The mixed-use project will break ground in late 2018 or early 2019 and is expected to deliver in late 2020.
AUSTIN, TX—At the close of second quarter 2018, vacancy rates in Austin's Central Business District and CBD submarkets were just 2.2% and 8%, respectively. This low vacancy is propelling mixed-use development in Austin, especially in the Capitol Complex and Innovation District.
A recent example is the 200,000-square-foot mixed-use building on behalf of the Employees Retirement System of Texas/ERS located at 200 E. 18th St. The building will consist of approximately 15,000 square feet of retail space and 192,000 square feet of office space, with large floorplates exceeding 34,000 square feet.
A site development application has been filed so the project will break ground in late 2018 or early 2019, with completion expected in late 2020. The building is being designed by STG Architects and constructed by Ryan. CBRE's Peter Jansen, Mark Emerick and John Barksdale are representing ERS.
“We are excited to offer space in a modern new structure uniquely located in Austin's Capitol Complex and Innovation District,” said Porter Wilson, executive director of Employees Retirement System of Texas. “The project has the dual benefit of making the most of an underutilized site by adding long-term revenue to the ERS Trust Fund and allowing ERS to address growing needs while remaining within the Capitol Complex.”
Austin's Capital City Innovation District is a unique downtown neighborhood. The Innovation District is anchored by the new Dell Medical School at the University of Texas and its associated Dell Seton Medical Center, by Central Health's Brackenridge campus redevelopment, by the Waller Creek chain of parks, and by the Texas State Capitol Complex.
“This particular transaction is significant to ERS as it is the only site they own in the downtown Austin area and a portion of the site serves as their current headquarters,” Peter Jansen, first vice president for CBRE's public institutions team, tells GlobeSt.com. “By developing the site into a new class-A office building, they are capitalizing on an opportunity to participate in Austin's strong office market.
Once complete, this office will be state of the art and will offer users the largest floorplates in downtown Austin and a beautiful rooftop deck with views of both Bevo Alley and the University of Texas stadium.”
More than 230 companies employ more than 13,500 people in the region and more than a dozen innovation hubs within the Innovation District and across Central Texas provide resources to start-up companies of all types, GlobeSt.com learns. Last year, Merck announced it will establish a significant global hub in Austin.
The Innovation District's anchors of Ascension Seton Healthcare, Central Health and Dell Medical champion new approaches to community access and integrated health. Austin's health systems have national footprints and international conference platforms. This ground-up approach to innovation and scaling health innovations is unique to US healthcare.
In addition, many large companies call Austin home, including Dell, Facebook, Google, Amazon, Apple, Cisco, IBM, Oracle and Whole Foods. These companies benefit from access to top talent, a business-friendly environment and a convenient location in one of the fastest-growing US markets.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
