Two office buildings in Arlington, Texas, are moving closer to being put up for sale as ongoing leasing challenges and declining property values highlight broader struggles among older suburban office properties in North Texas.
Copeland Tower and Stadium Place, located at 1250 and 1200 East Copeland Road respectively, have a combined area of just over 210,000 square feet. The two adjacent properties are expected to be marketed for sale in early 2026. This information comes from a November 15 notice connected to their commercial mortgage-backed securities (CMBS) loan.
The Dallas Business Journal reported that the buildings’ appraised value continues to fall while leasing activity remains weak. Copeland Tower is a 12-story building with 126,628 square feet of space, while Stadium Place is five stories and totals 84,653 square feet. Both were built in 1987 and underwent renovations in 2017. They are located just over a mile from Arlington’s Entertainment District and are visible from Interstate 30.
In 2022, both towers came under the ownership of a CMBS trust managed by Swiss bank UBS after Houston-based Aqua Investment Group lost them through foreclosure. Since then, efforts have focused on stabilizing the properties through new leases and renewals while considering long-term options.
Previous notices had suggested that the buildings would be marketed this year; however, the latest filing indicates that “the note holder anticipates marketing the collateral for sale” in the first quarter of 2026. Chris Hamilton has been appointed substitute trustee to manage the process on behalf of the loan servicer.
Occupancy rates remain low. According to recent CMBS investor reports, Copeland Tower’s occupancy has stayed at around 40 percent since early this year. Stadium Place has dropped to about 68 percent occupied from a previous level of 77 percent in February.
Major tenants include the Texas Department of Family & Protective Services and Meyer Distributing. Northstar Energy Services’ lease for approximately 10,900 square feet expired in November. The state agency’s lease at Stadium Place covers roughly 46,239 square feet and extends through 2027.
The combined appraised value for both towers fell sharply to $9.4 million as of September—down about two-thirds from $29 million in 2018—while outstanding mortgage debt stands at least $18.6 million according to servicing reports.
This drop reflects a reversal since before the COVID-19 pandemic when occupancy reached about 92 percent following an active leasing push by Bradford Commercial in both 2018 and 2019. During the pandemic period, tenants reduced space needs and owners sought repeated loan relief as several major leases ended between last year and this year—including health care company Multiplan’s lease for more than half of Copeland Tower’s total area.
According to JLL data referenced by industry sources, the Arlington-Mansfield Class B office market encompasses roughly 3.8 million square feet with negative net absorption so far this year; vacancy rates remain above 13 percent.
