Not only did large leases prove a strong second quarter for Dallas-Fort Worth, but the various submarkets reaping the benefits of new tenants was scattered throughout the region for office, industrial, and retail sectors. From Samsung’s Legacy Central consolidation to Rent the Runway’s Great Southwest debut, the entire region is welcoming newcomers. Data was provided by individual firms. Maps were provided by CBRE.
“Each tenant’s needs are unique, but almost all focus in some way on creating a technologically-forward environment. Tenants want to connect anywhere/anytime, and must have robust and reliable high-speed technology that allows them to be productive no matter where they are in the building.”
— Jo Staffelbach Heinz, Principal, Studio Leader, DLR Group, Staffelbach
“Organic growth is impacting office demand. Tenants want to increase their footprint, regardless of lease expiration. Rights of first refusal on vacant space has become vital. As some tenants search for alternatives, existing tenants are exercising their expansion rights since many of these buildings are as much as 90 percent+ leased.”
— Brooke Armstrong, Executive Vice President, JLL
“When a tenant ‘company’ is looking for a new place to run their operations ... the first feature they look for is how the space is configured. Among the first features considered are the size and ratio of office to production to warehouse area. Then other features like dock doors and air conditioning come into play. The lease rate is an important but final consideration. If the space doesn’t work, the rate won’t matter.”
— George Tanghongs, Principal, Lee & Associates DFW
“[Retail tenancy is] a supply and demand equation. We don’t have enough new suburban construction coming online to meet the demand of the expanding tenants who are attracted to the growing population base in DFW. As DFW continues to grow, we should see continued tenant demand in the market.”
— Daniel Taylor, Retail Managing Director, CBRE
LARGEST OFFICE LEASES
1. SAMSUNG ELECTRONICS AMERICA INC.
Location: 6550 Chase Oaks Boulevard in Plano
Size: 216,000 square feet
Tenant Reps: Kimarie Ankenbrand, Matt Astrachan, Simon Landmann, and Steve Thelen with JLL
Leasing Agent: Nathan Durham and Duane Henley with Transwestern
Details: More than 1,000 Plano and Richardson employees will be centralized in Samsung’s Legacy Central 1 office starting in early 2019.
2. STEWARD HEALTH CARE
Location: 2375 North Glenville Drive in Richardson
Size: 165,107 square feet
Leasing Agent: Chris Taylor with Cushman & Wakefield and Russ Johnson with Peloton Commercial Real Estate
Details: Though this deal was rumored last quarter, the Boston health care company closed a deal to lease space in Galatyn Commons during the second quarter.
3. GAINSCO INSURANCE
Location: 3333 Lee Parkway
Size: 107,934 square feet
Tenant Reps: Chelby Sanders and Josh White with CBRE
Leasing Agent: Robert Jimenez and Burson Holman with Granite Properties
Details: The Dallas-based insurance company simultaneously expanded by 21,418 square feet and renewed its existing space of 86,516 square feet.
4. DARLING INGREDIENTS
Location: 5601 North MacArthur Boulevard in Irving
Size: 95,322 square feet
Tenant Reps: Bill McClung and Robbie Baty with Cushman & Wakefield
Leasing Agent: Matt Hurlbut and Nathan Durham with Transwestern
Details: In a deal that will grow Darling by nearly half, the food company will lease the entire building at MacArthur Center 1.
5. THE BECK GROUP
Location: 1601 Elm Street in Dallas
Size: 81,698 square feet
Details: More than 200 employees of the Dallas-based general contractor will move into Thanksgiving Tower in 2019. Neither party used a broker.
LARGEST INDUSTRIAL LEASES
1. ELEMENTS INTERNATIONAL GROUP
Location: 2250 Skyline Road in Mesquite
Size: 487,200 square feet
Tenant Reps: Nathan Lawrence with CBRE
Details: The Rockwall-based furniture wholesaler leased nearly 500,000 square feet in Mesquite’s Skyline Trade Center, joining neighbors such as Midwest Air Technologies and Four Seasons Buildings Products.
Location: 1001 Lakeside Parkway in Flower Mound
Size: 450,000 square feet
Tenant Reps: Thomas McCarthy, Craig Jones, and Trevor Ragsdale with JLL
Leasing Agent: Randy Wood with Duke Realty
Details: Architectural paint company PPG preleased more than 70 percent of Duke Realty’s new facility which will be completed in May 2019.
Location: 1200 West Wintergreen Road in Hutchins
Size: 416,891 square feet
Tenant Reps: Mark Collins and Adam Campbell with Cushman & Wakefield
Leasing Agent: Matt Elliot with NAI Robert Lynn
Details: The online retailer will open its shipping and fulfillment center in Core5 Logistics Center that will be used for a new shipping hub. VMInnovations sells products for home and garden, sports and outdoors, and electronics.
4. RENT THE RUNWAY
Location: 1111 Bardin Road in Arlington
Size: 319,200 square feet
Leasing Agent: Brian Gilchrist with CBRE
Details: The fashion rental company will move into its new facility in 2019 with 600 full-time employees.
5. XPO LOGISTICS
Location: 3300 Eagle Pky. in Fort Worth
Size: 318,768 square feet
Leasing Agent: Hillwood Properties
Details: The publicly traded global logistics company will move into more than half of the space at Alliance Center North 15.