Dallas, TX
If a 44-story tower can go for $3.5 million in St. Louis, what does that say about D-FW?
This week, the Wall Street Journal painted a stark picture of downtown St. Louis. It dubbed the area’s office district a “doom loop” and pointed to cities trying to save themselves from a similar trajectory, such as San Francisco and Chicago.
Anecdotally, the publication surfaced a 44-story tower once anchored by AT&T Inc. that traded hands for $205 million in 2006. The Journal reported the St. Louis building, which now stands empty, recently sold for $3.5 million.
It’s a grueling picture as cities across the U.S. cope with the post-pandemic hybrid work reality defined by an office sector of haves and have-nots.
In North Texas, new, amenity-rich offices win new tenants, as do those existing buildings willing to put in significant investments to keep and lure small and mid-sized tenants. That is, during a favorable financing climate.
A common refrain in Dallas are those companies taking their large-scale leases from downtown to Uptown.
Downtown Dallas’ office vacancy rate sits at about 26.5%, according to research from Partners Real Estate.
That’s not the highest in the nation, but it’s still high, according to Steve Triolet, Partners’ senior vice president of research.
Contributing to the vacancy rate are some of the subleases that have rolled over to direct vacancy, in addition to Class B offices weighing down the central business district.
“When you think about the types of companies that we have here in Dallas compared to Houston or Boston from an office perspective, we represent the nation as a whole,” said Triolet. “This is not just a downtown Dallas problem. All downtowns have this problem.”
Fort Worth is much healthier, he noted, pointing to the city’s 11.5% vacancy rate.
One headwind to the office occupancy problem is corporate America’s reluctance to force employees back five days a week, instead opting for a hybrid model.
However, with many companies asking employees to share the same in-office days, businesses are hard-pressed to cut down their square footage when the same amount of desks are required.
In contrast to the rest of the country, Triolet pointed to the fact that the region is the fastest-growing in the nation when it comes to in-migration. Dallas-Fort Worth’s main competition is other Texas markets, such as Austin, Houston and San Antonio, though Memphis, Denver and Atlanta rear their heads as well.
Office conversions to hotel space and residential units continue to be a bright spot for downtown. Not only does it take vacant office space off the docket, but it holds potential.
“These represent some diamonds in the rough, but are not the cure,” said Triolet.
It’s too early to count the success of these, especially as many await to see the pricing of the dwelling units.
The other wait-and-see element is just what will happen with large chunks of office space that will require backfilling in downtown Dallas.
JPMorgan Chase, which recently expanded its lease at the Hunt building, is the outlier that remained downtown when it left its namesake building a few years ago.
But Deloitte, Goldman Sachs and Bank of America will leave large holes as they hightail it for Uptown in the coming years.
Those three firms alone represent nearly 1 million square feet of space combined.
Dallas, TX
Dallas seafood wholesaler fined $250K for false salmon labeling
DALLAS – A Dallas seafood wholesaler has been ordered to pay a $250,000 fine after admitting it falsely labeled the country of origin of salmon, federal prosecutors announced on Friday.
Seafood Supply Co. fined
What we know:
Seafood Supply Co. was sentenced in federal court after pleading guilty in March to two counts of violating the Lacey Act, a federal law that prohibits trafficking in falsely labeled fish, wildlife and plants.
According to court records, the company falsely identified Chilean salmon as originating from Scotland or other European countries between January 2020 and February 2022. Prosecutors said the mislabeling allowed the company to market less expensive Chilean salmon as higher-value European product.
Understanding the Lacey Act
Dig deeper:
The Lacey Act requires accurate labeling of imported fish and other wildlife products.
Federal officials say the law helps protect consumers and ensures fair competition in the marketplace by preventing companies from misrepresenting the origin of seafood products.
What’s next:
The investigation was conducted by the National Oceanic and Atmospheric Administration’s Office of Law Enforcement as part of Operation Upstream Diligence, a federal initiative targeting seafood fraud and illegal trade.
The case was prosecuted by the Justice Department’s Environmental Crimes Section with assistance from the U.S. Attorney’s Office for the Northern District of Texas.
The Source: Information in this article was provided by the Department of Justice.
Dallas, TX
No ‘straight answer’: Why Pioneer Cemetery is the latest battleground at City Hall
Emma Ruby
A historic downtown cemetery has found itself in the crosshairs of a group skeptical about the direction of development in downtown Dallas.
The Pioneer Park cemetery is home to the graves of Dallas’ founders. Nearly every major Dallas myth hero and corresponding street name can be found etched into the stones — many of which date back to the 1800s. But the burial site also sits in the heart of downtown, tucked between the convention center and City Hall building.
It’s that location that worries the Save City Hall coalition, a group of organizers who have stood opposed to plans for Dallas’ municipal government to abandon the I.M. Pei-designed building on Marilla Street. According to a notice the coalition sent to the city on Thursday, surveyors have been spotted at the cemetery in recent weeks, and rumors have begun to emerge that the graves may have been included in the latest plans to develop the convention center and surrounding area.
“Pioneer Cemetery is hallowed ground, not a real estate opportunity,” the coalition said in a statement. “The law is crystal clear: you cannot simply pave over the founders of this city to build a basketball arena or a convention center hall. Any attempt to disturb these remains without strict adherence to state statutes is not just a civil violation — it is a jailable felony.”
The notice is the seventh that the coalition has sent to the city in recent months, and each threatens litigation if Dallas’ government fails to comply with various codes and ordinances. In reference to Pioneer Park, the coalition claims that the cemetery’s status as a historical landmark protects it from demolition or tampering. The notice also outlines an extensive process that must be followed when moving remains.
A city of Dallas spokesperson confirmed to the Observer Thursday afternoon that the city was aware of the notice, but stated that any work being done at the cemetery is above board and planned. The city declined to comment on the notice itself.
“Pioneer Park is currently under a plan to refurbish the steers and rider, fix the drainage and replant. There is no plan to change the site into something different,” the statement said.
Still, this is not the first time that the cemetery’s downtown location has been questioned.
The Dallas City Council approved the construction of a new convention center back in 2022. At the time, the state-of-the-art facility came with a $2 billion price tag. (Four years and two construction delays later, we’re looking at a $3.8 billion total.)
Some council members opposed the plan, in part because of the cost. But the Pioneer Park cemetery was cited as a challenge for the site plan, with council member Cara Mendelsohn stating that “across the nation,” people in the events, convention, and hospitality industries “make fun of Dallas for having a cemetery outside of its convention center.”
On Thursday, Mendelsohn declined to say whether she’s heard of any plans involving the redevelopment of the cemetery, but said she’s asked about the burial site “probably 10 times” during various council meetings, and has never been given “a straight answer.”
Still, the staunch supporter of City Hall said she could be persuaded into endorsing a cemetery relocation, with one major stipulation.
“I could support moving Pioneer Cemetery to Old City Park or combining it into one of the historic cemeteries in the city limits if the agreement included a provision to not abandon [or] relocate City Hall,” Mendelsohn said.
Dallas, TX
Mavericks vs Thunder Game Preview and Injury Update
The Dallas Mavericks play on Thursday afternoon at 3pm on Amazon Prime against the Summer Oklahoma City Thunder. Honestly, I forgot about this game, regular work day and all for me, and I suspect most Mavs fans won’t be catching this one either. But in case you do, here’s a discussion board:
I have no idea who isn’t playing. I hope Morez Johnson does but calf injuries are serious.
The Grizzlies game was fun. Here’s hoping this one is too. How’s that for a game preview. If any of the guys drafted in Dallas plays, then that’s a good thing. We want to see them play basketball.
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