Friday, September 02, 2016

Frisco’s office market heats up, thanks to the Dallas Cowboys and growth along the tollway

The Dallas Cowboys headquarters building, The Star in Frisco, is just opening and is mostly leased.

Sure, Plano gets the headlines, with big office deals by Toyota, JPMorgan Chase and Liberty Mutual Insurance.
But just across the highway in Frisco, office builders are courting companies that want to be close to the action.
"That whole corridor of Frisco has an appeal," said Kevin Bradshaw, division manager of insurer FM Global, which just became the largest office tenant in The Star in Frisco, the Dallas Cowboys' complex on the Dallas North Tollway at Warren Parkway. 
The company is also the largest firm to announce a move to Frisco this year. FM Global has had its operations in nearby Plano for 17 years.
Bradshaw said the company looked at two other Frisco projects in the works — Wade Park and Frisco Station — before deciding where to move its more than 160 workers.
"We pretty much knew where we wanted to go," he said.
With demand for office space so strong, developers are scrambling to get more projects out of the ground in Frisco.
"Frisco is close to what's happening at the epicenter of the tollway and S.H. 121," said Greg Biggs of commercial real estate firm JLL.
Only about 15 percent of Frisco's office space is empty, according to commercial real estate firm JLL. And the newest buildings are quoting rents of between $30 and $40 per square foot.
"Based on current demand, we need more office space in Frisco," said Jim Gandy, who heads the Frisco Economic Development Corp. He said most of what's available is small spaces.
"We will soon have three speculative office buildings under construction for the first time," he said.

New buildings ahead

Hall Group just disclosed plans for a 12-story office tower in its Hall Park development on the tollway at Gaylord Parkway.
The 162-acre office campus, which has more than 2 million square feet of buildings that house about 180 companies, is more than 95 percent leased.
"The majority of tenants we see at Hall Park are an average of 5,000 square feet," said Kim Butler, director of leasing with Hall Group.
Those companies typically expand later, she said.
"That has been the success of Hall Park — the growth of the existing companies here," Butler said. "When they say small business is the backbone of the economy, that's where we are seeing growth."
The Dallas Cowboys and developer Lincoln Property have had so much success with their 400,000-square-foot Star office building that the partners are planning a second project.
"We are starting to look at another building — it will be on the tollway," said Stephen Jones, Cowboys executive vice president. "We are looking at another medical office building as well.
"You can't replicate this location," he said. "We are right in the middle of everything."
VanTrust Real Estate and Hillwood  Properties plan to break ground next month on a seven-story, 228,000-square-foot office building in Frisco Station on Warren Parkway.
"We are hoping to start construction in the next two to four weeks," said VanTrust executive vice presdient Geoff Meyer. "Once we start pushing dirt on the site it will make a big difference in inquiries we are getting."
And Goveia Commercial is building a three-story, 90,000-square-foot office in Stonebrook Business Park on the tollway.
Written by Steve Brown/Dallas Morning News