Pinnacle Tower in Dallas is 90% Occupied After $9M Renovation

In an era when the office sublease market is ballooning, a fully leased office building is rare.

Pinnacle Tower in Dallas is almost there. The property, owned by New York LIfe Investors, is 90 percent occupied after a $9 million renovation in 2018.

In the last six months, the building landed leases with New York Life, Beaird Harris, Nothing Bundt Cakes, Cinergy Entertainment and Travis & Inman. Guidestone and Truist also expanded their footprints in the building.

Stream Realty secured the leases, with J.J. Leonard, Chase Lopez and Marissa Parkin representing the landlord.

The Class A building is located at 5005 Lyndon B Johnson Freeway in north Dallas, at the intersection of Interstate 635 and Dallas North Tollway. It’s about 12 miles north of downtown Dallas across the tollway from the Galleria Dallas shopping mall.

Pinnacle Tower rises 24 stories and spans 550,000 square feet. It was built in 1986.

New York LIfe Investors purchased it in 2016, when it was just 50 percent occupied. Stream executed the renovation on behalf of the owner. The renovation updated conference facilities and incorporated a fitness center and dining options.

The building is “a testament to the successful revitalization of a 1980s-era office building situated in a prime location,” Stream’s J.J. Leonard said.

DFW’s office market has struggled as companies navigate new norms surrounding remote work.

In December 2023, office vacancy in Dallas-Fort Worth 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.

Increasingly, downsizing companies are putting their office space on the sublease market. It peaked at 11.2 million square feet last year. It’s now down to 10.5 million square feet, but that’s mostly due to sublease space being pulled from the market or rolled over into vacant space, Partners’ Steve Triolet said.