Neiman Marcus Search Ends With Renewal, Expansion

The new deal kicks in Jan. 1 for 33,323 sf, representing a 15,000-sf expansion in building 3 at 400 E. Royal Lane in the Dallas Communications Complex, Steve Zimmerman, principal for Dallas-based Trammell Crow Co., tells GlobeSt.com. Neiman Marcus' online group, occupying the class B office space for five years, re-upped for another five, he says.

The original search began with a 50,000-sf to 60,000-sf requirement, with practically every building owner in Las Colinas and nearby neighbors making a pitch for their space during the yearlong chase. "Due to the announcement of the sale, things took a different course," Zimmerman says. "This relieved the immediate pressure." He says the space needs will be decided later for the IT group, now housed at Neiman Marcus' nearby distribution center at 111 Customer Way.

Zimmerman says the deal calls for the existing space to be remodeled as the expansion area is finished out in the 115,238-sf office building, owned by Charter DCC Partners LP of Dallas. He co-brokered the renewal and expansion with Wyatt Russo of the Retail Connection in Dallas. Rick Curry with Fobare Commercial Inc., also a local firm, represented the building owner, which is marketing the space at $4 per sf net.

In early October, Neiman Marcus was sold for $5.1 billion in cash to an investment group led by Texas Pacific Group of Fort Worth and Warburg Pincus LLC of New York City. When the deal closed, the 100-year-old retailer stopped trading on the New York Stock Exchange amid plans for a delisting.