3Q 2021 DFW Office Market Brief

Market Brief... Dallas/Fort Worth

OFFICE

3Q2021 Property Pictured Above: One Ridgmar Centre, 6500 West Freeway | Fort Worth, Texas 76116

DFW OFFICE MARKET BRIEF 3Q 2021

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

JOHN DICKENSON

GEOFF SHELTON

JAMES ENGELS

DAVID CASON

DAN POND

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

Managing Principal - Dallas jdickenson@holtlunsford.com 972.421.1971

Managing Principal - Fort Worth gshelton@holtlunsford.com 817.710.1113

Senior Vice President - Dallas jengels@holtlunsford.com 972.280.8307

Vice President - Fort Worth dcason@holtlunsford.com 817.810.9137

Market Director - Dallas dpond@holtlunsford.com 972.380.3641

MASON PRITCHER

JAKE NEAL

JACK BEARE

WILLIAM WILSON

AARON DRAPER

OLIVIA BARNES

Market Director - Dallas mpricher@holtlunsford.com 972.280.8320

Market Director - Fort Worth jneal@holtlunsford.com 817.284.5555

Market Associate - Dallas jbeare@holtlunsford.com 972.265.0128

Market Associate - Fort Worth wwilson@holtlunsford.com 817.284.5555

Market Associate - Dallas adraper@holtlunsford.com 972.381.3219

Market Analyst - Dallas obarnes@holtlunsford.com 972.265.0135

ALEX WISHNICK

TYLER HOWARTH

HUNTER HEDRICK

QUINN HANFORD

JOHN ARMS

Market Analyst - Dallas awishnick@holtlunsford.com 972.265.0412

Managing Principal Tenant Representation thowarth@holtlunsford.com 972.280.8302

Market Analyst - Dallas hhedrick@holtlunsford.com 972.421.1973

Market Analyst - Dallas qhanford@holtlunsford.com 972.265.0124

Market Analyst - Dallas jarmes@holtlunsford.com 972.381.3210

3

NEW LISTING

208 N MARKET

208 N Market Place is a 62,000 square foot office building located in the West End CBD submarket.

4

NEW LISTING LEE PARK CENTER - 3141 HOOD

3141 Hood St is a 69,312 square foot office building located in the Uptown / Turtle Creek submarket.

5

NEW LISTING

921 RIVERFRONT

921 N Riverfront is a 27,562 square foot office building located in the Design District Stemmons submarket.

6

LINCOLN VILLAGE

NEW LISTING

Lincoln Village is a 14,670 square foot office/retail project located in the West-Southwest Fort Worth submarket.

7

HLC DFW OFFICE OVERALL MARKET

VACANCY - OVERALL DFW

CONSTRUCTION - OVERALL DFW 25.00%

8,000,000

22.20%

18.20%

20.4%

17.2%

7,000,000

20.00%

6,000,000 5,000,000

15.00%

4,000,000 10.00%

3,000,000 2,000,000

5.00% 1.80%

0.90%

1,000,000 0.00%

3Q 18

4Q 18

1Q 19

2Q 19

3Q 19

4Q 19

Direct Vacancy

1Q 20

2Q 20

3Q 20

4Q 20

1Q 21

Sublet Vacancy

2Q 21

0

3Q 21

3Q 18

Total Vacancy

4Q 18

1Q 19

2Q 19

3Q 19

4Q 19

1Q 20

Delivered Inventory

ABSORPTION - OVERALL DFW

2Q 20

3Q 20

4Q 20

1Q 21

2Q 21

Under Construction

OVERVIEW - OVERALL DFW

1,600,000

24.0%

1,100,000

23.0%

2,000,000 1,500,000 1,000,000

600,000

22.0%

500,000

100,000

0

21.0%

(400,000) (900,000)

20.0%

(1,400,000)

19.0%

(1,900,000)

(500,000) (1,000,000) (1,500,000) (2,000,000)

18.0%

(2,400,000)

(2,500,000) 17.0%

(2,900,000) (3,400,000) 3Q 18

4Q 18

1Q 19

2Q 19

3Q 19

4Q 19

1Q 20

2Q 20

3Q 20

4Q 20

1Q 21

2Q 21

3Q 21

(3,000,000)

16.0%

3Q 21

(3,500,000) 3Q 18

Total Net Absorption

4Q 18

1Q 19

2Q 19

3Q 19

Absorption

4Q 19

1Q 20

2Q 20

3Q 20

4Q 20

1Q 21

Deliveries

2Q 21

3Q 21

Vacancy

Source: CoStar 3Q 2021 Office Report

Market

Existing Inventory # Bldgs.

Vacancy

Total RBA

Direct SF

Total SF

Vac. %

YTD Net Absorption

YTD Deliveries

Under Const. SF

Quoted Rates

Central Expressway

109

12,603,189

2,406,114

2,537,925

20.1%

(250,165)

30,000

0

$30.90

Dallas CBD

87

29,683,280

7,616,180

8,601,148

29.0%

(386,718)

0

284,600

$26.00

East Dallas

206

8,779,786

1,441,892

1,581,445

18.0%

261,814

348,741

555,476

$27.64

Far North Dallas

514

56,841,792

13,609,445

14,884,870

26.2%

(1,267,716)

808,992

1,188,319

$31.78

Fort Worth CBD

53

8,317,364

1,731,180

1,813,164

21.8%

(94,952)

0

0

$27.67

Las Colinas

312

38,609,187

8,032,843

8,993,396

23.3%

(884,149)

111,805

300,000

$26.59

LBJ Freeway

168

21,374,782

5,003,523

5,275,747

24.7%

(414,548)

0

107,000

$23.79

Lewisville/Denton

190

8,610,051

1,267,267

1,268,325

14.7%

54,225

15,000

95,595

$25.44

Mid Cities

457

25,465,600

5,019,086

5,189,413

20.4%

438,467

32,058

163,086

$25.36

North Fort Worth

68

3,180,058

208,733

216,724

6.8%

3,446

20,000

151,012

$26.80

Northeast Fort Worth

54

3,678,380

564,408

569,265

15.5%

55,997

0

0

$20.98

Preston Center

54

5,030,525

701,427

715,547

14.2%

(56,997)

0

615,632

$42.35

Richardson/Plano

399

33,536,139

6,374,455

6,914,285

20.6%

(156,653)

131,039

184,088

$24.14

South Fort Worth

256

12,839,227

1,612,823

1,757,083

13.7%

(80,249)

0

66,788

$24.74

Southwest Dallas

94

4,263,549

639,224

641,840

15.1%

(7,962)

28,314

30,000

$23.25

Stemmons Freeway

122

13,222,366

3,328,244

3,360,067

25.4%

(13,126)

0

65,000

$20.56

Uptown/Turtle Creek

100

13,703,481

2,473,472

2,763,086

20.2%

(248,414)

0

1,016,688

$41.82

3,243

299,738,756

62,030,316

67,083,330

22.4%

(3,047,700)

1,525,949

4,843,284

$27.66

Totals

Source: CoStar 3Q 2021 Office Report

8

DALLAS CENTRALINTELLIGENCE BUSINESS DISTRICT SUBMARKET Absorption

vs. Prev. Qtr

vs. 12 Mths Ago

19,188

16,083

(596,458)

Vacancy

vs. Prev. Qtr

vs. 12 Mths Ago

29.2%

28.7%

28.2%

U/C SF

vs. Prev. Qtr

vs. 12 Mths Ago

284,600

284,600

Delivered SF

vs. Prev. Qtr

vs. 12 Mths Ago

224,370

0

0

Quoted Rates

vs. Prev. Qtr

vs. 12 Mths Ago

$26.00

$26.01

60,230

$26.08

VITAL STATS

30.0%

300,000 200,000 100,000

28.0%

0 (100,000) (200,000)

26.0%

(300,000) (400,000)

24.0%

(500,000) (600,000) (700,000)

22.0% 3Q 18

4Q 18

1Q 19

2Q 19

Absorption

3Q 19

4Q 19

1Q 20

2Q 20

3Q 20

4Q 20

1Q 21

Deliveries

2Q 21

3Q 21

Vacancy

Source: CoStar 3Q 2021 Office Report

CURRENT EVENTS

• Trammell Crow Co. has filed a permit to begin construction on its $200M project in Uptown. Construction on 2401 McKinney will begin in February and deliver in 2025. The building will be a 29-story mixed use tower with 698K SF of office space, a new Truluck’s restaurant, a health club and retail space.

• Developer Scott Rohrman has plans for a 42-story high-rise project on the east side of downtown Dallas. The development would include 200K SF of office space, 250 hotel rooms, 224 apartments and ground-floor retail space.

The Beck Group designed the skyscraper which would occupy the majority of the block at Elm and North Pearl streets. The eastern side of downtown is experiencing rapid redevelopment and the proposed building would be the tallest in the area.

• Dallas city council has approved plans for Hunt Realty’s Field Street project. The mixed-use development is one of the largest ever proposed in the downtown area and will include office buildings, residential and hotel towers, retail, restaurants and a park. Now that zoning has been approved, construction could begin as early as the second half of 2022.

• Chase Tower on Ross Avenue has landed $188M in funding. New York-based Fortis Property Group has owned the tower since 2016 and is receiving the new loan from Starwood Property Trust. The funding comes at a time when JPMorgan Chase is reportedly leaving the tower. In addition to Chase Bank, other major tenants include Deloitte, Prudential Insurance, Locke Lord, Norton Rose Fulbright, and Sheppard Mullin.

• Oilwell Supply Building, located on Lamar Street in the West End historic district, has been bought by Houston-based investor, New Waverly Holdings. This five-story historic building includes more than 70K SF of office space and was built in 1923, making it almost a century old. Over the years, it has housed a variety of business, including creative and hightech firms.

DEALS IN THE MARKET

• Bryan Tower – a 1,124,021 SF class A office building • The Hartford Building – a 182,641 SF class B office building • Purse Building – a 65K SF class A office building

NEW DEVELOPMENTS

• Field St District - Future Phase | 1100 McKinney Ave – a 722K SF class A office district (proposed) • Field Street Tower | 2012 N Field Street – a 534K SF class A office tower (proposed) • Two Arts Plaza | 1900 Routh Street – a 283K SF class A office tower (proposed) • 1401 Elm St – a 60K SF class A office tower (under construction)

LARGE EXISTING VACANCIES

• Fountain Place | 1445 Ross Avenue – 585,395 SF • Renaissance Tower | 1201 Elm Street – 535,871 SF • Santander Tower | 1601 Elm Street – 324,411 SF • Bank of America Plaza | 901 Main Street – 314,729 SF • 1700 Pacific | 1700 Pacific Avenue – 262,709 SF • Bryan Tower | 2001 Bryan Street – 224,916 SF • 300 S Pearl Expy – 197,065 SF • Chase Tower | 2200 Ross Avenue – 193,102 SF • Harwood Center | 1999 Bryan Street – 186,096 SF • Comerica Bank Tower | 1717 Main Street – 148,025 SF • One Main | 1201 Main Street – 144,248 SF • 2100 Ross Avenue – 136,335 SF • Ross Tower | 500 N Akard Street – 123,080 SF

TOP LEASE TRANSACTIONS

• Invitation Homes has signed a 39.8K SF lease in Comerica Bank Tower.

• Cue has signed a 18.9K SF lease in Saint Paul Place.

• Steptoe Johnson has signed a 14.3K SF lease in Ross Tower.

• Fisher Phillips has signed a 8K SF lease in Ross Tower.

• Greysteel Holdings has signed a 6K SF lease in Comerica Bank Tower.

9

CENTRAL INTELLIGENCE EXPRESSWAY SUBMARKET Absorption

vs. Prev. Qtr

vs. 12 Mths Ago

(10,865)

(134,945)

(115,220)

Vacancy

vs. Prev. Qtr

vs. 12 Mths Ago

20.1%

20.0%

17.3%

U/C SF

vs. Prev. Qtr

vs. 12 Mths Ago

0

0

70,532

Delivered SF

vs. Prev. Qtr

vs. 12 Mths Ago

0

30,000

58,890

Quoted Rates $31.09

vs. Prev. Qtr

vs. 12 Mths Ago

$30.90

$30.37

VITAL STATS

25.0%

200,000 150,000

20.0%

100,000 50,000

15.0%

0 (50,000)

10.0%

(100,000) (150,000)

5.0%

(200,000) (250,000)

0.0%

(300,000) 3Q 18

4Q 18

1Q 19

2Q 19

3Q 19

Absorption

4Q 19

1Q 20

2Q 20

3Q 20

4Q 20

Deliveries

1Q 21

2Q 21

3Q 21

Vacancy

Source: CoStar 3Q 2021 Office Report

CURRENT EVENTS • Dallas investor Ray Washburne just acquired the 10000 NCX Tower which is currently 70% leased. In conjunction with the acquisition, he is moving a major tenant, Advancial Federal Credit Union, into the 15-story office highrise. Advancial was located at 1845 Woodall Rodgers Freeway, also owned by Washburne and previously known as Advancial Tower. They will now be occupying 50K SF that will bring the newly acquired building to 98% leased.

NEW DEVELOPMENTS • The Central – a 500K SF class A office tower (proposed)

• Energy Square 4 – a 400K SF class A office tower (proposed)

• The Shops at Park Lane – a 352K SF class A office tower (proposed)

• The Tower at Preston Hollow Village – a 260K SF class A office tower (proposed)

DEALS IN THE MARKET • 10100 NCX – a 94,294 SF class B office building

LARGE EXISTING VACANCIES • 8080 NCX – 101,019 SF • Cityplace Tower – 95,408 SF • Energy Square 2 – 71,078 SF • The Pyramids at Park Lane North Tower – 50,016 SF

10

FAR NORTH DALLAS SUBMARKET INTELLIGENCE Absorption

vs. Prev. Qtr

vs. 12 Mths Ago

52,161

62,287

Vacancy

vs. Prev. Qtr

vs. 12 Mths Ago

25.0%

24.6%

20.2%

U/C SF

vs. Prev. Qtr

vs. 12 Mths Ago

206,433

1,068,319

1,665,706

Delivered SF

677,289

vs. Prev. Qtr

vs. 12 Mths Ago

724,000

560,330

321,334

Quoted Rates

vs. Prev. Qtr

vs. 12 Mths Ago

$31.80

$30.89

$32.13

VITAL STATS

28.0%

1,000,000

26.0%

500,000

24.0%

0

22.0%

(500,000)

20.0%

(1,000,000)

(1,500,000)

18.0% 3Q 18

4Q 18

1Q 19

2Q 19

Absorption

3Q 19

4Q 19

1Q 20

2Q 20

3Q 20

4Q 20

Deliveries

1Q 21

2Q 21

3Q 21

Vacancy

Source: CoStar 3Q 2021 Office Report

CURRENT EVENTS

• Park Ventura in Plano sold to ESJ Capital Partners of Miami. The 194K SF office park is 90% leased with tenants including Chevron, Cardinal Financial and Radnet. This is the first purchase in North Texas for ESJ Capital Partners and they plan to make upgrades to the business center.

The investor stated, “Plano is one of Dallas’ most dynamic suburbs” and is an ideal location to enter the Dallas market.

TOP LEASE TRANSACTIONS

• DeGolyer and MacNaughton has signed a 65K SF lease in Providence Towers.

• Trintech, Inc. has signed a 64K SF lease in Granite Park VII. • Cain Watters & Asco. has signed a 45K SF lease in 15 Cowboys Way. • Supreme Lending has signed a 21.2K SF lease in 5050 Quorum.

• Tri Global Energy has signed a 16K SF renewal at Bent Tree Green.

• Barings has signed a 16K SF lease in Legacy Place West.

• Tasty Restaurant Group has signed a 9K SF lease in 6201 Plano Pkwy.

• Tyton Holding Inc., a Colorado-based investment firm, has purchased Addison Airport Office Center. The 52,117 SF building recently underwent $2.25M in upgrades by Harkinson Investment Corp which had previously owned, leased, and managed the building. Improvements include a glass lobby that overlooks the airport, and the building has attached hangars that will house Tyton’s corporate aircraft.

DEALS IN THE MARKET

• The Offices Two at Frisco Station has been purchased by MetLife. VanTrust Real Estate sold the office building which is 95% leased. It is MetLife’s second purchase at Frisco Station after acquiring The Offices One in 2019.

VanTrust has completed a third building in the project and is working on another 10-story tower.

NEW DEVELOPMENTS

• AECOM, global consultancy giant and Fortune 500 company, is moving its headquarters to Dallas from Los Angeles. The relocation means Los Angeles will lose the headquarters of its largest publicly traded company.

AECOM views the relocation as a benefit due to North Texas’ corporate hub and high concentration of experienced candidates in the consulting and engineering industry. AECOM’s existing Dallas office is in One Galleria Tower.

• Jerry Jones’ Blue Star Land and Lincoln Property Co. are breaking ground on an 11-story office tower that will join the Cowboys’ headquarters and practice field, the Ford Center, the Omni hotel, and a shopping center. The more than 314K SF building will meet the demand for office space at The Star and is expected to deliver early 2023.

• Spectrum Center, institutionally owned by Granite Properties since 2010, is ready to change hands this week as one of the largest suburban Dallas office properties to hit the market in 2021. The twelve-story office campus, with more than 600K SF of office space, has undergone substantial upgrades in 2011 and 2018 to the board room, conference center, and customer lounge featuring a full kitchen. Spectrum Center is more than 70% leased with notable tenants including Concentra, Wells Fargo, and Principal Financial.

• Fourteen555 building on the Dallas North Tollway sold to Washington, D.C. based Northridge Capital. The building was constructed by developer Cawley Partners in 2018 and bought by Admiral Capital in 2019. The 250K SF building is 100% occupied with an average of eleven years remaining on current leases. Some notable tenants include Occidental Chemical, Moss Adams Accountants, and Common Desk.

• • • HLC • Deal

Spectrum Center – a 613,858 SF class A office campus Providence Towers – a 524,143 SF class A office campus The Campus at Legacy – a 394,405 SF class A office campus Trinity Square Plaza – a 59,828 SF class B office building

• 15555 N Dallas Parkway – a 504K SF class A office building (proposed) • Granite Park Six | 5501 Granite Parkway – a 439K SF class A office building (proposed) • Two Legacy West | 7950 Legacy Drive – a 414K SF class A office building (proposed) • The Offices at The Gate | 4205 Dallas Parkway – a 390K SF class A office building (proposed) • The Tower at Hall Park | 3200 Internet Boulevard – a 299K SF class A office building (proposed) • The Star - Phase IV | 17 Cowboys Way – a 299K SF class A office building (under construction) • Platinum Tower | 6899 Dallas Parkway – a 271K SF class A office building (proposed) • HQ53 Phase II | 5303 Headquarters – a 250K SF class A office building (proposed) • Fourteen555 - South Building | 14545 N Dallas Parkway – a 239K SF class A office building (proposed) • The Heritage at Spring Creek – a 220K SF class A office building (proposed) • Plaza at Legacy II | 5465 Legacy Drive – a 200K SF class A office building • The Parkwood | 3930 N Dallas Parkway – a 120K SF class A office building (under construction)

LARGE EXISTING VACANCIES • 5400 Legacy Drive – 1,587,458 SF

• The Campus at Legacy West – 551,430 SF • 5320 Legacy Drive – 483,743 SF • Liberty Mutual Campus – 382,798 SF • Legacy Commons – 296,433 SF • International Plaza II – 233,230 SF • 6400 Legacy Drive – 226,835 SF

11

FORT WORTH CENTRAL BUSINESS DISTRICT SUBMARKET INTELLIGENCE Absorption

vs. Prev. Qtr

vs. 12 Mths Ago

17,216

3,401

(130,668)

Vacancy

vs. Prev. Qtr

vs. 12 Mths Ago

16.7%

16.9%

15.6%

U/C SF

vs. Prev. Qtr

vs. 12 Mths Ago

-

-

vs. Prev. Qtr

vs. 12 Mths Ago

-

-

vs. Prev. Qtr

vs. 12 Mths Ago

$27.49

$27.46

Delivered SF Quoted Rates $27.53

VITAL STATS

20.0%

200,000 150,000 100,000

18.0%

50,000 0

16.0%

(50,000) (100,000)

14.0%

(150,000) (200,000)

12.0%

(250,000) 10.0%

(300,000) 3Q 18

4Q 18

1Q 19

2Q 19

Absorption

3Q 19

4Q 19

1Q 20

2Q 20

Deliveries

3Q 20

4Q 20

1Q 21

2Q 21

3Q 21

Vacancy

Source: CoStar 3Q 2021 Office Report

CURRENT EVENTS

Southern Land Company, a national real estate developer of mixed-use developments and master-planned communities, has begun off-site work for its new 27-story luxury high-rise rental residences at 969 Commerce Street in Fort Worth, marking the start of a significant new residential project in downtown Fort Worth. SLC’s residential community will feature more than 300K SF with 302 for-rent efficiency, one, two, and three-bedroom apartment homes and penthouses, eight floors of above-grade parking, and abundant resortinspired amenities. Additionally, the community will include retail and restaurant space on the first floor. “These will be the first luxury high-rise rental residences in downtown Fort Worth, and we could not be more excited to have the off-site work underway,” said Tim Downey, founder and CEO of Nashvillebased Southern Land Company. “We believe this project will attract residents who seek a refined living experience in the heart of the city. Additionally, we expect it to help pull in more transformative projects that will only add to Fort Worth’s vibrant culture and economy. We are proud to build a community here and look forward to seeing it come to life.”

Calvetti Ferguson, a Houston, Texas-based CPA firm, will relocate its Fort Worth office to the top floor of One City Place by January 2022. The firm will vacate its 8K-plus SF in Ridglea Bank Building about six miles away. So far in 2021, the firm has been involved in two major real estate transactions, including the office lease in Chase Tower in downtown Dallas, Texas. The firm’s new office space will allow for double the current employee headcount. Under the lease agreement, Calvetti Ferguson will occupy 12,131 SF on the top floor of One City Place, which after construction will include two conference rooms, a renovated kitchen and breakroom, and brand-new workspaces for its employees.

12

TOP LEASE TRANSACTIONS • An undisclosed tenant has signed a 16,110 SF lease in Two City Place.

• Calvetti Ferguson has signed a 12,131 SF sublease in One City Place.

DEALS IN THE MARKET • 307-309 W 7th Street – a 439,802 SF class B office building

• 115 W 7th Street – a 300,347 SF class B office building • 110 W 7th Street – a 101,390 SF class B office building LARGE EXISTING VACANCIES • 115 W 7th Street – a 186,684 SF class B vacancy • Bank of America Tower – a 124,604 class A vacancy • 210 E 7th Street – an 82,226 SF class B vacancy • Frost Tower – a 54,528 SF class A vacancy • 777 Main – a 54,399 SF class A vacancy • Burnett Plaza – a 52,502 SF class A vacancy • Oil & Gas | Star-Telegram Building – a 42,381 SF class B vacancy

LAS COLINAS SUBMARKET INTELLIGENCE Absorption

vs. Prev. Qtr

vs. 12 Mths Ago

208,830

(400,962)

(500,961)

Vacancy

vs. Prev. Qtr

vs. 12 Mths Ago

22.6%

23.2%

20.6%

U/C SF

vs. Prev. Qtr

vs. 12 Mths Ago

300,000

439,280

Delivered SF

vs. Prev. Qtr

vs. 12 Mths Ago

0

96592

80,806

Quoted Rates

vs. Prev. Qtr

vs. 12 Mths Ago

$26.59

$26.13

300,000

$26.64

VITAL STATS

25.0%

2,000,000 1,500,000

20.0% 1,000,000 15.0%

500,000 0

10.0%

(500,000) 5.0% (1,000,000) (1,500,000)

0.0% 3Q 18

4Q 18

1Q 19

2Q 19

Absorption

3Q 19

4Q 19

1Q 20

2Q 20

3Q 20

4Q 20

Deliveries

1Q 21

2Q 21

3Q 21

Vacancy

Source: CoStar 3Q 2021 Office Report

CURRENT EVENTS

• Cypress Waters has two more tenants heading to its office development. General Motors and Island Technology Inc. will be joining tenants such as 7-Eleven, CoreLogic, Nokia, Brinker International, and Toyota Industries Commercial Finance at Cypress Waters. General Motors will lease more than 9K SF and Island Technology will lease almost 6.5K SF. • PenFed Credit Union is adding hundreds of jobs at a new office location in Irving. The firm signed a 30K SF lease in Las Colinas Highlands located at 6191 N. State Highway 161.

PenFed is expanding their mortgage origination and servicing business and plans to hire up to 300 new team members.

• The Park West buildings in Farmers Branch are being marketed for sale by Newmark. The two office buildings recently underwent $17M in upgrades and contain almost 700K SF. Park West is 66% leased with major tenants including Haggar, Hyla, Laredo Petroleum, and Martin Manetta.

• Dallas’ Dominus Commercial and Convergent Capital Partners have acquired 600 East Las Colinas. The tower is more than 75% leased and has 550K SF of space with major tenants including JPI, Fleet Pride, and CHC Helicopter. The new ownership group has already committed approximately $20M in renovations. Gary Carr, vice chairman at Newmark’s Dallas office said, “This sale reflects the growing demand we are seeing for high-quality, value-add profile assets in top-tier submarkets across Dallas-Fort Worth.”

TOP LEASE TRANSACTIONS

• MultiView, Inc. has signed a 82K SF renewal in One Panorama Center.

• American Fire Protection Group has signed a 37.2K SF renewal in Northgate Business Park II. • PenFed Credit Union has signed a 30K SF lease in Las Colinas Highlands.

• Fleetpride Inc. has signed a 23.3K SF expansion in 600 E. Las Colinas.

• Concordia University Texas has signed a 19.6K SF lease in Two Colinas Crossing.

• Island Technology has signed a 15.4K SF lease at Cypress Waters Office Park.

DEALS IN THE MARKET

• Royal Ridge I-IV – a 506,057 SF class B office campus • Riverside Commons – a 469,214 SF class A office campus • 300 E John Carpenter – a 403,429 SF class A office building • Fuller Ridge I & II – a 285,493 SF class B office campus • Connection Park I & II – a 282,356 SF class A office campus • 6555 Sierra Drive – a 247,254 SF class B office building • 200 W John Carpenter – a 189,776 SF class C office building • 5601 Executive – a 163,856 SF class B office building

NEW DEVELOPMENTS

• Freeport Commons – a 1.2M SF class A office park (proposed) • 2999 Olympus Boulevard – a 300K SF class A office park (under construction) • West Gate at Coppell – a 240K SF class A office building (proposed) • Las Colinas Corporate Center II – a 200K SF class A office building (proposed) • 9000 Olympus Boulevard – a 176K SF class A office park (proposed)

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

6000 Connection – 292,072 SF One MacArthur Ridge – 249,838 SF Regent Commons – 214,985 SF Intellicenter - Dallas – 200,987 SF Horizon Way Business Park – 180,788 SF Williams Square Central – 174,560 SF Browning Place III – 170,848 SF Las Colinas Corporate Center I – 137,145 SF 3660 Regent – 120,000 SF

13

LBJ SUBMARKET INTELLIGENCE Absorption

vs. Prev. Qtr

vs. 12 Mths Ago

(207,595)

(249,962)

(208,269)

Vacancy

vs. Prev. Qtr

vs. 12 Mths Ago

25.9%

24.6%

22.2%

U/C SF Delivered SF 107,000 Quoted Rates $24.37

vs. Prev. Qtr

vs. 12 Mths Ago

107,000

107,000

vs. Prev. Qtr

vs. 12 Mths Ago

-

-

vs. Prev. Qtr

vs. 12 Mths Ago

$23.79

$22.75

VITAL STATS

27.0%

300,000

26.0%

200,000

25.0%

100,000

24.0%

0

23.0%

(100,000)

22.0%

(200,000)

21.0%

(300,000) (400,000)

20.0% 3Q 18

4Q 18

1Q 19

2Q 19

Absorption

3Q 19

4Q 19

1Q 20

2Q 20

3Q 20

4Q 20

Deliveries

1Q 21

2Q 21

3Q 21

Vacancy Source: CoStar 3Q 2021 Office Report

CURRENT EVENTS • Midway Centre, a 63,592 SF office building has sold to Dallas’ Twinrose Investments. Clear Call Properties sold the building. Meyer Commercial brokered the sale with Dickey Property Co. Steve Heldenfels of Jones Lang LaSalle arranged acquisition financing with John Klein of Inwood National Bank.

TOP LEASE TRANSACTIONS • North Texas Behavioral Health Authority has signed a 14K SF lease in Gateway Tower

• Highpoint Administrative Services has signed a 8K SF renewal in 4455 Lyndon B. Johnson Fwy.

• Relaro Medical Trials has signed a 7.6K SF lease in 12801 NCP III.

• King & Fisher Law Group has signed a 2.9K SF lease in 12221 Merit Drive.

14

DEALS IN THE MARKET • Galleria Square – a 49,504 SF class B office building NEW DEVELOPMENTS • Park Heritage – 1.15M SF (proposed) • Four Lincoln Centre – 400K SF (proposed) • Park Tower at Dallas Midtown – 376,870 SF (proposed) • The Inwood at Alpha West – 300K SF (proposed) LARGE EXISTING VACANCIES • Park Central 8 – 225,924 SF • 7171 Forest Lane – 158,336 SF • Three Galleria Tower – 133,888 SF • Pinnacle Tower – 98,412 SF • The Crossings II – 75,099 SF • Lake Highlands Tower – 74,252 SF • The Hightower – 66,609 SF • One Lincoln Centre – 66,094 SF • Crosspoint Atrium – 65,095 SF

MIDINTELLIGENCE CITIES SUBMARKET Absorption

vs. Prev. Qtr

vs. 12 Mths Ago

94,275

23,301

(33,329)

Vacancy

vs. Prev. Qtr

vs. 12 Mths Ago

9.3%

9.9%

10.5%

U/C SF

vs. Prev. Qtr

vs. 12 Mths Ago

2,800

7,600

vs. Prev. Qtr

vs. 12 Mths Ago

-

90,000

9,900 Delivered SF Quoted Rates $23.92

vs. Prev. Qtr

vs. 12 Mths Ago

$23.82

$23.56

VITAL STATS

12.0%

250,000 200,000 150,000

10.0%

100,000 50,000 8.0% 0 (50,000) 6.0%

(100,000) (150,000)

4.0%

(200,000) 3Q 18

4Q 18

1Q 19

2Q 19

Absorption

3Q 19

4Q 19

1Q 20

2Q 20

Deliveries

3Q 20

4Q 20

1Q 21

2Q 21

3Q 21

Vacancy Source: CoStar 3Q 2021 Office Report

CURRENT EVENTS • On June 22nd, Bedford City Council unanimously

approved a five-year capital improvement plan to fix the aging major thoroughfares and neighborhood streets throughout Bedford including Forest Ridge Drive, Harwood Road, and Bedford Road. Updates to water and sewer lines, sidewalks, and traffic signals will also be included. Work is already underway on Harwood Road where the water and sewer lines are being replaced with the road repair work set to commence Summer 2022.

The ambitious plan is expected to cost roughly $28.8M.

• Dallas-Fort Worth-Arlington is ranked as the No. 3 best

places to work in tech, according to SmartAsset. Being its second annual study, SmartAsset compared 50 of the largest metro areas across the country across 5 metrics: percentage of workers employed in tech, average salary for tech workers, ratio of how that salary compares to other fields, percentage of current bachelor’s jobs listed that are in tech, and cost of living.

TOP LEASE TRANSACTIONS • Guardian Pharmacy has signed a 14,505 SF lease in 711 Directors Drive.

• DaVita Dialysis has signed a 6,989 SF lease in 109 W Harwood.

• Familia Care has signed a 6,079 SF lease in 300 W

HLC Deal

Arbrook.

DEALS IN THE MARKET • Richland Corporate Centre – a 142,425 SF class A office building

• 1351 E Bardin Road – a 115,490 SF class B office building

• 3400 William D Tate – a 56,520 SF class B office building

• Main & Main Street – a 55K SF Class B mixed use 4 building office portfolio

NEW DEVELOPMENTS • Charles Schwab Campus – a 616,999 SF class A complex • 2101 Westpark Court – a 60KSF class A medical office building

• 1700 N White Chapel Boulevard – a 48K SF class A office building

LARGE EXISTING VACANCIES • 2200 W Airfield Drive – 310,350 SF • 1900 W Kirkwood Boulevard – 175,114 SF • 2050 Roanoke Road – 130,199 SF • 1500 Solana Boulevard | Building 1 – 72,138 SF • 1500 Solana Boulevard | Building 5 – 69,562 SF • 950 E State Highway 114 – 66,707 SF • 2208 Highway 121 – 46,052 SF • 500 E Border Street – 42,668 SF & 41,863 SF • 3400 William D Tate Avenue – 40,738 SF

• USMD has signed a 5,565 SF lease in 700 Highlander.

HLC Deal

15

NORTH FORT WORTH SUBMARKET INTELLIGENCE Absorption

vs. Prev. Qtr

vs. 12 Mths Ago

(182,676)

20,511

37,092

Vacancy

vs. Prev. Qtr

vs. 12 Mths Ago

9.3%

5.1%

5.8%

8.0%

U/C SF

vs. Prev. Qtr

vs. 12 Mths Ago

6.0%

162,000

128,000

vs. Prev. Qtr

vs. 12 Mths Ago

13,025

10,420

vs. Prev. Qtr

vs. 12 Mths Ago

$28.69

$28.58

211,000 Delivered SF 4,100 Quoted Rates $28.78

VITAL STATS

12.0%

200,000 150,000

10.0% 100,000 50,000 0 (50,000) (100,000)

4.0%

(150,000) 2.0% (200,000) (250,000)

0.0% 3Q 18

4Q 18

1Q 19

2Q 19

3Q 19

4Q 19

Absorption

1Q 20

2Q 20

3Q 20

4Q 20

1Q 21

Deliveries

2Q 21

3Q 21

Vacancy

Source: CoStar 3Q 2021 Office Report

CURRENT EVENTS

North Fort Worth has seen a massive increase in its population over the course of the past year, and is now having to work towards changes to accommodate the increase in traffic.

North Fort Worth Alliance President Rusty Fuller thinks the issue speaks to a larger narrative across the county: The roads aren’t able to keep up with the area’s rapid development.

Fort Worth had the third largest increase in people among the nation’s largest cities last year. “There’s too many needs and there’s not enough money,” Fuller said. The rest of the projects still stand a chance through $75M in discretionary funds being distributed to commissioners for transportation projects in their precincts. Another $125M is set aside for multijurisdictional projects. The projects won’t necessarily be completed in the order they’re ranked, county administrator G.K. Maenius said, and the first project that’ll be taken on is subject to change. Of the 33 projects approved, nearly 40% are in the northern part of the county. Fuller said his group, while focusing on quality of life issues in far north Fort Worth, gets involved in transportation-related issues as well.

Fort Worth is now the 12th largest city in the United States, and is closing in on 1M residents, according to the latest Census Bureau estimates. One of the more surprising aspects of this growth is where it’s happening. The fastest-growing part of the city is in far North Fort Worth, where land is cheap and plentiful. That isn’t likely to change any time soon. The other large surges in growth all came from the city center, the census shows. The Bureau’s maps of Fort Worth are all divided into tracks. The West 7th and Lindwood areas of west-central Fort Worth grew from 1,316 residents in 2010 to 4,824 residents in 2020 — an increase of 266%. The next highest census district was the downtown-Upper Westside zone, which spurted from 4,359 people a decade ago to 8,856 last year, which represents a 103% growth. The Near Southside, Panther Island (near downtown), and the Rock Island areas each grew between 36 and 65%.

16

TOP LEASE TRANSACTIONS • An undisclosed Tenant has signed a 27,241 SF lease at 1500 Solana.

• ABC Behavioral Health has signed a 7,600 SF lease at 8317 Whitley Road.

• Connections Wellness Group has signed a 5K SF lease at 9726 North Beach Street.

DEALS IN THE MARKET • 1301 Solana Boulevard – a 360,883 SF class A office building

• 2301 Eagle Parkway – a 73,747 SF class A office building

• 534 N Main Street – a 49,183 SF class B office building • 8224 White Settlement Road – a 27,716 SF class B office building

NEW DEVELOPMENTS • 12600 Willow Springs Road – a 54k SF class A office building set to deliver October 2022

• Alta Vista Road & N Beach – a 48K SF class A office building set to deliver October 2021

• 3800 N Tarrant Parkway – a 29K SF class B office building set to deliver May 2022

LARGE EXISTING VACANCIES • 13650 Heritage Parkway – 164,333 SF • 5555 N Beach Street – 163,283 SF • 2601 Meacham Boulevard – 162,845 SF

PRESTON CENTER SUBMARKET INTELLIGENCE Absorption

vs. Prev. Qtr

vs. 12 Mths Ago

1,617

(33,648)

(8,831)

Vacancy

vs. Prev. Qtr

vs. 12 Mths Ago

14.0%

14.0%

12.5%

U/C SF

vs. Prev. Qtr

vs. 12 Mths Ago

688,368

297,000

Delivered SF

vs. Prev. Qtr

vs. 12 Mths Ago

0

0

0

Quoted Rates

vs. Prev. Qtr

vs. 12 Mths Ago

$42.25

$41.54

688,368

$41.79

VITAL STATS

16.0%

150,000

100,000

14.0%

50,000 12.0% 0 10.0% (50,000) 8.0%

(100,000)

6.0%

(150,000) 3Q 18

4Q 18

1Q 19

2Q 19

Absorption

3Q 19

4Q 19

1Q 20

2Q 20

Deliveries

3Q 20

4Q 20

1Q 21

2Q 21

3Q 21

Vacancy Source: CoStar 3Q 2021 Office Report

CURRENT EVENTS • New York-based banking giant Citigroup is planning

a new office location in Preston Center. The bank will lease more than 9,000 SF in Berkshire Court. Gensler is designing the new office which will cost $7.5M and is scheduled to open in July of 2022. Citibank does not have a major retail banking presence in Dallas, and they have not disclosed which operations will be in the new location.

TOP LEASE TRANSACTIONS • Arctos Sports Partners has signed a 17K SF lease in Weir’s Plaza.

• Riata Capital has signed a 8.7K SF lease in Weir’s Plaza.

DEALS IN THE MARKET • Bluffview Towers – a 196,346 SF class A office campus • The Terraces at Douglas Center – a 173,583 SF class A office building

• One Preston Centre – a 76,741 SF class A office building.

NEW DEVELOPMENTS • 8111 Douglas – a 318K SF class A office building • Weir’s Plaza – a 297K SF class A office building • The Terminal at Katy Trail – a 72K SF class A office building

LARGE EXISTING VACANCIES • 8343 Douglas at Douglas Center – 64,278 SF • Bluffview Towers – West – 61,228 SF

17

RICHARDSON/PLANO/ALLEN/MCKINNEY SUBMARKET INTELLIGENCE Absorption

vs. Prev. Qtr

vs. 12 Mths Ago

(277,075)

325,247

(84,739)

VITAL STATS

22.0%

300,000 21.0%

200,000

Vacancy

vs. Prev. Qtr

vs. 12 Mths Ago

21.2%

20.4%

19.5%

20.0%

U/C SF

vs. Prev. Qtr

vs. 12 Mths Ago

19.0%

405,349

420,557

vs. Prev. Qtr

vs. 12 Mths Ago

842,109 Delivered SF Quoted Rates $24.32

115,032

100,000

vs. Prev. Qtr

vs. 12 Mths Ago

$24.48

$23.90

400,000

100,000 0 (100,000) (200,000)

18.0%

(300,000) (400,000)

17.0%

(500,000) (600,000)

16.0% 3Q 18

4Q 18

1Q 19

2Q 19

3Q 19

Absorption

4Q 19

1Q 20

2Q 20

Deliveries

3Q 20

4Q 20

1Q 21

2Q 21

3Q 21

Vacancy Source: CoStar 3Q 2021 Office Report

CURRENT EVENTS • Headington Energy Partners filed a state permit to

construct an 18.7K SF single-story office building in McKinney. Construction on the $3M project began in September and deliver in September of 2022.

• MD7 LLC, a California-based mobile network company,

is relocating from San Diego to take 25K SF of office space in One Bethany West in Allen. The company plans to invest $6.8M in the new headquarters and create more than 200 jobs. MD7 LLC evaluated numerous cities but ultimately decided on Allen, as its development has seen more than $475M in commercial projects in the past three years.

• The $2B Cityline campus has plans to expand even

more with three (3) office towers of almost 1.4M SF in office space. The project today features 2.6M SF occupied by State Farm Insurance, a 148-room hotel, almost 3,000 apartments, and more than 200K SF of restaurant and retail space. KDC is already pitching the properties to potential office tenants, with the largest building being an 18-story, 513K SF tower.

TOP LEASE TRANSACTIONS • Wunderman Thompson Data has signed a 54.8K SF lease in Campbell Forum II.

• MD7 has signed a 25K SF lease in One Bethany West building.

• Osiris Capital, LLC has signed a 12K SF lease in Spring Valley Business Center.

• Kroll Inc. has signed a 11.8K SF lease in One Lake Park.

• MaxDecisions, Inc. has signed a 3.1K SF lease in One Lake Park.

18

DEALS IN THE MARKET • 2601 Telecom – a 100,310 SF class B office building • 2929 NCX – a 85,089 SF class B office building • Greenway Plaza I & III – a 141,950 SF class A office building complex

NEW DEVELOPMENTS • CityLine – 2M SF (proposed) • 7 CityLine – 417K SF (proposed) • Legacy Central 5 – 300K SF (proposed) • One Heritage Creekside – 250K SF (proposed) • One Bethany Central – 250K SF (proposed) LARGE EXISTING VACANCIES • 601 Data – 423,123 SF • 465 Independence Parkway – 251,347 SF • 3400 Cityline – 215,132 SF • Creekview II – 209,600 SF • 2200 George Bush – 176,831 SF • 1125 E Campbell – 168,968 SF • Lookout Park I – 156,219 SF • Cardinal Park 8 – 142,356 SF

SOUTHWESTINTELLIGENCE FORT WORTH SUBMARKET Absorption

vs. Prev. Qtr

vs. 12 Mths Ago

80,768

93,271

(153,342)

Vacancy

vs. Prev. Qtr

vs. 12 Mths Ago

10.5%

11.0%

10.9%

U/C SF

vs. Prev. Qtr

vs. 12 Mths Ago

87,600

90,100

vs. Prev. Qtr

vs. 12 Mths Ago

122,000 Delivered SF Quoted Rates $26.42

24,263

-

vs. Prev. Qtr

vs. 12 Mths Ago

$26.35

$26.12

VITAL STATS

14.0%

150,000 100,000

13.0%

50,000

12.0%

0 11.0% (50,000) 10.0% (100,000) 9.0%

(150,000)

8.0%

(200,000)

7.0%

(250,000) 3Q 18

4Q 18

1Q 19

2Q 19

3Q 19

Absorption

4Q 19

1Q 20

2Q 20

3Q 20

4Q 20

1Q 21

Deliveries

2Q 21

3Q 21

Vacancy Source: CoStar 3Q 2021 Office Report

CURRENT EVENTS

A Fort Worth developer is making a big bet on his hometown.

John Goff is bringing his prestigious Crescent real estate, known to many Dallasites, to Cowtown. With great pride, Goff walked between Fort Worth‘s storied Kimbell and Modern art museums, near where his new $250 million Crescent development will sit. Goff announced the luxury project earlier this year, “It’s time. Fort Worth is ready for a first-class hotel. I think it’s been needed for some time,” Goff said. The development is just a rendering now, but in two years the Crescent will boast a 200-room luxury hotel, restaurant, rooftop lounge, offices, and 170 residential units in the heart of Fort Worth’s Cultural District. A lot of developers have unsuccessfully tried to do a project like this for many years.

Goff said relationships with the neighboring museums helped him gain trust. “I think, first of all, we are local. We live here. So we are not an out-of-town developer coming in trying to exercise our influence. We love these museums. We respect the architecture and the limitations that they say they needed in that development and they were frankly very easy to work around for us.”

Agency Habitat, the rebranded agency that was formerly GCG Marketing, is planning a celebration of its new focus and its new company headquarters at an open house in November. Agency Habitat rebranded, retrofitted a warehouse into a state-of-the-art agency space and opened an on-site full-service audio/video production facility, Lowtown Studios. Agency Habitat’s new building is west of downtown Fort Worth, just north of the city’s burgeoning Foundry District. The former industrial building has been reimagined as an airy, open-concept environment that eschews traditional offices and cubicles in favor of room for collaboration and creative content.

TOP LEASE TRANSACTIONS • Fort Capital has signed a 27,673 SF lease in 1301 W 7th Street.

• Baylor Scott & White has signed a 13,087 SF lease in 1250 8th Avenue.

• Tarrant County Community Development has signed a 7,605 SF lease in 2501 Parkview.

DEALS IN THE MARKET • 3150 McCart Avenue – a 46,292 SF class C office building

• 108 South Freeway – a 41,427 SF class C office building

• 3509 Hulen Street – a 27,766 SF class B office building NEW DEVELOPMENTS • 1320 Hemphill Street – a 48,594 SF class A office building set to deliver January 2022

• 4000 Bryant Irvin – a 18,194 SF class A office building set to deliver March 2022

LARGE EXISTING VACANCIES • 4055 International Plaza – a 53,013 SF • 405 West Loop 820 – a 101,043 SF • One Ridgmar Centre – a 36,796 SF • Western Place I – a 19,871 SF • 1300 Summit Avenue – a 15,543 SF

19

STEMMONS SUBMARKET INTELLIGENCE Absorption

vs. Prev. Qtr

vs. 12 Mths Ago

77,672

45,133

(72,737)

Vacancy

vs. Prev. Qtr

vs. 12 Mths Ago

VITAL STATS 13.0%

25.4%

25.6%

U/C SF

vs. Prev. Qtr

vs. 12 Mths Ago

-

-

vs. Prev. Qtr

vs. 12 Mths Ago

9.0%

0

8.0%

vs. Prev. Qtr

vs. 12 Mths Ago

7.0%

$20.49

$20.25

Delivered SF 0 Quoted Rates $20.41

0

100,000 50,000

12.0%

24.8% -

150,000

14.0%

0 11.0% (50,000) 10.0% (100,000) (150,000) (200,000) (250,000) 3Q 18

4Q 18

1Q 19

2Q 19

3Q 19

4Q 19

Absorption

1Q 20

2Q 20

Deliveries

3Q 20

4Q 20

1Q 21

2Q 21

3Q 21

Vacancy

Source: CoStar 3Q 2021 Office Report

CURRENT EVENTS • As of June 30th, more than half of Dallas-Fort Worth’s

office workers are officially back in their buildings.

Additionally, major employers are expecting to have most employees back in the office by September. Nationwide, fewer than 33% of buildings are staffed with workers.

• In the first half of 2021, Dallas was the country’s top market

for commercial property investments. Nearly $13.4B in commercial property deals were executed in the first six months of this year. Sales of apartment communities, warehouses, and the Crescent all contributed to deal activity. Dallas outranked both Atlanta and Los Angeles which had $11.1B and $10.7B in deals in the first six months.

• Leasing in August surpassed the 2017-2019 average, and

the Dallas-Fort Worth Office market is officially making a rebound. According to CoStar, the market reported 2.1M SF of leasing activity in August, 622,600 SF more than the average in 2017-2019. While activity is evident across the metroplex, the Upper Tollway/West Plano and Quorum Bent Tree submarkets capture 20% of total leasing activity.

20

TOP LEASE TRANSACTIONS • National Safety Training Solutions has signed a 3.7K SF lease in 7800 Ricchi Tower.

NEW DEVELOPMENTS • West Love | 1345 Mockingbird Lane – a 600K SF class A office building (proposed)

• West Love | 2345 Mockingbird Lane – a 250K SF class A office building (proposed)

• The Design District Tower – a 243,100 SF class A office building (proposed)

• 1333 Oak Lawn Avenue – a 122,768 SF class A office building (proposed)

• 1400 W Mockingbird Lane – a 66,504 SF class A office building (proposed)

• 111 Glass Street – a 30K SF class B office building (proposed)

LARGE EXISTING VACANCIES • Pegasus Park – 152,071 SF • 9999 Technology Boulevard W – 150,272 SF • The Connection at 8600 – 101,530 SF • 8777 N Stemmons – 76,968 SF

SUBMARKETUPTOWN INTELLIGENCE Absorption

vs. Prev. Qtr

vs. 12 Mths Ago

178,308

(130,338)

(229,307)

Vacancy

vs. Prev. Qtr

vs. 12 Mths Ago

18.2%

19.9%

17.2%

U/C SF

vs. Prev. Qtr

vs. 12 Mths Ago

1,015,992

656,078

Delivered SF

vs. Prev. Qtr

vs. 12 Mths Ago

0

0

0

1,015,992

Quoted Rates $41.54

vs. Prev. Qtr

vs. 12 Mths Ago

$41.82

$40.68

VITAL STATS

25.0%

400,000 300,000

20.0% 200,000 15.0%

100,000 0

10.0%

(100,000) 5.0% (200,000) 0.0%

(300,000) 3Q 18

4Q 18

1Q 19

2Q 19

3Q 19

Absorption

4Q 19

1Q 20

2Q 20

3Q 20

4Q 20

Deliveries

1Q 21

2Q 21

3Q 21

Vacancy Source: CoStar 3Q 2021 Office Report

CURRENT EVENTS • Texas-based real estate company, Stonelake Capital

Partners, has purchased a four-story building on McKinney and Routh across from Whole Foods. The 40K SF Uptown office building, 2602 McKinney, was acquired after Stonelake Capital closed a new $555M investment fund. Most of the participants in the fund were institutional investors, hospital systems, pension funds, and private foundations.

HLC will handle the leasing for 2602 McKinney.

• Two financial tenants are expanding their footprint

NEW DEVELOPMENTS • 2401 McKinney – a 673,245 SF office building (proposed)

• 2323 Cedar Springs Road – a 623,610 SF office building (proposed)

• Harwood XII – a 541,640 SF office building (proposed) • McKinney & Lemmon – a 487K SF office building (proposed)

• Victory Center | 2371 Victory Avenue – a 466K SF office building (proposed)

• Parkside Terraces – a 425K SF office building (proposed)

in The Crescent. Houlihan Lokey is taking 44,337 SF which will make them one of The Crescent’s largest tenants. Additionally, investment firm Rockefeller Capital Management is expanding to 19,291 SF after officing in The Crescent since 2018. This year alone, The Crescent has seen more than 300K SF of new, expanded, and renewed office leases.

• Victory Commons One | 2601 Victory Avenue – a

• Two new high-rises are on the way from developers

• 2727 Turtle Creek – a 260,072 SF office building

Granite Properties- one in Uptown Dallas and the other in Plano. The Uptown tower, 23 Springs, has been in the works since 2018 and will be located at Cedar Springs Road and Maple Avenue. The $169M mixed-use building has taken two years to design and will break ground next year with a 26-story office building, a one-story restaurant, and six levels of below grade parking.

TOP LEASE TRANSACTIONS • Houlihan Lokey has signed a 44K SF lease in The Crescent.

• Colliers International Realty has signed a 28.8K SF

364,037 SF office building (under construction)

• Harwood No. 14 – a 359,914 SF office building (under construction)

• The Quad | 2699 Howell Street – a 335K SF office building (proposed)

• The Link | 2601 Olive Street – a 292,041 SF office building

(proposed)

• The Fairmount Building – a 62,960 SF office building (proposed)

LARGE EXISTING VACANCIES • Parkside Tower – 111,728 SF • 2501 Cedar Springs – 110,415 SF • The Centrum – 106,523 SF • 1919 McKinney Avenue – 96,903 SF • 2401 Cedar Springs – 69,471 SF • 1845 Woodall Rodgers – 51,468 SF • 2000 McKinney Avenue – 51,006 SF

lease in 17Seventeen McKinney.

• O’Melveny & Myers has signed a 25.1K SF lease in Saint Ann Court.

• Skyview has signed a 15.4K SF lease in Rosewood Court.

• Pasaca Capital Inc. has signed a 7.4K SF lease in The Crescent.

• Snell & Wilmer has signed a 6.1K SF lease in Harwood No. 6 Saint Ann Court.

21

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