Tuesday, March 07, 2017

Goldman Sachs inks big deal in one of downtown Dallas' tallest towers

Financial giant Goldman Sachs has finalized a lease deal to take seven floors within one of downtown Dallas' tallest skyscrapers, which will lead to a major regional consolidation, sources say.

The New York-based firm is expected to move most of its North Texas back-office operations and more than 1,000 employees from its longtime Irving office, as well as its wealth management executives from The Crescent, into Trammell Crow Center, a 50-story tower at 2001 Ross Ave. in the Dallas Arts District.
Multiple real estate sources say Goldman Sachs has signed a lease for about 175,000 square feet of office space, with plans to move most of its Irving office into the downtown Dallas skyscraper by early 2018.

Some of the firm's wealth management executives at The Crescent are expected to also make the move downtown when Goldman Sachs' current lease for about 21,000 square feet expires in August 2021, real estate sources say.

Goldman Sachs did not immediately respond to interview requests. Sources say the financial firm has begun working on plans to build out its space within the tower.

Sources say, the financial firm is also shopping for 60,000 square feet of back office in Irving with a heavy parking ratio to accommodate a small percentage of its employees.

With Trammell Crow Center facing a 39 percent vacancy rate upon future Pricewaterhouse Coopers and Vinson & Elkins' departure from the building, they needed a big tenant and offered Goldman Sachs an aggressive lease.

The firm was offered a parking ratio of six parking spaces per 1,000 square feet and a lease rate of about $20 per square foot, triple net, sources say.

In a way, Trammell Crow Center was able to offer a high-parking ratio — an unheard of amount in downtown Dallas — because of JP Morgan Chase's plans to develop an adjacent mixed-use development next to Trammell Crow Center that includes plenty of parking.

The project is being dual-tracked with renovations and updates to Trammell Crow Center, which are slated to be unveiled next week.

Goldman Sachs has operated its back-office operations in North Texas from a single-tenant, six-story office building at 6011 Connection Drive in Irving for years since acquiring Archon Group.

Candace Carlisle/Dallas Business Journal.