Sizmek snags HQ space at new IBC Bank Plaza in downtown Austin

Aug 29, 2014
Austin Business Journal

Sizmek Inc., a digital advertising company spun off from the former Digital Generation Inc., is moving its headquarters to Austin from North Texas and has signed a lease for 17,077 square feet at the new IBC Bank Plaza downtown


The new lease reflects what many real estate brokers have been saying for the past couple of years: Austin is one of the hottest office markets for tech companies. In fact, CBRE Group Inc. ranks Austin as the No. 2 market in the country for tech growth with a 34 percent increase in jobs between 2011 and 2013. The company's recent tech report is available here


Though office space has been at a premium in downtown Austin during the same time frame, delivery of two new buildings — the IBC Bank Plaza at 500 W. Fifth St. and Colorado Tower at 301 Colorado St. — provide tenants with new options


Will Douglas and Jerry Frey with CBRE Group Inc. represented Sizmek in its office search


“The IBC building checked all the boxes for Sizmek, and we made a really good deal,” Douglas said


Sizmek represents a fairly new corporate entity as it was spun off as a separate company when Dallas-based Digital Generation was acquired by Extreme Reach Inc. last year


Sizmek currently has about 50 people in Austin in offices at the Silicon Labs building on the south end of downtown at 200 W. Cesar Chavez St. Employees will move to the new offices along with C-suite executives that have relocated here, hopefully by Jan. 1, 2015


“We took the space with an eye to the future,” said Jack Reynolds, corporate vice president of human resources for Sizmek


Reynolds wouldn’t say how many people eventually will be based at the IBC building, which is wrapping up construction and should be ready for tenants either in late September or early October. The company has about 900 employees based in 48 countries


Sixthriver Architects in Austin has been selected to handle Sizmek’s tenant improvements. A general contractor has not been selected, but CBRE Group Inc. will assist in that process


Douglas said Sizmek considered a variety of options. But as always with a hip, millennial workforce, providing amenities for employees was important. The offices at IBC will be close to restaurants, bars, and hike-and-bike trails. It also has bike storage and shower facilities. The availability of natural daylight was important and the IBC design and new construction provided that. The Sizmek space also includes a private balcony, a rare office commodity. Sizmek executives wanted easy accessibility to executive housing west of downtown


It’s unknown what other office tenants have been signed for the building, although the International Bank of Commerce, which owns it, will consume about 27,000 square feet for its regional headquarters


Endeavor Real Estate Group in Austin is the developer and leasing broker. Travis Dunaway, vice president of the office and leasing division at Endeavor, would not say how much of the 195,270-square-foot building is under contract, but did allow that the Sizmek deal is an important one



Print Article opens in new window