Cushman & Wakefield Closes Disposition of More Than 2-Million-Square-Foot Office Portfolio in Dallas Market

Cushman & Wakefield represented Momentum Commercial Realty in the disposition of an 80-building office portfolio totaling more than 2.26 million square feet. The buildings are located across the Dallas-Fort Worth metropolitan area but are primarily concentrated in the Richardson, Plano, Addison, Garland, Quorum/Bent Tree and Allen, Texas, real estate submarkets.

Jud Clements, Robby Rieke, Taylor Starnes and Macki McKim of Cushman & Wakefield’s Industrial and Office Capital Markets Team represented the seller. The portfolio was sold to CIP Real Estate, a real estate investment and management company.

The portfolio buildings are located in some of the most centrally located infill submarkets in D-FW. The portfolio features 1.76 million square feet of light industrial across 61 buildings. The portfolio offered an opportunity to gain immediate scale in Dallas-Fort Worth, with the largest concentrations located in the Richardson, Plano and Metro Addison submarkets. The remainder of the portfolio consisted of office properties primarily located along the North Central Expressway and Dallas North Tollway corridors.

The portfolio was amassed by Momentum Commercial Realty’s Roy Greenberg and Bryan Lurie over a 25-year period. The portfolio was the totality of Momentum’s real estate holdings in the Dallas-Fort Worth metroplex.

The offering represented an opportunity to acquire a portfolio with near-total barriers to new competition, outstanding tenant retention, broad multi-tenant diversity and a strong current cash flow. Additionally, the portfolio offered incredible upside potential through below-market in-place rents, the lease-up of the existing vacancy and potential user sales over the hold period.

JLL Report: Uncertainty Still the Norm in Dallas Office Market

No one would argue that 2021 was a year of uncertainty for the Dallas office market. But that hardly makes this market unique: The office sector has faced uncertainty across the country since the COVID-19 pandemic first began making headlines in March of 2020.

The fourth quarter Dallas office report released earlier this week by JLL highlights this uncertainty.

According to JLL, Dallas’ 2021 office market vacancy rate remains higher than usual both because of new speculative deliveries and companies adjusting their real estate footprint as they adjust to work-from-home and hybrid work models. The Dallas office market ended 2021 with a vacancy rate of 25.5 percent.

As JLL says, 2021 started off promisingly for the Dallas office market as many companies planned to bring their employees back to the office. Both the Delta and Omicron variants scuttled these plans. Now, many companies are pushing their back-to-the-office plans even further into the future.

In a bit of good news, JLL reported that quarterly net absorption in the Dallas office market was positive in the fourth quarter of 2021, hitting 312,227 square feet in both Class-A and Class-B products. This marked the first time since the first quarter of 2021 that Class-B product here has contributed to positive net absorption.

Much of this absorption can be credited to Keurig Dr. Pepper’s 350,000-square-foot move-in at The Star in Frisco, Texas. JP Morgan Chase accounted for the greatest negative absorption this quarter with a 240,000-square-foot move-out from its Lewisville, Texas, location. This was the result of the company’s long-planned consolidation into its Legacy West campus in Plano, Texas.

For the year, though, the Dallas office market saw negative net absorption of more than 1.9 million square feet. Again, blame the COVID-19 pandemic for this.

What does the future hold for the Dallas office market? That’s tough to know. But JLL in its report said there are some good signs as 2022 begins. Office leasing activity has picked up and stood at 74 percent of 2019 pre-pandemic levels by year-end. Last year also produced more than 30 leases larger than 50,000 square feet, with Class-A buildings accounting for nearly 76 percent of these leases.

Several new office projects are set to deliver in early 2022. The hope is that while these projects might immediately cause office vacancy rates to rise in the Dallas market, they’ll cause the reverse in the long-term as they fill. One such property is Weir’s Plaza, a 12-story office building in the Knox/Henderson micro-market of Uptown. That building delivered in the fourth quarter of last year and is already 100 percent occupied.

National Retailor Boot Barn Leased 12,407 SF in Mansfield Towne Crossing

DALLAS, TX (January 13, 2022) National retailor Boot Barn has leased 12,407 SF in Mansfield Towne Crossing. Edge Realty Partner’s Andrew Shaw, Steve Ewing, and Connor Cox represented the landlord, and CBRE represented the tenant.

Contact Andrew Shaw at 214-545-6955 or ashaw@edge-re.com for more info.

Newmark Represents 126,596-Square-Foot New Office/Lab Lease in Texas’ Las Colinas Submarket

Dallas, TX (Jan. 11, 2021) — Newmark announces a new, 126,596-square-foot office/lab lease at 121 Corporate Center in Coppell, Texas. The full-building lease was signed to Nashvillebased PathGroup—one of the largest providers of anatomic pathology, digital pathology, clinical and molecular laboratory services in the United States—and represents the company’s first location in the Dallas-Fort Worth area and its third in Texas.

Newmark Executive Managing Directors Nathan Durham and Duane Henley represented the landlord, Cabot and Link Logistics Real Estate (Link) on behalf of Blackstone. Cushman & Wakefield’s Dean Collins, Mark Collins, Jason Dodson, Michael Sessa and Jack Keenan represented PathGroup.

According to Newmark Research, the transaction is one of the largest office leases in the Las Colinas submarket in 2021, in terms of square footage.

“Office product that can accommodate hybrid office/medical/life science users continues to be in demand in DFW,” said Durham. “PathGroup’s growth and their establishment of a DFW location further demonstrates the momentum of the office market in Las Colinas.”

Located at 1111 Northpoint Drive, the office property is near ample restaurants, entertainment, retail and hotel amenities as well as outdoor recreation. 121 Corporate Center is walkable to nearby Coppell Nature Park, which features 66 acres of natural space with jogging/nature trails.

About Newmark Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues in excess of $2.5 billion for the trailing twelve months ending September 30, 2021. Newmark’s company-owned offices, together with its business partners, operate from over 160 offices with approximately 6,200 professionals around the world.

To learn more, visit nmrk.com or follow @newmark.

Discussion of Forward-Looking Statements about Newmark Statements in this document regarding Newmark that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the effects of the COVID-19 pandemic on the Company’s business, results, financial position, liquidity and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark’s Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on ForwardLooking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.