Can Dallas Keep Up With Office Space Demands?
Most office projects are delivered preleased as occupiers pursued a flight to quality, such as Fox’s recent Harwood lease, as space is offset by move-outs of third-generation space in first and second quarters.
DALLAS—Of the projects completed in first quarter, most were delivered preleased as occupiers pursued a flight to quality, which was and will be offset in the form of move-outs of third-generation spaces in first and second quarters. That type of space demand is in full force at the Harwood District.
Harwood International recently announced a lease there with Fox Rothschild LLP. The AM Law 100 law firm is relocating its Dallas office from Lincoln Center to 19,025 square feet on level 18 at Saint Ann Court–Harwood Number 6.
“Due to the high demand to be in our developments, we are actively pursuing new tenants for our next office tower that will be named Harwood Number 12,” Jessica Young Reid, director of marketing at Harwood International, tells GlobeSt.com.
During the past 100 years, Fox Rothschild has grown to 950 lawyers in 27 US offices. The new office in Harwood District is Fox’s signature and only Texas office.
“I started my law firm as a sole practitioner in 1984 and over 30 years, my partner Mark Goodman and I grew our firm to 18 attorneys,” said Clint David, Fox’s Dallas office managing partner. “On October 1, 2014, we merged our firm, David & Goodman, with Fox Rothschild. It is an honor to help create, build and grow the Fox Rothschild brand, culture and footprint in Dallas, not just for now but for generations to come. Our move to Saint Ann Court, one of the hottest buildings in the hottest area of Dallas, is a huge step toward that goal.”
Fox Rothschild is on the list of AM Law 200 law firms in the Harwood District which includes Jones Day, McDermott Will & Emery, Polsinelli and Winstead.
“Clients come to Fox for our superior attorneys, middle market rates and structure, and our national footprint,” said David. “This business model and Fox’s great culture are a huge part of our success.”
Designed by Los Angeles-based Shimoda Design Group, Saint Ann Court opened in 2009 and is the sixth out of 18 phases planned by Harwood International. The first level of the two-story red brick building next to Saint Ann Court is Saint Ann Restaurant and Bar, and the second level houses the Ann and Gabriel Barbier-Mueller Museum: The Samurai Collection. Other tenant and visitor features include the Rockefeller Sky Gardens over the 11-story parking garage, Mercat Bistro, valet parking and a private fitness center overlooking the Saint Ann Court garden.
The latest addition to the District is Harwood Number 10, the class-A office tower featuring 220,548 square feet of office and La Rue Perdue, a European-style alleyway with more than 14,000 square feet of retail and restaurant space.
Harwood District has a Walk Score of 92 within its 18 city blocks. Tenants are in walking distance to the American Airlines Center, Dallas Arts District, Dolce Riviera, The Grove at Harwood, Happiest Hour, Katy Trail, Magnolias: Sous Le Pont, Marie Gabrielle Restaurant and Gardens, Mercat Bistro and the Ritz-Carlton Hotel.
Hannah Waidmann and Kelly Whaley of Harwood International negotiated the lease with Robert Blount of Jones Lang LaSalle and Phil Puckett of CBRE.
The Dallas-Fort Worth office market kicked off 2019 with continued momentum, now spanning more than half a decade, according to a first quarter report by Cushman & Wakefield. This was led by strong absorption, declining vacancy and steadily increasing rental rates. The market also delivered 626,000 square feet of new product during the quarter, with another 2.1 million square feet currently in the pipeline to be completed at various stages in the next 12 to 24 months.