Why not Downtown Dallas?

jaysonmontoyaUncategorized29 Comments

Photo courtesy of: iliveindallas.com

There was a fantastic article in today’s Dallas Morning News titled Dallas office rents reach all-time high as companies head Uptown about (you guessed it) rents being the highest we’ve ever seen in Dallas. The article states that the newest trophy buildings in the area are renting for an average of $52 per square foot which is more than $20/SF higher than its counterpart, Downtown. However, it is important to remember that the Arts District is just a couple of blocks away with plenty to offer the office tenant evaluating their space options in the market.

While the buildings, in general, are not as new, the amenity base is often equal or greater than some of the newest options. Chase Tower, for example, has a brand new fitness center, gorgeous shared conference facility in their sky lobby, not to mention, the Petroleum Club. All of these items are impressive for employees and guests alike. Additionally, one can argue that the building is just as well-known and prestigious as many new Uptown options. The building is currently quoting $33-$36/SF +Electricity; that ~$20/SF savings will go a long way over a 5-10 year lease term.

It is understandable that certain companies will highly benefit in areas of recruiting, employee retention, prestige, etc from leasing space in the newest, nicest buildings. However, most tenants looking for space in Uptown need to make sure they do not discount Downtown Dallas, namely, the Arts District as a very viable option for their business. The gap between Uptown and Downtown is shrinking daily and people who have not considered Downtown in the past need to understand that the entire area is changing. As occupancy continues to increase in the Uptown submarket, Downtown will continue to be a solid alternative for companies looking for a live, work, play environment or those seeking rental rates that are not the highest in Dallas.

29 Comments on “Why not Downtown Dallas?”

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