Amazon Expands to 240K sf at Piedmont’s Two Galleria Tower

27 August 2024

Amazon has renewed its lease at a prominent North Dallas high-rise.

The e-commerce giant signed a five-year renewal at Two Galleria Tower, reinforcing the company’s long-standing presence at 13455 Noel Road and providing a boost to the North Dallas office market, which has been grappling with shifting workplace trends and economic uncertainties, the Dallas Business Journal reported.

Landlord Piedmont Office Realty Trust said in its second quarter results that it had leased “over 240,000 square feet through 2030 for an e-commerce retailer at Dallas Galleria Office Towers,” which would be more than half of the 454,00-square-foot building and one of the biggest office leases in Dallas this year.

The Seattle-based company previously occupied over 100,000 square feet in the 13-story building, where it first became a tenant over a decade ago, opting for the Galleria complex instead of a last-minute deal in Plano’s Legacy West. Since then, the company has expanded its footprint in the tower, starting with over 88,000 square feet in 2014, and then increasing it by another 20,000 square feet in 2020. CBRE is handling leasing at the building.

The company has also boosted its Dallas workforce, adding 600 corporate and tech positions. Its North Dallas lease contrasts with broader industry trends, where many companies are reevaluating their office space needs due to the rise of hybrid work models.

Atlanta-based Piedmont acquired the buildings known as Dallas Galleria Office Towers, including the affiliated parking lots, for about $400 million in early 2020.

Amazon’s continued occupancy at Two Galleria Tower could influence Beck Ventures’ $5 billion Dallas Midtown, a planned redevelopment of the former Valley View Center mall. That plan, which includes thousands of apartments, plus office and retail, has been stalled for years.

“Companies like Amazon are recognizing the centrality that this area of Dallas is,” said Beck Ventures CEO Scott Beck, noting its location at the crossroads of Interstate 635 and the Dallas North Tollway.