The REX Effect: How Granite Properties and Highwoods Closed the Experience Gap at McKinney & Olive
How Granite Properties proved that tenant programming, not just architecture, determines who wins in Dallas's flight to quality
Vision
When Granite Properties and Highwoods acquired McKinney & Olive in 2022 for nearly $400 million, they weren't just buying a trophy asset. They were acquiring a thesis: Uptown's most architecturally significant office tower could only maintain premium performance through systematic experience delivery at scale.
The building, designed by the late César Pelli, had already achieved what most developers dream of: 100% occupancy at some of the highest rents in Dallas. But Granite understood that maintaining that position required more than beautiful glass facades. It required transforming operations into a tenant experience platform.
Market & Ideal Tenants
McKinney & Olive sits at the epicenter of Dallas's flight-to-quality transformation. For the first time in 10 quarters, the Dallas office market's net absorption landed positive in Q1 2025, but that recovery isn't evenly distributed. Stabilized trophy Class A space reported a 12.7% vacancy rate, while lower-tier Class A reported 28.2%.
Uptown is leading this divergence. It is the center of the conversation when it comes to Dallas's office market, with nearly three-quarters of the metro's current 2.7 million square foot construction pipeline concentrated there. The Uptown/Turtle Creek submarket boasts the highest rental rates, with average gross rent currently sitting at $60.88 per square foot.
Who thrives at McKinney & Olive:
The building attracts law firms such as Sidley Austin and Foley & Lardner, consulting powerhouses such as McKinsey & Co., and creative agencies such as Saatchi & Saatchi. These tenants share common traits: talent-centric business models, premium client expectations, and employees who demand walkable, amenity-rich environments.
What drives them:
"Walkability and the younger generation are big factors. You're seeing a lot of the companies in Uptown with a younger workforce, so that walk factor has been a major influence," noted Greg Langston of Avison Young. These tenants pay premium rents because experience drives talent attraction, and talent drives their business.
Closing the Experience Gap
Here's how Granite and Highwoods transformed operations following a REX-aligned methodology:
| Tenant Engagement | Traditional property management | TogetherWeConnect® programming: charity events, professional development, wellness programming |
| Wellness Infrastructure | Standard HVAC | Inspire Wellness: $10M+ portfolio investment in clean air technology, Needlepoint Bipolar Ionization, hands-free building access |
| Amenity Activation | Static fitness center and conference rooms | Fifth-floor terrace ecosystem connecting lounge, fitness studio, and conference center |
| Operational Excellence | Reactive maintenance | BOMA 360 certification, proactive systems management |
| Tenant Intelligence | Annual satisfaction surveys | Continuous Kingsley feedback integration |
The Experience Payoff
McKinney & Olive holds LEED Gold, Fitwel, and BOMA 360 certifications. In 2025, the property claimed the BOMA International TOBY Award for the 500,000 to 1 million square foot category, following five consecutive regional TOBY wins and a Kingsley Excellence Award recognizing outstanding tenant satisfaction. These distinctions reinforce Granite's brand as a leader in experience-driven commercial real estate.
Tenant-focused programming and operational excellence have delivered measurable results:
- 99%+ historical occupancy, reaching 100% leased in 2018
- Premium rental rates of $65 to $67 per square foot, above Uptown averages
- Sustained tenant satisfaction validated by third-party Kingsley benchmarks
The results show up in hard numbers. Dallas-Fort Worth achieved positive net absorption in Q1 2025 for the first time in ten quarters. Experience-driven properties led this recovery: trophy Class A buildings in Dallas operate at 12.7% vacancy while lower-tier Class A assets struggle at 28.2%. Uptown's average rents of $60.88 per square foot are the highest in the metro, and 69% of the region's 2.7 million-square-foot construction pipeline is concentrated in this submarket. The flight to quality isn't slowing.
Every investment in TogetherWeConnect programming, Inspire Wellness infrastructure, and fifth-floor amenity ecosystems ties back to understanding what law firms, consulting practices, and creative agencies actually need from their workspace. These wins confirm the REX thesis: experience-driven design contributes to economic resilience, tenant loyalty, and brand recognition that translates to pricing power.
Voices of the Experience
"We're proud of our talented team for providing an outstanding work environment at McKinney & Olive and supporting the success of our customers. We thank them for their hard work and dedication to enhancing the performance and value of our building and creating an environment where our customers can flourish."
– Jessica Warrior, Director of Property Management, Granite Properties.
"This building is a very strong addition to our Dallas portfolio. It embodies the highest quality in architectural design and amenities to offer a compelling and productive work experience to top talent."
– Will Hendrickson, Senior Managing Director at Granite Properties, noted at acquisition.
Experience Lessons Learned
Trophy architecture needs trophy operations. César Pelli delivered an icon. Granite and Highwoods proved that sustaining premium performance requires systematic experience management, not just beautiful design.
Programming creates community. TogetherWeConnect transforms tenants from occupants into participants. Charity events, wellness programming, and professional development build the relationships that drive renewals.
Certification validates, but culture differentiates. LEED Gold, Fitwel, and BOMA 360 create baseline credibility. The Kingsley Excellence Award proves tenants actually feel the difference.
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