Texas Capital Bank’s consolidation of its north suburban offices spells trouble for one office landlord in Richardson.
Cushman & Wakefield has been tapped to market its 202,204 square feet in the eight-story Lakeside Tower at 2350 Lakeside Boulevard, the Dallas Business Journal reported.
Texas Capital Bank’s imminent departure will leave the property almost completely vacant, with just 1,600 square feet of occupied space. This move poses a significant challenge for Houston-based Medistar Corp., which has owned the building since 2014 through an affiliated LLC.
The bank’s 10-year lease is set to expire in April. It’s planning to move into its new space, located about a mile north at the Blue Cross and Blue Shield of Texas campus, in March. The company is also ditching its office space at 2221 Lakeside Boulevard.
The consolidation aligns with the company’s strategy to maintain “key market locations” across various areas to better serve client needs. The Blue Cross and Blue Shield campus, which opened in 2010, offers extensive amenities, including a fitness center and an auditorium seating 300.
Steve Triolet, a researcher with Partners, noted that Medistar will have to compete with other nearby landlords dealing with large chunks of empty office space, including owners of the former Bank of America office at Galatyn Commons and 2400 North Glenville Drive.
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“Like most office submarkets, filling older second-generation office space remains challenging because most larger office users have a strong preference for higher quality space and, in many cases, new construction,” Triolet told the outlet.
The bank’s departure reflects broader challenges facing Dallas-Fort Worth’s office sector, which is grappling with stubborn remote-work trends and high interest rates. The region saw net absorption of negative 1.6 million square feet in 2023, the outlet reported, citing CBRE. DFW’s office vacancy rate reached 21.2 percent in the fourth quarter, according to Cushman & Wakefield.
—Quinn Donoghue