Goldman Sachs Picks Hillwood Urban to Develop $500M Dallas Hub

Goldman Sachs’ new Dallas office will be its largest outside New York City. Dallas skyline image by Art Wager/iStockphoto.com

Goldman Sachs has chosen Hillwood Urban as the developer of the financial services company’s new $500 million, 800,000-square-foot regional hub in Dallas, the Dallas Business Journal reported.

Construction should be under way later this year, with employees moving in by 2027, Aasem Khalil, a partner at Goldman Sachs and head of the Dallas office, told the DBJ.

The building, which reportedly has been scaled back by about 10 percent from the original plans for 900,000 square feet, will nonetheless be Goldman Sachs’ largest office outside New York City, as well as one of the Dallas market’s largest office projects in decades.

The 3-acre campus on North Field Street, which will also include an adjacent 1.5-acre park, is the first phase of NorthEnd, a 3.8 million-square-foot, 11-acre development planned by Hunt Realty Investments.

The building’s amenities will include a cafe and marketplace dining, conferencing and collaboration spaces, a fitness center and underground parking. The building is intended to achieve LEED and WELL Building Platinum certifications.

Tapping into talent

Goldman Sachs will both create additional jobs at the new regional hub and consolidate current workers in North Texas, primarily employees at Trammell Crow Center, but also some from Goldman Sachs offices in Irving and Richardson.

In early December, Goldman Sachs chairman and CEO David Solomon told the annual meeting of the Dallas Citizens Council that Dallas has become his company’s “second most significant hub,” the Dallas Morning News reported. He added that the expansion is intended to tap into the North Texas talent pool, “hiring all sorts of people across all of our businesses.”

Neither Hillwood Urban, Goldman Sachs nor project architect Henning Larsen Architects responded to requests from Commercial Property Executive for further comment.

Less than two weeks ago, KDC broke ground on an 850,000-square-foot office campus for Wells Fargo in Irving, Texas. That $200 million project is scheduled for completion by the end of 2025.

Although office leasing in metro Dallas fell 27.1 percent year-over-year and year-to-date net absorption was a negative 587,000 square feet, Dallas leads the nation in job and population growth, so office tenant demand remains strong, according to a first-quarter report from JLL.

The Dallas CBD has a 32.9 percent total office vacancy, on a 27.1 million-square-foot inventory, also per JLL.