The Dallas-Fort Worth commercial real estate market is off to a strong start in 2015, across all sectors. The region continues to benefit 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.
“You cannot hide the fact that more than 300 people are moving here each day. There are more large companies looking at relocations or consolidations in this area than ever before.”
– STEVE THELEN, Partner, JLL
“Expanding tenants will continue to absorb space, and corporations will continue to evaluate and choose North Texas as a top relocation region for their real estate needs. Let the good times roll.”
– NORA HOGAN, Principal, Transwestern
“Current deal activity suggests that 2015 will be as strong as recent years. But speculative development won’t continue at the same pace, until the latest wave of new product hits the market and leases up.”
– CHRIS TEESDALE, Executive vice president, Colliers International
“We expect to see occupancy remain above 90 percent and rents to continue to firm up. All in all, we’re in the best retail market in recent memory!”
– STEVE GRAY, Senior Vice President, The Weitzman Group
LARGEST OFFICE LEASES
SIZE: 399,788 s.f. in Lakeside Campus, 2201 Lakeside Blvd. in Richardson
TENANT REPS: Tim Terrell and Jeff Schweitzer with Stream Realty Partners
LANDLORD: Cawley Partners and GEM Realty Capital, represented by Bill Cawley and Addie Ludwig of Cawley Partners.
DETAILS: The software firm will relocate its headquarters to the four-story office building and will take occupancy in the 3rd Quarter of 2016.
SIZE: 327,183 s.f. at Cypress Waters in Dallas
TENANT REPS: Jeff Ellerman, Scott Hobbs, and Mike Scimo of CBRE
LANDLORD: Billingsley Co., represented in-house by Marijke Lantz
DETAILS: BOKA Powell designed this four-story building, the latest project to be built at the bustling 1,000-acre Cypress Waters development.
3. [TIE] CONFIER HEALTH
SIZE: 200,000 s.f. in Duke Bridges at 7460 Warren Pkwy. in Frisco.
TENANT REPS: Steve Thelen, Bo Bond, Rachel Brown, Torrey Littlejohn, Vince Burt, Jeff Davis, and Angela Carrier of JLL
LANDLORD: Duke Realty, represented by Dale Ray and Jeff Wood of Peloton Commercial Real Estate
DETAILS: The healthcare company expanded last year by moving its headquarters into the newly constructed property.
3. [TIE] KUBOTA TRACTOR
SIZE: 200,000 s.f.
TENANT REPS: Steve Berger and Ann Huntington, CBRE
DETAILS: In another major DFW relocation from Torrance, California, this global maker of tractors and lawn equipment has locked down a 25-acre site in Grapevine for a new headquarters. Initial plans call for a 150,000-square-foot office building and 50,000-square-foot R&D facility.
5. LIBERTY MUTUAL
SIZE: 160,000 s.f. at 3905 North Dallas Pkwy. in Plano
TENANT REP: Craig Jablin of Savills Studley
LANDLORD REP: Jeff Wood, Peloton Commercial Real Estate
DETAILS: The insurance company is housing its customer service operations here while its new campus is being built in Legacy West.
LARGEST INDUSTRIAL LEASES
1. BRIDGESTONE AMERICAS
SIZE: 1.1 million s.f. in Gateway 61 and Gateway 53 at AllianceTexas
TENANT REPS: Gary Collett, Jean Russo, Lou Hall, Kathleen Nelson, and Daniel Wilkins with Cushman & Wakefield
LANDLORD: Hillwood, represented by Reid Goetz and Tony Creme
DETAILS: Bridgestone renewed its lease in Gateway 61 and expanded into Gateway 53 for a total of about 1.1 million s.f.
2. NFI INDUSTRIES
SIZE: 653,582 s.f. in Park 20/35 at 1901 Danieldale Road in Lancaster
TENANT REP: Ryan Keiser with CBRE
LANDLORD: Prologis, represented by Dave Anderson of CBRE
DETAILS: The family-owned company has been in business since 1932 and is based in New Jersey. It already has several locations across North Texas.
3. R.R. DONNELLEY & SONS CO.
SIZE: 514,992 s.f. in Trammell Crow Penn Distribution Center in Dallas
TENANT REP: Nathan Lawrence with CBRE
LANDLORD: Trammell Crow Co., represented by Kacy Jones and John Hendricks of CBRE
DETAILS: Trammell Crow Penn Distribution Center is one of the largest warehouses in the Interstate 20 corridor.
SIZE: 500,000 s.f. at the northwest corner of Interstates 45 and 20 in Dallas
LANDLORDS: Trammell Crow Co. and Clarion Partners
DETAILS: The distribution center will process smaller scale items, such as electronics and consumer goods. Dallas County provided $17 million in tax abatements to support the new fulfillment operation.
5. MENLO LOGISTICS
SIZE: 494,990 s.f. at 14900 Frye Road in Fort Worth
TENANT REPS: John Lancaster and Steve Shields with NAI Robert Lynn
LANDLORD: KTR Capital Partners, represented by Cannon Green and Matt Dornak with Stream Realty Partners
LARGEST RETAIL LEASES
SIZE: 95,000 s.f. at Glade Parks in Euless
DEVELOPER: North Rock Real Estate and Iron Point Partners
LANDLORD REPS: Steve Ewing and Josh Flores with EDGE Realty Partners
DETAILS: Belk will open its ninth North Texas location at the 193-acre Glade Parks development between Cheek-Sparger and Glade roads.
2. TOM THUMB
SIZE: 60,000 s.f. at the Union Dallas in Uptown
TENANT REPS: Clay Smith and Mark Newman with JLL
LANDLORD: RED Development, represented by
CBRE | UCR
DETAIL: The grocery store will anchor the Union, a project that will total approximately 800,000 square feet, at Field Street and Cedar Springs Road. It’s slated to open in 2017.
3. CINEPOLIS LUXURY CINEMAS
SIZE: 44,000 s.f. at Victory Park Lane and High Market Street in Victory Park
LANDLORD: Victory Park UST Affiliate, represented by Kerby Smith and Stacy Barton of Trademark Property Co.
DETAILS: The entertainment company will open an eight-screen, 700-seat luxury theatre as a part of Victory Park, a 75-acre development surrounding American Airlines Center.
4. FITNESS NATION
SIZE: 40,000 s.f. at 1805 Airport Fwy in Bedford.
TENANT REP: Maury Levy of CBRE | UCR
LANDLORD: Sidelock Properties and ETB Properties LLC
DETAILS: Fitness Nation will open its second DFW location in Bedford. It signed a 10-year lease with expansion options. The new center is slated to open August 2015.
5. BEST BUY
SIZE: 32,570 s.f. at Pleasant Run Towne Crossing in Cedar Hill
TENANT REP: Susan Ridley of The Retail Connection
LANDLORD: Retail Properties of America, recommended by Kendall Ibsen, Jack Weir, and David Levinson of TRC
DETAILS: Best Buy will join other big-name retailers at the 225,028-square-foot Pleasant Run Towne Crossing, located off U.S. Hwy. 67.