Lockton’s Dallas Landlords Shell Out for Tenant Improvements

Lockton Companies’ landlords are planning to shell out millions to outfit the insurance company’s new offices.

Granite Properties plans to pay $7 million to improve 61,000 square feet of office space at Granite Park 6 in Plano, according to a state filing. Another filing shows Hillwood will spend $9 million building out a space of the same size at Victory Commons One in Uptown.

The Granite Properties build-out works out to $115 per square foot; the Hillwood project works out to $148 per square foot. Both projects are expected to start in June and be completed by April 2026.

The Kansas City, Missouri-based insurance brokerage inked a deal to lease 53,000 square feet (two floors) in the 19-story Granite Park 6, at 5525 Granite Parkway, just a few weeks after signing a deal to lease 100,000 square feet at Victory Commons One, at 2601 Victory Avenue.

The 422,000-square-foot Granite Park 6 was delivered in 2023. The 350,000-square-foot Victory Commons One was delivered in 2022.

Lockton is exiting its spaces at KBS’ Legacy Town Center II in Plano and Pacific Elm Properties-owned 2100 Ross Avenue in Dallas’ Arts District.

While some companies are downsizing, Lockton is one of the rare firms that’s expanding its space amid hybrid work norms and economic uncertainty.

The firm’s leases are also examples of the “flight-to-quality” trend gripping the office market. To lure employees back into the office, companies are relocating to brand-new offices with tons of high-end amenities.

Despite Dallas’ 27.7 percent office vacancy, the office market had its best first quarter since 2019, according to JLL.