Horizon Lines Inc. will become the second-largest tenant in 600 E. Las Colinas, a 509,707-sf high rise with a front-row seat to the upcoming mixed-use development at the epicenter of the corporate office submarket. Horizon's move-in will be timed to coincide with its lease expiration in the Centre at 4100 Alpha Rd. in Dallas, Joel Pustmueller, co-founder of Dallas-based Peloton Real Estate Partners, tells GlobeSt.com.
Horizon, a logistics firm based in Charlotte, NC, will move its regional office to floors five, six and seven of the 22-story high rise, which has had its occupancy bumped to 96% and rate to $22 per sf plus electric due to this year's leasing uptick. The tenant reps--Bob Edge and Matt Heidelbaugh with Cushman & Wakefield of Texas Inc.--did negotiate some free rent and a better-than-average tenant-improvement package as part of the outcome of the talks.
"It's an 11-year lease so it's a long-term commitment," Pustmueller says. "I think it's a fair market deal. I feel like it's a good deal for both parties given where rental rates are and where they're going."
Pustmueller and Peloton's Grant Sumner spent six months in the chase for the Horizon lease. The company will fall right behind JPI's headquarters office in size once the Archon shift takes place in the spring, opening the door for Horizon's upgrades and Sept. 1 occupancy, according to Pustmueller. And the sweet spot of the dealmaking is "there's no down time," he quickly points out.
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