Another massive sublease has hit the office market in Dallas-Fort Worth.
Pharmaceutical firm AmerisourceBergen listed its entire 300,000 square foot property at 5025 Plano Parkway in Carrollton for sublease, according to a CoStar listing. AmerisourceBergen is the only tenant of the four-story building.
It is the second-largest sublease being marketed in Dallas-Fort Worth behind Uber’s 350,000 square feet at the Epic in Dallas’ Deep Ellum neighborhood.
Dallas-based developer Billingsley Company built the property and is still the sole owner of the complex. It was developed as a build-to-suit project for AmerisourceBergen in 2019. It is a part of Billingsley’s Austin Ranch mixed-use project that includes office, multifamily, retail and industrial properties spread across Lewisville, Carrollton and The Colony.
AmerisourceBergen did not immediately respond to a request to 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 whole building is being marketed doesn’t necessarily mean the company is planning to vacate the entire building. The firm is likely marketing the whole building sublease to cast a “wider net,” said Steve Triolet, vice president of research and market forecasting for Partners Real Estate.
“It’s very common that if you have a space and you know you’re not going to shrink to zero square feet, you’re going to put it all out 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’re going to have to break it up. Unless someone takes the whole thing, which is highly unlikely.”
No price per-square-foot estimates have been released, but the sublease price could be a 25 to 50 percent discount of the current price, Triolet said. The Colony and Frisco submarkets have about 5.5 million square feet in total office space with 20 percent of that being vacant, according to an Avison Young report.
Industries like healthcare, professional services, tech and general finance are leading the market in sublease space, Triolet said. Those industries historically have had high amounts of office space but are downsizing as more companies shift to remote work.
About 7.6 million square feet of sublease space is available across Dallas, Triolet estimates. That’s in addition to the nearly 47 million square feet of direct vacancies across the city’s 213 million square feet of total office inventory, according to JLL.
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