Shorenstein has acquired the 388,000-square-foot Worldwide Plaza II, a 15-story workplace tower in north Dallas, from Taconic Capital, which tapped JLL to market the constructing earlier this yr.
Taconic acquired the property in 2018, largely as vacant area that had beforehand been occupied by JPMorgan Chase and Fannie Mae. The investor spent about $26 million to make renovations to the property, which had been accomplished in 2020. Because the first quarter of 2020, about 360,000 sq. toes has been leased at Worldwide Plaza II.
The constructing’s upgrades included the addition of about 50,000 sq. toes of latest amenity area, equivalent to a full-floor meals corridor, a espresso and wine bar, indoor and outside tenant lounges, and health and convention facilities. A newly constructed occasion heart, Lake Home, provides each indoor and outside settings for tenant occasions.
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Worldwide Plaza II is 93 p.c occupied, properly above the typical for the DFW workplace market, with its remaining area on supply for $45 per sq. foot. That’s above the North Tollway space common of about $32 per sq. toes.
Tenants on the property embrace Interstate Batteries, occasion providers agency Freeman and the accountancy Forvis. Not one of the seven leases at the moment in place on the constructing expire within the subsequent 12 months, CommercialEdge exhibits. The leases—with an 11-year weighted lease time period—present a sturdy money movement stream, in keeping with ready remarks from Colby Wick, managing director at Shorenstein.
The constructing, on one acre at 14221 Dallas Parkway, got here on-line in 2000, and features a multilevel parking construction with 1,624 areas.
DFW workplace nonetheless smarting
In the course of the second quarter of 2024, Dallas-Fort Price workplace recorded 125,700 sq. toes of adverse absorption, in keeping with Colliers, a sign that demand remains to be struggling postpandemic. A yr in the past, demand was even weaker: Within the second quarter of 2023, adverse absorption got here in at 313,300 sq. toes.
Colliers places the market emptiness charge at 21.0 p.c as of final quarter, up from 20.3 p.c a yr earlier, although Class A buildings proceed to have the sting relating to attracting tenants. Rents on common are declining, down 0.32 p.c quarter-over-quarter.
In response to weak metrics, DFW workplace improvement has slowed. Solely 600,000 sq. toes was delivered in the course of the second quarter of 2024, in contrast with 1.5 million throughout the identical quarter a yr earlier.
