Trammell Crow Mulls Office-To-Resi Play In Big D

The office-to-resi craze in Dallas has attracted one of the city’s real estate titans.

Trammell Crow Company is eyeing a 10-story office building, at 5550 Lyndon B. Johnson Freeway, in North Dallas for a conversion into apartments, the Dallas Morning News reported.

The big move on an office-to-residential conversion by the well-known Dallas firm marks a ramp-up of a trend pushed along in recent years by a beleaguered office sector, which has been hammered by remote-work trends since the pandemic. Dallas’ office vacancy rate hit 26 percent in the first quarter, while net absorption — the amount of space leased minus the amount of space vacated — stood at negative 1.1 million square feet.

Among Texas cities, Dallas appears to be at the forefront of the office-to-resi movement. Repurposed office buildings in Dallas are expected to yield 2,000 multifamily units, according to Downtown Dallas Inc.

The bulk of office-to-resi projects are concentrated in the downtown area. Part of the 50-story Santander Tower, for instance, was converted into 228 apartments by an affiliate of Woods Capital. Firms such as Dallas-based Todd Interests are embarking on a similar path by adapting the Renaissance Tower and Energy Plaza.

Trammel Crow could push beyond the office tower along the LBJ Freeway, too. It is considering demolition of two adjacent six-story office buildings to make way for a pair of five-story apartment buildings. The parking garage on site would remain mostly intact, with the addition of screening being the only proposed change.

Trammell Crow could invest upwards of $300 million on the redevelopment, which also calls for enhanced landscaping and walkways. Dallas City Council is set to review the project this week; a zoning change has been requested.

The property, valued at $10.75 million for tax purposes, is considered a prime candidate for a residential conversion.

—Quinn Donoghue