Wednesday, July 06, 2005

Downtown Dallas & Uptown Real Estate News

Downtown Dallas & Uptown Real Estate News

Dallas Observer Pens 10-Year Relocation Lease

DALLAS (GlobeSt.com) -The Dallas Observer will exit a longtime downtown address for a full floor in Oak Lawn, signing a 10-year lease with an Aug. 1 kick-off. The weekly newspaper, changing neighborhoods about five months before its existing pact expires, becomes the lead tenant in Oak Lawn Plaza.
The Dallas Observer's executive team will take over the 16,940-sf seventh floor of the 128,725-sf, class B-plus office building at 2510 Oak Lawn after a 25-year run in the downtown. The lease, which has been under negotiation nearly nine months, fills space emptied more than a year ago and sets up a full-floor overhaul for a now 93%-occuppied building, Lowrey Burnett with the Gaedeke Group tells GlobeSt.com.

The Observer staff will go from a historic structure at 2310 Commerce St., which underwent an adaptive reuse, to a newer, eight-story building owned by Gaedeke Holdings II Ltd. "It's dramatically different space," Burnett says. "This is a much more streamlined, efficient layout for them." Talks open at the going rate of $17.50 per sf full service.

As for the local owner, Burnett says "this is the first face that we've had in the building that's this large." The deal includes a top of the building sign. Burnett teamed with David Hughes, also with the Gaedeke Group, to negotiate the lease with tenant rep, Mary Bentley of Dallas-based Fischer & Co. The Observer, owned by Phoenix-based New Times Media LLC, has distributes 110,000 copies weekly.