DALLAS—It is no secret that the Dallas office market and the North Central Expressway Submarket is on a considerable upswing, says Jimmy Grisham, managing director and principal of development and investment at Foundry Commercial. He has first-hand knowledge of that, with Foundry Commercial having just purchased its third office building this year.

The firm purchased 8080 North Central Tower, a class-A office building spanning 289,000 square feet with 96% occupancy, in a joint venture partnership with Intercontinental Real Estate Corporation of Boston. Amenities include a 12-level parking garage, access to the Preston Hollow and Park Cities neighborhoods, retail and restaurants on Greenville Avenue, and on-site retail options.

Grisham recently discussed some insights into the current activity and projected growth in the region in the new year with GlobeSt.com.

GlobeSt.com: As you mentioned, the Dallas office market and the North Central Expressway Submarket are on a considerable upswing. What factors are playing into this appeal?

Jimmy Grisham: There continues to be a high demand for office space in the Dallas market as a result of accelerating job growth and space consolidation or expansion of existing tenants. Specifically, the North Central Expressway submarket has benefited from rising rents and lack of available office space in the two close submarkets of Uptown and Preston Center. Those dynamics and the close proximity to some of the higher demographic neighborhoods in Dallas have attracted many office tenants to this submarket.

For example, our most recent acquisition, 8080, is located in a strategic location at Caruth Haven and North Central Expressway in the North Central Expressway submarket. What many office tenants are finding with assets like 8080 is that you can enjoy the same high-quality level of amenities as you could experience in Uptown or Preston Center, with virtually the same commute time at a materially less rental rate. With this location, you also enjoy greater access via Central Expressway for North/South traffic, easy access to the Park Cities neighborhood and Preston Hollow area to the west, and North Park Mall and a variety of restaurants, health clubs, and grocery stores up and down Greenville Avenue to the east.

GlobeSt.com: Can you give us your assessment of the current market situation?

Grisham: The North Central Expressway is healthy and steady, but it is also growing. Based on what we've seen with Uptown and Preston Center, we can anticipate that this submarket will attract more and more tenants and over time, who will be searching for quality and location.

GlobeSt.com: How will that activity impact the region as we head into 2017?

Grisham: In the new year, we are likely to see more continued absorption, higher rents and less vacancies, but that could lead to more development. Generally, we are at a good balance now. The amount of rent growth in some of these submarkets will create demand for new office construction, if there is available land. Since most of the land in the North Central Expressway is absorbed, we will likely see a push in construction north to Plano, Richardson and recently announced office buildings in Allen.

Foundry Commercial's previous acquisitions including Walnut Glen Tower in September and Campbell Creek Office Park in June. Its traction in the Dallas office market began in 2015, when the company purchased the 232,000-square-foot building that would become GEICO's corporate headquarters.

DALLAS—It is no secret that the Dallas office market and the North Central Expressway Submarket is on a considerable upswing, says Jimmy Grisham, managing director and principal of development and investment at Foundry Commercial. He has first-hand knowledge of that, with Foundry Commercial having just purchased its third office building this year.

The firm purchased 8080 North Central Tower, a class-A office building spanning 289,000 square feet with 96% occupancy, in a joint venture partnership with Intercontinental Real Estate Corporation of Boston. Amenities include a 12-level parking garage, access to the Preston Hollow and Park Cities neighborhoods, retail and restaurants on Greenville Avenue, and on-site retail options.

Grisham recently discussed some insights into the current activity and projected growth in the region in the new year with GlobeSt.com.

GlobeSt.com: As you mentioned, the Dallas office market and the North Central Expressway Submarket are on a considerable upswing. What factors are playing into this appeal?

Jimmy Grisham: There continues to be a high demand for office space in the Dallas market as a result of accelerating job growth and space consolidation or expansion of existing tenants. Specifically, the North Central Expressway submarket has benefited from rising rents and lack of available office space in the two close submarkets of Uptown and Preston Center. Those dynamics and the close proximity to some of the higher demographic neighborhoods in Dallas have attracted many office tenants to this submarket.

For example, our most recent acquisition, 8080, is located in a strategic location at Caruth Haven and North Central Expressway in the North Central Expressway submarket. What many office tenants are finding with assets like 8080 is that you can enjoy the same high-quality level of amenities as you could experience in Uptown or Preston Center, with virtually the same commute time at a materially less rental rate. With this location, you also enjoy greater access via Central Expressway for North/South traffic, easy access to the Park Cities neighborhood and Preston Hollow area to the west, and North Park Mall and a variety of restaurants, health clubs, and grocery stores up and down Greenville Avenue to the east.

GlobeSt.com: Can you give us your assessment of the current market situation?

Grisham: The North Central Expressway is healthy and steady, but it is also growing. Based on what we've seen with Uptown and Preston Center, we can anticipate that this submarket will attract more and more tenants and over time, who will be searching for quality and location.

GlobeSt.com: How will that activity impact the region as we head into 2017?

Grisham: In the new year, we are likely to see more continued absorption, higher rents and less vacancies, but that could lead to more development. Generally, we are at a good balance now. The amount of rent growth in some of these submarkets will create demand for new office construction, if there is available land. Since most of the land in the North Central Expressway is absorbed, we will likely see a push in construction north to Plano, Richardson and recently announced office buildings in Allen.

Foundry Commercial's previous acquisitions including Walnut Glen Tower in September and Campbell Creek Office Park in June. Its traction in the Dallas office market began in 2015, when the company purchased the 232,000-square-foot building that would become GEICO's corporate headquarters.