Global real estate giant would also partner with southern Dallas universities on work programs.
When global real estate giant CBRE Group relocated its headquarters from Los Angeles to Dallas last year, company officials said the move wouldn’t bring a big shift in employment from California.
Most of the company’s top officers were already located in Dallas.
Now the Dallas City Council is considering a proposal to give CBRE a $250,000 grant and nominate the company for $3.45 million in state economic incentives if it agrees to create additional jobs at its headquarters here and build a new office tower in Uptown.
And as part of the deal, the real estate firm would also partner with universities in southern Dallas to create commercial property work programs and set up an innovation center.
“CBRE currently employs 700 full-time staff in Dallas” according to a memorandum sent to the council by the city’s economic development staff. “Additionally, CBRE has committed to create a minimum of 250 new jobs at the Dallas headquarters by December 31, 2028, earning an average salary of $88,000 annually.”
The City Council is scheduled to vote on the economic proposal at its meeting next week.
“Staff recommends partnering with CBRE to build a pipeline of real estate workers in collaboration with southern Dallas universities, and to potentially develop a real estate innovation center in Dallas in partnership with a Texas university,” Eric Anthony Johnson, the chief of the city’s Economic Development & Neighborhood Services division, said in the memorandum.
CBRE currently has three Dallas offices at 2100 McKinney Avenue, 2100 Ross Avenue and 8080 Park Lane. The company also has a large employment center in Richardson.
To receive the financial incentives, the real estate firm “shall construct or cause to be constructed a minimum 600,000-square-foot office tower in the Uptown neighborhood of Dallas by December 31, 2024,” the city documents say. “CBRE will be the anchor office tenant of the to-be-constructed building and will lease a minimum of 200,000 square feet in the building on or before December 31, 2025, to serve as the global headquarters of CBRE.”
Trammell Crow Co., the Dallas-based development subsidiary of CBRE, has announced plans for a 27-story, 670,000-square-foot office and retail tower to be built at McKinney Avenue and Pearl Street just north of downtown.
So far, an anchor tenant has not been announced for the building, but there has been widespread speculation that it would be CBRE’s new home. The project would start next year.
The 2401 McKinney development will cost $200 million, according to planning documents filed with the state.
The city is asking that CBRE set up workforce development programs with Paul Quinn College and University of North Texas Dallas in southern Dallas.
“In partnership with a Texas-based university, CBRE will make a good-faith effort to establish a real estate innovation lab to be based in Dallas,” the city memorandum says. “CBRE and its clients will directly benefit from the lab with access to cutting-edge innovations in the commercial real estate industry.
“The partner academic institution will enjoy an expansion of academic offerings and associated research opportunities,” it continues. “CBRE will provide a report documenting its good-faith effort to facilitate a successful partnership with a minimum of three Texas-based universities.”
When CBRE announced last fall that it was moving its headquarters to Dallas, company officials said that it would mean greater employment here as it grew in the years ahead.
“CBRE continues to increase our employee base significantly in Dallas as our business grows, and we took expansion space at our 2100 McKinney headquarters building late last year,” a company spokesman said in an email. “We are weighing our options to best meet our long-term occupancy needs for when our lease at 2100 McKinney expires.
“We anticipate relocating our headquarters to 2401 McKinney, an office tower to be constructed by Trammell Crow Co., and expect to finalize details by the end of the year.”
CBRE is the country’s largest commercial property firm, with more than $20 billion in annual revenues
The company purchased Dallas-based developer Crow in 2006 in a transaction valued at more than $2 billion.