Trammell Crow JV to Develop 709 KSF Office Tower in Austin
- May 21, 2018
A new 709,000-square-foot trophy office property with 10,600 square feet of retail space is in the works in Austin, Texas, courtesy of developers Trammell Crow Co. and Principal Real Estate Investors. The 36-story tower at 200 W. Sixth St. will stand out above the rest, as it will be both the tallest and largest office building to grace the city’s downtown skyline. The joint venture will kick off construction of straight away. DPR is aboard as general contractor and is scheduled to complete construction of the building in 2021.
Located in the central business district, the Page Southerland Page-designed 200 W. Sixth will occupy a roughly 1.8-acre site known as Block 71, previously home to offices of the University of Texas System. In addition to the new LEED Gold-certified office building, TCC and Principal have an adaptive reuse project planned for the site. The partners will convert a 100-year-old structure into a 25,000-square-foot retail segment with 20,000 square feet of green space.
“With the West 6th Street district an extremely desired area for young professionals, and Congress Avenue as the historic central corridor of downtown’s business district, we anticipate this project to attract a variety of tenants seeking a premier business location,” Adam Nims, managing director with Trammell Crow Co’s. Austin branch, said in a prepared statement.
Prime time for premier office space
TCC and Principal’s project is getting underway at a time when the Austin office market is performing quite well. The vacancy rate has decreased every year since 2011, and in the first quarter of 2018, Class A properties in the CBD recorded a vacancy rate of 6.8 percent, according to a report by commercial real estate services firm CBRE, which is spearheading marketing and leasing of 200 W. 6th.
“With more than 4.3 million square feet of demand in the market, particularly for Class A space, Austin landlords appear to remain confident in near-term local leasing activity,” per the CBRE report. At 200 W. Sixth, jobs website Indeed has already made a significant commitment, having entered into a long-term lease agreement for 307,000 square feet of space.
Trammell Crow teamed up earlier this month with Krusinski Construction Co. to develop a 112,505-square-foot mixed-use building in Rolling Meadows, Ill. Additionally, the company also partnered with Clarion for the second phase of the 127-acre Fallbrook Pines Business Park in Houston.
Renderings courtesy of Trammell Crow Co.