This move from IBM comes after the company terminated a lease agreement with OneTerra, a 507,000-square-foot office development once intended to become the new Austin hub for IBM employees. The date of the lease termination was not available as of press time.
OneTerra is a project planned by Hines, a global real estate and property manager. IBM was slated as an anchor tenant for the development in June 2023, but following the lease termination, IBM officials confirmed Hines is in active conversations with other potential tenants.
“Hines and IBM maintain a strong, positive relationship and look forward to continuing our work on other strategic partnerships, both now and in the future,” a statement from IBM said.
IBM will assume control of the lease Jan. 1, 2026, after which IBM employees will make the transition to the new space, according to the IBM statement and a news release from Cousins Properties, owners of the Domain 12 building.
“Austin is an extraordinary ... center of talent innovation, and IBM remains committed to investing in new experiences for our clients and employees in this market,” the IBM statement said. “This Austin, TX facility investment will establish an even stronger ecosystem for IBM, its clients and partners, building on our more than 55-year tenure here.”
The backstory
IBM announced plans in early 2023 to relocate to a new Austin hub by 2027. In June of that year, IBM shared plans to serve as the anchor for OneTerra, relocating from its two existing offices near the shopping center to two interconnected 14-story buildings planned by Hines.
While the OneTerra space didn’t pan out, an additional lease for 50,000 square feet was announced in January of this year for Parmer Impact Labs, located in Parmer Austin just east of I-35 in the Tech Ridge area.
On the other hand
Meta’s footprint in Austin has been slowly shrinking for the past few years, as the company seeks to sublease the nearly 600,000-square-foot building at Sixth and Guadalupe it committed to in 2021 alongside other space it occupies in Austin.
Representatives with Meta, Hines, Cousins Properties and leasing company Endeavor Real Estate Group did not respond to requests for comment as of press time.
