TIER REIT currently owns nearly all of the office buildings and sites for future office space in The Domain, said Scott McLaughlin, senior vice president of investor relations at TIER REIT. He said the company began purchasing the office space in 2015.
The company announced Feb. 12 it bought two existing office buildings just north of The Domain at 11902 Burnet Road and 11921 N. MoPac in early January and rebranded them as Domain Point.
“It will allow us the opportunity in the near term, given the rest of the office space [at The Domain] is 100 percent leased, it offers some expansion and leases with tenants in The Domain,” he said.
Domain Point occupies 9.5 acres and has two buildings and two parking garages. Domain Point 1 was built in 1984 and has 77,000 square feet, and Domain Point 2 was built in 2000 and has 163,000 square feet.
McLaughlin said other than rebranding TIER REIT does not have any plans for renovations. In the long term, he said the site could be redeveloped and hold up to 1 million square feet of office space.
“We look at The Domain as a long-term investment,” he said.
Including Domain Point, TIER REIT now owns seven office buildings at The Domain totaling 1.2 million square feet and also has another office building under construction and five more planned at The Domain, according to its website.
Construction on Domain 11 at 11800 Alterra Parkway began in July, and it will be finished in December. The 15-story building will have 315,000 square feet and will be one of the tallest in The Domain. HomeAway has already signed a lease for the entire building.
TIER REIT has completed design work and permitting on Domain 12 at 11700 Alterra Parkway for the 17-story, 310,000-square-foot building. The firm also aims to finish permitting on Domain 9 and Domain 10 this spring for another 600,000 square feet of office space. McLaughlin said when those three buildings would be built depends on market demand.
Two more additional buildings, dubbed Domain D and Domain G, could also be built in the future and total 300,000 square feet, according to TIER REIT’s site.
“We’re excited to expand what is known as Austin’s second downtown,” McLaughlin said.