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Water District Office Space Lease

Update: 11/08/2013 09:10AM For clarity, this is not a commentary on the rate.  This is only information for residents.  All feedback is welcome.  If you have access to comps within 5 miles of Castle Hills, please feel free to post or email them to me at patrick.kelly@castlehillsgovernment.com.

As of September 26th, 2013 the DCFWSD 1A entered into an agreement with the developer to extend the lease of office space in the plaza by an additional five years.  The signed lease can be found here (2013 Lease Agreement). An overview of the effort to identify comps can be found here (2013 Lease Agmt Comps).

 

Duration of Lease: 5 years
Size of Space: 5,542 Square Feet
Current Rent: $25.00 per square foot
Pass Through Costs: $6.24 per square foot
Total Monthly Taxpayer Cost: $14,427
Total Yearly Taxpayer Cost: $173,000

 

This is one of the largest expense we pay as residents of Castle Hills.  Please feel free to examine the documents and comment below.


Update2: 11/10/2013 02:PM I received comps from commercial real estate broker and neighbor Torrey Littlejohn. The comps she sent over are below and her email (posted with permission)  is underneath the comps :

Castle Hills Comps (within 5 miles of current offices)
Far North Dallas submarket

Patrick,

I’m a commercial real estate broker for Jones Lang LaSalle and I do a lot of work for office users near our neighborhood. I’ve attached the comps for your review.  There is a wide range of pricing due to the unique nature of the properties that surround us and please note that the rental rates are quoted NNN, + E or FS.  “NNN” means you need to add expenses  and electricity to the rate, “+E” means the expenses are included in the rate but not electricity, and “FS” means the expenses and the electricity are included in the rate.  It appears that the rate you all are getting is a NNN rate.

I’ve also attached a report for Far North Dallas office for 3Q13. This reports includes an average of space in the Upper Tollway, Frisco, Addison, Carrollton areas. It averages class A and B properties.  You are paying the equivalent of $31.24 psf ($25.00 NNN rent and $6.24 opex).  This rate is in line with the Class A office rates in the Legacy/Frisco Area but high for comparable property in other Carrollton space.  However, because this space is in a mixed use development I would expect the office space to command a premium due to the amenity base.

Please let me know if you have any questions. Thanks for all you’re doing on our behalf with the Castle Hills government. I am more than happy to be a resource for you/the neighborhood if you have additional questions. I can even review the lease if you’d like.

Regards,

Torrey

 

 
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