On April 11, Granite Properties, a full service real estate firm specializing in office assets, officially opened their newest project located at 601 State Street in Southlake. Named Granite Place II, the property is a 5-story, 143,500 SF space located easy walking distance from Southlake Town Square. Perhaps unsurprisingly, Granite Place II complements Granite's pre-existing Granite Place I office building. The asset was constructed with the assistance of equity partner N5B Capital, a family office that is planning to move its HQ to the space. DPR Construction served as general contractor and Corgan served as architect.
Granite Place II has no shortage of features and amenities. Designed with LEED energy and Fitwel health & safety standards in mind, the asset is complete with touchless doors and clean air HVAC systems. Some amenity highlights include:
- Outdoor workspaces complete with wifi
- Fitness center
- Grab-and-go food service
- Floor to ceiling windows
- Covered parking
- Conference center
- Move-in-ready spaces up to 5000 SF
Southlake Mayor John Huffman spoke to the economic opportunities offered by a state-of-the-art office building coming online in his city. I'm sure many real estate professionals can scarcely believe a local government official would speak so highly of developers:
The vision for Southlake has always included new, high-quality office buildings, such as Granite Place II at Southlake Town Square. Attracting top talent and businesses like N5B Capital to Southlake underlines our long-standing commitment to recruiting and retaining businesses that help our City thrive and fuel our economic growth.
Granite Place II is opening with 82% vacancy, with N5B being one of the two tenants. However, this is not to indicate a definitive lack of demand, seeing as Granite Place I is currently operating with only 2% vacancy. Will Hendrickson, Senior Managing Director at Granite Properties, is optimistic about the demand for the project, stating:
We’re thrilled to deliver a new Class-A office destination in Southlake, TX, and delighted to welcome our customers. Granite Place II puts the needs of the modern workforce, and their wellbeing, first. Together with the great shops and restaurants at Southlake Town Square, the building is ideally positioned to help companies attract top talent and grow their businesses.
N5B Capital, the family office of the Goosehead Insurance founder, plans to further cultivate its relationship with Granite Properties. Mark Jones, CEO of N5B Capital, stated, "we are extremely excited to be partnering with Granite Properties... We look forward to a long and successful relationship with Granite Properties on future projects." Goosehead currently leases space from Granite Properties' Weslayan Tower in Houston, having previously leased from another Granite property in Houston.
Granite Place II seems to do everything right in terms of modern office: flexible coworking spaces, plenty of amenities, a walkable location, and a strong local economy. As such, the performance of the asset will likely serve as a valuable litmus test for the DFW office market. Granite Properties certainly believes in the market: 4.4mm SF of their 12mm SF office/retail portfolio is located in the DFW. Additionally, DFW is included in their 2mm SF of developments currently under way.