Closure leads to bigger inventory in Texas

The Dallas market is booming.

A 12-story, 318,000-square-foot office tower in Plano, Texas, is set to be shut down soon, its occupant, Encana Oil & Gas, announced recently. The tower, which cost $120 million, has been open just more than a year, so the news took the Plano commercial real estate market by surprise.

Since the building is so new, any companies looking for a home base would be smart to look at the soon-to-be-vacant space, local real estate agent Randy Cooper said to the Dallas Morning News.

"You talk about hot news – this is incredible," Cooper said. "Anybody that is out in the market right now looking to do a build-to-suit would absolutely have to take a look at this. It's a great building and efficient as can be. It has great amenities." 

Encana still has 14 years left on the lease for the building, so anyone it subleases to will likely get a bargain for the new space. The building is designed for a single tenant, but some buildouts and retrofits could make it accommodating to numerous occupiers, according to the Morning News.

The tower is located on the Dallas News Tollway in the Legacy business park, which is a hotbed for corporations. Mike Wyatt, of Cushman & Wakefield, said the area is "the premier corporate address in Dallas-Fort Worth today."

So while it is yet to be determined what will happen to the business tower, the news could bring a shakeup to the local market. Brokers and developers alike are looking at the space with fresh eyes to market it to customers.

"My experience in filling that kind of space is it can be a rather arduous process," said Art Green, of real estate company Avison Young, to the Morning News. "The landlord tenants to wait a while to see if they can do a one-shot sublease deal before they go to multiple tenants."

Big gains
Experts have said that the employment growth experienced in the third quarter of 2013 in Dallas was attributed to the strongest quarterly office demand in more than four years, according to a recent CBRE report.

The city's preliminary vacancy rate for the third quarter of 2013 was 18.1 percent, but it ended up being 19.1 percent, according to the report. Those numbers made it the fourth-busiest market in the country.

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