- Stonelake Capital Partners is set to break ground on a 17-story, 181K SF trophy office building at 2626 McKinney Ave. in Uptown Dallas in July 2026.
- The $68.7M project includes 174K SF of office space and 7K SF of ground-floor retail, with Bank OZK providing the construction loan and Stonelake supplying all equity.
- This move comes as Uptown trophy offices command record rents even as Downtown Dallas sees major corporate departures.
Uptown’s Trophy Office Push
Uptown Dallas is poised for another new trophy office as Stonelake Capital Partners prepares to launch construction on a 17-story, 181K SF tower in July, according to Bisnow. The firm’s 2626 McKinney Ave. project is speculative, but Stonelake is already negotiating with multiple potential anchor tenants. The move follows several high-profile office redevelopments and new ground-up projects that are redefining Dallas’ top-tier submarkets.
With Dallas’ financial sector gaining steam—bolstered by the rise of ‘Y’all Street’ and the planned Texas Stock Exchange—demand for state-of-the-art office product is intensifying. In a market shaped by shifts in tenant demand and corporate migrations, firms betting on trophy-quality assets in leading neighborhoods are often first in line for rising rents and tenant attention.
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The Details
Stonelake’s new tower at 2626 McKinney Ave. will deliver 174K SF of trophy office and over 7K SF of retail, with Stonelake self-funding the equity and Bank OZK providing the construction financing (terms undisclosed). Alabama-based Brasfield & Gorrie will serve as general contractor, and HPI’s Ben Cuzen and Ward Eastman are handling leasing. Project amenities include a hospitality-style valet, street-level activation, and an 11th-floor amenity deck with Dallas skyline views. Stonelake previously acquired the site in 2021, but a prior attempt to break ground on a similar $68.7M project stalled; demolition finally cleared the site in 2024. Delivery is targeted for early 2028.
Rising Competition on McKinney Avenue
Stonelake’s project will not be the only action along McKinney Avenue. The Dallas City Council just approved $18.5M in incentives for a prospective Morgan Stanley tower at 2401 McKinney Ave., set to consolidate regional operations if Dallas wins out over rival contender Alpharetta, Georgia. Morgan Stanley is weighing a $684M investment, underlining the corridor’s growing attractiveness for major employers despite broader CRE headwinds.
That proposal reflects broader investor confidence in Dallas trophy offices, with other major capital commitments also targeting the market. Meanwhile, Uptown Dallas office rents have hit record highs, driven by financial services growth and the ongoing repositioning of the city’s commercial center.
Why It Matters
This project arrives at a turning point for Dallas office—and for its central business district in particular. While Uptown sees robust office demand, Downtown Dallas is losing some of its biggest name tenants. In January, AT&T announced it will relocate its global HQ to Plano by 2028, trading its 1M SF Downtown building for a new $1.35B campus double in size. The moves continued in June, with the Dallas Mavericks and Dallas Stars revealing plans to leave American Airlines Center for larger, mixed-use destinations in North Dallas and Plano, respectively.
The divergence is striking. Trophy office buildings in Uptown are recording record-high asking rents, according to CoStar’s 2026 Dallas office market outlook, even as vacancy in the urban core inches up. The lure: best-in-class amenities, newer construction, and proximity to financial and professional services clusters. As legacy tenants decamp from CBD, developers like Stonelake are embracing a flight to quality, betting that top-tier product in prime submarkets will command premium pricing despite broader market uncertainty.
What’s Next
Stonelake aims to start construction in July, with a delivery timeline set for early 2028. Leasing activity will be closely watched as trophy options dwindle and major relocations, like Morgan Stanley’s, hover in the balance. The pipeline remains strong in Uptown, but success will depend on Stonelake’s ability to attract key tenants ahead of delivery—and on Dallas’ ongoing appeal to financial services and corporate occupiers as the city’s economic map continues to shift.
