How long will this boom last?
In Uptown, it's back to the office
Lincoln seeks tenants for area's biggest tower since 1999
10:50 PM CDT on Monday, May 23, 2005
By STEVE BROWN / The Dallas Morning News
So far, the Uptown building boom has focused on residential and retail.
But that may soon change.
Developer Lincoln Property Co. is seeking tenants for the biggest office tower to be built in the area in more than a decade. Lincoln's building will have 400,000 square feet of space in 20 stories.
The site is on McKinney Avenue, a couple of blocks from the Crescent complex.
Officials with Lincoln Property could not be reached for details about the timing of the development. But the Dallas-based commercial builder is sending out brochures to prospective tenants and has put up a sign on the site at McKinney and Harwood Street.
The last big office tower built along McKinney was 2100 McKinney, which opened in 1999 across from the Dallas Federal Reserve Bank. That tower has 360,000 square feet of office space on 18 floors.
The office vacancy rate in Uptown and Turtle Creek is about 12 percent, which is less than half the citywide number.
"Supply presently is tight," said Jon Altschuler, managing director of Stream Realty Partners. "While demand currently is not exceptionally deep, there are several tenants floating around of size that could certainly serve as the impetus to jump-start a new development."
Plus, most brokers expect that Lincoln Property would move its own offices from the Lincoln Plaza skyscraper on Akard Street to the new building.
"I think the market is ripe for one or two new buildings in the Uptown area," and Lincoln is likely to build, said Joel Pustmueller of Peloton Real Estate. "There are only a handful of office development sites left, so overbuilding isn't likely this time around."
Architect HKS Inc. designed Lincoln's building, real estate brokers say.
"They've designed a really nice property, and they're an exceptional developer of office space," Mr. Altschuler said. "If anyone could make it work, you'd think it would be Lincoln."
There are a few other Uptown office projects in the works.
Harwood International plans to begin construction this year on a 23-story, 273,000-square-foot glass-and-metal tower at the corner of Harry Hines Boulevard and Moody Street.
The developer has been working on the project since early last year.
Ross Perot Jr.'s Hillwood development firm also plans to start construction this year on its 45-story One Victory Plaza tower, which will have 300,000 square feet of office space.
And CarrAmerica Realty Corp. has been working with Dallas-based Rosewood Corp. on a multi-tenant office building that would be constructed on Pearl Street near Cedar Springs Road.
"The market can get overbuilt very quickly, and since this is Dallas, you'd have to bet that it most likely will," said Mr. Altschuler.
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stevebrown@dallasnews.com
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