Shorenstein Acquires 356,000-SF International Plaza 3 in Dallas' Lower Tollway Submarket

Shorenstein Investment Advisers announced Nov. 13 that it has acquired International Plaza 3, an approximately 356,000-square-foot Class A office tower in Dallas' Lower Tollway submarket. The transaction is Shorenstein's fifth acquisition in Dallas over the past two years and builds on the firm's ownership of the adjacent International Plaza 2, which it acquired in September 2024.

International Plaza 3 Property Details

International Plaza 3 is a 13-story office tower along the Dallas North Tollway. The building recently underwent an extensive renovation that included upgrades to its lobby, conference facilities, café, fitness center and elevators.

The property is approximately 85% leased to a mix of tenants, including Wells Fargo Wealth Management, MassMutual and Colliers. The weighted average remaining lease term is approximately six years.

Shorenstein's Plans for the Dallas Office Tower

Shorenstein plans to add wellness amenities, an expanded lobby with a new coffee bar, a tenant lounge and a sports simulator game room. The firm also plans to structure formal tenant access to International Plaza 2's amenity package, which includes a full-floor food hall and the Lake House event center.

"Our established presence in Dallas and the submarket has given us a unique lens into the leasing momentum in the Lower Tollway area and the continued demand for high-quality, amenitized office space in the submarket," said Emily Chou, Vice President at Shorenstein. "That experience gives us strong conviction in International Plaza 3's rent growth potential. We see an opportunity to expand on the Property's recent improvements and offer a broader range of amenities for tenants."

Shorenstein said its ownership of International Plaza 2 provides real-time insight into leasing trends and tenant demand across Class A, Tier 1 amenitized properties in the Lower Tollway. The firm said that competitive set is approximately 94% leased, with only two available blocks capable of accommodating tenants that need more than two floors. Average asking rents exceed $50 per square foot on a triple-net basis, an increase of nearly 40% since Shorenstein's initial acquisition in the submarket two years ago, according to the firm.

"International Plaza 3 is emblematic of our continued strategy to acquire best-in-class assets in premier submarkets that generate both attractive cash flow yields and opportunistic total returns, a combination that is rare to find in commercial real estate," said Colby Wick, Chief Investment Officer at Shorenstein. "With a growing pipeline of high-quality office offerings and an extremely limited amount of investment capital for the sector, we are excited about the current investment environment."

Dallas Office Market Context

The acquisition comes as Dallas-Fort Worth office demand concentrates in higher-quality buildings. Regional office occupancy improved to 78.1% in the second quarter of 2026, up from 77.4% a year earlier, with the Lower Tollway and Central Expressway submarkets benefiting from tenant expansions, renovations and repositioned buildings. Transwestern reported 823,000 square feet of quarterly net absorption in the third quarter, with Class A vacancy improving faster than Class B vacancy for the second consecutive quarter.

The broader market remains bifurcated. JLL reported 500,551 square feet of year-to-date Dallas net absorption, total vacancy of 26.5% and Class A direct asking rents of $42.86 per square foot in mid-2026. BNP Paribas reported that DFW direct vacancy declined to 18.2% in the first half of 2026, while prime rents rose to $75.33 per square foot even as overall average rents slipped to $37.61.

Lower Tollway Submarket Fundamentals

Across the full Lower Tollway submarket, Transwestern's 2026 data shows approximately 27.1 million square feet of inventory, 6.56 million square feet of vacancy and a 24.2% vacancy rate, with average asking rents of $43.51 per square foot. The gap between those submarket-wide figures and the more than $50-per-square-foot asking rents in Shorenstein's Tier 1 competitive set reflects the pricing premium commanded by the highest-quality buildings.

JLL reported that rent growth was led by trophy assets and that rising tenant-improvement costs were supporting higher pricing for premier properties. Transwestern found that vacancy was materially lower in core AA/A assets than in non-core A-/B properties, while concessions remained elevated in weaker buildings.

About Shorenstein

Shorenstein is a privately owned investment adviser that, through affiliated entities, owns and operates office, residential and mixed-use properties across the U.S., with offices in San Francisco and New York. Since 1992, Shorenstein and its affiliates have acquired $20.6 billion in assets as of June 30, 2026. The firm's investments have included ground-up developments, asset repositioning and stabilized assets, using structures that include asset acquisitions, mezzanine loans, preferred equity investments and structured joint ventures.

Sources

• PR Newswire: Shorenstein Acquires International Plaza 3 in Dallas' Lower Tollway Submarket