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February 19, 2014
Behind the Deal: Overton Centre Spec
After making $3M in capital improvements to the 448k SF Overton Centre since buying the tower in 2012, TLC Urban is now in the initial phases of laying out the 125k to 180k SF Class-A spec office tower in southwest Fort Worth. And you thought planning your Saturday night around watching UNT's Johnny Quinn compete in the bobsled was time-consuming.
Holt Lunsford Commercial's Matt Carthey (snapped, he's the one who's not a map) is managing and leasing the existing two-tower project at 4100 and 4150 International Plaza in Fort Worth. Matt tells us the big story is the third tower, which will be at the northeast corner of the new Chisholm Trail Parkway (a connector from downtown Fort Worth to Cleburne, which is scheduled to open later this year) and I-20. It will be the first new Class-A office tower along the CTP, Matt says.
Matt says the new tower (rendered here) could be available as early as Q2 '15 with a lead tenant inked. The size will largely depend on pre-leasing, he says. The building is being tentatively designed with 23k SF floor plates, which could be used by a single occupant or multiple tenants (if they agree to coexist without any intra-office shenanigans). The main driving force of the Class-A project is the CTP. The toll road is opening up a market that hasn't existed before, Matt says. The two existing towers are 95% leased and feature renovated lobbies, common areas, restrooms, modernization of elevators, and deli upgrades. TLC Urban purchased Overton Centre in May 2012.
Cushman Study: Bargains Galore in Dallas CBD Office Space
Rents in the Dallas CBD are pretty darn cheap, when you compare them to the world's top 123 global markets. We rank 81st, according to a new Cushman & Wakefield report. While the Dallas CBD is inexpensive by worldwide standards, rents continue to increase with overall asking rents in Class-A office properties rising 4.5% in 2013, placing Dallas' CBD at 20th out 71 of nationally, says Cushman & Wakefield's DFW market leader Steve Everbach. Several large lease commitments were made in 2013, including Santander Consumer Finance (370k SF), KPMG (160k SF), and Jackson Walker (104k SF).
Steve says many leases signed are resulting in the companies taking less space. The trend of companies lowering their average SF/employee is expected to continue in the years ahead as they seek ways to use real estate more efficiently, he tells us. Despite this trend, continued strong demand is expected in Dallas during 2014 as the economy continues to grow. As a result of the economic strength, job growth will continue and vacancy rates are expected to drop and rents to increase. Other local drivers for the increase in demand in the CBD are revitalization projects like Klyde Warren Park (pictured), the AT&T Performing Arts Center, and the new convention center hotel, all totaling over $500M in new investment, Steve says.
Four Texas Cities Among Fastest Growing in US
We don't need Texas Motor Speedway to know we're fast, but we'll take the acclaim from Forbes, which named Dallas as the fourth fastest-growing city in the US. Also on the list are Austin at No. 1 (for the fourth consecutive year), Houston at No. 10, and San Antonio at No. 20. One big reason Forbes picked us: the state's strong population growth in 2013 and sub-6%unemployment. Forbes says Dallas' projected growth rate of 2.08% for 2014 is pretty good, and deemed the local economy's year-over-year growth rate a healthy 3.57%.
Big D's commercial real estate is stepping up to meet the growth; the 22-story 167k SF Frost Tower broke ground in December; KDC broke ground last summer on CityLine; Hall Office Park is adding a new building in Frisco; and developer Craig Hall started the 18-story KMPG Plaza at Hall Arts in downtown. Granite also has a new tower along the Tollway (where many others have been started, including a Trammell Crow building), and there's the Dallas Cowboys World HQ in Frisco and the 240-acre $2B mixed-use development called Legacy West. (Just remember, kids, you can't play with shovels if you don't bring enough for everyone.)
Some People Want to Fill the World with Silly Love Songs
For Valentine's Day, we asked readers for their favorite love song lyrics and we chose a winner at random: Seale Realty Advisors' Alice Seale. Her favorite kicks it old school with the Beatles' Love Me Do. (Can't go wrong with a classic.) For her effort at planting that catchy tune in our head for the rest of the day, she's been awarded a pair of tickets to the Bisnow DFW Senior Living and Assisted Living Summit on Feb. 26 at the Westin Galleria Dallas. You don't have to win a contest to reserve your space; register here.