Downtown Dallas Office Vacancy Reaches New Height (West, Miami: city hall, neighborhoods)

[Dallas native]

Originally Posted by EasilyAmused

The little I know from Dallas from going to SMU, people don't want anything to do with "Downtown."

Huh. You must have gone to school here a very long time ago if that is your impression. Thousands of people have chosen to live downtown over the past decade. New restaurants, clubs, a luxury hotel and more residential buildings have opened over the last few years. The addition of the Winspear Opera House and the Wyly Theatre to the Arts District has made Downtown even more attractive. Comerica Bank and AT&T have made Downtown Dallas their new HQ within the past few years. It's also the hub of the DART rail system, which makes it more enticing for people who might choose to live or work in Downtown Dallas.

[EasilyAmused]

Originally Posted by Dallas native

Huh. You must have gone to school here a very long time ago if that is your impression. Thousands of people have chosen to live downtown over the past decade. New restaurants, clubs, a luxury hotel and more residential buildings have opened over the last few years. The addition of the Winspear Opera House and the Wyly Theatre to the Arts District has made Downtown even more attractive. Comerica Bank and AT&T have made Downtown Dallas their new HQ within the past few years. It's also the hub of the DART rail system, which makes it more enticing for people who might choose to live or work in Downtown Dallas.

Yes is was about 15 years ago. Like I said, it's been a while. But even when I stayed up their during IKE, it's wasn't that busy. Neither is Houston's downtown..so there you go.

[Dallas native]

[quote=dv1033;12477327]Victory Park (VP) currently is a financial disaster. Of course in time, and through many painful concessions, its residential and retail components will become occupied. They really dropped the ball in overestimating DFW's potential for this type of development; granted they based a lot of their assumption on lax lending (easy money).[quote]

I wouldn't say it's a financial disaster overall, but I agree that Hillwood overestimated the need for expensive condos, chi-chi restaurants and luxury retail when they were in the planning stages. Victory Park needs to be re-branded and I believe that is happening now. Two new restaurants (Hard Rock & Naga Thai) have opened in the last 6 months and they are priced for mainstream crowds. The most notable restaurant closings, Nine and Nove, were simply too high-end.

From a tax base perspective, Dallas is collecting lots of real estate taxes on the condos at the Terrace (sold out) and at the W (the majority is sold) from the individual homeowners. The new highrise called the House unfortunately came on the market at the worst time, so that will take a long time to sell out. In the meantime, the developer will have to pay real estate taxes on the many unsold units. There are sales tax revenues coming in from restaurants/bars such as the House of Blues, Hard Rock Cafe, Dick's Last Resort, Hooter's, Luna de Noche, Medina, Kenichi, Craft, Victory Tavern and the Boardroom. Occupancy taxes have been generated by the W Hotel. The AA Center draws large crowds who pay for tickets everytime there is a concert or the Mav's or Stars have a home game. The only major office building at Victory Park (Haynes & Boone and Ernst & Young are the anchor tenants) was over 80% pre-leased and there are real estate taxes on that building. My point is that none of this existed 10 years ago, so the revenue to Dallas back then was zilch. The revenue now is significant. While VP got off to a less than stellar start due to some bad decisions made by Hillwood, I think it is far better that it was built than it would have been to leave the area as the unsightly brownfield that it once was.

[Metro Matt]

Originally Posted by Dallascaper

This building has been sitting nearly empty for decades. From what I understand, it has good bones, but is very dated and needs to be upgraded to be marketable. The building has other problems, including an awkward, smallish floor plate, and asbestos. Downtown Dallas is filled with obsolete mid-twentieth century buildings like Elm Place; some have been converted to residential, but the process is very expensive.

Dallas needs to think of a plan very quickly, otherwise it might not have a downtown at all (ala Detroit) in the years to come. You can't just keep converting every empty skyscraper to be residential. The demand simply isn't there, especially with an already over built "Uptown" just a stones throw across the freeway.

I commend Dallas for what it has done the past 10 years to attract people to downtown, but its going to take a lot more than just making it a play area for the 20 something crowd with a few bars/clubs lined along Main Street & resuscitating a dying arts district.

[TT Dave]

I'm certainly sorry to hear bout this. From what I've read here and from other sources, I suppose it was inevitable. I also think a more comprehensive strategy to attract more people to lease office space downtown is probably needed to address long-term problems.

[Dallascaper]

Originally Posted by Metro Matt

Dallas needs to think of a plan very quickly, otherwise it might not have a downtown at all (ala Detroit) in the years to come. You can't just keep converting every empty skyscraper to be residential. The demand simply isn't there, especially with an already over built "Uptown" just a stones throw across the freeway.

I commend Dallas for what it has done the past 10 years to attract people to downtown, but its going to take a lot more than just making it a play area for the 20 something crowd with a few bars/clubs lined along Main Street & resuscitating a dying arts district.

Dallas already has a master plan, and they are spending billions implementing it right now. The plan is being discussed over at DM.

As for re-purposing old skyscrapers, what do you suggest? I read somewhere that in the 50's, Dallas' office construction boom was second only to NYC - that's millions of sq ft of obsolete office space to either convert or demolish. I look forward to seeing those old buildings converted to residential, and hopefully most will retain their mid-century architecture.

And your "resuscitating a dying arts district" comment makes no sense.

[stoneclaw]

denial isn't just a river in egypt.

[Metro Matt]

Originally Posted by Dallascaper

Dallas already has a master plan, and they are spending billions implementing it right now. The plan is being discussed over at DM.

As for re-purposing old skyscrapers, what do you suggest? I read somewhere that in the 50's, Dallas' office construction boom was second only to NYC - that's millions of sq ft of obsolete office space to either convert or demolish. I look forward to seeing those old buildings converted to residential, and hopefully most will retain their mid-century architecture.

And your "resuscitating a dying arts district" comment makes no sense.

Ok...maybe I worded it wrong & should have said a stagnant arts district. Does that make you feel any better or change the fact?

[Dallascaper]

Originally Posted by Metro Matt

Ok...maybe I worded it wrong & should have said a stagnant arts district. Does that make you feel any better or change the fact?

Stagnant based on what? Certainly not based on development.

[Metro Matt]

Originally Posted by Dallascaper

Stagnant based on what? Certainly not based on development.

Stagnant based on low street level activity & no real connection with downtown proper to speak of. That whole area might as well been built as just another high rise office park out in the suburbs somewhere the way its connected to downtown right now. Does DART have any future plans on addressing this or will there be any sort of feasible pedestrian friendly infrastructure implemented into the districts design to better connect with surrounding neighborhoods? Inquiring minds would like to know...