CBRE, the world's largest brokerage firm by revenue, plans to move its Dallas headquarters to the building next door that once housed the now-defunct flexible workspace concept Hana.
The company has already signed a lease agreement regarding its expansion into space. 2121 N. Pearl Street Later this year, it will include “headquarters staff and some other corporate employees,” a spokesperson said. The announcement comes as CBRE plans to build a new headquarters tower in the same Uptown Dallas area. leave on hold Due to the economic situation, CoStar News first reported in December.
The decision is a high-profile example of real estate development decisions being rolled out across corporate America as rising interest rates and the highest inflation in decades drive up the cost of implementing planned projects. .
For CBRE, the move to the Pearl Street space is just the latest in a game of corporate musical chairs the company has played since moving its headquarters to Dallas.
In 2020, CBRE Head office relocated from Los AngelesWe have relocated to our existing office in Uptown Dallas, where we have been based for over 30 years. 2100 McKinney Avenue This is a so-called cost cutting measure.
In 2021, CBRE entered into an agreement with the city and state of Dallas to help secure economic incentives in exchange for an investment in a new 750,000 square foot office tower. 2401 McKinney Avenuethe site of Trulac's upscale seafood restaurant.
The tower was to be developed by Dallas-based Trammell Crow, the U.S. development arm of CBRE, but rising interest rates and inflation have stalled development. CBRE had planned to move its global headquarters and Dallas offices, including Trammell Crow, Advisory and Global Workforce Solutions, to the proposed tower at 2401 McKinney, but office market conditions has changed significantly since those plans were developed, the spokesperson said.
“The True Luck site is one of the premier office development sites in the United States, and Trammell Crow Company will develop the site when office market conditions are right,” a CBRE spokesperson said in an email Monday. We plan to do so.” “Once construction begins, the building will take several years to develop, so it is likely that our global headquarters and the majority of our Dallas-area operations will be located at 2401 McKinney in the future.”
Meanwhile, a spokesperson said CBRE continues to honor its commitments under incentive agreements with the state of Texas and the city of Dallas. These state and local incentives are tied to job growth and related metrics for the company, which is headquartered in Uptown Dallas, and are not tied to a specific address, a spokesperson said.
CBRE declined to answer questions about its headquarters plans beyond a prepared statement.
CBRE plans to occupy approximately 67,000 square feet at PwC Tower in the Park District. 2121 Pearl Street Space that used to be held Mr. Hana from the company's flexible workspace department After CBRE invested in the New York-based company, before CBRE integrated it into its Industrious brand in 2021 Coworking company.
Trammell Crow Co. developed the Park District adjacent to Uptown's Klyde Warren Park on behalf of MetLife. The building is adjacent to CBRE's current headquarters. 2100 McKinney Avenuewhich will continue to be used by CBRE.
“Employees from the local Dallas advisory firm and the local Trammell Crow Company will continue to work beyond 2100 McKinney,” a CBRE spokesperson said.
A little more than a week ago, CBRE executives told investors on a fourth-quarter earnings call: The development pipeline was shrinking The project was put on hold as CBRE CEO Bob Salentic said there would be a mild downturn. These projects coming out of the pipeline were not expected to break ground in the next 12 months.
The statement appears to be referring to CBRE's development site, which currently houses seafood house Truluck's, but the company did not respond to a media request from CoStar News seeking additional information regarding these comments.
CBRE has made the decision to put the project on hold in order to preserve PwC Tower and its current headquarters in Uptown Dallas. Center for new office construction In Dallas. Goldman Sachs plans to formally begin building a large-scale regional hub by this spring.
Construction is expected to begin soon on the adjacent Perot Museum of Nature and Science. The next evolution Just as nearby Goldman Sachs launches a project.
