a new 8.4K SF lease at Canal Centre, 400 E Las Colinas Boulevard in Irving. Marmaxx Operating Corp renewed its 8.4K SF lease at 8500 Freeport Parkway in Irving. Shapiro Hurst & Associates renewed their 2K SF lease at Branch Park, 13610 Midway Road in Farmers Branch. NRG Realty renewed its 1.9K SF lease at Las Colinas Highlands, 6191 N State Hwy 161 in Irving.
DEALS IN THE MARKET •
•
•
•
•
•
•
•
Regent II Office Center (5150 Regent) is being marketed for sale by Colliers. Yonezawa owns the 76,400 SF building, which is 18.5% leased. Guidance pricing is $11.0M ($145/sf). One Panorama Center is being marketed for sale by Newmark. Regent owns the 208,450 SF office building, which is 74% leased. Guidance pricing is $28.0M ($135/sf). 4200 Regent is being marketed for sale by Cushman & Wakefield. Property Income Advisors owns the 164,375 SF building, which is 36% leased. Guidance pricing is $14.75 M ($90/sf). Corporate Point at Las Colinas is being marketed for sale by Cushman & Wakefield. The 223,498 SF building is currently owned and occupied by Gainwell Technologies. Guidance pricing is $16.75M ($75/sf). Westway One is being marketed for sale by CBRE. Hartman owns the 165,982 SF building, which is 83% leased. Guidance pricing is 13.25M ($80/sf). Las Colinas Highlands is being marketed for sale by Cushman & Wakefield. Cawley Management owns the 200,167 SF building, which is 90.4% leased. Guidance pricing is $33.0M ($165/sf). Fuller Ridge is being marketed for sale by JLL. Goddard owns the 285,467 SF office buildings, which are 66% leased. Guidance pricing is 14.25M ($50/sf). 4000 Horizon Way is being marketed for sale by JLL. Champion Partners owns the 295,434 SF office building which sits on 24.81 acres of land and is currently 0.0% leased. Guidance pricing is $15.0M ($50/sf).
VITAL STATS 25.0%
1,000,000
20.0%
500,000
15.0% 0 10.0% -500,000
5.0%
0.0%
-1,000,000 Q3 20
Q4 20
Q1 21
Q2 21
ABSORPTION
•
Q3 21
Q4 21
Q1 22
Q2 22
Q3 22
Q4 22
DELIVERIES
Q1 23
Q2 23
Q3 23
VACANCY
1212 Corporate Center is being marketed for sale by Younger Partners. Libitsky owns the 125,0235 SF office building, which is currently 90.0% leased. Guidance pricing is $18.75M ($127/sf).
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 | 1101 W Royal Lane – A 275K SF class A office building (proposed) 9100 Cypress Waters Boulevard | Building D – A 250K SF class A office building (proposed) Mercer Business Park – A 200K SF class A office building (proposed) Las Colinas Corporate Center III – A 200K SF class A office building (proposed) Westridge Park Phase II – A 88K SF class A office building (proposed) SLH Walnut Hill – A 120K SF class A office building (proposed) 114 and Longhorn Drive – A 150K SF class A office building (proposed) Wells Fargo Campus – A 400K SF class A office building
LARGE EXISTING VACANCIES • • • • • • • • • • • • • • • • • • •
Exxon Mobil HQ – 379,014 SF 3300 Olympus – 300K SF 6000 Connection – 287,581 SF Horizon Way Business Park – 286,850 SF 8900 Freeport Parkway – 268,446 SF One MacArthur Ridge – 249,838 SF Regent Commons – 214,985 SF Intellicenter Dallas – 165,286 SF 6655 MacArthur – 172,232 SF Browning Place III – 170,848 SF Las Colinas Commons – 151,736 SF 600 ELC – 150K SF SF 6031 Connection Drive – 138,850 SF MacArthur Ridge II – 132,735 SF 3929 WJC – 125,421 SF Carpenter Corporate Center 2 – 112,149 SF Carpenter Corporate Center 1 – 111,795 SF 8840 Cypress Waters Boulevard – 108,502 SF Freeport Business Center 1 – 105,261 SF
SUBMARKET INTELLIGENCE
Q3 2023 DFW OFFICE MARKET REPORT 15
LBJ CURRENT EVENTS
VITAL STATS
Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
(25,605)
21,173
(92,311)
30.0%
150,000
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
25.0%
75,000
24.8%
24.7%
24.3%
20.0%
0
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
15.0%
-75,000
-
-
-
10.0%
-150,000
Delivered SF
vs. Prev. Qtr
vs. 12 Mths Ago
5.0%
-225,000
-
-
-
Quoted Rates
vs. Prev. Qtr
vs. 12 Mths Ago
$26.18
$25.63
$25.30
TOP LEASE TRANSACTIONS • KBS signed a 38.5K lease at Providence Towers, 5001 Spring Valley Road in Dallas. • Raymond L. Goodson Jr. Inc. renewed its 20K SF lease at Coit Central Tower 12001 North Central Expressway in Dallas. • Smith Seckman Reid leased 14K SF at Churchill Tower, 12400 Coit Road in Dallas.
DEALS IN THE MARKET • The Crossings I is being marketed for sale by JLL. Goddard Investments owns the 232,541 SF office building, which is 88% leased. Guidance pricing is $39.5M ($170/sf). • NCP I is being marketed for sale by CBRE. Hartman owns the 204K SF building, which is 79% leased. Guidance pricing is $14.25M ($70/sf). • Three Forest Plaza is currently being marketed for sale by Goodwin Advisors (Evan Stone). Hartman owns the 366,549 SF office building which is currently 75.5% leased. Guidance pricing is $36.5M ($100/sf).
0.0%
-300,000 Q3 20
Q4 20
Q1 21
Q2 21
ABSORPTION
Q3 21
Q4 21
Q1 22
Q2 22
Q3 22
Q4 22
Q1 23
DELIVERIES
Q2 23
Q3 23
VACANCY
NEW DEVELOPMENTS • Four Lincoln Centre – A 400K SF class A office building (proposed) • Park Tower at Dallas Midtown – A 377K SF class A office building (proposed) • The Inwood at Alpha West – A 330K SF class A office building (proposed) • Park Heritage – A 500K SF class A office building (proposed)
LARGE EXISTING VACANCIES • Four Lincoln Centre – 401,629 SF • 7171 Forest Lane – 180,000 SF • Park Central 8 – 173,744 SF • Lakeside Square – 112,749 SF • One Lincoln Centre – 96,262 SF • Northpoint Plaza II – 92,694 SF • Three Galleria Tower – 92,977 SF
The new owners of a North Dallas high-rise office campus have signed a major tenant for the buildings. California investor Stanton Road Capital last year purchased the two (2) Element office towers on LBJ Freeway. The 670K SF silver glass high-rises are home to companies including golf course operator ClubCorp, now known as Invited. Engineering firm Criado & Associates is moving its corporate headquarters to the property from Spring Valley Road in Farmers Branch. The firm is taking 16K SF of space. “Criado was looking for the right location to accommodate our office needs to include securing our fleet vehicles,” president Cristina Criado said in a statement. Investors who last year bought one of north Dallas’ largest office campuses are gearing up to overhaul the three (3) tower project. Along with the Galleria Towers and Lincoln Centre, the Towers at Park Central are one of the most prominent office addresses along the busy LBJ Freeway. Since November, the almost 875K SF office complex has been owned by Florida-based Morning Calm Management. After months of planning, Morning Calm is almost ready to kick off renovations of the buildings that date to the 1980s. “Over the years, a significant amount of money went into the buildings, with different ownership doing different things,” Morning Calm CEO Mukang Cho said. “What we are doing is really streamlining and making the buildings seem more harmonious. We are also going to enhance the amenities. “We are hopefully just a few short weeks away from swinging hammers.” The three (3) eight-story to 14-story office buildings on LBJ Freeway at Coit Road were only about 55% occupied when Morning Calm purchased the properties. Since then, the new owners have been working with the Dallas office of Newmark Group to bring new tenants to the buildings and prepare for the redo. The office towers and the adjoining 536-room Westin Hotel were one of the biggest property developments in Dallas when they were announced in 1980. The offices and hotel were a major addition to the surrounding Park Central mixed-use development, which was kicked off in the early 1970s by Dallas developer Trammell Crow working with Atlanta architect John Portman. The project — on the site of a former airport — had stalled for several years before development was restarted with investor Equitable Life Assurance. After changing hands several times over the years, Morning Calm bought the towers from a California investor who had previously spent $7.5M to reboot the buildings.
16 Q2 2023 DFW OFFICE MARKET REPORT
SUBMARKET INTELLIGENCE
MID-CITIES CURRENT EVENTS While questions remain about the state of office broadly, Mansfield has made efforts to create its own office market. It seems to be working – a mixed-use project called Heritage Park, featuring 60K SF of Class A office development will soon break ground in the city. Located along Heritage Parkway and Highway 287, the project should break ground by 2024. Heritage Park represents the latest mixed-use development in Mansfield, which has seen a wave of recent development activity including new office development. In addition to the office building, the development will feature an upscale 125-room Courtyard by Marriott hotel, 20K SF of retail, restaurant and medical office space as well as parks and civic areas. Heath-based master developer 1ONEFirm Inc. and hotel developer Tekmak Development are behind the project. The developers envision Heritage Park as a vibrant, walkable mixed-use district that will encompass office spaces, retail outlets, residential properties, hospitality options and entertainment venues. While the office market has flagged for some time now, the sheer number of projects heading to Mansfield helped convince 1ONEFirm’s executives to go through with the development. “It doesn’t take long for a man to look into the City of Mansfield and see all that’s coming here,” said Brian Berry, CEO and partner of 1ONEFirm. Previously, 1ONEFirm was predominantly active in Rockwall County, undertaking projects including the South Ridge Development in Heath, a city east of Dallas. The company initially became interested in Mansfield several years ago, when Berry was working alongside another group to do a development in the city. While that development fell through, Berry said he gained valuable insight into the city’s goals relating to industry growth and new development. Specifically, companies were interested in moving to Mansfield, but the city didn’t have any blocks of office available for them to lease. Berry heads up 1ONEFirm with Clay Spicer, COO and partner at 1ONEFirm. The pair are childhood friends who reconnected later in their careers to form the company. Berry previously worked in mechanical and dental construction, while Spicer had a career in the military and in commercial construction. 1ONEFirm found the property that will house Heritage Park and initially thought it was larger than what they needed. However, the company realized a hospitality element would add a positive dimension to the project and brought on Tekmak. The project will create an anticipated 250 jobs as well as bring an estimated $70M value in ad-valorem during the first phase. There are incentives tied to the project. While there is inherent risk in getting underway with new office development, Berry said the amount of new development heading to Mansfield helps offset it. Additionally, there are companies looking to set up offices in the city who have previously had to look elsewhere because of the lack of available space. The firm will aim to create a product tailored to companies seeking floorplates of around 10K SF to 20K SF. That square footage may appeal to those in slightly larger spaces looking to downsize, Berry said. Mansfield has seen a spate of new development recently, including a $60M mixed-use development located south of the Julian apartment development near Toll Road 360. The project will feature multi-family residential, rowhouse, neighborhood-oriented commercial and civic space. Dubbed the Campbell Development, the site aims to create a mixeduse destination that is focused on distinct architecture and complimentary amenities. The city will also soon get a new entertainment venue. High Five Entertainment has proposed a 45K SF venue that would include bowling, laser tag, arcades, bars, restaurants and other family entertainment across a two-story campus within Mansfield. Some of that “other family entertainment” may include axe throwing and escape rooms, according to city documents. Earlier this year, Admiral Legacy Investments unveiled a 240K SF office development called The Mansfield Innovation Community, or The MIC, which will serve as the epicenter of the Mansfield Innovation Corridor. The city is investing heavily in the deal, intent on fostering significant industry growth in the community.
VITAL STATS
Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
(44,422)
(184,346)
(347,730)
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
15.3%
14.7%
14.2%
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
242,953
445,552
446,952
6.0%
Delivered SF
vs. Prev. Qtr
vs. 12 Mths Ago
4.0%
274,741
131,497
43,226
Quoted Rates
vs. Prev. Qtr
vs. 12 Mths Ago
$26.35
$26.29
$26.01
TOP LEASE TRANSACTIONS • RobotLAB, Inc has signed a 26,537 SF lease at 1900 W Kirkwood Boulevard in Southlake. • An undisclosed tenant has signed a 15,767 SF lease at 524 E Lamar Boulevard in Arlington. • HEB has signed a 3,958 SF lease at 700 Hunters Row Court in Mansfield.
DEALS IN THE MARKET • 1521 N Cooper Street is being marketed for sale by Younger Partners. Silver Star Properties REIT, Inc. owns the 119,075 SF class A office building. • 1600 E Pioneer Parkway is being marketed for sale by TJ Dream Makers. Credence Resource Management owns the 81,997 SF class B office building. • 3301 Airport Freeway is being marketed for sale by Avision Young. Skywalker Property Partners, Inc. owns the 69,566 SF class B office building.
18.0%
800,000
16.0%
600,000
14.0% 12.0%
400,000
10.0%
200,000
8.0%
0 -200,000
2.0% 0.0%
-400,000 Q3 20
Q4 20
Q1 21
Q2 21
ABSORPTION
Q3 21
Q4 21
Q1 22
Q2 22
Q3 22
Q4 22
DELIVERIES
Q1 23
Q2 23
Q3 23
VACANCY
NEW DEVELOPMENTS • 2710 E Lamar Boulevard – A 61,500 SF class A office building • 64 Tarragona Drive – A 21,419 SF class A office building • 6500 Colleyville Boulevard – A 12K SF class B office building • 880 Village Center Drive – A 8,050 SF class B office building
LARGE EXISTING VACANCIES • 1401 Nolan Ryan Expressway – 131,337 SF class B vacancy • 1900 W Kirkwood Boulevard – 129,103 SF class A vacancy • 1500 Solana Boulevard – 124,735 SF class A vacancy • 3120 Sabre Drive – 104,580 SF class A vacancy • 5000 S Bowen Road – 87,284 SF class B vacancy
SUBMARKET INTELLIGENCE
Q3 2023 DFW OFFICE MARKET REPORT 17
NORTH FORT WORTH CURRENT EVENTS
VITAL STATS
Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
1,365
(73,944)
(10,348)
12.0%
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
10.0%
11.1%
11.2%
11.1%
8.0%
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
6.0%
363,880
320,500
305,343
Delivered SF
vs. Prev. Qtr
vs. 12 Mths Ago
-
-
64,369
Quoted Rates
vs. Prev. Qtr
vs. 12 Mths Ago
$24.37
$24.69
$24.78
TOP LEASE TRANSACTIONS • An undisclosed tenant has signed a 5,086 SF lease at 7520-7640 NE Loop 820 in North Richland Hills. • Renew Balance and Wellness has signed a 1,180 SF lease at 5332-5344 N Tarrant Parkway in Fort Worth. • Advocate Wellness has signed a 1,025 SF lease at 5332-5344 N Tarrant Parkway in Fort Worth.
DEALS IN THE MARKET • 7001 Boulevard 26 is being marketed for sale by Marcus & Millichap. Cowan Company Inc owns the 101,396 SF class B office building currently at 49% leased. • 3400 NW Centre Drive is being marketed for sale by CBRE. Texas Development LLC owns the 35,849 SF class B office building that is currently 100% leased. • 10708 Victoria Ash Drive is being marketed for sale by SRS National Net Lease Group. FK Capital Partners, LLC owns the 11,200 SF class B office building that is currently 100% leased.
150,000
100,000
50,000
0 4.0% -50,000
2.0% 0.0%
-100,000 Q3 20
Q4 20
Q1 21
Q2 21
ABSORPTION
Q3 21
Q4 21
Q1 22
Q2 22
Q3 22
Q4 22
DELIVERIES
Q1 23
Q2 23
Q3 23
VACANCY
NEW DEVELOPMENTS • Golden Triangle & Alta Vista RD – A 57K SF class B office building • Alta Vista Road & N Beach Street – A 48K SF class A medical office building • TBD I-114 – A 45K SF class B office building • 516 W Bonds Ranch Road – A 15K SF class C medical office building • 1901 Heritage Trace Parkway – A 13,380 SF class B office building
LARGE EXISTING VACANCIES • 5555 N Beach Street – 163,283 SF class B vacancy • 4600 Alliance Gateway Freeway – 140K SF class B vacancy • 9810 Hillwood Parkway – 135K SF class A vacancy • 4700 Alliance Gateway Freeway – 47,644 SF class B vacancy • 13601 Heritage Parkway – 26,059 SF class A vacancy
A proposed $120M development is in the planning stages for Panther Island, the first large-scale project for the area north of downtown since the federal government announced funding for the flood control portion in the area in 2022. The development, called Vaquero Panther Island, would bring more than 500K SF of office and retail space to a 12-acre site at 529 N Throckmorton Street. The site is along the north bank of the Trinity River, on the west side of Houston Street and below Northwest Fifth Street, according to plans filed with the city of Fort Worth. The development would be near Encore Panther Island, the apartment complex that opened in 2022. The project will receive plenty of scrutiny as real estate firms, the city and Panther Island leaders determine how best to proceed with development on the area as construction begins on the bypass channels. “Taking that first step is always the most important step,” said Carlos Flores, City Council representative for District 2, which includes much of Panther Island. “Developers need to know essentially where to dig as utility relocation would be a very important consideration in those cases,” Flores said. He expects more proposals for the area to start coming in now that federal funding is assured and consultants have provided a development blueprint. “Because of our consultants’ work on Panther Island, HR&A Advisors, they’ve offered more clarity in the form-based codes as to what kind of development is desirable for the area,” he said. The Vaquero Panther Island proposal would see three or four buildings consisting of mixed-use office space with retail on the ground floors of the five-story buildings. The developers filed two possible renderings for the project, one with 461K SF of office space and 51K SF of retail space and a second version with 361K SF of office space and 37K SF of retail. A possible second phase of the project could bring a 150-room hotel and 31K SF of retail to the project. The plans come from Fort Worth’s Tillar Partners, a real estate development firm, and BOKA Powell, an architecture, interior design and planning firm. Tillar Partners includes co-founders W.A. Landreth, Brian Williams and Sarah LanCarte. The developers are set to meet with city staff in October in a pre-development conference on the project. In August, consulting firm HR&A Advisors published an updated, long-term blueprint for the Panther Island partners, primarily the city of Fort Worth and the Tarrant Regional Water District, to follow in the development of the area.
18 Q2 2023 DFW OFFICE MARKET REPORT
SUBMARKET INTELLIGENCE
PRESTON CENTER CURRENT EVENTS One of North Texas’ best-known commercial property firms has relocated its headquarters to North Dallas. Lincoln Property Co. has been in the business since the 1960s, building everything from downtown office towers to suburban apartments. Its new head office will be in its newest development in North Dallas’ Preston Center. “Lincoln has deep roots in Dallas, with our origins beginning here nearly 60 years ago,” co-CEO Clay Duvall said in a statement. “The city is quickly becoming the epicenter of the U.S. economy due to its strong business environment and cost of living, and we’re proud to continue to build on Lincoln’s deep legacy in Dallas for years to come.” The legacy real estate firm has had its headquarters in Dallas’ Uptown district since 2007. Its new digs are at 8111 Douglas Avenue.
VITAL STATS
Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
144,001
32,486
62,021
14.0%
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
12.0% 10.0%
10.4%
12.3%
8.3%
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
10,434
10,434
334,294
Delivered SF
vs. Prev. Qtr
vs. 12 Mths Ago
-
318,632
-
Quoted Rates
vs. Prev. Qtr
vs. 12 Mths Ago
$44.01
$44.03
$40.97
TOP LEASE TRANSACTIONS • Northwestern Mutual signed an 11K SF lease at The Berkshire, located at 5950 Berkshire Lane in Dallas.
HLC DEAL
• PetroCap signed a 6.6K SF lease at The Berkshire, located at 5950 Berkshire Lane in Dallas.
HLC DEAL
• Offices of Jay McGraw signed a new 3.9K SF lease at 8111 Douglas Avenue, in Dallas. • Interlock renewed its 2.1K SF lease at 5950 Sherry Lane in Dallas. • JLT Beverage renewed its 2.1K SF lease at 5950 Sherry Lane in Dallas.
350,000 300,000 250,000 200,000
8.0%
150,000
6.0%
100,000 50,000
4.0%
0 2.0%
-50,000
0.0%
-100,000 Q3 20
Q4 20
Q1 21
Q2 21
ABSORPTION
Q3 21
Q4 21
Q1 22
Q2 22
Q3 22
DELIVERIES
Q4 22
Q1 23
Q2 23
Q3 23
VACANCY
LARGE EXISTING VACANCIES • 8333 Douglas Avenue – 35,031 SF • 5950 Sherry Lane – 27,948 SF • 8111 Douglas Avenue – 27,619 SF • 5960 Berkshire Lane – 24,873 SF • 8343 Douglas Avenue – 21,752 SF
SUBMARKET INTELLIGENCE
Q3 2023 DFW OFFICE MARKET REPORT 19
RICHARDSON/PLANO/ALLEN/MCKINNEY CURRENT EVENTS
Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
292,041
(187,183)
472,329
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
15.2%
16.0%
14.8%
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
40,940
40,940
299,517
Delivered SF
vs. Prev. Qtr
vs. 12 Mths Ago
-
188,166
48,200
Quoted Rates
vs. Prev. Qtr
vs. 12 Mths Ago
$24.17
$24.42
$23.72
TOP LEASE TRANSACTIONS • ACIG Insurance Co. extended its lease to 26.7K SF at Tower 2600, 2600 North Central Expressway in Richardson. • Countryplace Mortgage leased 15.7K SF at Legacy Tennyson Center I, 5100 Tennyson Parkway in Plano.
VITAL STATS 20.0%
600,000
18.0% 16.0%
400,000
14.0% 12.0%
200,000
10.0% 8.0%
0
6.0% 4.0%
-200,000
2.0% 0.0%
-400,000 Q3 20
Q4 20
Q1 21
Q2 21
ABSORPTION
Q3 21
Q4 21
Q1 22
Q2 22
Q3 22
Q4 22
Q1 23
DELIVERIES
Q2 23
Q3 23
VACANCY
• The Exchange at Cityline | A 300K SF class A office building (proposed) • Granite 190 Center | A 210K SF class A office building (proposed) • 7 Cityline | A 416K SF class A office building (proposed) • CityLine | A 2M SF class A office building (proposed)
DEALS IN THE MARKET • State Farm’s CityLine office campus is being marketed for sale by Newmark. Mirae Asset Management & TIG own the approximately 2.1M SF campus, which is 100% leased.
LARGE EXISTING VACANCIES • Lookout Park I – 262,546 SF • Galatyn Commons C – 215,394 SF • Lakeside Tower – 203,817 SF
• Collins Crossing is being marketed for sale by Newmark. Franklin Street Properties owns the 300,887 SF building, which is 88% leased. Guidance pricing is $50.0M ($166/sf).
• 2400 Glenville – 192,512 SF
•
• Richardson Commons – 155,984 SF
Creekview Corporate I & II is being marketed for sale by JLL. Exeter owns the 260,488 SF office buildings, which are 58% leased. Guidance pricing is $26.0M ($100/sf).
NEW DEVELOPMENTS • Heritage Creekside Towers – A 1.25M 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 534K 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 Heritage Creekside – A 250K SF class A office building (proposed)
• Assembly Park – 179,766 SF • 2200 E President George Bush – 176,831 SF • 17787 Waterview Parkway – 142,954 SF • Galatyn Commons D – 133,184 SF • Waterview 190 South – 116,038 SF • Waterview 190 North – 115,987 SF • Lakeside Centre II – 115,583 SF • Lookout Park II – 106,327 SF • Legacy Central 1 – 103,759 SF • The Tower Lakeside Campus – 103,686 SF • Creekview 1 – 100,871 SF
JCPenney has moved back into its former headquarters in Plano and the permanent sign at the Legacy Drive entrance says JCPenney again. The retailer was one of the first companies to identify Plano as a corporate headquarters city when it decided to leave New York in 1987. It built the sprawling campus at 6501 Legacy Drive and moved in in 1992. Until the pandemic and the retailer’s bankruptcy filing in 2020, JCPenney had occupied the building for 28 years and the return this month is more than symbolic. JCPenney was able to reject the lease as part of its court-led reorganization while the corporate headquarters staff went fully remote during the pandemic. Asked about how the move back helps JCPenney with its employee retention and hiring, Andre Joyner, chief human resources officer said employees have a dedicated space for “teaming, collaboration and connection.” A permanent office space conveys stability to current employees and future hires that the organization has made a commitment to them, said Jim DePaul, executive vice president of stores at JCPenney. JCPenney operates 650 stores and has been privately held since late 2020 when its two largest mall landlords purchased the retailer out of bankruptcy. A sprawling adaptive reuse project in the North Texas city of Plano that will transform a 200-acre former tech campus into a multi-use, life sciences-centered district with 4M SF of labs, has taken key steps forward in recent weeks, earning approval from a local planning and zoning commission in mid-July and announcing a new name, the Texas Research Quarter. The ambitious project, led by Dallasbased NexPoint Advisors, aims to bolster the growth of life sciences and lab development in Texas during a time of uncertainty in the market and questions about the pace of expansion in secondary markets like Houston. NexPoint purchased the 91-acre Electronic Data Systems campus for $125M in 2018 and has steadily added adjacent parcels as part of its redevelopment efforts. Plans for the Texas Research Quarter include residential space, a research hospital, biomanufacturing capacity and office space. It also would incorporate 109 acres of the adjacent Legacy Business Park, a 3,000-acre development and significant regional employment center. NexPoint believes the Texas Research Quarter could function as a centralizing, convening project and catapult the Dallas region into a more prominent position in life sciences. A financial technology firm has relocated its North American headquarters from California to Plano. QuickFee is a 14-year-old company with operations in the U.S. and Australia. The company has been operating in the U.S. since 2016 and previously was based in Los Angeles.QuickFee has relocated its North American head office to the Parkwood Place building at 5601 Democracy Drive in Plano. The fast-growing financial technology firm provides business-tobusiness accounts receivable services to more than 319,000 U.S. customers.
20 Q2 2023 DFW OFFICE MARKET REPORT
SUBMARKET INTELLIGENCE
SOUTHWEST FORT WORTH CURRENT EVENTS PNC Bank announces a lease for Class-A office space at the new mixed-use development, The Crescent Fort Worth. Members of PNC’s corporate, commercial and private bank teams will relocate to the new space in early 2024. “PNC Bank continues to grow our business and the number of employees in both Dallas and Fort Worth,” said Dale Klose, PNC territory executive for the southwest and mountain region. “We recently increased our office space in The Crescent Dallas and now we are growing our footprint in the heart of Fort Worth.” The new development in Fort Worth’s Cultural District at 3230 Camp Bowie Boulevard is west of downtown, near the Will Rogers Coliseum, and across the street from the Kimbell Art Museum and the Modern Art Museum. The office was designed with clients and collaboration in mind. The design team combined a mix of traditional offices and conference rooms with modern high-tech workspaces. “This new office space reflects the creative energy from the surrounding area,” added Brendan McGuire, PNC regional president for North Texas. “PNC has long recognized the power of arts and culture and the positive role it plays in a community. Relocating to The Crescent Fort Worth will help us tap into the vibrancy of Fort Worth’s Cultural District and inspire an exciting work environment for our teams.” In addition to Corporate and institutional Banking and Asset Management, PNC has an extensive retail branch network across North Texas. “We have created a vibrant mixed-use development and having a highquality national bank like PNC whose local leadership team is focused on North Texas is the right fit for this space,” said John Goff, chairman of Crescent Real Estate.
VITAL STATS
Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
(18,911)
(40,845)
283,663
12.0%
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
10.0%
8.7%
8.2%
7.9%
8.0%
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
6.0%
266,449
367,519
379,855
Delivered SF
vs. Prev. Qtr
vs. 12 Mths Ago
101,070
12,500
-
Quoted Rates
vs. Prev. Qtr
vs. 12 Mths Ago
$26.77
$26.47
$25.97
TOP LEASE TRANSACTIONS • Simmons Bank signed a lease for 26,982 SF at 4100 International Plaza in Fort Worth. • An undisclosed tenant signed a lease for 24,699 SF at 3230 Camp Bowie Boulevard in Fort Worth. • PNC Bank signed a lease for 15K SF at 3230 Camp Bowie Boulevard in Fort Worth.
DEALS IN THE MARKET • 315 Hemphill Street is being marketed for sale by Transwestern Real Estate Services. Half Price Book Barn owns the 30K SF class C office building that is currently 100% leased. • 500-508 Hemphill Street is being marketed for sale by Transwestern Real Estate Services. ONCOR Electric Delivery CO LLC owns the 30K SF class C office building that is currently 100% leased. • 6451 Brentwood Stair Road is being marketed for sale by Transwestern Real Estate Services. TSC South Main LLC owns the 25,451 SF class C office building that is currently 29.4% leased. • 133 Nursery Lane is being marketed for sale by LanCarte Commercial Real Estate. Fort Capital owns the 20,260 SF class B office building.
350,000 300,000 250,000 200,000 150,000 100,000 50,000 0
4.0%
-50,000 -100,000
2.0%
-150,000 -200,000
0.0%
-250,000 Q3 20
Q4 20
Q1 21
Q2 21
ABSORPTION
Q3 21
Q4 21
Q1 22
Q2 22
Q3 22
Q4 22
DELIVERIES
Q1 23
Q2 23
Q3 23
VACANCY
NEW DEVELOPMENTS • 2400 N Kentucky Avenue – A 20K SF class B office building • 6101 Southwest Boulevard – A 15K SF class B office Building • 7040 Harris Parkway – A 8K SF class B office building • 465 S Main Street – A 13,449 SF class B office building
LARGE EXISTING VACANCIES • 6100 Western Place – 104,319 SF class B vacancy • 6500 West Freeway – 45,968 SF class A vacancy • 7000 Calmont Avenue – 35,593 SF class A vacancy • 4717 Fletcher Avenue – 35,000 SF class B vacancy • 1320 S University Drive – 28,062 SF class A vacancy
SUBMARKET INTELLIGENCE
Q3 2023 DFW OFFICE MARKET REPORT 21
STEMMONS CURRENT EVENTS
Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
347,354
122
2,834
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
17.2%
18.6%
20.1%
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
272,743
422,743
292,743
Delivered SF
vs. Prev. Qtr
vs. 12 Mths Ago
150,000
-
-
Quoted Rates
vs. Prev. Qtr
vs. 12 Mths Ago
$25.91
$25.73
$23.26
TOP LEASE TRANSACTIONS • Moroch Partners signed a new 23K SF lease at the Manufacturing District in Dallas. • 84 Lumber signed a new 4.9K SF lease at the Manufacturing District in Dallas.
VITAL STATS 400,000
24.0%
300,000 22.0%
200,000 100,000
20.0% 0 -100,000
18.0%
-200,000 16.0%
-300,000 Q3 20
Q4 20
Q1 21
Q2 21
ABSORPTION
Q3 21
Q4 21
Q1 22
Q2 22
Q3 22
Q4 22
DELIVERIES
Q1 23
Q2 23
Q3 23
VACANCY
LARGE EXISTING VACANCIES • The Connection at 8600 | 8600 Harry Hines Boulevard – 228,845 SF • The Design District Tower – 224,907 SF • River Edge – 146,955 SF • Pegasus Park – 133,477 SF • 2525 N Stemmons Freeway – 101,178 SF
NEW DEVELOPMENTS • The Design District Tower – A 243K SF class A office building (proposed) • River Edge | 155 Riveredge – A 142K SF class A building • 1333 Oak Lawn Avenue – A 123K SF class A office building • 111 Glass Street – A 30K SF class A office building • 2122 W Mockingbird Lane – A 158K SF class A office building • 1400 W Mockingbird Lane – A 66K SF class A Medical office building • West Love | 2345 Mockingbird Lane – A 158K SF class A office building
• 8777 N Stemmons | Tower II – 76,968 SF
An international investor has purchased one of the largest towers in Dallas’ Design District. The 23-story Amli Design District apartment tower at 1400 Hi Line Drive was built in 2013 and includes 314 luxury rental units overlooking Stemmons Freeway. The highrise near Victory Park has been owned by Chicago-based Amli Residential since 2016. The tower was purchased by a partnership organized by international real estate investor Hasta Capital. With offices in Mexico and Florida, Hasta Capital develops, manages and invests in apartment properties in the U.S. and Latin America, including in Florida, Maryland, Virginia, Colombia and Mexico. An Oak Lawn-based marketing firm is making the move to Dallas’ Design District. Moroch Partners is leasing a headquarters space in the Manufacturing District development located near Irving Boulevard. The 23,365 SF office lease is one of the largest spaces in the complex of redeveloped commercial buildings near the Trinity River levee. The office and retail property at 147 Manufacturing Street is a development of Quadrant Investment Properties. Moroch Partners is relocating from a highrise on Hall Street near Oak Lawn Avenue. “Moroch’s selection of the Manufacturing District for their long-term headquarters home is a big validation for us,” Quadrant Properties’ Chad Cook said in a statement. “When we were initially designing this project, it was with companies exactly like Moroch in mind.”The company will move next year.Other tenants in the Manufacturing District include Alto, Smart Business Concepts, Kirksey and 84 Lumber. The project is 80% leased.
22 Q2 2023 DFW OFFICE MARKET REPORT
SUBMARKET INTELLIGENCE
UPTOWN CURRENT EVENTS Developers have topped out construction on an Uptown Dallas tower. The 12-story office high-rise is going up in the former Quadrangle complex near McKinney Avenue. The 335K SF office building is part of the $100M redevelopment of the landmark shopping center built in the 1960s. Dallas-based Stream Realty Partners is building the project that includes new retail space along with the office. The development has been rebranded as The Quad. Designed by Dallas architect Omniplan, the office building will include The Quad Club on the top floor, an amenity center with tenant lounge, conference center and terrace overlooking downtown Dallas and Uptown. Austin Commercial is the general contractor for the building, which is scheduled to open in March. An Uptown Dallas office building has gotten a reboot with $8 million in upgrades. The building at 2501 Cedar Springs is just blocks from The Crescent and is owned by Mexico-based real estate firm Grupo Haddad. The 110K SF building was constructed in 1982 near Turtle Creek and was previously home to pipeline firm EnLink Midstream. Grupo Haddad purchased the building in 2013. More than a year after disclosing plans for the project, New York-based Goldman Sachs Group and Dallas’ Hunt Realty are finally ready to break ground on the financial firm’s new campus north of downtown. In June of last year, Dallas’ city council voted to provide more than $18 million in economic incentives to support development of the $500M office center to be constructed on Field Street next to Victory Park. Since then, the financial services giant and developers have been working to prepare for the project, which will be built on the site of apartments that were cleared to make way for the North End development. Dallas developer Hillwood is part of the team building the project. The office buildings for Goldman Sachs will be the first phase of an 11acre high-rise mixed-use development Hunt Realty is building next to the Perot Museum. The North End project will also include additional offices, residential and hotel towers and retail space built around a 1.5-acre park. An Oregon-based financial services firm is the latest tenant to land in a new Uptown Dallas office project. Portland-based M Financial Group is taking 52K SF of space in the Quad office building under construction near McKinney Avenue. The high-rise is part of the $100 million redevelopment of the Quadrangle shopping center built in the 1960s. New tenant M Financial services a network of more than 130 independent financial firms located around the country. “Our expansion into Dallas gives us a more centralized location to better serve our wide-ranging community of member firms and their clients,” M Financial Russell Bundschuh said in a statement. “The Quad presents us with the best of both worlds — a location in Uptown Dallas surrounded by a flourishing financial services sector and all the benefits that it provides, as well as access to world-class amenities favored by our current and prospective employees and visiting guests.” M Financial has been based in Portland since 1978. The new Dallas office will be the company’s first out-of-state office expansion.
Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
186,507
(62,125)
150,805
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
18.4%
17.7%
17.8%
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
1,939,163
1,757,437
1,757,437
Delivered SF
vs. Prev. Qtr
vs. 12 Mths Ago
359,914
-
-
Quoted Rates
vs. Prev. Qtr
vs. 12 Mths Ago
$49.64
$47.96
$46.89
TOP LEASE TRANSACTIONS • Calyx renewed its 21K SF lease at Parkside Tower, 3500 Maple Avenue in Dallas. • Brunswick Group signed a 15K SF lease at 3811 Turtle Creek in Dallas. • Frontier Management expanded its 7K SF lease at Parkside Tower, 3500 Maple Ave in Dallas. • Stone X Group renewed its 2K SF lease at Rosewood Court, 2101 Cedar Springs Rd in Dallas.
NEW DEVELOPMENTS • 23Springs | 2323 Cedar Springs – A 626K SF class A office building • 2500 Cedar Springs – A 591 K SF class A office building (proposed) • Harwood XII – A 541K SF class A office building (proposed) • Parkside Uptown | 1919 Woodall Rodgers Freeway – A 487K 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 class A office building • 4040 Maple Avenue – A 285K SF class A building • 2850 Lemmon – A 280K SF class A office building • 2626 McKinney Avenue – A 181K SF class A office building • Maple Terrace | 3001 Maple Avenue – a 137K SF class A office building • McKinney & Lemmon – A 82K SF office building (proposed) • Goldman Sachs | 2323 N Field Street – a 702K SF class A office building
VITAL STATS 20.0%
750,000
18.0%
625,000
16.0%
500,000
14.0%
375,000
12.0%
250,000
10.0%
125,000
8.0%
0
6.0%
-125,000
4.0%
-250,000
2.0% 0.0%
-375,000 Q3 20
Q4 20
Q1 21
Q2 21
ABSORPTION
Q3 21
Q4 21
Q1 22
Q2 22
Q3 22
Q4 22
Q1 23
DELIVERIES
Q2 23
Q3 23
VACANCY
LARGE EXISTING VACANCIES • Victory Commons One – 298,943 SF • One West Village – 240K SF SF • One Victory Park – 169,753 SF • 2501 Cedar Springs – 110,433 SF • Parkside Tower – 73,330 SF
DALLAS 5950 Berkshire Lane, Suite 900 Dallas, Texas 75225 T 972.241.8300 | F 972.241.7955
FORT WORTH 1200 Summit Avenue, Suite 300 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