|
Market News and Trends
According to Forbes magazine, Texas cities rank highest in a list of best places for jobs. 9 of the top 20 cities on Forbes' list were in Texas with DFW ranking number 5. Even though Dallas ranked high in the survey it still reported a job loss of 0.1% since 2007.
Office leasing activity began to surface in select Dallas submarkets during April. The consensus among most brokerage and architectual firms is that tenants are begining to re-enter the market and that leasing activity is beginning to increase as compared to the last 6 months.
The North Texas Tollway Authority System Projects and Operations Committee issued a statement indicating that the segment of Highway 121 from Hillcrest Road to Hardin Boulevard (approximately 6.88 miles) will be opening ahead of its scheduled January 2010 date. Once completed, nearly 23 of the 26 mile corridor will be open to traffic.
The Investment Sales and Debt Activity is "non-existent" according to local law firms. Many lead attorneys report they are now spending 90% of their time with tenant leases, subleases or tenant defaults.
According to Cushman & Wakefield, almost 4.3 million SF of office space is available for sublease; 2 million SF of that is empty. According to the report, rental rates for sublease space are typically 50-60% lower than direct office vacancy. Although the amount of sublease space has increased slightly above normal sublease levels of 3 million SF, it is much smaller than the sublease space available in 2002 (10 million SF).
Leases
• American Home Mortgage signed a 90-month, 182,000 SF new lease at Point West I in Las Colinas. The tenant will pay $20.15 +E effective and receive $35.00/SF in TI with 6 months free rent. Additionally, the Landlord absorbed some temporary occupancy expenses for AHM in another building to assist with the overall economics.
• PepsiCo signed a 60-month lease at the Campus at Legacy in Far North Dallas for $19.00 +E. The 80,000 SF new deal received $25.00/SF in TI and a parking ratio of 6/1000.
• Williams Financial, represented by Cresa Partners, signed a new lease for 30,300 SF at Cityplace on North Central Expressway for 10 years. Economics were $19.30 +E effective, $35.00/SF in TI and $217,000 in rent credit. |
• MillerCoors signed a 25,271 SF, 62-month lease at 3000 Internet in Hall Office Park in Far North Dallas. The tenant will pay $21.25 +E effective and receive $7.50/SF in TI with 2 months free rent.
• Viverae, Inc., a health management software company, signed an 87-month new lease at Search Plaza in the North Central Expressway submarket for $17.50 +E effective. The 22,529 SF lease had $14.00/SF in TI, 3 months of free rent and top of building signage.
• Rheumatology Associates signed a 22,300 SF lease at Walnut Glen Tower in the North Central Expressway submarket. Economics for the 10-year deal were $22.50 +E effective, $36.00/SF in TI and 4 months free rent.
• WiPro Limited signed a 7,154 SF renewal at Millennium Tower in Far North Dallas. The 48-month deal was $25.00 +E effective with $7.50/SF in TI and no free rent.
• Wischmeyer Benefits signed a 6,406 SF lease at the Crossings II in Far North Dallas. The 66-month deal was $14.03 +E effective with $23.00/SF in TI and 6 months of free rent.
• Intel renewed 5,817 SF of office space at 5000 Quorum in Far North Dallas. Economics for the 36-month lease were $17.00 +E with no TI and 6.5 months of free rent.
• HR Advance signed a 4,032 SF expansion at Quorum North in Far North Dallas. The effective rental rate for the 31-month lease was $16.19 +E with $1,600 in TI and no free rent.
• iSight, represented by Josh White with Jones Lang LaSalle, signed a 3,789 SF renewal at 8333 Douglas in Preston Center. The effective rental rate for the 12-month lease was $29.00 +E with no TI and no free rent.
Deals in Play
• Al Paniagua with Swearingen is in the market with Monotronics for 100,000 SF in Lewisville.
• Project Hawkeye (AMN Healthcare Inc.), represented by Jeff Ellerman and William Callahan with CB Richard Ellis, is in the market for 170,000-190,000 SF in Las Colinas.
• Rob Morris with Cushman & Wakefield is in the market with an Undisclosed Company for 200,000 SF of datacenter space.
• Pizza Hut/YUM is back in the market for 180,000 SF. They need to terminate their lease by the end of 2009 to make their relocation financially viable.
• Project Trinity (Tektronix) is narrowing their options to 5 buildings with the desire to select a building by the end of June. Mike Wyatt with Cushman & Wakefield is the broker. |
• Home Vestors, currently located at Search Plaza along North Central Expressway, is in the market for 50,000 SF. The tenant is represented by Steve Thelen with Jones Lang LaSalle.
• William Callahan with CB Richard Ellis is in the Las Colinas market with National Bankruptcy Services for 50,000 SF of office space.
• Rob Kingsbury with Jones Lang LaSalle is in the market with an Undisclosed Company for 50,000 SF of call center space.
• Bruce Hecht with Swearingen is in the market with an Undisclosed Company looking for 45,000 SF in Far North Dallas.
• IEX Corp, represented by Mary Stoner with Colliers, is active in Richardson for 40,000 SF of office space.
• Keiwet Construction, represented by Josh White with Jones Lang LaSalle, is looking for 40,000 SF of office space in Las Colinas. They are focusing on "plug and play" sublease space at 7651 Esters with an effective rent of $12.70 +E.
• Deloitte is rumored to be down to 2 options: renewing at Chase for 180,000 SF or relocation to Harwood. Decision anticipated in 30 days.
• Andy Leatherman with Jones Lang LaSalle is in the market with Homeland Security for 25,000 SF in Irving.
• Pilgrim's Pride, represented by Noel Hutcheson with Colliers, is in the market for 12,000 SF of office space in Far North Dallas.
Investment Activity
• Keller Properties bought Office in the Park, a 6-building complex in Far North Dallas. The 180,000 SF, Class B office complex was constructed in 1977 and renovated in 1999. The building was approximately 57% leased at the time of the sale. Sales price is undisclosed at this time.
Development Activity
• The developer of The Stoneleigh was forced into bankruptcy by its creditors. AP-Prescott Stoneleigh Residences LP owes approximately $4.7 million to Turner Construction Company for the partial construction of the condominium tower on Maple. Work on the project stopped last summer leaving 12 of the 22 stories unfinished. |
