West Plano’s Legacy business park and Frisco’s $5 billion mile are making a lot of headlines.
But not everyone can pay to play in those hot real estate markets.
Maybe that’s why more companies shopping for office space in North Texas are looking at the Las Colinas area for new digs.
That’s what commercial property firm JLL found in a survey of pending office lease deals.
JLL’s researchers looked at almost 17 million square feet of potential office lease transactions to analyze where companies are looking and what kinds of firms are in the market.
About 20 percent of the office tenants are looking at the Las Colinas area — the largest share of companies focused on specific markets.
The Far North Dallas, Legacy and Frisco markets are getting about a 17 percent share of office space shoppers.
More businesses are looking at Las Colinas, Lewisville, Richardson and Plano’s east side because they don’t want to pay high rents in Legacy and Frisco, said JLL managing director Steve Thelen.
“There is a 30 percent premium for Legacy rents over the surrounding markets,” Thelen said. “The markets that are surrounding Legacy are attracting attention because those rents are at a premium.”
Average office rents are about $3 per square foot lower in Las Colinas than the Legacy/Frisco market, according to JLL.
While office rents are often cheaper in Irving, Richardson, Lewisville and other northern ‘burbs, Thelen said some businesses are willing to pay to be in the hot West Plano and Frisco district.
“They want to be right there at ground zero,” he said. “They are willing to pay a premium for the rents.”
A broad variety of office tenants are in the market this year for D-FW space, JLL says.
Tech firms make up the biggest share of office lease prospects (24 percent), followed by transportation and manufacturing firms, energy, business services and financial companies.
Presented by the Dallas Morning News – February 20, 2017