Shorenstein Investment Advisers has bought Sherry Lane Place, a 300,000-square-foot Class AA office tower in Dallas's Preston Center submarket, marking the San Francisco firm's fourth North Texas acquisition in the past two years. The 20-story building at 5956 Sherry Lane is already 93% leased, with a weighted-average lease term of approximately 6.6 years across its tenant roster.
The deal pushes Shorenstein's ownership stake to nearly 20% of all Class A office inventory in Preston Center, according to a release detailed by Connect CRE. That concentration didn't happen overnight — Shorenstein built it through a string of targeted purchases spanning 14 months, according to a company statement carried by PR Newswire.
Sherry Lane Place has a well-traveled ownership history. CBRE Investment Management, then operating as CBRE Global Investors, bought the tower in February 2021 for $120 million from J.P. Morgan Asset Management, which had held the building for 15 years beforehand, per the Preston Hollow Advocate. Built in 1983, the tower sits atop a four-level parking garage and houses the private Park City Club on its 17th floor alongside major tenant Bank of Texas, which occupies 78,000 square feet following a prior expansion.
Renovation Plans Include a New Bar Lounge
The tower already underwent a comprehensive renovation that touched its tenant lounge, conference facilities, and fitness center, per Connect CRE's report. Shorenstein now plans further upgrades, including wellness amenities, improved outdoor seating areas, and the addition of a bar lounge for tenants.
Those improvements fit a pattern for the firm, which has now closed on 13 office properties in growth markets since June 2024, deploying roughly $2 billion in the process. As of June 2026, that portfolio was producing an average distribution yield of 8%, the company reported.
Three Prior Buys Set the Stage on Sherry Lane
Shorenstein's North Texas buildout started in October 2024 with the purchase of International Plaza II, a 388,000-square-foot building in North Dallas's Lower Tollway submarket, a deal that REBusinessOnline described as the firm's pivot toward high-performing Sun Belt office assets. In July 2025, the firm paid $126.5 million for the neighboring 19-story Sterling Plaza tower at 5949 Sherry Lane, buying it from KBS Real Estate Investment Trust III in what stood as that REIT's highest-valued office sale of the year, according to Commercial Real Estate Direct.
Then in June 2026, Shorenstein added The Tennyson, a 273,000-square-foot Class A campus in Plano's Legacy Business Park originally built in 2012 as Ericsson's corporate headquarters. The campus was fully leased when Shorenstein bought it from Spear Street Capital, per CRE Daily. With Sherry Lane Place now added, the firm has assembled International Plaza II, Sterling Plaza, The Tennyson, and Sherry Lane Place into a four-building North Texas footprint concentrated almost entirely around Preston Center.
Preston Center's Scarcity Problem
The buying spree is unfolding in one of the tightest office submarkets in North Texas. Preston Center posted an overall vacancy rate of just 5.5% in the first quarter of 2026, the lowest of any commercial office submarket in the Dallas-Fort Worth metroplex, according to Partners Real Estate. That stands in sharp contrast to the broader DFW market, where overall vacancy sits near 25%.
Availability is even tighter than the vacancy figure suggests. In the second quarter of 2026, Preston Center's availability rate stood at just 4%, with only one full floor available for lease across the entire submarket — and that floor sits inside Sterling Plaza, the tower Shorenstein bought in 2025. Scarcity of contiguous space has been driving rapid rental growth: Preston Center commanded an average direct asking rent of $62.45 per square foot in the first quarter of 2026, according to Capdex, second in the region only to Uptown Dallas at $70.47 per square foot and far above the broader DFW average of $33.84 per square foot.
High occupancy in the submarket is supported in part by its proximity to Park Cities and Preston Hollow, according to Partners Real Estate's report. That squeeze has already reshaped the local business landscape — rent pressure recently pushed out Sevy's Grill, a longtime Preston Center restaurant, and other financial institutions like Associated Bank have been jockeying for footholds in the same submarket, per Hoodline.
A National Pivot Toward the Sun Belt
Shorenstein's Dallas expansion comes as the firm has been shedding distressed West Coast holdings. In April 2026, the company surrendered its 34-story 45 Fremont tower in San Francisco through a lender-facilitated short sale, ending nearly 50 years of Shorenstein family ownership of that building. The firm has continued investing in select West Coast assets too, having acquired the 550 Allerton office property in Redwood City in July 2026, even as it leans more heavily into supply-constrained Sun Belt submarkets like Preston Center.
Sherry Lane Place already has at least one notable local tenant story tied to it: private equity firm Broadwing Capital recently set up its headquarters inside the building, a move Hoodline reported as part of the firm's rise from modest beginnings to a $440 million fund close. With Shorenstein now controlling roughly a fifth of Preston Center's Class A inventory, tenants and competing landlords alike are watching how much further the firm's grip on the submarket will extend.
