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Southwestern Health Resources offers 115K sf sublease near Dallas
Space in Pillar Income Asset Management buildings listed for $11.50 per square foot
Southwestern Health Resources wants to reduce its DFW office footprint.
The Farmers Branch-based medical group listed 115,000 square feet for sublease at Browning Place I and II, at 1601 and 1603 Lyndon B. Johnson Freeway. Pillar Income Asset Management owns the buildings.
The lease runs through July 2031, and the space is being offered for $11.50 per square foot. JLL’s MaryMichael McCartin, Paul Whitman and Pat McDowell have the listing.
“Back-office medical related tenants are one of the key industries that have been placing lots of office space on the sublease market,” said Steve Triolet, senior vice president of market research and forecasting with Partners Real Estate.
At 1601 Lyndon B. Johnson Freeway, nearly 20,000 square feet are available on the second floor. About 24,000 square feet are available on each of the third, sixth, seventh and eighth floors. At 1603 Lyndon B. Johnson Freeway, 20,000 square feet are available on the second floor; 24,000 square feet are available on the third floor.
Browning Place I was built in 1982 and renovated in 2018. It is eight stories and spans 182,700 square feet. Browning Place II was built in 1985. The eight-story building spans 201,400 square feet. In 2023, Browning Place I was valued at $19.7 million, and Browning Place II was valued at $22.2 million, according to the Dallas Central Appraisal District.
This listing adds more square footage to DFW’s oversaturated office market. In December 2023, office vacancy was 24.5 percent, up from 23.2 percent the previous year. Rent rates, however, remain stable. The average asking rent was $29.67 per square foot at the end of last year, up slightly from $29.28 per square foot the year before.
Sublease space in DFW is down from peak levels but still hovers at about 10.5 million square feet, according to Partners Real Estate.
Southwestern Health Resources was founded by UT Southwestern and Texas Health Resources and operates 31 hospitals throughout North Texas.