The New York City-based owner has Legacy Place II at 5700 Tennyson Pkwy. being marketed on a direct basis after Rent-a-Center negotiated out of its lease. Its sister, Legacy Place I at 5800 Tennyson Pkwy., has been up for grabs nearly six months on a plug n' play sublease with five years left on the term, without any signs of a space take-back from the former Triad Health Management Systems, now part of Nashville-based Community Health Systems.
The sibling rivalry for tenants has pitted newly seated Jones Lang LaSalle against CresaPartners, driving the seasoned brokers to tag team on marketing. "There are not a vast number of comparable buildings with 300,000 sf. It puts us at a very large advantage," says Dale Ray, JLL's managing director. He and JLL vice president Shannon Brown are on the hunt to fill Legacy Place II while the firm's Jennifer Wood has assumed general manager duties for the day-to-day oversight of the two buildings.
The twins represent the fourth largest block of contiguous office space in Legacy Business Park. "It makes a lot of sense for us to team," says Greg Langston, CresaPartners' managing principal in Dallas. "It's a true team approach here."
Despite the friendly competition, both sides say their strategies are aimed at single- and multi-tenant deals floating in the market. Langston's upper hand is a sublease quote of $22 per sf to $23 per sf plus electric, which is undercutting the next-door neighbor by a minimum of $1.50 per sf and the submarket in general by $2 per sf to $6 per sf.
"With furniture, fixtures, equipment and the functional layout, we're in pretty good shape. We're seeing a lot of deals," Langston says. The problem is it's the one with the cafeteria, a feature not likely to gain much support in a multi-tenant scenario, he says, citing the high number of restaurants in the immediate area.JLL went up against five to seven brokerage teams to claim the assignment. New York City-based Blackstone Group had inherited leasing and management in its acquisitions of Equity Office Properties and CarrAmerica Corp.
Ray says Legacy II will get some polishing, but discussions have just begun with architects so it's too early to say just what will be done. "We think overall it shows well. We are looking at just some minor tweaks and improvements," he says. The six-story buildings were developed in 1999 by Dallas-based Lincoln Property Co.
Despite the single-tenant push, Langston says Dallas-based Granite Properties has proven the market is primed for smaller deals, filling nearly 881,361 sf in three class A buildings, situated just a short drive up the Dallas North Tollway. "Granite has been very successful in leasing Granite I, II and now III. If you buy into Granite's philosophy, which isn't a bad one, you'd know that makes sense," he says.
On the other hand, Langston says there a 100,000-sf prospect toured the structures last week, a 150,000-sf showing is coming soon and a 225,000-sf to 250,000-sf user is expected to tour within 30 days.
"We're exploring all our options as well as working with Jones Lang LaSalle as our teammate," Langston says. "The attraction of the space is it's a loaded headquarters facility."
In JLL's latest market analysis, the far north Dallas submarket has 17.3 million sf of class A office space, with direct and sublease space fueling an 18.89% vacant. There's also 734,232 sf of class A buildings under construction in the corridor.
"We've got a mission and we're excited," Ray emphasizes. Although the hunt's heating up for a 300,000-sf tenant, he's street-savvy and realistic about the dynamics of cutting deals in today's economic climate. "I'd like to see a lease signed and ready to go by the end of the year," he says, adding the opportunities now on the table range from a full floor to 100,000 sf.
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