Two-minute impact
The Glenville, a former Baylor Scott & White medical office located at 2520 N. Central Expressway, and Sherman Lofts, located at 111 W. Spring Valley Road, have both started construction. A third, located at 250 E. Arapaho Road, was approved at City Council’s Feb. 10 meeting.
JLB Partners Developer Jeff Patton said the building set to become The Glenville was poorly suited for retail or office uses because the COVID-19 pandemic permanently reset the office market with many businesses offering work from home or hybrid opportunities.
The inspiration
The city is largely built out, Magner said, meaning that fewer large single-family homes can be developed.
“Most of what we’re going to do is redevelop and reinvent little pockets of Richardson,” Magner said. “Because of the economics of the day, most of the new projects will be much denser.”
The city is also leveraging the projects’ proximity to DART’s Red Line, aiming to also increase DART ridership in the process, Magner said.
Magner added that in the current commercial real estate market many companies are looking for highly amenitized offices.
“We see it as a win-win because we were eliminating an office product that wasn’t going to compete very well and replacing it with something much more valuable,” Magner said.
At both The Glenville and Sherman Lofts, the previous buildings were demolished so that new construction could take place.
Tommy Mann of Winstead PC, which represents Lang Partners, the company redeveloping the property, told Richardson City Council when the project was originally approved in 2021 that the previous building was “unappealing to current tenants” and the company struggled to lease the space.
Diving in deeper
By eliminating underused office space, the remaining office space becomes more competitive and brings in new companies, Magner said.
Additionally, the city offers economic incentives to companies willing to move to Richardson and several businesses have expanded or relocated their offices recently, including Associa, Geico and Micron Technology.
Associa, a property management company, is investing $55.5 million for real estate purchases, building enhancements and other tenant improvements.
Similarly, Micron Technology, which makes semiconductors, received an economic incentive of $300,000 and plans to invest $30 million in tenant improvements.
Geico designated Richardson as its operating hub in December, expanding its offerings to include commercial insurance, Jason Andrukonis, Geico head of commercial operations, said.
Along with the office buildings’ proximity to DART stations, Magner added that nearby restaurant and entertainment options will further support new residential developments, while they could also see an increase in customers.
Patton added that The Glenville’s location makes it unsuitable for a mixed-use development, similar to CityLine, but the access to public transit and nearby parks and trails make the location “a vibrant area to add housing density.”
What’s next
Magner said that both the Glenville and Sherman Lofts would have started construction earlier if not for economic considerations such as inflation and lending interest rates.
He added that those are beginning to stabilize. As a result, residents may see significantly more construction in 2025 than they did in 2024, especially with a third project on the horizon.
“[Redevelopment is] a big priority for us,” Magner said. “I think this is an indication that our strategy is being successful in a relatively short period of time.”
