Texas Capital Bank Expands to 200 KSF at Dallas Tower

2000 McKinney Ave. Image courtesy of Stream Realty Partners

With an eye toward future growth and workplace pride, Texas Capital Bank has inked a lease expansion that will increase its Dallas headquarters at 2000 McKinney Ave. to a total of 200,000 square feet.

The new agreement with Union Investment Real Estate GmbH, owner of the approximately 450,000-square-foot office tower, also calls for the renaming of the building to Texas Capital Center.

Sited in the center of the coveted Uptown Dallas market, 2000 McKinney is a premier, LEED Gold-certified office destination featuring a desirable list of amenities that includes a fitness facility, a café and a formal restaurant.

Texas Capital has been a fixture on 2000 McKinney’s tenant roster since relocating its headquarters to a 100,000-square-foot space in 2008, the same year the 21-story high-rise reached completion at the hands of developer Lincoln Property Co. The bank maintains its executive and administrative offices at the property.

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Texas Capital relied on Stream Realty Partners’ Craig Wilson and Randy Cooper to orchestrate the new 15-year lease with Union Investment, which became the landlord of 2000 McKinney via the $226 million acquisition of the office asset in 2016. Under the terms of the lease agreement, Texas Capital’s footprint will expand to include a total of seven floors, two of which the bank currently occupies and will submit to a renovation. The remaining contiguous floors will undergo a buildout program due to get underway in early 2023, all with the goal of creating a headquarters that is a positive environment and conducive to collaboration.

Cushman & Wakefield represented the ownership in the lease transaction. Construction at Texas Capital’s new headquarters is scheduled to reach completion by the end of 2024.

Keeping the office market afloat

The Dallas-Fort Worth office market has not regained its pre-pandemic health, but it is moving toward recovery, courtesy of the area’s booming jobs market. “Driving the office sector, jobs in finance and professional and business services expanded by 154,000 since the end of 2019—an increase of 14.5 percent, which has fueled office leasing and construction,” according to a third quarter 2022 report by Avison Young.

Dallas-Fort Worth’s office market continues to benefit from expansions, like Texas Capital’s, as well as relocations. In June 2022, construction and mining equipment giant Caterpillar Inc. announced plans to move its Chicago-area global headquarters to the suburban Dallas city of Irving, Texas.

The forecast for the Dallas-Fort Worth office market is positive. As noted in the Avison Young report, “The flight to quality should continue as buildings deliver and tenants see an opportunity to attract teams back to the office with upgraded space.”