670 W Arapaho Rd - Building 1
PREPARED BY
Ed Parrish
Broker
Underwriting Report
16,577 SF Office Building
SUBJECT PROPERTY
Property Details 2
MARKET SUMMARY
Richardson Submarket Summary 5
Dallas-Fort Worth Market Summary 6
Dallas-Fort Worth Economic Summary 7
PEER PROPERTIES
Peer Properties Summary 11
Peer Property Photos 13
Peer Property Comparison 14
Peer Property Details 18
LEASING ANALYTICS
Vacancy Analytics 23
Rent Analytics 30
Absorption Analytics 32
Leasing Analytics 33
LEASE COMPS
Lease Comps Summary 36
Lease Comps Details 38
CONSTRUCTION
Overall Construction Summary 51
Dallas-Fort Worth Construction 52
Richardson Construction 53
Construction Activity 56
Under Construction Summary 61
Under Construction Details 63
Completed Construction Past 12 Months 64
Deliveries Past 12 Months Details 66
SALE COMPS
Investment Trends 68
Sale Comps Detail 72
Sales Volume 81
Sales Pricing 82
Cap Rates 84
Table Of Contents
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Top Buyers & Sellers 85
DEMOGRAPHICS
Overview 88
APPENDIX
Historical Leasing Data 90
Historical Construction Data 92
Table Of Contents
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Subject Property
670 W Arapaho Rd - Building 1Richardson, TX 75080 - Richardson Submarket
PROPERTY
Type: Class C Office
Yr Blt/Renov: 1977
Property Size: 16,577 SF
Stories: 1
Typical Floor: 16,577 SF
Parking Spaces: 112: 6.76/1,000 SF
LOCATION
Walk Score®: Car-Dependent (44)
Transit Score®: Some Transit (26)
EXPENSES PER SF
Taxes: $1.25/SF (2013-Est); $2…
Op. Exp: $4.25/SF (2013-Est)
Total: $5.50/SF (2013-Est)
OWNER
Richardson Prof. Prk Leasing Office
Purchased 8/17/1995
Portfolio Price $1,236,000; $39.11/SF
Cap Rate 11.6%
VACANCY
Current:
Last Quarter:
0.0%
0.0%
Year Ago: 0.0%
Peers: 15.9%
Submarket 2-4 Star: 16.0%
GROSS ASKING RENT PER SF
Current:
Last Quarter:
-
-
Year Ago: $13.50
Peers: $20.08
Submarket 2-4 Star: $23.55
12 MO. LEASING SF ACTIVITY
Subject Property:
Peers Total:
0
49,242
Peers Avg: 6,155
Submarket Total: 2,767,931
Submarket Avg: 6,834
AMENITIES
Air Conditioning, Property Manager on Site
AVAILABLE SPACES
Currently No Available Spaces
Tenant # Emps Move Date Exp DateFloor SFIndustry
KEY TENANTS
Argent Pharmacy - Feb 2019 -2,5181st-
Arapaho Natural Healing Inc - Sep 2013 -1,2681stPersonal Services
Heights Pharmacy - Mar 2018 Mar 20211,2681st-
Riggs ,Richard R Dds 3 Apr 2003 -1,2001stMedical
Community Pharmacy - Apr 2017 Apr 20201,1451stMedical
Plano Psychological Associates 3 Feb 2016 -6001stMedical
Splender Of Youth Medical 3 Jul 2012 -4001stMedical
CoStar Research Moving Out Moving In My Data Shared Data
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Subject Property
PRIMARY LEASING COMPANY
Dumbbell Properties
www.dumbbellproperties.com
Richardson, TX 75080
801-819 W Arapaho Rd, Suite 24-B #217
(972) 922-2213 (p)(972) 644-3105 (f)
Ed Parrish
Broker
(972) 895-3678 (p)(972) 922-2213 (m)
TRUE OWNER
Richardson Prof. Prk Leasing Office
Richardson, TX
1112 N Floyd St
(972) 231-4405
April Dolan
(972) 644-4404 (p)(972) 644-3105 (f)
RECORDED OWNER
Richardson Prof. Prk Leasing Office
Richardson, TX
1112 N Floyd St
(972) 231-4405
PROPERTY MANAGEMENT
Urban Real Estate Management, Inc.
Richardson, TX 75080
670 W Arapaho Rd, Suite 14
(972) 644-4404 (p)(972) 644-3105 (f)
April Dolan
(972) 644-4404 (p)(972) 644-3105 (f)
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670 W Arapaho Rd - Building 1
PREPARED BY
Ed Parrish
Broker
Market Summary
16,577 SF Office Building
Richardson Submarket SummaryRichardson Office
Richardson is the home of the Telecom Corridor, whichcontains a number of the world’s largesttelecommunications companies. Despite the moniker,Richardson has a diverse tenant base, with healthcareand insurance firms taking up a large portion of thesubmarket's office space. CityLine has garnered most ofthe headlines in recent years, with build-to-suits forState Farm (2 million SF) and Raytheon (500,000 SF)
opening a few years ago to go along with thousands ofnew apartments and retail. The first speculative buildingat CityLine, 3400 CityLine, delivered in July 2017, buthas only recently started to see an uptick in leasingactivity. The submarket also benefits from DART access:Four DART rail stations are located here, more than inany other suburban office submarket in the metroplex.
NET ABSORPTION, NET DELIVERIES & VACANCY
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Dallas-Fort Worth Market SummaryDallas-Fort Worth Office
Development in in Dallas-Fort Worth is inevitable; newresidents and employment growth fuel demand for newspace. Adding 131,800 residents from 2017 to 2018, theregion gained more residents than any other metropolitanarea in the country. Almost the same can be said foremployment growth: Over the past 12 months, the regionadded 102,500 new jobs, only second to the NYCmetropolitan area in terms of absolute growth. Theregion’s competitive cost of living, accessibility, andhighly educated workforce have made it a hotbed forcorporate relocations and expansions. Names likeToyota, Samsung, and Coremark Holdings have allrecently found a home in Dallas-Fort Worth, and manymore have announced plans or a looking to expand.Expect the Texas economy to outperform the UnitedStates in the near and long terms.
Strong economic underpinnings have fostered a healthyoffice market. During the past 12 months, the market hasabsorbed 3.7 million SF, the third most in the country.Construction activity remains robust, with about 5.2million SF delivered and around 8.3 million SF currentlyunder construction. Even with the construction, vacancies
should remain stable due to a significant portion of newspace being pre-leased, and the near term speculativepipeline is relatively muted. Rent growth is still above themetro’s historical average as tenants continue to clamorfor new space in their flight to quality.
Nationally, the U.S. economy is only a few months fromthe longest expansion on record. Mixed economic signalsand continued grumblings of a global economicslowdown are themes shaping 2019; economic growth isprojected to decelerate in the next few years. At thesame time, real estate fundamentals are increasinglydivergent, with uneven growth across sectors andregions as some investors are becoming increasinglyselective this far into the cycle. With pricing in core costalmarkets rising over the past few years, many institutionalinvestors have turned to less expensive secondarymarkets in search of better yields. As a result,investment has continued to flow to Dallas-Fort Worth:Come for the growth, stay for the yield. After a solid 2018with total sales of over $3 billion, the market is on paceto surpass last year, with total sales surpassing $500million as of mid-year.
NET ABSORPTION, NET DELIVERIES & VACANCY
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Dallas-Fort Worth Economic SummaryDallas-Fort Worth Office
Dallas-Fort Worth’s diversified economy should continueto hum right along. Abundant job opportunities havespurred significant population growth due to in-migration.Population growth in the metroplex is more than doublethe U.S. average and has topped the nation over thepast few years. Net migration continues to rank amongthe highest in the country, exceeding the highs from thepast cycle. This in-migration continues to help spurgrowth in office-using and industrial-based employmentgrowth alike. Employment growth should remain strongerthan the national benchmark over the next five years.
A number of high-profile companies across varioussectors have relocated or expanded operations in D-FW,which should keep employment growth in the metroplexrolling. State Farm finished its regional expansion in2016, and now occupies 2 million SF in the CityLinedevelopment in Richardson. In 2017, Toyota moved intoits 2-million-SF North American headquarters at theLegacy West development in Plano. The companyrelocated its sales, engineering, and finance operationsfrom California, bringing about 4,000 jobs, and it hasplans to eventually add thousands more. Another majorheadliner is Liberty Mutual Insurance, which addedaround 5,000 jobs in Legacy West.
It doesn't stop there, though, as Charles Schwabcompleted construction of the first phase of their regionalheadquarters in the second quarter of 2019, adding2,600 new jobs to Westlake (north of Fort Worth) in theshort term and plans on adding thousands more at fullbuild-out. Furthermore, existing employers like AT&T, 7-Eleven, JPMorgan Chase, USAA, and Fannie Mae areexpanding their local footprints.
D-FW's affordability, location, and quality of laborcontinue to attract major employers. The cost of businessis an obvious consideration for any company looking toexpand or relocate, and for companies weighing themetroplex against major coastal cities like Boston or San
Francisco, the price differential can be substantial.Business costs in D-FW are roughly even with thenational average, while costs in many coastal cities aremore than 20% above that. Plus, policies at both thestate and local levels tend to be business-friendly—D-FW cities often dole out generous tax incentives to enticebig new office, retail, and industrial tenants. As long aspopulation growth in those cities remains strong, they willlikely be able to remain competitive with incentives.
The metroplex is an attractive place to conduct businessfor other reasons as well. The metro's location in thecenter of the country, and the presence of bothDallas/Fort Worth International and Dallas Love Field,makes flights to either coast manageable, a plus forcorporate executives. Also, Dallas-Fort Worth is a majordistribution hub, upping its appeal for companies thatmanufacture and ship goods throughout the country.Lastly, D-FW has a deep, well-educated employmentbase, allowing corporations to relocate there withoutsacrificing quality of labor.
Dallas-Fort Worth is often under-credited for itsdiversification and doesn't need expensive oil prices forsustained growth. Dallas was one of the first internationalenergy hubs, but many of those companies have slowlyshifted operations to Houston over the years, maintaininga smaller D-FW workforce, made up primarily ofexecutives who didn't move to Houston. Case in point:ExxonMobil. The company's corporate headquarters is inIrving, but for all intents and purposes, its mainoperations center is located at its 3-million-SF campusin Houston. While D-FW is still above average in termsof employment in natural resources and mining, theeffects of the latest oil bust were confined mainly to theFort Worth side of the metroplex, where many energy-related companies are located. Even so, Fort Worth hasweathered the storm and could see significant upside ifoil prices rise.
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Dallas-Fort Worth Economic SummaryDallas-Fort Worth Office
DALLAS-FORT WORTH EMPLOYMENT BY INDUSTRY IN THOUSANDS
NAICS Industry Jobs LQ MarketUS USMarketUSMarket
Current Jobs Current Growth 10 Yr Historical 5 Yr Forecast
0.13%-0.29%0.67%0.54%1.59%2.68%0.9283Manufacturing
0.44%1.21%1.11%2.61%1.15%2.56%1.1798Trade, Transportation and Utilities
0.32%1.19%0.82%2.17%0.08%0.82%1.0377 Retail Trade
0.42%1.73%0.94%2.80%1.28%2.48%1.4311Financial Activities
0.77%1.20%-0.03%0.98%0.51%1.56%0.8436Government
0.30%0.47%1.81%2.50%3.55%5.25%1.1231Natural Resources, Mining and Construction
0.33%0.97%2.09%3.05%2.03%2.43%0.8459Education and Health Services
0.89%1.66%2.53%3.79%2.50%3.02%1.2636Professional and Business Services
0.44%0.37%-0.02%-0.31%-0.08%-1.53%1.282Information
0.41%0.88%2.43%3.50%2.29%4.06%1.0399Leisure and Hospitality
0.22%0.72%0.92%1.96%1.09%2.99%0.9128Other Services
Total Employment 3,765 1.0 2.75% 1.66% 2.47% 1.36% 1.07% 0.49%
Source: Oxford Economics
LQ = Location Quotient
Source: Oxford Economics
YEAR OVER YEAR JOB GROWTH
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Dallas-Fort Worth Economic SummaryDallas-Fort Worth Office
DEMOGRAPHIC TRENDS
Current ChangeCurrent Level
Metro U.S.Metro U.S.Demographic Category
10-Year Change
Metro U.S. Metro U.S.
Forecast Change (5 Yrs)
Population 329,081,1257,612,287 1.7% 0.7% 1.9% 0.7% 1.7% 0.7%
Households 121,216,1092,641,607 1.6% 0.6% 1.7% 0.7% 1.6% 0.6%
Median Household Income $63,835$72,383 4.6% 3.7% 2.7% 2.2% 4.2% 4.3%
Labor Force 163,575,0473,984,312 1.9% 1.1% 2.3% 0.6% 1.1% 0.5%
Unemployment 3.8%3.4% -0.1% -0.1% -0.4% -0.5% - -
Source: Oxford Economics
POPULATION GROWTH
Source: Oxford Economics
LABOR FORCE GROWTH INCOME GROWTH
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670 W Arapaho Rd - Building 1
PREPARED BY
Ed Parrish
Broker
Peer Properties
16,577 SF Office Building
Peer Properties Summary670 W Arapaho Rd - Building 1
No. Peers
8Gross Direct Asking Rent
$20.08Availability Rate
17.7%Vacancy Rate
15.9%PEER LOCATIONS
PEER SUMMARY STATISTICS
Property Attributes Low Average Median High
Building SF 4,556 49,371 21,807 199,458
Year Built 1974 1981 1981 1986
Stories 1 3 1 13
Typical Floor SF 4,556 15,377 17,081 23,256
Vacancy Rate 3.4% 15.9% 14.4% 82.5%
Availability Rate 5.0% 17.7% 17.2% 72.0%
Star Rating 2.3
Available Space Attributes Low Average Median High
Space SF 1,061 9,968 6,642 32,915
Gross Direct Asking Rent Per SF $20.08 $20.08 $20.08 $20.08
Months On Market 0.7 18.5 6.5 65.3
Floor Number 1 2 1 13
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Peer Properties Summary670 W Arapaho Rd - Building 1
Property Name / Address Rating Yr Blt/Renov Bldg SF Stories SF Avail %
Property Size
Spcs
Availability
Vac % Gross Direct Rent
-1 Campbell Plaza Office B…1986/- 12,074 1 0 0%
610 Old Campbell Rd1 0% -
-Building 1
1977/- 16,577 1 0 0%670 W Arapaho Rd
0 0% -
-2 100 N Central Expy1974/- 199,458 13 11,753 5.9%7 3.4% $20.08
-3 Two Mission Park1980/- 77,731 4 32,915 42.3%
1202 Richardson Dr10 38.7% -
-4 Mission Plaza1983/- 38,715 2 6,642 17.2%
1201 Richardson Dr4 14.4% -
-5 Arapaho Gardens1979/- 4,556 1 1,061 23.3%
1149 Rockingham Dr1 23.3% -
-6 1475 Richardson Dr1986/- 23,256 1 1,160 5.0%1 5.0% -
-7 1485 Richardson Dr1986/1999 18,819 1 13,556 72.0%5 82.5% -
-8 Arapaho Gardens1980/- 20,358 2 2,691 13.2%
1131 Rockingham Dr3 13.2% -
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Vacancy 3.4%
199,458 SF / 13 Stories
Owner: Fobare Commercial LP
Rent/SF $20.08,
100 N Central Expy2
Vacancy 0%
670 W Arapaho Rd16,577 SF / 1 Story
Owner: Richardson Prof. Prk Leasing…
Rent/SF -,
Subject Property
Building 1
Vacancy 0%
610 Old Campbell Rd12,074 SF / 1 Story
Owner: Old Campbell Road Partners…
Rent/SF -,
Campbell Plaza Office Busi…1
Vacancy 23.3%
1149 Rockingham Dr4,556 SF / 1 Story
Owner: Golden Franchising Corporati…
Rent/SF -,
Arapaho Gardens5
Vacancy 14.4%
1201 Richardson Dr38,715 SF / 2 Stories
Owner: Whitehall Real Estate, Inc.
Rent/SF -,
Mission Plaza4
Vacancy 38.7%
1202 Richardson Dr77,731 SF / 4 Stories
Owner: Momentum Commercial Realty
Rent/SF -,
Two Mission Park3
Vacancy 13.2%
1131 Rockingham Dr20,358 SF / 2 Stories
Owner: Golden Franchising Corporati…
Rent/SF -,
Arapaho Gardens8
Vacancy 82.5%
18,819 SF / 1 Story
Owner: Momentum Commercial Realty
Rent/SF -,
1485 Richardson Dr7
Vacancy 5.0%
23,256 SF / 1 Story
Owner: Column Finl
Rent/SF -,
1475 Richardson Dr6
Peer Property Photos670 W Arapaho Rd - Building 1
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Property Name / Address Rating Gross Direct Rent Per SF Vacancy Rate
100 N Central Expy2 $20.08 3.4%
1485 Richardson DrWithheld7 82.5%
Two Mission Park
1202 Richardson DrWithheld3 38.7%
Arapaho Gardens
1149 Rockingham DrWithheld5 23.3%
Mission Plaza
1201 Richardson DrWithheld4 14.4%
Arapaho Gardens
1131 Rockingham DrWithheld8 13.2%
1475 Richardson DrWithheld6 5%
Building 1
670 W Arapaho Rd$17 - 21(Est.) 0%
Campbell Plaza Office…
610 Old Campbell Rd
Average
(Arrows indicate trend over last quarter)
1 $21 - 25(Est.) 0%
15.3%$20.08
Peer Property Comparison670 W Arapaho Rd - Building 1
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Peer Property Comparison670 W Arapaho Rd - Building 1
Property Name / Address Rating Availability Rate Vacancy Rate
1485 Richardson Dr7 72% 82.5%
Two Mission Park
1202 Richardson Dr3 42.3% 38.7%
Arapaho Gardens
1149 Rockingham Dr5 23.3% 23.3%
Mission Plaza
1201 Richardson Dr4 17.2% 14.4%
Arapaho Gardens
1131 Rockingham Dr8 13.2% 13.2%
100 N Central Expy2 5.9% 3.4%
1475 Richardson Dr6 5% 5%
Building 1
670 W Arapaho Rd0% 0%
Campbell Plaza Office…
610 Old Campbell Rd
Average
(Arrows indicate trend over last quarter)
1 0% 0%
15.3%17%
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Peer Property Comparison670 W Arapaho Rd - Building 1
Property Name / Address Rating Gross Direct Rent Per SF Median Months on Market
100 N Central Expy2 $20.08 65
Two Mission Park
1202 Richardson DrWithheld3 30
1485 Richardson DrWithheld7 23
Mission Plaza
1201 Richardson DrWithheld4 6
1475 Richardson DrWithheld6 3
Arapaho Gardens
1131 Rockingham DrWithheld8 1
Arapaho Gardens
1149 Rockingham DrWithheld5 1
Building 1
670 W Arapaho Rd$17 - 21(Est.)
Campbell Plaza Office…
610 Old Campbell Rd
Average
(Arrows indicate trend over last quarter)
1 $21 - 25(Est.)
28$20.08
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Peer Property Comparison670 W Arapaho Rd - Building 1
Property Name / Address Rating 12 Mo. Leasing Activity in SF 12 Mo. Net Absorption in SF
100 N Central Expy2 27,668 28,838
Two Mission Park
1202 Richardson Dr3 7,617 6,272
Mission Plaza
1201 Richardson Dr4 4,865 (698)
1475 Richardson Dr6 4,496 3,041
1485 Richardson Dr7 4,416 (1,310)
Campbell Plaza Office…
610 Old Campbell Rd1 180 180
Building 1
670 W Arapaho Rd0 0
Arapaho Gardens
1149 Rockingham Dr5 0 (1,061)
Arapaho Gardens
1131 Rockingham Dr
Average
8 0 (2,691)
3,6195,471
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Peer Property Details670 W Arapaho Rd - Building 1
1 100 N Central ExpyDistance to Subject Property: 1.0 Miles
EXPENSES
Taxes: $0.01/SF (2012)
Op. Exp: $8.10/SF (2004-Est)
PROPERTY
Type: Class B Office
Yr Blt/Renov: 1974
RBA: 199,458 SF
Core Factor: 15%
Stories: 13
Typical Floor: 10,500 SF
Parking Spaces: 246: 3.00/1,000 SF
# of Tenants: 64
OWNER
Fobare Commercial LP
Purchased 12/13/2005
Price $17,500,000; $88/SF
COMPARISON SUBJECTTHIS PROPERTY
Vacancy %: 3.4% 0%
Available SF: 11,753 -
Gross Ask Rent: $20.08 -
Months To Lease: 15 mo 18 mo
Time On Market: 65 mo -
Walk Score®: 65 44
Transit Score®: 45 26
AVAILABILITY OFFICE
Spaces: 7
Square Feet: 11,978
Range: 120 - 4,991
Max Contig: 4,991
% Sublet: 2.5 %
Asking Rent: $15.74/+ELEC
2 1202 Richardson DrDistance to Subject Property: 0.9 Miles
EXPENSES
Taxes: $1.69/SF (2018)
Op. Exp: $0.54/SF (2013)
PROPERTY
Type: Class B Office
Yr Blt/Renov: 1980
RBA: 77,731 SF
Core Factor: 13.5%
Stories: 4
Typical Floor: 18,750 SF
Parking Spaces: 399: 5.20/1,000 SF
# of Tenants: 18
OWNER
Momentum Commercial Realty
Purchased 1/24/2017
COMPARISON SUBJECTTHIS PROPERTY
Vacancy %: 38.7% 0%
Available SF: 32,915 -
Gross Ask Rent: - -
Months To Lease: 56 mo 18 mo
Time On Market: 30 mo -
Walk Score®: 34 44
Transit Score®: 54 26
AVAILABILITY OFFICE
Spaces: 10
Square Feet: 32,915
Range: 845 - 15,128
Max Contig: 15,128
% Sublet: 0 %
Asking Rent: -
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Peer Property Details670 W Arapaho Rd - Building 1
3 1485 Richardson DrDistance to Subject Property: 0.9 Miles
EXPENSES
Taxes: $3.73/SF (2005)
Op. Exp: $10.35/SF (2007)
PROPERTY
Type: Class B Office
Yr Blt/Renov: 1986/1999
RBA: 18,819 SF
Core Factor: 8%
Stories: 1
Typical Floor: 18,819 SF
Parking Spaces: 132: 5.00/1,000 SF
# of Tenants: 8
OWNER
Momentum Commercial Realty
Purchased 6/13/2012
COMPARISON SUBJECTTHIS PROPERTY
Vacancy %: 82.5% 0%
Available SF: 13,556 -
Gross Ask Rent: - -
Months To Lease: 7 mo 18 mo
Time On Market: 23 mo -
Walk Score®: 32 44
Transit Score®: 52 26
AVAILABILITY OFFICE
Spaces: 5
Square Feet: 13,556
Range: 1,021 - 6,723
Max Contig: 6,723
% Sublet: 0 %
Asking Rent: -
4 1201 Richardson DrDistance to Subject Property: 0.9 Miles
EXPENSES
Taxes: $1.70/SF (2018)
PROPERTY
Type: Class B Office
Yr Blt/Renov: 1983
RBA: 38,715 SF
Core Factor: 15%
Stories: 2
Typical Floor: 19,331 SF
Parking Spaces: 207: 5.35/1,000 SF
# of Tenants: 13
OWNER
Whitehall Real Estate, Inc.
Purchased 10/22/1996
Price $1,625,000; $42/SF
COMPARISON SUBJECTTHIS PROPERTY
Vacancy %: 14.4% 0%
Available SF: 6,642 -
Gross Ask Rent: - -
Months To Lease: 37 mo 18 mo
Time On Market: 6 mo -
Walk Score®: 34 44
Transit Score®: 54 26
AVAILABILITY OFFICE
Spaces: 4
Square Feet: 6,642
Range: 1,079 - 2,578
Max Contig: 2,578
% Sublet: 0 %
Asking Rent: -
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Peer Property Details670 W Arapaho Rd - Building 1
5 1131 Rockingham DrDistance to Subject Property: 0.1 Miles
EXPENSES
Taxes: $1.24/SF (2011-Est)
Op. Exp: $6.01/SF (2011-Est)
Total Expenses: $7.25/SF (2011-Est)
PROPERTY
Type: Class C Office
Yr Blt/Renov: 1980
RBA: 20,358 SF
Core Factor: 15%
Stories: 2
Typical Floor: 10,179 SF
Parking Spaces: 75: 3.00/1,000 SF
# of Tenants: 21
OWNER
Golden Franchising Corporation
Purchased 12/14/2010
Price $661,279; $32/SF (Confirmed)
COMPARISON SUBJECTTHIS PROPERTY
Vacancy %: 13.2% 0%
Available SF: 2,691 -
Gross Ask Rent: - -
Months To Lease: 15 mo 18 mo
Time On Market: 1 mo -
Walk Score®: 57 44
Transit Score®: 27 26
AVAILABILITY OFFICE
Spaces: 3
Square Feet: 2,691
Range: 619 - 1,074
Max Contig: 1,074
% Sublet: 0 %
Asking Rent: -
6 1475 Richardson DrDistance to Subject Property: 0.9 Miles
EXPENSES
Taxes: $2.85/SF (2010)
PROPERTY
Type: Class C Office
Yr Blt/Renov: 1986
RBA: 23,256 SF
Stories: 1
Typical Floor: 23,256 SF
Parking Spaces: 80: 3.44/1,000 SF
# of Tenants: 14
OWNER
Purchased 10/5/2010
COMPARISON SUBJECTTHIS PROPERTY
Vacancy %: 5.0% 0%
Available SF: 1,160 -
Gross Ask Rent: - -
Months To Lease: 14 mo 18 mo
Time On Market: 3 mo -
Walk Score®: 31 44
Transit Score®: 52 26
AVAILABILITY OFFICE
Spaces: 1
Square Feet: 1,160
Range: 1,160
Max Contig: 1,160
% Sublet: 5.0 %
Asking Rent: $16.50/+ELEC
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Peer Property Details670 W Arapaho Rd - Building 1
7 1149 Rockingham DrDistance to Subject Property: 0.1 Miles
EXPENSES
Taxes: $0.95/SF (2011)
Op. Exp: $6.44/SF (2011)
Total Expenses: $7.39/SF (2011)
PROPERTY
Type: Class C Office
Yr Blt/Renov: 1979
RBA: 4,556 SF
Stories: 1
Typical Floor: 4,556 SF
Parking Spaces: 3.00/1,000 SF
# of Tenants: 3
OWNER
Golden Franchising Corporation
Purchased 12/14/2010
Price $162,713; $36/SF (Confirmed)
COMPARISON SUBJECTTHIS PROPERTY
Vacancy %: 23.3% 0%
Available SF: 1,061 -
Gross Ask Rent: - -
Months To Lease: 18 mo 18 mo
Time On Market: 1 mo -
Walk Score®: 50 44
Transit Score®: 28 26
AVAILABILITY OFFICE
Spaces: 1
Square Feet: 1,061
Range: 1,061
Max Contig: 1,061
% Sublet: 0 %
Asking Rent: -
8 610 Old Campbell RdDistance to Subject Property: 0.9 Miles
EXPENSES
Taxes: $3.73/SF (2018)
PROPERTY
Type: Class C Office
Yr Blt/Renov: 1986
RBA: 12,074 SF
Stories: 1
Typical Floor: 12,074 SF
Parking Spaces: 8: 1.32/1,000 SF
# of Tenants: 6
OWNER
Old Campbell Road Partners Llc
Purchased 10/20/2016
COMPARISON SUBJECTTHIS PROPERTY
Vacancy %: 0% 0%
Available SF: - -
Gross Ask Rent: - -
Months To Lease: - 18 mo
Time On Market: - -
Walk Score®: 67 44
Transit Score®: 36 26
AVAILABILITY OFFICE
Spaces: 1
Square Feet: 2,500
Range: 130 - 2,500
Max Contig: 2,500
% Sublet: 0 %
Asking Rent: $52.50/NEGOT
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670 W Arapaho Rd - Building 1
PREPARED BY
Ed Parrish
Broker
Leasing Analytics
16,577 SF Office Building
DALLAS-FORT WORTH VACANCY OVERVIEW
Corporate relocations and expansions continue to driveoffice demand in Dallas-Fort Worth. A highly skilledlabor force, low business costs relative to costal markets,a central location, accessibility, and aggressive incentivepackages offered by the State of Texas and localmunicipalities have made the region a hotbed forcorporate expansions and relocations.
While many markets have realized a steady stream ofcorporations migrating from suburbs to the urban core asthey chase the millennial workforce. The suburbs ofDallas have been thriving. For example, AllstateInsurance is planning a major expansion in Irving, withplans to invest $11 million while adding 1,300 new jobs.Also in Irving, construction of Pioneer Natural Resources'new campus is well underway, totaling about 900,000SF, and it will sit within two towers connected by a mainhub in the center that will help bring the company’snearly 1,100 employees together. While Amazon HQ2took quite a bit of oxygen out the room, McKesson Corp,the nation’s largest pharmaceutical distributor,announced in late 2018 it will relocate its headquartersfrom San Francisco to Irving. The company ranks sixthon the Fortune 500 list, making it the second largestcompany by revenue based in North Texas, surpassingAT&T. In 2017, Toyota moved their North Americanheadquarters to Legacy West in Plano from Torrance,California, and Erlanger, Kentucky, as part of anationwide consolidation. Also in Legacy, Liberty Mutualadded 5,000 jobs at its new 1-million-SF campus. Afterrecently completing the first phase of its 1-million-SFregional campus, JPMorgan Chase is requestingapproval to expand the second phase of its $300 million
project.
While suburban submarkets have benefitted from thelion’s share of large corporate moves, the urban core hasattracted some sizable relocations and expansion aswell. In late 2018, Salesforce announced it wouldconsolidate workers from across North Texas to TheUnion in Uptown, leasing just over 100,000 SF. TheBeck Group will be moving more than 200 employees totheir new 81,000-SF headquarters in ThanksgivingTower later this year. AT&T continued revamp of itsDowntown headquarters to accommodate the 2,000 newhires announced in 2016. The carrier is investing over$100 million in an “urban tech center” that will be knownas the AT&T Discovery District featuring shopping,dining, and relaxation opportunities for employees,residents, and visitors. Other notable leases includedHana signing a 67,000-SF lease in PwC Tower; the lawfirm of Kane, Russell, Coleman & Logan taking 44,900SF in Bank of America Plaza; and Common Desk signinga 51,000-SF deal in the Trammell Crow Center.
In the past 12 months, the Dallas-Fort Worth market hasexperienced over 3.7 million SF of positive netabsorption, New York and Boston are the only two tohave realized more than the metroplex. While much ofthe demand came in the form of build-to-suits for largesingle tenants, multi-tenant activity picked up throughthe first half of 2019. This has been particularly true in 4& 5 Star assets, which have accounted for around 70%of the net absorption over the past 12 months,reinforcing the flight to quality trend.
Vacancy Analytics670 W Arapaho Rd - Building 1
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Vacancy Analytics670 W Arapaho Rd - Building 1
RICHARDSON VACANCY OVERVIEW
CityLine, particularly State Farm’s build-to-suit campus,has garnered many of the headlines, and rightly so. Infact, the moves by State Farm (roughly 2 million SF) andRaytheon (nearly 500,000 SF) represented a 12%increase in the submarket’s occupied square footage.Over the long term, more businesses are likely to want tolocate here as CityLine continues to become moreurbanized, boasting high-end retail and new apartments.Tenants looking for larger space in Richardson will findthat CityLine contains plenty of room to constructadditional build-to-suits. In terms of speculative deals inCityLine, Transwestern Dallas and Malouf Interestscompleted the first multi-tenant property in the buildingpark, 3400 CityLine. The 313,000-SF project delivered100% vacant in July 2017. The asset remained vacantfor more than one year after delivering but has generatedsome leasing activity of late. These leases wereheadlined by DXC Technology, which signed for roughly100,000 SF in early 2019 and Generational Group, whichtook 31,000 SF in late 2018.
Plenty of large blocks are on the market, and manylandlords are reportedly fishing for single-tenant users.As of early 2019, more than 10 properties had more than100,000 SF of contiguous space available, and upwards
of 20 buildings had more than 50,000 SF. Those figureshaven’t changed much in recent quarters. One potentialdownside to leasing here is that large tenants oftenprefer new build-to-suits over existing space in thenorthern Dallas suburbs. Recent examples include notjust the massive campuses for Toyota, Liberty Mutual,and JPMorgan Chase, but other large buildings forFedEx Office and Fannie Mae. Following that trend, bothAT&T Wireless and Samsung moved out of about200,000 SF each in Richardson in 19Q1, with Samsungheading north to the newly renovated Legacy Centraldevelopment in Plano.
On the upside, Richardson has seen some momentum inthe form of firms taking satellite space to complementtheir core regional offices. For example, Goldman Sachsmoved into its new regional office at Trammell CrowCenter in the Dallas CBD in early 2018 but also took44,000 SF at Galatyn Commons in Richardson in 2017.Similarly, Steward Health relocated its headquarters fromBoston to 1900 Pearl in the Dallas CBD in early 2018 butsubsequently signed on for 165,000 SF at GalatynCommons as well. Across the street from GalatynCommons, technology firm Infosys signed on for roughly100,000 SF at 2400 Glenville in 18Q3.
VACANCY RATE
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Vacancy Analytics670 W Arapaho Rd - Building 1
VACANCY RATE
Vacancy Trend (YOY) VacancyTrend (YOY) Trend (YOY)VacancyTrend (YOY)Vacancy
Subject Peers Richardson Dallas-Fort Worth
-0.6%15.9%-4.9%16.9%0%20.7%9%15.5%2013
-1.3%14.6%-2.2%14.7%-4.3%16.4%-15.5%0%2014
-0.4%14.2%3.2%17.9%3.4%19.8%14.6%14.6%2015
0.1%14.3%-1.4%16.5%0.3%20.1%0%14.6%2016
0.5%14.7%-0.6%15.8%6.7%26.8%-6.9%7.6%2017
0.2%14.9%0.4%16.2%-9.1%17.8%-7.6%0%2018
0%14.9%-0.3%16.0%-1.8%15.9%0%0%YTD
-0.1%14.8%-1.6%14.6%-1.9%15.8%2019
0.3%15.1%0.7%15.3%0.6%16.4%2020
0.4%15.4%0.4%15.7%0.4%16.8%2021 Forecast >
0.2%15.6%0.4%16.1%0.4%17.3%2022
0.1%15.8%0.2%16.3%0.2%17.5%2023
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Vacancy Analytics670 W Arapaho Rd - Building 1
AVAILABILITY RATE
AVAILABILITY RATE
Availability Trend (YOY) AvailabilityTrend (YOY) Trend (YOY)AvailabilityTrend (YOY)Availability
Subject Peers Richardson 3 Star Dallas-Fort Worth 3 Star
-1.5%17.0%-6%21.2%0.3%21.9%9%15.5%2013
0.2%17.1%1.3%22.5%-5.1%16.8%-15.5%0%2014
0.3%17.5%3.8%26.3%2.6%19.4%14.6%14.6%2015
-0.6%16.9%-1%25.3%1.4%20.9%0%14.6%2016
0.2%17.1%-1.4%23.9%6%26.9%-6.9%7.6%2017
-0.8%16.3%-4%19.9%-7.2%19.7%-7.6%0%2018
0%16.6%-2.6%18.3%-2.1%17.7%0%0%2019 YTD
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Vacancy Analytics670 W Arapaho Rd - Building 1
MEDIAN MONTHS ON MARKET
MEDIAN MONTHS ON MARKET
Peers Richardson Dallas-Fort Worth
2009 24.0 16.3 12.9
2010 18.0 17.5 15.2
2011 27.7 21.2 18.1
2012 31.6 25.2 19.9
2013 28.7 25.3 19.4
2014 31.4 28.5 19.9
2015 34.0 25.0 20.5
2016 28.6 23.1 17.3
2017 23.1 17.2 13.1
2018 25.1 13.9 12.7
2019 12.2 15.1 12.8
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Vacancy Analytics670 W Arapaho Rd - Building 1
MONTHS TO LEASE BY BLOCK SIZE (PAST 3 YEARS)
MONTHS TO LEASE BY BLOCK SIZE (PAST 3 YEARS)
Peers Richardson Dallas-Fort Worth
0-9,999 SF 11.1 10.4 9.6
10,000-19,999 SF - 16.1 14.1
20,000-49,999 SF - 18.9 17.5
50,000-99,999 SF - 17.0 18.7
100,000+ SF - 32.5 18.9
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Vacancy Analytics670 W Arapaho Rd - Building 1
RENEWAL RATES
RENEWAL RATES
Richardson & Adjacent Dallas-Fort Worth
2009 63.7% 60.7%
2010 54.2% 61.1%
2011 62.9% 68.7%
2012 84.4% 71.7%
2013 68.2% 64.9%
2014 83.3% 65.8%
2015 52.7% 58.7%
2016 54.1% 56.2%
2017 43.1% 52.9%
2018 29.8% 46.3%
2019 7.8% 10.5%
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Rent Analytics670 W Arapaho Rd - Building 1
DALLAS-FORT WORTH RENT TRENDS
There is quite a bit of potential upside in D-FW rents:There is a robust construction pipeline of around 7.8million SF, and several key renovations are breathingnew life into older, outdated properties, along with firmeconomic underpinnings. Despite the increase inspeculative supply, rent growth has remained above themetro’s historical average, with 4 & 5 Star assetskeeping pace with the national average. As of mid-year2019, the number of spec starts had slowed, leading to apossible shift in pricing power in the favor of landlords aslong as vacancies remain below historical norms. Whilemoderate growth is anticipated in the short term, we donot expect rents to undergo the run-up of nearly 6%experienced in late 2014.
The flight to quality has created an increasinglybifurcated market. Submarkets with a high concentrationof newer buildings and 4 & 5 Star inventory, likeUptown/Turtle Creek and Upper Tollway/West Plano,have outperformed the market, with average asking rentsfrom $35/SF–$41/SF. Submarkets with a highconcentration of high-quality, 1980s-era stock, such asPreston Center and Central Expressway, have also donewell over the past few years. A few laggards includeareas with older building stock or a lack of 4 & 5 Starassets. These include Garland, Southeast Dallas,Stemmons Freeway, and East Northeast Ft. Worth.
RICHARDSON RENT TRENDS
Rent growth in Richardson was buoyed by newlyrenovated properties earlier this cycle. Since 2010, morethan 2.7 million SF, primarily 80s and 90s product, hasbeen renovated. These properties have seen cumulativerent growth of about 50% since 2010. However, as ofyear-end 2018, the combined occupancy rate on thoseassets was only 60%, a figure that has not changedmuch in recent quarters.
After a few years of impressive rent increases, rentgrowth has underperformed the metro average as of late.Richardson ranked as one of the worst submarkets forrent growth in D-FW in 2018. Rents are still only about10% above their prerecession peak, a figure that lags thenearby Upper Tollway/West Plano Submarket, whererents are more than 20% above where they were beforethe downturn.
GROSS ASKING RENT PER SQUARE FOOT
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Rent Analytics670 W Arapaho Rd - Building 1
GROSS ASKING RENT PER SQUARE FOOT
Direct Rent Trend (YOY) Market RentTrend (YOY) Trend (YOY)Market RentTrend (YOY)Market Rent
Subject Peers Richardson Dallas-Fort Worth
4.7%$21.277.6%$20.083%$16.37-$14.002013
5.7%$22.494.5%$20.993.5%$16.950%$14.002014
4.1%$23.403.5%$21.722.7%$17.41-14.3%$12.002015
3.2%$24.152.6%$22.292.6%$17.860%$12.002016
3.2%$24.923.3%$23.022.3%$18.2712.5%$13.502017
2.8%$25.621.4%$23.340.1%$18.290%$13.502018
0.8%$25.810.3%$23.40-0.4%$18.23--YTD
2%$26.130.9%$23.550.3%$18.352019
1.7%$26.571.1%$23.801.2%$18.582020
1.5%$26.971.2%$24.101.4%$18.842021 Forecast >
1.7%$27.421.5%$24.461.7%$19.172022
1.5%$27.831.4%$24.811.6%$19.472023
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Absorption Analytics670 W Arapaho Rd - Building 1
NET ABSORPTION IN PEERS IN SQUARE FEET
NET ABSORPTION IN RICHARDSON SUBMARKET IN SQUARE FEET
NET ABSORPTION IN DALLAS-FORT WORTH IN SQUARE FEET
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Leasing Analytics670 W Arapaho Rd - Building 1
LEASING ACTIVITY IN PEERS IN SQUARE FEET
LEASING ACTIVITY IN RICHARDSON SUBMARKET IN SQUARE FEET
LEASING ACTIVITY IN DALLAS-FORT WORTH IN SQUARE FEET
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Leasing Analytics670 W Arapaho Rd - Building 1
SUBLEASE SPACE AVAILABLE IN DALLAS-FORT WORTH IN SQUARE FEET
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670 W Arapaho Rd - Building 1
PREPARED BY
Ed Parrish
Broker
Lease Comps
16,577 SF Office Building
Lease Comps Summary670 W Arapaho Rd - Building 1
Deals
12Gross Asking Rent Per SF
$16.12Gross Starting Rent Per SF
$17.06Avg. Months On Market
11LEASE COMPARABLES
SUMMARY STATISTICS
Rent Deals Low Average Median High
Gross Asking Rent Per SF
Gross Starting Rent Per SF
Gross Effective Rent Per SF
Asking Rent Discount
TI Allowance
Months Free Rent
10
11
3
9
-
3
$14.50
$14.87
$14.87
-65.1%
-
0
$16.12
$17.06
$16.28
-7.2%
-
2
$17.74
$16.78
$17.00
0.0%
-
3
2.9%
-
3
$24.34
$27.19
$77.84
Lease Attributes Deals Low Average Median High
Months on Market
Deal Size
Lease Deal in Months
Floor Number
12
12
8
12
1
500
12.0
1
11
3,969
39.0
2
9
2,397
36.0
2 8
42
26,696
84.0
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Lease Comps Summary670 W Arapaho Rd - Building 1
Property Name - Address Rating SF Leased Floor Sign Date Rent Rent Type
Lease
Type
Rents
-1 Northwest Office Plaza2,602 2nd 3/18/2019 $16.14/fs Starting
1750 N Collins BlvdNew
-2 Building 22,300 1st 2/18/2019 $15.00/fs Starting
1112 N Floyd RdNew
-1 Northwest Office Plaza500 2nd 2/13/2019 $15.60/fs Starting
1750 N Collins BlvdNew
-3 Eastside Atrium3,375 1st 11/19/2018 $20.50/+elec Starting
800 E Campbell RdNew
-3 Eastside Atrium2,495 1st 11/19/2018 $20.50/+elec Starting
800 E Campbell RdNew
-4 Office Alpha812 2nd 11/15/2018 $15.95/+elec Effective
13140 Coit RdNew
-5 Comerica Bank Building…938 3rd 11/9/2018 $16.10/fs Starting
811 S Central ExpyNew
-6 Spring Valley Business…26,696 2nd 10/19/2018 $14.87/fs Effective
1057 S Sherman StNew
-5 Comerica Bank Building…518 3rd 9/17/2018 $16.50/nnn Starting
811 S Central ExpyNew
-7 Arapaho Creek Office3,232 1st 9/10/2018 $9.50/nnn Starting
1350 E Arapaho RdNew
-8 Eastside Centre3,564 8th 8/10/2018 $26.00/+elec Starting
740 E Campbell RdNew
-4 Office Alpha600 3rd 7/30/2018 $76.80/+elec Effective
13140 Coit RdNew
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Lease Comps Details670 W Arapaho Rd - Building 1
1 1750 N Collins Blvd - Northwest Office PlazaRichardson, TX 75080 - Richardson Submarket
RENTS
Asking Rent: $12.00-$18.00/FS
Starting Rent: $16.14/FS
CONCESSIONS AND BUILDOUT
Asking Discount: -7.60%
Buildout: Professional Services
Buildout Status: Full Build-Out
Space Condition: Average
LEASE
SF Leased: 2,602 SF
Sign Date: Mar 2019
Space Use: Office/Medical
Lease Type: Direct
Floor: 2nd Floor
Suite: 208, 224
LEASE TERM
Start Date: Apr 2019
TIME VACANT
Date Vacated: Jul 2018
Date Occupied: Apr 2019
Months Vacant: 8 Months
TIME ON MARKET
Date On Market: Jun 2018
Date Off Market: Mar 2019
Months on Market: 10 Months
LEASING REP
TAC Brokerage and Consultant LLC
3828 Kimbrough Ln
Plano, TX 75025
Carole Tam, CCIM (469) 999-8746
PROPERTY
Rentable Area: 33,055 SF
Stories: 2
Floor Size: 16,528 SF
Vacancy at Lease: 15.6%
Land Acres: 2.10
Property Type: Office
Status: Built 1984
Tenancy: Multi
Class: B
Construction: Masonry
Parking: 80 free Surface Spa…
MARKET AT LEASE
Vacancy Rates 2019 Q1 YOY
0.4%
0.0%
4.3%Current Building 15.6%
Submarket 2-4 Star
Market Overall 14.8%
16.5%
Same Store Asking Rent/SF 2019 Q1 YOY
0.8%
2.4%
11.3%Current Building $16.22
Submarket 2-4 Star
Market Overall $25.73
$23.45
Submarket Leasing Activity 2019 Q1 YOY
0.8
73.1%12 Mo. Leased SF 2,616,217
Months On Market 15.1
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Lease Comps Details670 W Arapaho Rd - Building 1
2 1112 N Floyd Rd - Building 2Richardson, TX 75080 - Richardson Submarket
TENANT
Tenant Name: Richardson Pediatric Associates
RENTS
Starting Rent: $15.00/FS
CONCESSIONS AND BUILDOUT
Mo. Free Rents: 3 Months
Buildout Status: Raw Space
Space Condition: Excellent
PROPERTY EXPENSES
Taxes: $2.52/SF (2009)
LEASE
SF Leased: 2,300 SF
Sign Date: Feb 2019
Space Use: Office
Lease Type: Direct
Floor: 1st Floor
Suite: 6A
LEASE TERM
Start Date: Mar 2019
Expiration Date: Mar 2026
Lease Term: 7 Years
TIME VACANT
Date Occupied: Mar 2019
TIME ON MARKET
Date On Market: Sep 2018
Date Off Market: Feb 2019
Months on Market: 6 Months
LEASING REP
Dumbbell Properties
801-819 W Arapaho Rd, Suite 24-B #217
Richardson, TX 75080-4039
Ed Parrish (972) 895-3678
PROPERTY
Rentable Area: 15,028 SF
Stories: 1
Floor Size: 15,028 SF
Vacancy at Lease: 0.0%
Land Acres: 3.43
Property Type: Office
Status: Built 1977
Tenancy: Multi
Class: C
Construction: Masonry
Parking: 56 free Surface Spa…
MARKET AT LEASE
Vacancy Rates 2019 Q1 YOY
0.4%
0.0%
15.6%Current Building 0.0%
Submarket 2-4 Star
Market Overall 14.8%
16.5%
Same Store Asking Rent/SF 2019 Q1 YOY
0.8%
2.4%
11.1%Current Building $15.00
Submarket 2-4 Star
Market Overall $25.73
$23.45
Submarket Leasing Activity 2019 Q1 YOY
0.8
73.1%12 Mo. Leased SF 2,616,217
Months On Market 15.1
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Lease Comps Details670 W Arapaho Rd - Building 1
1 1750 N Collins Blvd - Northwest Office PlazaRichardson, TX 75080 - Richardson Submarket
TENANT
Tenant Name: Floors Insurance
RENTS
Starting Rent: $15.60/FS
LEASE
SF Leased: 500 SF
Sign Date: Feb 2019
Space Use: Office
Lease Type: Direct
Floor: 2nd Floor
Suite: 218
LEASE TERM
Start Date: Mar 2019
Expiration Date: Feb 2021
Lease Term: 2 Years
TIME VACANT
Date Vacated: Jan 2019
Date Occupied: Mar 2019
Months Vacant: 1 Month
TIME ON MARKET
Date On Market: Jan 2019
Date Off Market: Feb 2019
Months on Market: 2 Months
LEASING REP
TAC Brokerage and Consultant LLC
3828 Kimbrough Ln
Plano, TX 75025
Carole Tam, CCIM (469) 999-8746
PROPERTY
Rentable Area: 33,055 SF
Stories: 2
Floor Size: 16,528 SF
Vacancy at Lease: 15.6%
Land Acres: 2.10
Property Type: Office
Status: Built 1984
Tenancy: Multi
Class: B
Construction: Masonry
Parking: 80 free Surface Spa…
MARKET AT LEASE
Vacancy Rates 2019 Q1 YOY
0.4%
0.0%
4.3%Current Building 15.6%
Submarket 2-4 Star
Market Overall 14.8%
16.5%
Same Store Asking Rent/SF 2019 Q1 YOY
0.8%
2.4%
11.3%Current Building $16.22
Submarket 2-4 Star
Market Overall $25.73
$23.45
Submarket Leasing Activity 2019 Q1 YOY
0.8
73.1%12 Mo. Leased SF 2,616,217
Months On Market 15.1
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Lease Comps Details670 W Arapaho Rd - Building 1
3 800 E Campbell Rd - Eastside AtriumRichardson, TX 75081 - Richardson Submarket
RENTS
Asking Rent: $20.50/+ELEC
Starting Rent: $20.50/+ELEC
CONCESSIONS AND BUILDOUT
Asking Discount: 0.00%
PROPERTY EXPENSES
Taxes: $2.90/SF (2018)
LEASE
SF Leased: 3,375 SF
Sign Date: Nov 2018
Space Use: Office
Lease Type: Direct
Floor: 1st Floor
Suite: 125
LEASE TERM
Start Date: Dec 2018
TIME VACANT
Date Vacated: May 2018
Date Occupied: Dec 2018
Months Vacant: 7 Months
TIME ON MARKET
Date On Market: Mar 2018
Date Off Market: Nov 2018
Months on Market: 9 Months
TENANT REP
Cresa Washington DC
2 Bethesda Metro Ctr, Suite 900
Bethesda, MD 20814-6319
Aaron B. Berkey (301) 951-6500
LEASING REP
Fobare Commercial LP
18111 Preston Rd, Suite 1000
Dallas, TX 75252-5470
Pat Hanahan (972) 458-7585
Rick Currey (972) 458-7585
PROPERTY
Rentable Area: 126,487 SF
Stories: 3
Floor Size: 41,600 SF
Vacancy at Lease: 13.1%
Land Acres: 7.77
Property Type: Office
Status: Built 1983
Tenancy: Multi
Class: A
Construction: Reinforced Concrete
Parking: 40 Covered Spaces…
MARKET AT LEASE
Vacancy Rates 2018 Q4 YOY
0.7%
0.2%
13.6%Current Building 13.1%
Submarket 3-5 Star
Market Overall 14.9%
17.3%
Same Store Asking Rent/SF 2018 Q4 YOY
1.4%
2.8%
2.8%Current Building $21.50
Submarket 3-5 Star
Market Overall $25.62
$24.02
Submarket Leasing Activity 2018 Q4 YOY
0.6
36.0%12 Mo. Leased SF 2,009,314
Months On Market 14.8
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Lease Comps Details670 W Arapaho Rd - Building 1
3 800 E Campbell Rd - Eastside AtriumRichardson, TX 75081 - Richardson Submarket
RENTS
Asking Rent: $20.50/+ELEC
Starting Rent: $20.50/+ELEC
CONCESSIONS AND BUILDOUT
Asking Discount: 0.00%
PROPERTY EXPENSES
Taxes: $2.90/SF (2018)
LEASE
SF Leased: 2,495 SF
Sign Date: Nov 2018
Space Use: Office
Lease Type: Direct
Floor: 1st Floor
Suite: 134
LEASE TERM
Start Date: Nov 2018
TIME VACANT
Date Vacated: Jan 2018
Date Occupied: Nov 2018
Months Vacant: 10 Months
TIME ON MARKET
Date On Market: Nov 2017
Date Off Market: Nov 2018
Months on Market: 13 Months
LEASING REP
Fobare Commercial LP
18111 Preston Rd, Suite 1000
Dallas, TX 75252-5470
Pat Hanahan (972) 458-7585
Rick Currey (972) 458-7585
PROPERTY
Rentable Area: 126,487 SF
Stories: 3
Floor Size: 41,600 SF
Vacancy at Lease: 13.1%
Land Acres: 7.77
Property Type: Office
Status: Built 1983
Tenancy: Multi
Class: A
Construction: Reinforced Concrete
Parking: 40 Covered Spaces…
MARKET AT LEASE
Vacancy Rates 2018 Q4 YOY
0.7%
0.2%
13.6%Current Building 13.1%
Submarket 3-5 Star
Market Overall 14.9%
17.3%
Same Store Asking Rent/SF 2018 Q4 YOY
1.4%
2.8%
2.8%Current Building $21.50
Submarket 3-5 Star
Market Overall $25.62
$24.02
Submarket Leasing Activity 2018 Q4 YOY
0.6
36.0%12 Mo. Leased SF 2,009,314
Months On Market 14.8
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Lease Comps Details670 W Arapaho Rd - Building 1
4 13140 Coit Rd - Office AlphaDallas, TX 75240 - East LBJ Freeway Submarket
RENTS
Asking Rent: $16.00-$19.00/+ELEC
Starting Rent: $17.00/+ELEC
Effective Rent: $15.95/+ELEC
Escalations: $0.50 Annual
CONCESSIONS AND BUILDOUT
Asking Discount: 2.86%
Mo. Free Rents: 3 Months
PROPERTY EXPENSES
Taxes: $1.39/SF (2018)
Operating Exp.: $5.01/SF (2012)
LEASE
SF Leased: 812 SF
Sign Date: Nov 2018
Space Use: Office
Lease Type: Direct
Floor: 2nd Floor
Suite: 204
LEASE TERM
Start Date: Jan 2019
Expiration Date: Dec 2021
Lease Term: 3 Years
TIME VACANT
Date Vacated: Jun 2018
Date Occupied: Jan 2019
Months Vacant: 7 Months
TIME ON MARKET
Date On Market: Mar 2018
Date Off Market: Nov 2018
Months on Market: 8 Months
LEASING REP
Boxer Property
2727 Lyndon B Johnson Fwy, Suite 610
Farmers Branch, TX 75234-7334
Alexander Renwick (214) 974-5032
Troy Higgins (214) 651-7368
Boxer Property
720 N Post Oak Rd, Suite 500
Houston, TX 77024-3841
Andrea Troske (214) 238-9722
PROPERTY
Rentable Area: 101,977 SF
Stories: 5
Floor Size: 20,652 SF
Vacancy at Lease: 11.9%
Land Acres: 3.29
Property Type: Office
Status: Built Jan 1980
Tenancy: Multi
Class: B
Construction: Masonry
Parking: 365 Surface Spaces…
MARKET AT LEASE
Vacancy Rates 2018 Q4 YOY
1.9%
0.2%
0.5%Current Building 11.9%
Submarket 2-4 Star
Market Overall 14.9%
23.1%
Same Store Asking Rent/SF 2018 Q4 YOY
4.0%
2.8%
5.0%Current Building $19.08
Submarket 2-4 Star
Market Overall $25.62
$24.41
Submarket Leasing Activity 2018 Q4 YOY
6.9
10.2%12 Mo. Leased SF 1,662,421
Months On Market 24.2
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Lease Comps Details670 W Arapaho Rd - Building 1
5 811 S Central Expy - Comerica Bank Building / Serene PlazaRichardson, TX 75080 - Richardson Submarket
RENTS
Asking Rent: $16.50/FS
Starting Rent: $16.10/FS
CONCESSIONS AND BUILDOUT
Asking Discount: 2.42%
LEASE
SF Leased: 938 SF
Sign Date: Nov 2018
Space Use: Office
Lease Type: Direct
Floor: 3rd Floor
Suite: 306
LEASE TERM
Start Date: Dec 2018
Expiration Date: Nov 2020
Lease Term: 2 Years
TIME VACANT
Date Vacated: Apr 2017
Date Occupied: Dec 2018
Months Vacant: 20 Months
TIME ON MARKET
Date On Market: Oct 2017
Date Off Market: Nov 2018
Months on Market: 13 Months
LEASING REP
Serene Global
811 S Central Expy, Suite 600
Richardson, TX 75080-7415
Steve Timmons (972) 737-5006 X601
PROPERTY
Rentable Area: 73,714 SF
Stories: 6
Floor Size: 12,833 SF
Vacancy at Lease: 11.1%
Land Acres: 4.32
Property Type: Office
Status: Built 1962
Tenancy: Multi
Class: B
Construction: Masonry
Parking: Ratio of 3.00/1,000 SF
MARKET AT LEASE
Vacancy Rates 2018 Q4 YOY
0.5%
0.2%
5.5%Current Building 11.1%
Submarket 2-4 Star
Market Overall 14.9%
16.3%
Same Store Asking Rent/SF 2018 Q4 YOY
1.4%
2.8%
Current Building $16.50
Submarket 2-4 Star
Market Overall $25.62
$23.37
-
Submarket Leasing Activity 2018 Q4 YOY
0.6
36.0%12 Mo. Leased SF 2,009,314
Months On Market 14.8
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Lease Comps Details670 W Arapaho Rd - Building 1
6 1057 S Sherman St - Spring Valley Business Center- BRichardson, TX 75081 - Richardson Submarket
TENANT
Tenant Name: DRS Network & Imaging Systems
Industry: Computers/Data Processing
RENTS
Asking Rent: $13.50-$15.50/FS
Starting Rent: $14.87/FS
Effective Rent: $14.87/FS
CONCESSIONS AND BUILDOUT
Asking Discount: -2.55%
PROPERTY EXPENSES
Taxes: $0.64/SF (2018)
Operating Exp.: $1.14/SF (2012)
LEASE
SF Leased: 26,696 SF
Sign Date: Oct 2018
Space Use: Office
Lease Type: Direct
Floor: 2nd Floor
Suite: 200
LEASE TERM
Start Date: Dec 2018
Expiration Date: Mar 2024
Lease Term: 5 Years 4 Months
TIME VACANT
Date Vacated: Aug 2010
Date Occupied: Dec 2018
Months Vacant: 100 Months
TIME ON MARKET
Date On Market: Mar 2018
Date Off Market: Jul 2018
Months on Market: 8 Months
TENANT REP
The Garibaldi Group
14 Fairmount Ave
Chatham, NJ 07928-2328
Jeffrey J. Garibaldi (973) 507-0355
Jerry E. Moore (908) 238-3660
Gerald A. Bower, Jr. (215) 598-5005
LEASING REP
Hartman Management, LP
2909 Hillcroft Ave, Suite 420
Houston, TX 77057-5847
Austin Pyle (713) 467-2222
Malori Administrator (800) 880-2212
PROPERTY
Rentable Area: 37,300 SF
Stories: 2
Floor Size: 17,968 SF
Vacancy at Lease: 5.5%
Land Acres: 2.23
Property Type: Office
Status: Built 1982
Tenancy: Multi
Class: B
Construction: Reinforced Concrete
Parking: Surface Spaces @ $…
MARKET AT LEASE
Vacancy Rates 2018 Q4 YOY
1.5%
0.2%
22.6%Current Building 5.5%
Submarket 1-3 Star
Market Overall 14.9%
16.0%
Same Store Asking Rent/SF 2018 Q4 YOY
0.3%
2.8%
14.8%Current Building $14.50
Submarket 1-3 Star
Market Overall $25.62
$20.80
Submarket Leasing Activity 2018 Q4 YOY
0.6
36.0%12 Mo. Leased SF 2,009,314
Months On Market 14.8
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Lease Comps Details670 W Arapaho Rd - Building 1
5 811 S Central Expy - Comerica Bank Building / Serene PlazaRichardson, TX 75080 - Richardson Submarket
RENTS
Asking Rent: $16.50/NNN
Starting Rent: $16.50/NNN
CONCESSIONS AND BUILDOUT
Asking Discount: 0.00%
LEASE
SF Leased: 518 SF
Sign Date: Sep 2018
Space Use: Office
Lease Type: Direct
Floor: 3rd Floor
Suite: 337
LEASE TERM
Start Date: Oct 2018
Expiration Date: Sep 2021
Lease Term: 3 Years
TIME VACANT
Date Vacated: Aug 2018
Date Occupied: Oct 2018
Months Vacant: 1 Month
TIME ON MARKET
Date On Market: Aug 2018
Date Off Market: Sep 2018
Months on Market: 2 Months
LEASING REP
Serene Global
811 S Central Expy, Suite 600
Richardson, TX 75080-7415
Steve Timmons (972) 737-5006 X601
PROPERTY
Rentable Area: 73,714 SF
Stories: 6
Floor Size: 12,833 SF
Vacancy at Lease: 13.3%
Land Acres: 4.32
Property Type: Office
Status: Built 1962
Tenancy: Multi
Class: B
Construction: Masonry
Parking: Ratio of 3.00/1,000 SF
MARKET AT LEASE
Vacancy Rates 2018 Q3 YOY
1.5%
0.4%
11.1%Current Building 13.3%
Submarket 2-4 Star
Market Overall 15.0%
15.9%
Same Store Asking Rent/SF 2018 Q3 YOY
1.4%
2.7%
Current Building $16.45
Submarket 2-4 Star
Market Overall $25.45
$23.25
-
Submarket Leasing Activity 2018 Q3 YOY
0.7
50.9%12 Mo. Leased SF 1,992,889
Months On Market 14.1
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Lease Comps Details670 W Arapaho Rd - Building 1
7 1350 E Arapaho Rd - Arapaho Creek OfficeRichardson, TX 75081 - Richardson Submarket
TENANT
Tenant Name: Celebration Group
RENTS
Asking Rent: $9.50/NNN
Starting Rent: $9.50/NNN
CONCESSIONS AND BUILDOUT
Asking Discount: 0.00%
Mo. Free Rents: 0 Months
PROPERTY EXPENSES
Taxes: $1.14/SF (2018)
LEASE
SF Leased: 3,232 SF
Sign Date: Sep 2018
Space Use: Office
Lease Type: Sublease
Floor: 1st Floor
Suite: 128
LEASE TERM
Start Date: Oct 2018
Expiration Date: Oct 2021
Lease Term: 3 Years
TIME VACANT
Date Vacated: Dec 2017
Date Occupied: Oct 2018
Months Vacant: 10 Months
TIME ON MARKET
Date On Market: Oct 2017
Date Off Market: Sep 2018
Months on Market: 12 Months
LEASING REP
GHL Investment LP
2445 McIver Ln, Suite 110
Carrollton, TX 75006-6548
Gary Chiu (972) 807-9516
PROPERTY
Rentable Area: 19,464 SF
Stories: 1
Floor Size: 19,464 SF
Vacancy at Lease: 59.0%
Land Acres: 2.16
Property Type: Office
Status: Built 1982
Tenancy: Multi
Class: B
Construction: Masonry
Parking: 84 free Surface Spa…
MARKET AT LEASE
Vacancy Rates 2018 Q3 YOY
1.5%
0.4%
40.8%Current Building 59.0%
Submarket 2-4 Star
Market Overall 15.0%
15.9%
Same Store Asking Rent/SF 2018 Q3 YOY
1.4%
2.7%
1.7%Current Building $15.80
Submarket 2-4 Star
Market Overall $25.45
$23.25
Submarket Leasing Activity 2018 Q3 YOY
0.7
50.9%12 Mo. Leased SF 1,992,889
Months On Market 14.1
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Lease Comps Details670 W Arapaho Rd - Building 1
8 740 E Campbell Rd - Eastside CentreRichardson, TX 75081 - Richardson Submarket
TENANT
Tenant Name: Advault, Inc.My Directives
Industry: Computers/Data Processing
NAICS: Data Processing, Hosting, and Related Services - 518210
RENTS
Asking Rent: $15.75/+ELEC
Starting Rent: $26.00/+ELEC
CONCESSIONS AND BUILDOUT
Asking Discount: -65.08%
Buildout Status: Full Build-Out
PROPERTY EXPENSES
Taxes: $3.44/SF (2018)
LEASE
SF Leased: 3,564 SF
Sign Date: Aug 2018
Space Use: Office
Lease Type: Direct
Floor: 8th Floor
Suite: 825
LEASE TERM
Start Date: Sep 2018
TIME VACANT
Date Vacated: Dec 2014
Date Occupied: Sep 2018
Months Vacant: 45 Months
TIME ON MARKET
Date On Market: Jan 2015
Date Off Market: Aug 2018
Months on Market: 43 Months
TENANT REP
Laughlin Commercial Realty Group
3838 Oak Lawn Ave, Suite 850
Dallas, TX 75219-4520
Grant Laughlin (214) 526-2626
LEASING REP
Fobare Commercial LP
18111 Preston Rd, Suite 1000
Dallas, TX 75252-5470
Pat Hanahan (972) 458-7585
Rick Currey (972) 458-7585
PROPERTY
Rentable Area: 183,751 SF
Stories: 10
Floor Size: 18,000 SF
Vacancy at Lease: 14.3%
Land Acres: 2.66
Property Type: Office
Status: Built 1986
Tenancy: Multi
Class: A
Construction: Masonry
Parking: Surface Spaces @ $…
MARKET AT LEASE
Vacancy Rates 2018 Q3 YOY
1.6%
0.4%
2.5%Current Building 14.3%
Submarket 3-5 Star
Market Overall 15.0%
16.7%
Same Store Asking Rent/SF 2018 Q3 YOY
1.3%
2.7%
17.6%Current Building $21.17
Submarket 3-5 Star
Market Overall $25.45
$23.86
Submarket Leasing Activity 2018 Q3 YOY
0.7
50.9%12 Mo. Leased SF 1,992,889
Months On Market 14.1
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Lease Comps Details670 W Arapaho Rd - Building 1
4 13140 Coit Rd - Office AlphaDallas, TX 75240 - East LBJ Freeway Submarket
TENANT
Tenant Name: Senior Cares
Industry: Medical
NAICS: Home Health Care Services - 621610
RENTS
Asking Rent: $17.00-$19.00/+ELEC
Effective Rent: $76.80/+ELEC
PROPERTY EXPENSES
Taxes: $1.39/SF (2018)
Operating Exp.: $5.01/SF (2012)
LEASE
SF Leased: 600 SF
Sign Date: Jul 2018
Space Use: Office
Lease Type: Direct
Floor: 3rd Floor
Suite: 366
LEASE TERM
Start Date: Aug 2018
Expiration Date: Jul 2019
Lease Term: 1 Year
TIME VACANT
Date Vacated: Dec 2017
Date Occupied: Aug 2018
Months Vacant: 7 Months
TIME ON MARKET
Date On Market: Nov 2017
Date Off Market: Jul 2018
Months on Market: 9 Months
LEASING REP
Boxer Property
2727 Lyndon B Johnson Fwy, Suite 610
Farmers Branch, TX 75234-7334
Alexander Renwick (214) 974-5032
Mark Dowdle (469) 438-2541
Gloria Medlock (214) 473-5397
PROPERTY
Rentable Area: 101,977 SF
Stories: 5
Floor Size: 20,652 SF
Vacancy at Lease: 11.4%
Land Acres: 3.29
Property Type: Office
Status: Built Jan 1980
Tenancy: Multi
Class: B
Construction: Masonry
Parking: 365 Surface Spaces…
MARKET AT LEASE
Vacancy Rates 2018 Q3 YOY
0.3%
0.4%
2.8%Current Building 11.4%
Submarket 2-4 Star
Market Overall 15.0%
22.1%
Same Store Asking Rent/SF 2018 Q3 YOY
5.1%
2.7%
6.1%Current Building $19.18
Submarket 2-4 Star
Market Overall $25.45
$24.21
Submarket Leasing Activity 2018 Q3 YOY
3.6
3.9%12 Mo. Leased SF 1,701,928
Months On Market 29.6
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670 W Arapaho Rd - Building 1
PREPARED BY
Ed Parrish
Broker
Construction
16,577 SF Office Building
All-Time Annual Avg. SF
413,824Delivered SF Past 4 Qtrs
9,864Delivered SF Next 4 Qtrs
10,000Proposed SF Next 4 Qtrs
58,650PAST 4 QUARTERS DELIVERIES, UNDER CONSTRUCTION, & PROPOSED
PAST & FUTURE DELIVERIES IN SQUARE FEET
Overall Construction Summary670 W Arapaho Rd - Building 1
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Dallas-Fort Worth ConstructionDallas-Fort Worth Office
At the end of 19Q1, 8 million SF was under construction,ranking Dallas-Fort Worth fifth among metros, 100,000SF behind Boston and just 12,000 SF more than Seattle.The market has been inundated with new supply thiscycle, with build-to-suits accounting for the majority ofnew supply earlier this cycle, speculative constructionhas picked up in recent years. In 2015–18, more than26.2 million SF of new office space was delivered, and3.3 million SF of new office product was delivered thefirst half of 2019. Now that the Toyota, Liberty Mutual,and JP Morgan Chase campuses are complete, thesecond round of major build-to suits for AmericanAirlines, Pioneer Natural Resources, and the U.S.Citizenship and Immigration Services are under way.
There are few truly transformative projects in a region,the office tower at 1401 Elm in downtown Dallas iscertainly one. The 1.3-million-SF office tower is beingreimagined by Todd Interests, a developer with a historyof reviving aging structures. The building, which hasstood vacant since 2010, will be reengineered into a
mixed-use tower. The $450 million project is the biggestof its kind to occur in downtown Dallas.
As the office market improved mid-cycle, developersand lenders became more aggressive with speculativedevelopment. The 313,000-SF 3400 CityLine and the307,000-SF One Legacy West both went 100% specwhen they broke ground in 15Q3 and 16Q1, respectively.In Uptown, Harwood International’s No. 10 (231,000-SFtower) was originally going to break ground with 65,000SF of preleasing, but the developer decided to go 100%spec when construction began in September 2016. Andin Frisco, both Hall Park's 17th building (306,000 SF) andFrisco Station's first office tower (238,000 SF) brokeground in 16Q4 on a purely speculative basis. Leasingon many of those projects started off slower than thespec deals earlier this cycle, but activity has picked upover the past few months. Furthermore, speculativegroundbreakings have slowed in recent quarters, whichshould help the new multi-tenant assets lease up.
DELIVERIES & DEMOLITIONS
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Richardson ConstructionRichardson Office
While Richardson has ranked near the top of the metroin terms of new supply this cycle by submarket, themajority of the roughly 4 million SF of office inventoryadded since 2010 was single-tenant build-to-suit spacefor State Farm, Raytheon, and Blue Cross Blue Shield. Alarge chunk of the future pipeline is expected to be build-to-suit-focused as well, with most of the proposedspace in CityLine being marketed for build-to-suitopportunities.
Though the focus has been and likely will continue to beon major build-to-suits, Transwestern Dallas completedthe five-story, 313,000-SF 3400 CityLine in July 2017
as a 100% speculative play. That asset was beingmarketed at $25/SF-$26/SF triple net while it was underconstruction, but asking rates on the property were mostrecently advertised as $23/SF-$23.50/SF triple net.Those rents are less than the asking rents for othernewly delivered spec office buildings in nearby UpperTollway/West Plano like One Legacy West ($30/SF-$32/SF triple net) and 5905 Legacy Drive ($29/SF triplenet). While 3400 CityLine was slow to generate leasingmomentum at first, a slew of leases were signed in early2019, and the asset is now more than 60% accountedfor.
DELIVERIES & DEMOLITIONS
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Richardson ConstructionRichardson Office
All-Time Annual Avg. SF
32,892Delivered SF Past 4 Qtrs
121,802Delivered SF Next 4 Qtrs
10,000Proposed SF Next 4 Qtrs
66,150PAST 4 QUARTERS DELIVERIES, UNDER CONSTRUCTION, & PROPOSED
PAST & FUTURE DELIVERIES IN SQUARE FEET
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Richardson ConstructionRichardson Office
RECENT DELIVERIES
Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner
May-20182006 W Campbell Rd
10,000 1 Apr-2019-
BALDWIN PETER W1
Mar-2017150 Brand Rd
PROFESSIONAL/MEDIC…11,000 1 Feb-2019
-
-2
Dec-2017201 W Kaufman St
9,864 1 Dec-2018-
Zach Binns3
Jan-20177217 W Telecom Pky
North Garland Medical C…90,938 3 Aug-2018
NEP Realty, LLC
NEP Realty, LLC4
UNDER CONSTRUCTION
Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner
May-2019N Plano Rd
N Plano Rd & Arapahoe10,000 1 Nov-2019
-
-1
PROPOSED
Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner
Jun-20193400 Waterview Pky
The Points at Waterview58,650 2 Mar-2020
-
Stanton Road Capital LLC1
Jun-2019NWC Campbell & Shiloh
7,500 1 Dec-2019-
HealthCap Partners2
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UNDER CONSTRUCTION IN SQUARE FEET (3 Mile Radius)
PROJECTED DELIVERIES IN SQUARE FEET (3 Mile Radius)
Construction Activity670 W Arapaho Rd - Building 1
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Construction Activity670 W Arapaho Rd - Building 1
DELIVERIES IN SQUARE FEET (3 Mile Radius)
STARTS IN SQUARE FEET (3 Mile Radius)
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Construction Activity670 W Arapaho Rd - Building 1
PERCENT OCCUPIED AT DELIVERY (3 Mile Radius)
DELIVERIES AND OCCUPANCY IN SQUARE FEET (3 Mile Radius)
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Construction Activity670 W Arapaho Rd - Building 1
NEW CONSTRUCTION OCCUPANCY AFTER DELIVERY BY YEAR BUILT (3 Mile Radius)
NET ABSORPTION IN SQUARE FEET (3 Mile Radius)
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Construction Activity670 W Arapaho Rd - Building 1
GROSS ASKING RENT PER SQUARE FOOT (3 Mile Radius)
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Properties
1Square Feet
10,000Percent of Inventory
0%Preleased
0%UNDER CONSTRUCTION PROPERTIES
UNDER CONSTRUCTION SUMMARY STATISTICS
Low Average Median High
Building SF 10,000 10,000 10,000 10,000
Stories 1 1 1 1
Typical Floor SF 10,000 10,000 10,000 10,000
Preleasing - - - -
Estimated Delivery Date November 2019 November 2019 November 2019 November 2019
Months to Delivery 5 5 5 5
Construction Period in Months 6 6 6 6
Star Rating 3.0
Under Construction Summary670 W Arapaho Rd - Building 1
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Under Construction Summary670 W Arapaho Rd - Building 1
COMPLETIONS 3-6 MONTHS AWAY
Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner
May-2019N Plano Rd
N Plano Rd & Arapahoe10,000 1 Nov-2019
-
-1
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Under Construction Property Details670 W Arapaho Rd - Building 1
1 N Plano Rd @ Arapahoe - N Plano Rd & ArapahoeDistance to Subject Property: 2.6 Miles
AVAILABILITY
Percent Leased: 0%
Available SF: 10,000
Gross Asking Rent: $31.39
PROPERTY
Type: Class B Office
Year Built: Delivers Nov 2019
RBA: 10,000 SF
Core Factor: -
Stories: 1
Typical Floor: 10,000 SF
Parking Spaces: 0.00/1,000 SF
CONSTRUCTION
Start Date: May-2019
Completion Date: Nov-2019
Build Time: 6 Months
Time To Delivery: 5 MonthsCONTACTS
Developer: -
Owner: -
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Properties
1Square Feet
9,864Percent Leased
100%Asking Rent
$20.47COMPLETED CONSTRUCTION PAST 12 MONTHS
CONSTRUCTION SUMMARY STATISTICS
Low Average Median High
RBA 9,864 9,864 9,864 9,864
Stories 1 1 1 1
Typical Floor SF 9,864 9,864 9,864 9,864
Leases Signed - - - -
Percent Leased 100% 100% 100% 100%
Asking Rent $20.47 $20.47 $20.47 $20.47
Star Rating 4.0
Completed Construction Past 12 Months670 W Arapaho Rd - Building 1
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Completed Construction Past 12 Months670 W Arapaho Rd - Building 1
Property Name/Address Rating RBA Stories Complete Leased Developer/Owner
Dec-2018201 W Kaufman St
9,864 1 100%-
Zach Binns1
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Deliveries Past 12 Months670 W Arapaho Rd - Building 1
1 201 W Kaufman StRichardson, TX 75081 - Richardson Submarket
- AVAILABILITY
Percent Leased: 100%
Available SF: -
Asking Rent: $20.47
PROPERTY
Type: Class B Office
Yr Blt/Renov: 2018
Property Size: 9,864 SF
Stories: 1
Typical Floor: 9,864 SF
Distance To Subj… 1.2 Miles
Distance To Transit: 11 Minute Walk
CONSTRUCTION
Start Date: Dec-2017
Completion Date: Dec-2018
Build Time: 12 Months
Time Since Delivery: 6 Months
OWNER
Zach Binns
-
AVAILABLE SPACES
Currently No Available Spaces
-
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670 W Arapaho Rd - Building 1
PREPARED BY
Ed Parrish
Broker
Sale Comps
16,577 SF Office Building
Investment Trends670 W Arapaho Rd - Building 1
Sale Comparables
16Avg. Cap Rate
6.7%Avg. Price/SF
$152Avg. Vacancy At Sale
20.2%SALE COMPARABLE LOCATIONS
SALE COMPARABLES SUMMARY STATISTICS
Sales Attributes Low Average Median High
Sale Price $1,025,915 $2,542,077 $1,975,000 $6,200,000
Price Per SF $80 $152 $116 $420
Cap Rate 6.0% 6.7% 7.1% 7.1%
Time Since Sale in Months 4.3 13.1 12.4 22.6
Property Attributes Low Average Median High
Building SF 8,921 16,744 15,457 32,202
Stories 1 2 1 3
Typical Floor SF 5,228 11,986 11,069 21,316
Vacancy Rate At Sale 0% 20.2% 0% 100%
Year Built 1966 1988 1985 2007
Star Rating 2.6
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Investment Trends670 W Arapaho Rd - Building 1
Property Name - Address Rating Yr Built Bldg SF Vacancy Price Price/SF
Property
Sale Date
Sale
Cap Rate
-1 Keller Way Place1985 32,202 16.1% $2,600,000 $81
2245 Keller Way1/25/2019 -
-2 DaVita1989 22,800 63.9% $2,500,000 $110
9500 N Central Expy12/28/2018 -
-3 Vision Quest Eye Care &…1983 12,860 0% $5,400,000 $420
5421 La Sierra Dr12/11/2018 -
-4 11411 N Central Expy1978 9,738 44.9% $2,000,000 $20511/5/2018 6.0%
-5 13333 N Central Expy1966 10,455 100% $1,325,000 $1279/28/2018 -
-6 777 Centre1984 14,864 0% $2,800,000 $188
777 E 15th St9/28/2018 -
-7 17060 N Dallas Pky1980 28,988 0% $2,900,000 $1008/28/2018 -
-8 997 Raintree Cir2007 21,316 0% $5,000,000 $2357/18/2018 7.1%
-9 1985 Forest Ln1985 17,702 46.3% $1,450,000 $823/28/2018 -
-10 1740 Trinity Valley Dr2000 8,921 0% $1,025,915 $1153/7/2018 -
-11 Phillips Square1984 11,994 0% $1,200,000 $100
351 S Sherman St11/30/2017 -
-12 Walnut Hill Surgery Center2003 16,050 0% $6,200,000 $386
5494 Glen Lakes Dr10/18/2017 -
-13 Bldg 3, Suite 3002004 11,069 66.6% $1,692,316 $153
8000 Warren Pky10/2/2017 -
-14 Building B62005 16,800 0% $1,950,000 $116
3304 Essex Dr9/11/2017 -
-15 14350 Proton Rd1973 18,312 0% $1,520,000 $838/31/2017 -
-16 One Broadway Place1975 13,829 27.9% $1,110,000 $80
2910 Broadway Blvd7/17/2017 7.1%
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Investment Trends670 W Arapaho Rd - Building 1
DALLAS-FORT WORTH INVESTMENT TRENDS
With pricing in core coastal markets such as Boston,New York and San Francisco rising over the past fewyears, institutional investors have increasingly turned toless expensive secondary markets in search of betteryields. This continuing shift of capital has driven uppricing in the metroplex and in some cases set records.For example, in Uptown/Turtle Creek, 2000 McKinneytraded in August 2016 for $226 million ($504/SF) toUnion Investment, a Germany-based fund manager.While the pricing and the 4.8% cap rate on the deal werehead-turning by D-FW standards, the trade representeda relative bargain compared to the price of similar assetsin core office markets. In another major trade in Uptown,Dallas-based Gaedeke Group bought the 369,000-SF17Seventeen McKinney in September 2016 forapproximately $190 million ($517/SF). Those dealsrepresented the top of the market until 1900 Pearlreportedly sold for close to $700/SF in April 2019.
Lately, more major sales have involved older buildings incore urban submarkets or newer, well-leased propertiesin top tier suburban submarkets with pricing ranging from$300/SF to $400/SF on both types of assets. InUptown/Turtle Creek, the 1970s-era, 143,000-SF TurtleCreek Tower sold in February 2018 for $46 million
($322/SF) after previously changing hands in late 2014for $26.6 million ($186/SF). Also in Uptown/Turtle Creek,The Centrum, a two-building, 508,500-SF complex, soldfor $174 million ($342/SF), and the 145,600-SF 3131McKinney traded for $47.75 million ($328/SF) at a 4.5%cap rate after selling in 2014 for $38.8 million ($266/SF).The Centrum and 3131 McKinney both sold in 18Q2, andall three assets were around 75% leased at the time oftheir respective sales.
In terms of major suburban sales, Fannie Mae's new324,100-SF campus at Granite Park sold in September2018 for $163 million. That pricing, $503/SF, is a recordfor suburban deals in D-FW. The buyer was UnionInvestment, the same firm that picked up 2000 McKinneyin 2016. One of the largest deals in 2017 involved 5851Legacy Circle, a fully leased 319,000-SF asset in theUpper Tollway/West Plano Submarket that sold in Junefor $123.3 million ($387/SF). The buyer was Dallas-based TIER REIT, and the deal came with theassumption of $66 million in debt at a 4.24% interestrate. The property was originally a build-to-suit forEncana Oil & Gas, which vacated the entire building afterrestructuring its business operations in 2014.
SALES VOLUME & MARKET SALE PRICE PER SF
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Investment Trends670 W Arapaho Rd - Building 1
RICHARDSON INVESTMENT TRENDS
Well-leased, multi-tenant assets in Richardson come ata discount to properties in permier suburban submarketslike Upper Tollway/West Plano and Frisco/The Colony.For example, the 202,700-SF Points at Waterview soldin December 2018 for $31.9 million ($157/SF). Theproperty was previously sold in 2015 for $26.8 million($132/SF). The asset typically maintains occupancyaround 90% and is asking $25-26/SF plus electric on itsavailable space.
Richardson was one of the most actively tradedsubmarkets in the metroplex early this cycle. Inventoryturnover averaged nearly 14% from 2013-16, driven by
major sales of entire office campuses. The largest dealhere this cycle was the sale leaseback of the State Farmcampus in CityLine. That four-building property, totaling2.1 million SF (all leased to State Farm), was acquired inOctober 2016 by a joint venture of TranswesternInvestment Group and Mirae Asset Global Investments, aKorea-based firm. The campus reportedly traded for$773 million (about $400/SF) at a 5.74% cap rate, whichis closer to prices in Uptown/Turtle Creek than a typicalsuburban transaction. At the time, the deal was thebiggest single-tenant real estate transaction in thehistory of the D-FW metro.
SALES VOLUME & MARKET SALE PRICE PER SF
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Sale Comps Details670 W Arapaho Rd - Building 1
1 2245 Keller Way - Keller Way PlaceDistance to Subject Property: 6.2 Miles
PROPERTY
Type: Class B Office
Yr Blt/Renov: 1985; Renov 2005
RBA: 32,202 SF
Core Factor: 12.5%
Stories: 3
Typical Floor: 10,734 SF
Vacancy At S… 16.1%
Parking: 102: 3.17/1,000 SF
SALE
Sale Type: Investment
Sale Date: 1/25/2019
Time On Mar… 1 Yr 4 Mos
Sale Price: $2,600,000
Price/SF: $81
CONTACTS
Buyer: American Real Estate I…
Seller: Prem Cap, LTD
Listing Broker: Y+A REAL ESTATE & A…
SALE TERMS
Financing: 1st Mortgage Bal/P…
TRANSACTION NOTES
On January 25, 2019, the 32,202 sqaure foot office property located at 2245 Keller Way sold for $2,600,000 or $80.74 per square foot.
The property is 3 stories, built in 1985 and went through a renovation in 2005. The property was owned by Prem Cap, LTD and purchased byAmerican Real Estate Investments. The property was marketed by Progressive Realty Advisors, but the deal was completed for the seller by Y + AReal Estate Ass Management. The owner confirmed the closing date and no sale conditions were noted. Progressive Realty Advisors confirmed theclosing price, size, and purchaser. Progressive Realty Advisors is in talks to continue leasing the property for the new landlord.
2 9500 N Central Expy - DaVitaDistance to Subject Property: 6.1 Miles
PROPERTY
Type: Class C Office
Yr Blt/Renov: 1989
RBA: 22,800 SF
Stories: 1
Typical Floor: 22,800 SF
Vacancy At S… 63.9%
Parking: 119: 4.55/1,000 SF
SALE
Sale Type: Investment
Sale Date: 12/28/2018
Sale Price: $2,500,000
Price/SF: $110
CONTACTS
Buyer: Robert Hoodis
Seller: Lacerte Technologies, I…
-
TRANSACTION NOTES
The 22,800 sqaure foot office building located at 9500 North Central Expressway in Dallas, Texas, was sold on December 28, 2018. The building wassold in an off market transaction and was 50% occupied. A cap rate was not provided, but per sources deemed reliable the building sold forapproximately $2,500,000. The building was occupied by a dialysis center at the time of the sale. This information was confirmed and provided in partvia public record, as well as sources deemed reliable.
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Sale Comps Details670 W Arapaho Rd - Building 1
3 5421 La Sierra Dr - Vision Quest Eye Care & Surgery CenterDistance to Subject Property: 5.7 Miles
PROPERTY
Type: Class C Office
Yr Blt/Renov: 1983
RBA: 12,860 SF
Stories: 1
Typical Floor: 12,860 SF
Vacancy At S… 0%
Parking: 3.16/1,000 SF
SALE
Sale Type: Investment
Sale Date: 12/11/2018
Sale Price: $5,400,000
Price/SF: $420
CONTACTS
Buyer: Essential Properties, L.P.
Seller: VisionQuest
Listing Broker: Brown Gibbons Lang &…
SALE TERMS
Sale Conditio… Sale Leaseback
TRANSACTION NOTES
On December 11th, 2018, this 12,680-square-foot office/medical building sold from Dr. Wesley Herman at VisionQuest to SCF Realty Capital in whatwas likely a sale leaseback transaction.
The deal was confirmed by listing brokers Michael Peel and Clinton Parker of Browns Gibbon Lang, who were able to disclose the price of thetransaction, though were unable to speak to the specific financials such as the cap rate and sale conditions.
SCF was not at liberty to comment on the acquisition whatsoever.
4 11411 N Central ExpyDistance to Subject Property: 4.5 Miles
PROPERTY
Type: Class C Office
Yr Blt/Renov: 1978
RBA: 9,738 SF
Stories: 1
Typical Floor: 9,738 SF
Vacancy At S… 44.9%
Parking: 4.00/1,000 SF
SALE
Sale Type: Investment
Sale Date: 11/5/2018
Sale Price: $2,000,000
Price/SF: $205
Cap Rate: 6.0%
CONTACTS
Buyer: Weitzman
Seller: Karkaw Hills Llc, Rosen…
SALE TERMS
Sale Conditio… Deferred Maintenance
TRANSACTION NOTES
On November 5th, 2018, this 9,738 Square foot office building sold from Sheldon Rosenberg of Rosenberg Brothers Investments to The WeitzmanGroup for an approximate price of $2,000,000. This property was under contract for about 40-45 days and was about 50% occupied at the time ofsale. There was one sale condition involved which was some deferred maintenance as The Weitzman Group will need to handle a roof replacementproject.
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Sale Comps Details670 W Arapaho Rd - Building 1
5 13333 N Central ExpyDistance to Subject Property: 2.5 Miles
PROPERTY
Type: Class C Office
Yr Blt/Renov: 1966
RBA: 10,455 SF
Core Factor: 5%
Stories: 2
Typical Floor: 5,227 SF
Vacancy At S… 100%
Parking: 29: 2.77/1,000 SF
SALE
Sale Type: Investment
Sale Date: 9/28/2018
Sale Price: $1,325,000
Price/SF: $127
CONTACTS
Buyer: Quire Capital
Seller: Kim Vu
Listing Broker: Bobby C Hempkins & A…
SALE TERMS
Sale Conditio… High Vacancy Prope…
TRANSACTION NOTES
The subject property located at 13333 North Central Expressway sold on September 28, 2018. Kp Re Investments, LLC sold the 10,455 square footoffice building to 13333 NCXY LLC for $1,325,000 or about $126.73 per square foot.
Bobby Hempkins of Bobby C Hempkins & Associates represented the seller while the buyer was represented in-house.
The property was 100% vacant at the time of sale and the buyer immediately put the property back on the market for sale.
6 777 E 15th St - 777 CentreDistance to Subject Property: 4.5 Miles
PROPERTY
Type: Class B Office
Yr Blt/Renov: 1984
RBA: 14,864 SF
Stories: 2
Typical Floor: 7,432 SF
Vacancy At S… 0%
Parking: 50: 3.36/1,000 SF
SALE
Sale Type: Owner User
Sale Date: 9/28/2018
Time On Mar… 133 Days
Sale Price: $2,800,000
Price/SF: $188
CONTACTS
Buyer: The City of Plano
Seller: Gay, McCall, Isaacks, G…
Listing Broker: Fairway Group Real Est…
SALE TERMS
Sale Conditio… Deferred Maintenance
TRANSACTION NOTES
This 14,864 SF office building sold for $2,800,000 on 9/28/2018. It was sold with deferred maintenance to the City of Plano and will be occupied by agovernment department. The details of this transaction were confirmed by sources deemed reliable.
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Sale Comps Details670 W Arapaho Rd - Building 1
7 17060 N Dallas PkyDistance to Subject Property: 5.1 Miles
PROPERTY
Type: Class B Office
Yr Blt/Renov: 1980
RBA: 28,988 SF
Core Factor: 12%
Stories: 2
Typical Floor: 14,494 SF
Vacancy At S… 0%
Parking: 108: 3.73/1,000 SF
SALE
Sale Type: Investment
Sale Date: 8/28/2018
Sale Price: $2,900,000
Price/SF: $100
CONTACTS
Buyer: North Texas Therapy &…
Seller: Inroads Realty
Buyer Broker: Rubicon Representatio…
Listing Broker: Inroads Realty - Michae…
-
TRANSACTION NOTES
On 8/28/2018, the 29,988 square-foot office property at 17060 N Dallas Pkwy, Dallas, TX 75248 was sold for $2,900,000 pending variables such asHVAC replacement and new roofing. The office building boasted around 85% occupancy at the time of sale, with the buyer, Crosscourt Capital inconjunctuon with North Texas Therapy & Home Care planning on occupying around 4,000 square feet and leasing the rest.
The buyer was driven to acquire the asset due to its size and location desirability, accompanied by its features including frontage and signage alongthe toll road, while the seller chose to divest the asset given the buyer's offer, figured it was a good time to sell.
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Sale Comps Details670 W Arapaho Rd - Building 1
8 997 Raintree CirDistance to Subject Property: 10.9 Miles
PROPERTY
Type: Class B Office
Yr Blt/Renov: 2007
RBA: 21,316 SF
Stories: 1
Typical Floor: 21,316 SF
Vacancy At S… 0%
Parking: 76: 3.57/1,000 SF
SALE
Sale Type: Investment
Sale Date: 7/18/2018
Sale Price: $5,000,000
Price/SF: $235
Cap Rate: 7.1%
CONTACTS
Buyer: Ridgeline Capital Partn…
Seller: Brian Joe
Listing Broker: Wynmark Commercial -…
SALE TERMS
Financing: 1st Mortgage: Ameri…
TRANSACTION NOTES
On 7/18/18, the 21,464 square foot office building at 997 Raintree Circle in Allen, Texas, was sold for $5,000,000, or $232 per square foot. The ClassB office-medical building, known as Allen Medical Pavilion, was built in 2007 and houses multiple healthcare companies.
Mark Pittman and Nathan England at Wynmark Commercial represented the seller, Jsw Partners. The buyer, Ridgeline Allen Moc LLC, had financingand did not have a broker. The property was under contract for 60 days.
The seller and buyer confirmed the transaction.
9 1985 Forest LnDistance to Subject Property: 6.2 Miles
PROPERTY
Type: Class B Office
Yr Blt/Renov: 1985
RBA: 17,702 SF
Stories: 2
Typical Floor: 8,851 SF
Vacancy At S… 46.3%
Parking: 57: 3.22/1,000 SF
SALE
Sale Type: Owner User
Sale Date: 3/28/2018
Time On Mar… 216 Days
Sale Price: $1,450,000
Price/SF: $82
CONTACTS
Buyer: Kirk Willis
Seller: Michael Baker
Buyer Broker: Moulty - Henderson Re…
Listing Broker: Lee & Associates - Bret…
SALE TERMS
Financing: 1st Mortgage: Seaco…
TRANSACTION NOTES
1985 Forest Ln sold for $1.45M on March 28th 2018. The listing has been on the market for 7 months, escrow for 90 days, no sale conditions. Theproperty was 50% occupied by the seller at time of sale, and new owner will occupy entire building around June 1st 2018.
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Sale Comps Details670 W Arapaho Rd - Building 1
10 1740 Trinity Valley DrDistance to Subject Property: 11.2 Miles
PROPERTY
Type: Class B Office
Yr Blt/Renov: 2000
RBA: 8,921 SF
Stories: 1
Typical Floor: 8,921 SF
Vacancy At S… 0%
Parking: 48: 6.11/1,000 SF
SALE
Sale Type: Owner User
Sale Date: 3/7/2018
Sale Price: $1,025,915
Price/SF: $115
CONTACTS
Buyer: ElectraSales.Net
Seller: Contemporary Contract…
Buyer Broker: KW Commercial - Jeffre…
Listing Broker: NAI Robert Lynn - Patri…
SALE TERMS
Financing: 1st Mortgage: Verite…
TRANSACTION NOTES
This recording is for the sale of a 8,921 SF office building. The property was vacant at the time of sale with the previous occupant moving out whenthe property went on the market earlier in the year. Reportedly the buyer will occupy the property.
11 351 S Sherman St - Phillips SquareDistance to Subject Property: 1.3 Miles
PROPERTY
Type: Class C Office
Yr Blt/Renov: 1984
RBA: 11,994 SF
Stories: 1
Typical Floor: 11,994 SF
Vacancy At S… 0%
Parking: 58: 6.01/1,000 SF
SALE
Sale Type: Owner User
Sale Date: 11/30/2017
Time On Mar… 295 Days
Sale Price: $1,200,000
Price/SF: $100
CONTACTS
Buyer: Iglesia Evangelica Alph…
Seller: Valquest, Inc.
Listing Broker: NAI Robert Lynn - Mark…
-
TRANSACTION NOTES
The listing broker confirmed the price and size. There were no conditions. Both the buyer and seller acknowledged the sale, but did not comment onthe transaction. The 11,994 sf office building sold for $100.05 per sf.
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Sale Comps Details670 W Arapaho Rd - Building 1
12 5494 Glen Lakes Dr - Walnut Hill Surgery CenterDistance to Subject Property: 5.7 Miles
PROPERTY
Type: Class B Office
Yr Blt/Renov: 2003
RBA: 16,050 SF
Stories: 2
Typical Floor: 8,025 SF
Vacancy At S… 0%
Parking: 30: 1.66/1,000 SF
SALE
Sale Type: Investment
Sale Date: 10/18/2017
Sale Price: $6,200,000
Price/SF: $386
CONTACTS
Buyer: Inland Private Capital C…
Seller: Dallas Eye Care Associ…
Buyer Broker: Brown Gibbons Lang &…
Listing Broker: Brown Gibbons Lang &…
SALE TERMS
Sale Conditio… Sale Leaseback, Inv…
TRANSACTION NOTES
5494 Glen Lakes Dr sold on October 18th 2017. The property is 16,050 square feet, built in 2003, zoned Z163, and sits on .58 acres of land. Thetransaction represents a sale leaseback for the seller.
13 8000 Warren Pky - Bldg 3, Suite 300Distance to Subject Property: 10.9 Miles
PROPERTY
Type: Class C Office
Yr Blt/Renov: 2004
RBA: 11,069 SF
Stories: 1
Typical Floor: 11,069 SF
Vacancy At S… 66.6%
Parking: 3.00/1,000 SF
SALE
Sale Type: Owner User
Sale Date: 10/2/2017
Time On Mar… 132 Days
Sale Price: $1,692,316
Price/SF: $153
CONTACTS
Buyer: Red Stone Resources L…
Seller: Sarpira LP
Listing Broker: Century 21 Judge Fite…
-
TRANSACTION NOTES
The information in this comp is based on public records.
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Sale Comps Details670 W Arapaho Rd - Building 1
14 3304 Essex Dr - Building B6Distance to Subject Property: 5.4 Miles
PROPERTY
Type: Class B Office
Yr Blt/Renov: 2005
RBA: 16,800 SF
Stories: 1
Typical Floor: 16,800 SF
Vacancy At S… 0%
Parking: 75: 4.00/1,000 SF
SALE
Sale Type: Owner User
Sale Date: 9/11/2017
Time On Mar… 167 Days
Sale Price: $1,950,000
Price/SF: $116
CONTACTS
Buyer: Ampex Brands LLC, Taj…
Seller: RightNow Media
Buyer Broker: Beam Real Estate, LLC…
Listing Broker: Bradford Companies -…
SALE TERMS
Financing: 1st Mortgage: Bank…
15 14350 Proton RdDistance to Subject Property: 5.6 Miles
SALE
Sale Type: Owner User
Sale Date: 8/31/2017
Time On Mar… 3 Yrs 1 Mo
Sale Price: $1,520,000
Price/SF: $83
PROPERTY
Type: Class C Office
Yr Blt/Renov: 1973
RBA: 18,312 SF
Stories: 1
Typical Floor: 18,312 SF
Vacancy At S… 0%
Parking: 103: 5.00/1,000 SFSALE TERMS
Sale Conditio… Deferred Maintenan…
Financing: 1st Mortgage Bal/P… CONTACTS
Buyer: United Renovations
Seller: Employer's Comp Asso…
Buyer Broker: Dallas Realty Advisors…
Listing Broker: Swearingen Realty Gro…
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Sale Comps Details670 W Arapaho Rd - Building 1
16 2910 Broadway Blvd - One Broadway PlaceDistance to Subject Property: 8.9 Miles
SALE
Sale Type: Investment
Sale Date: 7/17/2017
Time On Mar… 60 Days
Sale Price: $1,110,000
Price/SF: $80
Cap Rate: 7.1%
PROPERTY
Type: Class B Office
Yr Blt/Renov: 1975
RBA: 13,829 SF
Stories: 2
Typical Floor: 6,914 SF
Vacancy At S… 27.9%
Parking: 90: 7.23/1,000 SF
-
CONTACTS
Buyer: Huy Nguyen
Seller: Youngdo Won & Sangn…
Buyer Broker: Regal Realtors - Leight…
Listing Broker: RE/MAX DFW Associat…
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Sales Volume670 W Arapaho Rd - Building 1
RICHARDSON SUBMARKET SALES VOLUME IN SQUARE FEET
RICHARDSON/PLANO SUBMARKET CLUSTER SALES VOLUME IN SQUARE FEET
DALLAS-FORT WORTH METRO SALES VOLUME IN SQUARE FEET
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Sales Pricing670 W Arapaho Rd - Building 1
NATIONAL PRICE INDICES
REGIONAL OFFICE PRICE INDICES
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Sales Pricing670 W Arapaho Rd - Building 1
PRICE PER SF INDEX
UNITED STATES OFFICE PRICE PER SF IN PAST YEAR DALLAS-FORT WORTH OFFICE PRICE PER SF IN PAST YEAR
PRICE PER SF SUMMARY OF SALES IN PAST YEAR
Geography HighTop 25%AverageMedianBottom 25%LowTransactions
$28,525United States 21,004 $0.02 $42 $124 $237 $430
$700Dallas-Fort Worth 176 $29 $79 $167 $199 $350
$372Richardson/Plano 26 $51 $111 $169 $201 $277
$180Richardson 9 $85 $102 $142 $135 $162
$420Selected Sale Comps 8 $81 $90 $158 $160 $327
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Cap Rates670 W Arapaho Rd - Building 1
CAP RATE TRENDS
UNITED STATES OFFICE CAP RATES IN PAST YEAR DALLAS-FORT WORTH OFFICE CAP RATES IN PAST YEAR
CAP RATE SUMMARY OF SALES IN PAST YEAR
Geography HighTop 25%AverageMedianBottom 25%LowTransactions
28.9%United States 3,783 0.9% 5.2% 7.3% 7.5% 10.0%
13.4%Dallas-Fort Worth 60 4.9% 6.3% 7.5% 7.5% 9.0%
8.0%Richardson/Plano 14 6.5% 6.7% 7.3% 7.2% 7.6%
7.3%Richardson 2 7.3% N/A 7.3% 7.3% N/A
7.1%Selected Sale Comps 2 6.0% N/A 6.5% 6.5% N/A
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Buyers670 W Arapaho Rd - Building 1
TOP DALLAS-FORT WORTH OFFICE BUYERS PAST TWO YEARS
Purchased at least one asset in Richardson submarket
Properties Bought
Company Name Bldgs VolumeSF
Properties Sold
SF BldgsVolume
Equinix, Inc. 1 1,600,000 $800,000,000 0 0 -
Highland Capital Management 2 2,937,725 $327,540,050 0 0 -
State Teachers Retirement System of Ohio 2 404,374 $229,070,000 0 0 -
Davidson Kempner Capital Management LP 4 836,542 $179,758,794 0 0 -
Oaktree Capital Management, L.P. 2 508,536 $174,000,000 0 0 -
Dundon Capital Partners 1 965,800 $166,000,000 0 0 -
Woods Capital Property Management, LLC. 2 985,800 $166,000,000 0 0 -
Union Investment Real Estate GmbH 1 324,010 $160,910,000 0 0 -
TIER REIT, Inc. 1 318,582 $123,300,000 2 133,246 $12,700,000
CBRE Global Investors Ltd 2 533,952 $120,500,000 0 0 -
Temple View 3 486,323 $118,000,001 0 0 -
TerraCap Management, LLC 3 581,395 $98,400,000 0 0 -
Equus Capital Partners, Ltd. 2 518,605 $96,800,000 0 0 -
MB Real Estate Services Inc. 4 413,850 $96,000,000 0 0 -
Wolverine Interests 5 725,868 $91,900,000 0 0 -
CIM Group LP 1 227,258 $91,422,005 0 0 -
Hertz Investment Group 1 409,977 $86,000,000 0 0 -
KBS Realty Advisors 2 445,314 $83,400,000 0 0 -
AXA Investment Managers 1 264,000 $79,650,000 0 0 -
PRP Real Estate Investment Management 1 264,000 $79,650,000 0 0 -
Stanton Road Capital LLC 2 840,198 $73,500,000 2 361,423 $61,800,000
Rockefeller Group 1 188,920 $68,500,000 0 0 -
ATCAP Partners 3 503,110 $66,100,000 0 0 -
GLL Real Estate Partners GmbH 1 204,000 $61,200,000 0 0 -
JMC Holdings, LLC 1 409,544 $60,500,000 0 0 -
TYPES OF OFFICE DALLAS-FORT WORTH BUYERS PAST TWO YEARS
Company Type Bldgs Billions Avg PricePrice/SF
Average Purchase
SF
Buying Volume
Institutional 60 10,954,775 $185 $33,943,056$2
Private 222 13,127,563 $126 $7,498,831$1.7
REIT/Public 21 3,177,068 $320 $48,487,519$1
Private Equity 18 3,465,884 $163 $31,451,398$0.6
User 39 1,603,255 $148 $6,119,268$0.2
$0 $0.6 $1.2 $1.8 $2.4
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Sellers670 W Arapaho Rd - Building 1
TOP DALLAS-FORT WORTH OFFICE SELLERS PAST TWO YEARS
Sold at least one asset in Richardson submarket
Properties Sold
Company Name Bldgs VolumeSF
Properties Bought
SF BldgsVolume
B. F. Saul Company 1 1,600,000 $800,000,000 0 0 -
Angelo, Gordon & Co. 5 2,167,737 $427,240,050 0 0 -
Lincoln Property Company 6 865,123 $313,533,305 3 158,246 $12,700,000
Quadrant Investment Properties 4 681,651 $204,700,000 0 0 -
Parmenter, LLC 1 1,350,267 $202,540,050 0 0 -
KDC Real Estate Development & Investments 5 1,850,323 $197,650,001 0 0 -
Goldman, Sachs & Company 1 261,400 $183,000,000 0 0 -
Lexington Realty Trust 4 836,542 $179,758,794 0 0 -
Icahn Enterprises L.P. 1 965,800 $166,000,000 0 0 -
Granite Properties, Inc. 6 1,812,227 $160,910,000 0 0 -
DXC Technology 3 4,762,374 $125,000,000 0 0 -
VEREIT Real Estate L.P. 2 323,292 $124,095,000 0 0 -
MassMutual 1 508,102 $120,500,000 0 0 -
Griffin Partners, Inc. 4 676,477 $110,700,000 0 0 -
USAA 2 334,371 $100,311,300 0 0 -
Tibeir GSA & Investment Trust 1 224,000 $96,000,000 0 0 -
Stockbridge Capital Group LLC 3 619,298 $94,500,000 0 0 -
Cardinal Capital Partners, Inc. 2 239,537 $87,570,000 0 0 -
Hines 1 409,977 $86,000,000 0 0 -
Brookwood Financial Partners LLC 2 445,314 $83,400,000 0 0 -
Artemis Real Estate Partners 2 374,983 $78,400,000 1 130,371 $39,111,300
Heitman LLC 2 208,927 $77,469,536 0 0 -
EY Ventures, LLC 6 802,244 $75,730,000 3 381,404 $4,070,000
JP Realty Partners 2 660,679 $73,500,000 2 498,707 $49,525,000
Karns Commercial Real Estate 2 192,536 $66,000,000 0 0 -
TYPES OF OFFICE DALLAS-FORT WORTH SELLERS PAST TWO YEARS
Company Type Bldgs Billions Avg PricePrice/SF
Average Sale
SF
Selling Volume
Private 249 19,824,600 $165 $13,180,684$3.3
Institutional 73 10,571,577 $195 $28,250,347$2.1
REIT/Public 12 2,550,186 $200 $42,577,386$0.5
User 58 7,050,144 $41 $5,094,392$0.3
Private Equity 4 660,307 $195 $32,353,072$0.1
$0 $0.9 $1.8 $2.7 $3.6
6/5/2019Copyrighted report licensed to Dumbbell Properties - 533152.
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670 W Arapaho Rd - Building 1
PREPARED BY
Ed Parrish
Broker
Demographics
16,577 SF Office Building
Demographic Overview670 W Arapaho Rd
Population (1 mi)
12,894Avg. HH Size (1 mi)
2.2Avg. Age (1 mi)
41Med. HH Inc. (1 mi)
$62,426DEMOGRAPHIC RADIUS RINGS
DEMOGRAPHIC SUMMARY
5 Mile3 Mile1 MilePopulation
416,932127,07512,8942019 Population
450,778135,57713,6242024 Population
8.1%6.7%5.7%Pop Growth 2019-2024
3837412019 Average Age
Households
169,99249,2045,5602019 Households
183,11452,3755,8732024 Households
7.7%6.4%5.6%Household Growth 2019-2024
$61,996$63,195$62,426Median Household Income
2.32.52.2Average Household Size
222Average HH Vehicles
Housing
$253,758$252,684$191,697Median Home Value
198419781966Median Year Built
6/5/2019Copyrighted report licensed to Dumbbell Properties - 533152.
Page 88
670 W Arapaho Rd - Building 1
PREPARED BY
Ed Parrish
Broker
Appendix
16,577 SF Office Building
Historical Leasing Data670 W Arapaho Rd - Building 1
PEERS HISTORICAL LEASING DATA
Available Space Gross Direct Asking Rent
Quarter AvailabilitySF Vacancy Direct Net Absorption SFRent Growth Leasing SF
Demand
QTD 17.7% 15.9% $20.08 0.0% 5,738 2,69669,778
2019 Q1 18.1% 17.4% $20.08 -1.6% 1,520 8,22671,485
2018 Q4 19.7% 17.8% $20.41 2.6% 9,798 6,21677,730
2018 Q3 18.9% 20.2% $19.90 0.6% 10,320 9,16074,683
2018 Q2 19.7% 22.8% $19.79 2.1% 5,195 22,94477,996
2018 Q1 23.8% 24.2% $19.38 10.2% 10,454 7,84093,898
2017 Q4 26.9% 26.8% $17.58 -0.1% (13,545) 2,108106,084
2017 Q3 25.8% 23.4% $17.60 0.6% (12,033) 11,558102,013
2017 Q2 22.1% 20.3% $17.50 0.9% 1,472 10,49087,370
2017 Q1 21.4% 20.7% $17.34 -1.7% (2,306) 7,44784,681
2016 Q4 20.9% 20.1% $17.64 0.1% (5,521) 6,97182,353
2016 Q3 18.8% 18.7% $17.62 2.0% (22) 15,43174,364
RICHARDSON SUBMARKET HISTORICAL LEASING DATA
Available Space Gross Direct Asking Rent
Quarter AvailabilitySF Vacancy Direct Net Absorption SFRent Growth Leasing SF
Demand
QTD 17.9% 16.0% $23.55 -1.5% 114,891 106,0644,146,086
2019 Q1 17.7% 16.4% $23.90 0.4% (33,417) 458,4144,100,808
2018 Q4 18.4% 16.2% $23.80 2.8% (76,604) 1,047,2214,260,286
2018 Q3 18.5% 15.9% $23.15 -1.7% 96,961 531,7994,264,760
2018 Q2 20.0% 16.0% $23.55 -0.5% 17,073 624,4334,616,731
2018 Q1 19.5% 16.0% $23.66 0.0% (51,214) 412,7644,508,054
2017 Q4 20.0% 15.8% $23.66 0.6% 360,060 440,3184,610,102
2017 Q3 20.2% 17.4% $23.51 1.2% 140,366 515,3744,662,206
2017 Q2 21.0% 16.8% $23.23 -0.5% 128,909 288,6864,852,133
2017 Q1 22.2% 17.1% $23.34 2.6% (112,271) 266,9205,124,118
2016 Q4 21.7% 16.5% $22.74 1.7% (95,448) 406,0314,995,773
2016 Q3 22.0% 15.7% $22.36 2.2% 1,014,887 359,0465,050,716
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Historical Leasing Data670 W Arapaho Rd - Building 1
RICHARDSON/PLANO SUBMARKET CLUSTER HISTORICAL LEASING DATA
Available Space Gross Direct Asking Rent
Quarter AvailabilitySF Vacancy Direct Net Absorption SFRent Growth Leasing SF
Demand
QTD 17.9% 14.9% $24.73 -1.1% 327,056 245,3607,965,738
2019 Q1 17.7% 15.2% $25.01 0.0% 305,292 592,4217,808,626
2018 Q4 17.0% 15.7% $25.01 1.5% (17,628) 2,471,6837,485,301
2018 Q3 18.3% 15.6% $24.65 -0.3% (46,902) 758,3798,066,405
2018 Q2 18.9% 15.2% $24.72 0.1% 112,385 1,127,3178,313,613
2018 Q1 17.8% 15.1% $24.69 1.1% 214,592 704,6627,800,851
2017 Q4 18.2% 15.3% $24.43 0.8% 582,586 660,8087,942,168
2017 Q3 18.1% 15.5% $24.22 0.8% 299,201 772,5587,888,414
2017 Q2 19.6% 15.2% $24.04 0.4% 169,964 655,9388,522,160
2017 Q1 20.3% 15.4% $23.94 2.6% (120,174) 563,6178,796,601
2016 Q4 20.1% 14.8% $23.33 1.4% (154,309) 631,8278,672,135
2016 Q3 20.4% 13.9% $23.01 1.7% 1,086,323 609,2658,758,259
DALLAS-FORT WORTH METRO HISTORICAL LEASING DATA
Available Space Gross Direct Asking Rent
Quarter AvailabilitySF Vacancy Direct Net Absorption SFRent Growth Leasing SF
Demand
QTD 18.2% 14.9% $26.09 0.3% 1,036,372 3,241,15872,160,084
2019 Q1 18.1% 14.8% $26.01 0.9% 1,515,339 5,165,29971,457,629
2018 Q4 18.2% 14.9% $25.77 0.2% 829,502 8,465,58571,779,998
2018 Q3 17.9% 14.9% $25.71 0.7% 1,457,638 6,781,56970,196,901
2018 Q2 18.0% 15.1% $25.52 1.2% 657,144 7,862,83670,398,833
2018 Q1 17.9% 14.8% $25.22 0.9% 2,070,632 6,040,69169,771,640
2017 Q4 17.8% 14.7% $24.99 0.3% 1,978,633 5,907,53269,164,281
2017 Q3 17.6% 14.5% $24.90 1.3% 1,377,467 5,613,87368,568,004
2017 Q2 18.1% 14.5% $24.57 1.1% 2,134,702 5,811,09269,491,734
2017 Q1 17.7% 14.4% $24.31 1.5% 724,323 6,183,24368,154,564
2016 Q4 17.1% 14.0% $23.96 0.8% 914,771 6,296,44165,421,883
2016 Q3 17.3% 14.0% $23.77 0.8% 1,985,519 6,276,13066,087,242
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Historical Construction Data670 W Arapaho Rd - Building 1
3 MILE RADIUS HISTORICAL CONSTRUCTION DATA
Bldgs Bldg SF Vacancy Bldgs Bldg SF Leased
Inventory Deliveries
Quarter
Under Construction
Bldg SFBldgs Preleased
QTD 20,736,648 17.7% 0 0 0.0%337 1 10,000 0.0%
2019 Q1 20,736,648 17.5% 0 0 0.0%337 0 0 0.0%
2018 Q4 20,736,648 17.4% 1 9,864 79.7%337 0 0 0.0%
2018 Q3 20,726,784 17.0% 0 0 0.0%336 1 9,864 100%
2018 Q2 20,726,784 16.5% 0 0 0.0%336 1 9,864 100%
2018 Q1 20,726,784 16.5% 0 0 0.0%336 1 9,864 100%
2017 Q4 20,726,784 16.3% 1 251,347 0.0%336 1 9,864 100%
2017 Q3 20,475,437 16.8% 0 0 0.0%335 1 251,347 0.0%
2017 Q2 20,475,437 17.3% 2 58,546 0.0%335 1 251,347 0.0%
2017 Q1 20,416,891 17.6% 0 0 0.0%333 3 309,893 18.9%
2016 Q4 20,416,891 16.7% 0 0 0.0%333 3 309,893 18.9%
2016 Q3 20,416,891 16.0% 0 0 0.0%333 2 268,947 6.5%
RICHARDSON SUBMARKET HISTORICAL CONSTRUCTION DATA
Bldgs Bldg SF Vacancy Bldgs Bldg SF Leased
Inventory Deliveries
Quarter
Under Construction
Bldg SFBldgs Preleased
QTD 23,112,705 16.0% 1 10,000 77.0%402 1 10,000 0.0%
2019 Q1 23,102,705 16.4% 1 11,000 1.8%401 1 10,000 100%
2018 Q4 23,091,705 16.2% 1 9,864 79.7%400 2 21,000 100%
2018 Q3 23,081,841 15.9% 1 90,938 95.3%399 3 30,864 100%
2018 Q2 22,990,903 16.0% 0 0 0.0%398 4 121,802 100%
2018 Q1 22,990,903 16.0% 0 0 0.0%398 3 111,802 100%
2017 Q4 22,990,903 15.8% 0 0 0.0%398 3 111,802 100%
2017 Q3 22,990,903 17.4% 5 326,520 3.2%398 2 101,938 100%
2017 Q2 22,664,383 16.8% 5 87,046 97.5%393 7 428,458 29.0%
2017 Q1 22,577,337 17.1% 2 27,000 55.2%388 11 511,984 39.6%
2016 Q4 22,550,337 16.5% 3 80,261 98.8%386 11 437,046 28.2%
2016 Q3 22,470,076 15.7% 4 45,760 69.6%383 12 466,361 26.5%
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Historical Construction Data670 W Arapaho Rd - Building 1
RICHARDSON/PLANO SUBMARKET CLUSTER HISTORICAL CONSTRUCTION DATA
Bldgs Bldg SF Vacancy Bldgs Bldg SF Leased
Inventory Deliveries
Quarter
Under Construction
Bldg SFBldgs Preleased
QTD 43,910,469 14.9% 9 207,780 68.5%1,539 26 546,345 31.4%
2019 Q1 43,702,689 15.2% 8 103,048 63.4%1,530 30 432,814 42.9%
2018 Q4 43,599,641 15.7% 6 37,632 37.0%1,522 34 470,129 70.2%
2018 Q3 43,562,009 15.6% 11 141,846 91.5%1,516 32 441,076 74.5%
2018 Q2 43,420,163 15.2% 6 191,640 39.4%1,505 32 485,907 89.8%
2018 Q1 43,228,523 15.1% 14 176,110 65.7%1,499 27 619,994 95.1%
2017 Q4 43,052,413 15.3% 19 568,311 40.3%1,485 34 540,558 91.6%
2017 Q3 42,484,102 15.5% 24 492,713 32.0%1,466 47 1,073,961 70.4%
2017 Q2 41,991,389 15.2% 14 140,902 84.6%1,442 62 1,515,614 57.8%
2017 Q1 41,850,487 15.4% 11 121,422 52.9%1,428 60 1,534,584 58.4%
2016 Q4 41,723,665 14.8% 15 266,792 70.2%1,416 51 1,338,980 53.2%
2016 Q3 41,456,873 13.9% 19 189,095 73.6%1,401 46 1,420,524 48.4%
DALLAS-FORT WORTH METRO HISTORICAL CONSTRUCTION DATA
Bldgs Bldg SF Vacancy Bldgs Bldg SF Leased
Inventory Deliveries
Quarter
Under Construction
Bldg SFBldgs Preleased
QTD 387,942,270 14.9% 30 1,649,200 78.7%13,227 159 8,384,817 62.8%
2019 Q1 386,424,306 14.8% 26 1,386,823 69.7%13,196 151 8,338,620 69.1%
2018 Q4 385,193,835 14.9% 35 832,110 53.8%13,175 145 8,538,414 78.2%
2018 Q3 384,634,433 15.0% 36 1,062,747 60.7%13,147 144 8,447,159 79.4%
2018 Q2 383,665,816 15.1% 48 2,056,067 70.5%13,113 131 8,753,951 88.3%
2018 Q1 381,712,021 14.8% 56 2,874,890 63.7%13,066 140 9,815,080 90.1%
2017 Q4 379,308,263 14.8% 72 3,411,481 69.5%13,019 157 11,581,569 91.4%
2017 Q3 376,015,792 14.6% 66 1,415,424 56.3%12,949 203 14,065,894 87.8%
2017 Q2 374,594,593 14.6% 59 2,934,680 80.0%12,883 223 11,694,258 83.6%
2017 Q1 372,103,405 14.6% 53 2,481,592 59.3%12,828 226 13,842,164 83.2%
2016 Q4 369,711,013 14.3% 50 1,195,581 82.8%12,776 210 15,142,249 82.0%
2016 Q3 368,697,787 14.3% 73 1,587,398 69.0%12,733 202 14,880,580 83.7%
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