Leasing activity across North Texas is brisk, buoyed by relocations and population growth. The demand is affecting all sectors: midyear office leasing stands at 2 million square feet, the industrial vacancy rate has dropped to 8.1 percent, and a number of specialty grocers and other chains are expanding across DFW.
“The top three factors driving DFW prosperity are Rick Perry, a pro-business environment, and quality of life, in that order. Companies want to operate as efficiently as possible, with minimal government interference or taxation.”
— Ryan Evanich, Vice President, Stream Realty Partners
“Generally, business owners today are looking for a location that speaks to their workforce and image. It’s less about the convenience of the decision-makers and more about the employees.”
— Barbara Houlihan, Senior Vice President, Peloton Commercial Real Estate
“Leasing activity continues at a feverish rate, causing competition among tenants for quality industrial space. This is especially true for ‘bread and butter’ deals of 20,000 to 150,000 square feet.”
— Craig Jones, Industrial Division President, NAI Robert Lynn
“Moving allowances have just about disappeared. Free rent is still available, but not at the level it was a couple of years ago, when you’d expect one month of free rent for every year on the lease term.”
— Michael Spain, Senior Vice President, Bradford Commercial, Real Estate Services
LARGEST OFFICE LEASES
1. FEDEX OFFICE
- Deal: 265,000 s.f. build-to-suit at Legacy West
- Occupancy: 2015
- Developer: KDC
2. TENET HEALTHCARE CORP.
- Deal: 242,000 s.f. at Fountain Place in Dallas
- Occupancy: Expansion and renewal
- Leasing Agents: Johnny Johnson and Lauren Napper with Cassidy Turley
- Tenant Reps: Phil Puckett, Harlan Davis, and Chris Hermann with CBREDetails: Tenet, which has occupied Fountain Place since 2009, expanded its lease by about 30 percent in May, signing on for 242,000 square feet through 2025. The 58-story Fountain Place was sold in June to Goddard Investment Group and an affiliate of Metropolitan Life Insurance.
- Deal: 142,000 s.f. at 4301 and 4401 Regent Blvd., Irving
- Occupancy: July 2014
- Leasing Agents: Johnny Johnson and Rodney Helm with Cassidy Turley
- Tenant Reps: Steve McCoy and Alan Harrington with Transwestern; Troy Baron with Weston Commercial.
4. ENERGY TRANSFER PARTNERS
- Deal: 130,000 s.f. at 8111 Westchester in Preston Center
- Occupancy: Early 2015
- Developer: Bandera Ventures
- Tenant Reps: Randy Cooper and Dan Harris with Cassidy Turley
5. TOYOTA MOTOR CORP.
- Deal: 125,742 s.f. at The Campus at Legacy in Plano
- Occupancy: Summer 2014
- Leasing agents: Chuck Sellers, Russ Johnson, and Lauren Perry with Peloton Commercial Real Estate represented the landlord, Spear Street Capital.
- Tenant Reps: Paul Whitman, Brad Selner, and Brooke Armstrong with JLLDetails: Toyota announced in April that it was relocating its U.S. headquarters from California to Plano—a move that will bring 4,000 new jobs to North Texas. While its new campus is being built near the northwest intersection of the Dallas North Tollway and State Highway 121, the automaker has leased space at the nearby Campus at Legacy, giving it room to grow.
TOP INDUSTRIAL LEASES
1. DALPORT TRADE CENTER
- Deal: 1,564,800 s.f. distribution center in Wilmer
- Occupancy: Fall 2014
- Leasing Agent: Terry Darrow with JLL
- Details: This massive new building is being developed off Interstate 45 by Panattoni for an unnamed tenant, which will use the space as a regional distribution center.
2. WILLIAMS-SONOMA INC.
- Deal: 821,502 s.f. at Arlington Commerce Center
- Occupancy: May 2014
- Leasing Agent: Dave Anderson with CBRE represented landlord, Exeter Property Group
- Tenant reps: Tom Pearson and Chris Teesdale with Colliers International
3. WHIRLPOOL CORP.
- Deal: 725,709 s.f. at Carter Industrial Park
- Occupancy: February 2014
- Leasing agents: Trey Fricke and Reid Bassinger with Lee & Associates
- Tenant reps: Tom McCarthy and George Curry with JLL
- Details: Whirlpool, a former occupant of the building, re-leased this state-of-the-art distribution center because, among other things, it provides a strategic central location to distribute goods manufactured in Monterrey, Mexico, to U.S. markets.
4. ALLIANCE GATEWAY 1
- Deal: 499,797 s.f. at Hillwood’s Alliance Gateway 1
- Occupancy: July 2014
- Leasing agent: Tony Creme, Hillwood
- Tenant rep: Sharon Morrison, E Smith Realty Partners
5. JC PENNEY
- Deal: 420,000 s.f. lease renewal at 1650 S. Highway 67 in Cedar Hill
- Occupancy: Renewal
- Leasing agent: The property owner, AP Cedar Hill LLC, was self-represented.
- Tenant reps: Nathan Orbin, Melissa Holland, Kurt Griffin, and Greg Matter with JLL
- Details: Plano-based JC Penney did a lease renewal for its South Dallas distribution hub in early 2014.
TOP RETAIL LEASES
- Deals: 123,000 s.f. at North Tarrant Marketplace in North Richland Hills, 123,000 s.f. at S.H. 121 in Castle Hills in Lewisville, and 123,000 s.f. at Lantana Town Center in the Denton County town of Bartonville. In early July, Kroger also purchased a 13.35-acre tract at Burleson Commons for a new 114,000-s.f. Marketplace store.
- Key Players: Cencor Realty Services, an affiliate of The Weitzman Group, is developing the Lewisville store; the other two properties are being developed by NewQuest Properties. The stores will open in 2014 and 2015. Mark Reeder and Tyler Isbell with SRS Real Estate Partners represented Cullinan Properties Ltd. In the Burleson land sale.
- Details: Kroger’s $150 million expansion plan for North Texas includes five new “Marketplace” stores, a concept that goes beyond groceries to include furniture, housewares, toys, and jewelry.
- Deal: 52,688 s.f. at Mills Pointe in Carrollton
- Key players: Maury Levy and Robert Luleff with UCR represented the landlord, 2810 E. Trinity Mills Holdings Ltd. Wyatt Russo and Sherman Hinkebein with The Retail Connection represented the tenant.
- Details: Based in McLean, Virginia, Fitness Connection is a new and fast-growing fitness chain that’s backed by a $500 million private equity fund. Its new Carrollton gym will be its fourth, with other centers in Allen, Arlington, and Garland.
STUDIO MOVIE GRILL
- Deals: 51,935 s.f. at the southeast corner of S.H. 26 and Hall Johnson in Colleyville, 40,000 s.f., and 40,000 s.f. in Lewisville Towne Crossing at 4740 State Highway 121 in Lewisville (The Colony trade area).
- Key players: In Colleyville, Larry Leon and John Zikos with Venture Commercial represented the property owner, ANB Special Assets LLC. In Lewisville, Kendall Ibsen and Jim Weir with The Retail Connection represented the landlord, Endeavor RE Management LLC. The Retail Connection (Alan Shor and Ross Golman) also represented Studio Movie Grill.
- Details: The Colleyville theater, which opened in April, features eight screens and more than 1,000 seats. The new venue in Lewisville will feature 10 screens and more than 1,300 seats.
- Deal: 45,256 s.f. lease renewal in Arapaho Village at 819 W. Arapaho Road in Richardson.
- Key players: Robert Luleff and Maury Levy with UCR represented the landlord, 819 W. Arapaho Road Holdings LP.
- Deal: 37,000 s.f. at Custer Road and Virginia Parkway in McKinney.
- Key players: Jean Smith with UCR represented the landlord, Biruk Partners Ltd. The tenant was represented by Jonathan Cooper and John Zikos with Venture Commercial and Walt Brown Jr. and Tim J. Dollander with Diversified Partners LLC.