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division of Japan's largest bank is defying the trend of companies seeking high-end office space by renewing its lease at a 40-year-old building in Las Colinas. The space, which MUFG Bank occupied since 2020, will undergo a $500,000 renovation to add offices and conference rooms. The project, led by Wylie-based design firm Oler Senitz, is expected to be completed before the end of the year.

    The lease renewal stands out from the "flight-to-quality" trend, where companies opt for newly built, amenity-rich spaces. This trend has created a divide between high-end trophy assets and outdated office space, resulting in a surplus of vacant space. Dallas-Fort Worth ranked third in the nation for unused office space, with 52.8 million square feet available during the second quarter.

    VariSpace Las Colinas, where MUFG Bank is located, offers easy access to major highways and DFW Airport. The building, renovated in 2019, spans 305,000 square feet and houses tenants like Verizon and RumbleOn. Landlord Vari has recently added a cafe and fitness center to the property, which it purchased and revamped in 2019.

    The Las Colinas area is a hub for corporate offices, with over 50 companies, including Caterpillar and McKesson, having their headquarters there. Vari also operates other office spaces in Southlake and Coppell, totaling over 640,000 square feet.