Royal Ridge II. Image courtesy of JLL
Menlo Equities has landed a tenant for Royal Ridge II, an approximately 103,000-square-foot office building in Irving, Texas. Texas AirSystems signed a full-building lease at the property.
JLL negotiated the agreement on behalf of the owner, which acquired the asset from Accesso Partners in 2021, CommercialEdge data shows. Stream Realty Partners represented the tenant, a manufacturer of HVAC systems. The deal represents a relocation for Texas AirSystems, which has been aiming to solidify its presence in the Dallas-Fort Worth market, Vice President Tony Tanzillo said in prepared remarks.
READ ALSO: What’s Ahead for the Office Sector in 2023
Located at 8081 Royal Ridge Parkway, the two-story office building features two passenger elevators, 51,761-square-foot floorplates and 621 parking spots, according to CommercialEdge. Menlo Equities recently completed its renovation plan for Royal Ridge I and II. The assets now include an outdoor kitchen area with seating, walking paths, green spaces and a pavilion, as well as newly upgraded tenant lobbies and restrooms.
Situated on a 7.5-acre lot, Royal Ridge II is close to State Highway 114 and Interstate 635, 4 miles from Dallas-Fort Worth International Airport, 16 miles from downtown Dallas and within 30 miles of downtown Fort Worth, Texas. Additionally, the property is close to multiple retail and dining options, such as Kroger, Target or Irving Towne Center.
JLL Vice President Michael Williams and Senior Managing Director John Brownlee represented Menlo Equities, while Stream Managing Director & Partner Ryan Boozer, together with Managing Director Dan Harris negotiated on behalf of the new tenant.
An office market with strong fundamentals
CommercialEdge data shows that, despite challenging times, Dallas-Fort Worth’s office market showed good fundamentals throughout 2022. The metro’s 6.2 percent growth in office-using jobs, on a year-over-year basis, was the nation’s highest. This fueled the market’s development pipeline, resulting in nearly 3.1 million square feet of space completed last year, securing a place into the top 10 U.S. markets for office deliveries.
The Metroplex’s office vacancy was set at 17.2 percent in April, according to a recent CommercialEdge report. The metro ranked second after Charlotte at 11.8 percent, but was surpassed by Austin at 22.0 percent.
Recent deals in the area include Taconic Capital Advisors’ 30,650-square-foot lease with Forv/s, at its 388,432-square-foot International Plaza 2 in Dallas. The law firm’s full-floor commitment brought the property to 93 percent occupancy.
In February, Lightbeam Health Solutions signed a 33,000-square-foot lease at Cypress Waters, a 300,000-square-foot office property in Coppell, Texas. JLL assisted the tenant in its headquarters relocation process.
