Downtown Austin’s office problem just got 100,000 square feet bigger.
Software giant Indeed placed the 27th, 28th and 29th floors at 200 West Sixth Street up for sublease over the weekend. The space spans some 98,000 square feet at the building, which is better known as the Indeed Tower.
Todd Chessher and two CBRE agents, John Gump and Nate Stricklen, are marketing the space.
Last month, Indeed put a 184,000-square-foot building in the Domain up for sublease. Two weeks later, the firm announced it had leased the top ten floors at the 36-floor Indeed Tower, covering some 300,000 square feet.
“As is standard with many long-term commercial leases, we strive to retain flexibility in how much space we occupy at a given time to align with our current needs,” a spokesperson for Indeed said. “We determined that subletting a portion of our long-term lease makes sense for our teams and our business at this time.”
The move puts Austin’s total sublease availability at 6.2 million square feet, a record for the city. The highest concentration of that space is in the central business district, where 1.1 million square feet are up for sublease.
“The amount of sublease space had been hovering at just over 6.1 million square feet for most of the summer, but this new addition has elevated to an all-time record,” said Steve Triolet, a researcher and market forecasting expert with Partners Real Estate.
Read more
Commercial
Austin
Indeed subleases 184,000 sf in the Domain, expanding downtown footprint
Commercial
Austin
Meta backs out of plan to occupy 589K sf in Austin
Commercial
Austin
Texas office distress takes awkward shape: the sub-sublease
Layoffs and remote work have spelled trouble for Austin’s offices as the city’s techy tenants cut their footprints. Landlords have weathered a barrage of subleases and downsizings since the Fed began raising rates last March, including Meta’s once-unimaginable decision to sublease 589,000 square feet at a brand new tower for which it was set to be the only commercial tenant.
Office property values are down by about 30 percent since rates started to rise, Triolet said.
Factoring in the new sublease, owners are marketing just under 20 million square feet of office space in Austin.