{"id":1004734468,"date":"2024-11-15T04:46:48","date_gmt":"2024-11-15T12:46:48","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004734468"},"modified":"2024-11-18T07:04:48","modified_gmt":"2024-11-18T15:04:48","slug":"dallas-office-sales-activity-picks-up-pace","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/dallas-office-sales-activity-picks-up-pace\/","title":{"rendered":"Dallas Office Sales Pick Up the Pace"},"content":{"rendered":"\n

Despite some slowing metrics, the Dallas office sector holds steady. Sales in the metro in the past months increased, with the investment volume nearing $1.1 billion through the first three quarters of 2024, according to CommercialEdge data.<\/p>\n\n\n

\n
\"Exterior<\/a>
Enverra Real Estate Partners and Gulf Coast Western purchased Parkway Office Center North and South, a 230,000-square-foot office campus in Dallas. Image courtesy of Enverra Real Estate Partners<\/em><\/figcaption><\/figure><\/div>\n\n\n

Additionally, 11 office developments came online in Dallas during the same time frame, totaling more than 1.6 million square feet of space. The market\u2019s office vacancy rate, however, rose 390 basis points year-over-year, clocking in at 22.9 percent.<\/p>\n\n\n\n

Office-to-residential conversions remain a focal point for investors and office owners, especially given the sector’s fluctuating metrics. According to CommercialEdge\u2019s Conversion Feasibility Index<\/a>, a tool designed to evaluate the practicality of repurposing buildings, Texas markets may not rank among leading U.S. metros, but there is significant potential for this transformation across the nation.<\/p>\n\n\n\n

Dallas\u2019 sales volume ranks high nationally<\/h2>\n\n\n\n

Dallas\u2019 office investment volume<\/a> year-to-date as of September reached roughly $1.1 billion. The metro ranked fourth nationally, following Manhattan ($2.7 billion), Washington, D.C. ($2 billion) and the Bay Area ($1.8 billion).<\/p>\n\n\n

\n
\"Rendering<\/a>
NexPoint is working on the Texas Research Quarter innovation district, a 200-acre master plan that will consist of more than 4 million square feet of life science facilities. Image courtesy of NexPoint<\/em><\/figcaption><\/figure><\/div>\n\n\n

Assets in the Metroplex traded for $128 per square foot on average. Despite the figure being way below the $171 national average, sales metrics in the market remained consistent. Dallas\u2019 average price per square foot in the first half of the year clocked in at $127 per square foot, according to prior data<\/a>.<\/p>\n\n\n\n

Peer markets such as Austin ($379 per square foot), San Diego ($196 per square foot) and Phoenix ($174 per square foot) fared better, while Houston ($104 per square foot) was at the opposite end.<\/p>\n\n\n\n

In September, a joint venture between Enverra Real Estate Partners and Gulf Coast Western acquired the 230,000-square-foot<\/a> Parkway Office Center North and South in Dallas. The two-building campus\u2019 former lender, Principal Financial, sold its interest in the loan to the duo, foreclosing on the previous borrower.<\/p>\n\n\n\n

Construction pipeline outpaces national trends<\/h2>\n\n\n\n

At the end of September, The Metroplex had about 4 million square feet of office space under construction, accounting for 1.4 percent of total stock, above the 1.0 percent national rate. When factoring in projects in the planning stages to that figure, the market\u2019s share jumped to 6.2 percent.<\/p>\n\n\n\n

The metro lagged behind peer markets San Diego (4.2 percent) and Austin (3.6 percent), while Atlanta (1.0 percent) and Houston (0.7 percent) were at the other end of the spectrum.<\/p>\n\n\n\n

Earlier this year, the $4 billion life science Texas Research Quarter innovation district<\/a> in Plano, Texas, received developmental approvals from the Plano City Council, as well as a financial plan for a tax increment financing reinvestment zone. NexPoint is the developer of the project, which will see the addition of more than 3 million square feet of space.<\/p>\n\n\n\n

Completions in the Metroplex almost halve<\/h2>\n\n\n
\n
\"The<\/a>
Gensler completed the $50 million revamp of The Gild office complex, Fenway\u2019s 900,000-square-foot property in Dallas. Image by SquareFoot Photography, courtesy of Stream Realty Partners<\/em><\/figcaption><\/figure><\/div>\n\n\n

A total of 11 office properties came online in Dallas year-to-date as of September, totaling more than 1.6 million square feet. This accounts for 0.5 percent of the market\u2019s existing inventory, just under the 0.6 percent national figure. Year-over-year, office completions in the metro almost halved.<\/p>\n\n\n\n

Among peer markets, Atlanta (1.2 million square feet) and Houston (1.4 million square feet) trailed Dallas, while Austin (2.0 million square feet) and San Diego (2.7 million square feet) outpaced the Metroplex.<\/p>\n\n\n\n

In September, Fenway completed the renovation of The Gild<\/a>, an office campus consisting of two 20-story towers and two two-story concourse buildings. The upgrades of the 900,000-square-foot property amounted to $50 million.<\/p>\n\n\n\n

Vacancy rate well above the national average<\/h2>\n\n\n\n

Dallas\u2019 vacancy rate in September clocked in at 22.9 percent, considerably above the 19.5 percent national average. This also marks a 390-basis-point rise year-over-year, with return-to-office policies<\/a> failing so far.<\/p>\n\n\n

\n
\"Exterior<\/a>
Bank of America renewed its 533,799-square-foot lease at Hallmark Center I in Addison, Texas, for another 10 years. Image courtesy of CommercialEdge<\/em><\/figcaption><\/figure><\/div>\n\n\n

Among peer markets, the Metroplex had one of the highest vacancy rates and was followed by San Diego (18.5 percent), and Atlanta (20.5 percent). Markets with significantly larger vacancy rates were Austin (27.8 percent) and the Bay Area (25.3 percent).<\/p>\n\n\n\n

Earlier this year, Bank of America signed a 10-year lease renewal<\/a> for its 553,799-square-foot space at Hallmark Center I in Addison, Texas. Office Properties Income Trust owns the two-building campus completed in 1977 and 1997, managed by The RMR Group<\/p>\n\n\n\n

The Metroplex\u2019s listing rate during the same month clocked in at $30.64, slightly below the $32.89 national average. Miami ($52.87) and Austin ($45.99) led the South region.<\/p>\n\n\n\n

Dallas shared office space remains steady<\/h2>\n\n\n\n

Dallas-Fort Worth\u2019s shared space inventory as of September totaled almost 5.3 million square feet across 279 locations. This accounted for 1.8 percent of the market\u2019s total rentable office space, just below the 1.9 percent national rate.<\/p>\n\n\n\n

The market was on par with Houston and Phoenix, but surpassed the Bay Area (1.3 percent). Among the largest U.S. markets, Miami took the lead with 3.8 percent of shared office space. Regus had the largest share of coworking space in the Metroplex, about 585,000 square feet, followed by Lucid Private Offices (442,627 square feet) and Cado (274,500 square feet).<\/p>\n","protected":false},"excerpt":{"rendered":"

The Metroplex ranked fourth nationally, according to CommercialEdge.<\/p>\n","protected":false},"author":3355,"featured_media":1004728981,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21784,1586,21782,22251,21783,52420,21742,51973],"tags":[51047,50674],"class_list":["post-1004734468","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-brokerage","category-dallas","category-development","category-in-focus","category-investment","category-market-updates","category-latest","category-southwest","tag-marketupdate","tag-commercialedge"],"acf":[],"yoast_head":"\nDallas Office Sales Pick Up the Pace - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"The Metroplex registered about $1.1 billion in investment volume year-to-date as of September, according to CommercialEdge.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/dallas-office-sales-activity-picks-up-pace\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Dallas Office Sales Pick Up the Pace\" \/>\n<meta property=\"og:description\" content=\"The Metroplex registered about $1.1 billion in investment volume year-to-date as of September, according to CommercialEdge.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/dallas-office-sales-activity-picks-up-pace\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2024-11-15T12:46:48+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-11-18T15:04:48+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/09\/pc1-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"751\" \/>\n\t<meta property=\"og:image:height\" content=\"563\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Vicentiu Fusea\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/dallas-office-sales-activity-picks-up-pace\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/dallas-office-sales-activity-picks-up-pace\/\",\"name\":\"Dallas Office Sales Pick Up the Pace - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/dallas-office-sales-activity-picks-up-pace\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/dallas-office-sales-activity-picks-up-pace\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/09\/pc1-1.jpg\",\"datePublished\":\"2024-11-15T12:46:48+00:00\",\"dateModified\":\"2024-11-18T15:04:48+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/6f90c90d1e85956f06679ddabc844412\"},\"description\":\"The Metroplex registered about $1.1 billion in investment volume year-to-date as of September, according to CommercialEdge.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/dallas-office-sales-activity-picks-up-pace\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/dallas-office-sales-activity-picks-up-pace\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/dallas-office-sales-activity-picks-up-pace\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/09\/pc1-1.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/09\/pc1-1.jpg\",\"width\":751,\"height\":563,\"caption\":\"The two buildings will undergo extensive renovations. 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