Dallas-based Dean Foods will relocate from its current location at 2515 McKinney Avenue into 240,000 square feet of space inside Cityplace, also in Dallas. The move is expected to take place in the first quarter of 2010.
"We are pleased to be able to relocate our offices within Dallas city limits. Many factors worked in our favor, including the real estate market, space availability and other economic elements," said Gregg Engles, chairman of the board and chief executive officer of Dean Foods. "The city of Dallas is our home, and we are pleased to remain here and continue our many civic and community partnerships."
In a statement, Dean said it is moving because the company has outgrown its current workspace, and new space is needed to address the company’s changing needs.
The lease will take occupancy at Cityplace to about 80% from about 60% now, said Sarah Payne, vice president at Stream Realty Partners, which handles leasing in the building. Employees will begin moving in December and the move will be phased in through March, Payne said.
"This was a huge win for the City of Dallas to keep them in the city because they looked all over," Payne said.
She said Dean Foods considered existing space and build-to-suits in the Legacy/Frisco area, as well as other buildings downtown. Brokers familiar with the search also said Dean Foods considered Fountain Place and Bank of America Plaza among other downtown buildings with significant square footage available.
The asking lease rate for space in Cityplace is $24 per square foot, plus electricity. Dean Foods will occupy floors 34 through 40 in the 42-floor, 1.2-million-square-foot building. Dean Foods occupies about 150,000 square feet at its current location.