IBM Leases 320 KSF at Austin Twin Office Buildings

Hines Domain Northside. Image courtesy of Hines

IBM Corp. has leased 320,000 square feet at two upcoming office towers to rise in The Domain in Austin, Texas, developer Hines confirmed for Commercial Property Executive. The twin, 14-story office buildings will total 500,000 square feet; IBM will be taking all the space in one tower and two floors in the second.

The firm currently leases about 800,000 square feet of space in two locations elsewhere in The Domain for its 6,000 employees. Company officials said that staying in the area was important because it is close to existing business partners as well as stores, restaurants and Q2 Stadium. The move to the new Hines development, which will be known as Hines Domain Northside, will enable IBM to consolidate its Austin teams in one location.

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Hines Domain Northside will take shape at 11901 N. MoPac Expressway, the site of a former LaQuinta Inn and Suites. Construction is expected to begin later this year and be completed by 2027. The development team also includes Munoz + Albin as design architect, Kirksey as the architect of record, Kimley-Horn as civil engineer and Dunaway as structural engineer.

New tenant, new plans

Hines had acquired the 4.3-acre property in The Domain, a live-work-play community on the city’s northwest side that is considered Austin’s second downtown, last summer. Initial plans called for up to 320 residential units along with office space in one 15-story tower.

A Hines spokesperson told CPE the firm changed its plans for the property in response to the IBM lease. The corporation had released a request for proposals for a new office hub in Austin in September, according to the Austin Business Journal. IBM Senior Vice President Joanne Wright reportedly said the company liked the Hines plan because of its focus on sustainability and clear vision for what the office of the future will be in the post-pandemic work world.

In fact, Austin is not the only major market where IBM has committed to large office leases. In March 2022, IBM signed a 328,000-square-foot, 16-year lease at One Madison Avenue, a 1.4 million-square-foot tower redevelopment and extension in Manhattan’s Midtown South submarket owned by SL Green Realty Corp. and several joint venture partners including Hines.

Focus on sustainability

The Hines Domain Northside buildings will have separate cores and lobbies but share an eight-story podium parking garage. The project, described as a next-generation, highly amenitized office development, will be seeking LEED Gold certification, WELL Platinum, WiredScore Platinum and Austin Energy Green Building Two-Star designations.

Hines is known for its sustainable developments, particularly the T3 product that combines the advantages of timber, new technological innovations and transit benefits. The company’s T3 portfolio encompasses 26 assets, including T3 Eastside, a Class A office project under construction in Austin’s East submarket.