Dallas has long been known as the financial-services capital of the Southwest, and many banks, insurance companies, brokerages, and investment firms have offices in the city. But, there’s little doubt that ground zero for Dallas financial companies is Uptown’s The Crescent mixed-use complex, which reinforced its reputation the other day by signing office leases with five new banks and wealth management firms.
Committing to space at the 1.13 million-square-foot Office Towers portion of the complex were Wells Fargo Securities, which took 13,962 square feet; PNC Bank (10,952 feet); Alex Brown, a division of Raymond James (9,064); BMO Harris Bank (3,700); and West Texas National Bank (1,799). The new leases mean The Crescent now boasts a total of 117 financial firms, representing 80 percent to 85 percent of its office tenants.
“Back in 1989, when we had maybe 10 financial firms there, I felt like we might be getting too many. So I asked the firms and they said, ‘No, we like the interaction, talking about deals, taking advantage of all the amenities,'” recalls John Zogg, managing director of Crescent Real Estate Equities LLC, which manages and leases the property for owner Crescent TC Investors LP.
Current tenants at the 31-year-old complex “also enjoy being in a hub with dual-feed power—the only building with that in Uptown,” Zogg says. That’s important especially to “traders”—hedge funds, private-equity firms, family offices—who are active in the financial markets all day, Zogg says, because power from a second substation is available if and when the primary source goes down.
Among the “best-in-class” amenities luring financial tenants to The Crescent are 13 restaurants, retail stores including the Stanley Korshak boutique, and a spa and fitness center at Hotel Crescent Court, which is currently undergoing a $30 million renovation, Zogg says. The rest of the complex—three contiguous office towers, plus 165,000 square feet of atrium space for retail shops and offices—underwent a $33 million upgrade that was completed last year.
With overall occupancy at the 11-acre complex at 95 percent, Zogg adds, current lease rates for office space at The Crescent are $36 per square foot—up maybe 10 percent over the last three years.
Representing The Crescent in the five new lease deals was Tony Click, vice president of leasing for Crescent Real Estate Equities. Mitch Wolff and Joe Siglin of Newmark Knight Frank represented Wells Fargo Securities. Curt Starr of Fischer represented PNC Bank. Todd Brandon and Craig Wilson of Cushman & Wakefield represented Alex Brown. Charlie Morris of Avison Young represented BMO Harris Bank, and Russell Cosby of JLL represented West Texas National Bank.