(AUSTIN) – CBRE has arranged a significant pre-lease with IBM to anchor a new 507,200-sq.-ft., next-generation office development planned by Hines on the north end of The Domain, known as Austin’s "second downtown”. IBM plans to relocate and consolidate its two current office locations near The Domain at the highly amenitized, state-of-the-art building, slated for occupancy by 2027.
CBRE’s Bo Beacham and John Barksdale represented the developer, Hines, in the transaction.
“This is a very exciting opportunity for two global
heavyweights to partner on the best product in the best location,” said
Beacham. “I look forward to seeing this development come to fruition and
believe it will be the bellwether for the future of office development in North
Hines’ new Class AA development within The Domain will comprise of 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 will experience multiple amenity decks on the 9th floor, private balconies on each floor, outdoor sports amenities, and a high-end fitness and conference center. Additionally, the property will place a heavy emphasis on ESG, and is being designed for LEED Gold certification and will seek WELL Platinum, WiredScore Platinum, and Austin Energy Green Build distinctions. Construction is anticipated to begin in late 2023.
“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.”
“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.”
Hines is a global real estate investment, development and property manager. The firm was founded by Gerald D. Hines in 1957 and now operates in 30 countries. We manage nearly $96B1 in high-performing assets across residential, logistics, retail, office, and mixed-use strategies. Our local teams serve 685 properties totaling nearly 216 million square feet globally. We are committed to a net zero carbon target by 2040 without buying offsets. To learn more about Hines, visit www.hines.com and follow @Hines on social media.
¹Includes both the global Hines organization and RIA AUM as of December 31, 2022.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2022 revenue). The company has approximately 115,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.