DALLAS — Dallas-based Paceline Equity Partners has signed a 12,465-square-foot lease at The Offices at Turtle Creek Village in the Oak Lawn area of Dallas. The 18-story, 229,868-square-foot building was originally constructed in 1973 and offers a conference room and a tenant lounge. Travis Boothe and Zach Bean of Cushman & Wakefield represented the tenant in the lease negotiations. Tommy Nelson and Alexandra Cullins of CBRE represented the landlord, Los Angeles-based CIM Group, which acquired the building in 2017.
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Lee & Associates’ First-Quarter 2023 Sector-by-Sector Analysis Indicates Market-Wide Cooling
High interest rates and economic uncertainty in the first quarter of this year contributed to lower absorption and declining rent growth in industrial, retail and multifamily sectors across the country, with some regional exceptions, according to Lee & Associates’ 2023 Q1 North America Market Report. Meanwhile office continues to struggle. The sector experienced its third-largest quarterly contraction since the beginning of the pandemic, as work-from-home preferences decoupled office occupancy from job growth numbers. The full Lee & Associates report is available (with further breakdowns of factors like vacancy rates, market rents, inventory square footage and cap rates by city) here. The analysis below provides an overview of four major commercial real estate sectors alongside trends, economic background and exceptions within each sector. Industrial Overview: Sharp Decline Hits First-Quarter U.S. Demand There was a sharp first-quarter decline in U.S. tenant demand for industrial space as wholesalers and retailers reconsider their inventory levels out of caution over the economic outlook. Net absorption in the first quarter totaled 39.4 million square feet, a 57 percent drop from the record set a year ago. The overall U.S. vacancy rate settled at 4.4 percent, an increase of 40 basis points from the close of 2022, comfortably …
FORT WORTH, TEXAS — San Diego-based investment firm Westcore has acquired three industrial buildings totaling 485,330 square feet in Fort Worth. Buildings 1, 2 and 4 within North Quarter 35, a development by M2G Ventures, were all fully leased at the time of sale. Seth Koschak and Matteson Hamilton represented the seller in the transaction. Westcore was self-represented. North Quarter 35 features a mix of shallow-bay, read-load and cross-dock buildings totaling 645,000 square feet.
PRINCETON, TEXAS — Core Spaces, a developer with offices in Chicago and Austin, is underway on construction of Oxenfree at Princeton, a 408-unit build-to-rent residential community located on the northeastern outskirts of Dallas. The site spans 50 acres, and the development will feature a mix of single-family and townhome-style residences with three distinct architectural styles. Oxenfree at Princeton will also offer a central amenity center with a coworking space, health club, market, lounge, pool and a children’s play area. Completion is scheduled for April 2024.
DALLAS — A partnership between Orlando-based developer ZOM Living and Dallas-based investment firm Civitas Capital Group has sold Mezzo, a 378-unit apartment community in North Dallas. Completed last summer, the garden-style property consists of 13 buildings on a 15-acre site. Units come in one-, two- and three-bedroom formats and range in size from 700 to 1,560 square feet. Amenities include a pool, fitness center, lounge, coworking spaces, game room and a dog park. Harbor Group International purchased Mezzo, which was 85 percent occupied at the time of sale, for an undisclosed price.
AUSTIN, TEXAS — Dallas-based law firm Locke Lord has signed a 27,826-square-foot office lease at 300 Colorado St. in downtown Austin. The firm is relocating from 600 Congress Ave. to the 32-story building, which houses a 13-story parking deck, onsite restaurant, conference center, catering kitchen and a fitness center. Atlanta-based Cousins Properties owns the property in a joint venture with Riverside Resources and Ironwood Real Estate.
IRVING, TEXAS — Cushman & Wakefield has negotiated a 12,647-square-foot office lease at Riverside Commons in Irving. The six-building, 467,285-square-foot office campus offers a café, fitness center and two conference facilities. Johnny Johnson and Rodney Helm of Cushman & Wakefield represented the undisclosed landlord in the lease negotiations. Ryan Buchanan and Josh White of CBRE represented the tenant, design and engineering firm KAI Enterprises.
MESQUITE, TEXAS — CBRE has brokered the sale of two industrial buildings totaling 918,213 square feet in the eastern Dallas suburb of Mesquite. Buildings B and D at Alcott Station, a 160-acre development by Urban Logistics Realty, total 325,218 and 592,995 square feet, respectively. At the time of sale, Building B was vacant, and Building D was fully leased to third-party provider RJW Logistics Group. Randy Baird, Jonathan Bryan, Ryan Thornton, Nathan Wynne and Eliza Bachhuber of CBRE represented Urban Logistics Realty in the transaction. Institutional investment firm BentallGreenOak purchased the buildings for an undisclosed price.
DALLAS — Two Arizona-based firms, developer Creation and LGE Design Build, have opened a $17 million joint headquarters office in Dallas. The companies collaborated on the acquisition, design and build-out of the 32,000-square-foot space, which is located at 1280 E. Levee St. in the Dallas Design District and will house about 40 employees. Amenities include a fully stocked breakroom, speakeasy, fitness center, interior library and multiple conference rooms. Creation and LGE, which plan to occupy about 20,000 square feet and lease the remaining 12,000 square feet, will retain their current spaces and operations in Arizona.
CORPUS CHRISTI, TEXAS — Northmarq has arranged the sale of Indigo Apartments, a 220-unit multifamily property in Corpus Christi. According to Apartments.com, the property was built in 1969 and offers studio, one-, two-, three- and four-bedroom floor plans. Amenities include a pool, fitness center, business center, playground and a dog park. Moses Siller of Northmarq represented the seller, 3CM Multifamily, in the transaction. The buyer and sales price were not disclosed.