T HI RD Q UART E R 2 0 1 3 • Q UO RUM - BENT TR EE Mary Kay and is currently 50% preleased.
Leasi ng Activ i ty
Quorum/Bent Tree’s high vacancy rates and healthy concessions continue across the submarket; however, numerous factors point to increased demand over the coming years. Construction to the south along I-635, which began in April 2011 and is expected to take five years to complete, has pushed tenants north. Tightening supply and increased rental rates in Legacy have also encouraged tenants to seek lower cost options in Quorum/Bent Tree and surrounding submarkets. Further redevelopment in the submarket will also entice new businesses into the area.
Investment Sales •
•
Briargrove Place – 128,092 SF – Crown Sterling Properties is marketing the 97.3% leased asset for sale. Gramercy Center North and South – 256,155 SF – JLL is marketing the asset for sale on behalf of Billingsley Co.
TENANT
BUILDING
Ryan & Co
Galleria Tower III
S QUA RE FEET
National Bankruptcy
The Aberdeen
67,250
SystemWare
Colonnade I
45,076
Sundown Energy
Knoll Trail Plaza
38,000
RMG Networks
The Colonnade I/II/III
32,000
Capital Senior Living
Parkway Office Center South
26,436
Placemark Investments
One Hanover Park
25,859
NDEX
Forum at Belt Line
18,705
Mary Crowley Medical Research
Centura Tower
16,934
Goldin, Peiser & Peiser
Parkway North
16,487
INS
Sojourn Office Center
14,039
Hyphen Solutions
Bent Tree Tower II
12,911
AXIOMetrics
Quorum Place
10,258
Dent Wizard
Kellway Business Center
130,000
8,250
Development •
•
Dallas Midtown – a 430 acre, $3 billion redevelopment of the Valley View mall area spearheaded by Beck Ventures.
Deals i n the Market
Knoll Trail Plaza – a 120,000 SF, four-story Class A office building being developed by Cawley Partners. TENANT
Fo r e c a s t Landlords in Quorum/Bent Tree will continue their rate war for new tenants over the next six months. Well-capitalized landlords focused on occupancy will continue to win the lion’s share of new deals in this submarket. Construction on I-635 and economic incentives from Plano and Frisco will continue to attract tenants from Quorum and surrounding submarkets. Examples include Yum! Brands and EnCana, who have chosen to leave Quorum enticed by new product farther north. Tough economic times will continue to produce short sales and foreclosures, primarily with older, functionally obsolete buildings. Construction noise and delays along I-635 will continue to push LBJ tenants to surrounding submarkets, including Quorum/ Bent Tree. As the economy picks up momentum and rates north of 190 continue to increase, Quorum/Bent Tree will be poised for improvement.
S QUARE F E E T
O CCUPA NCY
FedEx Office
225,000
Concentra
125,000
2014
National Default Exchange
100,000
Various
2015
1st Data
70,000
-
Clear Channel
50,000
2014
Invesco
45,000
2015
Columbus Data Services
25,000
2015
GHA Architects
30,000
2015
LenderLive
25,000
-
B i g B lo ck Avai lab i li ties
13
BUILDING
ADDRESS
The Aberdeen
14841 N Dallas Pky
S QUA RE FEET 184,503
16675 Addison Rd
16675 Addison Rd
137,992
Stanford Corporate Centre
14001 N Dallas Pky
129,564
Galleria North Tower II
13727 Noel Rd
93,875
Alpha Tower
5757 Alpha Rd
66,112
Greenhill Park
14131 Midway Rd
61,682
The Princeton
14651 N Dallas Pky
52,688
Trinity Centre-West
2312 E Trinity Mills Rd
50,082
Stream Realty Partners