Preston Center – one of Dallas’s most desirable areas & why it scores solidly in our submarket “leaderboard”
Preston Center has been one of Dallas’ premier office submarkets.
April 23, 2019
- Preston Center has been one of Dallas’ premier office submarkets due to its central location, easy regional access afforded by the neighboring Dallas North Tollway and Northwest Highway, proximity to senior executive and mid-tier housing, and a nearby diverse labor pool.
- While the submarket is one of Dallas’ smaller (around 4 million square feet), it boasts an exclusive tenant roster of high-value companies, with concentrations in manufacturing, energy & utilities, real estate-related, and finance.
- Unlike some of the region’s larger submarkets, the average office tenant in Preston Center is small – averaging 5,200 square feet.
- Because of the smaller, exclusive tenant, new office development has not been widespread. This has kept vacancy very tight historically and rents well above the region’s average.
- The most recent office building broke ground as spec, which caused vacancy to spike when it delivered in 2017.
- Since opening it has seen consistent leasing – at rates that are at the top of the market ($34 to $36 triple net).
- Tenants mirror Preston Center’s strengths and include Eagle Materials, Berkadia, Compass, and Republic Title.
- WeWork also recently took two floors (almost 50,000 square feet), which brings the project close to stabilization with only 25,000 square feet remaining to lease.
Source: JLL Research