Ever since Endeavor Real Estate Group began developing Domain in North Austin, the city’s commercial center of gravity has been shifting away from downtown. The move continues after applications were lodged late last week for two new office buildings in the Muller neighborhood in the north-east of the CBD.
The move comes amid a wave of subletting by some of the CBD’s biggest tenants.Yuan has been released Nearly 700,000 square feet Over the past year, TikTok has returned to the market, recently announcing that it will exit the market 126,000 square feet 300 Colorado.
ShorensteinThe San Francisco-based real estate investment firm plans to build two four-story office buildings at 4901 Mill Avenue. The buildings total 333,700 square feet and are connected by a 6-story garage. Nicknamed “Charlie” and “Delta,” the buildings are expected to cost $90 million. They mark the final installment of Shorenstein’s office development in Müller, which is expected to consist of four buildings spanning 800,000 square feet.
The buildings were designed by Page Southerland Page, the design firm behind the luxury apartment complex 70 Rainey. Work is expected to start in January 2024 and run for approximately two years.
Mueller is a 700-acre master-planned redevelopment of the old Mueller Municipal Airport just east of Interstate 35. Auckland developer Catellus, which is overseeing the development, has focused on New Urbanism principles such as walkability and accessibility in its planning. Overall, the developer is expected to provide approximately 4.75 million square feet of commercial space for 18,600 employees by the time the district is completed. As of a year ago, there were 130 businesses in the area, occupying 2.4 million square feet of office space.
Anchor tenants include Texas Mutual Insurance, which is headquartered in the area on a 270,000-square-foot space. Catellus bases its regional operations in the former airport building.
Shorenstein made a splash in Austin with an early investment in Domain, another master-planned community north of downtown. There, Shorenstin’s portfolio spanned 630,000 square feet of office space and 25,000 square feet of retail space. It sold the portfolio in 2018.
In January 2022, Shorenstein sold the first of his four Mueller buildings to the Texas State Teachers’ Retirement System. When Shorenstein completes the second building in 2024, TRS will transfer staff to the two offices. The transfer of the pension system to Mueller marks a major departure for long-term tenants in downtown Austin. in october, TRS sells its downtown headquarters Alexandria Real Estate Equities is a Pasadena-based real estate investment trust focused on building life sciences “clusters” in tech hubs like Seattle and San Francisco.
Shorenstein had not commented on the project as of press time.
