Uplands Corporate Center Emphasizes Health and Wellness

AUSTIN, TX—Well-capitalized sponsors with strong track records, success in cultivating tenant relationships and access to financing continue to push ahead with tenant-focused spec construction projects in high-growth innovation markets. Last month, San Francisco-based real estate investment manager Drawbridge Realty topped out the second and final building in Uplands Corporate Center at 5301 Southwest Pkwy.

Completion of the three-story 124,081-square-foot office building is expected in the second quarter of next year. Structura Inc. is the general contractor.

“Even before the COVID-19 pandemic, we envisioned creating a flexible, lower density environment very much focused on the health and wellness of occupants by taking advantage of the technologies available to us to create a vibrant indoor and outdoor experience,” said Mark Whiting, CEO, Drawbridge Realty.

Uplands Corporate Center is being built to class-A standards and registered for both LEED and WELL certification. While LEED focuses mainly on the sustainability of the materials used in the building, WELL certification focuses on the overall health and wellness of the tenant experience by looking at air, light, sound, water, thermal heat, comfort, access to nature to support health mental function and nourishment provided within a building.

Working with its project architect, Austin-based LEVY Architects, and environmental consultant Green Living LLC, Drawbridge has also designed the building to meet the RESET Standard, an internationally recognized sensor-based certification system that continuously monitors and reports interior air quality in real time via a cloud-based application.

“Uplands II is the first development in Texas to carry the RESET air quality certification but we believe that the breadth of environmental and health and wellness features you’ll find in this building when it opens early next year will someday become standard in most modern workplaces,” Chris Elmendorf, senior vice president of investments with Drawbridge Realty, tells GlobeSt.com.

Kevin Granger and Matt Frizzell of Cushman & Wakefield were engaged to market the space.

“This building and location will clearly appeal to Austin companies looking to prioritize the health and wellness of their employees. It provides large floorplates with an abundance of natural light and Drawbridge has made significant investments in technology and infrastructure to keep this a smart building for years to come,” said Frizzell.

In addition, this project is one of the first in the Austin area to use dynamic glass, an app-controlled system that automatically shades interior workspace throughout the day, replacing the need for window blinds which can collect dust and pathogens, need constant cleaning and often replacement.

When used in workplace environments, dynamic glass has been shown to reduce eyestrain, headaches and drowsiness by up to 50%. It is also a pre-programmable touchless technology that optimizes natural light. And because dynamic glass can track the path of the sun throughout the day, interior workspace temperatures can be better regulated.

“This smart glass has the added benefit of being able to host video displays, removing the need for conference room screens, has connected sensors for C02 and VOC detection, and the future capability to enable 5G throughout the building,” according to Mike Embree, senior vice president of asset management with Drawbridge Realty.

Uplands Corporate Center sits within a 48-acre park-like campus with on-site walking and running trails. Access to downtown Austin and Austin International Airport is a major attraction for tenants locating in the southwest Austin market. To provide quicker access to Southwest Parkway, Drawbridge has installed a traffic signal at the entrance to Uplands Corporate Center. This will significantly improve drive times to downtown and the airport, especially during commute hours. In addition to the three-story commercial office building, Drawbridge is completing a parking garage expansion which will deliver a 4.5/1000 parking ratio, electric vehicle charging stations and dedicated Zipcar spaces.

Phase 1 of Uplands Corporate Center, a 167,000-square-foot mid-rise building, is fully leased. Drawbridge renovated and repositioned the building for multiple tenants after acquiring the property from the previous owner, a subsidiary of Textron Inc., in 2014. Tenants include Wells Fargo Bank and Cycle Solutions.

“Our first building at Uplands Corporate Center leased up very quickly and we continue to see solid demand here from growth companies, which is one of the reasons we really like the Austin market,” said Elmendorf.

Drawbridge is no stranger to the Austin market. In 2013, the firm acquired 3300 Duval Rd., a 77,000-square-foot low rise office building in northwest Austin. The building is 100% leased to three tenants, including the R&D headquarters of Myriad Genetics, a firm specializing in molecular diagnostics. Drawbridge also previously acquired, renovated, leased and sold 3100 Alvin Devane Blvd., a 73,000-square-foot regional headquarters building just three miles from Austin International Airport and 3208 Red River St., the world headquarters of Xeris Pharmaceuticals.

Class-B product closed the third quarter on a high note with positive absorption and an 80-basis point decrease in vacancy, according to CBRE’s office report. Market-wide average asking rates dipped slightly by $0.37 per square foot quarter-over-quarter, while class-A rates increased from $28.40 in second quarter 2020 to $28.97 per square foot in third quarter 2020.

The market-wide vacancy rate rose 30 bps from 14.8% in second quarter 2020 to 15.1% in third quarter 2020. However, the Northeast and South submarkets registered a vacancy drop of more than 2 percentage points in third quarter 2020, says CBRE.