2Q 2019 DFW Office Market Brief

Market Brief... Dallas/Fort Worth

OFFICE

2Q19 Property Pictured Above: 10000 NCX - 10000 N Central Expressway | Dallas, Texas 75231

DFW OFFICE MARKET BRIEF 2Q 2019

TABLE OF CONTENTS 1. DALLAS/FORT WORTH OFFICE TEAM AND SUBMARKETS

1 2 3

2. OVERALL DALLAS/FORT WORTH OFFICE MARKET

A. Facts and Figures

2. SUBMARKET INTELLIGENCE

A. Dallas Central Business District

B. Central Expressway C. Far North Dallas D. Fort Worth Central Business District E. Las Colinas F. LBJ G. Mid Cities H. North Fort Worth I. Preston Center J. Richardson/Plano K. Southwest Fort Worth L. Stemmons M. Uptown/Turtle Creek

1

DFW

HLC SUBMARKET COVERAGE

2

HLC DFW OFFICE MARKET EXPERTS

MATT CARTHEY

GEOFF SHELTON

HOLDEN LUNSFORD

JOHN DICKENSON

DAVID CASON

Partner/Managing Principal - Fort Worth mcarthey@hlfortworth.com 817.710.1111

Managing Principal - Fort Worth gshelton@hlfortworth.com 817.710.1113

Partner/Managing Principal - Dallas holdenlunsford@hldallas.com 972.381.3218

Managing Principal - Dallas jdickenson@hldallas.com 972.421.1971

Vice President - Fort Worth dcason@hlfortworth.com 817.810.9137

JAMES ENGELS

BRANDON AVEDIKIAN

JAKE NEAL

MARSHALL MAYS

DAN POND

Market Director - Dallas jengels@hldallas.com 972.280.8307

Market Director - Dallas bavedikian@hldallas.com 972.280.8302

Market Associate - Fort Worth jneal@hlfortworth.com 817.284.5555

Market Associate - Fort Worth mmays@hlfortworth.com 817.632.6150

Market Associate - Dallas dpond@hldallas.com 972.380.3641

DYLAN SHAPIRO

MASON PRITCHER

ALAN ROSE

Market Associate - Dallas dshapiro@hldallas.com 972.381.3219

Market Analyst - Dallas mpricher@hldallas.com 972.280.8320

Market Associate - Fort Worth arose@hlfortworth.com 817.632.6155

3

NEW LISTING

Main Place: 42,913 SF Class A office building in Fort Worth CBD.

4

3909 HULEN

PRESTONWOOD CREEK

NEW LISTING

Prestonwood Creek: 134,595 SF Class B two-building office complex in the Quorum/Bent Tree Submarket.

5

HLC DFW OFFICE OVERALL MARKET

VACANCY - OVERALL DFW

CONSTRUCTION - OVERALL DFW 20.00%

18.80%

17.80%

10,000,000

18.00% 17.8%

17.1%

9,000,000

16.00%

8,000,000

14.00%

7,000,000

12.00%

1.10%

0.60%

2Q 16

3Q 16

4Q 16

1Q 17

2Q 17

3Q 17

Direct Vacancy

4Q 17

1Q 18

2Q 18

3Q 18

4Q 18

Sublet Vacancy

1Q 19

6,000,000

10.00%

5,000,000

8.00%

4,000,000

6.00%

3,000,000

4.00%

2,000,000

2.00%

1,000,000

0.00%

0 2Q 16

2Q 19

3Q 16

4Q 16

Total Vacancy

1Q 17

2Q 17

3Q 17

4Q 17

Delivered Inventory

ABSORPTION - OVERALL DFW

1Q 18

2Q 18

3Q 18

4Q 18

1Q 19

2Q 19

Under Construction

OVERVIEW - OVERALL DFW 20.0%

1,600,000

2,000,000

1,100,000

1,500,000 19.0%

600,000

1,000,000 18.0%

100,000

500,000 17.0%

(400,000)

0

(900,000) 2Q 16

3Q 16

4Q 16

1Q 17

2Q 17

3Q 17

4Q 17

1Q 18

2Q 18

3Q 18

4Q 18

1Q 19

16.0%

(500,000) 2Q 16

2Q 19

3Q 16

4Q 16

1Q 17

Absorption

Total Net Absorption

2Q 17

3Q 17

4Q 17

1Q 18

2Q 18

3Q 18

4Q 18

Deliveries

1Q 19

2Q 19

Vacancy

Source: CoStar 2Q 2019 Office Report

Market

Existing Inventory # Bldgs.

Total RBA

Vacancy Direct SF

Total SF

Vac. %

YTD Net Absorption

YTD Deliveries

Under Const. SF

Quoted Rates

Central Expressway

115

13,076,987

1,603,453

1,639,970

12.5%

144,474

38,848

0

$29.73

Dallas CBD

85

28,837,379

6,894,557

7,428,122

25.8%

(36,292)

81,711

60,230

$25.16

East Dallas

199

8,340,381

1,179,304

1,184,381

14.2%

102,725

294,820

112,890

$25.13

Far North Dallas

483

52,430,758

9,933,346

10,951,210

20.9%

343,308

465,623

1,240,496

$29.02

Fort Worth CBD

59

9,766,980

1,371,495

1,414,855

14.5%

(16,359)

0

0

$27.92

Las Colinas

299

36,081,702

6,197,057

6,692,399

18.5%

124,287

562,800

2,200,852

$26.19

LBJ Freeway

169

21,517,151

4,766,973

5,019,876

23.3%

(50,932)

0

0

$22.44

Lewisville/Denton

169

7,823,174

1,076,694

1,093,435

14.0%

(169,550)

63,226

232,327

$23.40

Mid-Cities

423

22,000,304

3,803,139

3,896,884

17.7%

87,361

0

334,759

$22.66

North Fort Worth

57

2,993,908

526,663

526,663

17.6%

(33,998)

200,000

100,720

$22.79

Northeast Fort Worth

52

3,645,267

646,897

646,897

17.7%

491,802

0

0

$22.60

Preston Center

49

4,661,906

459,917

497,507

10.7%

(83,047)

0

118,000

$38.27

Richardson/Plano

381

32,005,203

5,857,683

6,098,393

19.1%

469,304

243,000

371,400

$24.43

South Fort Worth

235

12,033,113

1,124,088

1,216,274

10.1%

(6,751)

50,441

104,365

$24.32

Southwest Dallas

88

3,669,055

275,940

278,521

7.6%

59,306

0

315,000

$20.75

Stemmons Freeway

120

13,304,185

3,163,948

3,163,948

23.8%

60,742

0

17,946

$17.13

Uptown/Turtle Creek

103

13,575,202

1,845,544

2,112,295

15.6%

114,581

34,762

321,098

$39.91

3,086

285,762,655

50,726,698

53,861,630

18.8%

1,600,961

2,035,231

5,530,083

$26.02

Totals

Source: CoStar 2Q 2019 Office Report

6

DALLAS CENTRALINTELLIGENCE BUSINESS DISTRICT SUBMARKET Absorption

vs. Prev. Qtr

vs. 12 Mths Ago

(97,563)

31,271

7,935

Vacancy

vs. Prev. Qtr

vs. 12 Mths Ago

25.8%

25.5%

26.9%

U/C SF

vs. Prev. Qtr

vs. 12 Mths Ago

60,230

141,941

vs. Prev. Qtr

vs. 12 Mths Ago

81,711

-

vs. Prev. Qtr

vs. 12 Mths Ago

$24.80

$25.19

60,230 Delivered SF Quoted Rates $25.16

VITAL STATS

28.0%

400,000 300,000 200,000

26.0%

100,000 0 24.0%

(100,000) (200,000)

22.0%

(300,000) 2Q 16

3Q 16

4Q 16

1Q 17

2Q 17

Absorption

3Q 17

4Q 17

1Q 18

Deliveries

2Q 18

3Q 18

4Q 18

1Q 19

2Q 19

Vacancy

Source: CoStar 2Q 2019 Office Report

CURRENT EVENTS • The 1.3M SF office tower at 1401 Elm Street in Downtown Dallas has new ownership. Todd Interests, a developer with a history in reviving aging structures in Dallas’ city center, will take over redevelopment of the building that has stood vacant since 2010 and transform it into a mixed-use tower. The $450M project is the largest of its kind to occur in Downtown Dallas, with plans including a Thompson Hotels-anchored 200-room hotel, 318 luxury apartments, and restaurant and retail space.

American Housing Partners plans to acquire the federal tax credits and Stonehenge Financial plans to assume the state tax credits on the new project. Todd Interests brought in Moriah Real Estate with a $100M investment.

Octagon Finance is also providing an undisclosed bridge loan. Drever Capital Management, who has owned the property since May 2016, will continue on the project in an advisory role.

• Bank of America Plaza has just landed another major tenant. Law firm Kane Russell Coleman Logan is relocating its offices into 45K SF in the building.

Relocating from Thanksgiving Tower, where they have been for the past 26 years, they are excited to stay in Downtown Dallas and be in an iconic building. Bank of America Plaza is more than 70% leased and currently on the market for sale by its owner, Metropolis Investment Group. Cushman Wakefield is marketing the building.

• Jackson Spalding, an Atlanta based marketing firm, is moving its local office from the Saint Paul Place to One Arts Plaza. The Dallas office serves clients including Toyota, Mattress Firm, Chick-fil-A, Dallas Regional Chamber, and Altair Global. Jackson Spalding is moving to the ninth floor of One Arts Plaza, a building that has offices, retail space, and residential condominiums.

Other office tenants in the building include law firm Thompson & Knight, Enlink Midstream, and Civitas Capital Management. The building is now 95% leased.

TOP LEASE TRANSACTIONS • Reel FX has signed a 25K SF lease in 717 N Harwood Street.

• McGuire, Craddock & Strother has signed an 18K SF lease in Ross Tower.

• Republic Property Group has signed a 12K SF lease in 400 S Record.

• Jackson Spalding has signed a 10.1K SF lease in One Arts Plaza.

• Burns Charest has signed a 9.2K SF lease in Founders Square.

• World Affairs Council Dallas has signed an 8K SF lease in Republic Center.

• PNL Companies has signed a 5.7K SF lease in 2100 Ross.

DEALS IN THE MARKET • Bank of America Plaza – a 1,849,729 SF class A office building

NEW DEVELOPMENTS • 140 Elm Street/The Drever – 60,230 SF LARGE EXISTING VACANCIES • Fountain Place/1445 Ross Avenue – 565,085 SF • Bank of America Plaza/901 Main Street – 314,729 SF • Thanksgiving Tower/1601 Elm Street – 291,607 SF • 1700 Pacific/1700 Pacific Avenue – 235,225 SF • One Main/1201 Main Street – 162,248 SF • Ross Tower/500 N Akard Street – 155,927 SF • Comerica Bank Tower/1717 Main Street – 153,745 SF

7

CENTRAL INTELLIGENCE EXPRESSWAY SUBMARKET Absorption

vs. Prev. Qtr

vs. 12 Mths Ago

16.0%

(23,625)

168,099

108,491

14.0%

Vacancy

vs. Prev. Qtr

vs. 12 Mths Ago

12.0%

12.5%

12.4%

12.7%

10.0%

U/C SF

vs. Prev. Qtr

vs. 12 Mths Ago

-

59,949

vs. Prev. Qtr

vs. 12 Mths Ago

38,848

-

Delivered SF Quoted Rates $29.73

vs. Prev. Qtr

vs. 12 Mths Ago

$28.53

$28.51

VITAL STATS

200,000 150,000 100,000 50,000 0

8.0%

(50,000) (100,000)

6.0%

(150,000)

4.0%

(200,000) 2.0%

(25 0,000)

0.0%

(300,000) 2Q 16

3Q 16

4Q 16

1Q 17

Absorption

2Q 17

3Q 17

4Q 17

1Q 18

Deliveries

2Q 18

3Q 18

4Q 18

1Q 19

2Q 19

Vacancy

Source: CoStar 2Q 2019 Office Report

CURRENT EVENTS • WorkSuites has leased 30K SF of office space in 4131 HLC Deal

NCX. They will occupy two floors of shared office space which will open in December. WorkSuites has another location on Cole Street in Uptown which was 90% occupied within weeks of opening. They operate more than a dozen locations in North Texas that offer office space, coworking space, and meeting facilities.

ESRP negotiated the deal on behalf of WorkSuites while Holt Lunsford Commercial represented the landlord, Westdale.

• Last year, Highland Capital bought Dallas’ CityPlace Tower for $200M. The building remains the tallest building outside downtown Dallas. Since then, they have been working on redevelopment plans for the 1.35M SF building with The Beck Group. A representative for Highland Capital said that they have plans to transform the surrounding area, as well as adding more amenities for the tenants and mixed-use space.

TOP LEASE TRANSACTIONS • Texas Neurology has signed a 40K SF lease in 6080 NCX.

• Work Suites has signed a 30K SF lease in 4131 NCX. • Learning Machine has signed a 6.4K SF lease in CBS

HLC Deal

Tower.

• Hanover Property Company has signed a 4.8K SF lease in Knox Park Village.

• EJES Inc has signed a 3.4K SF lease in NCP III. • Legacy at Midtown has signed a 3.3K SF lease in Search Plaza.

• Cohesion Wealth Advisors has signed a 3.3K SF renewal & expansion in 4245 NCX.

HLC Deal

8

DEALS IN THE MARKET • Premier Place – a 457,901 SF class A office building • Meadow Park Tower – a 251,755 SF class B office building

• 4040 NCX – a 148,864 SF class B office building NEW DEVELOPMENTS No developments are currently under construction at this time. However, three have been proposed: • Four Energy Square – a 400,000 SF build-to-suit • 8010 Park Lane – a 352,000 SF office building • The Tower at Preston Hollow Village – a 250,000 SF class A office building

LARGE EXISTING VACANCIES • Two Energy Square – 98,600 SF • Cityplace Tower – 95,408 SF • The Pyramids at Park Lane – 63,467 SF • 8750 N Central Expressway – 51,517 SF • Three Energy Square – 38,714 SF • Meadows Building – 27,211 SF • Walnut Glen Tower – 25,233 SF

FAR NORTH DALLAS SUBMARKET INTELLIGENCE Absorption

vs. Prev. Qtr

vs. 12 Mths Ago

650,291

(23,460)

Vacancy

vs. Prev. Qtr

vs. 12 Mths Ago

20.9%

20.3%

21.0%

20.0%

U/C SF

vs. Prev. Qtr

vs. 12 Mths Ago

18.0%

1,025,821

1,159,337

vs. Prev. Qtr

vs. 12 Mths Ago

465,623

17,036

(307,913)

1,240,496 Delivered SF Quoted Rates $29.02

vs. Prev. Qtr

vs. 12 Mths Ago

$29.01

$28.40

VITAL STATS

24.0%

1,000,000 800,000

22.0%

600,000 400,000 200,000 0

16.0%

(200,000) 14.0%

(400,000)

12.0%

(600,000) 2Q 16

3Q 16

4Q 16

1Q 17

Absorption

2Q 17

3Q 17

4Q 17

1Q 18

2Q 18

3Q 18

4Q 18

Deliveries

1Q 19

2Q 19

Vacancy

Source: CoStar 2Q 2019 Office Report

CURRENT EVENTS

• Plano’s planning and zoning commission approved plans for the 540,000 SF Chase tower at Legacy West. The more than $100M office project will allow Chase to grow its workforce in Plano’s $3B Legacy West development to nearly 11,000 workers. The new tower, which will house 4,000 people, will be the tallest of four (4) buildings in Chase’s almost 50-acre campus, which opened on the south side of State Highway 121 late 2017. The banking firm relocated workers from several office sites across North Texas. Chase has started construction on a parking garage to serve the next phase of offices in Plano.

Dallas architect HKS designed the Chase campus which was developed by Dallas-based KDC. • Developers are finalizing plans for a new office campus in Plano’s Legacy Business Park. The building will be called HQ53 and is a project by Cawley Partners. The development will be on Headquarters Drive, west of Preston Road. Construction of the 200K SF building will begin in September and it should be ready a year later. The building was designed by Dallas architect BOKA Powell. HQ53 is the latest in a series of projects by Cawley Partners in Legacy Business Park.

• Dallas-Fort Worth’s office market slid into a valley in 1Q with net office absorption falling to negative 708K SF. The decline is tied predominantly to the move of large corporate office tenants, including HPE and Bank of America, from the Legacy area of Far North Dallas. The Upper Tollway/West Plano submarket saw 904K SF of negative office absorption in 1Q, which counteracted the positive 195K SF in the rest of DallasFort Worth.

• Blue Star Land, the real estate arm of the Dallas Cowboys and the Jerry Jones family, closed on a deal in which they acquired a 100-acre tract of land in Frisco near the future PGA of America headquarters. This acquisition creates the potential for another mixed-use development, like The Star in Frisco. The Frisco area is an up-and-coming office market with about 8M SF of office space. Companies have been officing in the area since the early 2000s when the city began attracting families looking for affordable housing and well-ranked schools.

TOP LEASE TRANSACTIONS

• Tenet Healthcare has signed a 400K SF lease in International Plaza I. • Aimbridge has signed a 75K SF lease in HQ53.

• National Life Group has signed a 50K SF expansion in Millennium Tower.

• Mode Transportation has signed a 25.2K SF lease in Signature Exchange.

• Fidelity Information Services has signed a 25K SF renewal in One Hanover.

• Safe Harbor Marinas has signed a 25K SF lease in Signature Exchange.

• Nationwide Debt has signed an 18.6K SF renewal and expansion in Tennyson Office Center II. • Pelitas has signed a 16.3K SF lease in Parkway Centre III. • Learfield has signed a 13.7K SF expansion in Park Center.

• Spreemo Health has signed an 8.3K SF lease in Quorum Place.

• Clear Technologies has signed a 6.9K SF lease in Addison Tower.

• Elevate Credit has signed a 6.7SF expansion in Spectrum Center.

• Debt Blue has signed a 5.8K SF lease in Millennium Tower.

• Mid America Mortgage, Inc. has signed a 3.5K SF lease in The Spectrum.

• Aires has signed a 2.8K SF lease in Tollway Towers.

• Jemez Technologies has signed a 2.5K SF lease in Tollway Towers.

HLC Deal

HLC Deal

DEALS IN THE MARKET

• Stanford Corporate Centre – a 333,023 SF class A office building • 5301 Legacy Drive – a 262,000 SF class A office building • Park Center – a 236,604 SF class A office building • Tower at Frisco Square – a 166,305 SF class A office building • Bent Tree Tower II – a 166,023 SF class A office building

NEW DEVELOPMENTS

• The Realm at Castle Hills – a 248,387 SF office building • Headquarters II – a 220,000 SF office building • The Offices Two at Frisco Station – a 210,579 SF office building • International Business Park – a 179,675 SF office building • Block H (Legacy West) - a 105,000 SF office building

LARGE EXISTING VACANCIES • • • • • • • • •

5400 Legacy Drive – 1,587,456 SF 6105 Tennyson Parkway – 393,064 SF The Campus at Legacy West – 370,625 SF International Plaza II – 369,338 SF 6400 Legacy Drive – 222,191 SF 4101 International – 205,750 SF Tollway Office Center II – 160,000 SF The Princeton – 155,552 SF Duke Bridges – 125,900 SF 9

FORT WORTH CENTRAL BUSINESS DISTRICT SUBMARKET INTELLIGENCE Absorption

vs. Prev. Qtr

vs. 12 Mths Ago

88,689

(105,048)

(119,839)

Vacancy

vs. Prev. Qtr

vs. 12 Mths Ago

14.5%

15.4%

13.0%

U/C SF

vs. Prev. Qtr

vs. 12 Mths Ago

-

-

vs. Prev. Qtr

vs. 12 Mths Ago

-

280,489

vs. Prev. Qtr

vs. 12 Mths Ago

$28.10

$28.64

Delivered SF Quoted Rates $27.92

VITAL STATS

16.0%

350,000 300,000 250,000 200,000

14.0%

150,000 100,000 50,000 0

12.0%

(50,000) (100,000) (150,000) 10.0%

(200,000) 2Q 16

3Q 16

4Q 16

1Q 17

Absorption

2Q 17

3Q 17

4Q 17

1Q 18

Deliveries

2Q 18

3Q 18

4Q 18

1Q 19

2Q 19

Vacancy

Source: CoStar 2Q 2019 Office Report

CURRENT EVENTS • After more than 90 years of service, Fort Worth Champion Spring Service has shut its doors. The suspension and spring operation, located at the corner of Lancaster Avenue and Henderson Street, was recently purchased by QuickTrip for a new downtown location that will span the entire block. Demolition of the existing structure has already begun with the construction of the new QuickTrip scheduled to kick off this year.

• The Tower, formerly Bank One Tower, in Downtown Fort Worth is listed for sale. The 35-story building was heralded as the world’s tallest skyscraper when it opened in 1974. After being ravaged by the tornado that hit Downtown Fort Worth in 2000, the building reopened as The Tower in 2004 and delivered renovated luxury condominiums, retail, and office space to the downtown market. At that time, The Tower was advertised as Fort Worth’s first large-scale, mixed-use project that combined living, working, and playing

• Following the rejection of funding for the Trinity River Project by the federal government for this fiscal year, Mayor Betsy Price called for an independent review of the project. Riveron, a Dallas-based consultant, was selected in April to conduct the independent review of the project’s finances, management, and structure at a cost not to exceed $460K. The review of the $1.17B project is complete. However, the public may not be able to see the results until August. The public release of the assessment will come after the Trinity River Vision Authority board members and Tarrant Regional Water District staff have a chance to review the more than 90-page document and offer changes to both data and recommendations from Riveron. This decision has not set well with some board members who expected the review to be made public, either fully or in the form of a presentation, from Riveron staff at a meeting July 10.

10

TOP LEASE TRANSACTIONS • Flat Creek Resources has signed a 23,111 SF lease in 777 Main Street.

• BGE Inc. has signed a 15,000 SF lease in 777 Main Street.

DEALS IN THE MARKET • The Tower – a 612,465 SF mixed-use building • Oil & Gas Commerce/Star Telegram Building – a 439,802 SF class B two (2) building complex • Tower Annex – a 118,995 SF office building • 1500 Houston Street – a 22,507 SF office building • 904 Macon Street – a 10,525 SF office building • 1400 Throckmorton Street – a 1.21 acres land site

NEW DEVELOPMENTS • 111 W 5th Street – a 246-room Marriott AC hotel • 714 Main Street – a 232-room Kimpton hotel • The Sinclair Hotel – a 164-room Marriott hotel

LAS COLINAS SUBMARKET INTELLIGENCE Absorption

vs. Prev. Qtr

vs. 12 Mths Ago

(130,869)

255,156

393,155

18.0%

Vacancy

vs. Prev. Qtr

vs. 12 Mths Ago

16.0%

18.5%

17.5%

16.9%

U/C SF

vs. Prev. Qtr

vs. 12 Mths Ago

2,489,777

2,187,800

vs. Prev. Qtr

vs. 12 Mths Ago

246,400

196,000

vs. Prev. Qtr

vs. 12 Mths Ago

$25.56

$25.02

2,200,852 Delivered SF 316,400 Quoted Rates $26.19

VITAL STATS

20.0%

600,000

400,000

14.0%

200,000

12.0% 10.0%

0

8.0% (200,000)

6.0% 4.0%

(400,000)

2.0% 0.0%

(600,000) 2Q 16

3Q 16

4Q 16

1Q 17

Absorption

2Q 17

3Q 17

4Q 17

1Q 18

2Q 18

3Q 18

Deliveries

4Q 18

1Q 19

2Q 19

Vacancy

Source: CoStar 2Q 2019 Office Report

CURRENT EVENTS • The former Zale Corporation headquarters building is taking new shape thanks to the vision of its new owner, Varidesk.

The Coppell-based office furniture and equipment firm is redeveloping the more than 300K SF office campus into a new concept they are calling Varispace. Varispace provides a flexible, turn-key solution to office users, saving them the headache of improvement overages and furniture purchases.

The campus has been vacant since the jewelry retailer moved to Cypress Waters in 2018. However, they have recently signed two deals totaling 65K SF. The project is set to open for business in September and will include an on-site café, training and conference center, fitness center and a one-acre courtyard with walking trails.

• In April, the 350-room Westin Irving Convention Center hotel opened its doors to the public. The hotel has been under construction since 2017 and includes more than 30K SF of meeting space and a 10K SF green space between the hotel and the adjacent Toyota Music Factory. The 13-story hotel tower was designed by Dallas architect BOKA Powell. Other inviting features of the project include a large outdoor patio bar and dining space, as well as an upper level bar and bistro adjacent to the upper level swim deck.

• Riverside Commons Building 1 – a 100,661 SF class A office building • The Overlook – a 95,510 SF class B office building • Gateway Plaza – a 78,840 SF class B office building • Valley Centre – a 77,686 SF class B office building • Commerce Park II – a 69,981 SF class B two (2) building office complex • 450 E John Carpenter Freeway – a 58,276 SF class B office building • 1325 W Walnut Hill Lane – a 54,018 SF class B office building • 1440 Corporate – a 50,000 SF class B office building

NEW DEVELOPMENTS • 777 Hidden Ridge – a 1,125,000 SF class A office building • The USCIS Building – a 259,947 SF class A office building • 3200 Olympus Boulevard – a 250,000 SF class A office building • 3401 Olympus Boulevard – a 200,000 SF class A office building • 3501 Olympus Boulevard – a 200,000 SF class A office building • 1801 Wittington Place – a 103,000 SF class B office building

LARGE EXISTING VACANCIES TOP LEASE TRANSACTIONS • Blucora, Inc. has signed a 150,000 SF lease in 3200 Olympus Boulevard.

• Fay Servicing has signed a 44,017 SF lease in 1601 Lyndon B. Johnson Freeway.

• Oneshare Health has signed a 24,673 SF lease in 3701 Regent Boulevard.

• Career Staff Unlimited, Inc. has signed a 13,099 SF lease in 6333 N State Highway 161.

• SignaPlay has signed a 12,451 SF lease in 4100 W Royal Lane.

DEALS IN THE MARKET • 8701-8711 Freeport Parkway – a 255,375 SF class B office building • The Westpoint I – a 150,019 SF class B office building • Royal 10 Office Center – a 114,500 SF class B office building

• • • • • • • • • • • • • • •

1925 W John Carpenter Freeway – 403,150 SF Williams Square West - 390,534 SF 901 W Walnut Hill Lane – 346,951 SF 6000 Connection – 293,890 SF 1801 Valley View Lane – 208,593 SF Cottonwood Office Center – 165,818 SF 1555 W Walnut Hill Lane – 151,736 SF Williams Square Central Tower - 150,101 SF 8222 N Belt Line Road – 135,200 SF 6031 Connection Drive – 114,524 SF 3600 W Royal Lane – 114,500 SF Greenway Tower – 112,166 SF 8616 Freeport Parkway – 105,778 SF Park West 2 – 103,980 SF 5040 Riverside – 100,661 SF 11

LBJ SUBMARKET INTELLIGENCE Absorption

vs. Prev. Qtr

vs. 12 Mths Ago

24.5%

(17,775)

(33,157)

(124,502)

24.0%

Vacancy

vs. Prev. Qtr

vs. 12 Mths Ago

23.5%

23.3%

23.2%

21.7%

U/C SF Delivered SF Quoted Rates $22.44

vs. Prev. Qtr

vs. 12 Mths Ago

-

-

vs. Prev. Qtr

vs. 12 Mths Ago

-

-

vs. Prev. Qtr

vs. 12 Mths Ago

$22.77

$22.29

VITAL STATS

300,000

200,000

23.0%

100,000

22.5% 0 22.0% 21.5%

(100,000)

21.0% (200,000) 20.5% 20.0%

(300,000) 2Q 16

3Q 16

4Q 16

1Q 17

Absorption

2Q 17

3Q 17

4Q 17

1Q 18

Deliveries

2Q 18

3Q 18

4Q 18

1Q 19

2Q 19

Vacancy

Source: CoStar 2Q 2019 Office Report

CURRENT EVENTS • The Texas Department of Transportation is prepared to unleash a major roadway project on a portion of LBJ Freeway to increase capacity and relieve congestion.

The state agency awarded a reconstruction contract on 11 miles of LBJ Freeway to a joint venture of Fluor and Balfour Beatty Infrastructure Inc. A portion of the highway will serve as an entry point to the Dallas Midtown and Park Heritage mixed-use projects, which will eventually infill a dated Dallas neighborhood with luxury offices, apartments, and retail.

• Midtown Office Center, a two (2) building 170K SF campus, has recently been acquired by the private equity firm MoxieBridge. Renovations will consist of an updated fitness center, wine lockers, executive conference room, and a semi-full-service bar. Before the acquisition, Midtown Office Center was less than 10% leased but has since done more than 50K SF of preleasing activity.

TOP LEASE TRANSACTIONS • Highmark Residential has signed a 25.5K SF renewal in

HLC Deal

The Crossings.

• Prospera Financial has signed a 14.8K SF relocation in The Crossings.

• Genesis Physicians Group has signed a 13.8K SF renewal and expansion in The Crossings.

• Cresa has signed a 13.2K SF lease in Pinnacle Tower.

• Civil Associates has signed a 9.4K SF lease in Lake Highlands Tower.

• Title Partners has signed a 6.4K SF lease in The Crossings.

• Keyston Consolidated has signed a 5.4K SF lease in One Galleria Tower.

HLC Deal

HLC Deal

HLC Deal

12

DEALS IN THE MARKET • Galleria Towers – a 1,418,800 SF class A three (3) building complex • Two Forest Plaza – a 196,215 SF class A office building • Hillcrest Oaks Plaza – a 183,980 SF class A two (2) building complex

NEW DEVELOPMENTS No new developments are currently under construction.

However, three have been proposed: • Four Lincoln Centre – 400,000 SF • Park Tower at Dallas Midtown – 376,870 SF • The Inwood at Alpha West – 300,000 SF

LARGE EXISTING VACANCIES • 5525 Lyndon B Johnson Freeway – 111,092 SF • Pinnacle Tower – 108,485 SF • Midtown Office Center – 97,452 SF • LBJ Tower – 78,950 SF • The Crossings II (5501) – 75,099 SF • LBJ Financial Center – 74,340 SF • Midtown Office Center – 73,089 SF

MIDINTELLIGENCE CITIES SUBMARKET VITAL STATS

Absorption

vs. Prev. Qtr

vs. 12 Mths Ago

(117,738)

205,099

156,914

250,000

Vacancy

vs. Prev. Qtr

vs. 12 Mths Ago

200,000

17.7%

17.2%

18.6%

U/C SF

vs. Prev. Qtr

vs. 12 Mths Ago

213,000

299,710

vs. Prev. Qtr

vs. 12 Mths Ago

-

58,400

334,759 Delivered SF Quoted Rates $22.66

vs. Prev. Qtr

vs. 12 Mths Ago

$22.28

$22.22

22.0%

300,000

150,000

20.0%

100,000 50,000 0 18.0%

(50,000) (100,000) (150,000)

16.0%

(200,000) 2Q 16

3Q 16

4Q 16

1Q 17

Absorption

2Q 17

3Q 17

4Q 17

1Q 18

Deliveries

2Q 18

3Q 18

4Q 18

1Q 19

2Q 19

Vacancy

Source: CoStar 2Q 2019 Office Report

CURRENT EVENTS • Dallas-Fort Worth (DFW) Airport has started preliminary discussions and planning for a 6th passenger terminal. This spring, airport authorities are starting to discuss plans for a new terminal, Terminal F, that would be built with design standards to allow more airplanes to park in smaller space. Terminal F is not likely to be the same shape as the other terminals at DFW as the half-moon shape has proven to be a challenge at times for passengers needing to catch connecting flights.

The terminal may not even include a parking garage because recent studies show that at least a quarter of vehicle traffic at DFW is from ride sharing groups like Uber and Lyft.

• A new shooting range is open in South Arlington. Shoot Point Blank, located behind the Aldi Grocery store on West Nathan Lowe road, is adding its second location in Texas and 18th location overall. The Ohio company is one of a number of newer gun ranges offering a more full-service experience including memberships.

TOP LEASE TRANSACTIONS

DEALS IN THE MARKET • 4501 New York Avenue – a 175,527 SF class B office building sold by Starwood Capital Group • Copeland Tower – a 126,628 SF class A office building sold by Aque Investment Group • 8555 Airport Freeway – a 125,436 SF class B office building sold by Zerby Interests • Arbors at Brookhollow – a 113,544 SF class B office building sold by Yacht Harbor • Stadium Place – an 84,327 SF class B office building sold by Aque Investment group • 350 Westpark Way – a 58,319 SF class B office building sold by Kahawai LLC • 1112 E Copeland Road – a 56,848 SF class B office building sold by Koc One Arlington LLC

LARGE EXISTING VACANCIES • 300 Six Flags Drive – 51,540 SF • 4200 Buckingham – 58,090 SF • 8555 Airport Freeway – 47,277 SF • DFW Business Center South Tower – 46,097 SF • Airport Centre I – 46,052 SF • Brookhollow Riverside – 31,322 SF

• Lockheed Martin has signed a 60,037 SF lease in 15100 FAA Boulevard with Capital Commercial Investments.

• Lester & Lester Realty Advisors has signed a 5,900 SF lease in 2928 Blue Quail Lane with Blue Qual, LP. • American Mensa has signed a 5,180 SF lease in 1200 E Copeland with Aque Investment Group.

13

NORTH FORT WORTH SUBMARKET INTELLIGENCE Absorption

vs. Prev. Qtr

vs. 12 Mths Ago

20,294

(54,292)

42,632

Vacancy

vs. Prev. Qtr

vs. 12 Mths Ago

17.6%

12.4%

12.6%

U/C SF

vs. Prev. Qtr

vs. 12 Mths Ago

300,720

200,000

vs. Prev. Qtr

vs. 12 Mths Ago

-

25,000

vs. Prev. Qtr

vs. 12 Mths Ago

$20.66

$20.01

100,720 Delivered SF 200,000 Quoted Rates $22.79

VITAL STATS

20.0%

250,000 200,000

16.0% 150,000 100,000

12.0%

50,000 8.0%

0 (50,000)

4.0% (100,000) 0.0%

(150,000) 2Q 16

3Q 16

4Q 16

1Q 17

2Q 17

Absorption

3Q 17

4Q 17

1Q 18

2Q 18

3Q 18

4Q 18

Deliveries

1Q 19

2Q 19

Vacancy

Source: CoStar 2Q 2019 Office Report

CURRENT EVENTS • A partnership between two Chicago-based investment firms, GlenStar and Singerman Real Estate, has acquired The Terrace at Solana, a 1.1M SF office campus located in Westlake, a northern suburb of Fort Worth. The sale includes a 20 AC parcel for additional office development, as well as the Solana Fitness Club.

The new ownership will either add or upgrade various amenities at the eight (8) building property, including the conference center, café, a tenant-only fitness center, outdoor lounge and patio, and a flexible entertainment space. JLL will handle leasing of the campus, and GlenStar will handle management. The seller and sales price were not disclosed.

• Financial services giant, Charles Schwab, is working on plans to more than double its regional headquarters North of Fort Worth in Westlake. The San Franciscobased firm broke ground last year on the first $100M phase of the 70 AC office campus near State Highways 114 and 170. The initial 500K SF office complex is expected to house 2,600 Schwab workers after it opens early next year. Schwab recently filed plans with the town of Westlake, a suburb of Fort Worth for a second, 617K SF phase of the development that will add two (2) more office buildings. The second phase would also have an additional parking garage that will allow a total of more than 6,000 workers on the entire site.

14

TOP LEASE TRANSACTIONS • Lockheed Martin has signed a 431,579 SF lease in 5401 N Beach Street.

• Mercedes Benz has signed a 164,333 SF lease in 13650 Heritage Parkway.

• Wells Fargo has signed a 88,520 SF lease in The Plaza at Solana.

DEALS IN THE MARKET • 5501 Alliance Gateway – a 214,434 SF class A office building

• 7001 Boulevard 26 – a 100,442 SF class B office building

NEW DEVELOPMENTS • 10865 Texas Health Trail – a 60,000 SF class A office building • Pinnacle Point – a 27,695 SF class B office building

LARGE EXISTING VACANCIES • The Vista at Solana – 379,898 SF • 2601 Meacham Boulevard – 216,082 SF • 5555 N Beach Street – 163,283 SF

PRESTON CENTER SUBMARKET INTELLIGENCE Absorption

vs. Prev. Qtr

vs. 12 Mths Ago

(4,217)

(78,830)

(5,207)

Vacancy

vs. Prev. Qtr

vs. 12 Mths Ago

10.7%

11.1%

13.1%

U/C SF

vs. Prev. Qtr

vs. 12 Mths Ago

118,000

118,000

vs. Prev. Qtr

vs. 12 Mths Ago

-

-

vs. Prev. Qtr

vs. 12 Mths Ago

$38.23

$39.94

118,000 Delivered SF Quoted Rates $38.27

VITAL STATS

14.0%

120,000 100,000 80,000

12.0%

60,000 40,000 20,000

10.0%

0 (20,000) (40,000)

8.0%

(60,000) (80,000) 6.0%

(100,000) 2Q 16

3Q 16

4Q 16

1Q 17

2Q 17

3Q 17

Absorption

4Q 17

1Q 18

Deliveries

2Q 18

3Q 18

4Q 18

1Q 19

2Q 19

Vacancy

Source: CoStar 2Q 2019 Office Report

CURRENT EVENTS • PegasusAblon listed its Douglas Center office portfolio for sale on June 14. The three (3) building portfolio consists of 8343 Douglas, 8333 Douglas, and The Terraces at Douglas. They combine for a total of 594,578 SF and are more than 80% leased. Companies such as JLL, WeWork, BBVA, Whitley Penn, and Eagle Materials have offices throughout these three buildings. The low vacancy, optimal location, and walkability to restaurants makes this a prime target for real estate investors.

TOP LEASE TRANSACTIONS • HSTX Title has signed a 10.7K SF lease in 8300 Douglas Avenue.

• Site Selection Group has signed an 8.6K SF lease in The Douglas.

• Stockdale Investment Group has signed a 6.6K SF lease in The Berkshire.

• Progress Residential has signed a 6.1K SF lease in 8300 Douglas Avenue.

• Quality Centered Endontics has signed a 2K SF lease in Highland Park Place.

HLC Deal

DEALS IN THE MARKET • Douglas Center - a 580,340 SF class A three (3) building complex.

NEW DEVELOPMENTS • Weir’s Plaza – a 298,000 SF class A office building • 6517 Hillcrest Avenue/Hilltop Plaza – a 119,000 SF class A office building

LARGE EXISTING VACANCIES • 8117 Preston Road/West Tower – 25,136 SF • The Terraces at Douglas Center – 25,067 SF • 8343 Douglas Center – 21,337 SF • Sterling Plaza – 20,339 SF • 8333 Douglas – 20,046 SF • 8115 Preston Road/East Tower – 19,943 SF • Preston Commons West Tower – 19,433 SF • Bluffview Towers East – 18,719 SF • 5950 Sherry Lane – 18,481 SF • Sherry Lane Place – 15,700 SF • Highland Park Place – 15,427 SF

15

RICHARDSON/PLANO SUBMARKET INTELLIGENCE VITAL STATS

Absorption

vs. Prev. Qtr

vs. 12 Mths Ago

23.0%

168,911

300,493

111,516

22.0%

800,000

Vacancy

vs. Prev. Qtr

vs. 12 Mths Ago

21.0%

600,000

19.1%

19.1%

19.0%

U/C SF

vs. Prev. Qtr

vs. 12 Mths Ago

20.0%

400,000

19.0%

200,000

18.0%

0

17.0%

(200,000)

371,400 Delivered SF 190,000 Quoted Rates $24.43

212,200

308,938

vs. Prev. Qtr

vs. 12 Mths Ago

53,000

130,000

vs. Prev. Qtr

vs. 12 Mths Ago

$24.85

$24.43

1,000,000

16.0%

(400,000) 2Q 16

3Q 16

4Q 16

1Q 17

2Q 17

3Q 17

4Q 17

Absorption

1Q 18

Deliveries

2Q 18

3Q 18

4Q 18

1Q 19

2Q 19

Vacancy

Source: CoStar 2Q 2019 Office Report

CURRENT EVENTS • The growth of coworking space continues in Dallas-Fort Worth with Common Desk announcing its eighth location, this one in Richardson. Common Desk plans to open its doors in the fall at 3400 CityLine. Common Desk’s presence will contribute to the building’s overall amenities by bringing a full-service espresso bar, by Fiction Coffee, with it, a large rentable boardroom for outside meetings, community events for all tenants in the building, yard game sets, and extended green spaces.

• After four years of renovations and positive absorption, Q Real Estate is putting the four (4) building campus located at 2400 Glenville up for sale. The 389K SF office complex is 98% leased. The 25-acre campus includes renovated lobby areas, lounges, conference centers, an outside plaza area, and a new fitness center. CBRE is marketing the buildings for sale that sit directly across the street from the Galatyn Commons office complex.

TOP LEASE TRANSACTIONS • Ambit Energy has signed a 63.2K SF renewal in 1600 W Plano Parkway.

• Hedera Hashgraph has signed a 11K SF lease in 3400 CityLine.

• Public Risk Underwriters has signed a 4.1K SF expansion and relocation in Woodcreek Plaza.

• Jimar Resource has signed a 1.8K SF lease in 1901 NCX

HLC Deal

HLC Deal

16

DEALS IN THE MARKET • Richardson Office Center I & II – a 240,000 SF office building

• Woodcreek Plaza - an 85,557 SF class B office building

HLC Deal

NEW DEVELOPMENTS No new developments are currently under construction.

However, five have been proposed: • Heritage Creekside Towers - 2,200,000 SF • CityLine – 2,000,000 SF • 7 CityLine – 417,000 SF • One Heritage Creekside/Phase I – 343,800 SF • Legacy Central 5 at Chase Oaks Boulevard – 300,000 SF

LARGE EXISTING VACANCIES • 601 Data – 433,435 SF • Legacy Central 2 – 310K SF • 465 Independence Parkway – 251,347 SF • Campbell Glenn II – 205,816 SF • Legacy Central 1 – 197,042 SF • APEX – 186,244 SF • Creekview Corporate Center II – 181,009 SF • 2200 George Bush – 176,831 SF • Turnpike Commons – 176,831 SF • Lookout Park I – 156,219 SF

SOUTHWESTINTELLIGENCE FORT WORTH SUBMARKET Absorption

vs. Prev. Qtr

vs. 12 Mths Ago

29,774

(36,525)

38,713

Vacancy

vs. Prev. Qtr

vs. 12 Mths Ago

10.1%

10.4%

9.6%

U/C SF

vs. Prev. Qtr

vs. 12 Mths Ago

84,165

129,794

vs. Prev. Qtr

vs. 12 Mths Ago

50,441

31,000

vs. Prev. Qtr

vs. 12 Mths Ago

$24.07

$23.73

104,365 Delivered SF Quoted Rates $24.32

VITAL STATS

12.0%

250,000 200,000

11.0% 150,000 10.0%

100,000 50,000

9.0%

0 8.0% (50,000) 7.0%

(100,000) 2Q 16

3Q 16

4Q 16

1Q 17

Absorption

2Q 17

3Q 17

4Q 17

1Q 18

Deliveries

2Q 18

3Q 18

4Q 18

1Q 19

2Q 19

Vacancy Source: CoStar 2Q 2019 Office Report

CURRENT EVENTS • With a campus set to open this fall, Tarleton State University has been steadily expanding its offerings in Fort Worth. However, the school will need to get creative to fund its growth after lawmakers failed to authorize $3.8B in tuition revenue bonds for projects across Texas’ higher education institutions. Tarleton State University, the University of Texas at Arlington, and the University of North Texas systems all stood to receive funding for construction of new buildings. However, bills that would have paved the way for the capital projects failed to gain traction amid a session that was focused on school finance and property tax reform. This news signals that these institutions may turn to leasing to meet their future space requirements.

• Officials at the new TEXRail train line, which lured more than 11,000 riders in its first weekend, say they want to take advantage of all the buzz created by the service and immediately begin expansion plans. The commuter line, which connects Fort Worth, North Richland Hills, Grapevine, and DFW Airport, currently only goes as far south as the Texas & Pacific Station in Downtown Fort Worth. In contrast, officials at Trinity Metro, the transit agency that owns TEXRail, believe it’s realistic to extend the line another 1.5 miles to the southwest and open another station in Fort Worth’s medical district, possibly in three to four years if they get started now.

TOP LEASE TRANSACTIONS • Workplace Resource Group has signed a 8,312 SF lease in 707 W Vickery Boulevard.

• Radiology Associates has signed a 5,670 SF lease in 601 S Main Street.

• Axxis has signed a 5,294 SF expansion at Summit

HLC Deal

Office Park. .

DEALS IN THE MARKET • 1212 Lancaster Avenue – a 89,632 SF class B office building

• 401-403 S Jim Wright Freeway – a 43,463 SF class B office building

• Plaza on Hulen – a 25,000 SF class B office building NEW DEVELOPMENTS • 5668 Edwards Ranch – a 27,312 SF class A office building

• 101 Nursery Lane – a 21,283 SF class B office building LARGE EXISTING VACANCIES • Pier One – a 79,777 SF class A sublease vacancy • One Ridgmar Centre – a 45,513 SF class A vacancy • 481 Winscott Road – a 44,717 SF class A direct vacancy

• Western Place I – a 22,226 SF class B direct vacancy • Overton Centre II – a 17,859 SF class B direct vacancy

17

STEMMONS SUBMARKET INTELLIGENCE Absorption

vs. Prev. Qtr

vs. 12 Mths Ago

27.5%

38,580

22,162

354,152

27.0%

Vacancy

vs. Prev. Qtr

vs. 12 Mths Ago

26.5 %

23.8%

24.4%

24.8%

26.0%

U/C SF

vs. Prev. Qtr

vs. 12 Mths Ago

17,946

-

vs. Prev. Qtr

vs. 12 Mths Ago

-

414,000

17,946 Delivered SF Quoted Rates $17.13

vs. Prev. Qtr

vs. 12 Mths Ago

$16.99

$16.84

VITAL STATS

500,000 400,000 300,000 200,000

25.5% 100,000 25.0% 0

24.5 %

(100,000)

24.0%

(200,000)

23.5% 23.0%

(300,000) 2Q 16

3Q 16

4Q 16

1Q 17

Absorption

2Q 17

3Q 17

4Q 17

1Q 18

Deliveries

2Q 18

3Q 18

4Q 18

1Q 19

2Q 19

Vacancy

Source: CoStar 2Q 2019 Office Report

CURRENT EVENTS • The nation’s third Virgin Hotel is set to open soon in the Dallas Design District. The building, nearing completion at the corner of Hi Line and Turtle Creek, will be the first hotel in the Design District, an area that has been booming in recent years with new apartments and retail.

The 200-room hotel, with its first-floor restaurant, pool deck, and ballroom are expected to open in September.

TOP LEASE TRANSACTIONS • Pediatric Home Healthcare has signed a 9.5K SF lease in Mockingbird Towers.

• Invida FN has signed a 2.6K SF lease in 1111 Mockingbird.

• A. Morani CPA has signed a 2.2K SF lease in Woodview Tower.

18

DEALS IN THE MARKET • 1430 & 1440 Empire Central – a 320,000 SF office building

NEW DEVELOPMENTS No new developments are currently under construction at this time, however, three have been proposed: • 2345 Mockingbird Lane/West Love – 1,000,000 SF • The Design District Tower – 243,100 SF • 141 Glass Street – 65,000 SF

LARGE EXISTING VACANCIES • Pegasus Place/The Tower – 518,656 SF • 1430 & 1440 Empire Central Drive – 320,000 SF • The Connection at 8600 – 200,000 SF • 9999 Technology Blvd W – 150,272 SF • Comerica Service Center – 142,600 SF • 8777 N Stemmons Fwy – Tower II – 98,474 SF • Ricchi Towers/South – 90,626 SF • 7800 Ricchi Tower – 82,492 SF • Trinity Towers – 79,028 SF • 3000 Pegasus Park Drive Building 2 – 67,558 SF • Infomart Freeway – 65,888 SF

SUBMARKETUPTOWN INTELLIGENCE Absorption

vs. Prev. Qtr

vs. 12 Mths Ago

18.0%

120,249

(5,668)

387,163

16.0%

Vacancy

vs. Prev. Qtr

vs. 12 Mths Ago

14.0%

15.6%

16.7%

15.1%

U/C SF 321,098 Delivered SF Quoted Rates $39.91

vs. Prev. Qtr

vs. 12 Mths Ago

321,098

906,548

vs. Prev. Qtr

vs. 12 Mths Ago

34,762

494,300

vs. Prev. Qtr

vs. 12 Mths Ago

$39.43

$39.07

VITAL STATS

600,000

400,000

12.0%

200,000

10.0% 0 8.0% 6.0%

(200,000)

4.0% (400,000) 2.0% 0.0%

(600,000) 2Q 16

3Q 16

4Q 16

1Q 17

Absorption

2Q 17

3Q 17

4Q 17

1Q 18

2Q 18

3Q 18

Deliveries

4Q 18

1Q 19

2Q 19

Vacancy

Source: CoStar 2Q 2019 Office Report

CURRENT EVENTS • Harwood International announced a development plan for its largest office building yet. Harwood No. 12 is a 498K SF, 40-floor, office tower on Caroline Street that will sit on more than one acre of land between Payne, North Akard, and Field Streets. Amenities will consist of a fitness center, 21K SF sky lounge, and conference facilities. More than 2M SF of potential tenants have expressed interest in Harwood No. 12.

• A large portion of Dallas’ Victory Park neighborhood is now in the hands of a new owner, Asana Partners. HFF negotiated the sale for 421K SF of retail and office space inside Victory Park to the Charlotte based firm. Victory Park is a highly trafficked, mixed-use development at the intersection of Uptown and Downtown Dallas. The neighborhood is near the W Hotel, the House of Blues, and the American Airlines Arena. Victory Park also houses 3,500 apartments, 1.5M SF of office space, and numerous retailers.

• The Dallas-based energy firm, Lucid Energy Group, is doubling their current headquarters. Officing in Citymark at Katy Trail, the company will be expanding into more than 34K SF and constructing an interior stairwell to connect the two floors. The company, which provides gas midstream services to customers in New Mexico and West Texas, will expand into their new space in August.

TOP LEASE TRANSACTIONS • Peregrine Group has signed a 26K SF renewal and expansion in Rosewood Court.

• ALM has signed an 18.2K SF lease in 3800 Maple.

• Omniplan has signed a 16.4K SF renewal in Advancial Tower.

• Lathrop & Gage has signed a 10.4K SF lease in Rosewood Court.

• Perkins Eastman Architects has signed a 10K SF renewal in 3131 Turtle Creek.

• Source Energy has signed a 9.7K SF lease in 3333 Welborn.

• Koch Industries has signed a 5.1K SF lease in The Union.

• IDI Logistics has signed a 2.8K SF lease in The Union.

NEW DEVELOPMENTS • 2601 Victory Avenue – 347,892 SF office building with Hillwood • The Link – 300,000 SF office building with Kaizen • 2850 N Harwood Street No. 10 – 231,098 SF office building with Harwood International

LARGE EXISTING VACANCIES • • • • • •

2501 Cedar Springs Road – 110,415 SF 2101 Cedar Springs/Rosewood Court – 84,362 SF One McKinney Plaza/3232 McKinney Avenue – 68,496 SF 2100 McKinney/2100 McKinney Avenue – 68,047 SF 3102 Oak Lawn Ave/The Centrum – 62,668 SF PwC Tower/2121 Pearl Street – 58,289 SF

19

DALLAS

5950 Berkshire Lane Suite 900 Dallas, Texas 75225 T 972.241.8300 F 972.241.7955

FORT WORTH

1200 Summit Avenue Suite 300 Fort Worth, Texas 76102 T 817.710.1110 F 817.810.9017

www.holtlunsford.com

HOUSTON

11451 Katy Freeway Suite 300 Houston, Texas 77079 T 713.850.8500 F 713.850.8550