Economic Uncertainty Stalls Office Leasing Deals Near Dallas

Developer Craig Hall says the ripple effects of the Trump administration’s tariffs are already costing him business.

A few office lease negotiations, some approaching 30,000 square feet, have stalled at Hall Park, Hall Group’s 162-acre campus in Frisco, due to market uncertainty following the Trump administration’s latest tariff rollout, Hall told the Dallas Business Journal.

One set of tariffs, a blanket 10 percent on most imports, took effect in early April. A second wave targeting specific countries has been paused except for Chinese imports, which remain active.

“The overall uncertainty is very unfortunate for our overall economy,” Hall said, noting that instability and unpredictability have made tenants hesitant to commit.

Chobani signed a 28,000-square-foot lease at Hall Park in January. But other deals haven’t moved forward.

Beyond office leasing, the tariffs slammed Hall’s French wine business, which faces a 10 percent cost hike on imports, just as it prepares to launch its first product stateside.

Though developers across Texas are still calculating how tariffs will affect construction costs, Hall said many materials have global supply chains that trace back to tariffed countries, sometimes indirectly. He’s concerned the broader policy shift signals a move toward what he called U.S. “isolationism.”

“I think a lot of people are on edge,” he said. “Being on edge is not a good thing in the business world.”

Hall said he is cautiously optimistic, though.

He’s still moving forward with plans for additional mixed-use development at Hall Park, including a 12-story office building, a garage with 1,100 spaces and an expansion of Kaleidoscope Park, which opened last fall.

On March 4, Frisco City Council approved a master agreement for the project’s next phase, including an outdoor video screen, performance stage and water feature.

His advice for other developers: stay liquid, stay flexible and expect the unexpected.

“There’s just a general fragile nature of the economy right now,” Hall said. “But if we end up in a recession, you just have to deal with the ramifications of that.”

— Judah Duke