Throw another chunk of empty office space on top of the stack in Dallas.
EnLink Midstream, a pipeline transportation and natural gas company, is shedding 78,000 square feet across two entire floors in the 24-story One Arts Plaza in the Dallas Arts District, the Dallas Morning News reported.
The two floors, representing about half of EnLink’s 157,000-square-foot lease at the site, will be up for grabs starting next year. When the company moved its headquarters into the building in 2017, it housed more than 300 employees.
One Arts Plaza’s tenants include Billingsley Company, which developed the building, as well as law firm Holland & Knight and alternative investment firm Civitas. Billingsley manages the property, while Thirty Four Commercial handles leasing.
EnLink has undergone several changes in recent years, with Jesse Arenivas replacing Barry Davis as CEO in 2022. The publicly traded company reduced its workforce by about 20 percent, affecting about 300 employees nationwide, during the onset of the pandemic-fueled remote-work era and the Russia-Saudi Arabia oil price war in 2020.
There’s been a shakeup in Dallas-Fort Worth’s energy industry, including ExxonMobil’s 2022 departure from its longtime Irving headquarters in a move to the Houston suburb of Spring. However, companies such as Energy Transfer, Hunt Oil and Matador Resources, remain in Big D, the outlet said.
EnLink’s downsize reflects the broader challenges facing DFW’s office sector, which has been pummeled by lingering remote-work trends, tough lending standards and high interest rates. The region’s office vacancy rate reached 21.2 percent in the fourth quarter, according to Cushman & Wakefield. More than a third of workers in Dallas haven’t returned to the office since the pandemic, according to Placer.ai.
The mountain of empty office space in Dallas has ignited a wave of office-to-residential conversions across the city, as such projects are expected to yield 2,000 multifamily units.