DALLAS One new lease and two expansions, totaling 26,489 sf, have been completed at the 187,644-sf Galleria Plaza, a class A office building that's undergone a major renovation to counter concerns about LBJ Freeway's ongoing construction in North Dallas.
The project's largest tenant, BenefitMall, has expanded to 50,689 sf, taking down 7,150 sf in back-to-back expansions at 4851 LBJ Freeway.
"Because of last year's renovation, BenefitMall has stayed and expanded in Galleria Plaza despite the freeway construction," says Sharon Friedberg, senior vice president of Dallas-based Bradford Commercial Real Estate Services. "It's tough to live through the roadwork, but tenants realize they're getting rates now that aren't going to be available in 12 months."
In September, the law firm of Blalack & Williams will move into 8,688 sf on the seventh floor, which was the last large block of available space in the upper bank of the 12-story building. The firm has signed a seven-year lease. It will be relocating from 5550 LBJ Freeway.
"I think this was a chance to move into a newly renovated building and upgrade their space," say Friedberg, who partners with Bradford senior vice president Melanie Hughes on the leasing assignment.
Galleria Plaza was one of two properties on the law firm's short list. "The location, view and building upgrades tipped the scale in our favor," Friedberg says. "It also helps to have good relationships with brokers." Representing the law firm and BenefitMall were Robbie Baty and Bill McClung of Cushman & Wakefield of Texas Inc.
The just-signed deals have pushed occupancy above 85% for Galleria Plaza's California-based landlord, YPI Central Expressway Properties LP. The available spaces are less than 6,663 sf, but Friedberg and Hughes do have the flexibility to assemble a 10,000-sf suite on the second floor. The building now boasts a conference center, upgraded security station and new finishes in the lobby and first-floor corridor.
"The renovation absolutely has helped with leasing, particularly those floors with good views," Friedberg adds. "Everyone knows rates will go up in the area after LBJ's expansion is completed so there's been even more interest in the building.”
August 21, 2014