An office space in Plano, formerly occupied by PepsiCo Inc., is back on the market.
The office building located at 5600 Headquarters Drive recently underwent a $20 million renovation following PepsiCo’s departure from the space early last year.
The 250,000-square-foot complex that sits on 27 acres was constructed in 1999. In 2002, private equity manager Rubenstein Partners out of Philadelphia purchased the property, its first in the Dallas market.
The update to the building focused on both the interior and exterior, seeking to enhance the tenant experience. The overhaul refreshed the lobby and added a lounge, fitness center, and 35,000-square-foot outdoor area with a pickleball court.
Dallas-based companies were hired to complete the project. GFF designed the renovation while K2 Construction completed the build.
Texas-based Happy State Bank provided financing for the project.
To support the renovation, the City of Plano covered nearly 10% of the building improvement cost, providing Rubenstein with almost $1.9 million in incentives.
With the renovation complete, Rubenstein Partners is now looking to lease the office space, with numerous businesses already expressing interest.
“5600 Headquarters Drive consists of three pods connected by multi-level corridors. The well-located property provides easy access to the primary transportation arteries and desirable residential neighborhoods and schools of Dallas. Located at the intersection of the Dallas North Tollway and Sam Rayburn Tollway, the property is within close proximity of DFW Airport, Uptown Dallas, and residential areas to the South (e.g., Park Cities), and North (e.g., Frisco, McKinney),” read a description of the office building in a press release from Rubenstein at the time construction began.
Rubenstein hopes the modernized building will prove attractive to potential tenants. Office spaces in the city have struggled since the pandemic upended many in-person working arrangements, some of which never recovered.
The trend has prompted a drive to convert some existing vacant office space into more in-demand industrial properties. Last month, The Dallas Express reported that industrial vacancy rates were under 10% in Dallas. At the same time, vacant office space rose to 26.7%.