Commercial property

Austin office development still strong

Several office towers are going ahead with construction.

The Texas capital has been at the top of the country’s office development pipeline for the past year. As of April, Austin’s under construction inventory stood at 10.3 million square feet, according to business advantage.

The Metro’s new supply pipeline accounted for 11.7% of its total inventory, or nearly 7% of the total office space under construction in the nation at the time, cementing Austin’s leadership position in all US markets in terms of relative stock. Nashville (8.6%) was second on the list, followed by Miami (7.1%) and Boston (5.5%).

More than two-fifths of all office space under construction in Austin is in the downtown submarket. One of the most significant developments currently taking shape in the area is Sixth and Guadalupe, a nearly 1.2 million square foot skyscraper. Developed by a partnership of Lincoln Property Co., DivcoWest and Kairoi Residentialthe 66-story tower is set to become the tallest structure in the city.

In April, Lincoln Property and DivcoWest, along with their partner Phoenix Property Co., announced that they will open another office development in downtown Austin. The Republic will rise 48 stories and offer 833,000 square feet of office space. The announcement came shortly after the partners secured the property’s anchor tenant, but the company’s name was not disclosed.

That same month, a joint venture of Square Properties and Collector Development also announced the upcoming inauguration of a 43-story skyscraper in the CBD. Dubbed Block 16, the 738,000 square foot office tower is scheduled for completion in 2026.

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