Office Repositioning Becomes Competitive Carrot

4100 International Parkway is located within the International Business Park.

PLANO, TX—As Dallas continues to gain more jobs at higher wages relative to its cost of living than most other metros in the country, employers across all industries are reshaping the office market to accompany the growth. And, the appetite for shiny new office product among the influx of new talent is resulting in major renovations or large concessions in older buildings to remain attractive to tenants coming up on the end of their leases, according to JLL’s second quarter office report.

One example of using the proceeds of a loan to refinance existing debt and fully stabilize properties to compete is evident in a recent portfolio loan. A $110 million refinancing was obtained for a seven-building office portfolio totaling 801,153 square feet in Plano and Carrollton, TX.