Exclusive: Fiserv to Consolidate 600 Employees, Multiple Offices in North Texas
Lease May Help Spur Development of Second Office Building in Fast-Growing City
Fiserv plans to sign a lease for multiple floors at The Offices One at 6160 Warren Parkway in Frisco, Texas, according to the company.
Fiserv, a provider of online banking and mobile payment services, plans a major consolidation in the Dallas area by funneling about 600 employees from multiple offices into what the federal government says is the fastest-growing U.S. city: Frisco, Texas.
The Brookfield, Wisconsin-based company said it plans to lease about 75,000 square feet that will span multiple floors in The Offices One building at 6160 Warren Parkway at Frisco Station, a 242-acre mixed-use development along the Dallas North Tollway near the Dallas Cowboys' headquarters and practice facility.
The move would increase occupancy of the building's 237,890 square feet of space to 95 percent from about 45 percent, spurring Kansas City, Missouri-based VanTrust Real Estate to begin construction on its next office building in the complex, called The Offices Two.
Fiserv's moving forward on a lease for "6160 Warren Parkway in The Offices One at Frisco Station, where we will bring together approximately 600 associates from multiple existing Dallas-area Fiserv locations," Ann Cave, a Fiserv spokeswoman told CoStar News in an email. "The investment in a collaborative and innovative workspace for our people is an important driver."
In May, Frisco was listed as the fastest-growing city nationally, based on U.S. Census population estimates. Frisco’s population increased 8.2 percent between July 2016 and July 2017. In total, the city added 13,470 new people in that time.
VanTrust declined to comment on the lease.
"We've had really good response from the market to our initial project, which we just delivered in December," said Geoff Meyer, an executive vice president of development for VanTrust, about The Offices One.
Fiserv has a lease totaling about 50,000 square feet of office space at Hall Park in Frisco with about 200 employees, according to CoStar data. Along with the Frisco office, the consolidation includes employees from multiple sites in the region, including 8750 N. Central Expressway in Dallas, 4055 Valley View Lane in Farmers Branch and 3330 Royal Lane in Las Colinas.
The moves are scheduled to take place by mid-year 2019, Cave said.
In Fiserv's real estate search, executives considered the location, employee commutes, safety, amenities, building design and other factors meant to enhance client and employee satisfaction, Cave said.
"We look forward to the creation of an inspiring and engaging workplace for our people to best serve our clients, as we work to design and build out this space in the coming months," she added.
Earlier this year, Jeffery Yabuki, Fiserv's chief executive, told the Milwaukee Journal Sentinel the company was seeking a "more technologically savvy location" in a corporate headquarters. Yabuki said the company was "committed" to Wisconsin while searching for the right headquarters location in this "multi-decade" decision.
That commitment was shown in July, when the global financial technology firm snapped up the naming rights to the new Milwaukee Bucks arena in a 25-year agreement. Fiserv has been based in Brookfield since its inception in 1984.
Fiserv's regional consolidation would follow leases signed at The Offices One with global data center provider Equinix and a shared office concept called Executive Workspace. VanTrust is developing Frisco Station in a joint venture with Hillwood and The Rudman Partnership. In all, the project is expected to have a maximum of 5 million square feet of office space, employing nearly 15,000 people in either mid-rise or campus-style buildings.
"We've continued to have tours over the last 90 days for tenants that are large users of space and, as you know, those users are typically out front of their requirements by a good bit of time," Meyer told CoStar News. "Several groups have walked through, and we feel like their occupancy lines up well with the delivery date of our second building. Given the velocity of leases on the first building and what is in the pipeline, we are optimistic."
The Offices Two, at 6303 Cowboys Way, is a six-story, 210,000-square-foot office building being built on a speculative basis. It's slated for delivery in September 2019.
Upon completion, The Offices Two will have luxury amenities, including a fitness center, conference center and tenant lounge, which, along with Frisco Station's parks, hotels and residences, will be equipped with AT&T's 5G Evolution wireless technology. Those qualities are helping attract some major companies, Meyer said.
"Recruiting and retaining talent is the name of the game, not just in office buildings, but in housing and making sure the amenities within the community are attracting people," Meyer said, adding the development tract lends itself to a tenant lounge to open up to a terrace backing up to green space overlooking a pond.
Frisco Station sits in a high-trafficked corridor of the Dallas North Tollway in Frisco. It's less than 5 miles from Plano's $3.2 billion Legacy West development, home to Toyota North America, Liberty Mutual Insurance's regional hub and a major operations center for JPMorgan Chase.
For the record
Project: Dallas-based HKS is the architect. Manhattan Construction is the general contractor. Kimley Horn and Associates is the civil engineer.
Landlord: Cushman & Wakefield, under the leadership of Ran Holman, is marketing the space on behalf of the developer.