By: Walter Bialas
Over the last few years, our Dallas North Tollway has been hot for office sales.
Driven by high demand in the Upper Tollway and the completion of LBJ in the Lower, investors have been looking closely at this corridor to find assets. Since 2013, almost 25 assets have traded. While base rents were higher, these Tollway properties were on par in terms of vacancy. Over the ensuing 2 to 3 years, however, vacancy has declined well into the single digits, compared to the mid-teens for the corridor overall. And, the already above average rents have advanced by close to 23% – more than 5.5-percentage points above the average – as new ownership has taken an aggressive stance in repositioning these assets and creating value.