IBM Scoops Up 320 KSF in Austin

IBM has signed a 320,000-square-foot, full-building lease at Cousins Properties’ Domain 12 in Austin, Texas. The tenant will assume Meta Platforms’ existing commitment, according to The Business Journals, and extend its maturity date from 2031 to 2040. The assumption will be effective starting January 2026.

Last year, the Fortune 100 company signed an agreement for 320,000 square feet at Hines’ Domain Northside, a 500,000-square-foot development currently underway. However, that deal fell through.

Over the past couple of years, Meta has been cutting back its office space across the U.S. In 2022, the company exercised an early termination clause for 200,000 square feet in Manhattan. That same year, the company also laid off more than 10,000 employees and announced a 120,000-square-foot sublease in Austin.

Domain 12, up close

Domain 12 came online in 2020. Cousins completed the Class A property with funds from a $120 million self-financed construction loan set to mature by the end of next year, according to CommercialEdge information.

The 17-story building, which includes eight levels of parking, has floorplates ranging between 31,137 and 33,405 square feet, a fitness center, six passenger elevators and outdoor seating.

The LEED Silver-certified property is at 11800 Alterra Parkway within the master-planned Domain development, close to the NORTHSIDE shopping center. Downtown Austin is 11 miles away, while the Austin-Bergstrom International Airport is 18 miles southeast.

Austin’s office leases slow down

Austin’s office market experienced a slowdown in leasing activity during the second quarter of this year, according to a Cushman & Wakefield report. The metro recorded a negative absorption of 51,000 square feet, causing its vacancy rate to rise 150 basis points quarter-over-quarter, reaching 28.8 percent.

In one of the quarter’s leasing deals, O’Melveny & Myers signed a 28,000-square-foot commitment at The Republic, the same source shows. Developed by Lincoln Property Co., the 830,000-square-foot tower is scheduled to come online next year.