One year after it was delivered, the Stack in Dallas’ Deep Ellum neighborhood was fully leased.
But, as big-name tenants add space to DFW’s oversaturated office market, the outlook for the 16-story, mixed-use building is much less rosy.
Advertising agency TRG is the latest tenant to offer up space at the Stack. Formerly known as the Richards Group, it listed 28,000 square feet, the full 14th floor at 2700 Commerce Street. The listing accounts for a third of TRG’s 102,000-square-foot lease.
The lease runs through December 2035.
In addition to TRG, insurance agency Bestow and logistics company Worldwide Express have also offered up space at The Stack, said Steve Triolet, senior vice president of research and market forecasting for Partners Real Estate.
“Currently more than a third of the property is available for sublease,” he said.
The Stack, built in 2021, was developed by Houston-based Hines, Dallas-based Westdale Real Estate Investments and Management, and Montreal-based Ivanhoe Cambridge. The building offers 14,000 square feet of street-level retail and 200,000 square feet of office space. In 2023, the Dallas Central Appraisal District valued the property at $76 million.
This listing adds even more square footage to DFW’s flooded office market, which has swelled as companies continue to navigate new norms surrounding remote work. In December 2023, office vacancy rose to 24.5 percent, up from 23.2 percent a year ago, according to a report from Partners. Rent rates, however, remain stable. The average asking rent was $29.67 per square foot at the end of last year, up slightly from $29.28 per square foot the year before.
Sublease space in DFW is down from its 11.2 million-square-foot peak, about a year ago, to 10.5 million square feet. But that’s necessarily good news. The decrease is mostly attributable to space being pulled from the sublease market or rolled over into vacant space, Triolet said.
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