A recently completed office building in McKinney has been sold, providing a look at how sales in suburban markets compare to those in Uptown Dallas. The 8-story, 190,000-square-foot property at 7300 State Highway 121, developed by Kaizen Development Partners in 2022 as part of the District 121 mixed-use project, was purchased by Eckard Enterprises, an oil and gas company based in Allen. Colliers’ Randall Book, Jason Roth, and Jack Beare represented the buyer in the transaction.
According to Traded, the sale price was $66 million, or $346 per square foot. This is less than half the price per square foot of a comparable recent sale in Uptown Dallas. In August, Cousins Properties, based in Atlanta, acquired The Link—a 292,000-square-foot office tower completed in 2021—for $218 million, equating to more than $746 per square foot.
Another notable Uptown transaction this year involved a 2008-built property at 2000 McKinney. German investor Union Investment Real Estate sold the 485,000-square-foot tower to Crescent Real Estate for a price that exceeded its $291.5 million valuation. This placed the price per square foot at about $600.
The data illustrates that even well-appointed suburban office buildings are not achieving the same prices as new properties in Uptown. The Uptown area has become a center for built-to-suit office developments targeting financial services firms and is often referred to as “Y’all Street.”
Office markets in North Dallas suburbs have performed well as companies seek locations closer to where their employees live. The Allen-McKinney submarket reported a vacancy rate of 20.1 percent, the lowest on the Dallas side of the Metroplex apart from Preston Center, which had a 7.9 percent vacancy rate, based on a recent Avison Young report. In comparison, Uptown’s vacancy rate is about 25.5 percent and the area has more than four times the office inventory of the Allen-McKinney submarket.
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