From law firms to tech giants, tenant improvement allowances have become a key battleground in Texas’ evolving office market.
Landlords across Texas are shelling out tens of millions to lure and retain top-tier tenants, as firms flock to amenity-rich, next-generation office space.
In Dallas, Deloitte is undertaking a $35 million, Gensler-designed build-out costing $312 per square foot at Granite Properties’ 23Springs in Uptown, marking a major departure from its longtime downtown home.
Meanwhile, in Houston, Skadden Arps will get $9 million to build out its space at Hines’ Texas Tower, with a per-square-foot tab of $214. The 1.2 million-square-foot tower is now 99 percent leased, showing the strength of the “flight to quality” trend.
In Austin, IBM is downsizing but upgrading, with a $20 million lab build-out at Karlin Real Estate’s Parmer Impact Lab, coming in at $425 per square foot.
As legacy buildings languish with high vacancies — downtown Houston’s rate is 25.8 percent, for example — these deals underscore how top employers are leveraging landlords’ willingness to invest in modern, amenity-filled environments to attract employees back to the office.
Here’s what else happened in Texas real estate this week.
- A court-appointed receiver accused Austin-based CCG Capital Group of operating a Ponzi scheme through its Pride of Austin High Yield Fund, using new investor money to pay earlier returns and fund personal expenses. The firm allegedly overstated its capital, misrepresented insider loans, and failed to file taxes for years, with $10.1 million in creditor claims now pending.
- Houston investor Ali Choudhri was taken to jail by U.S. marshals after repeatedly failing to provide complete financial disclosures in Jetall Companies’ bankruptcy case, prompting a judge to call his behavior a pattern of stalling. Despite Choudhri’s claims of limited access to records due to foreclosures, the judge rejected his excuses, noting his delayed filings and other ongoing legal troubles, including a separate Department of Justice case.
- DJE Texas Management Group is facing foreclosure on a San Antonio office-to-residential conversion after allegedly defaulting on an $18.25 million loan tied to the Travis Building, which was redeveloped into 63 apartments and commercial space. The potential foreclosure highlights the financial and logistical challenges of adaptive reuse projects, despite support from historic tax credits and $5 million in energy-efficiency funding.
- A legal petition filed by Irving resident Ada Pimentel accuses the Irving-Las Colinas Chamber of Commerce of secretly negotiating with Las Vegas Sands to acquire the former Texas Stadium site without public transparency. The filing seeks testimony and records related to the proposed development just weeks ahead of a heated local election, as public opposition to the project intensifies.
- Elon Musk’s vision of a South Texas company town is nearing reality as residents of Starbase, mostly SpaceX employees and their relatives, vote on whether to formally incorporate the SpaceX-dominated enclave near Boca Chica in Cameron County as a city. If approved, Starbase would become a Type C municipality with its own government, giving Musk’s company control over civil services and infrastructure, further cementing his influence in Texas.
- Creation Equity has secured approval for a $1.3 billion mixed-use development in McKinney, strategically positioned at the junction of U.S. 75 and the upcoming U.S. 380 bypass. Dubbed Long Branch, the 155-acre project will include 1,600 apartments, office space, retail and a hotel, timed to align with major infrastructure upgrades expected to drive growth in the area.
—Rachel Stone
Read more
City to pay Ray Washburne $52M for old newspaper building
$15M listing hits market as luxury sales take holiday breather
Viral closet owner Theresa Roemer joins Nan & Company
