Apple to Start Phase 2 of $1B Austin Campus

Apple’s Austin campus. Image courtesy of Apple

Construction crews will be busy over the new few years at Apple’s 33-acre campus in Austin, Texas. The consumer electronics giant intends to begin building the second phase of its planned $1 billion development next month.

The news comes more than three years after Apple broke ground on its sprawling Austin campus. At that time, Apple stated the project would be built out at 3 million square feet and house a variety of functions including engineering, R&D, operations, finance, sales and customer support. Initially expected to accommodate about 5,000 employees, the campus could eventually house 15,000.

An ever-expanding office campus

Apple recently filed plans with the Texas Department of Licensing and Regulation describing details of its latest office addition at the site. Identified as Capstone Phase Two AC09, the building will be a four-story, 203,941-square-foot facility to take shape at 6900 W. Parmer Lane. Estimated to cost $120 million, the development is slated to begin September 30 and be completed by March 30, 2025.

This filing follows a series of several other construction projects that Apple registered with the TDLR in August, totaling about $280 million. All developments are slated to begin this year and take roughly two years each to complete.

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The most expensive planned development is a 298,970-square-foot multi-story building core and shell. The number of floors was not disclosed but the project is projected to cost $118 million, with construction beginning this February and finishing in February 2025. The company also filed plans for a five-story, 368,726-square-foot facility that is expected to cost $100 million, to be developed during the same time frame.

The final project detailed in the August filings was a $61 million, 1.2 million-square-foot parking garage that will have nine levels and space for 3,500 vehicles. Construction is also slated to begin next month, with completion estimated in two years.

The Austin Business Journal reported Apple also recently filed plans for a 33,000-square-foot building at the site that is expected to cost $22 million; that project is slated for groundbreaking in October 2024 and for completion by August 2025. According to the same source, the company filed plans to complete interior work on a five-story, 369,461-square-foot building in late September, at a cost of $46 million.

The architecture firm listed on the most recent projects is Dallas-based HKS Architects.

Austin’s office development boom

Apple is not the only company announcing plans for office development in the Austin area in recent months. The metro’s construction pipeline totaled approximately 7.7 million square feet as of November and leads the nation in terms of office construction relative to existing stock, according to a recent CommercialEdge report.

In early December, the Austin City Council approved zoning plans for a nearly 19-acre, mixed-use redevelopment plan on the Colorado River/Lady Bird Lake from Endeavor Real Estate Group that will include 1.5 million square feet of office space along with 1,478 residential units, a 275-key hotel and 150,000 square feet of retail and restaurant space.

Related Cos. has two separate office projects planned in Austin – a 106,854-square-foot boutique mass-timber office building at 901 South Congress and a 15-story, 475,000-square-foot office building with 16,700 square feet of retail at One Ladybird Lake.