Market Insights Dallas/Fort Worth 3Q 2020 - OFFICE
Bradford Commercial Real Estate Services 3100 McKinnon Street, Suite 400 Dallas, Texas 75201 DALLAS-FORT WORTH OFFICE MARKET INSIGHTS 4Q2019 Table of Contents
BRADFORD DALLAS-FORT WORTH OFFICE TEAM 1
DALLAS - FORT WORTH OVERALL MARKET INSIGHT 2
SUBMARKET EXPERTISE • Central Expressway • Dallas CBD • East Dallas 3 • Far North Dallas • Fort Worth CBD • Las Colinas • LBJ Freeway • Mid Cities • Preston Center • Richardson Plano • Stemmons • Uptown-Turtle Creek
The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. 1 DFW OFFICE COVERAGE BinformedOFFICE MARKET EXPERTS
Melanie Hughes Richmond Collinsworth Erik Blais Jared Laake Senior Vice President First Vice President Vice President Vice President 972.776.7046 972.776.7041 817.921.8179 972.776.7045 Dallas Dallas Fort Worth Dallas
Susan Singer, CCIM Paul Richter Shane Benner Executive Vice President Vice President Vice President Brokerage Services 972.776.7036 817.921.8174 972.776.7043 Dallas Fort Worth Dallas
• Bradford Corporate Office
• Bradford Field Offices Bret Cooper Elizabeth Robertson Kyle Espie Market Director Market Director Senior Associate 972.776.7035 972.776.7199 972.776.7070 Dallas Dallas Dallas
2 3 Existing Inventory Vacancy Delivered Inventory Under Construction Quoted Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Rates Central Expressway Office Vacancy Central Expressway Office Net Absorption Construction 20.0% 2017 Q2 96 12,097,241 1,417,173 11.7% (5,735) 0 0 0 0 $ 23.41 150,000 2017 Q3 96 12,097,241 1,397,758 11.6% 19,415 0 0 0 0 $ 24.27 18.0% 100,000 2017 Q4 96 12,097,241 1,460,232 12.1% (62,474) 0 0 0 0 $ 23.80 16.0% Existing Inventory Vacancy Delivered Inventory Under Construction 50,000 2018 Q1 96 12,097,241 1,691,523 14.0% (231,291) 0 0 0 Quoted 0 $ 24.62 14.0% Period Net Absorption Under 0 # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Rates Central Expressway Office Vacancy Central Expressway Office Net Absorption 2018 Q2 96 12,097,241 1,636,233 13.5% 55,290 0 0 Construction0 0 $ 24.21 12.0% 20.0% (50,000) 20172018 Q2 Q3 9696 12,097,24112,097,2411,417,1731,747,19111.7% 14.4% (5,735) (110,958)0 0 0 0 0 0 $ 23.410 $ 24.64 10.0% 150,000 2017 Q3 96 12,097,241 1,397,758 11.6% 19,415 0 0 0 0 $ 24.27 18.0% (100,000) 2018 Q4 96 12,097,241 1,752,961 14.5% (5,770) 0 0 0 0 $ 24.56 8.0% 100,000 2017 Q4 96 12,097,241 1,460,232 12.1% (62,474) 0 0 0 0 $ 23.80 16.0% (150,000) 2019 Q1 96 12,097,241 1,611,029 13.3% 141,932 0 0 0 0 $ 24.19 6.0% 50,000 CENTRAL EXPRESSWAY2018 Q1 96 12,097,241 1,691,523 14.0% (231,291) 0 0 0 0 $ 24.62 14.0% 2019 Q2 96 12,097,241 1,644,301 13.6% (33,272) 0 0 0 0 $ 24.87 0 (200,000) 2018 Q2 96 12,097,241 1,636,233 13.5% 55,290 0 0 0 0 $ 24.21 12.0% 4.0% (50,000) (250,000) OFFICE OVERALL MARKET INSIGHTS 20182019 Q3 Q3 9696 12,097,24112,097,2411,747,1911,718,37014.4% 14.2%(110,958) (74,069)0 0 0 0 0 0 $ 24.640 $ 25.28 10.0% 2.0% SUBMARKET2019 Q4 96 12,097,241 1,735,143 14.3% (16,773) 0 0 1 30,000 $ 25.28 (100,000) (300,000) 2018 Q4 96 12,097,241 1,752,961 14.5% (5,770) 0 0 0 0 $ 24.56 8.0% 0.0% (same criterias as prior market reports) 2020 Q1 96 12,097,241 1,800,256 14.9% (65,113) 0 0 1 30,000 $ 25.05 (150,000) 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2019 Q1 96 12,097,241 1,611,029 13.3% 141,932 0 0 0 0 $ 24.19 6.0% 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 DFW Office Markets (A, B, C) 20192020 Q2 Q2 9696 12,097,24112,097,2411,644,3011,881,59813.6% 15.6%(33,272) (81,342)0 0 0 0 0 1 $ 24.8730,000 $ 24.70 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3(200,000)Q4 Q1 Q2 Q3 Binformed 4.0% 20192020 Q3 Q3 9696 12,097,24112,097,2411,718,3702,157,39114.2% 17.8%(74,069) (275,793)0 0 0 0 0 1 $ 25.2830,000 $ 24.60 (250,000) Existing Inventory Vacancy Delivered Inventory Under Construction 2.0% Net Quoted 2019 Q4 96 12,097,241 1,735,143 14.3% (16,773) 0 0 1 30,000 $ 25.28 (300,000) Period Under 0.0% # Bldgs Total RBA Vacant SF Vacant % Absorption # Bldg Delivered # Bldgs Rates Overall DFW Office Vacancy Overall DFW Office Net Absorption 2020 Q1 96 12,097,241 1,800,256 14.9% (65,113) 0 0 1 30,000 $ 25.05 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Construction Central Expressway Overview 2017 2017 2017 2018 2018 2018Central2018 2019 2019Expressway2019 2019 2020 2020Office2020 Quoted RatesQ2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2CentralQ3 Q4 Q1ExpresswayQ2 Q3 Office Construction 2017 Q2 21.5% 2020 Q2 96 12,097,241 1,881,598 15.6% (81,342) 0 0 1 30,000 $ 24.70 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2,723 263,606,310 49,035,384 18.6% (173,476) 3 78,140 53 8,222,740 $ 20.62 2,000,000 21.0% The Central Expressway Submarket runs Absorption vs Previous Qtr vs 12 Months Ago $25.50 2017 Q3 2,731 264,367,719 48,495,401 18.3% 1,301,392 8 761,409 50 9,077,027 $ 20.85 1,500,000 2020 Q3 96 12,097,241 2,157,391 17.8% (275,793) 0 0 1 30,000 $ 24.60 10,000,000 20.5% along the North Central Expressway, with 2017 Q4 2,747 266,048,583 49,651,083 18.7% 510,542 16 1,680,864 36 7,538,213 $ 20.89 1,000,000 (275,793) -81,342 -74,069 9,000,000 2018 Q1 2,756 268,088,364 49,957,155 18.6% 1,748,349 9 2,039,781 31 6,038,657 $ 20.97 20.0% 500,000 its southernmost point starting at the Dallas Vacancy vs Previous Qtr vs 12 Months Ago Central Expressway $25.00 Office Quoted Rates Central Expressway Office Construction 2018 Q2 2,766 269,767,432 51,497,630 19.1% (412,177) 9 1,622,598 25 4,720,699 $ 21.00 19.5% 0 CBD and its northernmost point ending Absorption17.8% vs Previous15.6% Qtr vs 12 Months Ago14.2% $25.50 8,000,000 2018 Q3 2,774 270,765,465 52,048,838 19.2% 446,825 8 998,033 21 4,010,989 $ 21.19 19.0% 10,000,000 (500,000) at the LBJ Freeway. Virtually all of the (275,793)U/C SF -81,342 -74,069 $24.50 7,000,000 2018 Q4 vs Previous Qtr vs 12 Months Ago 2,776 271,220,922 52,451,115 19.3% 53,180 2 455,457 23 3,913,103 $ 21.24 18.5% (same criterias as prior market reports) (1,000,000) Vacancy $25.00 9,000,000 submarket’s inventory runs along US 75. vs Previous Qtr vs 12 Months Ago 6,000,000 2019 Q1 2,784 272,387,577 52,136,740 19.1% 1,481,030 8 1,166,655 18 2,902,340 $ 21.22 18.0% (1,500,000) 30,000 30,000 0 8,000,000 DFW Office Markets (A, B, C) The submarket has a heavy concentration 17.8% 15.6% 14.2% $24.00 2019 Q2 2,789 272,680,105 51,693,520 19.0% 730,688 5 292,528 19 2,989,880 $ 21.36 (2,000,000) Delivered SF vs Previous Qtr vs 12 Months Ago 5,000,000 17.5% U/C SF vs Previous Qtr vs 12 Months Ago $24.50 7,000,000 2019 Q3 2,792 273,175,466 53,014,424 19.4% (825,543) 3 495,361 20 3,035,102 $ 21.55 of financial services, telecom, and tech 17.0% (2,500,000) 0 0 0 Existing Inventory Vacancy Delivered Inventory Under Construction 30,000 30,000 0 6,000,000 4,000,000 2019 Q4 2,797 274,622,984 53,341,993 19.4% 1,119,949 5 1,447,518 17 2,086,584 $ 21.38 (3,000,000) Net firms.Quoted As a whole, it offers a large amount $23.50 16.5% DeliveredQuoted Rates SF $24.00 2020 Q1 2,799 274,673,484 54,106,602 19.7% (714,109) 2 50,500 16 2,251,200 $ 21.65 Period 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Under vs Previousvs Previous Qtr Qtr vs 12 Monthsvs 12 Ago Months Ago 5,000,000 3,000,000 2017 2017 2017 2018 2018 2018# Bldgs2018 2019 2019Total2019 RBA2019 2020Vacant2020 2020 SF Vacant % AbsorptionQ2 Q3 Q4 Q1# BldgQ2 Q3 Q4DeliveredQ1 Q2 Q3 Q4# BldgsQ1 Q2 Q3 of investment-gradeRates property—about half Overall DFW Office Vacancy Overall DFW Office Net Absorption 2020 Q2 2,800 274,893,484 55,284,584 20.1% (957,982) 1 220,000 18 2,247,200 $ 21.65 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Construction 025 0 25 0 25 4,000,000 2,000,000 of the submarket’s RBA is 21.5%rated as 4 & 5 $23.50 $23.00 2020 Q3 2,807 275,387,427 58,389,973 21.2% (2,611,446) 7 493,943 11 1,753,257 $ 21.72 2017 Q2 2,723 263,606,310 49,035,384 18.6% (173,476) 3 78,140 53 8,222,740 $ 20.62 Quoted Rates vs Previous Qtr vs 12 Months Ago 3,000,000 Star. 2,000,000 1,000,000 21.0% 25 25 25 2017 Q3 2,731 264,367,719 48,495,401 18.3% 1,301,392 8 761,409 50 9,077,027 $ 20.85 $23.00 2,000,000 Central Expressway Vital Statistics1,500,000 $22.50 0 Overall DFW Office Quoted Rental Rates Overall DFW Office Construction 20.5% 2017 Q4 2,747 266,048,583 49,651,083 18.7% 510,542 16 1,680,864 36 7,538,213 Though$ 20.89 vacancies in Central Expressway 1,000,000 1,000,000 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 DFW Office Statistics by Market 200,000 20.0% $22.50 $22.00 2018 Q1 2,756 268,088,364 49,957,155 18.6%10,000,0001,748,349 9 2,039,781 31 6,038,657 $ 20.97 20.0% Central Expressway Vital Statistics 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Existing Vacancy Net Under Quoted have risen in recent quarters, at 16.7% they 500,000 $22.00 Market Deliveries $21.80 9,000,000 150,000 18.0% 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Inventory Absorption Const SF Rates 2018 Q2 2,766 269,767,432 51,497,630 19.1% (412,177) 9 1,622,598 25 4,720,699 $ 21.00 19.5% 200,000 20.0% 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020Q22020Q3 2020Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 # Blds Total RBA Direct SF Total SF 8,000,000 are still in line with metro average. Annual 0 $22.00 Delivered Under Construction $21.60 150,000100,000 18.0% 16.0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Central Expressway 96 12,097,241 2,157,391 17.8% -275,793 0 30,000 $24.60 2018 Q3 2,774 270,765,465 52,048,838 19.2%7,000,000 446,825 8 998,033 21 4,010,989 rent$ growth 21.19 has remained19.0% positive at 0.9%. 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 $21.40 100,00050,000 (500,000) 16.0% 14.0% Delivered Under Construction Dallas CBD 79 28,710,712 8,245,109 28.7% -552,361 0 0 $21.15 6,000,000 The submarket is usually heavily traded, Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 $21.20 2018 Q4 2,776 271,220,922 52,451,115 19.3% 53,180 2 455,457 23 3,913,103 $ 21.24 18.5% 50,0000 (1,000,000) 14.0% 12.0% East Dallas 171 7,379,385 1,544,854 20.9% -164,750 0 684,116 $18.29 5,000,000 2019 Q1 2,784 272,387,577 52,136,740 19.1%4,000,0001,481,030 8 1,166,655 18 2,902,340 and $volume 21.22 has picked up in the past 12 0 12.0% Far North Dallas 450 51,174,986 10,898,970 21.3% -146,086 171,334 258,892 $24.90 $21.00 18.0% (50,000) (1,500,000) 10.0% 3,000,000 months, with about $159 million in sales. (50,000) 10.0% Ft Worth CBD 52 8,803,234 1,551,924 17.6% -166,969 0 0 $25.94 $20.80 2019 Q2 2,789 272,680,105 51,693,520 19.0% 730,688 5 292,528 19 2,989,880 $ 21.36 (100,000) (2,000,000) 8.0% 2,000,000 17.5% (100,000) 8.0% Las Colinas 280 35,962,870 7,187,071 20.0% -525,084 0 27,475 $20.77 $20.60 2019 Q3 2,792 273,175,466 53,014,424 19.4% (825,543) 3 495,361 20 3,035,102 A significant$ 21.55 portion of recent volume (150,000) 6.0% 1,000,000 17.0% (150,000) (2,500,000) 6.0% $20.40 was due to the sale of the 1.35-million-SF (200,000) 4.0% LBJ Freeway 161 21,273,863 4,804,511 22.6% -201,400 0 0 $20.39 2019 Q4 2,797 274,622,984 53,341,993 19.4% 01,119,949 5 1,447,518 17 2,086,584 $ 21.38 (200,000) 4.0% 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 (3,000,000) Lewisville/Denton 149 7,076,153 998,346 14.1% -9,459 0 122,000 $18.76 $20.20 Cityplace Tower, the largest16.5% asset in the (250,000) 2.0%2017 2017 20172.0%2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 Q1 2,799 274,673,484 54,106,602 19.7% (714,109)Q2 Q3 Q4 Q1 2Q2 Q3 Q4 50,500Q1 Q2 Q3 Q4 16Q1 Q2 Q3 2,251,200 $ 21.65 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Mid-Cities 389 21,999,510 5,693,123 25.9% -73,358 100,609 0 $18.57 $20.00 (300,000) 0.0%Q2 Q3 0.0%Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 submarket. Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 North Fort Worth 43 2,441,402 177,073 7.3% 20,122 0 48,000 $20.22 2017 201720202017 Q22018 2018 20182,8002018 2019 2019274,893,4842019 2019 202055,284,5842020 2020 20.1% (957,982) Delivered1 Under 220,000Construction 18 2,247,200 $ 21.65 201720172017201720172017201820182018 2018 2018201820192018201920192019201920192019202020192020 2020 2020 2020 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Northeast Ft Worth 48 3,520,727 601,164 17.1% 11,347 0 0 $17.46 2020 Q3 2,807 275,387,427 58,389,973 21.2% (2,611,446) 7 493,943 11 1,753,257 $ 21.72 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Net Absorption Delivered Vacant % Preston Center 52 4,847,626 646,618 13.3% -11,655 0 0 $29.52 Leasing Net Absorption Delivered Vacant % Richardson/Plano 361 30,478,619 6,365,871 20.9% -93,188 100,000 48,000 $18.41 Fundamentals in Central Expressway are South Ft Worth 195 10,560,270 1,515,284 14.3% -146,881 0 0 $21.63 on a firm footing. At 16.7%, vacanciesOverall have DFW Office Quoted Rental Rates Overall DFW Office Construction Southwest Dallas 79 3,403,365 338,569 9.9% 23,829 0 0 $15.42 DFW Office Statistics by Market trended well below both the metro average $22.00 10,000,000 Stemmons Freeway 109 12,436,222 3,234,747 26.0% -70,453 0 0 $17.22 Existing Vacancy Net Under Quoted and the submarket’s historical average for Uptown/Turtle Creek 93 13,221,242 2,429,348 18.4% -229,307 0 656,774 $31.00 Market Deliveries $21.80 9,000,000 Inventory# Blds Total RBA Direct SF Total SF Absorption Const SF Rates a few years due to a lack of new supply and generally steady absorption in existing stock. In early 2020, the 11 story ACS Totals 2,807 275,387,427 58,389,973 21.2% -2,611,446 371,943 1,875,257 $21.43 $21.60 8,000,000 Central Expressway 96 12,097,241 2,157,391 17.8% -275,793 0 30,000 $24.60 building was demolished to make way for a massive $2.5 billion mixed-use development. 7,000,000 $21.40 Dallas CBD 79 28,710,712 8,245,109 28.7% -552,361 0 0 $21.15 6,000,000 $21.20 East Dallas 171 7,379,385 1,544,854 20.9% -164,750 0 684,116 $18.29 The submarket has experienced stable leasing activity the first half of 2020. As of early September there has5,000,000 been 79 new * Lewisville Denton doesn't have a tab leases signed totaling 173,000 SF. There have been two leases over 10,000 SF. The largest being a 22,500 SF4,000,000 lease in Rambler Far North Dallas 450 51,174,986 10,898,970 21.3% -146,086 171,334 258,892 $24.90 $21.00 Park the second largest was a 10,700 SF lease singed in August at The Hill. 3,000,000 Ft Worth CBD 52 8,803,234 1,551,924 17.6% -166,969 0 0 $25.94 $20.80 2,000,000 $20.60 Las Colinas 280 35,962,870 7,187,071 20.0% -525,084 0 27,475 $20.77 One large move out/bankruptcy contributed to the lion’s share of negative net absorption in 2019. The 199,0001,000,000 SF Walnut Hill LBJ Freeway 161 21,273,863 4,804,511 22.6% -201,400 0 0 $20.39 Medical Center, when it opened, $20.40 was among the nation’s most upscale hospitals, featuring chef-cooked meals, private0 rooms, Lewisville/Denton 149 7,076,153 998,346 14.1% -9,459 0 122,000 $18.76 $20.20 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 and state-of-the-art technology for doctors. As of early 2020, the building was still 100% vacant. Excluding that “shock”Q2 toQ3 theQ4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Mid-Cities 389 21,999,510 5,693,123 25.9% -73,358 100,609 0 $18.57 market, the area overall has $20.00 been moving in the right direction. With supply-side pressure unlikely, the biggest risk for this North Fort Worth 43 2,441,402 177,073 7.3% 20,122 0 48,000 $20.22 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Delivered Under Construction submarket is the prospect of tenantsQ2 jumpingQ3 Q4 shipQ1 forQ2 propertiesQ3 Q4 inQ1 premierQ2 Q3urbanQ4 submarketsQ1 Q2 Q3 like Uptown/Turtle Creek and Northeast Ft Worth 48 3,520,727 601,164 17.1% 11,347 0 0 $17.46 Preston Center or suburban submarkets like Upper Tollway/West Plano. Of the 14.6 millionSF in the submarket 7.4 million SF Preston Center 52 4,847,626 646,618 13.3% -11,655 0 0 $29.52 is considered 4 and 5 Star assets. The largest being the 1.3 million SF, 43 story, Cityplace Tower. Richardson/Plano 361 30,478,619 6,365,871 20.9% -93,188 100,000 48,000 $18.41 South Ft Worth 195 10,560,270 1,515,284 14.3% -146,881 0 0 $21.63 Southwest Dallas 79 3,403,365 338,569 9.9% 23,829 0 0 $15.42 Movers & Shakers Largest Vacancies: Cityplace Tower – 203,254 sf Stemmons Freeway 109 12,436,222 3,234,747 26.0% -70,453 0 0 $17.22 Tenant SF Building Social Security Admin 27,200 10824 N Central Expressway Walnut Hill Medical Center – 199,182 sf Uptown/Turtle Creek 93 13,221,242 2,429,348 18.4% -229,307 0 656,774 $31.00 Valiant Residential 12,766 6060 N Central Expressway 8750 NorthPark Central – 132,037 sf Totals 2,807 275,387,427 58,389,973 21.2% -2,611,446 371,943 1,875,257 $21.43 USMD 9,980 2210 Live Oak St
The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy thereof. The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy 4 The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. 5 * Lewisville Denton doesn't have a tab
Central Expressway
Central Expressway
DFW Overall Office
DFW Overall Office Existing Inventory Vacancy Delivered Inventory Under Construction Existing Inventory QuotedVacancy Delivered Inventory Under Construction Period Net Absorption Quoted Period Under Net Absorption Dallas CBD Office VacancyUnder Dallas CBD Office Net Absorption # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs# Bldgs Total RBA Vacant RatesSF Vacant % # Bldg Delivered # Bldgs Rates Fort Worth CBD Office Vacancy Fort Worth CBD Office Net Absorption Construction Construction 2017 Q2 77 28,345,056 7,522,780 26.5% 26,826 0 0 1 261,537 $ 21.05 29.0% 20.0% 2017 Q2 51 8,488,355 1,107,422 13.0% 106,602 0 0 1 314,879 $ 25.28 300,000 200,000 28.5% 2017 Q3 77 28,345,056 7,605,817 26.8% (83,037) 0 2017 Q30 51 1 8,488,355261,537 1,116,194$ 21.0213.1% (8,772) 0 0 1 314,879 $ 25.35 18.0% 200,000 150,000 2017 Q4 77 28,345,056 7,714,343 27.2% (108,526) 0 2017 Q40 51 2 8,488,355365,656 1,118,754$ 21.0013.2% (2,560)28.0% 0 0 1 314,879 $ 25.68 16.0% Existing Inventory Vacancy Delivered Inventory Under ConstructionExisting Inventory Vacancy Delivered Inventory Under Construction 100,000 2018 Q1 78 28,606,593 7,709,510 27.0% 266,370 1 2018261,537 Q1 51 1 8,488,355Quoted104,119 1,147,232$ 21.3213.5% (28,478)27.5% 0 0 1 Quoted314,879 $ 25.48 14.0% 100,000 Period Net Absorption Period Under Net Absorption Under 0 Fort Worth CBD Office Net Absorption # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs # Bldgs Total RatesRBA Vacant SF Vacant % Dallas# BldgCBD OfficeDelivered Vacancy# Bldgs Rates Dallas CBD OfficeFort Worth Net Absorption CBD Office Vacancy 2018 Q2 78 28,606,593 7,707,841 26.9% 1,669 0 2018 Q20 Construction52 1 8,803,234104,119 1,264,766$ 21.0514.4% 197,34527.0% 1 314,879 Construction0 0 $ 27.45 12.0% 50,000 (100,000) 20172018 Q2 Q3 77 78 28,345,05628,606,5937,522,7807,616,87326.5% 26.6%26,826 90,968 0 00 20171 Q20 261,53751 1 8,488,355$ 21.05104,1191,107,422 $ 13.0%20.6329.0% 106,602 0 0 1 314,879 $ 25.28 20.0% 2018 Q3 52 8,803,234 1,417,322 16.1% (152,556)26.5% 0 0 0 0 300,000 $ 27.82 10.0% 200,000 0 20172018 Q3 Q4 77 78 28,345,05628,606,5937,605,8177,317,66626.8% 25.6%(83,037) 299,2070 00 20171 Q30 261,53751 1 8,488,355$ 21.02104,1191,116,194 $ 13.1%20.6928.5% (8,772) 0 0 1 314,879 $ 25.35 18.0% (200,000) 2018 Q4 52 8,803,234 1,432,621 16.3% (15,299)26.0% 0 0 0 0 200,000 $ 26.69 8.0% 150,000 2017 Q4 77 28,345,056 7,714,343 27.2% (108,526) 0 0 20172 Q4 365,65651 8,488,355$ 21.001,118,754 13.2%28.0% (2,560) 0 0 1 314,879 $ 25.68 16.0% (300,000) (50,000) 2019 Q1 79 28,710,712 7,444,580 25.9% (22,795) 1 2019104,119 Q1 52 0 8,803,2340 1,534,625$ 20.1117.4% (102,004) 0 0 0 0 100,000 $ 26.49 DALLAS CBD2018 Q1 78 28,606,593DISTRICT7,709,510 27.0% 266,370 1 261,537 20181 Q1 104,11951 FORT8,488,355$ 21.321,147,232 13.5% 27.5%WORTH(28,478) 25.5%0 0 CBD1 314,879 $ 25.48 14.0% 6.0% 100,000 (100,000) 2019 Q2 79 28,710,712 7,467,533 26.0% (22,953) 0 2019 Q20 52 0 8,803,2340 1,409,128$ 20.5916.0% 125,497 0 0 0 0 0 $ 26.21 (400,000) 2018 Q2 78 28,606,593 7,707,841 26.9% 1,669 0 0 20181 Q2 104,11952 8,803,234$ 21.051,264,766 14.4%27.0% 197,345 25.0%1 314,879 0 0 $ 27.45 12.0% 4.0% 50,000 (100,000) (500,000) 20182019 Q3 Q3 79 28,710,712 7,492,218 26.1% (24,685) 0 20192018 Q3Q30 5252 0 8,803,2348,803,23401,417,3221,498,478$ 16.1%20.9117.0%(152,556) (89,350)0 0 0 0 0 0 $ 27.820 $ 26.04 (150,000) SUBMARKET78 28,606,593 7,616,873 26.6% 90,968 0 0 1 104,119 $ 20.63 26.5% SUBMARKET24.5% 10.0% 2.0% 0 20182019 Q4 Q4 78 79 28,606,59328,710,7127,317,6667,475,83525.6% 26.0%299,207 16,383 0 00 201920181 Q4Q40 104,1195252 0 8,803,2348,803,234$ 20.6901,432,6211,461,555$ 16.3%20.6816.6% (15,299) 36,923 0 0 0 0 0 0 $ 26.690 (200,000) $ 26.19 (600,000) 26.0% 24.0% 8.0% (50,000) (200,000) (300,000) 0.0% 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 20192020 Q1 Q1 79 79 28,710,71228,710,7127,444,5807,912,73825.9% 27.6%(22,795) (436,903)1 104,1190 202020190 Q1Q10 52520 0 8,803,2348,803,234$ 20.1101,534,6251,319,327$ 17.4%21.1915.0%(102,004) 142,228 0 2017 20170 2017 20180 20180 2018 020180 2019 $2019 26.4920190 2019 2020$ 26.462020 2020 25.5% 6.0% 2017Q2 2017Q3 2017Q4 2018Q1 Q22018 Q32018Q42018Q12019Q22019Q3 2019Q4(100,000)2019Q1 2020Q2 Q32020 2020 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 Q2 79 28,710,712 7,467,533 26.0% (22,953) 0 0 20190 Q2 52 0 8,803,234$ 20.591,409,128 16.0% 125,497 0 Q2 Q30 Q4 Q1 0 Q2 Q3 0Q4 Q1 $ Q226.21Q3(400,000)Q4 Q1 Q2 Q3 2020 Q2 79 28,710,712 7,692,748 26.8% 219,990 0 2020 Q20 52 0 8,803,2340 1,384,955$ 21.1825.0%15.7% (65,628) 0 0 0 0 $ 26.314.0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 Q3 79 28,710,712 7,492,218 26.1% (24,685) 0 0 20190 Q3 52 0 8,803,234$ 20.911,498,478 17.0% (89,350) 0 0 0 0 $ 26.04 (500,000) (150,000) 2020 Q3 79 28,710,712 8,245,109 28.7% (552,361) 0 2020 Q30 52 0 8,803,2340 1,551,924$ 21.1524.5%17.6% (166,969) 0 0 0 0 $ 25.942.0% 2019 Q4 79 28,710,712 7,475,835 26.0% 16,383 0 0 20190 Q4 52 0 8,803,234$ 20.681,461,555 16.6% 36,923 0 0 0 0 $ 26.19 (600,000) (200,000) 24.0% Fort Worth CBD Overview 0.0% 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Dallas CBD District 2020 Q1 79 28,710,712 7,912,738 27.6% (436,903) 0 0 20200 Q1 52 0 8,803,234$ 21.191,319,327 15.0% 142,228 0 0 0 0 $ 26.46 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2017 2017 2017 2018 2018 2018 2018 2019Dallas2019 2019 CBD2019 Office2020 2020 2020Quoted Rates Q2 Q3 Q4 2017Q1 2017Q2 2017Q3 Q42018 Q12018Q22018Q32018DallasQ42019Q1 2019Q2 CBD2019Q3 2019 Office2020 2020 Construction2020 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3FortQ4 WorthQ1 Q2 Q3CBD Office Construction The Dallas CBD is the metro’s primary office 2020 Q2 79 28,710,712 7,692,748 26.8% 219,990 0 0 20200 Q2 52 0 8,803,234$ 21.181,384,955 15.7% Q2 (65,628)Q3 Q4 Q1 Q20 Q3 Q4 0 Q1TheQ2 FortQ30 WorthQ4 Q1CBD0 Q2 is homeQ3 $ 26.31to a heavy Q2 Q3 Q4 Q1 Q2 Q3 Q4FortQ1 WorthQ2 Q3 CBDQ4 Q1 OfficeQ2 Q3 Quoted Rates node, but the submarket has struggled for 2020 Q3Absorption79 28,710,712vs Previous8,245,109 Qtr 28.7% vs(552,361) 12 Months Ago 0 0 20200 Q3Absorption52 0 8,803,234$ 21.15vs Previous1,551,924 Qtr 17.6% vs(166,969) 12 Months Ago $21.600 0 concentration0 of energy0 companies,$ 25.94 leaving $28.50 it exposed to the effects of energy price 10,000,000 10,000,000 over the last few years. Its vacancy rate (552,361) 219,990 -24,685 (166,969) -65,628 -89,350 $21.40 Dallas CBD Office9,000,000 $28.00 Construction Fort Worth CBD Office Construction of 24.6% has been among the highest in Vacancy vs Previous Qtr vs 12 Months Ago Dallas CBD Office Quotedswings. Rates The good news is that at 13.9%, Fort Worth CBD Office Quoted Rates 9,000,000 Vacancy vs Previous Qtr vs 12 Months Ago $21.20 the metroplex for decades. The submarket Absorption vs Previous Qtr vs 12 Months Ago Absorption vs Previous Qtr $21.60vs 12 Months Ago vacancies are below the metro average $28.50 8,000,000 8,000,000 28.7% 26.8% 26.1% 17.6% 15.7% 17.0% 10,000,000 $27.50 10,000,000 contains a significant percentage of (552,361) 219,990 -24,685 (166,969) -65,628 -89,350 $21.00 and have remained relatively stable. Also, 7,000,000 U/C SF vs Previous Qtr vs 12 Months Ago U/C SF vs Previous Qtr $21.40 vs 12 Months Ago 9,000,000 $28.00 9,000,000 7,000,000 older towers that are not competitive Vacancy vs Previous Qtr vs 12 Months Ago Vacancy vs Previous Qtr vs 12 Months Ago $20.80 the newest delivery, the 280,000-SF Frost 6,000,000 $27.00 0 0 0 0 0 $21.20 0 8,000,000 8,000,000 6,000,000 with new assets in other prominent 28.7% 26.8% 26.1% 17.6% 15.7% 17.0% Tower, which opened in early 2018, was $27.50 Delivered SF $21.00 $20.60 5,000,000 U/C SF vs Previousvs Previous Qtr Qtr vs 12 Monthsvs 12 Ago Months Ago DeliveredU/C SF SF vs Previousvs Previous Qtr Qtr vs 12 Monthsvs 12 Ago Months Ago 7,000,000 $26.50 7,000,000 5,000,000 office submarkets, such as Uptown/Turtle about 75% leased in late-2020. The building $27.00 0 0 0 0 0 0 00 0 0 $20.80 0 0 6,000,000 4,000,000 6,000,000 Creek and Upper Tollway/West Plano. $20.40 boasts the highest rents in downtown Fort $26.00 4,000,000 DeliveredQuoted RatesSF vs Previous Qtr vs 12 Months Ago Delivered SF 5,000,000 $26.50 5,000,000 However, the submarket’s low rents, transit vs Previous Qtr vs 12 Months Ago Quoted Rates vs Previousvs Previous Qtr Qtr $20.60vs 12 Monthsvs 12 Ago Months Ago $20.20 Worth at about $40/SF, and there are very 3,000,000 3,000,000 021 0 21 0 21 0 0 $20.40 0 4,000,000 $25.50 4,000,000 amenities, and central location have helped 26 26 26 few buildings in the submarket that are close $26.00 2,000,000 2,000,000 Quoted Rates vs Previous Qtr vs 12 Months Ago Quoted Rates vs Previous Qtr vs 12 Months Ago $20.00 $20.20 3,000,000 3,000,000 keep a core group of tenants rooted here, to this mark. While rent growth has slowed $25.50 1,000,000 $25.00 1,000,000 21 21 21 26 26 26 $19.80 2,000,000 2,000,000 and fundamentals have improved in recent Dallas CBD Vital Statistics Fort Worth CBD Vital $20.00 Statistics compared to a decade ago, rents have 0 $25.00 0 $19.60 remained positive at .. Weak rent growth1,000,000 $24.50 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 20191,000,0002020 2020 2020 years. 400,000 Dallas CBD Vital Statistics 29.0% 400,000 Fort Worth CBD Vital Statistics $19.80 20.0% 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 0 $24.50 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 0Q2 Q3 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 300,000 28.5% $19.60 $19.40 18.0%may persist in the coming months, as the 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 400,000 29.0% 400,000 20.0% $24.00 About a decade ago, developers began to 200,000 28.0% 300,000 2017 2017submarket2017 2018 2018 deals2018 with2018 the2019 economic2019 2019 and2019 2020Q22020Q3 2020Q4 Q1 Q2 Q3 Q4 Q1 Q22017Q32017Q4 2017Q1 Q22018Q32018 2018 2018 2019 2019 2019 2019 2020Q22020Q32020Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 300,000 28.5% $19.40 18.0% Q216.0%Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 $24.00Q2 Q3 Delivered Under Construction Delivered Under Construction 300,000 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2017 2017 2017 2018 2018 2018Q2 2018Q3 2019Q42019Q12019Q22019 Q32020 2020Q4 2020Q1 Q2 Q3 Q4 Q1 Q2 Q3 reboot millions of square feet of obsolete 200,000100,000 28.0% 27.5% 16.0% 14.0%social fallout stemming from the coronavirus Delivered Under Construction 200,000 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 DeliveredQ2 Q3 Q4UnderQ1 ConstructionQ2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 inventory into alternative uses, such as 100,000 0 27.5% 27.0% 200,000 14.0% 12.0%pandemic. multifamily, hotel, as well as retail projects. (100,000)0 27.0% 26.5% 100,000 12.0% 10.0% 100,000 10.0% These conversions not only buoyed CBD (100,000)(200,000) 26.5% 26.0% 8.0% Leasing (200,000) 26.0% 8.0% (300,000) 25.5% 00 6.0% office fundamentals, but they also helped (300,000) 25.5% 6.0% Though Fort Worth has greater exposure (400,000) 25.0% 4.0% the submarket take steps to become a real (400,000) 25.0% (100,000) 4.0% to the energy industry than Dallas does, live/work/play environment. Furthermore, (500,000)(500,000) 24.5% 24.5% 2.0% 2.0% fundamentals have stayed intact. Vacancies (600,000)(600,000) 24.0% 24.0% (200,000) 0.0% 0.0% have remained stable at 13.9%, below the many older assets in the CBD have either 2017201720172017201720172018 20182018 2018201820182018201920182019201920192019201920192020 20192020 20202020 2020 2020 201720172017201720172017201820182018 20182018 2018201820192018201920192019201920192019202020192020 2020 2020 2020 undergone or are undergoing major Q2Q2Q3 Q3Q4 Q4Q1 Q1Q2 Q3Q2 Q4Q3 Q1Q4Q2Q1Q3 Q2Q4 Q3Q1 Q4Q2 Q3Q1 Q2 Q3 Q2Q2 Q3Q3Q4 Q4Q1 Q1Q2 Q2Q3 Q4Q3 Q1Q4 Q2Q1Q3Q2Q4 Q3Q1 Q4Q2 Q1Q3 Q2 Q3 metro average of 16.9% . While XTO Energy’s Net Absorption Delivered Vacant % renovations and are adding amenities like Net NetAbsorption Absorption DeliveredDelivered Vacant % Vacant % Net Absorption Delivered Vacant % move from Fort Worth CBD Houston (a net parking to remain competitive with newer loss of 1,600 employees) was expected to properties in the Arts District and Uptown. open up a large chunk of office space in the submarket, the supply glut has been Leasing somewhat mitigated. The 120,000-SF W.T. Business services and financial firms have been migrating north into nearby Uptown/Turtle Creek for years, but the CBD Waggoner building and 195,000-SF 714 Main will both be redeveloped into hotels. Furthermore, the 93,800-SF Petroleum has recently recaptured some momentum. Goldman Sachs consolidated its D-FW operations in 175,000 SF at the Trammell Building is already being marketed for lease by its new owner, Sundance Square. Crow Center in early 2018, moving from Las Colinas. After previously agreeing to move to The Union in Uptown, law firm Vinson & Elkins decided instead to remain at the Trammell Crow Center.Meanwhile, 1900 Pearl lease-up quickly with asking Leasing activity got off to a great start when Oncore Electric signed a 200,000 SF lease for 777 Main in January, one of the rents reaching above $40/NNN, among the highest asking rents in the urban core. largest leases in the metroplex of 2020. The new office will take up seven floors and will cost more than $8.5 million to build out. The new office will replace the utilities longtime Ft Worth location at West 7th Street. They are expected to move in late As of early-August the area has reported 64 leases signed since the beginning of 2020, the largest being a 95,500 SF lease at 2020. 717 Harwood. Financial services firm Hilltop Securities took four floors of the 844,000 SF building in July. They are expected to move in on May 2021. Frost Tower was delivered in 18Q2 while 50% leased to its namesake tenant, Frost Bank, and to Jetta Operating Company. Frost Tower landed another significant tenant in 18Q3 when Whitley Penn signed on for 46,000 SF, bringing the building to about 70% leased. The company moved from the neighboring West Southwest Fort Worth Submarket in early 2019. In late Largest Vacancies: Movers & Shakers 2018, WeWork agreed to take roughly 38,000 SF across two buildings at Sundance Square. Engineering consulting firm Fountain Place – 851,690 SF Tenant SF Building Freese and Nichols will take 80,000 SF at Burnett Plaza in the CBD in 2020 when it moves from its current location in West 1700 Pacific – 769,959 SF Hilltop Securities 95,469 717 N Harwood St Southwest Fort Worth. Ricoh USA 8,429 1999 Bryan St Bryan Tower – 620,922 sf Invitation Homes, Inc 42,136 1717 Main Street Bank of America Plaza – 498,837,SF Vincent Serafino 26,594 1717 Main Street Comerica Bank Tower – 462,944 SF Movers & Shakers Largest Vacancies: Stir Crazy 23,200 1815 N Mark Street Tenant SF Building 777 Main – 195,801 sf Revtech Ventures 10,181 311 N Market Street US Health 4,372 300 Burnett Oil & Gas / Star Telegram – 175,157 SF Burnett Plaza – 166,760 sf Bank of America Tower – 161,363 sf
The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy thereof. The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy 6 The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. 7
Dallas CBD Fort Worth CBD
Dallas CBD Fort Worth CBD Existing Inventory Vacancy Delivered Inventory Under Construction Quoted Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Rates Far North Dallas Office Vacancy Far North Dallas Office Net Absorption Construction 22.0% 2017 Q2 429 47,416,648 9,118,472 19.2% 254,815 0 0 11 2,541,934 $ 22.84 1,000,000 2017 Q3 430 47,449,098 8,680,121 18.3% 470,801 1 32,450 12 2,954,629 $ 23.11 21.5% 800,000 2017 Q4 433 48,210,998 9,529,092 19.8% (101,711) 3 761,900 9 2,192,729 $ 22.73 21.0% Existing Inventory Vacancy Delivered Inventory Under Construction 2018 Q1 436 49,586,510 10,107,031 20.4% 812,213 3 1,375,512 6 Quoted817,217 $ 23.11 20.5% 600,000 Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Rates Far North20.0% Dallas Office Vacancy Far North Dallas Office Net Absorption 2018 Q2 437 49,603,546 10,347,382 20.9% (223,315) 1 17,036 Construction6 1,058,554 $ 23.12 400,000 22.0% 19.5% 20182017 Q2Q3 429440 47,416,64849,958,5829,118,47210,116,00219.2% 20.2% 254,815 586,416 0 30 355,03611 2,541,9345 $ 22.84944,540 $ 23.50 1,000,000 200,000 2017 Q3 430 47,449,098 8,680,121 18.3% 470,801 1 32,450 12 2,954,629 $ 23.11 21.5% 19.0% 2018 Q4 440 49,958,582 10,539,050 21.1% (423,048) 0 0 8 1,010,070 $ 23.58 800,000 2017 Q4 433 48,210,998 9,529,092 19.8% (101,711) 3 761,900 9 2,192,729 $ 22.73 21.0% 18.5% 0 2019 Q1 442 50,403,727 10,388,399 20.6% 595,796 2 445,145 8 704,317 $ 23.53 FAR NORTH2018 Q1 436 49,586,510DALLAS10,107,031 20.4% 812,213 3 1,375,512 6 FAR817,217 $ 23.11 NORTH20.5% DALLAS 600,000 18.0% (200,000) 2019 Q2 443 50,419,127 10,398,254 20.6% 5,545 1 15,400 8 860,251 $ 23.6620.0% 2018 Q2 437 49,603,546 10,347,382 20.9% (223,315) 1 17,036 6 1,058,554 $ 23.12 17.5% 400,000 19.5% (400,000) 20192018 Q3 440444 49,958,58250,677,50010,116,00210,452,98920.2% 20.6% 586,416 203,638 3 355,0361 258,3735 944,5408 $ 23.50636,378 $ 23.81 200,000 SUBMARKET 19.0% SUBMARKET17.0% 20192018 Q4 440446 49,958,58250,733,15210,539,05010,518,02621.1% 20.7% (423,048) (9,385) 0 20 55,6528 1,010,0706 $ 23.58580,726 $ 23.81 (600,000) 18.5% 16.5% 0 20202019 Q1 442448 50,403,72750,783,65210,388,39910,202,85020.6% 20.1% 595,796 365,676 2 445,1452 50,5008 704,3174 $ 23.53530,226 $ 24.28 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 18.0% 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019(200,000)2019 2020 2020 2020 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 Q2 443 50,419,127 10,398,254 20.6% 5,545 1 15,400 8 860,251 $ 23.66 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 Q2 449 51,003,652 10,581,550 20.7% (158,700) 1 220,000 4 430,226 $ 24.5017.5% 2019 Q3 444 50,677,500 10,452,989 20.6% 203,638 1 258,373 8 636,378 $ 23.81 (400,000) 2020 Q3 450 51,174,986 10,898,970 21.3% (146,086) 1 171,334 3 258,892 $ 24.9017.0% 2019 Q4 446 50,733,152 10,518,026 20.7% (9,385) 2 55,652 6 580,726 $ 23.81 (600,000) Far North Dallas Overview 16.5% 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 Q1 448 50,783,652 10,202,850 20.1% 365,676 2 50,500 4 530,226 $ 24.28 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Existing Inventory Vacancy Delivered Inventory Under Construction Far North Dallas Office Quoted Rates Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FarQ3 Q4NorthQ1 Q2 DallasQ3 Office Construction Companies located here have access to 2020 Q2 449 51,003,652 10,581,550 20.7% (158,700) 1Quoted 220,000 4 430,226 $ 24.50 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Rates Far North Dallas Office Vacancy Far North Dallas Office Net Absorption a deep and well-educated labor pool. 2020 Q3Absorption450 51,174,986vs Previous10,898,970 Qtr 21.3% vs (146,086)12 MonthsConstruction Ago 1 171,334 3 258,892 $ 24.90 $25.50 22.0% 10,000,000 More than half of all adults have at2017 least Q2 a 429 47,416,648 9,118,472(146,086)19.2% 254,815 -158,7000 0 11 203,6382,541,934 $ 22.84 1,000,000 2017 Q3 430 47,449,098 8,680,121 18.3% 470,801 1 32,450 12 2,954,629 $ 23.11 21.5% Far North 800,000$25.00 Dallas Office Quoted Rates Far North Dallas Office9,000,000 Construction bachelor’s degree, and the Plano and2017 Q4Frisco433 48,210,998 9,529,092Vacancy19.8% (101,711)vs Previous3 Qtr 761,900 vs9 12 Months2,192,729 Ago $ 22.73 21.0% Absorption 8,000,000 independent school districts are among2018 Q1 the 436 49,586,510 10,107,031 20.4% 812,213vs Previous Qtr 3 1,375,512vs 12 Months6 Ago 817,217 $ 23.11 20.5% $25.50 600,000 21.3% 20.7% 20.6% $24.50 10,000,000 2018 Q2 437 49,603,546 10,347,382(146,086) 20.9% (223,315)-158,700 1 17,036 203,6386 1,058,554 $ 23.12 20.0% 400,000 7,000,000 best in the state. Also drawing new tenants U/C SF vs Previous Qtr vs 12 Months Ago 19.5% $25.00 9,000,000 2018 Q3 440 49,958,582 10,116,002Vacancy 20.2% 586,416vs Previous Qtr 3 355,036vs 12 Months5 Ago 944,540 $ 23.50 200,000 19.0% is the abundance of land suitable 2018for Q4large 440 49,958,582 10,539,050258,89221.1% (423,048) 430,2260 0 8 636,3781,010,070 $ 23.58 $24.00 8,000,000 6,000,000 21.3% 20.7% 20.6% 18.5% $24.50 0 campuses and high-end retail in the2019 area. Q1 442 50,403,727 10,388,399Delivered 20.6%SF 595,796 2 445,145 8 704,317 $ 23.53 7,000,000 5,000,000 U/C SF vs Previousvs Previous Qtr Qtr vs 12 Monthsvs 12 Ago Months Ago 18.0% (200,000) 2019 Q2 443 50,419,127 10,398,254 20.6% 5,545 1 15,400 8 860,251 $ 23.66 $23.50 Furthermore, both the state and the City of 171,334 220,000 258,373 17.5% $24.00 6,000,000 4,000,000 2019 Q3 444 50,677,500 10,452,989258,892 20.6% 203,638430,226 1 258,373 636,3788 636,378 $ 23.81 (400,000) 17.0% Plano have shown a willingness to2019 dole Q4 out446 50,733,152 10,518,026QuotedDelivered Rates SF20.7% vs(9,385) Previousvs Previous Qtr 2 Qtr 55,652vs 12 Monthsvs6 12 Ago Months580,726 Ago $ 23.81 (600,000) 5,000,000 3,000,000 16.5% $23.50 $23.00 2020 Q1 448 50,783,652 10,202,850 20.1% 365,676 2 50,500 4 530,226 $ 24.28 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 generous incentives for companies looking to 171,33425 220,00025 258,373 24 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 4,000,000 2020 Q2 449 51,003,652 10,581,550 20.7% (158,700) 1 220,000 4 430,226 $ 24.50 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2,000,000 relocate to or expand here. Quoted Rates vs Previous Qtr vs 12 Months Ago $23.00 $22.50 3,000,000 2020 Q3 450 51,174,986 10,898,970 21.3% (146,086) 1 171,334 3 258,892 $ 24.90 1,000,000 25 25 24 2,000,000 Far North Dallas Vital Statistics $22.50 Local tax services firm Ryan LLC announced Far North Dallas Office Quoted Rates $22.00 Far North Dallas Office Construction 1,000,000 0 1,600,000 Far North Dallas Vital Statistics 22.0% 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 in late 2019 that it is planning to moveAbsorption its vs Previous Qtr vs 12 Months Ago $25.50 0 1,400,000 21.5% $22.00 10,000,000 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 (146,086) -158,7001,600,000 203,638 22.0% $21.50 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 headquarters to Legacy West, where it will $25.00 9,000,000 Vacancy vs Previous1,200,0001,400,000 Qtr vs 12 Months Ago 21.5% 21.0% 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020Q22020Q32020Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 $21.50 8,000,000 Delivered Under Construction house 550 jobs within a $338 million office21.3% 20.7%1,000,0001,200,000 20.6% 21.0% 20.5% 2017 2017 2017 2018 2018 2018Q2 2018Q3 2019Q42019Q12019Q22019 Q32020 2020Q4 2020Q1 Q2 Q3 Q4 Q1 Q2 Q3 $24.50 Delivered Under Construction project. The company will occupy at leastU/C SF vs Previous1,000,000800,000 Qtr vs 12 Months Ago 20.5% 20.0% Q2 Q3 Q47,000,000Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 258,892 430,226 636,378 $24.00 6,000,000 200,000 SF of office space in the new project. 600,000800,000 20.0% 19.5% Delivered SF vs Previous600,000 Qtr vs 12 Months Ago 19.5% 5,000,000 400,000 19.0% $23.50 The City of Plano approved $467,500 in171,334 220,000200,000400,000 258,373 19.0% 18.5% 4,000,000 200,000 18.5% economic incentives if the company Quotedagrees Rates vs Previous Qtr vs 12 Months Ago $23.00 3,000,000 00 18.0% 18.0% 25 25 24 2,000,000 to transfer, retain, or create 550 jobs by the (200,000)(200,000) 17.5% 17.5% $22.50 1,000,000 end of March 2023. Ryan is relocating from a Far North(400,000)(400,000) Dallas Vital Statistics 17.0% 17.0% (600,000)(600,000) 16.5% 16.5% $22.00 0 1,600,000 22.0% 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 173,000-SF space in the Galleria. 20172017201720172017201720182018201820182018 2018 20192018201920192019201920192019202020192020 20202020 2020 2020 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 1,400,000 Q2 Q3 Q4 Q1 Q2 Q3 21.5%Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 $21.50 1,200,000 Q2 Q3 Q4 Q1 Q2 21.0%Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Delivered Under Construction Frisco/The Colony is a rapidly growing1,000,000 NetNet Absorption Absorption 20.5%DeliveredDelivered Vacant % Vacant % Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 800,000 20.0% suburban submarket in the metroplex.600,000 In 19.5% 400,000 19.0% 2000, the submarket’s office inventory200,000 was 18.5% less than 700,000 SF, but today it’s 8.5 million0 18.0% (200,000) 17.5% SF. Office inventory isn’t the only thing(400,000) that 17.0% new office space will accommodate 450 employees. (600,000) 16.5% has seen rapid growth. Frisco is consistently2017 ranked2017 2017 2018 as 2018one2018 of2018 the2019 most2019 2019desirable2019 2020 2020cities2020 to live in by various publications and is one of the fastest-growing towns in the country.Q2 TheQ3 submarketQ4 Q1 Q2 Q3 alsoQ4 featuresQ1 Q2 Q3 severalQ4 Q1 retailQ2 Q3 and entertainment amenities: Stonebriar Net Absorption Delivered Vacant % Although construction in the Frisco/The Colony submarket has exploded in recent years, vacancies trended below the metro Centre is a 1.6-million-SF regional mall; Dr. Pepper Ballpark is the home of the Frisco RoughRiders, the Texas Rangers’ Class AA average during the last decade due to strong demand. Vacancies typically only rise due to supply-side pressure rather than minor league affiliate; and Toyota Stadium is home to FC Dallas of Major League Soccer. The majority of the submarket’s office tenant move-outs. Large blocks of space remain as elusive as ever. In early 2020 there were fifteen existing or under-construction product is located just off of the Dallas North Tollway, more than 2 million SF of which is in the 162-acre Hall Park. Hall Park is still buildings with more than 25,000 SF of contiguous space available. Despite the uncertainty created by the pandemic, there were expanding, and other projects along the corridor could deliver up to 20 million SF of office space at full build-out. While that is 107 new/direct leases signed as of early September, totaling 393,475SF. The largest lease signed was Addus HomeCare. The years away, a significant round of speculative supply has recently opened, and new buildings are attracting corporate tenants. company is relocating its headquarters to the Offices Two at Frisco Station, doubling its current footprint in Hall Park. Frisco landed a primary corporate user when Keurig Dr. Pepper agreed to move from West Plano to a new facility at The Star by 2021. The City of Frisco scored with Keurig Dr. Pepper, which will move from West Plano into 350,000 SF at The Star in 2021. The Star is the furthest along of the projects constituting the North Platinum Corridor as its first speculative building (398,000 SF) delivered Leasing in 16Q2. The asset saw healthy activity early, with major tenants FM Global and Bank of America taking 80,000 SF and 65,000 In the last few years, the area has been a hotbed for corporate relocations and large back-office operations. Toyota, Liberty Mutual, SF, respectively. While leasing was slower at The Star in 2017, a few deals were signed in early 2018, bringing the property to 90% and JPMorgan Chase have either relocated to (Toyota) or consolidated (Liberty Mutual and JPMorgan) operations in Legacy West, leased by mid-2018. Metro by T-Mobile is doubling its office space with its relocation to a 200,000 SF space at 3650 Dallas Parkway bringing about 15,000 jobs to the Upper Tollway/West Plano Submarket. The three companies took more than 1 million SF each, in the Duke Bridges Park just east of the Dallas Cowboy’s Star development. with Toyota alone responsible for a 2.1-million-SF campus, making it the largest tenant in the submarket. Occupancy will take a hit in 2021 when Keurig Dr. Pepper moves out of roughly 300,000 SF. The firm will shift its headquarters operations north to The Movers & Shakers Star in Frisco. Despite the uncertainty created by the pandemic, the submarket experienced over one million square feet of leasing Tenant SF Building Largest Vacancies: Varsity Brands 135,888 14460 Varsity Brands Way activity as of the end of September. The largest lease of the year was a 60,000 SF lease in May. Global Medical Response, a medical 5400 Legacy – 1,383,952 sf Global Medl Response 60,742 4400 Sam Rayburn Tollway transport firm, is taking two floors a the Realm at Castle Hills office building in State Highway 121 and Josey Lane. The company The Campus at Legacy West – 370,625 sf NTT Data 101,372 7950 Legacy Drive Liberty Mutual Campus – 227,500 sf is relocating workers from existing locations in Lewisville, Farmers Branch, and Denton. In one of the largest leases of 2019, San nThrive 50,686 7950 Legacy Drive 6400 Legacy Dr – 232,619 sf Francisco based IT firm, Splunk Inc, signed an 83,700 SF lease in the Gateway at Legacy building on the Dallas North Tollway. The
The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy thereof. The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy 8 The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. 9
Far North Dallas Far North Dallas
Far North Dallas Existing Inventory Vacancy Delivered Inventory Under Construction Quoted Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Rates East Dallas Office Vacancy East Dallas Office Net Absorption Construction 2017 Q2 168 6,999,553 774,930 11.1% (11,668) 0 0 2 349,832 $ 16.98 25.0% 150,000 2017 Q3 168 6,999,553 775,028 11.1% (98) 0 0 3 379,832 $ 17.16 2017 Q4 169 7,054,565 821,883 11.7% 8,157 1 55,012 2 324,820 $ 17.25 20.0% 100,000 Existing Inventory Vacancy Delivered Inventory Under Construction 2018 Q1 169 7,054,565 864,373 12.3% (42,490) 0 0 2 Quoted324,820 $ 17.64 50,000 Period Net Absorption Under East Dallas Office Net Absorption 2018 Q2 # Bldgs170 Total7,084,565 RBA Vacant966,638 SF Vacant %13.6% (72,265)# Bldg Delivered1 # 30,000Bldgs 1 Rates294,820 $ 20.48 East Dallas Office Vacancy Construction 15.0% 0 2017 Q2 168 6,999,553 774,930 11.1% (11,668) 0 0 2 349,832 $ 16.98 25.0% 2018 Q3 170 7,084,565 999,182 14.1% (32,544) 0 0 1 294,820 $ 20.57 150,000 20182017 Q3Q4 168170 6,999,5537,084,565775,028994,17411.1% 14.0% (98) 5,008 0 00 3 0 379,8321 $ 17.16294,820 $ 20.72 (50,000) 10.0% 100,000 WHITE ROCK/EAST20192017 Q4Q1 169171 7,054,5657,379,385821,8831,283,053 DALLAS11.7% 17.4% 8,157 5,941 1 55,0121 WHITE294,8202 324,8200 $ 17.25 0ROCK/EAST$ 22.9320.0% DALLAS (100,000) 2018 Q1 169 7,054,565 864,373 12.3% (42,490) 0 0 2 324,820 $ 17.64 50,000 2019 Q2 171 7,379,385 1,180,603 16.0% 102,450 0 0 0 0 $ 20.45 2018 Q2 170 7,084,565 966,638 13.6% (72,265) 1 30,000 1 294,820 $ 20.48 5.0% (150,000) 15.0% 0 20192018 Q3 170171 7,084,5657,379,385999,1821,268,76014.1% 17.2% (32,544) (88,157) 0 00 1 0 294,8200 $ 20.570 $ 21.29 SUBMARKET2019 Q4 171 7,379,385 1,422,229 19.3% (153,469) 0 0 1 469,000 $ 22.07 SUBMARKET (50,000) (200,000) 2018 Q4 170 7,084,565 994,174 14.0% 5,008 0 0 1 294,820 $ 20.72 10.0% 0.0% 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 20202019 Q1 171171 7,379,3857,379,3851,283,0531,367,24817.4% 18.5% 5,941 54,981 1 294,8200 0 0 0 2 $ 22.93684,116 $ 21.59 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019(100,000)2019 2020 2020 2020 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 Q2 171 7,379,385 1,180,603 16.0% 102,450 0 0 0 0 $ 20.45 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 Q2 171 7,379,385 1,380,104 18.7% (12,856) 0 0 2 684,116 $ 22.175.0% (150,000) 20202019 Q3 171171 7,379,3857,379,3851,268,7601,544,85417.2% 20.9% (88,157) (164,750)0 00 0 0 0 2 $ 21.29684,116 $ 18.29 2019 Q4 171 7,379,385 1,422,229 19.3% (153,469) 0 0 1 469,000 $ 22.07 (200,000) East Dallas Overview 0.0% 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Existing Inventory 2020 Q1 Vacancy171 7,379,385 1,367,248Delivered Inventory18.5% Under54,981 Construction 0 0 2 684,116 $ 21.59 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Garland is an inner-ring suburb located east Quoted East Dallas Office Quoted Rates Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 EastQ4 Q1 DallasQ2 Q3 Office Construction Period 2020 Q2 171 7,379,385Net Absorption 1,380,104 18.7% (12,856) Under 0 0 2 684,116 $ 22.17 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Rates East Dallas Office Vacancy East Dallas Office Net Absorption of the northern path of demographic and 2020 Q3Absorption171 7,379,385vs Previous1,544,854 Qtr 20.9% vs (164,750)12 MonthsConstruction Ago 0 0 2 684,116 $ 18.29 $25.00 2017 Q2 168 6,999,553 774,930 11.1% (11,668) 0 0 2 349,832 $ 16.98 25.0% 10,000,000 employment growth in Dallas. The central 150,000 2017 Q3 168 6,999,553 775,028(164,750)11.1% (98) -12,8560 0 3 -88,157379,832 $ 17.16 commercial node in Garland composed of 100,000 9,000,000 2017 Q4 169 7,054,565 821,883Vacancy11.7% 8,157vs Previous1 Qtr 55,012 vs2 12 Months324,820 Ago $ 17.25 20.0% East Dallas Office Quoted Rates East Dallas Office Construction industrial properties. There is only 3.3 million $20.00 2018 Q1 169 7,054,565 864,373Absorption20.9% 12.3% (42,490)vs Previous18.7% Qtr 0 0vs 12 Months2 Ago17.2%324,820 $ 17.64 $25.00 50,000 8,000,000 SF of office inventory here, most 2018of it Q2 being170 7,084,565 966,638 13.6% (72,265) 1 30,000 1 294,820 $ 20.48 15.0% 10,000,000 (164,750)U/C SF vs-12,856 Previous Qtr -88,157vs 12 Months Ago 0 7,000,000 older and of mediocre quality. The2018 submarket Q3 170 7,084,565 999,182 14.1% (32,544) 0 0 1 294,820 $ 20.57 9,000,000 Vacancy vs Previous Qtr vs 12 Months Ago (50,000) 6,000,000 2018 Q4 170 7,084,565 994,174684,11614.0% 5,008 684,1160 0 1 0294,820 $ 20.72 10.0% $20.00 $15.00 8,000,000 saw a substantial reduction in its 2019office Q1 20.9% 18.7% 17.2% 171 7,379,385 1,283,053Delivered 17.4%SF 5,941vs Previous1 Qtr 294,820 vs0 12 Months0 Ago $ 22.93 (100,000) 5,000,000 inventory in 2017 when Raytheon’s2019 previous Q2 171 7,379,385 1,180,603U/C SF 16.0% 102,450 0 0 0 0 $ 20.45 7,000,000 vs Previous Qtr vs 12 Months Ago 5.0% (150,000) 2019 Q3 171 7,379,385 1,268,7600 17.2% (88,157) 0 0 0 0 0 0 $ 21.29 6,000,000 4,000,000 campus was demolished to make way for 684,116 684,116 0 $15.00 2019 Q4 171 7,379,385 1,422,229Quoted Rates19.3% (153,469) 0 0 1 469,000 $ 22.07 (200,000) $10.00 a new industrial park. Despite lackluster Delivered SF vs Previousvs Previous Qtr Qtr vs 12 Monthsvs 12 Ago Months Ago 0.0% 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 5,000,000 3,000,000 2020 Q1 171 7,379,385 1,367,248 18.5% 54,981 0 0 2 684,116 $ 21.59 absorption, at 14.8% vacancies have typically 018 0 22 0 21 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 4,000,000 2020 Q2 171 7,379,385 1,380,104 18.7% (12,856) 0 0 2 684,116 $ 22.17 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2,000,000 remained below the metro average of 16.9% Quoted Rates vs Previous Qtr vs 12 Months Ago $10.00 3,000,000 2020 Q3 171 7,379,385 1,544,854 20.9% (164,750) 0 0 2 684,116 $ 18.29 1,000,000 due to a lack of supply and the demolition of 18 22 21 $5.00 East Dallas Vital Statistics East Dallas Office Construction 2,000,000 some obsolete assets. East Dallas Office Quoted Rates 0 $5.00 1,000,000 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Absorption vs Previous400,000 Qtr vs 12 Months Ago 25.0% $25.00 East Dallas Vital Statistics 10,000,000 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 (164,750) -12,856 -88,157 0 $- 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 The White Rock Submarket includes primarilyVacancy 400,000 25.0% 9,000,000 vs Previous300,000 Qtr vs 12 Months Ago 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020Q22020Q32020Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 20.0% $20.00 residential neighborhoods in sections of20.9% Old 18.7% 17.2% $- 8,000,000 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Delivered Under Construction 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 U/C SF 300,000 20.0% 7,000,000 East Dallas and those surrounding White vs Previous200,000 Qtr vs 12 Months Ago Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Delivered Under Construction 15.0% 6,000,000 Rock Lake. However, about half of the 684,116office 684,116200,000 0 $15.00 Delivered SF vs Previous100,000 Qtr vs 12 Months Ago 15.0% 5,000,000 inventory rests in the Baylor University 0 100,0000 0 10.0% 4,000,000 Medical Center area, which is adjacentQuoted to Rates vs Previous Qtr0 vs 12 Months Ago 10.0% $10.00 3,000,000 the nightlife and restaurant hot spot of Deep18 22 0 21 5.0% 2,000,000 Ellum. Medical tenants dominate that area, (100,000) 5.0% 1,000,000 East Dallas(100,000) Vital Statistics $5.00 and vacancies are structurally low. Assets in 0 400,000 (200,000)(200,000) 25.0% 0.0% 0.0% 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 White Rock are typically smaller, and virtually 20172017201720172017201720182018201820182018 2018 2019201820192019201920192019201920202019202020202020 2020 2020 $- none of the inventory is 4 & 5 Star300,000 quality. Q2Q2 Q3Q3Q4Q4Q1 Q1Q2 Q2Q3 20.0%Q3Q4 Q1Q4 Q2Q1 Q3Q2Q4 Q3Q1 Q4Q2 Q1Q3 Q2 Q3 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Delivered Under Construction 200,000 NetNet Absorption Absorption DeliveredDelivered Vacant % Vacant % 15.0% The potential for growth in the submarket100,000 10.0% falls within Deep Ellum. Specifically, 0KDC completed the office portion of The Epic in the (100,000) 5.0% western part of Deep Ellum in early 2019. The side pressures are expected to keep vacancy rates elevated in the near term. For instance, The Epic’s Phase Two recently broke Epic added about 250,000 SF of 5(200,000) Star office space, along with multifamily and hotel components.0.0% In mid-2019, Uber announced 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 ground, and Uber is slated to take more space there. More demand from Baylor Scott & White is expected, as the hospital is it would be bringing 3,000 jobs to The Epic,Q2 theQ3 regionalQ4 Q1 Q2 headquartersQ3 Q4 Q1 Q2 beingQ3 Q4 billedQ1 Q2 asQ3 the largest outside San Francisco. On the Net Absorption Delivered Vacant % moving its office operations from Bryan Tower in the CBD to a new facility just north of Deep Ellum in late 2020. eastern edge of Deep Ellum, Baylor Scott & White is has recently completed an office building that will allow it to consolidate its Dallas’ homegrown co-working firm Common Desk announced in June they were putting a 40,000 SF shared office center in the local operations in one facility. The Confidential Gin Building has served as a cradle of creativity and innovation for 130 years. landmark Continental Gin building off Elm Street. The 70,000 SF building is undergoing a $30 million dollar renovation, which The historic property is next to Baylor Scott & Whites East Dallas campus and its new administrative center. The ownership group should be completed by late 2020. headed by August Family Partnership has done an almost $30 million renovation of the landmark space to convert it into office and retail space. The project is anticipated to be completed in late 2020. Hines is planning an office project in the neighborhood More than half of the office inventory in the submarket is clustered around the medical center. Of that, nearly 2 million SF is as well. Other developers own older, loft-style buildings and empty lots in Deep Ellum, so further growth is likely in this emerging considered medical office. The medical office space in that area typically stays around 95% occupied, and there is usually very live/work/play environment. little tenant movement. The remainder of the office inventory in White Rock is spread throughout the submarket, with a few nodes Leasing running along I-30, the LBJ Freeway, and Garland Road. These properties usually cater to small businesses with footprints smaller than 2,000 SF. Given weaker drivers for office space, vacancies in Garland generally trend below the metro average. The exception to this trend was caused by Raytheon’s move-out in 2016, though that vacancy spike was offset by the subsequent demolition of the firm’s facility in 2017. Most of the institutional-grade office product in this area of the metroplex is located in the Telecom Corridor, along Highway 75 in Richardson. As a commuter town that was largely built out in the 1960s and ‘70s, Garland contains an office stock that caters more to local businesses, banks, and firms with an industrial presence in the area. Tenant movement is rare, and only a Movers & Shakers Largest Vacancies: few tenants typically sign for more than 10,000 SF in a given year. Occupancies in medical office assets have taken a hit in recent Tenant SF Building Barnett Tower – 226,509 SF quarters because Baylor Garland hospital closed in early 2018. This closure affected over 700 hospital employees and as well as the Sylvan Learning Center 4,970 6537 FM 3097 The Epic – 133,686 sf medical office properties surrounding the hospital. Indigo Tiny River Home 16,800 10863 Rockwall Rd Baylor Medical Pavilion – 75,524 sf Baylor Medical Plaza II – 40,501 sf Vacancies in White Rock are typically tight but jumped due to the delivery of The Epic in the first half of 2019 and remained elevated Forest Tower – 37,400 sf through the first half of 2020. New tenants at The Epic include Uber, which is initially taking around 165,000 SF. Continued supply- Baylor Medical Plaza III – 36,605 sf
The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy thereof. The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy 10 The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. 11
East Dallas East Dallas
East Dallas Existing Inventory Vacancy Delivered Inventory Under Construction Quoted Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Rates Las Colinas Office Vacancy Las Colinas Office Net Absorption Construction 25.0% 2017 Q2 271 33,418,769 5,387,389 16.1% (147,655) 0 0 6 1,138,735 $ 21.04 2,000,000 2017 Q3 272 33,559,906 5,210,103 15.5% 318,423 1 141,137 6 2,122,964 $ 21.28 2017 Q4 272 33,559,906 5,247,581 15.6% (37,478) 0 0 6 2,122,964 $ 21.23 20.0% 1,500,000 Existing Inventory Vacancy Delivered Inventory Under Construction 2018 Q1 273 33,809,906 5,091,884 15.1% 405,697 1 250,000 7 Quoted2,152,964 $ 20.93 1,000,000 Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Rates Las Colinas Office Vacancy Las Colinas Office Net Absorption 2018 Q2 274 33,976,604 5,621,675 16.5% (363,093) 1 166,698 Construction6 1,986,266 $ 20.91 15.0% 25.0% 500,000 20182017 Q3Q2 271276 33,418,76934,341,1045,387,3895,929,36816.1% 17.3% (147,655) 56,807 0 20 364,5006 1,138,7354 $ 1,621,76621.04 $ 21.53 2,000,000 2017 Q3 272 33,559,906 5,210,103 15.5% 318,423 1 141,137 6 2,122,964 $ 21.28 0 2018 Q4 276 34,341,104 5,878,702 17.1% 50,666 0 0 4 1,621,766 $ 21.79 10.0% 2017 Q4 272 33,559,906 5,247,581 15.6% (37,478) 0 0 6 2,122,964 $ 21.23 20.0% 1,500,000 2019 Q1 278 34,587,504 5,815,169 16.8% 309,933 2 246,400 2 1,375,366 $ 21.60 (500,000) LAS 2018COLINAS Q1 273 33,809,906 5,091,884 15.1% 405,697 1 250,000 7 2,152,964 $ 20.93LAS COLINAS 1,000,000 2019 Q2 278 34,587,504 5,899,512 17.1% (84,343) 0 0 3 1,402,841 $ 21.86 2018 Q2 274 33,976,604 5,621,675 16.5% (363,093) 1 166,698 6 1,986,266 $ 20.91 15.0% 5.0% 500,000 (1,000,000) 20192018 Q3 276278 34,341,10434,587,5045,929,3685,785,65317.3% 16.7% 56,807 113,859 2 364,5000 40 1,621,7663 $ 1,402,84121.53 $ 21.80 SUBMARKET2019 Q4 280 35,962,870 5,506,301 15.3% 1,654,718 2 1,375,366 1 27,475 $ 21.19 SUBMARKET 0 (1,500,000) 2018 Q4 276 34,341,104 5,878,702 17.1% 50,666 0 0 4 1,621,766 $ 21.79 10.0% 0.0% 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 20202019 Q1 278280 34,587,50435,962,8705,815,1696,517,38816.8% 18.1% 309,933(1,011,087)2 246,4000 20 1,375,3661 $ 21.6027,475 $ 20.93 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 (500,000)2019 2020 2020 2020 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 20202019 Q2 278280 34,587,50435,962,8705,899,5126,661,98717.1% 18.5% (84,343) (144,599)0 00 30 1,402,8411 $ 21.8627,475 $ 21.00 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 5.0% (1,000,000) 20202019 Q3 278280 34,587,50435,962,8705,785,6537,187,07116.7% 20.0% 113,859 (525,084)0 00 30 1,402,8411 $ 21.8027,475 $ 20.77 2019 Q4 280 35,962,870 5,506,301 15.3% 1,654,718 2 1,375,366 1 27,475 $ 21.19 (1,500,000) 0.0% Las Colinas Overview 2020 Q1 280 35,962,870 6,517,388 18.1% (1,011,087) 0 0 1 27,475 $ 20.93 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2017 2017 2017 2018 2018 2018 2018Las2019 2019Colinas2019 2019 Office2020 2020 Quoted2020 Rates Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3LasQ4 Q1ColinasQ2 Q3 Office Construction The submarket’s central location in the Existing Inventory Vacancy Delivered Inventory Under Construction 2020 Q2 280 35,962,870 6,661,987 18.5% (144,599) 0 Quoted 0 1 27,475 $ 21.00 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Period Net Absorption Under metroplex and accessibility to D/FW # Bldgs Total RBA AbsorptionVacant SF Vacant % vs Previous #Qtr Bldg Delivered vs #12 Bldgs Months Ago Rates Las Colinas Office Vacancy $22.00 Las Colinas Office Net Absorption 2020 Q3 280 35,962,870 7,187,071 20.0% (525,084)Construction0 0 1 27,475 $ 20.77 10,000,000 Airport have fostered a groundswell well 25.0% 2017 Q2 271 33,418,769 (525,084)5,387,389 16.1% (147,655)-144,599 0 0 6113,8591,138,735 $ 21.04 2,000,000 of construction the past few years. Led $21.80 9,000,000 2017 Q3 272 33,559,906 5,210,103Vacancy 15.5% 318,423vs Previous Qtr1 141,137 vs 126 Months2,122,964 Ago $ 21.28 Las Colinas Office Quoted Rates Las Colinas Office Construction by the emergence of the Cypress 2017Waters Q4 272 33,559,906 5,247,581 15.6% (37,478) 0 0 6 2,122,964 $ 21.23 20.0% 1,500,000 Absorption vs Previous Qtr vs 12 Months Ago $22.00 $21.60 8,000,000 2018 Q1 273 33,809,906 5,091,88420.0% 15.1% 405,69718.5% 1 250,000 7 16.7%2,152,964 $ 20.93 1,000,000 10,000,000 master-planned mixed-use development, (525,084) -144,599 113,859 2018 Q2 274 33,976,604 5,621,675U/C SF 16.5% (363,093)vs Previous Qtr1 166,698 vs 126 Months1,986,266 Ago $ 20.91 15.0% 7,000,000 DFW/Freeport/Coppell has added about $21.80 $21.40500,000 9,000,000 2018 Q3 276 34,341,104 5,929,368Vacancy 17.3% vs Previous56,807 Qtr 2 364,500vs 12 Months4 Ago 1,621,766 $ 21.53 6,000,000 20 buildings, or 2.7 million SF of new 27,475 27,475 1,402,841 0 8,000,000 2018 Q4 276 34,341,104 5,878,70220.0% 17.1% 50,66618.5% 0 0 16.7% 4 1,621,766 $ 21.79 10.0% $21.60 Delivered SF vs Previous Qtr vs 12 Months Ago $21.20 5,000,000 inventory. Companies like 7-Eleven,2019 Q1 278 34,587,504 5,815,169U/C SF 16.8% vs 309,933Previous Qtr 2 246,400vs 12 Months2 Ago 1,375,366 $ 21.60 (500,000) 7,000,000 2019 Q2 278 34,587,504 5,899,5120 17.1% (84,343) 0 0 0 3 0 1,402,841 $ 21.86 $21.40 CoreLogic, Nokia, Signet Jewelers (Zales), 27,475 27,475 1,402,841 5.0% (1,000,000) 6,000,000 4,000,000 2019 Q3 278 34,587,504 5,785,653 16.7% 113,859 0 0 3 1,402,841 $ 21.80 $21.00 and Brinker International have signed QuotedDelivered Rates SF $21.20 5,000,000 2019 Q4 280 35,962,870 5,506,301 15.3% vs1,654,718 Previousvs Previous Qtr Qtr2 1,375,366vs 12 Monthsvs 121 AgoMonths27,475 Ago $ 21.19 (1,500,000) 3,000,000 0.0% on, and even more office space is2020 under Q1 280 35,962,870 6,517,388210 18.1% (1,011,087)0 21 0 0 0 1 22 27,475 $ 20.93 $20.80 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 4,000,000 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 $21.002020 2020 2020 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2,000,000 construction and in planning. 2020 Q2 280 35,962,870Quoted6,661,987 Rates 18.5% vs (144,599)Previous Qtr 0 vs0 12 Months1 Ago 27,475 $ 21.00 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 3,000,000 2020 Q3 280 35,962,870 7,187,071 20.0% (525,084) 0 0 1 27,475 $ 20.77 $20.80 $20.60 1,000,000 21 21 22 2,000,000 What began in 1972, the area was one Las Colinas Vital Statistics 0 Las Colinas Office Quoted Rates $20.60 $20.40 Las Colinas Office Construction 1,000,000 of the first planned communities in the 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Absorption vs2,000,000 Previous Qtr vs 12Las Months Colinas Ago Vital Statistics 25.0% $22.00 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 $20.40 $20.2010,000,000 United States. As a result of its unique(525,084) -144,599 113,859 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 1,500,0002,000,000 25.0% $21.80 9,000,000 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 Q22020Q32020Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 amenities, including a monorail (Las Vacancy vs Previous Qtr vs 12 Months Ago Delivered Under Construction 20.0% $20.20 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 1,500,000 $21.60 2017 2017 2017 20188,000,0002018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Colinas Area Personal Transit System) 20.0% 1,000,00018.5% 16.7% 20.0% Delivered Under Construction U/C SF vs Previous Qtr vs 12 Months Ago Q2 Q3 Q4 Q17,000,000Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 and Lake Carolyn, where residents and 1,000,000 15.0% $21.40 27,475 500,00027,475 1,402,841 6,000,000 15.0% employees could enjoy a gondola rideDelivered SF 500,000 $21.20 5,000,000 vs Previous Qtr0 vs 12 Months Ago or a stroll along with one of the many 0 0 0 10.0% 4,000,000 0 10.0% $21.00 walkways. The area experienced a buildingQuoted Rates vs (500,000)Previous Qtr vs 12 Months Ago 3,000,000 (500,000) $20.80 boom with 9.1 million SF or 90% of the 21 21 22 5.0% 2,000,000 (1,000,000) 5.0% submarket was built during this period, (1,000,000) $20.60 1,000,000 Las Colinas Vital Statistics 0 (1,500,000) 0.0% $20.40 with companies like Verizon, Kimberly- (1,500,000) 0.0% 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Clark, and several other Fortune 5002,000,000 20172017201720172017201720182018201820182018 201825.0%2019201820192019201920192019201920202019202020202020 2020 2020 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q2Q2 Q3Q3Q4Q4Q1 Q1Q2 Q2Q3 Q3Q4 Q1Q4 Q2Q1 Q3Q2Q4 Q3Q1 Q4Q2 Q1Q3 Q2 Q3 $20.20 1,500,000 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 companies relocating headquarters or Delivered Under Construction Net Absorption 20.0%Delivered Vacant % Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 significant operations to the area.1,000,000 Fueled Net Absorption Delivered Vacant % by the increased connectivity provided500,000 by 15.0% D/FW International Airport, the area still0 10.0% boasts one of the highest concentrations(500,000) of 5.0% Fortune 500/1000 companies in the(1,000,000) United Movers & Shakers States, with seven Fortune 500 and(1,500,000) five Fortune 1000 companies calling the area home. 0.0% Largest Vacancies: 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Tenant SF Building Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Williams Square – West Tower – 335,331 sf Caliber Home Loans 159,320 3401 Olympus Blvd Net Absorption Delivered Vacant % 1801 Valley View Lane – 208,593 sf An aging inventory would hamper many areas; in Urban Center/Wingren, nearly 75% of the buildings are considered 4 & 5 Star. The Michael Companies, Inc 123,740 3939 W John Carpenter Fwy 3501 Olympus Blvd – 200,000 sf This has helped bolster rents; at $29.00/SF , they are well above many of the neighboring suburbs of DFW/Freeport/Coppell, Office American Athletic Conference 18,000 545 E John Carpenter Fwy Ctr/West LBJ, Stemmons Freeway. Many of the premier buildings have asking rents of $32-$35/SF. 3401 Olymus Blvd – 171,668 sf The Urban Towers – 157,680 sf Leasing The vacancy rate in the D-FW Freeport/Coppell Submarket has remained stable at 18.6%. In late 2019, the submarket experienced an up-tick in vacancy driven by AT&T moving out of 1801 Valley View Lane, accounting for 209,000 SF. Meanwhile, a large portion of demand stems from build-to-suits in Billingsley Company’s 1,000-acre, $3.5 billion Cypress Waters mixed-use development. Cypress Waters encompasses most of the land on the southern shore of North Lake and could include up to 4.5 million SF of office space and 10,000 apartments at full build-out. In turn, vacancy rates are trending closer to the metro average at 18.6%. Healthy leasing has enabled vacancy rates to improve over recent years. Vacancies in the Urban Center are now hovering just above the metro average at 20.8% after trending well above that mark for decades.
The submarket lost its second-biggest tenant, Pioneer Natural Resources, in 2019. The firm is moving from Williams Square in the Urban Center to the Hidden Ridge development in the neighboring Office Center/West LBJ Submarket. While most of the 500,000 SF Pioneer is set to vacate has not been backfilled yet, WeWork signed on for 75,000 SF at Williams Square in early 2019.
Leasing activity was robust in 2019, with 931,900 SF of activity, edging out 2018 by 10,000 SF. In one of the biggest leases of 2019, LSG Sky Chefs signed a 100,600 SF lease in Riverside Commons, taking the entirety of the four-story building.
The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy thereof. The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy 12 The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. 13
Las Colinas Las Colinas
Las Colinas Existing Inventory Vacancy Delivered Inventory Under Construction Quoted Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Rates LBJ Freeway Office Vacancy LBJ Freeway Office Net Absorption Construction 24.0% 2017 Q2 161 21,273,863 4,803,463 22.6% 5,419 0 0 0 0 $ 19.60 300,000 2017 Q3 161 21,273,863 4,587,859 21.6% 215,604 0 0 0 0 $ 19.87 23.5% 2017 Q4 161 21,273,863 4,598,856 21.6% (10,997) 0 0 0 0 $ 20.16 23.0% 200,000 Existing Inventory Vacancy Delivered Inventory Under Construction 2018 Q1 161 21,273,863 4,552,765 21.4% 46,091 0 0 0 Quoted 0 $ 20.05 Period Net Absorption Under 22.5% # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Rates LBJ Freeway Office Vacancy LBJ Freeway Office100,000 Net Absorption 2018 Q2 161 21,273,863 4,676,738 22.0% (123,973) 0 0 Construction0 0 $ 20.02 24.0% 22.0% 20182017 Q2Q3 161161 21,273,86321,273,8634,803,4634,750,02922.6% 22.3% 5,419 (73,291)0 0 0 0 0 0 $ 19.600 $ 20.22 300,000 0 20182017 Q3Q4 161161 21,273,86321,273,8634,587,8595,007,09621.6% 23.5% 215,604 (257,067)0 0 0 0 0 0 $ 19.870 $ 20.4323.5% 21.5% 2017 Q4 200,000 2019 Q1 161161 21,273,86321,273,8634,598,8564,974,94621.6% 23.4% (10,997) 32,150 0 0 0 0 0 0 $ 20.160 $ 20.4723.0% 21.0% (100,000) LBJ FREEWAY2018 Q1 161 21,273,863 4,552,765 21.4% 46,091 0 0 0 0 $ 20.05LBJ FREEWAY 2019 Q2 161 21,273,863 4,969,013 23.4% 5,933 0 0 0 0 $ 20.3122.5% 100,000 2018 Q2 161 21,273,863 4,676,738 22.0% (123,973) 0 0 0 0 $ 20.02 20.5% (200,000) 2019 Q3 161 21,273,863 4,891,369 23.0% 77,644 0 0 0 0 $ 20.4422.0% SUBMARKET2018 Q3 161 21,273,863 4,750,029 22.3% (73,291) 0 0 0 0 $ 20.22 SUBMARKET20.0% 0 20192018 Q4Q4 161161 21,273,86321,273,8635,007,0964,689,34723.5% 22.0%(257,067) 202,022 0 0 0 0 0 0 $ 20.430 $ 20.3021.5% (300,000) 19.5% 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 20202019 Q1Q1 161161 21,273,86321,273,8634,974,9464,443,92823.4% 20.9% 32,150 245,419 0 0 0 0 0 0 $ 20.470 $ 20.4021.0% (100,000) 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 Q2 161 21,273,863 4,969,013 23.4% 5,933 0 0 0 0 $ 20.31 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 Q2 161 21,273,863 4,603,111 21.6% (159,183) 0 0 0 0 $ 20.7020.5% (200,000) 20202019 Q3Q3 161161 21,273,86321,273,8634,891,3694,804,51123.0% 22.6% 77,644 (201,400)0 0 0 0 0 0 $ 20.440 $ 20.3920.0% 2019 Q4 161 21,273,863 4,689,347 22.0% 202,022 0 0 0 0 $ 20.30 (300,000) 19.5% 2020 Q1 161 21,273,863 4,443,928 20.9% 245,419 0 0 0 0 $ 20.40 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 LBJ Freeway Overview Existing Inventory Vacancy Delivered Inventory Under Construction LBJ Freeway Office Quoted Rates LBJ Freeway Office Construction 2020 Q2 161 21,273,863 4,603,111 21.6% (159,183) 0Quoted 0 0 0 $ 20.70 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Period Net Absorption Under LBJ Freeway Office Net Absorption This submarket has struggled for some# Bldgs Total RBA VacantAbsorption SF Vacant % # Bldg Delivered # Bldgs Rates LBJ Freeway Office Vacancy 2020 Q3 161 21,273,863vs Previous4,804,511 Qtr 22.6% vs(201,400) 12 MonthsConstruction Ago 0 0 0 0 $ 20.39 $20.80 24.0% 10,000,000 time, the submarket has been trending2017 Q2 161 21,273,863 4,803,463(201,400)22.6% 5,419 -159,1830 0 0 77,6440 $ 19.60 300,000 2017 Q3 161 21,273,863 4,587,859 21.6% 215,604 0 0 0 0 $ 19.87 23.5% $20.60 9,000,000 well above the metro average for decades. Vacancy vs Previous Qtr vs 12 Months Ago LBJ Freeway Office Quoted Rates LBJ Freeway Office Construction 2017 Q4 161 21,273,863 4,598,856 21.6% (10,997) 0 0 0 0 $ 20.16 23.0% 200,000 Absorption 8,000,000 The LBJ Freeway submarket runs2018 fromQ1 161 21,273,863 4,552,76522.6% 21.4% vs46,091 Previous21.6% Qtr 0 0vs 12 Months0 Ago23.0% 0 $ 20.05 $20.80 $20.40 22.5% 100,000 10,000,000 Coppell to Garland, directly along2018 Q2the 161 21,273,863 4,676,738(201,400) 22.0% (123,973)-159,183 0 0 77,6440 0 $ 20.02 7,000,000 U/C SF vs Previous Qtr vs 12 Months Ago 22.0% $20.60 9,000,000 Lydon B Johnson Freeway. 2018 Q3 161 21,273,863 4,750,029Vacancy 22.3% vs(73,291) Previous Qtr 0 0vs 12 Months0 Ago 0 $ 20.22 $20.200 0 0 0 21.5% 6,000,000 2018 Q4 161 21,273,863 5,007,09622.6% 23.5% (257,067)21.6% 0 0 23.0%0 0 $ 20.43 $20.40 8,000,000 2019 Q1 161 21,273,863 4,974,946Delivered SF23.4% 32,150 0 0 0 0 $ 20.47 21.0% (100,000) $20.00 U/C SF vs Previousvs Previous Qtr Qtr vs 12 Monthsvs 12 Ago Months Ago 7,000,000 5,000,000 Stronger leasing dynamics have2019 pushed Q2 161 21,273,863 4,969,013 23.4% 5,933 0 0 0 0 $ 20.31 20.5% $20.20 00 0 0 0 0 (200,000) 6,000,000 4,000,000 vacancy rates lower throughout2019 the Q3 last 161 21,273,863 4,891,369 23.0% 77,644 0 0 0 0 $ 20.44 $19.80 Quoted Rates 20.0% $20.00 2019 Q4 161 21,273,863 4,689,347Delivered SF22.0% vs202,022 Previousvs Previous Qtr 0 Qtr 0vs 12 Monthsvs0 12 Ago Months0 Ago $ 20.30 (300,000) 5,000,000 3,000,000 decade. However, at 20.3% vacancies are 19.5% 2020 Q1 161 21,273,863 4,443,9280 20.9% 245,419 0 0 0 0 0 0 $ 20.40 $19.60 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 20 21 20 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 $19.802020 2020 2020 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 4,000,000 2,000,000 back on the rise, as the submarket2020 Q2has 161 21,273,863 4,603,111 21.6% (159,183) 0 0 0 0 $ 20.70 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Quoted Rates vs Previous Qtr vs 12 Months Ago 3,000,000 experienced -29,000 SF of net absorption2020 Q3 161 21,273,863 4,804,511 22.6% (201,400) 0 0 0 0 $ 20.39 $19.60 $19.40 1,000,000 20 LBJ 21Freeway Vital Statistics20 2,000,000 over the last 12 months. Anemic rent LBJ Freeway Office Quoted Rates $19.40 $19.20 LBJ Freeway Office Construction 0 1,000,000 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 growth is being felt throughout theAbsorption vs Previous300,000 Qtr vs 12 LBJMonths FreewayAgo Vital Statistics 24.0% $20.80 $19.20 10,000,000 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 submarket, especially among 3 Star(201,400) -159,183 77,644 23.5% $19.00 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 300,000 24.0% $20.60 9,000,000 Vacancy vs Previous200,000 Qtr vs 12 Months Ago 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020Q22020Q32020Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 buildings. However, if demand improves, 23.5% 23.0% $19.00 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Delivered Under Construction 22.6% 21.6%200,000 23.0% $20.40 2017 2017 20178,000,0002018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 23.0% Delivered Under Construction rent growth could stand to pick up onceU/C SF vs Previous100,000 Qtr vs 12 Months Ago 22.5% Q2 Q3 Q4 7,000,000Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 $20.20 again, since the submarket is unlikely0 to 100,0000 0 22.5% 22.0% 6,000,000 Delivered SF vs Previous Qtr0 vs 12 Months Ago 22.0% $20.00 5,000,000 see new supply anytime soon. 0 21.5% 0 0 0 21.5% 4,000,000 (100,000) 21.0% $19.80 Quoted Rates vs Previous(100,000) Qtr vs 12 Months Ago 21.0% 3,000,000 Leasing 20 21 20 $19.60 20.5% 20.5% 2,000,000 (200,000)(200,000) At 21.8%, vacancies are high in East LBJ, 20.0% $19.40 1,000,000 LBJ Freeway Vital Statistics 20.0% although they have fallen the past several (300,000)(300,000) 19.5% 19.5% $19.20 0 300,000 2017 2017 2017 2018 2018 2018 201824.0%2019 2019 2019 2019 2020 2020 2020 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 quarters. A lack of newer properties may 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q2 Q3 Q4 Q1 Q2 Q3 23.5%Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 $19.00 200,000 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 constrain competitiveness relative to other 23.0% Delivered Under Construction NetNet Absorption Absorption DeliveredDelivered Vacant % Vacant % Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 areas of the metroplex, as tenants100,000 have 22.5% 22.0% shown a preference for new product0 over 21.5% the past decade. Just 3% of inventory(100,000) 21.0% 20.5% here has been built since 2000, (200,000)which is 20.0% Movers & Shakers Largest Vacancies: well below the metro average of(300,000) 25%. 19.5% With 110,000 SF under construction and2017 02017 SF2017 delivered2018 2018 2018 in2018 the2019 past2019 2019 122019 months,2020 2020 2020the demand potential of this submarket is Tenant SF Building Pinnacle Tower – 200,173 sf Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Lake Highlands Tower – 159,979 sf limited, especially since there are plenty ofNet otherAbsorption options forDelivered tenants in neighboringVacant % Quorum/Bent Tree, let alone premier Reddy Ice 26,262 5710 Lyndon B Johnson Fwy suburban submarkets like Upper Tollway/West Plano and Frisco/The Colony. Lenox Financial Northcreek Place I - 156,248 SF Mortgage Corp 14,213 13355 Noel Rd Vacancies in that subset have remained relatively stable this over the last decade, staying between 15% and 20%. The 99 Healthcare Management 8,178 9330 Lyndon B Johnson Fwy most substantial improvements have come in 4 & 5 Star assets. A significant portion of this improvement was due to AmTrust Financial, which purchased 4455 LBJ in 2015 and moved into more than 160,000 SF there in late 2016. Vacancies in 4 & 5 Star properties ticked up recently, since Granite Tower saw about 50,000 SF of move-outs in 2019. This submarket, like everywhere else in the metroplex, will likely feel the impact of the coronavirus pandemic in the coming weeks and months. However, the full scope of any potential local downturn is uncertain at this point.
The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy thereof. The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy 14 The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. 15
LBJ Freeway LBJ Freeway
LBJ Freeway Existing Inventory Vacancy Delivered Inventory Under Construction Quoted Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Rates Mid Cities Office Vacancy Mid Cities Office Net Absorption Construction 30.0% 2017 Q2 376 21,538,102 4,049,640 18.8% (355,565) 1 15,254 7 287,889 $ 17.17 200,000 2017 Q3 378 21,667,442 4,086,772 18.9% 92,208 2 129,340 5 158,549 $ 17.21 25.0% 0 2017 Q4 382 21,775,991 4,174,797 19.2% 20,524 4 108,549 1 50,000 $ 17.20 Existing Inventory Vacancy Delivered Inventory Under Construction (200,000) 2018 Q1 382 21,775,991 4,033,183 18.5% 141,614 0 0 1 Quoted50,000 $ 17.34 Period Net Absorption Under 20.0% # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Rates Mid Cities Office Vacancy Mid Cities Office(400,000) Net Absorption 2018 Q2 383 21,832,461 3,961,714 18.1% 71,469 0 0 Construction2 66,440 $ 17.41 30.0% (600,000) 20182017 Q3Q2 376384 21,538,10221,882,4614,049,6404,008,78718.8% 18.3% (355,565) 2,927 1 15,2541 50,0007 287,8891 $ 17.1716,440 $ 17.46 15.0% 200,000 2017 Q3 378 21,667,442 4,086,772 18.9% 92,208 2 129,340 5 158,549 $ 17.21 (800,000) 2018 Q4 384 21,882,461 3,879,240 17.7% 129,547 0 0 1 16,440 $ 17.3525.0% 0 2017 Q4 382 21,775,991 4,174,797 19.2% 20,524 4 108,549 1 50,000 $ 17.20 2019 Q1 384 21,882,461 3,738,396 17.1% 140,844 0 0 1 16,440 $ 17.37 10.0% (200,000) (1,000,000) MID-CITIES2018 Q1 382 21,775,991OFFICE4,033,183 18.5% 141,614 0 0 1 50,000MID-CITIES$ 17.34 OFFICE 2019 Q2 20.0% (400,000) (1,200,000) 2018 Q2 383384 21,832,46121,882,4613,961,7143,796,30318.1% 17.3% 71,469 (57,907) 0 00 20 66,4404 $ 17.4197,699 $ 17.47 5.0% (600,000) (1,400,000) SUBMARKET20192018 Q3 384385 21,882,46121,898,9014,008,7875,260,21318.3% 24.0% 2,927 (1,447,470)1 50,0001 16,4401 16,4404 $ 100,60917.46 $ 18.3715.0%SUBMARKET 20192018 Q4 384385 21,882,46121,898,9013,879,2405,181,44217.7% 23.7% 129,547 78,771 0 00 10 16,4404 $ 100,60917.35 $ 18.35 (800,000) (1,600,000) 0.0% 20202019 Q1 384385 21,882,46121,898,9013,738,3965,164,55717.1% 23.6% 140,844 16,885 0 00 10 16,4404 $ 100,60917.37 $ 18.5410.0% (1,000,000) 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 20202019 Q2 384385 21,882,46121,898,9013,796,3035,519,15617.3% 25.2% (57,907) (354,599)0 00 40 97,6994 $ 100,60917.47 $ 18.49 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3(1,200,000)Q4 Q1 Q2 Q3 5.0% (1,400,000) 20202019 Q3 385389 21,898,90121,999,5105,260,2135,693,12324.0% 25.9%(1,447,470)(73,358) 1 16,4404 100,6094 100,6090 $ 18.370 $ 18.57 2019 Q4 385 21,898,901 5,181,442 23.7% 78,771 0 0 4 100,609 $ 18.35 (1,600,000) 0.0% 2020 Q1 385 21,898,901 5,164,557 23.6% 16,885 0 0 4 100,609 $ 18.54 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Mid-Cities Overview Existing Inventory Vacancy Delivered Inventory Under Construction Mid Cities Office Quoted Rates Mid Cities Office Construction 2020 Q2 385 21,898,901 5,519,156 25.2% (354,599) Quoted0 0 4 100,609 $ 18.49 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Despite the net absoprtion in thePeriod last 12 Net Absorption Under Mid Cities Office Net Absorption # Bldgs Total RBA 2020Vacant AbsorptionQ3 SF Vacant389 % 21,999,510vs Previous5,693,123# Bldg Qtr Delivered25.9% # Bldgsvs 12(73,358) Months Ago Rates4 100,609 0 0Mid Cities$ Office18.57 Vacancy $19.00 Construction months, the leasing dynamics are relatively 30.0% 10,000,000 2017 Q2 376 21,538,102 4,049,640(73,358)18.8% (355,565) -354,5991 15,254 7 -1,447,470287,889 $ 17.17 200,000 healthy. 2017 Q3 378 21,667,442 4,086,772 18.9% 92,208 2 129,340 5 158,549 $ 17.21 Mid Cities Office Quoted Rates Mid Cities Office9,000,000 Construction Vacancy vs Previous Qtr vs 12 Months Ago 25.0% 0 2017 Q4 382 21,775,991 4,174,797 19.2% 20,524 4 108,549 1 50,000 $ 17.20 $18.50 Absorption vs Previous Qtr vs 12 Months Ago $19.00 (200,000) 8,000,000 2018 Q1 382 21,775,991 4,033,18325.9%18.5% 141,614 25.2%0 0 1 24.0%50,000 $ 17.34 10,000,000 The Arlington/Mansfield submarket is geared (73,358) -354,599 -1,447,470 20.0% (400,000) 2018 Q2 383 21,832,461 3,961,714U/C SF18.1% 71,469vs Previous0 Qtr 0 vs2 12 Months66,440 Ago $ 17.41 7,000,000 toward distribution and manufacturing Vacancy (600,000) 9,000,000 2018 Q3 384 21,882,461 4,008,787 18.3% 2,927vs Previous Qtr1 50,000vs 12 Months1 Ago16,440 $ 17.46 15.0% $18.50 $18.00 0 100,609 100,609 8,000,000 6,000,000 functions. As a result, warehouses2018 andQ4 384 21,882,461 3,879,24025.9% 17.7% 129,547 25.2% 0 0 24.0%1 16,440 $ 17.35 (800,000) Delivered SF (1,000,000) industrial parks are more likely to2019 be Q1 built384 21,882,461 3,738,396U/C SF17.1% 140,844vs Previousvs Previous Qtr0 Qtr 0 vs 12 Monthsvs1 12 AgoMonths16,440 Ago $ 17.37 10.0% 7,000,000 5,000,000 2019 Q2 $18.00 (1,200,000) $17.50 in this area than office facilities. The area 384is 21,882,461 3,796,303100,6090 17.3% (57,907)100,6090 0 0 100,6094 16,44097,699 $ 17.47 6,000,000 4,000,000 2019 Q3 385 21,898,901 5,260,213 24.0% (1,447,470) 1 16,440 4 100,609 $ 18.37 5.0% (1,400,000) home to stadiums for the Dallas Cowboys QuotedDelivered Rates SF vs Previous Qtr vs 12 Months Ago 5,000,000 2019 Q4 385 21,898,901 5,181,442 23.7% 78,771vs Previous0 Qtr 0 vs4 12 Months100,609 Ago $ 18.35 (1,600,000) 3,000,000 and Texas Rangers, as well as the original Six 0.0% $17.50 2020 Q1 385 21,898,901 5,164,557100,60923.6% 16,885 0 0 0 16,4404 100,609 $ 18.54 $17.002017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 4,000,000 19 18 18 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2,000,000 Flags. The City of Arlington has one2020 Q2 of the385 21,898,901 5,519,156Quoted Rates25.2% (354,599)vs Previous Qtr0 0 vs 12 Months4 Ago100,609 $ 18.49 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 3,000,000 most educated labor force in Texas,2020 Q3 ranking389 21,999,510 5,693,123 25.9% (73,358) 4 100,609 0 0 $ 18.57 $17.00 1,000,000 19 18 18 2,000,000 2nd in the state for the percentage of adults Mid Cities Vital Statistics $16.50 Mid Cities Office Quoted Rates Mid Cities Office Construction 1,000,000 0 with a bachelor’s degree or higher. This is 400,000 Mid Cities Vital Statistics 30.0% $16.50 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Absorption vs Previous Qtr vs 12 Months Ago $19.00 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 due to the high concentration of institutions 10,000,000 $16.00 (73,358) -354,599200,000400,000 -1,447,470 30.0% 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 of higher learning found in the area. These 25.0% 9,000,000 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020Q22020Q32020Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Vacancy vs Previous200,000 Qtr 0 vs 12 Months Ago $18.50 $16.00 Delivered Under Construction 8,000,000 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 include the University of Texas at Arlington,25.9% 25.2% 0 24.0% 25.0% 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 (200,000) Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Delivered Under Construction U/C SF vs Previous Qtr vs 12 Months Ago 20.0% 7,000,000 Tarrant County College Southeast Campus, (400,000)(200,000) $18.00 20.0% 6,000,000 and Arlington Baptist University. 0 100,609(400,000) 100,609 Delivered SF vs Previous(600,000) Qtr vs 12 Months Ago 15.0% 5,000,000 (600,000) 15.0% $17.50 100,609 0(800,000) 16,440 4,000,000 (800,000) 10.0% Grand Prairie’s inventory ,like otherQuoted Mid- Rates vs Previous(1,000,000) Qtr vs 12 Months Ago 10.0% 3,000,000 (1,000,000) $17.00 Cities office submarkets, Grand Prairie’s19 (1,200,000)18 18 2,000,000 (1,200,000) 5.0% 5.0% inventory is predominantly older and of (1,400,000)(1,400,000) 1,000,000 Mid Cities Vital Statistics $16.50 middle-tier quality. Grand Prairie lacks the (1,600,000)(1,600,000) 0.0% 0.0% 0 400,000 2017 2017 2017 2018 2018 201830.0%2018 2019 2019 2019 2019 2020 2020 2020 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 northern Dallas suburban submarket’s 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 200,000 Q2Q2 Q3Q3Q4Q4Q1 Q1Q2 Q2Q3 Q3Q4 Q1Q4 Q2Q1 Q3Q2Q4 Q3Q1 Q4Q2 Q1Q3 Q2 Q3 $16.00 25.0% 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 dynamism, and leasing volume tends0 to be Net Absorption Delivered Vacant % Delivered Under Construction Net Absorption Delivered Vacant % Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 relatively sparse. (200,000) 20.0% (400,000) (600,000) 15.0% The submarket is home to the former(800,000) American Airlines headquarters.(1,000,000) However, 10.0% (1,200,000) 5.0% the company relocated to its new(1,400,000) campus Movers & Shakers Largest Vacancies: in the HEB/Mid-Cities Submarket,(1,600,000) just west of Highway 360, in 2019. The move sent vacancy0.0% rates dramatically higher. The 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Tenant SF Building American Airlines HQ 1 – 730,806 sf considerable reduction of space in early Q22018Q3 wasQ4 Q1dueQ2 to Q3theQ4 demolitionQ1 Q2 Q3 ofQ4 theQ1 DallasQ2 Q3 Global Industrial Center’s office portion, Six Flags Entertainment Corp 40,842 1000 Ballpark Way American Airlines HQ 2 – 574,384 sf which is being redeveloped into a new industrialNet Absorption park. Delivered Vacant % SBA 33,000 14951 Kingsport Rd 4151 Amon Carter – 109,188 Universal North America 10,247 4300 Centreway Place 4200 Buckingham – 89,335 SF Rents in Grand Prairie were slow to recover from the downturn. Recent growth has roughly equaled the metro average, and rents Arrow Electronics, Inc 23,228 1401 Nolan Ryan Expy have appreciated more than 15% over the last decade. While sales volume has picked up, inventory turnover is typically about as CTI Foods 12,860 2106 E State Highway 114 slow as leasing activity. MG Bryan Equipment Co 10,100 4441 W Airport Freeway Target 23,885 2208 Highway 121 Leasing At 11.0% the the vacancy rate in Arlington/Mansfield submarket trend below the D-FW metro average of 16.9%. Occupancies didn’t take much of a hit during the downturn, and the submarket has seen steady absorption over the last decade. Though the submarket has experienced negative absorption in recent quarters, there is an almost complete lack of large blocks of space in the submarket. It is rare to find a building with more than 50,000 SF of contiguous availability, and typically, only about five or six assets have more than 25,000 SF available at a given time.
As a small suburban submarket with a stable base of large tenants, vacancies in Grand Prairie have historically trended well below the metro average. In turn, vacany rates have shifted higher, trending above 35%. The current vacany rate is 37.1% . As of early September there has been 26 leases in 2020 totaling 112,500 SF. The largest lease was the U.S. Small Business Administration signed a 33,000 SF lease at 14951 Kingsport Rd in April. JPMorgan Chase’s auto finance group occupies 386,000 SF here, and though the company has not left its location in the submarket, it could potentially move or downsize, shifting employees to its new campus in Legacy West.
The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy thereof. The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy 16 The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. 17
Mid Cities Office
Mid Cities Office
Mid Cities Office Existing Inventory Vacancy Delivered Inventory ExistingUnder ConstructionInventory Vacancy Delivered Inventory Under Construction Quoted Quoted Period Net Absorption Period Under Net Absorption Under Stemmons Freeway Office Net Absorption # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # #Bldgs Bldgs Total RBA VacantRates SF Vacant % # BldgPrestonDelivered Center# OfficeBldgs Vacancy Rates PrestonStemmons Center Office Freeway Net Absorption Office Vacancy Construction Construction 2017 Q2 108 12,022,222 3,154,367 26.2% (8,261)16.0% 0 0 1 414,000 $ 15.00 26.5% 2017 Q2 51 4,674,043 564,449 12.1% (45,059) 0 0 1 173,583 $ 28.06 120,000 500,000 2017 Q3 51 4,674,043 548,944 11.7% 15,505 0 2017 0Q3 1081 12,022,222173,583 3,079,555$ 28.46 25.6% 74,81214.0% 0 0 1 414,000 $ 15.00 100,000 26.0% 400,000 2017 Q4 52 4,847,626 696,251 14.4% 26,276 1 2017173,583 Q4 1080 12,022,2220 3,078,368$ 29.24 25.6% 1,187 0 0 1 414,000 $ 15.01 80,000 Existing Inventory Vacancy 12.0%Delivered Inventory Under Construction 2018 Q1 Existing52 Inventory4,847,626 670,682Vacancy 13.8% 25,569Delivered Inventory0 2018Under 0Q1 Construction1080 12,022,2220 3,111,733$ 29.67 25.9% -33,365 0 0 1 Quoted414,000 $ 15.36 60,000 300,000 Period Quoted Net Absorption 25.5% Period Net Absorption Under Under Preston Center StemmonsOffice Net Absorption Freeway Office Vacancy Stemmons Freeway Office Net Absorption 2018 Q2 # Bldgs52 Total4,847,626 RBA Vacant673,982 SF Vacant %13.9% (3,300)# Bldg Delivered0 2018# Bldgs 0Q2 # Bldgs1090 Total12,436,222 RBARates 0Vacant 3,085,587SF $Vacant 29.58 % 24.8% Preston440,14610.0%# Bldg CenterDelivered Office1 Vacancy# Bldgs414,000 0 Rates 0 $ 15.18 40,000 Construction Construction 200,000 2018 Q3 52 4,847,626 597,288 12.3% 76,694 0 20172018 Q2 0Q3 1081090 12,022,22212,436,22203,154,3673,193,248$ 26.2%28.6416.0%25.7%(8,261) (107,661)0 00 1 0 414,0000 $ 15.00 0 $ 15.2526.5% 20,000 2017 Q2 51 4,674,043 564,449 12.1% (45,059) 0 0 1 173,583 $ 28.06 8.0% 120,000 25.0% 500,000 2017 Q3 108 12,022,222 3,079,555 25.6% 74,812 0 0 1 414,000 $ 15.00 0 100,000 20182017 Q4Q3 5152 4,674,0434,847,626548,944495,737 11.7% 10.2% 15,505 101,551 0 00 20181 0Q4 173,5831090 12,436,222$ 28.460 3,112,397$ 28.7314.0%25.0% 80,851 0 0 0 0 100,000 $ 15.25 6.0% 26.0% (20,000) 400,000 2017 Q4 52 4,847,626 696,251 14.4% 26,276 1 173,583 2017 Q40 1080 12,022,222$ 29.243,078,368 25.6% 1,187 0 0 1 414,000 $ 15.01 80,000 24.5% 2019 Q1 52 4,847,626 543,943 11.2% (48,206) 0 2019 0Q1 1090 12,436,2220 3,082,351$ 29.1312.0%24.8% 30,046 0 0 0 0 $ 15.48 0 PRESTON2018 Q1 CENTER 2018 Q1STEMMONS108 12,022,222 3,111,733 25.9% -33,365 0 FREEWAY0 1 414,000 $ 15.36 60,000 (40,000) 300,000 2019 Q2 5252 4,847,6264,847,626670,682547,291 13.8% 11.3% 25,569 (3,348) 0 00 20190 0Q2 1090 0 12,436,222$ 29.670 3,056,597$ 29.33 24.6% 25,7544.0% 0 0 0 0 $ 15.2825.5% 2018 Q2 109 12,436,222 3,085,587 24.8%10.0% 440,146 1 414,000 0 0 $ 15.18 40,000 (60,000) 2018 Q2 52 4,847,626 673,982 13.9% (3,300) 0 0 0 0 $ 29.58 24.0% 200,000 (100,000) 2019 Q3 52 4,847,626 535,745 11.1% 11,546 0 20182019 Q3 0Q3 1090 12,436,2220 3,097,153$ 29.36 24.9% -40,5562.0% 0 0 0 0 20,000 $ 15.99 (80,000) 2018 Q3 52 4,847,626 597,288 12.3% 76,694 0 0 0 1090 12,436,222$ 28.643,193,248 25.7%8.0% (107,661) 0 0 0 0 $ 15.25 25.0% SUBMARKET2019 Q4 2019 Q4 109 12,436,222 3,162,818 25.4%SUBMARKET-65,665 0 0 0 0 0 $ 15.76 (200,000) 2018 Q4 5252 4,847,6264,847,626495,737630,828 10.2% 13.0% 101,551 (95,083) 0 00 2018 Q400 1090 0 12,436,222$ 28.7303,112,397 $ 25.0%29.18 80,851 0 0 0 0 $ 15.25 (100,000) 100,000 6.0% 0.0% (20,000) 23.5% 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 20202019 Q1 5252 4,847,6264,847,626543,943582,950 11.2% 12.0% (48,206) 47,878 0 00 20192020 Q10 0Q1 1091090 0 12,436,22212,436,222$ 29.1303,082,3513,165,562$ 24.8%28.90 25.5% 30,046 -2,744 0 2017 2017002017 2018 020180 2018 20180 02019 2019$ 15.4820190 2019 2020$ 202015.9824.5%2020 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 (40,000) Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 0Q2 Q3 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 20202019 Q2 5252 4,847,6264,847,626547,291634,963 11.3% 13.1% (3,348) (52,013) 0 00 20192020 Q20 0Q2 1091090 0 12,436,22212,436,222$ 29.3303,056,5973,164,294$ 24.6%29.234.0%25.4% 25,754 1,268 0 Q2 Q3 00Q4 Q1 0 Q20 Q3 Q40 0 Q1 $Q2 15.28Q30 Q4 Q1$ 16.20Q2 Q3 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 (60,000) 24.0% (100,000) 20202019 Q3 5252 4,847,6264,847,626535,745646,618 11.1% 13.3% 11,546 (11,655) 0 00 20192020 Q30 0Q3 1091090 0 12,436,22212,436,222$ 29.3603,097,1533,234,747$ 24.9%29.522.0%26.0%-40,556 -70,4530 00 0 0 0 0 $ 15.99 0 (80,000) $ 17.22 2019 Q4 52 4,847,626 630,828 13.0% (95,083) 0 0 2019 Q40 1090 12,436,222$ 29.183,162,818 25.4% -65,665 0 0 0 0 $ 15.76 (200,000) (100,000) 23.5% 0.0% 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 Q1 52 4,847,626 582,950 12.0% 47,878 0 0 2020 Q10 1090 12,436,222$ 28.903,165,562 25.5% -2,744 0 0 0 0 $ 15.98 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Stemmons Freeway Office Construction Preston Center Overview 2017 2017 2017 2018 2018 2018 2018Preston2019Stemmons2019 Center2019 2019 Freeway2020 Office2020 Overview2020 Quoted Rates Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 PrestonStemmonsQ3 Q4 Q1 CenterQ2 Q3Freeway Office Office Construction Quoted RatesQ2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 Q2 52 4,847,626 634,963 13.1% (52,013) 0 0 2020 Q20 1090 12,436,222$ 29.233,164,294 25.4% Q2 1,268Q3 Q4 Q1 Q20 Q3 Q4 0 Q1 Q2 Q30 Q4 Q1 0 Q2 Q3 $ 16.20 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Preston Center is one of the premier Absorption vs Previous Qtr vs 12 Months Ago Absorption vs Previous Qtr vs 12 Months $30.00 Ago The Stemmons Freeway submarket stretches $17.50 2020 Q3 52 4,847,626 646,618 13.3% (11,655) 0 0 2020 Q30 1090 12,436,222$ 29.523,234,747 26.0% -70,453 0 0 0 0 $ 17.22 10,000,000 10,000,000 submarkets, with a highly educated labor (11,655) -52,013 11,546 (70,453) 1,268 -40,556 from the CBD up to the LBJ Freeway and 9,000,000 9,000,000 pool to draw from in North Dallas. A large Vacancy Farmers Branch. Most major tenants are Preston CenterStemmons Office $17.00 Freeway Construction Office Quoted Rates Stemmons Freeway Office Construction Vacancy vs Previous Qtr vs 12 Months Ago vs Previous Qtr vs 12Preston Months $29.50 Ago Center Office Quoted Rates portion of the tenant base at Preston Center located in the southern portion of the 8,000,000 8,000,000 Absorption13.3% vs Previous13.1% Qtr vs 12 Months Ago11.1% Absorption26.0% vs Previous25.4% Qtr vs$30.00 12 Months Ago24.9% $17.50 10,000,000 $16.50 10,000,000 is made up of financial and professional submarket, near the Southwestern Medical 7,000,000 7,000,000 (11,655)U/C SF vs-52,013 Previous Qtr 11,546vs 12 Months Ago (70,453)U/C SF vs1,268 Previous Qtr -40,556vs 12 Months Ago services firms. The area is also highly $29.00 Center. Medical/healthcare firms account9,000,000 for $17.00 9,000,000 Vacancy vs Previous Qtr vs 12 Months Ago Vacancy vs Previous Qtr vs 12 Months Ago 6,000,000 6,000,000 0 0 0 0 0 $29.50 0 $16.00 8,000,000 amenitized, with 165 restaurants and plenty 26.0% 25.4% 24.9% a significant portion of the submarket’s8,000,000 tenant Delivered13.3% SF 13.1% 11.1% Delivered SF $16.50 5,000,000 5,000,000 of high-end shopping found at the Plaza of vs Previous Qtr vs 12 Months Ago U/C SF vs Previous Qtr vs 12 Months Ago base as well as state and federal agencies.7,000,000 7,000,000 U/C SF vs Previous Qtr vs 12 Months Ago vs Previous Qtr vs 12 Months Ago $28.50 $15.50 Preston Center. At $39.00/SF, the submarket 0 0 0 0 0 $29.00 0 Nearly all new supply comes in the form of 4,000,000 4,000,000 0 0 0 0 0 0 6,000,000 $16.00 6,000,000 boasts the second-highest rents in the Quoted Rates build-to-suits. For example, event services QuotedDelivered Rates SF vs Previousvs Previous Qtr Qtr vs 12 Monthsvs 12 AgoMonths Ago Delivered SF vs Previousvs Previous Qtr Qtr vs 12 Monthsvs 12 Ago Months Ago 5,000,000 3,000,000 $15.00 5,000,000 3,000,000 market, which is impressive, considering that $28.50 $28.00 giant Freeman broke ground headquarters in $15.50 300 0 29 0 29 0 17 0 16 0 16 4,000,000 2,000,000 4,000,000 2,000,000 60% of the building stock was constructed Quoted Rates Quoted Rates vs Previous Qtr vs 12 Months Ago late 2019. The 200,000 SF building will house $14.50 3,000,000 vs Previous Qtr vs 12 Months Ago 3,000,000 $15.00 1,000,000 1,000,000 between 1980 and 1990. The submarket has $28.00 700 of the company’s 7,000 employees. It 30 29 29 17 16 16 $27.50 2,000,000 2,000,000 one of the highest concentrations of 4 & Preston Center Vital Statistics Stemmons Freeway Vital Statistics is expected to be delivered in spring 2021. $14.50 $14.000 0 1,000,000 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 20191,000,0002020 2020 2020 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 5 Star assets, comprising 66% of the total 500,000 26.5%Southwest Airlines completed a 414,000-SF 200,000 Preston Center Vital Statistics 16.0% Stemmons Freeway Vital $27.50Statistics Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 0Q2 Q3 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 $27.00 office building in this submarket in 18Q2. 0 $14.00 $13.50 inventory. 14.0% 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 150,000200,000 16.0% 500,000400,000 26.5% 2017 26.0%2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020Q22020Q3 2020Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q2 $13.50Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 DeliveredQ2 Q3 Under Construction Delivered Under Construction 12.0% $27.00 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 100,000150,000 14.0% 400,000300,000 2017 2017 2017 201826.0%2018 2018 2018 2019The2019 submarket2019 2019 2020boasts2020 several2020 transit 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Leasing 25.5% Q2DeliveredQ3 Q4UnderQ1 ConstructionQ2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Delivered Under Construction 12.0% 10.0% 300,000 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1amenities.Q2 Q3 AsideQ4 Q1 fromQ2 theQ3 Stemmons Preston Center is one of the most core-like 100,00050,000 200,000 25.5% 10.0% submarkets in D-FW, and occupancies rarely 50,000 8.0% 200,000 25.0%Freeway itself, DART provides rail service 0 8.0% 100,000 25.0% at the Southwestern Medical Center that dip below 90%. After a few years of weakness 0 6.0% 100,000 24.5% in 2016 and 2017, occupancies tightened, as (50,000) 6.0% 0 24.5% takes passengers northwest to the D/FW (50,000) 4.0% 0 the recently completed Terraces at Douglas 4.0% 24.0%International Airport or south to Downtown (100,000) 2.0% (100,000)(100,000) 24.0% Center (173,500 SF) leased up. Almost 80% (100,000) 2.0% Dallas. Dallas Love Field Airport, which is of the submarket’s RBA exceeding 50,000 SF (150,000)(150,000) 0.0% 0.0% (200,000)(200,000) 23.5% 23.5%located within the submarket’s boundaries, 20172017201720172017201720182018201820182018 20182018 2019201820192019201920192019201920202019202020202020 2020 2020 2017201720172017201720172018 20182018 2018201820182018201920182019201920192019201920192020 20192020 20202020 2020 2020 is the metroplex’s second-largest airport is 4 & 5 Star, aligning with the rate in both Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q2Q2Q3 Q3Q4 Q4Q1 Q1Q2 Q3Q2 Q4Q3 Q1Q4Q2 Q1Q3 Q2Q4 Q3Q1 Q2Q4 Q3Q1 Q2 Q3 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 behind D/FW. The airport has seen passenger Uptown/Turtle Creek and the Dallas CBD. NetNet Absorption Absorption DeliveredDelivered Vacant % Vacant % Net NetAbsorption Absorption DeliveredDelivered Vacant % Vacant % Metro-wide, the figure is less than 50%. traffic double since the repeal of the Wright Amendment in 2014, increasing the viability The tenant base in Preston Center mostly of development nearby. Despite older, consists of financial and professional services low-quality inventory and structurally high firms, and most of these tenants have a small vacancies, there is potential for growth here. footprint—only about a dozen companies occupy more than 25,000 SF in the submarket. Furthermore, large blocks of available KDC’s West Love mixed-use development is helping breathe life into the area of the submarket just south of Love Field, and the space are rare. Coworking has found its way to Preston Center, WeWork has a major presence in the submarket, signing a 50,000 Design District is well on its way to becoming a true live/work/play environment, spurred by multifamily development and major SF lease in early 2019. They moved into two floors of 171,500 SF, The Terraces of Douglas Center. WeWork also signed a 71,000 SF investments from Dunhill Partners and other developers. lease at Weir’s Plaza in July 2019, taking three floors of the 12 story building, currently under construction -Weir’s Plaza, with an expected delivery date of November 2021. Leasing At 22.0%, the vacancy rate in the Stemmons Freeway Submarket is structurally higher than the metro average of 16.9%. Vacancies have maintained a downward trend for many years and are now slightly below the submarket’s historical average.
The tenant profile in Stemmons Freeway is heavily weighted towards government and medical firms. Some of the larger office users include the FBI, the DEA, and the Dallas County government, as well as UT Southwestern and Parkland Hospital. This provides a steady base of stable tenants, and though big deals from corporate tenants are rare, the submarket can benefit from a government agency or medical tenant expansions. For example, Dallas County took 55,000 SF at 1300 W. Mockingbird in early Movers & Shakers Largest Vacancies: 2019. Moves from healthcare-related tenants have also driven absorption. Tenant SF Building 8333 Douglas at Douglas Center – 54.529 sf Regus 12,580 5956 Sherry Lane Preston Commons East Tower – 46,067 sf Enterhealth 6,731 8222 Douglas Avenue Bluffview Towers – West – 44,993 sf Movers & Shakers Largest Vacancies: Ameriprise 10,844 5960 Berkshire Lane Tenant SF Building Pegasus Place – The Tower – 523,270 sf Amegy Bank 4,437 3100 Monticello Avenue Dermpath Diagnostics 32,348 2110 Research Row 1950 N Stemmons Fwy – 159,063 sf Rimrock Energy Datum Engineers 9,400 1420 W Mockingbird Ln Comerica Service Center – 142,600 sf Partners 4,102 8222 Douglas Ave Jackson Construction 7800 Ricchi Tower – 139,842 sf Co 6,257 10939 Shady Trail Member’s Bldg LLC 5,503 2035 Royal Lane
The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy thereof. The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy 18 The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. 19
Preston Center Stemmons Freeway
Preston Center Stemmons Freeway Existing Inventory Vacancy Delivered Inventory Under Construction Quoted Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Rates Richardson / Plano Office Vacancy Richardson / Plano Office Net Absorption Construction 21.5% 2017 Q2 344 29,115,157 5,910,170 20.3% 61,997 0 0 12 1,125,121 $ 19.49 600,000 2017 Q3 345 29,428,157 6,024,898 20.5% 198,272 1 313,000 12 827,306 $ 20.02 21.0% 2017 Q4 351 29,954,977 5,986,341 20.0% 565,377 6 526,820 7 338,417 $ 20.03 400,000 Existing Inventory Vacancy Delivered Inventory Under Construction 20.5% 2018 Q1 355 30,107,709 5,794,624 19.2% 344,449 4 152,732 4 Quoted245,910 $ 19.03 Period Net Absorption Under 200,000 2018 Q2 # Bldgs358 Total30,293,394 RBA Vacant5,839,362 SF Vacant % 19.3% 140,947# Bldg Delivered3 # Bldgs185,685 1 Rates60,225 $ 18.77 Richardson / Plano Office Vacancy Richardson / Plano Office Net Absorption Construction 20.0% 2018 Q3 358 30,293,394 6,288,214 20.8% (448,852) 0 0 2 85,225 $ 18.7821.5% 2017 Q2 344 29,115,157 5,910,170 20.3% 61,997 0 0 12 1,125,121 $ 19.49 600,000 0 19.5% 20172018 Q3 Q4 345358 29,428,15730,293,3946,024,8986,428,66920.5% 21.2%198,272 (140,455)1 313,0000 12 0 827,3062 $ 20.0285,225 $ 18.8421.0% 20172019 Q4 Q1 351359 29,954,97730,353,6195,986,3416,120,14720.0% 20.2%565,377 368,7476 526,8201 60,2257 338,4171 $ 20.0325,000 $ 18.69 400,000 (200,000) 20.5% 19.0% 20182019 Q1 Q2 355360 30,107,70930,378,6195,794,6246,112,88919.2% 20.1%344,449 27,198 4 152,7321 25,0004 245,9101 $ 19.03100,000 $ 18.54 RICHARDSON/PLANO RICHARDSON/PLANO200,000 (400,000) 2018 Q2 358 30,293,394 5,839,362 19.3% 140,947 3 185,685 1 60,225 $ 18.77 2019 Q3 360 30,378,619 5,850,906 19.3% 261,983 0 0 1 100,000 $ 18.5020.0% 18.5% 2018 Q3 358 30,293,394 6,288,214 20.8% (448,852) 0 0 2 85,225 $ 18.78 0 2019 Q4 360 30,378,619 6,367,560 21.0% (516,654) 0 0 1 100,000 $ 18.17 (600,000) 2018 Q4 358 30,293,394 6,428,669 21.2% (140,455) 0 0 2 85,225 $ 18.84 19.5% SUBMARKET SUBMARKET18.0% 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 20192020 Q1 Q1 359360 30,353,61930,378,6196,120,1476,234,12320.2% 20.5%368,747 133,4371 60,2250 1 0 25,0001 $ 18.69100,000 $ 18.42 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019(200,000)2019 2020 2020 2020 19.0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 20192020 Q2 Q2 360360 30,378,61930,378,6196,112,8896,172,68320.1% 20.3%27,198 61,440 1 25,0000 1 0 100,0002 $ 18.54148,000 $ 18.52 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 (400,000) 20192020 Q3 Q3 360361 30,378,61930,478,6195,850,9066,365,87119.3% 20.9%261,983 (93,188)0 01 100,0001 100,0001 $ 18.5048,000 $ 18.4118.5% 2019 Q4 360 30,378,619 6,367,560 21.0% (516,654) 0 0 1 100,000 $ 18.17 (600,000) 18.0% 2020 Q1 360 30,378,619 6,234,123 20.5% 133,437 0 0 1 100,000 $ 18.42 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2017 2017 2017 2018 2018 2018 2018Richardson/Plano2019 2019 2019 2019 2020 Office2020 2020 Quoted RatesQ2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2RichardsonQ3 Q4 Q1 Q2 / PlanoQ3 Office Construction Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Existing Inventory2020 Q2 360Vacancy 30,378,619 6,172,683 Delivered20.3% Inventory 61,440Under Construction0 0 2 148,000 $ 18.52 Richardson/Plano Overview Absorption vs Previous Qtr vs 12 Months Ago Quoted $20.50 Period 2020 Q3 361 30,478,619Net Absorption6,365,871 20.9% (93,188) Under 1 100,000 1 48,000 $ 18.41 Richardson / Plano Office Net Absorption Richardson is the home of the Telecom # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Rates Richardson / Plano Office Vacancy 10,000,000 (93,188) 61,440 261,983Construction 2017 Q2 344 29,115,157 5,910,170 20.3% 61,997 0 0 12 1,125,121 $ 19.49 21.5% 9,000,000 Corridor, which contains a number of Vacancy Richardson/Plano $20.00600,000 Office Quoted Rates Richardson / Plano Office Construction 2017 Q3 vs Previous Qtr vs 12 Months Ago the world’s largest telecommunications 345 29,428,157 6,024,898 20.5% 198,272 1 313,000 12 827,306 $ 20.02 21.0% 8,000,000 2017 Q4 351 29,954,977Absorption5,986,34120.9% 20.0% vs Previous565,37720.3% Qtr 6 vs526,820 12 Months Ago719.3% 338,417 $ 20.03 $20.50 400,000 10,000,000 companies, Texas Instruments, Cisco,2018 Q1 355 30,107,709 5,794,624 19.2% 344,449 4 152,732 4 245,910 $ 19.03 20.5% $19.50 7,000,000 (93,188)U/C SF 61,440vs Previous Qtr 261,983vs 12 Months Ago 200,000 and Fujitsu Network Communications,2018 Q2 358 30,293,394 5,839,362 19.3% 140,947 3 185,685 1 60,225 $ 18.77 9,000,000 Vacancy48,000 vs Previous148,000 Qtr vs 12 Months Ago100,000 20.0% $20.00 6,000,000 2018 Q3 358 30,293,394 6,288,214 20.8% (448,852) 0 0 2 85,225 $ 18.78 0 to name a few. Despite the moniker, 20.9% 20.3% 19.3% $19.00 8,000,000 2018 Q4 358 30,293,394Delivered6,428,669 SF 21.2% vs(140,455) Previous Qtr0 0 vs 12 2Months 85,225Ago $ 18.84 19.5% 5,000,000 Richardson has a diverse tenant $19.50 7,000,000 2019 Q1 359 30,353,619 U/C6,120,147 SF 20.2% vs Previous368,747 Qtr 1 vs 60,22512 Months Ago1 25,000 $ 18.69 (200,000) 100,000 0 0 19.0% 4,000,000 base, with healthcare and insurance2019 Q2 360 30,378,619 48,0006,112,889 20.1% 148,00027,198 1 25,000100,000 1 100,000 $ 18.54 $18.50 6,000,000 Quoted Rates $19.00 (400,000) firms taking up a large portion of2019 the Q3 360 30,378,619Delivered5,850,906 SF 19.3% vs Previousvs261,983 Previous Qtr Qtr0 vs 120 Monthsvs 12 Ago 1Months 100,000Ago $ 18.50 18.5% 5,000,000 3,000,000 2019 Q4 360 30,378,619 6,367,560 21.0% (516,654) 0 0 1 100,000 $ 18.17 (600,000) submarket’s office space. The submarket 100,00018 0 19 0 19 18.0% 4,000,000 2,000,000 2020 Q1 360 30,378,619 6,234,123 20.5% 133,437 0 0 1 100,000 $ 18.42 $18.50 $18.00 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Quoted Rates vs Previous Qtr vs 12 Months Ago 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 provides a highly talented laborforce2020 Q2 to 360 30,378,619 6,172,683 20.3% 61,440 0 0 2 148,000 $ 18.52 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 3,000,000 1,000,000 draw from, with 58% of the population2020 Q3 361 30,478,619 6,365,87118 20.9% (93,188)19 1 100,00019 1 48,000 $ 18.41 Richardson/Plano Vital Statistics $18.00 $17.50 2,000,000 0 holding a bachelor’s degree or higher. 1,000,000 800,000 21.5% Richardson/Plano Office Quoted Rates Richardson / Plano Office Construction 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Richardson/Plano Vital Statistics $17.50 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Absorption vs Previous Qtr vs 12 Months Ago $20.50 $17.00 800,000600,000 21.5% 21.0% 10,000,000 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 20202017 20172020201720202018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 CityLine has garnered most of the (93,188) 61,440 261,983 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 $17.00 9,000,000 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Delivered Under Construction headlines in recent years with build-to-Vacancy 600,000vs400,000 Previous Qtr vs 12 Months Ago 21.0% 20.5% $20.00 2017 2017 2017 20188,000,0002018 2018 2018 2019 2019 2019 2019 2020 2020 2020 suits for State Farm (2 million SF) and20.9% 20.3% 19.3% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Delivered Under Construction U/C SF 400,000200,000 20.5% 20.0% $19.50 7,000,000 Raytheon (500,000 SF) opening a few vs Previous Qtr vs 12 Months Ago 48,000 200,000148,000 100,000 20.0% 6,000,000 0 19.5% $19.00 years ago to go along with thousandsDelivered SF vs Previous Qtr vs 12 Months Ago 5,000,000 0 19.5% 100,000 0 0 4,000,000 of new apartments and retail. The first (200,000) 19.0% $18.50 speculative building at CityLine, 3400Quoted Rates (200,000)vs Previous Qtr vs 12 Months Ago 19.0% 3,000,000 18 (400,000)19 19 18.5% CityLine, was delivered in July 2017, but (400,000) 18.5% $18.00 2,000,000 1,000,000 has only recently started to see an uptick (600,000) 18.0% Richardson/Plano(600,000) Vital Statistics 18.0% $17.50 0 2017201720172017201720172018 20182018 2018201820182018201920182019201920192019201920192020 20192020 20202020 2020 2020 in leasing activity. The submarket800,000 also 21.5% 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Q2Q2Q3 Q3Q4 Q4Q1 Q1Q2 Q3Q2 Q4Q3 Q1Q4Q2Q1Q3 Q2Q4 Q3Q1 Q4Q2 Q3Q1 Q2 Q3 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 $17.00 benefits from DART access: Four600,000 DART Net NetAbsorption Absorption Delivered21.0% Delivered Vacant % Vacant % 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Delivered Under Construction rail stations are located here, more400,000 than 20.5% any other suburban office submarket200,000 in 20.0% the metroplex. 0 19.5% (200,000) 19.0% Leasing (400,000) 18.5% the newly renovated Legacy Central. Samsung moved into 216,000 SF at Legacy Central in early 2019. In mid-2019, an CityLine, particularly State Farm’s(600,000) build-to-suit campus, has garnered many headlines18.0% and good reason. State Farm 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 undisclosed tenant signed a 108,000 SF lease in the same park, with an estimated move-in date of March 2020. (roughly 2 million SF) and Raytheon (nearlyQ2 Q3 500,000Q4 Q1 Q2SF)Q3 representedQ4 Q1 Q2 Q3 a 12%Q4 Q1 increaseQ2 Q3 in the submarket’s occupied square footage. More businesses are likely to wantNet to Absorption locate here asDelivered CityLine continuesVacant % to become more urbanized, boasting high- end retail and new apartments over the long term. Tenants looking for larger space in Richardson will find that CityLine contains plenty of room to construct additional build-to-suits. In terms of speculative deals in CityLine, Transwestern Dallas and Malouf Interests completed the first multi-tenant property in the building park, 3400 CityLine. The 313,000-SF project delivered 100% vacant in July 2017. The asset remained vacant for more than a year after delivery but has been leasing up. The leases were headlined by DXC Technology, which signed for roughly 100,000 SF in early 2019 and Generational Group, which took 31,000 SF in late 2018.
Plenty of large blocks are on the market, and many landlords are reportedly fishing for single-tenant users. Through mid- Movers & Shakers Largest Vacancies: 2019, roughly 12 properties had more than 100,000 SF of contiguous space available, and just under 17 buildings had more Tenant SF Building 601 Data Dr – 423,123 sf than 50,000 SF. One potential downside to leasing here is that large tenants often prefer new build-to-suits over existing Sigmetrix 24,126 5900 S Lake Forest Dr 465 Independence Pky – 251,347 sf space in the northern Dallas suburbs. US General Services Legacy Central 2 – 228,230 sf Administration 12,323 660 N Central Expressway The Tower Lakeside Campus – 183,475 sf The Plano office submarket has not experienced the same type of growth as its neighbors over the last decade. 2200 George Bush – 176,831 sf 1125 E Campbell Rd – 175,525 sf Most northern Dallas suburbs have enjoyed explosive job growth, coupled with strong absorption and plenty of new construction; meanwhile, the Plano Submarket has been relatively quiet. The submarket has performed in a counter-cyclical fashion, with vacancies rising until recently. In the last year, there have been three leases over 20,000 SF, all located within Hall Park. Despite recent move-outs, there has been some positive leasing momentum in the submarket, especially at
The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy thereof. The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy 20 The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. 21
Richardson_Plano
Richardson_Plano
Richardson_Plano Existing Inventory Vacancy Delivered Inventory Under Construction Quoted Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Rates Uptown / Turtle Creek Office Vacancy Uptown / Turtle Creek Office Net Absorption Construction 20.0% 2017 Q2 88 11,920,937 1,516,353 12.7% (13,140) 0 0 5 1,300,305 $ 27.95 300,000 2017 Q3 88 11,920,937 1,515,399 12.7% 954 0 0 5 1,300,305 $ 28.26 18.0% 200,000 2017 Q4 88 11,920,937 1,518,605 12.7% (3,206) 0 0 5 1,300,305 $ 28.48 16.0% Existing Inventory Vacancy Delivered Inventory Under Construction Quoted 100,000 2018Period Q1 88 11,920,937 1,546,002 13.0%Net Absorption(27,397) 0 0 Under5 1,300,305 $ 28.99 14.0% # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Rates Uptown / Turtle Creek Office Vacancy Uptown / Turtle Creek Office Net Absorption 2018 Q2 89 12,415,237 1,971,001 15.9% (424,999) 1 494,300 Construction4 806,005 $ 29.22 12.0% 0 2017 Q2 88 11,920,937 1,516,353 12.7% (13,140) 0 0 5 1,300,305 $ 27.95 20.0% 2018 Q3 90 12,545,237 1,977,589 15.8% 123,412 1 130,000 3 676,005 $ 29.88 10.0% 300,000 (100,000) 2017 Q3 88 11,920,937 1,515,399 12.7% 954 0 0 5 1,300,305 $ 28.26 18.0% 2018 Q4 92 13,000,694 2,209,250 17.0% 223,796 2 455,457 2 512,589 $ 29.83 200,000 2017 Q4 88 11,920,937 1,518,605 12.7% (3,206) 0 0 5 1,300,305 $ 28.48 16.0% 8.0% (200,000) 2019 Q1 92 13,000,694 2,212,499 17.0% (3,249) 0 0 2 512,589 $ 30.07 UPTOWN/TURTLE2018 Q1 88 11,920,937 1,546,002 CREEK13.0% (27,397) 0 0 UPTOWN/TURTLE5 1,300,305 $ 28.99 14.0% 6.0% CREEK100,000 (300,000) 2019 Q2 92 13,000,694 2,085,273 16.0% 127,226 0 0 2 512,589 $ 30.64 2018 Q2 89 12,415,237 1,971,001 15.9% (424,999) 1 494,300 4 806,005 $ 29.22 12.0% 4.0% 0 20192018 Q3Q3 93 13,221,242 2,089,232 15.8% 216,589 1 220,548 2 656,774 $ 30.87 (400,000) SUBMARKET90 12,545,237 1,977,589 15.8% 123,412 1 130,000 3 676,005 $ 29.88 10.0% SUBMARKET2.0% (100,000) 20192018 Q4Q4 9293 13,000,69413,221,2422,209,2501,974,21817.0% 14.9% 223,796 115,014 2 455,4570 2 0 512,5892 $ 29.83656,774 $ 31.158.0% (500,000) 0.0% (200,000) 20202019 Q1Q1 9293 13,000,69413,221,2422,212,4992,158,70617.0% 16.3% (3,249) (184,488)0 0 2 0 512,5892 $ 30.07656,774 $ 31.49 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 6.0% 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019(300,000)2019 2020 2020 2020 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 Q2 92 13,000,694 2,085,273 16.0% 127,226 0 0 2 512,589 $ 30.64 2020 Q2 93 13,221,242 2,200,041 16.6% (41,335) 0 0 2 656,774 $ 30.984.0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 Q3 93 13,221,242 2,089,232 15.8% 216,589 1 220,548 2 656,774 $ 30.87 (400,000) 2020 Q3 93 13,221,242 2,429,348 18.4% (229,307) 0 0 2 656,774 $ 31.002.0% 2019 Q4 93 13,221,242 1,974,218 14.9% 115,014 0 0 2 656,774 $ 31.15 (500,000) 0.0% 2020 Q1 93 13,221,242 2,158,706 16.3% (184,488) 0 0 2 656,774 $ 31.49 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Existing Inventory Vacancy Delivered Inventory Under Construction 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Uptown / Turtle Creek Overview Quoted Q2 Q3 Q4 Q1 Q2 Q3UptownQ4 Q1 / Q2TurtleQ3 Q4CreekQ1 Q2 OfficeQ3 Quoted Rates Uptown / Turtle Creek Office Construction Period 2020 Q2 93 13,221,242Net Absorption2,200,041 16.6% (41,335) Under 0 0 2 656,774 $ 30.98 # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Rates Uptown / Turtle Creek Office Vacancy Uptown / Turtle Creek Office Net Absorption Uptown/Turtle Creek is the premier office 2020 Q3Absorption93 13,221,242vs Previous2,429,348 Qtr 18.4% vs(229,307) 12 MonthsConstruction Ago 0 0 2 656,774 $ 31.00 $32.00 2017 Q2 88 11,920,937 1,516,353 12.7% (13,140) 0 0 5 1,300,305 $ 27.95 20.0% 10,000,000 submarket in Dallas-Fort Worth, boasting 300,000 2017 Q3 88 11,920,937 1,515,399(229,307)12.7% 954 -41,3350 0 5 216,5891,300,305 $ 28.26 18.0% the highest rents in the metro. However, Uptown / Turtle200,000 Creek Office Quoted Rates Uptown / Turtle Creek9,000,000 Office Construction 2017 Q4 88 11,920,937 1,518,605Vacancy12.7% (3,206)vs Previous0 Qtr 0 vs5 12 Months1,300,305 Ago $ 28.48 16.0% $31.00 2018 Q1 88 11,920,937 1,546,002Absorption 13.0% vs(27,397) Previous Qtr 0 0vs 12 Months5 Ago 1,300,305 $ 28.99 14.0% $32.00 100,000 8,000,000 the submarket will likely feel the impact 18.4% 16.6% 15.8% 10,000,000 2018 Q2 89 12,415,237 1,971,001(229,307) 15.9% (424,999)-41,335 1 494,300 216,5894 806,005 $ 29.22 12.0% 0 of the coronavirus pandemic over the U/C SF 7,000,000 2018 Q3 90 12,545,237 1,977,589 15.8% 123,412vs Previous1 Qtr 130,000 vs3 12 Months676,005 Ago $ 29.88 10.0% (100,000) 9,000,000 Vacancy vs Previous Qtr vs 12 Months Ago $31.00 $30.00 next few months, though the full2018 scopeQ4 92 13,000,694 2,209,250 17.0% 223,796 2 455,457 2 512,589 $ 29.83 8,000,000 6,000,000 656,77418.4% 16.6%656,774 15.8% 656,774 8.0% (200,000) 2019 Q1 92 13,000,694 2,212,499 17.0% (3,249) 0 0 2 512,589 $ 30.07 of any potential downturn is uncertain at Delivered SF 6.0% (300,000) 7,000,000 5,000,000 2019 Q2 92 13,000,694 2,085,273U/C SF 16.0% vs127,226 Previousvs Previous Qtr 0 Qtr 0vs 12 Monthsvs2 12 Ago Months512,589 Ago $ 30.64 this point. 4.0% $30.00 $29.00 2019 Q3 93 13,221,242 2,089,232656,7740 15.8% 216,589656,774 0 1 220,548 656,7742 220,548656,774 $ 30.87 (400,000) 6,000,000 4,000,000 2.0% 2019 Q4 93 13,221,242 1,974,218Delivered SF14.9% 115,014 0 0 2 656,774 $ 31.15 (500,000) 5,000,000 Quoted Rates vs Previousvs Previous Qtr Qtr vs 12 Monthsvs 12 Ago Months Ago 0.0% 3,000,000 2020 Q1 93 13,221,242 2,158,706 16.3% (184,488) 0 0 2 656,774 $ 31.49 $29.00 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 The area is still one of the most sought 0 0 220,548 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 $28.00 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 4,000,000 2020 Q2 93 13,221,242 2,200,04131 16.6% (41,335) 31 0 0 2 31656,774 $ 30.98 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2,000,000 Quoted Rates vs Previous Qtr vs 12 Months Ago 3,000,000 after areas of the metroplex, offering2020 Q3 all93 13,221,242 2,429,348 18.4% (229,307) 0 0 2 656,774 $ 31.00 $28.00 1,000,000 of the transportation, infrastructure, and 31 31 31 2,000,000 Uptown / Turtle Creek Vital Statistics Uptown / Turtle Creek Office Quoted Rates $27.00Uptown / Turtle Creek Office Construction amenity advantages of a central business 1,000,000 0 Absorption vs Previous Qtr Uptownvs 12 Months / AgoTurtle Creek Vital Statistics $32.00 $27.00 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 district but has newer stock than the 600,000 20.0% 10,000,000 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 (229,307) -41,335 216,589 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 600,000 20.0% 18.0% 9,000,000 $26.00 neighboring Dallas CBD. The area isVacancy the vs Previous Qtr vs 12 Months Ago $31.00 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020Q22020Q3 2020Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 400,000 $26.00 8,000,000 18.4% 16.6% 15.8% 18.0% 16.0% Delivered Under Construction premier live/work/play environment, 400,000 2017 2017 2017 2018 2018 2018Q2 2018Q3 2019Q42019Q12019Q22019 Q32020 2020Q4 2020Q1 Q2 Q3 Q4 Q1 Q2 Q3 U/C SF vs Previous Qtr vs 12 Months Ago 16.0% 14.0% 7,000,000 Delivered Under Construction home to over 200 restaurants, and 200,000 $30.00 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 656,774 656,774200,000 656,774 14.0% 12.0% 6,000,000 160 shops, making it one of the mostDelivered SF vs Previous Qtr0 vs 12 Months Ago 12.0% 10.0% 5,000,000 0 10.0% $29.00 pedestrian-friendly places in Texas. 0 0 220,548 8.0% 4,000,000 Quoted Rates vs Previous(200,000) Qtr vs 12 Months Ago 8.0% 3,000,000 Nearly 75% of the submarket’s office (200,000) 6.0% $28.00 31 31 31 6.0% 2,000,000 4.0% product is 4 & 5 Star, and several (400,000)(400,000) 4.0% 1,000,000 2.0% $27.00 buildings are considered trophy assets. Uptown / Turtle Creek Vital Statistics 2.0% 0 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 600,000 (600,000)(600,000) 20.0% 0.0% 0.0% The tenant base is primarily comprised 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2017 2017 2018 2018 201818.0%2018 2019 2019 2019 2019 2020 2020 2020 $26.00 400,000 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 of law firms, financial firms, and other Q2 Q3 Q4 Q1 Q2 16.0%Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Delivered Under Construction Net Absorption Delivered Vacant % Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 professional services companies.200,000 All Net Absorption 14.0% Delivered Vacant % 12.0% of these factors, coupled with land0 10.0% 8.0% constraints that are unique to this(200,000) area, 6.0% make Uptown/Turtle Creek an attractive(400,000) 4.0% 2.0% submarket for institutional investors.(600,000) 0.0% as well. As the buildings in the CBD continue to improve through renovations and the construction of parking 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 structures, they will become increasingly competitive. Leasing Net Absorption Delivered Vacant % Occupancies tend to be much healthier in Uptown/Turtle Creek than in the overall Dallas-Fort Worth market, with the spread averaging about 300 basis points for most of this the last decade. After this most recent round of spec supply, there are two significant projects in the pipeline. Construction is underway on Hillwood’s Victory Commons, and Kaizen Development Partners’ The Link. The two buildings will add a combined 656,700 SF to the submarket.
Uptown/Turtle Creek commands a significant premium to the CBD, partly due to asking rents on newer buildings. But another significant factor is the lack of parking found in the buildings in the CBD. Although DART runs through the Movers & Shakers Largest Vacancies: CBD, a lack of parking can significantly affect an asset’s trajectory. Average parking ratios in Uptown (roughly three Tenant SF Building 2401 Cedar Springs Rd – 208,137 sf spaces per 1,000 SF), while not high relative to suburban Dallas-Fort Worth submarkets, are nearly double those in Leo A Daly 22,000 3232 McKinney Avenue Parkside Tower – 160,125 sf the CBD (1.5 per 1,000 SF). American Board of The Centrum – 138,073 sf Obstetrics 17,522 2828 Routh Street 2501 Cedar Springs Rd – 110,415 sf When many of these 1980s-vintage buildings were built, there was a sea of vacant land for surface parking. JP Gables Residential 14,568 3811 Turtle Creek Blvd Morgan Chase has added more than 2,000 parking spaces to the lot adjacent to the Trammell Crow Center as part of Titanium Exploration a significant renovation. This expanded parking is cited as one of the reasons why the building was able to retain the Partners 10,757 2000 McKinney Ave law firm Vinson & Elkins, which was once slated to move to The Union in Uptown.
It also helped attract Goldman Sachs, which relocated its regional operations from Irving to the building in early 2018. A few blocks away, Fountain Place recently added a 1,500-space parking garage to help attract and retain tenants
The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy thereof. The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy 22 The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. 23
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