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J
L
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Bankof
America
Plaza
Comerica
Bank
Tower
Renaissance
Tower
1700
Pacifc
Ross
Tower
KPMG
Centre
North
Tower
South
Tower
Fountain
Place
2100
Ross
Bryan
Tower
Chase
Tower
Trammell
Crow
Center
Thanksgiving
Tower
OneArtsPlaza
Park
Seventeen
Texas
Capital
Bank
Building
2100
McKinney
Saint Ann
Court
The
Crescent
- 100
The
Crescent
- 200
The
Crescent
- 300
RosewoodCourt
OneVictory
Park
2828N
Harwood
- Phase
IV
One
McKinney
Plaza
TheTower at
Cityplace
RBA(s.f.) 1,865,168 1,530,957 1,729,294 1,340,481 1,113,575 827,704 562,500 536,344 1,200,266 866,709 1,124,021 1,296,407 1,128,331 1,375,663 530,236 361,524 447,595 351,858 314,279 372,260 390,305 372,260 405,291 436,049 220,661 263,921 1,350,267
Percent
leased
78.6% 68.4% 58.3% 57.2% 64.8% 63.1% 77.6% 63.6% 86.5% 72.3% 81.8% 84.9% 81.8% 56.1% 100.0% 96.0% 97.5% 84.9% 100.0% 93.9% 90.2% 95.7% 100.0% 93.4% 100.0% 97.5% 75.4%
Direct rent
(FS)
$23.00 $22.00 $18.00 $19.00 $23.00 $18.00 $21.00 $21.00 $25.00 $24.00 $21.00 $34.00 $33.00 $20.00 $33.00 $40.00 $41.00 $41.00 $36.00 $43.00 $43.00 $43.00 $41.00 $37.50 $34.00 $36.50 $30.00
Year built/
renovated
1985 1987
1972/
1991
1983/
2011
1984/
2009
1980/
1987
1980/
1992
1980/
1992
1986/
2013
1982/
2006
1972/
2000
1987
1984/
2013
1982/
2008
2007 2010 2008 1999 2009 1985 1985 1985 2008 2008 2000 1985 1985
Smaller and newer buildings consistently winning tenant interest
24.7% 24.8%
23.8%
25.6%
26.7%
25.7%
28.1%
29.3%
23.0%
24.4%
23.4%
21.5%
19.2%
17.5% 17.8%
14.5%
10.0%
15.0%
20.0%
25.0%
30.0%
2010 1Q 2010 3Q 2011 1Q 2011 3Q 2012 1Q 2012 3Q 2013 1Q 2013 3Q
Buildings over 1 million s.f. Buildings under 1 million s.f.
Total vacancy rate
Floor 75
Bankof AmericaPlaza ComericaBankTower ChaseTower RossTower KPMGCentre BryanTower FountainPlace Trammell CrowCenter Plazaof Americas- North Plazaof Americas- South 2000McKinney- TXBank 100Crescent 2828N. Harwood
Street PhaseIV
OneMcKinney
Plaza
200Crescent 300Crescent 1717McKinney-
ParkSeventeen
2100McKinney Saint AnnCourt OneVictoryPark RosewoodCourt OneArtsPlaza 1700Pacific RenaissanceTower 2100Ross ThanksgivingTower TheTower at Cityplace
30
35
45
65
55
40
50
70
60
25
20
15
10
5
Dallas Skyline review
New downtown striding toward a more vibrant future
Dallas Skyline includes the best-in-class offce buildings located in the
urbanizedcorethat meet oneor moreof thefollowingcriteria: larger than
200,000 total square feet, built or signifcant renovations since 1985, high-
profle location, recognized tenant profle and/or architectural signifcance.
Walter Bialas
ResearchDirector
Jeff Eckert
ManagingDirector
EvanStone
ManagingDirector
Dallas
Occupied floor Direct vacant floor Sublease vacant floor
Parking, Other unusable space Future available Retail
Last year, CBDandUptownwereunitedwhentheKlydeWarrendeck
parkspannedthefreewayseparatingtheseneighboringsubmarkets.
Since opening, the park has generated signifcant attention by blowing by
its forecast and hitting a million visitors the frst year. Beyond increasing
visitation, theparkhashelpedcreateacohesivedowntown.
Thisrecognitionhasbeguntocatalyzeinvestment activity. Areasdirectly
abuttingtheparkareseeingnotablepositivechange. Occupancyisup
inmanybuildingsandrentsarehigher. For thenewer, smaller Skyline
buildings, changeishappeningfast. Sincelast year, vacancyplummeted
from18.0to12.0percent. Therehasalsobeenactivitytorepositionthe
larger buildingsinthisearlystageof downtownsrebirth.
Reinvestment isbeingdirectedinto2100Ross, Bankof AmericaPlaza,
andPlazaof theAmericas. Likewise, LincolnPlazasnamechangeto
RossTower capitalizesonRossAvenuebeingat thecenter of the
action. Large-scale CBD development is also occurring for the frst time in
years, withKPMGandJacksonWalker anchoringa450,000-square-foot
ArtsDistrict development.
Skyline leverage
Tenant-favorablemarket
Neutral market
Landlord-favorablemarket
2014 2015 2016
23.9%
Direct vacancy %
0.1%
2013 net absorption as
percent of inventory
4,291,000
2013 sales volume (s.f.)
-0.2%
% direct asking rent
change past 12 months
450,000
Under construction (s.f.)
Plazaof theAmericas