A division of Japan’s largest bank is bucking the flight-to-quality trend with a lease renewal at a 40-year-old building in Las Colinas.
After MUFG Bank moved to a 35,000-square-foot office at VariSpace in 2020, the space is getting a $500,000 refresh, according to a recent state filing.
The money will be spent on adding offices and conference rooms. The project is expected to be completed before the end of the year. The design firm on the project is Wylie-based Oler Senitz.
VariSpace Las Colinas, at 901 West Walnut Hill Lane, was built in 1983 and renovated in 2019. The three-story building spans 305,000 square feet and is also home to tenants Verizon, RumbleOn and Akili.
The lease renewal represents a divergence from the office trend known as “flight to quality,” which entails pivoting to newly built, trendy spots with lots of amenities.
The trend has created a larger divide between trophy assets and vintage office space, resulting in an abundance of outdated, empty space. Dallas-Fort Worth ranked third in the nation in terms of its unused office space, which reached 52.8 million square feet during the second quarter, the San Antonio Business Journal reported, citing an analysis by Switch On Business.
Landlord Vari recently added a 7,000-square-foot cafe and a 10,000-square-foot fitness center to its Las Colinas building.
The Coppell-based office furniture purveyor and operator of multiple office spaces, purchased and revamped the property in 2019.
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The office’s location provides easy access to State Highway 114, President George Bush Turnpike and DFW Airport. It’s about 15 miles northwest of downtown Dallas. Irving-Las Colinas is a hub for corporate offices and headquarters, serving as home base to more than 50 companies, including Caterpillar and McKesson.
Vari also has a 380,000-square-foot location in Southlake, at 1900 West Kirkwood Boulevard, and 170,000 square feet in Coppell, at 450 North Freeport Parkway.