As featured in “Bisnow”
Billy Wadsack, Bisnow, 14 August, 2025
In the article Some Older Offices Are Still Fighting For Tenants — And They’re Winning by Bill Wadsack for Bisnow, industry leaders share how well-located 1980s and 1990s office towers are thriving in Dallas-Fort Worth’s competitive market by embracing high-end renovations and hospitality-style amenities. While trophy office space continues to dominate, RREAF Holdings’ Chief Operating Officer Jeff Holzmann notes that opportunity also exists for older properties that can’t justify multimillion-dollar upgrades, especially when targeting tenants without front-facing operations. “You really care about your work environment,” Holzmann said, emphasizing that for the right price and company fit, the exterior or age of a building can matter far less than the quality of the space inside. Read more of Jeff’s insights below.
Trophy office space still dominates Dallas-Fort Worth, but a crop of 1980s and 1990s towers is holding its own, winning tenants with high-end renovations.
The upgrades go beyond cosmetics. In a market where trophy buildings have cut vacancy to 14.5% while nonprime space tops 19%, revamped vintage properties are closing the gap with hospitality-style amenities, fitness centers, upgraded lobbies and spec suites.
For investors, such projects — sometimes costing tens of millions — are often the only way to keep aging assets competitive in a Metroplex that’s attracting a bigger, more educated workforce and is on track to become the nation’s No. 3 metro by 2030.
Piedmont Realty Trust paid nearly $400M for the Galleria Office Towers in 2020 after CBRE Global Investors spent about $27M upgrading the trio of Reagan-Bush-era buildings. Coming out of the pandemic, Piedmont poured in another $9M, pushing the complex further into trophy territory.
Modernized facilities and a hospitality-style tenant experience, from sleek meeting rooms to a lobby coffee shop, have fueled demand.
“They rival any of the new Class-A stuff being built,” Colliers Executive Vice President Chris Wright said.
Nationally, the divide between trophy offices and the rest is widening. Trophy vacancy fell 30 basis points to 14.5% in Q2, while nonprime vacancy rose 10 bps to above 19%, CBRE data shows. With more occupiers planning to expand in the coming years, demand for top-tier space could climb further.
The Metroplex is on pace to overtake Chicago as the nation’s third-largest metro by 2030, a shift expected to spur job growth and office demand. That growth will draw a more educated workforce, and “those people are looking for quality and they’re going to find it,” said Jeff Holzmann, chief operating officer at RREAF Holdings.
The Galleria Office Towers were purchased by Piedmont Realty Trust in 2020 for nearly $400M.
To compete, older and Class-B offices need a hospitality-style overhaul, Wright said — renovations that can range from $1M to tens of millions of dollars. At a minimum, that means food service, a modern fitness center with locker rooms and an upgraded conference facility for tenants.
“Those are the three check boxes that you really have to put into place to even be considered as you’re chasing these tenants that are coming to the market to live,” Wright said. “Because your competitor next door is going to build those at a bare minimum.”
With more companies pushing return-to-office, older buildings are competing with the comforts of home. Cozy common areas with WiFi and outdoor courtyard workspaces have become popular upgrades, Wright said.
“Any of those creature comforts that you can add are very beneficial,” he said.
Spec suites are another tool for reviving older offices, giving landlords an edge in the race for tenants.
Across Texas, renovations have historically boosted occupancy and rents, a 2024 Partners study found. Before the pandemic, occupancy climbed an average of 500 basis points and asking rents rose $2.46 per SF within two years of upgrades.
But those kinds of increases are no longer guaranteed.
We appreciate and thank Bisnow, especially Billy Wadsack, for giving us the opportunity to speak about the Dallas Office space. To access the full article on Bisnow please click here.
