Hillwood, the development firm led by chairman Ross Perot Jr., bought a downtown Fort Worth block at Seventh and Calhoun streets on the east side of downtown from Oncor Electric Delivery Co. in 2023. The purchase is notable in a city that, according to the Fort Worth Business Journal, hasn't seen a new office building go up downtown since 2018. Fort Worth's office market is now showing its strongest signs of life in years.
The acquisition marks Hillwood's first downtown property play, according to a company announcement, which states plainly that the deal is the company's first foray into the district. Hillwood says it plans to evaluate the block for office, residential, mixed-use or other potential development, without committing to any single path forward. As the Fort Worth Business Journal reports, developers and brokers are confident in the downtown market, and real estate experts are looking forward to new high-rises, with at least one new office tower potentially in the works.
Still, a word of caution runs through the plans. According to WFAA, Hillwood sees office and multifamily as among the most logical uses for the site, but the company does not intend to build speculative office space before locking in a tenant. That caution comes amid discussions of downtown development, including Dart Interests' conceptual tower plans for the Central Library site, per the same report.
A Market Showing Its First Real Momentum in Years
The timing lines up with a notable shift in Fort Worth's office fundamentals. The city's office market posted its fifth consecutive quarter of positive net absorption in the third quarter of 2026, with declining vacancy and growing leasing activity, according to the Fort Worth Report. Both Class A and Class B properties were on track for their first positive year-end absorption totals since 2021, the outlet notes, with more than a dozen new leases exceeding 10,000 square feet signed in the third quarter alone.
As of October, Fort Worth had 377,041 square feet of office space under development, with 30% of that preleased, the same report states, and it adds that future office development announcements in the city are likely. Downtown Fort Worth itself carries 22.8 million square feet of office inventory, according to Downtown Fort Worth Inc., citing JLL data.
Vacancy figures vary depending on the source and timing. DFWI reported downtown's Class A office vacancy at 13%, while the Fort Worth Report cited a JLL figure of 12.5% Class A vacancy, and the Star-Telegram previously put overall downtown vacancy at about 13.3%, down from nearly 15% in 2021. JLL executive managing director Todd Burnette said the limited supply has made the downtown market tight, encouraging many tenants to renew rather than relocate.
Burnett Plaza's Turnaround Offers a Case Study
One existing downtown tower illustrates how quickly fortunes can change. Andy Hansen acquired the 40-floor Burnett Plaza at 801 Cherry St. in 2024 and estimates he has invested $14 million in improvements since then, according to DFWI. Occupancy has climbed from 78.6% when Hansen took ownership to about 86.5%, with GM Financial standing as the building's largest tenant, occupying roughly 10 floors. Hansen told the outlet, “We feel pretty optimistic about the downtown Fort Worth market,” pointing to strong lead generation and inquiries from local and expanding companies.
Crescent's New Tower Sets the Market's Pace
While Hillwood weighs its options, Crescent Real Estate, led by chairman John Goff, is already building. The company's new office tower, Crescent Offices West, has been described by the Fort Worth Report as an eight-story, 171,500-square-foot building, while Bisnow has put the office component at 170,000 square feet alongside two restaurants and a gym. The project is estimated to cost about $70.4 million and is expected to open in early 2027, per the Fort Worth Report.
JPMorganChase has signed on as the anchor tenant, leasing the top three floors and relocating its local operations from elsewhere downtown, the Fort Worth Report states. Goff told NBC 5 that Crescent is looking for other opportunities in the immediate area to add amenities and encourage continued growth, calling the project part of broader momentum in the district.
More Projects Queued Up Around Downtown
Hillwood's purchase comes amid other downtown development discussions. Dart Interests has been considering a two-tower plan for the Central Library site with potential office and residential uses, per WFAA.
Beyond downtown's core, Goldenrod Companies has been planning two Fort Worth office projects valued at a combined $400 million, one on West 7th and another on University Drive, according to the Fort Worth Report. The company's Van Zandt mixed-use development at 2816 W. Seventh St. is pegged at $145 million with 95,000 square feet of office space, while its One University project is expected to include 116,000 square feet of office space, about 260 multifamily units and a hotel, the outlet reports. DFWI has noted that nearly 1.2 million square feet of trophy office space could be delivered citywide by 2035, including the second Crescent building and the Goldenrod projects.
