Empire Commerce Center
- 1150 Empire Central Place, Dallas, TX 75247
- Property Type:
- Multi Tenant
- Cap Rate:
- 5.61% cap
- Square Feet:
- 44,067 sqft
- Lot Size:
- 3.19 Acres
- Price Per Square Foot:
- Year Built:
- Value-Add Office/Flex Portfolio Located in Core Infill Dallas Location
- Opportunity to Lease Up Vacancies and Increase Rents with Staggered Lease Expirations
- Proximate to Dallas Love Field, Stemmons Freeway, Downtown Dallas and the Dallas Medical District
- Ease of Access: Each Unit with a Dedicated Entrance and Parking Spaces Create an Advantage Comparative to Mid/High-Rise Office Buildings
Marcus & Millichap is pleased to present the opportunity to acquire the two-building portfolio located at 1150 Empire Central Place, in Dallas, Texas. The subject portfolio consists of approximately 44,067 square feet of space and is situated on 3.19 acres of land. The multi-tenant asset features 100 percent office/flex space with a dedicated entrance to each unit and ample parking, creating an advantage comparative to mid/high-rise office buildings. Even with a current cap rate of 5.61 percent, investors have the opportunity to increase rents with staggered lease expirations. This value-add portfolio is situated in a core infill location in Dallas. The property is within close proximity to Dallas Love Field Airport, Stemmons Freeway (Interstate 35), Downtown Dallas, and the Dallas Medical District.
The subject portfolio is located within Stemmons Freeway, a submarket containing 15.7 million square feet that stretches north from Downtown Dallas up to the LBJ Freeway and Farmers Branch. At $22.44 per square foot, market rents in Stemmons Freeway offers tenants a sizeable discount to the metro’s average rate of $27.84. Despite the impact of the Covid-19 pandemic on the office market, cap rates in Stemmons Freeway have remained relatively stable at about 7.3 percent over the last two years. Rent growth has averaged 2.5 percent since 2016. Most major tenants in the submarket are located near the Southwestern Medical Center, with healthcare related firms accounting for a significant portion of the tenant base. Stemmons Freeway contains the Dallas Love Field Airport, which serves as the headquarters for Southwest Airlines. In 2018, Southwest Airlines completed a 414,000 square foot office building (CoStar). Given the location, the Stemmons Freeway submarket offers investors a sound value-add opportunity in the Dallas-Fort Worth market.
The Dallas-Fort Worth metroplex is the fourth-most populous metro in the nation, with an aggregate of more than 7.5 million residents. It is composed of 13 counties stretching nearly 10,000 square miles. The city of Dallas houses 1.3 million people, followed by Fort Worth with 800,000 residents. Strong job growth continually draws new residents to the region. To accommodate the additional traffic, the region’s transportation network is evolving. Traffic flow is improved as freeways are expanded and miles are being added to tollways and turnpikes. The growth of the transportation network is vital to supporting commuters to the metros numerous corporations and growing industries. Dallas/Fort Worth’s population growth in recent years ranks among the highest in the U.S. for a major metro. The Metroplex is home to 24 Fortune 500 companies and many regional headquarters, drawing workers and residents. The area’s extensive network of rail and highways, along with the International Inland Port of Dallas, ensure its status as a distribution hub.