More Firms Find DFW Tops for Leasing, Investing
Peloton evaluated four different US markets and found that the Dallas area offered the most attractive options and a CBRE survey revealed that Dallas was in the number two spot as favored by investors.
PLANO, TX—Dallas was the prime location to support a company’s operations and is among the most preferred by industrial investors. This was evident when examining two recent transactions in the DFW metro.
With the assistance of CBRE Labor Analytics, Peloton did an extensive evaluation of four different US markets and found that the Dallas area offered the most attractive options. Specifically, the quality of the workforce sold Peloton on Plano.
“Based on statistical and primary market research, combined with geographical analysis and preliminary review of real estate costs among the four markets, Dallas was the prime location to support Peloton’s operations,” said Michael Conner, first vice president, CBRE Labor Analytics.
Peloton ended up leasing 27,518 square feet of office space at Legacy Central. The Plano location will serve as a key regional campus to supplement Peloton’s headquarters in New York and will be the first member support hub located outside of New York City. Peloton is a technology company that revolutionized the fitness industry with its category-creating indoor cycling bike and its recently announced Peloton Tread.
“Dallas is a very important market for Peloton. Our showroom at NorthPark Center in Dallas has been one of our top-performing locations nationally since it opened in 2015. And, in just the past nine months, we opened a new showroom at Legacy West in Plano and a field operations site in Arlington. Plus, we have tens of thousands of Peloton members in Texas to welcome us to town,” said Brad Olson, senior vice president, member experience for Peloton.
The new Peloton campus, located in Legacy Central at 6600 Chase Oaks Blvd., will be positioned to hire up to 400 people during the next few years, including member support associates and inside sales representatives. Peloton plans to occupy the space in third quarter 2018.
“Dallas is a dynamic city with a number of companies looking to establish a presence,” said Noreen Mehdi Weathers, senior associate, CBRE. “With the backdrop of such a competitive landscape, speed to market was a priority and we drove the process through quickly identifying options that were reflective of Peloton’s innovative technology brand. Peloton will be right at home at Legacy Central.”
Legacy Central is an 84-acre campus with nearly 1 million square feet of office space. It offers a long list of amenities that include a 25,000-square-foot wellness center complete with lap pool, basketball court, private fitness studios and a rock-climbing wall, a 15,000-square-foot conference center with tenant lounge, a 400-seat farm-to-fork food hall and a network of Wi-Fi-enabled collaborative courtyards.
“Legacy Central is a forward-thinking, technology-oriented campus designed to promote productivity through health and wellness, connectivity and collaboration,” said Matthew Benbassat, executive vice president of Regent Properties, the developer of the project. “It’s exciting to find a cutting-edge tenant who will not only be a user of all Legacy Central has to offer but will also enhance the campus.”
Weathers and Baron Aldrine with CBRE in Dallas represented Peloton in lease negotiations. Nathan Durham with Transwestern represented the landlord, Regent Properties. Conner and CBRE’s Labor Analytics team assisted Peloton with the labor analysis that led the company to Dallas.
Dallas-Fort Worth is home to 22 of the top Fortune 50 public companies. Companies on that list include Exxon Mobil, AT&T, American Airlines, Texas Instruments, Dr Pepper Snapple Group and D.R. Horton.
The adjacent Legacy West development was initially planned to bring up to 20,000 jobs and so far, the development is meeting that number, GlobeSt.com learns. Major employers at Legacy West include Toyota, Liberty Mutual and JP Morgan Chase.
According to a recent CBRE survey, industrial is now the top preferred property type for US commercial investment. Logistics properties, such as the majority of the recently sold PAULS national industrial portfolio, are highly sought after. The PAULS portfolio transaction includes more than 3.75 million square feet of industrial properties located across four states, GlobeSt.com learns.
The survey also revealed that three of the markets featured in the PAULS portfolio are among the most preferred by investors. Dallas ranks second, followed by Atlanta and Denver.
The seller was the PAULS Corporation of Denver. The buyer, Clarion Partners of New York, purchased the portfolio that includes more than 645,000 square feet of industrial space in the Dallas-Fort Worth metro.
The Dallas portion of the PAULS portfolio includes three class-A logistics properties totaling 645,282 square feet. The buildings are all new class-A construction, and include low office finishes and clear heights ranging from 32 to 36 feet.
Randy Baird, Jack Fraker, Ryan Thornton, Jonathan Bryan, Darla Longo and Chris Riley with CBRE national partners, along with Jim Bolt with CBRE industrial and logistics in Denver, represented the seller. Nathan Lawrence, senior vice president with CBRE industrial and logistics services in Dallas, retained the leasing assignment for the Dallas properties, which include 3951 Corporate Dr. and 3901 Corporate Dr. in Lancaster, and 4685 Mountain Creek Pkwy. in Dallas.