36-story downtown skyscraper fails to sell at auction, future plans uncertain

A downtown Dallas office tower, known as the Harwood Center at 1999 Bryan St., consisting of 36 stories, recently failed to sell at auction, leaving its future plans uncertain. The property, which was home to engineering and design firm Jacobs, was put up for auction with bids due in mid-October. However, the current owner, COMM 2014-UBS5, a commercial mortgage-backed securities trust, ultimately decided against selling the building for reasons that are not entirely clear.

According to recent filings with the Securities and Exchange Commission, the special servicer involved in the auction process stated, “The asset was marketed for sale on the RealINSIGHT Marketplace, the decision was made not to proceed with a trade.” The property had previously reverted to the lender in 2021 after the New York partnership that owned it defaulted on the mortgage. The property also has ties to commercial loan special servicer CWCapital.

Built in the early 1980s, the Harwood Center comprises nearly 735,000 square feet and serves as the world headquarters for Jacobs. Some of the major tenants at the tower include Omnicom Management and the General Services Administration. The property’s zoning allows for potential conversion into a mix of residential, hotel, and office spaces. The last renovation of the property took place in 1996.

The current value of the building for property tax purposes, as estimated by the Dallas Central Appraisal District, amounts to nearly $45.7 million. This figure often lags behind the actual market value of the property. As of September 2025, the occupancy in the tower stood at 46%, according to the SEC report.

The investment sales brokers for the property, namely Mike Hardage, Stephen Simon, and Steve Pumper of Transwestern, have not responded to inquiries regarding the property. Additionally, Colliers is in charge of marketing a 0.16-acre piece of land beneath the building for sale. This ground lease is set to expire on Sept. 1, 2077. The property also has two other ground leases in place.

Although Dallas-Fort Worth was one of the most active U.S. office markets, with 13.4 million square feet of leasing in 2025, up from 12.2 million square feet in 2024, downtown Dallas has faced challenges. The office vacancy rate in the central business district stood at 26.8%, according to real estate firm CoStar. The uncertain future of the Harwood Center adds to the complex real estate landscape of downtown Dallas, where the market conditions continue to evolve.