TEXAS SIZED SPACE
Although employment is expected to increase in Dallas by mid-2010, companies will continue to take a conservative approach to expanding or moving operations, says Grubb’s Texas executive managing director Moody Younger. Those with the ability to expand or relocate will seek longer term leases to lock low rates and concessions in place, he says. Grubb’s senior VP Russ Johnson hopes some of those relocating will consider Mercer Crossing. The 1000-acre project west of I-35 at 635 and Luna has 1.8M SF of existing office buildings including Fenton Centre, here, which has a 130k SF block of contiguous space available.
Grubb’s office leasing team: Russ, Kathy Permenter, Chris Wright,Sean Dalton and Heather Shover. We missed Noreen Mehdi(whose version of working required less coffee). Kathy says the firm represents about 7M SF in DFW. She tells us, as of late, Las Colinas and Uptown have been active markets and the LBJ corridor has quality space that is drawing interest. When she can sneak away, she likes to travel with her family (which includes three 9th graders). Spring break is next and if the kids have their way, it'll be some place warm, she says.
Mercer Crossing’s Browning Place, above, has 115k SF in contiguous space available. Moody says he anticipates about 462k SF of positive absorption in 2010. Class A rental rates are anticipated to average $23.61 per SF per year and Class B rental rates are predicted to average $18 per SF per year. His office outlook: the coming year presents a window of opportunity for tenants to expand or relocate at favorable rates.