The Dallas-Fort Worth office market has seen another massive sublease.
Pharmaceutical company AmerisourceBergen has listed its entire 300,000-square-foot property at 5025 Plano Parkway in Carrollton for subletting, according to a CoStar listing. AmerisourceBergen is the sole tenant of the four-story building.
It is the second largest sublease in Dallas-Fort Worth behind Uber’s 350,000-square-foot sublease at Epic in Dallas’ Deep Ellum neighborhood.
Dallas-based developer Billingsley Corporation built the property and remains the sole owner of the complex. It is a custom project developed by AmerisourceBergen in 2019. It is part of Billingsley’s Austin Ranch mixed-use project, which includes office, multifamily, retail and industrial properties in Lewisville, Carrollton and The Colony.
AmerisourceBergen did not immediately respond to a request for comment on the sublease. The Pennsylvania-based company also has offices in Frisco and Richardson. JLL and Stream Realty Partners are marketing the space, according to CoStar.
Just because the entire building is for sale doesn’t necessarily mean the company plans to vacate the entire building. Steve Triolet, vice president of research and market forecasting at Partners Real Estate, said the firm may market subleases of entire buildings to cast a “wider net.”
“It’s very common that if you have a space and you know you’re not going to shrink to zero square feet, you’ll put everything in there just to see who wants what,” he said. “Depending on how the market reacts, you adjust accordingly. It’s a single-tenant building, so you have to take it apart. Unless someone takes the whole thing, which is highly unlikely.”
Price estimates per square foot have not yet been released, but sublease prices could be 25% to 50% lower than current prices, Triolet said. According to the Avison Young report, the Colony and Frisco submarkets have a combined office space of approximately 5.5 million square feet, 20 percent of which is vacant.
Industries such as healthcare, professional services, technology and general finance are leading the way in subleasing, Triolet said. These industries have historically had plenty of office space, but they are downsizing as more companies move to remote work.
Triolet estimates that there are approximately 7.6 million square feet of sublease space in Dallas. The city’s 213 million square feet of total office inventory also has nearly 47 million square feet of immediately vacant space, according to JLL.
