The Upper Tollway area in Plano is one of the most expensive office submarkets in the region, according to analysis released by CompStak. The commercial real estate data source has found that within this submarket, the Granite Park office complex has been continuously outpacing the already high starting rents for the area.
PLANO, TX (PRWEB) JUNE 30, 2014
Among the many office parks in the Plano's area, Granite Park stands out as one of the properties with the highest starting rents in the already hot Upper Tollway submarket. According to submarket analysis by CompStak, a database of commercial lease data for brokers and appraisers, the neighboring office submarkets, Richardson and Addison Quorum Bent Tree, have average starting rents of under $20 Per Square Foot, while the Upper Tollway area has an average starting rent of over $24 per square foot. "Most likely, the reason for the higher in Upper Tollway is its central location and a high demand for limited space," said CompStak's Research Analyst Diana Hill.
According to Hill, within the Upper Tollway, The Granite Park office complex, offering Class A offices, has seen continuous growth in rent for the past four years. CompStak found that in 2010, average rents in the office park were $23.63 PSF, about 10% higher compared with the overall submarket rents of $21.61 PSF, and most recently, Granite saw its most substantial bump in 2012 with face rents rising nearly 12.7% to reach an average of $28.15 PSF, and average landlord concessions dipping by 18%. "Rents have continued to increase since and are currently hovering at slightly over $30 per square foot, about $6 over the average for the Upper Tollway submarket," Said Hill. "The average concession package has increased as well, signaling that there may be some potential slowdown in the growth of rents."
This trend is only likely to continue with the Summer 2014 opening of Granite Park IV. The new 12 story, 306K square foot building already has asking rents that exceed those of the three existing structures and contains a cafe, a fitness center, and a conference center, according to the landlord's website. According to CompStak, Granite Park, owned by real estate management and investment company Granite Properties, has already locked its first big tenant--Mitel, who signed a lease for 52,000 square feet. The park will offer close to 1.2 million square feet of combined office space with the opening of the fourth building of the complex next month.