|
Market News and Trends
Dallas MSA’s Ranks High
Of 366 metropolitan areas nationwide, Houston ranked 4th, Dallas 10th and Austin 12th in POLICOM Corporation’s annual economic strength survey. Seattle has the strongest economy in the US according to the survey. The top-rated areas have had rapid, consistent growth in both size and quality for an extended period of time and represent the areas which have the best economic foundations. While most communities have slowed or declined during this recession, the strongest areas have been able to weather the storm. POLICOM specializes in analyzing local and state economies nationwide.
Two Addison Circle
There has been significant investor interest in the recently constructed, empty, 198,000 SF Two Addison Circle office building on the North Dallas Tollway. Up to 25 purchase offers are expected by the seller. Expectations are that, the sales price will be bid up to a surprising level for a vacant Dallas building. The rumored number is $70 to $80 per SF.
Lenders Now More Flexible
Several office building owners are indicating that their lenders are growing more flexible with loan renegotiates. Many do not want to foreclose if the building owner has a viable operating plan. The banks learned earlier in this cycle that they do not have the manpower and systems to handle the workload from owning numerous foreclosed buildings.
Big Deal List Keeps Growing:
The 120,000 RSF new lease with Fannie Mae at Addison Circle One is the most recent example of a large lease eliminating a high quality space option.
CAPSTAR Commercial’s Big Deal List continues to grow. There are a good number of new deals in the market. As new large blocks of vacant space in the preferred buildings are beginning to lease, some tenants and brokers are going to be surprised that the space is no longer available. Tenants will then have to settle for older buildings in the secondary locations or go to a Build-to-Suit.
|
Leases
• Goodman Networks, represented by Jones Lang LaSalle, signed a renewal and expansion for 45,600 SF at 6400 International Parkway in the Far North Dallas Submarket. The 65-month lease was $17.10 +E effective with $5.00 in TI and 5 months free rent.
• The Promotion Network, represented by Cushman and Wakefield, signed a renewal for 38,552 SF at 9400 NCX along the North Central Expressway. The 64-month renewal was $15.00 +E with $7.00 in TI and 4 months free rent.
• Bridgefarmer & Associates, represented by Swearingen, signed a renewal for 19,527 SF at 12801 NCX along the North Central Expressway. The economics for the 78-month renewal were $13.95 +E with $13.50 in TI. No free rent was given.
• DHS, represented by Cresa Partners, signed a 8,490 SF renewal at Liberty Plaza in the Quorum / Bent Tree area of Far North Dallas. The 56-month renewal was for $17.65 +E effective, “as-is” and 4 months free rent.
• Fishman Jackson Luebker, PLLCsigned an 8,019 SF new lease at Three Galleria Tower at LBJ Freeway and the Tollway. The economics of the new deal were $22.00 +E with $8.00 in TI and 8 months free rent.
• Resources Global, represented by Jones Lang LaSalle, singed a 7,174 SF new deal at Colonnade in Far North Dallas. The 72-month lease was for $21.00 +E with $25.00 in TI and 12 months free rent.
• QVL Pharmacy, represented by Stream, signed a 7,144 SF expansion and extension at The Centre in the LBJ Freeway Submarket. The economics of the 90-month deal were $16.50 F/S. The expansion space was given $20.00 in TI and 9 months free rent.
• James R. Thompson, represented by Jones Lang LaSalle, signed a 6,134 SF new deal at 2626 Cole in Uptown. The 67-month deal was for $20.60 +E with $25.00 in TI and 7 months free rent.
• Suntex Ventures, represented by GVA Cawley, signed a 4,023 SF renewal and expansion at Preston Trail in Far North Dallas. The 36-month deal was for $16.50 F/S, turnkey and no free rent was given.
| • Viamedia, Inc. signed a 2,823 SF renewal at Hall Office Park in Far North Dallas. The economics of the 43-month deal were $20.30 +E effective, “as-is” and no free rent was given.
Deals in Play
• Monolithic, represented by Andy Leatherman with Jones Lang LaSalle, is in the market for 375,000 SF of office space. This prospect is currently considering all Dallas Markets.
• Project Wire, represented by Brooke Armstrong with Jones Lang LaSalle, is in the market for 55,000 SF of office space in either the Central Business District or Uptown Submarkets.
• The Tribune, represented by Cushman & Wakefield, is in the market for 40,000 SF of office space. This prospect is currently considering all Dallas Markets.
• Andy Kampen with Banner Commercial is representing an Undisclosed Firm in the market for 35,000 SF of office space along the Tollway in Far North Dallas.
• Project Trust, represented by Cresa Partners, is in the market for 25,000 SF of office space in Far North Dallas along the Tollway north of Highway 190.
• Wynn-Crosby Energy, represented by Dan Spika with Henry S. Miller, is in the market for 21,000 SF of office space in the Quorum / Bent Tree area of Far North Dallas.
• Milestone Management, represented by Jeff Schweitzer with Stream, is in the market for 20,000 SF of office space along the Tollway or LBJ Freeway.
• Prism Hotels, represented by Rob Jones with CB Richard Ellis, is in the market for 12,000 SF of office space along the Tollway in Far North Dallas.
• Dallas Productions, represented by Lee Wagner with Grubb & Ellis, is in the market for 22,000 SF of office space in either Preston Center or along the North Central Expressway.
• Med Trials, represented by Craig Wilson with Cushman & Wakefield, is in the market for 10,000 SF of office space. This prospect is currently considering all Dallas Markets.
|
