JVP Development Breaks Ground on $37M Frisco Office Tower Despite 51% Cost Surge
Updated
Updated · Bisnow · Aug 1
JVP Development Breaks Ground on $37M Frisco Office Tower Despite 51% Cost Surge
1 articles · Updated · Bisnow · Aug 1
Summary
$36.9 million is going into a 115,000-square-foot Class-A office building in Frisco that JVP self-financed and started in early July without any signed tenants.
JVP says the speculative bet rests on Frisco's positive absorption, rent growth and interest from users seeking 150,000 square feet or more, even though local asking rents trail Dallas' top submarkets.
The project stands out because office construction nationally has fallen to a 14-year low and is down 84% from 2019, while high rates and expensive capital have pushed most developers to demand preleasing.
DFW remains an outlier with a roughly 3 million-square-foot office pipeline, and the building is the first office piece of JVP's $3 billion, 112-acre The Mix mixed-use development.