Work on Trammell Crow Co.’s McKinney Avenue high-rise was expected to start earlier this year.
Developers appear to have hit the pause button on one of Uptown Dallas’ largest high-rise projects.
More than two years ago, Trammell Crow Co. announced plans for the 27-story McKinney Avenue office and retail tower.
The almost 700,000-square-foot building would replace the Truluck’s restaurant at the corner of Maple Avenue. The $200 million high-rise was planned as a headquarters for Dallas-based commercial property firm CBRE Group.
But after obtaining zoning for the project and incentives toward the construction, work on the tower has not proceeded.
Previous filings with the city and state called for a groundbreaking earlier this year.
Crow Co. officials declined to comment on the status of the development.
Real estate information firm CoStar recently questioned whether the tower project is still alive.
The tower would have to be completed by the end of 2024 to receive the city economic incentives.
CBRE Group, which owns Trammell Crow Co., moved its headquarters from California to Dallas in 2020 and is located in another McKinney Avenue office building. The international commercial property firm recently announced that it’s taking $400 million in cost reductions because of the deteriorating economic environment.
Since the Uptown project was announced, interest rate hikes by the Federal Reserve have dramatically increased the cost of new development.
While the Uptown Dallas deal has languished, Crow Co.’s High Street Residential is moving ahead with a 4-acre mixed-use project north of downtown on Knox Street that includes offices, residential, retail and a hotel.
In Plano’s Legacy business park, CBRE is looking for tenants to sublease a new 327,000-square-foot office tower that was built for Reata Pharmaceuticals. The drug company had planned to locate its headquarters in the high-rise but decided to put that move on pause.
While Crow Co.’s McKinney Avenue high-rise has stalled, other Uptown Dallas developers have pushed ahead with new projects.
Just two blocks from the Crow tower site on Cedar Springs Road, developer Granite Properties has begun construction on its 626,000-square-foot 23Springs office and retail project. And developer Hines is including new offices in its redevelopment of the historic Maple Terrace building.
Stream Realty Partners is building a 12-story office tower plus new retail space in its $100 million Quadrangle redevelopment.
Developer Harwood International is building its 27-story Harwood No. 14 office tower on Harry Hines Boulevard and has already signed several large leases with business tenants, including law firms Haynes and Boone and O’Melveny & Myers and property investor S2 Capital.
