Key Takeaways
- • Hines secures IBM as anchor tenant for a 507,200-square-foot Class AA office development in The Domain, Austin, with IBM committing to relocate and consolidate two existing nearby office locations into the new facility by 2027 occupancy.
- • The project comprises two interconnected 14-story towers featuring dual exclusive lobbies, multiple amenity decks, private balconies, outdoor sports facilities, and a high-end fitness and conference center designed to attract modern corporate workforce preferences.
- • Development targets LEED Gold certification and will pursue WELL Platinum, WiredScore Platinum, and Austin Energy Green Build designations, positioning the project as a sustainability-focused institutional real estate asset in a competitive submarket.
- • CBRE brokers Bo Beacham and John Barksdale arranged the pre-lease transaction, with construction anticipated to begin in late 2023 and completion targeted for 2027.
- • The deal signals institutional capital's confidence in The Domain—marketed as Austin's "second downtown"—as a premier office destination, with Hines and IBM positioning the project as a bellwether for next-generation corporate real estate development in North Austin.
Summary
Hines has secured IBM as the anchor tenant for a major office development at The Domain in Austin, marking a significant pre-lease agreement arranged by CBRE. The project comprises a 507,200-square-foot, next-generation office complex consisting of two interconnected 14-story towers designed to consolidate IBM's two existing office locations near The Domain into a single, modern facility. IBM is slated to occupy the space upon completion in 2027.
The development reflects evolving corporate real estate preferences, featuring Class AA amenities tailored to contemporary workforce expectations. The twin towers will include multiple amenity decks on the 9th floor, private balconies on each floor, outdoor sports facilities, and a comprehensive fitness and conference center. Each tower will maintain exclusive lobbies, establishing distinct identity while maintaining operational integration. The project places substantial emphasis on environmental, social, and governance (ESG) standards, pursuing LEED Gold certification alongside WELL Platinum, WiredScore Platinum, and Austin Energy Green Build designations—certifications increasingly material to institutional investors and corporate real estate strategies.
Philip Croker, senior managing director at Hines, underscored the project's strategic positioning: "Corporate occupiers are seeking projects that deliver a differentiated, elevated experience to their workforce." CBRE's Bo Beacham echoed this market thesis, characterizing the partnership as "two global heavyweights" collaborating on "the best product in the best location," and predicting the development would serve as "the bellwether for the future of office development in North Austin." Construction is anticipated to commence in late 2023.
The Domain, positioned as Austin's "second downtown," represents a high-amenity submarket competing for corporate consolidation and relocation activity. IBM's commitment to consolidate multiple office footprints into a single modern facility at The Domain reflects broader trends toward space optimization and workforce amenity investment among institutional corporate tenants. The project's sustainability focus and architectural differentiation position it competitively within the institutional office market during a period of selective leasing activity in major tech hubs.
The development reflects evolving corporate real estate preferences, featuring Class AA amenities tailored to contemporary workforce expectations. The twin towers will include multiple amenity decks on the 9th floor, private balconies on each floor, outdoor sports facilities, and a comprehensive fitness and conference center. Each tower will maintain exclusive lobbies, establishing distinct identity while maintaining operational integration. The project places substantial emphasis on environmental, social, and governance (ESG) standards, pursuing LEED Gold certification alongside WELL Platinum, WiredScore Platinum, and Austin Energy Green Build designations—certifications increasingly material to institutional investors and corporate real estate strategies.
Philip Croker, senior managing director at Hines, underscored the project's strategic positioning: "Corporate occupiers are seeking projects that deliver a differentiated, elevated experience to their workforce." CBRE's Bo Beacham echoed this market thesis, characterizing the partnership as "two global heavyweights" collaborating on "the best product in the best location," and predicting the development would serve as "the bellwether for the future of office development in North Austin." Construction is anticipated to commence in late 2023.
The Domain, positioned as Austin's "second downtown," represents a high-amenity submarket competing for corporate consolidation and relocation activity. IBM's commitment to consolidate multiple office footprints into a single modern facility at The Domain reflects broader trends toward space optimization and workforce amenity investment among institutional corporate tenants. The project's sustainability focus and architectural differentiation position it competitively within the institutional office market during a period of selective leasing activity in major tech hubs.
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