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Soon-To-Be Vacated Plano Campus Could Create New 'Legacy East' for Investors

Hewlett Packard Enterprise Expects to Relocate its North Texas Office in 2019
June 21, 2018
A sprawling Plano office campus, which once housed H. Ross Perot's Electronic Data Systems, has landed on the market in hopes of attracting global investment interest to the fast-growing suburb of Dallas.

The 1.6 million-square-foot, 97-acre office campus at 5400 Legacy Drive in Plano being marketed by CBRE could attract bids of roughly $125 million, according to Real Estate Alert, which first reported on the property. The campus' sole tenant, DXC Technology, plans to vacate the property for a "new, nearby location in 2019."

DXC Technology was formed in 2017 by Computer Sciences Corp. and Hewlett Packard Enterprise, which is formerly Electronic Data Systems.

"DXC Technology is assessing the possible sale of our Plano site and options to accommodate our local workforce," said Richard Adamonis, vice president of corporate communities for the technology company. "For quite a long period of time, the space has been significantly underutilized."

Adamonis said the company plans to assess its options in the next four to six months, but those options do include keeping a workforce presence in Plano. In all, the company only utilizes about 40 percent of the campus.

"We recently shared with our Plano employees that they will move from our current leased HPE office to a new, nearby location in 2019," said Emmanuel Fyle, director of global corporate media relations for Hewlett Packard Enterprise. "The North Texas area continues to be an important location for our company."

Real estate sources said Hewlett Packard Enterprise could be looking for 150,000 square feet of office space in the immediate area. One strong contender for the would-be lease is Dallas-based Stream Realty Partners' first office building in Platinum Park. The recently-delivered office building at 6000 Tennyson Parkway has enough new office space to accommodate the firm's real estate needs.

Last September, Hewlett Packard Enterprise reportedly decided to cut 10 percent of its employees to reduce expenses as competition mounts in the industry. The impacts of those cuts to the Plano campus were not released.

Fyle declined to disclose the number of employees Hewlett Packard Enterprise has in the region, but the company has been underutilizing its campus for years.

At the time the company's Plano campus was originally built in the early 1990s for Electronic Data Systems, it helped set the bar for sprawling corporate campuses in North Texas. Later, J.C. Penney & Co. Inc. decided to trade in its urban New York City digs for a Plano corporate campus with plenty of developable land that decades later transformed into Legacy West.

The $3.2 billion Legacy West mixed-use development landed Toyota North America's corporate campus, as well as regional hubs for JP Morgan Chase and Liberty Mutual Insurance. The Hewlett Packard Enterprise campus could inspire a major investor or developer to raze or redevelop the site.

"The current HP Enterprise site is absolutely a home run location in Legacy East," said Randy Garrett, a principal in Transwestern's Dallas office specializing in this corridor of North Texas. "It's a prime redevelopment site, in my opinion, and should be attracting a lot of development interest from around the United States and around the world.

"It's easy to envision a successful Legacy East project because of the outstanding success seen in Legacy West," he added.

Candace Carlisle, Dallas-Fort Worth Reporter  CoStar Group   
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