News Article | 2/23/2007

Newly completed Victory Plaza lures tenants

Three new office tenants are joining the party at Victory Plaza.

The two-building, 220,000-square-foot complex sits adjacent to American Airlines Center at Hillwood’s Victory Park. It includes 155,000 square feet of office space and 65,000 square feet of retail space.

New tenants at Victory Plaza include Carson Private Capital, which has leased 8,000 square feet; Schlegel Sports, which signed on for 6,400 square feet; and Public Strategies, which is taking 3,300 square feet.

Hillwood itself also is now on board. Led by Ross Perot Jr., the company just left Lincoln Centre to take occupancy of 54,000 square feet in Victory Plaza. It occupies the second and third floor of the west building.

The buildings book-end a technology-oriented public plaza, designed to be the pulsating heart of the Victory Park development.

Bill Brokaw, vice president of office leasing at Hillwood, says more office tenants want to be closer to the action.

“All around the country, urban activity is on the rise, and these types of developments are in demand,” he said. “Businesses are looking for an urban lifestyle, not just a workspace. They want an exciting location where they can entertain clients at night.”

Activity ramps up

Activity on the plaza is just starting to ramp up. WFAA-TV’s (Channel 8) newscasts from the station’s just-launched ground-floor studio are drawing traffic during arena events, and the ultra-luxe N9NE steakhouse recently opened its doors across from the studio. Other Victory Plaza retail space is leased, but those tenants won’t be moving in until later this summer.

On the office front, Carson Private Capital recently moved into its space on the fifth floor of the east plaza building. The private equity investment firm sold a building it occupied in Uptown to be part of Victory Park.

Carson’s top floor location means its office boasts a balcony overlooking the plaza. The balcony is an amenity that will give the office users prime views during special events.

Space at Victory Plaza doesn’t come cheap. Tenants are paying between $35 and $38 per square foot.

Schlegel Sports, a marketing firm that also owns several minor league sports teams, is currently based in North Dallas. The company will move to Victory Plaza in April. Kirby Schlegel, chairman and CEO, says the Victory Plaza location is worth the premium rents.

“It will definitely give us a lot of exposure,” he said. “It’s also important for our company to be in the middle of the sports and entertainment center of Dallas.”

Public Strategies, a public relations firm, is relocating to Victory Plaza from Las Colinas. Its lease was brokered by Lance McIlhenny and Carl Ewert with the Staubach Co.

Going urban

There are a number of reasons tenants are going urban, the brokers say. Being part of a dynamic new development can be a positive when it comes to hiring and keeping young talent, according to Ewert.

“These tenants like the idea, from a recruiting and retention standpoint, of being on the cutting edge of the urban revitalization going on in major cities around the country,” he said.

One unique feature at Victory Plaza is the Victory Media Network, 11 massive high-resolution video screens that total more than 4,600 square feet. Some of the screens, which will display a mix of video art and advertising, are already running in test mode. The network will be officially launched on March 23.

Victory Plaza is now 55% leased. About 50,000 square feet of retail space is available in the east building and about 20,000 square feet still is left in the west building.