Big changes are underway behind the colored windows and granite walls of the skyscrapers of downtown Dallas.
New owners are transforming millions of square feet of office tower space in the city’s central business district into hundreds of new residential units.
Some planned changes to downtown’s landmark buildings will bring thousands of new residents and significantly reduce the supply of office space in the financial district.
This is good news for downtown, according to real estate executives.
Gary Carr, Vice Chairman of the commercial real estate company Newmark Group, said: “It’s great for the city.”
Downtown has been plagued by oversupply of office space for decades.
Many of the oldest office buildings built before the 1960s have already been converted into apartments and hotel rooms.
However, downtown still suffers from excess office space, much of it in vintage 1980s skyscrapers. Approximately one-third of downtown offices are empty, and vacancy rates in nearby uptown and turret leak markets are more than doubled.
Phil Packet, Vice Chairman of the CBRE Group, said: “With all these conversions done, the total area of office space could be reduced by about 3.7 million square feet.”
This means that over 80 acres of empty offices have been transformed into homes that are in desperate need.
“This will be very good news for downtown Dallas,” Packet said.
The new apartment will devour the equivalent of more than a decade of downtown office leasing.
Skyscraper sales are skyrocketing in downtown, and many of the buildings are being purchased by owners who are planning to switch large blocks of office to apartments.
Last month, Dallas-based Todd Interests A 49-story Energy Plaza on Brian Street. Built in 1983 and designed by renowned architect IM Pei, the 1.3 million square foot tower is almost empty.
Todd Interests is spending over $ 300 million to turn an office tower into a combination of apartments and luxurious office space. About half of the building will be a house.
The same developer is already downtown Historical First National Bank Tower The Dallas Center office tower is a multipurpose building with hundreds of apartments.
Another of the largest towers in downtown, 56 stories, 1.73 million square feet Renaissance Tower on Elm Street — I’m transforming again. Based in its new owner, San Antonio, Gray Street Partners plans to convert more than half of the almost empty skyscraper built in 1974 into residential space.
Woods Capital in Dallas is redeveloping two downtown office towers into a multipurpose building.
February, Woods Capital After the building was seized, we acquired the 40-story Brian Tower on the northeastern side of downtown. Built in 1973, the Brian Tower was one of the first modern reflective glass skyscrapers built in Dallas.
Woods Capital spends more than $ 150 million to turn the upper half of a 1.1 million square foot office building into an apartment.
A few blocks from Pacific Street, Woods Capital plans to redo the same type of 50-story Santander Tower, converting multiple upper floors of a 1.4-million-square-foot skyscraper into a home.
Jonas Woods, founder of Woods Capital, said all of these projects will transform downtown.
“I think this is an event of downtown sea change,” Wood said. “You have undergone a major revision of office supplies and have obtained nearly 2,500 new housing units.
“This will significantly increase the downtown daytime, weekend and nighttime population,” he said. “Its population growth supports restaurants, amenities and service retail. All of this is great for creating a great urban neighborhood.”
Converting an office skyscraper into an apartment can cost half to one-third per square foot compared to building a new luxury home, Woods said.
Also, with less than 3% vacancy in all apartments in the Dallas area, demand for new downtown rental units can be strong.
Downtown Dallas has undergone major changes since 10 years ago, with nearly 10,000 homes in the city centre. The day the street rolled up at 5 pm is a memory of the construction of almost all new apartments and signed public parks.
“I think these new renovations will make downtown an incredibly vibrant district,” Woods said.