office market brief - Holt Lunsford Commercial

Transcription

Dallas | Fort Worth
OFFICE MARKET BRIEF
Fourth Quarter 2015
Fourth Quarter 2015
Table of Contents
1. Submarkets and Professionals
2. Overall DFW Office Market
A. 5 Facts and Figures
3. Submarket Intelligence
A. 5 CBD
B. 5 Central Expressway
C. 5 Far North Dallas
D. 5 Fort Worth CBD
E. 5 Las Colinas
F. 5 LBJ
G. 5 Mid Cities
H. 5 North Fort Worth
I. 5 Preston Center
J. 5 Richardson/Plano
K. 5 South Fort Worth
L. 5 Stemmons
M.5 Uptown/Turtle Creek
Fourth Quarter 2015
DALLAS/FORT WORTH OFFICE TEAM
Matt Carthey
Partner, Fort Worth
David Cason,
Vice President,
Fort Worth
Geoff Shelton,
Managing Principal,
Fort Worth
Holden Lunsford,
Marketing Director,
Dallas
James Engels
Marketing Associate,
Dallas
Marshall Mays
Marketing Associate,
Fort Worth
Andrew Scudder
Marketing Analyst,
Dallas
Brandon Avedikian,
Marketing Analyst,
Dallas
Lori Vukovich
Marketing Coordinator,
Dallas
Gisela Stern-Balsley
Marketing Coordinator,
Fort Worth
HIGHLIGHTED SUBMARKETS
lewisville/denton
Far North Dallas
Richardson/Plano
north
fort worth
las colinas
northeast fort worth
Fort worth cbd
south fort worth
mid-cities
LBJ
Preston
Center Central
Expressway
stemmons FWY
Uptown/Turtle Creek
CBD
East Dallas
southwest Dallas
5055 Keller Springs, Suite 300 • Addison, Texas 75001 • 972.241.8300 • holtlunsford.com
Fourth Quarter 2015
Facts & Figures
Vacancy - Overall DFW
Construction - Overall DFW
8,100,000
25.00%
20.6%
7,100,000
17.8%
20.00%
6,100,000
19.7%
16.9%
5,100,000
15.00%
4,100,000
10.00%
3,100,000
2,100,000
5.00%
0.9%
1,100,000
0.9%
Q4
12
Q1
13
Q2
13
Q3
13
Q4
13
Q1
14
Q2
14
Direct Vacancy
Q3
14
Q4
14
Q1
15
Q2
15
Sublet Vacancy
Q3
15
0.00%
Q4
15
Q4
12
Q1
13
Q2
13
Q3
13
Q4
13
Q1
14
Q2
14
Q3
14
Delivered Inventory
Total Vacancy
Source: CoStar 2015 4Q Office Report
Absorption - Overall DFW
Overview - Overall DFW
Q1
15
Q2
15
Q3
15
Q4
15
350,000
17.0%
100,000
16.5%
(150,000)
16.0%
300,000
Q4
12
Q1
13
Q2
13
Q3
13
Q4
13
Q1
14
Q2
14
Vacancy Absorption
Total Net Absorption
Market
800,000
17.5%
600,000
Q4
14
1,300,000
18.0%
850,000
Q3
14
1,800,000
18.5%
1,100,000
Q2
14
2,300,000
19.0%
1,350,000
Q1
14
100,000
19.5%
1,600,000
Q4
13
Q4
15
20.0%
1,850,000
Q3
13
Q3
15
20.5%
2,100,000
Q2
13
Q2
15
21.0%
2,350,000
Q1
13
Q1
15
Under Construction
Q4
12
Q4
14
Q3
14
Q4
14
Q1
15
Deliveries
Q2
15
Q3 15
Q4 15
Vacancy
Existing Inventory
# Bldgs.
Total RBA
Vacancy
Direct SF
Total SF
Vac. %
YTD Net
Absorption
YTD
Deliveries
Under
Const. SF
Quoted
Rates
Central Expressway
104
12,702,235
1,879,803
1,926,046
15.2%
339,739
207,041
0
$25.20
Dallas CBD
79
28,636,215
6,266,453
6,441,775
22.5%
437,093
540,862
261,400
$24.08
East Dallas
183
8,005,751
818,610
830,737
10.4%
174,233
20,773
18,309
$20.87
Far North Dallas
421
42,079,120
5,852,539
6,446,437
15.3%
1,643,463
1,430,517
2,182,315
$26.96
Ft Worth CBD
56
9,255,405
1,034,321
1,069,189
11.6%
324,366
0
0
$26.05
Las Colinas
267
31,497,344
4,942,245
5,283,298
16.8%
605,104
481,804
867,183
$23.45
LBJ Freeway
168
20,942,143
5,380,704
5,449,015
26.0%
98,133
0
0
$20.58
Lewisville/Denton
155
8,295,817
1,204,482
1,211,631
14.6%
70,389
103,464
22,000
$21.41
Mid-Cities
390
20,721,295
3,762,265
4,471,814
21.6%
150,873
212,455
212,545
$20.92
North Fort Worth
47
2,387,984
321,339
346,582
14.5%
369,039
407,214
19,900
$20.71
Northeast Ft Worth
49
3,533,740
1,277,873
1,292,858
36.6%
($217,222)
0
0
$16.17
Preston Center
48
4,420,926
393,677
409,638
9.3%
149,674
190,000
186,257
$35.50
Richardson/Plano
310
24,597,854
4,178,703
4,212,228
17.1%
1,618,235
2,076,638
991,264
$21.32
South Ft Worth
202
10,257,390
890,519
892,992
8.7%
243,974
196,222
409,232
$23.06
Southwest Dallas
77
3,214,306
430,437
430,437
13.4%
37,238
75,000
0
$17.06
Stemmons Freeway
107
11,583,953
2,870,748
2,941,070
25.4%
204,836
0
0
$15.58
Uptown/Turtle Creek
89
11,391,310
1,233,563
1,254,644
11.0%
405,919
417,735
1,288,797
$36.28
2,752
253,522,788
42,728,281
44,910,391
17.7%
6,655,086
6,359,725
6,459,202
$23.54
Totals
(200,000)
Source: CoStar Property®
Fourth Quarter 2015
Central business district
Market Highlights
Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
39,956
22.5%
261,400
98,811
22.4%
81,479
225,052
25.2%
459,383
Delivered SF
vs. Prev. Qtr
Vs. 12 Mths Ago
Quoted Rates
vs. Prev. Qtr
vs. 12 Mths Ago
81,479
$24.08
-
$23.12
459,383
$22.76
Current Events:
• Irving-based development firm NewcrestImage landed
$35.65 million in financing to redevelop 22 story, 180,000
square-foot Mercantile Commerce Building. The plans to the
now vacant office building include a new dual-branded AC
Hotel and Residence Inn.
• Fort Worth-based real estate developer and investor John
Goff is buying five historic buildings in the district. He plans
to market the century-old commercial buildings to startup
companies and creative firms that want unique office space.
• HOK has been hired by the owners of the 50 story Trammell
Crow Center on Ross Avenue to design the redo of the 30 year-old building. Plans call for a revamp of the lobby
areas and reworking the entrances to the office tower.
• San Francisco-based Spear Street Capital has put the
Landmark Center in Dallas’ historic West End neighborhood
under contract. The six-story, 133,716 square-foot red brick
building was said to have sold at $200 per square foot, or
$26.7 million.
• Dallas investor Jonas Woods has closed on his latest deal
in downtown Dallas, the office real estate portion of One
Dallas Center. The mixed-use building at 350 N. St. Paul
St. is home to Dallas-based architecture firm HKS Inc. and
Dallas-based Greyhound Lines Inc.
• Demolition has started on the more than century old 4 story Brewery Building at Continental and Houston
streets. Provident is planning an apartment project on the
site.
Deals in the Market:
• Chase Tower – a 1.3 Million square feet Class A office
property
New Developments:
• 1900 N Pearl Street – 261,400 SF with Lincoln Property
Company
Large Existing Vacancies:
• Thanksgiving Tower/1601 Elm Street – 447,444 SF
• Bank of America Plaza/901 Main Street – 351,324 SF
• Fountain Place/1445 Ross Avenue – 295,930 SF
• 1700 Pacific – 228,617 SF
• One Main/1201 Main Street – 194,326 SF
1,000,000
34.0%
800,000
32.0%
600,000
30.0%
400,000
28.0%
200,000
26.0%
0
24.0%
(200,000)
22.0%
(400,000)
20.0%
Q4
12
Q1
13
Q2
13
Q3
13
Q4
13
Q1
14
Absorption
Q2
14
Q3
14
Deliveries
Landmark Center
Top Lease Transactions:
• Godwin PC signed a 43,000 SF lease reduction at
Renaissance Tower.
• Invitation Homes signed a 26,613 SF lease at 1717 Main
Street.
• Capital Institutional Services, Inc. signed a 24,106 SF lease
at 1700 Pacific Avenue.
• Special Counsel signed a 14,000 SF lease at 1700 Pacific
Avenue.
Q4
14
Q1
15
Vacancy
Q2
15
Q3
15
Q4
15
(600,000)
Fourth Quarter 2015
central expressway
Market Highlights
Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
149,887
15.2%
-
86,584
16.3%
-
120,578
17.0%
207,041
Delivered SF
vs. Prev. Qtr
Vs. 12 Mths Ago
Quoted Rates
vs. Prev. Qtr
vs. 12 Mths Ago
-
$25.20
-
$24.90
-
$23.43
Mockingbird Station
• Rambler Park – a 310,771 square feet Class A office
property
• 10100 North Central Expressway – a 94,294 square feet
Class B office property
New Developments:
• No developments are currently under construction at this
time. However, one has been proposed:
°° Office Tower in The Glen At Preston Hollow
• Cityplace Tower/2711 North Haskell Avenue – 219,135 SF
• 5735 Pineland Drive – 68,000 SF
• 5750 Pineland Drive – 51,000 SF
• Three Energy Square/6688 North Central Expressway – 41,131 SF
• Campbell Centre South Tower/8150 North Central
Expressway – 31,884 SF
250,000
22.0%
200,000
150,000
20.0%
100,000
18.0%
Current Events:
• Mark Masinter, managing member of Dallas-based Open
Realty Advisors bought Knox Park Village with CIM Group, a
Los Angeles investor group. The plan is to make the parking
garage more noticeable, improve landscaping, and upgrade
the office space common areas.
• A CBRE Global Investors-sponsored fund has acquired
Mockingbird Station, a mixed-use, transit-oriented
development at the northeast corner of Mockingbird lane
and North Central Expressway in Dallas. The 10 story,
148,878 square foot office tower is 94 percent occupied
and the 197,367 square feet of retail space is 92 percent
occupied.
• Tenants in the 60 year-old Meadows Building on Greenville
Avenue say the new owners intend to demolish a massive
portion of the landmark to make room for a driveway. The
plan is to raze the two-story strip to make way for this
driveway connecting the Davaco/Energy Square tower that
sits on the North Central Expressway service road. The
demolition would also potentially destroy the courtyard that
sits in front of the building.
50,000
0
16.0%
(50,000)
14.0%
(100,000)
(150,000)
12.0%
(200,000)
10.0%
Q4
12
Q1
13
Q2
13
Q3
13
Q4
13
Q1
14
Absorption
Q2
14
Q3
14
Deliveries
Knox Park Village
• DISD signed a 66,604 SF lease at 9400 NCX.
• Pediatric Associates of Dallas signed a 21,269 SF lease at
7859 Walnut Hill Lane.
• Brasfield Gorrie signed a 9,899 SF lease at Campbell Centre
North Tower.
Q4
14
Q1
15
Vacancy
Q2
15
Q3
15
Q4
15
(250,000)
Fourth Quarter 2015
far north dallas
Market Highlights
•
Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
570,148
15.3%
2,182,315
491,977
15.2%
2,919,820
117,402
16.4%
2,333,286
Delivered SF
vs. Prev. Qtr
Vs. 12 Mths Ago
Quoted Rates
vs. Prev. Qtr
vs. 12 Mths Ago
737,505
$26.96
487,094
$26.29
518,465
$24.30
Current Events:
• California property investor Buchanan Street Partners officially
bought the Tollway Plaza office buildings. The 370,000 squarefoot buildings are almost fully leased to tenants including Travis
Wolff LLP, Axxess Technology Solutions, HQ Global and Stewart
Title. The buildings were expected to fetch almost $230 per
square foot.
• Coral Gables, Florida-based America’s Capital Partners has
acquired Signature Exchange, a two-tower, 460,000 squarefoot office complex. The building is 92 percent occupied with
key tenants that include EMC Corporation, Regus, Equifax and
Yardi Systems.
• JP Morgan Chase plans to build a complex of five office
buildings to house its 6,000 workers in Plano. The details of the
almost 1 million square-foot campus at State Highway 121 and
the Dallas North Tollway are still being worked out by the firm.
• Mycon General Contractors Inc. bought a 46,000 square-foot
office building at 17311 Dallas Parkway in Dallas where they
plan to remodel and use for its new headquarters.
• Yacht Harbor Capital Advisors bought Fairways I, a 35,000
square-foot office building. The building is located on Knoll
Trail Drive, north of the intersection of Keller Springs Road and
the Dallas North Tollway, on the fifth hole of Bent Tree Country
Club.
• Fannie Mae plans to occupy a single, 300,000 square-foot
regional office in the Granite Park multi-tenant office park in
Plano at the southeast Dallas North Tollway and Sam Rayburn
Tollway. Fannie Mae will not be able to consolidate its current
three locations until 2018.
• Softlayer Technologies signed a 22,000 SF expansion for a total
of 145,000 SF at Stanford Corporate Centre.
• Crestron signed a 95,000 SF lease at 7250 North Dallas
Parkway.
• US Renal Care signed a 79,650 SF sublease at 5851 Legacy
Circle.
• Goodman Networks signed a 56,347 SF sublease at 2801
Network Boulevard.
• Greatbatch, Inc. signed a 53,284 SF lease at Granite Park V.
• Aimbridge Hospitality signed a 53,100 SF sublease at 5851
Legacy Circle.
• Hilti, Inc. signed a 27,849 SF lease at Legacy Tower.
Foxworth-Galbraith Lumber Company signed a 25,000 SF
renewal at Preston Park Financial East.
• International Plaza III - a 354,182 square foot Class A property
• The Aberdeen – a 309,774 square foot Class A office property
New Developments:
• Wade Park 1 – 400,000 SF spec with Thomas Land &
Development
• The Star – 398,769 SF spec with the City of Frisco, Cowboys
pre-leased 80,000 SF on the 1st, 2nd, and 3rd floors
• One Legacy West – 307,767 SF spec under construction with
Gaedeke Group
• Legacy West – 225,000 SF spec with The Karahan Companies
• Tollway Center – 197,740 SF with Cawley Partners
• Frisco Bridges Place – 170,000 SF spec with Randy Heady
• Platinum Park – 166,105 SF spec with Stream Realty
• Parkside on Legacy – 101,555 SF with VanTrust Commercial
Real Estate
• Granite Park V/5830 Granite Parkway – 233,709 SF
• Legacy Center/5445 Legacy Drive – 158,810 SF
• Lone Star Building/14460 Maxim Drive – 138,000 SF
• Gramercy Center South/18451 North Dallas Parkway – 129,767 SF
• Legacy VII/5201 Tennyson Parkway – 125,238 SF
17.0%
750,000
16.5%
650,000
16.0%
550,000
15.5%
450,000
15.0%
350,000
14.5%
250,000
14.0%
13.5%
150,000
13.0%
50,000
12.5%
Q4
12
Q1
13
Q2
13
Q3
13
Q4
13
Q1
14
Absorption
Q2
14
Q3
14
Deliveries
Signature Exchange
Q4
14
Q1
15
Vacancy
Q2
15
Q3
15
Q4
15
(50,000)
Fourth Quarter 2015
fort worth cbd
Market Highlights
Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
70,786
11.6%
-
89,988
12.3%
-
84,750
15.1%
-
Delivered SF
vs. Prev. Qtr
Vs. 12 Mths Ago
Quoted Rates
vs. Prev. Qtr
vs. 12 Mths Ago
-
$26.05
-
$26.43
-
$26.62
Frost Tower
Top Lease Transactions
• The T signed a new lease for 15,824 SF at Burnett Plaza.
• Covenant Group signed a 14,700 SF lease on the 8th floor
at Burnett Plaza. • RSP Architects signed a 7,611 SF lease for 1st floor space
at Cantey Hanger Plaza.
Deals in the Market
• No buildings are currently for sale at this time
Large Existing Vacancies
• 777 Main
°° FTS International Sublease – 92,199 SF
°° Willbros Group, Inc. Sublease– 22,918 SF
°° Direct Space – 181,943 SF
• One City Place
°° Direct Space – 179,617 SF
• Burnett Plaza
°° Direct Space - 168,271 SF
• DR Horton
• The Cassidy
20.0%
150,000
19.0%
100,000
18.0%
17.0%
50,000
16.0%
Current Events
• Sundance Square has announced several new retailers and
restaurants coming to downtown Fort Worth in the coming
months. IT’SUGAR will be opening a new location at 502
Main Street in between Mi Cocina and Barse Jewelry in
April 2016. Yolk, a breakfast and brunch restaurant, will
be opening in March 2016 at 305 Main Street. The former
location of Cowtown Diner should provide the restaurant
excellent access to clientele working in City Center. Other
notable announcements include the controversial addition
of a Hooter’s to the City Place office development owned by
Spire Realty.
• Pre-construction began late December 2015 on the recently
announced Frost Tower. The project already has leases
signed for Anthracite Realty, Jetta Operating, and Frost
Bank. Set do deliver December 2017, this building will be in
a class of its own and looks to push the high rent watermark
in the CBD.
• XTO plans to build an eight story parking garage on the lot
it owns that is bounded by Houston, Throckmorton, Sixth
and Seventh streets. The eight story structure will contain
roughly 800 car parks to serve XTO’s 2,000 downtown
employees.
15.0%
0
14.0%
(50,000)
13.0%
12.0%
(100,000)
11.0%
10.0%
Q4
12
Q1
13
Q2
13
Q3
13
Absorption
Q4
13
Q1
14
Q2
14
Deliveries
Q3
14
Cantey Hanger Plaza
Q4
14
Q1
15
Vacancy
Q2
15
Q3
15
Q4
15
(150,000)
Fourth Quarter 2015
las colinas
Market Highlights
•
Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
376,683
16.8%
867,183
203,949
17.6%
681,219
108,813
17.4%
340,585
Delivered SF
vs. Prev. Qtr
Vs. 12 Mths Ago
Quoted Rates
vs. Prev. Qtr
vs. 12 Mths Ago
141,219
$23.45
-
$23.32
164,784
$22.18
Current Events:
•
Gables Residential’s Water Street project kicked off construction. The long awaited mixed-use development fronting Lake Carolyn will
complete its first phase with more than 300 apartments and 60,000 SF
of retail on O’Connor Road near State Highway 114.
•
Human resources firm OneSource Virtual Inc. is in talks with developer
Billingsley Co. and the city of Dallas to relocate its corporate
headquarters to the new Cypress Waters development. The company
would bring 900 workers to a 4 story, 215,000 square-foot office
project that is set to open next year.
•
California-based Motorsport Aftermarket Group and MAG Retail
merged and are now shopping for a new home.
•
Hartman Corporate Park Place, an affiliate to Hartman Short Term
Income Properties XX, purchased Corporate Park Place. The 113,000
square foot office building was 80 percent leased and home to a
diverse mix of tenants including Baker Hughes, Reliant Energy, and
Homeowners of America Inc.
•
Americredit Financial Services Inc. signed a 69,549 SF lease at
Mandalay Tower.
•
Phytel, Inc. signed a 60,164 SF lease renewal at Two Colinas Crossing.
•
Lennar Homes signed a 59,000 SF lease renewal and expansion at
Westway One.
•
GM Financial signed a 47,208 SF lease at Mandalay Tower.
•
Verizon signed a 44,776 SF sublease at The Urban Towers.
•
Caliber Home Loans, Inc. signed a 43,769 SF sublease at LakeView
Center I.
•
CustomInk signed a 29,058 SF lease at Royal Tech 12.
•
Caliber Home Loans, Inc. signed a 27,300 SF sublease at Las Colinas
Corporate Center II.
•
Children’s Medical Center of Dallas signed a 24,734 SF lease at Tower
1320.
Colinas Business Park – a three building 75,874 square foot Class C office park
Crestwood Center – a 74,338 square feet Class B office building,
currently under contract
Decker Place – a 43,559 square foot Class C office building
Regent Place – a 42,868 square foot Class C office building
1125 Executive Circle – a 30,694 square foot Class B office building
•
•
•
•
New Developments:
•
3200 Hackberry Road is a 325,000 square foot, four story Class
A office building under construction within the Cypress Waters
Development by Billingsley. The building will serve as the
headquarters for 7-Eleven and is set to deliver first quarter 2016.
•
3001 Hackberry Drive is a 327,183 SF, four story Class A office
building under construction within the Cypress Waters development. This building will serve as the headquarters for CoreLogic and will be
delivered first quarter 2017.
•
9001 Cypress Waters Boulevard is a 215,000 square foot Class A
office building under construction also within Cypress Waters. This
building will serve as the headquarters for OneSource Virtual Inc. and
is set to deliver third quarter 2016.
•
The Apex At Las Colinas Crossing/6535 & 6555 North State Highway
161 – 526,604 SF
•
1925 West John Carpenter Freeway – 405,432 SF
•
One Twenty Five/125 E John Carpenter Freeway – 192,737 SF
•
Park West 2/1505-1507 Lyndon B Johnson Freeway – 231,710 SF
•
The Point at Las Colinas/300 E John Carpenter Freeway – 176,962 SF
•
Mandalay Tower/220 East Las Colinas Boulevard – 91,134 SF
•
Two Colinas Crossing/11511 Luna Road – 115,169 SF
•
1660 North Westridge Circle – 101,120 SF
22.0%
450,000
21.0%
350,000
20.0%
250,000
19.0%
150,000
18.0%
50,000
17.0%
(50,000)
16.0%
(150,000)
15.0%
Q4
12
Q1
13
Q2
13
Q3
13
Q4
13
Q1
14
Absorption
Q2
14
Q3
14
Deliveries
OneSource Virtual Headquarters
•
Urban Towers – a 848,591 square foot Class A office building,
currently under contract
•
1925 West John Carpenter Freeway – a 405,432 square foot Class A office building
•
Las Colinas Commons – a 225,268 square foot Class B office
complex, currently under contract
•
2250 West John Carpenter Freeway – a 127,226 square foot Class A office building
Q4
14
Q1
15
Vacancy
Q2
15
Q3
15
Q4
15
(250,000)
Fourth Quarter 2015
LBJ
Market Highlights
Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
U/C SF
vs. Prev. Qtr
(28,013)
26.0%
-
40,493
25.9%
-
(126,270)
26.5%
vs. 12 Mths Ago
-
Delivered SF
vs. Prev. Qtr
Vs. 12 Mths Ago
Quoted Rates
vs. Prev. Qtr
vs. 12 Mths Ago
-
$20.58
-
$19.88
-
$19.04
Current Events:
• Occidental Petroleum Corp is relocating up to 100
employees from Dallas to its Houston headquarters in an
effort to consolidate Dallas operations. This will result in
several floors becoming vacant in Occidental Tower, a 540
thousand square foot office tower at 5005 LBJ Freeway.
Occidental will continue to occupy roughly 20% of the
building.
• Triwest Plaza at 3030 Lyndon B Johnson Freeway was
purchased by Greenfield Partners. The 369,025 square
feet Class A office building is 77.3% leased and the largest
tenant, ClubCorp, renewed their lease on a long term basis.
• After having a successful Initial Public Offering in 2015,
Wingstop Restaurants Inc. expanded its lease at The
Crossings II by 12,000 square feet for a total of 37,651
square feet in the building.
• Occidental Tower/5005 Lyndon B Johnson Freeway –
228,122 SF
• The Crossings II – 5501 Lyndon B Johnson Freeway –
150,680 SF
• Three Galleria Tower – 13155 Noel Road – 123,372 SF
• Executive Center – 8330 Lyndon B Johnson Freeway –
120,647 SF
• Midtown Atrium – 5525 Lyndon B Johnson Freeway –
111,092 SF
28.5%
325,000
275,000
28.0%
225,000
27.5%
175,000
27.0%
125,000
26.5%
75,000
25,000
26.0%
(25,000)
25.5%
(75,000)
25.0%
24.5%
(125,000)
Q4
12
Q1
13
Q2
13
Q3
13
Q4
13
Q1
14
Absorption
Q2
14
Q3
14
Deliveries
Occidental Tower
• Aethon Energy signed a 23,536 SF lease at Lakeside Square
– Park Central
• Medoc Health Services signed a 22,560 SF lease at TriWest
Plaza
• Revenue Cycle Solutions signed a 22,331 SF lease at Lake
Highlands Tower
• Wingstop Restaurants, Inc signed a 11,881 SF lease at The
Crossings I
• The Crossings I & II– a 529,128 square feet of Class A & B
office property
• One Graystone Centre – a 302,707 square feet Class A office building
• One Valley View Place – a 98,701 square feet Class B office property
New Developments:
time. However, two have been proposed:
°° Park Tower @ Dallas Midtown – 376,870 SF °° Four Lincoln Centre – 375,000 SF
Q4
14
Q1
15
Vacancy
Q2
15
Q3
15
Q4
15
(175,000)
Fourth Quarter 2015
mid cities
Market Highlights
•
Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
12,442
21.6%
212,545
187,512
21.6%
75,500
10,340
21.5%
191,500
Delivered SF
vs. Prev. Qtr
Vs. 12 Mths Ago
Quoted Rates
vs. Prev. Qtr
vs. 12 Mths Ago
20,955
$20.92
149,000
$19.01
59,208
$18.82
Current Events
• Nashville-based Ryman Hospitality Properties Inc., owner
of the Gaylord Texan, announced that the property will get
a $120 million expansion. The expansion will add 300 more
guest rooms as well as 86,000 square feet of meeting space. Once completed, the Gaylord Texan will be the second
largest non-gaming convention center hotel in the United
States.
• The Arlington City Council has agreed to partner with the
Texas Rangers on a 100,000 square foot entertainment
complex and upscale hotel across the street from the
ballpark. The development will be built in Rangers Lot A at
the southwest corner of Nolan Ryan Expressway and East
Randol Mill Road.
• Granite Properties, Inc. broke ground on their new 160,000
SF Class A office building in Southlake. Set to be delivered
December 2016, the building will be six stories with
structured parking.
• Solana business park, recently purchased by the
Blackstone Group, has received roughly $60 million worth of
improvements. Among the improvements are an updated
color scheme, new way-finding signs, and a new parking
structure that will give Solana one of the largest parking
ratios in Dallas-Fort Worth.
• Keller Williams Southlake signed a 28,460 SF new lease at
Kimball Park.
• CareReview signed a 10,695 SF new lease at 2221 East
Lamar.
• Northstar Energy signed a 10,858 SF new lease at Copeland
Tower.
• TLCA Charter School signed a new 25,000 SF lease at The
Offices at Green Oaks.
1351 E Bardin Road – 113,000 SF Class B office building on 7.50 acres, currently 80.9% occupied with two (2) major
tenants in State Farm and BB&T
1112 E Copeland Road – 56,848 SF Class B office building
on 1 acre, the property is currently 55.4% leased
6815 Manhattan Boulevard – 55,000 SF Class B office
building on 1.01 acres, currently 55.4% leased
•
•
New Developments
• Granite Place, Southlake – 160,000 SF Class A office building
• Kimball Park, Southlake – 113,840 SF Class A office building
• The Vista at Solana – 379,898 SF
• The Terrace at Solana – 279,200 SF
• Trinity Building – 560,000 SF
• Centerpoint IV – 90,282 SF
• DFW Towers North – 47,788 SF
• DFW Towers South – 67,653 SF
• State National Center – 73,671 SF
• Arbors at Brookhollow – 45,797 SF
22.5%
200,000
150,000
22.0%
100,000
21.5%
50,000
21.0%
0
20.5%
(50,000)
20.0%
19.5%
(100,000)
Q4
12
Q1
13
Q2
13
Q3
13
Q4
13
Q1
14
Absorption
Q2
14
Q3
14
Deliveries
Granite Place
Deals in the Market
• 5201 Rufe Snow Drive– 200,084 SF Class B office call center
on 21.34 acres, the property is 100% leased through 2027
Q4
14
Q1
15
Vacancy
Q2
15
Q3
15
Q4
15
(150,000)
Fourth Quarter 2015
north fort worth
Market Highlights
Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
(9,371)
14.5%
19,900
384,670
14.1%
19,900
9,864
•
15.6%
•
407,214
Delivered SF
vs. Prev. Qtr
Vs. 12 Mths Ago
Quoted Rates
vs. Prev. Qtr
vs. 12 Mths Ago
-
$20.71
357,214
$21.50
•
154,063
$23.11
2601 Meacham
5401 North Beach Street – 457,628 SF Class B office
building on 40.84 acres, the property will be sold vacant
7001 Boulevard 26 – 102,072 SF Class B office building on
5.83 acres, currently 92.6% leased
North Richland Hills Town Hall, 7301 NE Loop 820 – 71,484
SF Class B office building on 5.076 acres, now vacant
The Hills, 6311-6361 Grapevine Highway – 299,281 SF, six
building Class B office park, currently 52% leased
•
New Developments
time
• Fossil Creek Business Park – 631,610 SF
• 5501 Alliance Gateway Freeway – 212,122 SF
• Heritage Commons II – 114,400 SF Sublease
• Hillwood Commons I – 133,825 SF
• 2601 Meacham Boulevard – 291,369 SF
19.0%
390,000
340,000
17.0%
290,000
15.0%
240,000
13.0%
190,000
140,000
11.0%
90,000
9.0%
40,000
Current Events
• Denton’s City Council has approved tax incentives for Buc-ee’s travel center at the corner of I-35W and Lillian
Miller Parkway. The developer will receive an estimated
$8.1 million in sales tax reimbursements. The current plan
for the location calls for a 52,000 square foot travel center,
96 gas pumps, and multiple pad sites for restaurants and
retail. • Champion’s Circle, a development by Fine Line Diversified
Development, occupies the rest of the SWQ of Highway 114
and Interstate 35W. The development has landed Tanger
Outlets and preliminary plans also show roughly 113 acres
set aside for big box retail. Acreage has been set aside for
a potential corporate office campus as well as Multifamily/
Mixed-Use. Currently the Churchill at Champions Circle
Apartments are under construction and set to deliver this
Summer. This complex will deliver 132 Class B apartment
units. 7.0%
5.0%
(10,000)
Q4
12
Q1
13
Q2
13
Q3
13
Q4
13
Q1
14
Absorption
Q2
14
Q3
14
Deliveries
Fossil Creek Business Park
• Charles Schwab leased approximately 130,199 SF at 2050
Roanoke.
Deals in the Market
• Vinnedge, 2100 N Main Street – 40,000 SF Class B office
building
Q4
14
Q1
15
Vacancy
Q2
15
Q3
15
Q4
15
(60,000)
Fourth Quarter 2015
PRESTON CENTER
Market Highlights
Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
U/C SF
vs. Prev. Qtr
(27,216)
9.3%
186,257
163,611
8.7%
186,257
(41,886)
8.7%
vs. 12 Mths Ago
190,000
Delivered SF
vs. Prev. Qtr
Vs. 12 Mths Ago
Quoted Rates
vs. Prev. Qtr
vs. 12 Mths Ago
-
$35.50
190,000
$35.89
-
$33.35
The Laurel
New Developments:
• 5960 Berkshire, Terraces at Douglas Center –
171,583 SF building with Houston-based Lionstone
Investments Inc. and Dallas-based PegasusAblon
• 8300 Douglas Avenue – 50,000 SF
• Berkshire Court/8411 Preston Road – 21,098 SF
• 8343 Douglas Avenue – 20,843 SF
• Sterling Plaza/5949 Sherry Lane – 20,144 SF
• Bluffview Towers East/3890 West Northwest Highway
– 18,719 SF
10.0%
200,000
9.5%
9.0%
150,000
8.5%
8.0%
100,000
7.5%
7.0%
50,000
6.5%
6.0%
0
5.5%
5.0%
Q4
12
Q1
13
Q2
13
Q3
13
Q4
13
Q1
14
Absorption
Q2
14
Q3
14
Deliveries
Current Events:
• Saint Michael and All Angels Episcopal Church are
in discussions with the City of Dallas regarding a
200,000 – 250,000 square foot office building the
Church wants to build adjacent to Preston Center. The city would need to grant a re-zoning of the
property because it is currently zoned as multi-family.
There has long been opposition to the possibility
of new development in the area and there is no
indication the City of Dallas is on board.
• A joint-venture was recently arranged by NorthMarq
Capital for a luxury development in Preston Center.
The multifamily development will be called Dallas’ The
Laurel and will include 164 luxury upscale units.
Terraces at Douglas Center
• Swank Capital signed an 8,946 SF lease at Preston
Commons.
• No buildings are actively being marketed at this time
Q4
14
Q1
15
Vacancy
Q2
15
Q3
15
Q4
15
(50,000)
Fourth Quarter 2015
RICHARDSON/PLANO
Market Highlights
Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
vs. Prev. Qtr
vs. 12 Mths Ago
400,184
17.1%
U/C SF
991,264
(340,163)
17.1%
1,382,264
146,168
16.7%
2,178,995
Delivered SF
vs. Prev. Qtr
Vs. 12 Mths Ago
Quoted Rates
vs. Prev. Qtr
vs. 12 Mths Ago
489,000
$21.32
-
$21.09
-
$20.06
• GuideIT signed a 17,249 SF lease at Bank of America Plano
Tower.
• Education Futures Management Company signed a 14,014
SF lease renewal at Promenade Tower.
HLC
•
Molina Healthcare signed a 11,350 SF lease at CityView
Deal
Tower.
• State Farm Campus – a 2,000,000 square feet Class A
Office Campus
New Developments:
• Allen Place I – 102,084 SF spec with Triad
• Legacy Central – 912,474 SF
• 2400 North Glenville Drive – 388,600 SF
• Building D/1011 Galatyn Parkway – 303,028 SF
• The Tower Lakeside Campus/2221 Lakeside Boulevard –
180,984 SF
• Turnpike Commons East Office Center 2/2200 E President
George Bush Highway – 177,597 SF
The Points at Waterview
25.0%
1,550,000
24.0%
23.0%
22.0%
1,050,000
21.0%
20.0%
Current Events:
• CREA Investments bought the 2929 NCX office building
in Richardson, located at North Central Expressway and
Renner Road. CREA is renovating the 85,000 square-foot
office building which is just west of State Farm Insurance’s
huge new regional campus at CityLine.
• An investment partnership headed by Steve Fithian and
Thomas K. Wilson has purchased The Parkway Business
Center at 2701 West Plano Parkway. The 113,299 square
foot office complex has a 29 percent vacancy and has
tenants including Republic Title of Texas, Wizetrade,
Patient-Physician Network and Teradyne.
• Stanton Road Capital, through its affiliate SRC Waterview
Owner, acquired The Points at Waterview, a 203,000 square
foot Class A office building. The property was 94% leased
at the time of acquisition.
• North Texas’s biggest new business campus is up for grabs.
State Farm Insurance plans to sell the 4-building regional
office campus in Richardson. They have sold and leased
back properties before. The 2 million square foot high-rise
on Bush Turnpike is just now nearing completion and is
planned to house almost 8,000 workers.
550,000
19.0%
18.0%
50,000
17.0%
16.0%
15.0%
Q4
12
Q1
13
Q2
13
Q3
13
Q4
13
Q1
14
Absorption
Q2
14
Q3
14
Deliveries
State Farm Campus
Q4
14
Q1
15
Vacancy
Q2
15
Q3
15
Q4
15
(450,000)
Fourth Quarter 2015
SOUTH FORT WORTH
Market Highlights
Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
30,241
8.7%
409,232
49,659
9.0%
409,232
87,842
9.4%
155,956
Delivered SF
vs. Prev. Qtr
Vs. 12 Mths Ago
Quoted Rates
vs. Prev. Qtr
vs. 12 Mths Ago
-
$23.06
40,266
$23.03
-
$20.58
3017 West 7th Street
New Developments
• 111 Boland – 40,226 RBA Delivered
• Westbend Two – 81,150 RBA Delivered
• Edwards Ranch Main – 170,982 RBA Under Construction
• Edwards Ranch A1 – 64,000 RBA Under Construction
• Edwards Ranch C1 – 82,602 RBA Under Construction
• West 7th & University – 54,848 RBA Under Construction
• 1000 Forest Park – 36,800 RBA Under Construction (First
Financial)
• Executive Place – 48,883 SF (35,648 Sublease SF)
• Westbend Two – 36,292 SF
• 111 Boland – 35,723 SF
• Western Place One – 22,152 SF (12,881 Garden Level SF)
• Summit Office Park - 11,718 SF
200,000
11.5%
11.0%
150,000
10.5%
100,000
10.0%
9.5%
50,000
9.0%
0
8.5%
(50,000)
8.0%
Current Events
• Chisolm Trail Parkway: Walton Group of Cos. has started
construction on the residential portion of Chisholm Trail
Ranch, a 625-acre master-planned community that will
include about 1,100 homes at Chisholm Trail Parkway and
McPherson Boulevard in far south Fort Worth.
• UT Southwestern: UT Southwestern announced it will build
the UT Southwestern Monty and Tex Moncrief Medical Center
near the Moncrief Cancer Institute. The first building on the
6.3 acre site at the intersection of Pennsylvania Avenue and
Main Street is scheduled to be completed by September
2016.
7.5%
Q4
12
Q1
13
Q2
13
Q3
13
Absorption
Q4
13
Q1
14
Q2
14
Q3
14
Deliveries
111 Boland
• Multatech renewed their 17,132 SF suite at One West 7th
• VLK Architects renewed their 16,478 SF space at One West 7th
• Smith and Nephew leased approximately 58,713 sf in
Clearfork’s Edward’s Ranch project that is currently under
construction.
Deals in the Market
• Overton Centre – 417,465 SF two (2) tower Class B office
property on 26.08 acres with site prepared for a third tower. The property is currently 92.4% leased and quoting $21.50/
SF + Electric.
Q4
14
Q1
15
Vacancy
Q2
15
Q3
15
Q4
15
(100,000)
Fourth Quarter 2015
stemmons
Market Highlights
Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
55,363
25.4%
-
34,175
26.8%
-
59,938
28.1%
-
Delivered SF
vs. Prev. Qtr
Vs. 12 Mths Ago
Quoted Rates
vs. Prev. Qtr
vs. 12 Mths Ago
-
$15.58
-
$15.49
-
$14.82
New Developments:
time. However, one has been proposed:
°° The Design District – 224,907 SF Class A office building
• The Tower/3000 Pegasus Park Drive – 593,985 SF
• Comerica Service Center/1508 West Mockingbird Lane –
142,600 SF
• The Connection at 8600/8600 Harry Hines Boulevard –
112,962 SF
• Riverbend 1221 River Bend Drive – 100,162 SF
• North Tower/8200 Brookriver Drive – 86,755 SF
30.0%
2626 West Mockingbird
130,000
29.0%
80,000
28.0%
27.0%
30,000
26.0%
(20,000)
25.0%
(70,000)
24.0%
23.0%
Q4
12
Q1
13
Q2
13
Q3
13
Q4
13
Q1
14
Absorption
Q2
14
Q3
14
Deliveries
Current Events:
• Scott Rohrman, a real estate developer whom has bought
over 40 properties in Deep Ellum, recently acquired an
orange-yellow three-story office and retail building located
at 2626 W Mockingbird Lane. Rohrman’s preference would
be to preserve the building but he has not confirmed that
proposition is economically practical.
• Dunhill Partners plans to develop a 22 story office building
that will be called the Design District Tower. This is part of
a legacy project that will also include a 22 story Virgin Hotel
with 45 condos on top as well as a 123 room Joi de Vivre
Hotel with 225 illume apartments on top.
The Design District
• Westlake Financial signed a 21,427 SF lease at Stemmons
Center.
• Brookhollow Place – a 127,495 square feet Class B Office
Building
• One Empire – a 84,101 square feet Class B Office Building
Q4
14
Q1
15
Vacancy
Q2
15
Q3
15
Q4
15
(120,000)
Fourth Quarter 2015
Uptown/Turtle Creek
Market Highlights
Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
(36,450)
11.0%
1,288,797
43,034
10.7%
871,330
14,475
11.3%
1,242,828
Delivered SF
vs. Prev. Qtr
Vs. 12 Mths Ago
Quoted Rates
vs. Prev. Qtr
vs. 12 Mths Ago
-
$36.28
-
$35.61
-
$34.37
Current Events:
• According to Jones Lang LaSalle’s annual “America’s Most
Expensive Streets” report, office space on McKinney Avenue
at $43.81 per square foot is almost twice as expensive as the
overall North Texas average.
• The landmark Crescent in Uptown Dallas is in the midst of a
renovations to modernize the property according to Austin
Arnold, Crescent Real Estate project manager. The iconic
gates will be removed to enable a more open, modern concept
that includes large glass windows for retail spaces that allow
patrons to see what is happening inside.
• Developer Lincoln Property Co., less than six months after
buying the high-profile corner of Woodall Rodgers Freeway
and Pearl Street in the Dallas Arts District, is breaking ground
on a 22 story office high-rise. This project, called the Union, is
expected to open in about 18 months.
• The law firm Vinson & Elkins will be leaving Downtown Dallas
for Uptown, where they will take the top three floors at the
Union.
• The Perot family recently purchased three acres in Turtle Creek
near their family offices. Ross Perot Jr. considers this to be the
“last great undeveloped site” in Turtle Creek.
• Construction began on High Street Residential’s M-Line Tower
subsequent to the October demolition of the Café Express
restaurant in Uptown Dallas. The restaurant will reopen in 2017
when the 20 story, 262 unit residential and retail luxury tower is
completed at 3200 McKinney Avenue.
• PricewaterhouseCoopers will be taking 200,000 square feet
in the Uptown Dallas development Park District. The office
and multifamily Trammel Crow Co and Metlife Inc. project is
expected to begin in January 2016 and be completed in late
2017.
• No buildings are actively being marketed at this time
New Developments:
• McKinney & Olive – 530,000 SF spec with Crescent Real Estate
• 1920 McKinney Avenue – 150,000 SF spec with Invesco
HLC
• 2620 Maple Avenue – 130,000 SF spec with Holt Lunsford
Deal
Commercial
• Crosstex Court/2501 Cedar Springs Road – 109,404 SF
• 2727 North Harwood Street – 65,676 SF
• The Centrum/3102 Oak Lawn Avenue – 64,851 SF
• Victory Plaza West/3090 Olive Street – 52,525 SF
• Parkside Tower/3500 Maple Avenue – 50,209 SF
13.5%
230,000
13.0%
180,000
12.5%
130,000
12.0%
80,000
11.5%
30,000
11.0%
(20,000)
10.5%
(70,000)
10.0%
Q4
12
Q1
13
Q2
13
Q3
13
Q4
13
Q1
14
Absorption
Q2
14
Q3
14
Deliveries
The Union
• Vinson & Elkins signed an 84,720 SF lease at The Union
• Weaver signed a 56,480 SF lease at the Union
• RewardStyle signed a 33,392 SF lease at the Centrum
• Streetlights Residential signed an 18,000 SF lease at the Union
• Balfour Beatty signed a 16,015 SF lease at Miyama Parkside
Q4
14
Q1
15
Vacancy
Q2
15
Q3
15
Q4
15
(120,000)
www.Holtlunsford.com
dallas • 5055 Keller springs, suite 300 • addison, texas 75001 • 972.241.8300
fort worth • 300 throckmorton, suite 550 • fort worth, texas 76102 • 817.710.1110

office market brief - Holt Lunsford Commercial

Transcription

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