TXU Pushes 130,838 SF of Class A Space to Sublease Market

"There are a couple of groups we've talked to about it for a major piece of the sublease space," says Greg Biggs, senior vice president in Dallas for the New York City-headquartered Studley. The five floors, including a trading area, are "aggressively priced" in a plug 'n play scenario, he says. He won't say when TXU is vacating, but did say it will be available for move-in this year--a key detail since the 1717 Main St. high rise is bracing for a 350,000-sf office exit by its long-time namesake tenant as a result of the Chase Bank merger. The 1.53-million-sf Bank One Center, which is keeping the bank's retail flag, is now 89% leased.

Industry sources tell GlobeSt.com that the TXU space could go for $15 per sf. Bank One Center's quoted direct rate is $20 per sf to $23 per sf plus electric. The sublease rate and the term, which expires Sept. 14, 2011, will be sure to lure prospects to the door, sources say.

If word on the street is correct, TXU is consolidating offices into Energy Plaza at 1601 Bryan St., just a two-block walk from Bank One Center. TXU moved into the 60-story Bank One Center in 2000, taking 110,000 sf for a business services' unit and 50,000 sf for a trading group. TXU already shaved 50,000 sf from its original lease, half of which has been filled by a law firm for the joint venture owners, Chicago-based Trizec Properties Inc. and Crescent Real Estate Equities Co. of Fort Worth.

Biggs says it's too early to predict when TXU's space will get a signed deal. "It's a terrific opportunity. My hope is now that we've begun the formal marketing process," he says, "we will have significantly more interest."

The TXU offices take up floors 16 through 20, with an internal connecting stairwell to 17 through 20. The 20th floor has an observation area overlooking the trading floor. The plug 'n play component contains 144 trade desks and 469 chairs, all Herman Miller furniture.

Insiders say Bank One Corp.'s eight-floor exit isn't a done deal although it was reported as such. According to published accounts, JPMorgan Chase & Co. plans to lease 250,000 sf in the 55-story Chase Tower at 2200 Ross St. for its main office in the region, vacating top-tier space at the Crescent at 300 Crescent Court, Plaza of the Americas at 700 Pearl St., 1700 Pacific Ave. and Thanksgiving Tower at 1601 Elm St.