Even with new construction that’s underway, vacancies are tightening as tenants continue to move in and expand. The region benefits from strong job and population growth, solid market fundamentals, and a diverse economic base. Here we look at the top five office, industrial, and retail leases of the past three months, with data provided by Xceligent Inc.
“It’s exciting to see the incredible level of activity and focus on the entire DFW area. The deal flow is probably greater than it has ever been. At the same time, the market overall is relatively tight.” —SHARON FRIEDBERG Senior Vice President, Bradford Commercial Real Estate Services
“We will continue to see vacancy tighten and lease rates increase in urban submarkets through the election year and beyond. We’ll also see more development in the Design District and more buildings trade hands in downtown Dallas.” —GRANT ENGLISH, Director of Brokerage Services, Altschuler + Co.
“Occupiers are transacting in a way that demonstrates long-term confidence in the market. Many 10-, 15- and, in some cases, 20- year industrial leases are occurring.” —TREY FRICKE Principal, Lee & Associates
“Retail activity is probably the best I have experienced in 30+ years. If job growth holds and we continue to be responsible with new development, it should be sustainable through 2016 and beyond.” —TIM HUGHES President and CEO, Falcon Realty
LARGEST OFFICE LEASES
SIZE: 233,000 square feet at 2280 North Greenville Avenue in RichardsonTENANT REPS: Tom Lynn and Nick Lee of NAI Robert Lynn, and Griff Bandy and Jon Silberman of NAI Partners
LANDLORD: CNL Commercial Real Estate, represented by Lauren Perry of Peloton Commercial Real Estate and Chuck Sellers, formerly with Peloton, now with Avison Young
DETAILS: Berkshire Hathaway’s GEICO (Government Employees Insurance Co.) will relocate its North Texas office from Farmers Branch to Fossil Inc.’s former headquarters in Richardson early next year. About 1,600 employees will make the move.
2. FRONTIER COMMUNICATIONS
SIZE: 190,000 square feet in Lakeside Campus at 2201 Lakeside Boulevard in Richardson
LANDLORD: Cawley Partners and GEM Realty Capital, represented by Bill Cawley and Addie Ludwig of Cawley Partners
DETAILS: The fast-growing telecom firm has signed a short-term deal (through the end of 2016) in Nortel’s former headquarters building along North Central Expressway, while it mulls a more permanent space strategy.
3. HUNTON & WILLIAMS
SIZE: 88,000 square feet in Fountain Place at 1445 Ross Avenue in Dallas
TENANT REPS: Larry Toon, Elizabeth Cooper, Jeremy McGowan, and Brad Selner of JLL
LANDLORD: Goddard Investment Group, represented by Johnny Johnson and Lauren Napper of Cushman & Wakefield
DETAILS: After considering other options, the corporate law firm decided to keep its Dallas office in the iconic downtown tower, inking a long-term renewal in the 60-story, I.M. Pei-designed skyscraper.
4. DALLAS COWBOYS
SIZE: 80,000 square feet in The Star at 1 Cowboys Way in Frisco
LEASING AGENTS: Worthey Wiles of Lincoln Property Co.
DETAILS: A new headquarters for the Dallas Cowboys anchors The Star, a 91-acre mixed-use development in Frisco that also includes a 12,000-seat events center and training facility for America’s team. Office space in the complex, which sits off the Dallas North Tollway at Warren Parkway, was designed by Gensler. The Cowboys will take ocucpancy in 2016.
5. FROST BANK
SIZE: 73,000 square feet at 640 Taylor in Fort Worth
TENANT REP: Todd Burnette and Pat McDowell, JLL
LANDLORD: Anthracite Realty Partners
DETAILS: Frost Bank is joining oil and gas concern Jetta Operating Co. Inc. to anchor this 25-story, glass-and-steel tower, the first built in downtown since 2008.
LARGEST RETAIL LEASES
1. HOBBY LOBBY
SIZE: 55,000 square feet at Park Boulevard and Plano Parkway in Plano
DEVELOPERS: The Retail Connection and Rockstreet Partners, with capital provided by Inwood National Bank
LEASING TEAM: Jenny Reynolds (brokerage) and Chad Bradshaw (development) with The Retail Connection
DETAILS: Developers acquired 4.5 acres at the high- profile location in Plano for the new Hobby Lobby store. The retailer has more than 600 stores in 45 states.
2. FITNESS NATION
SIZE: 40,000 square feet at 1805 Airport Freeway in Bedford
TENANT REP: Maury Levy of CBRE|UCR
LANDLORD: Sidelock Properties and ETB Properties LLC, represented by Edward Bogel, David Davidson Jr., and Clay Mote of Venture Commercial Real Estate
DETAILS: This is Fitness National’s second North Texas location. The company signed a 10-year lease with expansion options.
3. LA FITNESS
SIZE: 37,000 square feet at State Highway 78 and Woodbridge Parkway in Sachse
TENANT REPRESENTATION: John Zikos, Jonathan Cooper, and Cheryl Hill of Venture Commercial Real Estate; and Walt Brown Jr. and Tim Dollander of Diversified Partners
LEASING AGENT: David Watson of Direct Property Services Inc. DETAILS: The fitness chain’s new venue will anchor the Woodbridge Gate development in Sachse. The club is expected to open in early 2016.
4. TOTAL WINE & MORE
SIZE: 24,000 square feet at the South Loop 28 and Brinker Road in Denton
TENANT REPS: Darrel Hernandez with CBRE|UCR
LANDLORD: RPAI, represented by Jack Weir and David Levinson of The Retail Connection
DETAILS: Total Wine & More is the country’s largest independent retailer of fine wine. Typical stores stock more than 8,000 different wines and 2,500 different beers.
SIZE: 23,428 square feet at Gateway Plaza in Southlake
TENANT REPS: Peter Russell of Bed Bath & Beyond Inc.; Steve Lieberman and David Fazio of The Retail Connection
LANDLORD: RPAI, represented by Jason Kasal and Bonnie Threadgill of RPAI; David Levinson and Jack Weir of The Retail Connection
DETAILS:buybuyBABY is opening a venue at Southlake’s Gateway Plaza, off East Southlake Boulevard at State Highway 114.
LARGEST INDUSTRIAL LEASES
SIZE: 1.02 million square feet in Alliance Center North 2, 15101 North Beach Street
TENANT REPS: Chris Teesdale and Tom Pearson, Colliers International LANDLORD: Hillwood, represented by Steve Aldrich
DETAILS: Walmart is expanding its e-commerce center at Alliance, Hillwood’s 18,000-acre masterplanned development in North Fort Worth. It will take occupancy of its new space in January 2016.
2. ULTA BEAUTY
SIZE: 670,000 square feet at 4800 Mountain Creek
Parkway in Dallas
DETAILS: This $18 million development is projected to generate nearly $14 million in sales from e-commerce transactions in the first year of business and employ 450 full-time employees by 2019. The company operates more than 800 stores in 48 sites.
3. SHIPPERS WAREHOUSE
SIZE: 589,362 square feet at Prime Pointe I near Interstate 45 in Hutchins
TENANT REPS: Al Leon and Larry Leon, Logistics Realty LANDLORD: Duke Realty, represented by Matt Hyman
DETAILS: Shippers Warehouse selected Duke Realty to build it a new distribution center near the Union Pacific Dallas Intermodal Terminal in South Dallas. Shippers Warehouse will consolidate two facilities in Dallas and Garland under one roof.
4. FALKEN TIRE
SIZE: 255,000 square feet at Wildlife
Commerce Park in Grand Prairie
LANDLORD: Crow Holdings Industrial, represented by Will Mundinger Jr.
DETAILS: Crow Holdings Industrial has broken ground on a build-to-suit for Falken Tires, an affiliate of Japan’s Sumitomo Rubber Industries. It will be the third building constructed so far in the developer’s 220- acre Wildlife Commerce Park.
5. OWENS & MINOR
SIZE: 223,190 square feet at Lakeside Ranch in Flower Mound
TENANT REPS: Jim Cooksey and Adam Faulk, Jackson & Cooksey
LANDLORD: Duke Realty, represented by Randy Wood
DETAILS:Owens&Minor, a national distributor of medical and surgical supplies and supply-chain management company, renwed its lease at Lakeside Ranch, Building 20, at 550 Lakeside Parkway in Flower Mound. The project provides easy access to Interstate 635 and State Highways 121 and 114.