AUSTIN – (Realty News Report) – CBRE has arranged a significant pre-lease with IBM to anchor a 507,200-SF office building under development planned by Hines in The Domain, a suburban district known as Austin’s “second downtown”.
IBM, which leased 320,000 SF, plans to relocate and consolidate its two current office locations of Burnet Road near The Domain at the new building. Occupancy is slated for 2027.
CBRE’s Bo Beacham and John Barksdale represented the developer, Hines.
“This project reflects a clear vision into what the future of the office looks like,” said Beacham with CBRE in Austin. “Corporate occupiers are seeking projects that deliver a differentiated, elevated experience to their workforce. Hines and IBM, both global organizations, share a lot of symmetry in their perspectives of what the office represents going forward and this project will deliver an environment that all parties will be proud of well into the future.”
Construction is expected to begin in late 2023. Architecture is by Munoz & Albin.
The Hines project will have two 14-story interconnected towers with exclusive lobbies for each tower and exterior aesthetics that will set a new bar in the Dominion submarket. Catering to the needs of the modern workforce, tenants may multiple amenity decks on the ninth floor, private balconies on each floor, outdoor sports facilities, and a high-end fitness and conference center.
The new building is being designed for LEED Gold certification and Hines will seek WELL Platinum, WiredScore Platinum, and Austin Energy Green Build distinctions.
“This project reflects a clear vision into what the future of the office looks like,” said Philip Croker, senior managing director at Hines. “Corporate occupiers are seeking projects that deliver a differentiated, elevated experience to their workforce. Hines and IBM, both global organizations, share a lot of symmetry in their perspectives of what the office represents going forward and this project will deliver an environment that all parties will be proud of well into the future.”
“This new location offers an opportunity to create a modern new experience for Austin-based IBM employees,” said Joanne Wright, IBM Senior Vice President, Transformation & Operations. “Our vision is to create an environment where employees can gather to collaborate and innovate with colleagues and our clients.”
Hines has a number of projects under development in Austin, including The Mirador, Lakeside at Tessera on Lake Travis, Residences at Wolf Lake and The Retreat at Easton Park, and the Four Seasons Private Residences Lake Austin which will have 179 lakeside homes with prices starting at $4.1 million. Hines has started construction on T3 Eastside, a heavy timber office and boutique residential building in an eclectic eastside neighborhood in Austin.
“Austin continues to be a desirable market for tenants, and flight to quality remains a key trend as tenants seek premium assets in optimum locations,” said Alex Ohrn, director at Hines. “We are delivering a market-leading product focused on the office of the future, which aligns with IBM’s outlook on providing a next-generation workplace for their employees.”
Houston-based Hines, founded by Mr. Gerald D. Hines in 1957 and operates in 30 countries. The company manages $96 billion in assets, including residential, logistics, retail, office, and mixed-use properties.
June 21, 2023 Realty News Report Copyright 2023
Rendering: Courtesy Hines. Architecture: Munoz & Albin.
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