Friday, June 14, 2024 Jun 14, 2024
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Commercial Real Estate

Law Firm Shuffles Downtown Leases

Bank of America Tower just won a big legal tenant.

Texas-based law firm Kane Russell Coleman Logan PC just inked a brand new lease in downtown and will be moving its headquarters from Thanksgiving Tower to Bank of America Plaza.

“Our move to Bank of America Plaza enables us to maintain our commitment to the Dallas CBD, and provides our attorneys, staff and clients with covered parking at above-market parking ratios, dining, wellness and other high-quality amenities available only in buildings with significantly higher rental rates,” said Raymond Kane, co-founder of the firm and director of the real estate group.

After 26 years at Thanksgiving Tower, the firm will be taking a 45,000-square-foot space between the 51st and 52nd floors of one of the most recognizable buildings in the Dallas skyline. The lease includes an expansion option on the 51st floor that would allow the firm to take up the last section of space on that floor of BoA at any time during its lease.

JLL Managing Director Brooke Armstrong, Executive Vice President Andy Leatherman, and Associate Maggie Birnbach represented the KRCL. Peloton’s Joel Pustmueller and Russ Johnson represented the landlord, Metropolis Investment Holdings.

The firm cites plans for growth as one of the main reasons that will eschew its home of nearly three decades.

“With an eye towards the future, this completely modernized space and cutting-edge amenities are critical to support our continued growth. Our move to Bank of America Plaza enables us to maintain our commitment to the Dallas CBD,” Kane said.

Uptown, the Arts District, and the Central Business District have been and continue to be the go-to destinations for law firms in the metro. According to JLL data, users are compressing their footprints to limit the hit of rising Class A rents.

In line with this trend, KRCL cut its footprint from 56,000 square feet at Thanksgiving Tower to 45,000 at Bank of America Tower.

Kane cites fiscal efficiency as a major reason for the cut and move to BoA.

“We’re more of a middle-market firm that tries to appeal to rate-conscious consumers of sophisticated legal work, so we’re really trying to watch our bottom line so we can control our density on our rate pricing to our clients,” Kane said.

One of the reasons KRCL was able to decrease its lease by 11,000 square feet was because BoA has a conference center for its tenants to use. That extra 11,000 at Thanksgiving Tower was mostly tied up in an event space that Kane says wasn’t used enough to merit keeping.

Nickels and dimes aside, one of the things Kane’s firm is most excited about is proximity to the courthouse.

“The reaction from out litigators when we finally selected the Bank of America Tower, they were all giddy because they can walk to the courthouse now,” Kane said.

“I don’t know how much people truly litigate anymore that they have to go down to the courthouse day in and day out, but lawyers like to be close to the courthouse.”