If you’re hunting for pricey office space, head to Uptown.
The Dallas district just north of downtown has the most expensive office street in North Texas, according to commercial real estate firm JLL. With top office rents of more than $62 per square foot, the cost of business digs along McKinney Avenue is more than twice the local average.
Even with the high cost of locating a business along McKinney, less than 9 percent of the offices are empty along Uptown’s main drag.
“Dallas’ Uptown is a desirable location for employment and living,” JLL researcher Walter Bialas said in a new report. “As one of the original ‘live, work, shop, play’ environments in D-FW, these companies are positioning themselves to attract top talent and retain employees.
“It’s certainly not unique in the grand view of what’s happening in commercial real estate, but it’s an excellent example of thoughtful urban planning, which has made this area what it is, and something that’s being implemented in other areas. It’s become a model for good planning both locally and nationally,” Bialas said.
With top-tier buildings including the Crescent, McKinney & Olive and 2000 McKinney, it shouldn’t be surprising that McKinney Avenue fetches the regions highest office rents.
But rents along McKinney are chicken feed compared to top-market prices in other major U.S. cities, JLL reports.
McKinney Avenue has been Dallas’ most expensive office address for several years, and some of the buildings that have sold along the street have brought record prices.
“Dallas real estate continues to see an increase in value as the demand pushes occupancy and rents in all areas of Uptown,” said JLL’s Jack Crews. “With a limited supply of land for new development and well-capitalized ownership investing annually into their buildings, the yields investors can now generate from these core buildings are not only strong but sound long-term cash flows.”