Sonder USA, a leading innovator for the hospitality industry, has inked a full-floor lease in Dallas' Design District to add 14 more units to its rapidly expanding portfolio of short-term rentals in the city.
Sonder has signed a long-term lease for the 5,942-sf second floor of Cedars Corner, 1108 Akard St. The units will be available in February.
Josh Meraz, broker associate of Bradford Commercial Real Estate Services, is working with Michael A. Merryman, Sonder's head of real estate agent in Dallas to find additional sites in the city, focusing on Uptown, Downtown and Knox-Henderson for office or multifamily units that can be converted into short-term residential rental spaces. The most recent count shows there are 52 Sonder units up and running in the Big D.
San Francisco-based Sonder's hybrid lodging concept has captured the attention of investors and media worldwide. Since its launch in 2012, the founders have assembled a portfolio of more than 9,500 short-term rental units in 30 cities, a collection of the most popular travel and business locations globally. The company has a market value of more than $1 billion.
Commonly called a "Sonder," each tech-enabled unit is individually designed and outfitted with the amenities of home and comes with a 24/7 support staff for renters. The apartments range from studios to six bedrooms. Unlike one of its top competitors, Airbnb, Sonder leases its locations. And unlike hotel chains, cookie-cutter or one-size-fits-all designs are taboo.
"Sonder is very selective about its locations and finish-out," Meraz says. "Property owners are now chasing them."
Prior to the Design District signing, Sonder secured leasing and management rights to a 26-story, 270-unit apartment building currently under construction in the Dallas Arts District. The project, 1899 McKinney, is being built in partnership with Austin-based Rastegar Property. It is slated to open before 2023. It is Sonder's largest single site in the portfolio to date.
Jake Sherrington of SHOP Cos. represented the Design District landlord, JSK Cedars Corner LP. For Meraz, it's the second lease in recent months in Dallas that he's executed for Sonder, which has relocated its local base of operations to 5,625 sf of flex space at 1111 Dragon St. from WeWork-leased space in Uptown.
NORTH TEXAS LEASES
Ying Yang Ayaia has leased 11,150 sf of office space at 4103-B Lindbergh Dr., Addison, from Gardenbrook Industrial LLC. Brian Pafford, senior vice president and managing partner of Bradford Commercial Real Estate Services, and Susan Singer, executive vice president, represented the landlord. Shenglin Joy Selinger of Guo Realty represented the tenant.
Sonder USA has leased 5,942 sf of retail space in Cedars Corner, 1108 S. Akard St., Dallas, from JSK Cedars Corner LP. Josh Meraz, broker associate of Bradford Commercial Real Estate Services, represented the tenant. Jake Sherrington of SHOP Cos. represented the landlord.
Bradford Commercial Real Estate Services/CORFAC International is a full-service real estate company based in Dallas with an annual transactions volume exceeding five million square feet. The company manages and leases more than 20 million square feet, valued at $300 million, in North Texas for its strategic partners.
