NORTH FORT WORTH SUBMARKET INTELLIGENCE Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
27,881
149,551
38,610
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
6.5%
5.6%
5.1%
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
96,800
276,800
vs. Prev. Qtr
vs. 12 Mths Ago
-
-
vs. Prev. Qtr
vs. 12 Mths Ago
$25.13
$25.55
112,800 Delivered SF 60,000 Quoted Rates $25.75
VITAL STATS
20.0%
250,000 200,000
16.0% 150,000 12.0%
100,000 50,000
8.0%
0 4.0% (50,000) (100,000)
0.0% 4Q 16
1Q 17
2Q 17
3Q 17
4Q 17
1Q 18
2Q 18
Absorption
3Q 18
Deliveries
4Q 18
1Q 19
2Q 19
3Q 19
4Q 19
Vacancy
Source: CoStar 4Q 2019 Office Report
CURRENT EVENTS • With increasing concerns about the handling of its flourishing growth, the Fort Worth City Council denied a developer’s request to build more homes north of Loop 820, siding with a vocal group of residents who say traffic has become unmanageable in the city’s northern suburbs. The developer, Hanover Property Company, wanted to change the zoning to allow more homes on smaller lots along with an apartment complex on roughly 325 acres at Bonds Ranch and Willow Springs roads. The change would also have eliminated possible commercial development. The traffic problems have been a big hindrance for improving office occupancy in the North Fort Worth submarket. Though city staff recommended the plan and the zoning commission quickly approved the measure in December, the council unanimously denied the change to a thunderous round of applause and a standing ovation from a nearly standing roomonly crowd.
• Financial goliath, Charles Schwab’s plan to move its headquarters from California is a big win for the DallasFort Worth area. It’s an even bigger win for the Circle T Ranch, a development in Westlake, Texas, a suburb in North Fort Worth. That’s where Schwab is already building its more than 1M SF office campus that will eventually house its corporate offices plus thousands of workers for the company after it acquires competitor TD Ameritrade. To put things in perspective, in 1998, Fidelity Investments bought part of the ranch to build a regional office center for thousands of workers that has now grown to 1M SF. In 2008, accounting giant Deloitte bought land at Circle T for its huge university campus which trains thousands of employees. With Schwab’s headquarters headed to the Tarrant County ranch, Circle T’s position as a financial employment center is likely to grow. 16
TOP LEASE TRANSACTIONS • Verizon has signed a 30,933 SF lease in 1301 Solana Boulevard.
• Charis Behavioral Health signed a 11,616 SF lease in 250 W Southlake Boulevard.
• Wells Fargo Advisors has signed a 8,146 SF lease in 550 Reserve Street.
DEALS IN THE MARKET • 5501 Alliance Gateway Freeway – a 215,125 SF class A office building
• 7001 Boulevard 26 – a 100,442 SF class B office Building
• 4000 Fossil Creek Boulevard – a 24,389 SF class B office building
NEW DEVELOPMENTS • 4701 Boat Club Road – a 31K SF class B office building, set to deliver July 2020
• 1700 N White Chapel Boulevard – a 28K SF class B office building, set to deliver June 2020
LARGE EXISTING VACANCIES • 2601 Meacham Boulevard – 216,082 SF • 5555 N Beach Street – 163,283 SF • 5501 Alliance Gateway Freeway – 161,336 SF