Downtown Fort Worth Office Courts Suitors

FORT WORTH—The Fort Worth office space net rentable area is 8.628 million square feet with a total vacancy of 14.3% and total availability of 16.3%, according to a second quarter office report by CBRE research. The second quarter net absorption was 171,737 square feet and the year-to-date net absorption is 158,283 square feet. There were no projects under construction as of the end of the quarter and no deliveries were reported during the quarter.

With no new projects on the horizon, office properties being marketed here will find favor, especially at a lower average asking rate of $20.75 per square foot than that of similar Dallas counterparts. One such building in the marketing phase is the Petroleum Building.

Sundance Square purchased the 117,000-square-foot building in January from XTO Energy for an undisclosed price. The company is now marketing the 14-story structure situated on a full city block at W. Sixth Street between Houston and Throckmorton Streets.

Built in 1927, the building was designed by Wyatt C. Hedrick for Richard Dulaney. The design features Art Deco elements and has gone through several alterations during its 90-year history. Most recently in 2004, the building was restored by XTO Energy.

“The market is strong in downtown Fort Worth and we believe now that the Petroleum Building is part of Sundance Square’s portfolio, the demand for this property will be high,” said Johnny Campbell, CEO of Sundance Square. “We will continue to create a vibrant Central Business District that emanates throughout downtown.”

The parking garage, connected to the Petroleum Building by an enclosed skywalk, will offer 534 parking spaces and additional retail space. The building’s parking garage has been incorporated into Sundance Square’s parking program offering free parking to guests visiting Sundance Square after 5 p.m. on weekdays.

“The Petroleum Building has the advantage of having a parking garage attached to the building. This will be a huge draw to tenants in a downtown environment,” Carolyn Alvey, spokesperson for Sundance Square, tells GlobeSt.com. “In addition, the building has all the benefits of being a part of Sundance Square’s 36-block development featuring restaurants, shops and private security team in one of the most walkable downtowns in the country.”

Sundance Square is an entertainment district spanning 36 blocks that attracts more than 10 million visitors each year. The multi-use development has more than 4 million square feet of office, retail and residential leasing in 45 buildings with renewable energy provided by Green Mountain Energy. The development is estimated to avoid approximately 8.4 billion pounds of carbon dioxide through 2023, which is the equivalent of planting more than 7 million trees. The 1-acre outdoor plaza features restaurants, shops, fountains and a stage.

Robert Gamblin, Sundance Square’s director of leasing, will handle the leases for the development.