Plan Clears for 880,000-SF Repositioning

GVA Cawley's John Conger and Buddy Tompkins will set up the marketing shop in the Centre's 4100 Alpha, a 227,096-sf, 11-story office building and the largest in the 46-acre block off Interstate 635 and Midway Road. "What we feel is going to happen in the couple years is those B's who fled to A's will be facing $24 per sf rents," Tompkins tells GlobeSt.com. "We want to be sure we're positioned so we're an excellent alternative."

Tompkins says Dallas-based Dalcan leased and managed the 11-building Centre in house until a few months ago, then turned over the reins to a local firm that held sales listings for a couple structures until the owner could reach a decision on a more permanent leasing arrangement. Dalcan, which is continuing to manage the Centre, owns it with SITQ, a Canadian pension fund. GVA Cawley takes over June 1.

Tompkins says brokers' specials will be part of the marketing ploy, adding the only incentive decided to date is brokers' checks will be handed out as soon as signed leases are in his hands. "The owners have agreed to that already," he says.

The first work will be to shift the primary entrance from Midway and McEwen roads to the property's northeastern intersection of Midway and Alpha roads, setting a charge to market the 440,000 sf of empty space as North Dallas instead of the LBJ Freeway submarket. "We're building the story already," Tompkins says, adding the existing rate of $14.50 per sf to $15.50 per sf will hold for a few months and then ratchet up over the next year or two. "With the repositioning, we expect to really start getting into the middle of the market to the top of the market," he says.

Most lease rolls for this year in the 100-tenant roster have been put to bed, according to Tompkins. But, it's his plan to work renewals as well as chase new deals. "I will personally be on that project," he stresses. "It's my baby." His goal is to fill 150,000 sf per year.

Conger says the lease-up strategy will include at least one floor of spec suites ranging from 1,500 sf to 2,300 sf. "That seems to be a popular size right now," he says. Which of the 11 buildings will get the first spec offices has yet to be decided. Given the vacancy, the team will target all sizes of tenants.

The 1980s-era Centre once was considered one of, if not the, premier office park in the submarket, but new construction changed the ranking as it always does. Conger and Tompkins plan to play off the campus environment to leverage the lease-up. "We can talk about rate, but what's really important is the value," Conger says. "I think we're going to be in the very competitive class B rates. I think the office park environment is going to add value to the tenants who office there."