- Harwood Center, a 36-story office tower in downtown Dallas, did not sell at auction.
- The property is about 46% occupied, with major tenants including Jacobs and the GSA.
- Ownership remains with the COMM 2014-UBS5 CMBS trust after the auction was halted.
- The tower’s future use is unclear as downtown Dallas faces elevated office vacancy.
Uncertain Future for Office Tower
The 735,000 SF Harwood Center in downtown Dallas went to auction but did not sell this month, per The Dallas Morning News. The property belongs to the COMM 2014-UBS5 commercial mortgage-backed securities trust. Although it was marketed for sale, the process stopped, according to SEC filings. No public explanation was provided for halting the auction.
Occupancy and Tenant Profile
Harwood Center’s occupancy was 46% as of September 2025. Major tenants include engineering firm Jacobs, Omnicom Management, and the General Services Administration. The property has not seen a significant renovation since 1996 and faces a local office market with a 26.8% vacancy rate in the central business district.
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Development and Valuation Factors
The building could be eligible for mixed-use redevelopment thanks to favorable zoning. The Dallas Central Appraisal District values the property at $45.7M for tax purposes, though this likely trails true market value. The auction also included a 0.16-acre land parcel under a long-term ground lease, one of several affecting the site.
Downtown Dallas Office Market in Context
The office tower’s failed sale comes as downtown Dallas continues to see high vacancies despite overall leasing activity in the broader Metroplex. Nearby districts have seen a wave of new development interest, hinting at shifting investor priorities within the urban core. The future of Harwood Center will likely depend on investor interest in repositioning or converting office properties amid continued market headwinds.
