Austin Market Update: Development Driven by High-Profile Companies
- May 04, 2021
According to CommercialEdge data, roughly 7.4 million square feet of office space was underway in Austin in March. Of the 34 projects underway in the metro, 12 are taking shape in the downtown area. The second most active submarket was East Austin, with 8 developments totaling 1.3 million square feet.
The Austin office market is rapidly growing as more financial and tech companies bet on the strong fundamentals and educated workforce of the metro. In March, online real estate investing marketplace CrowdStreet also decided to expand its offices and chose Austin as its next location, relocating its headquarters from Portland, Ore.
The Texas capital has one of the most active construction pipelines in the U.S. According to CommercialEdge, Austin’s pipeline represented 9.8 percent of total stock, putting the metro only behind Charlotte, N.C. (11.2 percent) among major U.S. metros.
The largest development was 6 X Guadalupe, a 66-story tower in the metro’s downtown. The project is developed by the joint venture of Lincoln Property Co., The Lynd Co. and Kairoi Residential. Upon completion, scheduled for the third quarter of 2022, the 1.1 million-square-foot mixed-use asset will feature 590,000 square feet of office space, first-floor retail, residential space and 10 levels of parking. The second largest development in March was Apple’s upcoming $1 billion campus located on 138 acres in Northwest Austin, the metro’s booming tech region. The project is set to include 981,471 square feet of office space and a 192-key, six-story hotel.
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