Austin’s tech scene continues to boom, as evidenced by some of the city’s largest office leases signed in 2023. This year saw established tech giants like IBM and AMD renew and expand their footprints, alongside growth from younger companies like Infinitum and Molecular Templates.
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In total, the five largest office leases accounted for over 500,000 square feet of new or renewed office space. As Austin solidifies its status as a tech hub, it is attracting both major players and up-and-coming startups. The diverse set of companies leasing large blocks of office space this year reflects the breadth of Austin’s growing tech ecosystem.
5 Largest Austin Office Leases in 2023
1. IBM
IBM, a global tech company, signed a lease for 319,998 square feet at 11901 N. Mopac Expy in 2Q 2023. This will serve as IBM’s new Austin campus, leaving behind their former offices at 11400 Burnet Road and 11501 Burnet Road.
Once completed, this project will feature two interconnected 14-story towers in the heart of the Domain. IBM and the company’s 6,000 local employees will occupy a total of 16 floors, including one full tower. The project is set to be ready for move-in by 2027.
2. Advanced Micro Devices
Advanced Micro Devices (AMD), a global company specializing in manufacturing semiconductor devices, signed a lease renewal for 98,920 square feet at 7171 Southwest Parkway in 4Q 2023. Advanced Micro Devices also has 145,000 square feet of space at Met Center. AMD first came to Austin in 1979 and has been here ever since.
The Santa Clara-based company makes this move simultaneously with its competitor Qualcomm as they both aim to take advantage of the tech hub in Austin. The Met Center campus includes over 2.5 million square feet of office space and 1 million square feet ready for construction.
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3. The Salvation Army
The Salvation Army, an international charitable organization, leased 56,730 square feet at 501 E. 8th St. in 3Q 2023. This location was previously used as a Salvation Army shelter before closing down earlier this year.
The Salvation Army occupies all three of the building’s floors, which will be used to continue to serve the Austin area.
4. Molecular Templates
Molecular Templates (MTEM), a biopharmaceutical company that focuses on cancer treatments, signed a renewal for 33,147 square feet at Amber Oaks Building J in 1Q 2023. MTEM has occupied this location since 2016.
Molecular Templates was founded in 2001 and has been headquartered in Austin ever since. The company has one other office in New York City.
5. Infinitum
Infinitum, an electric motor manufacturer, signed a lease for 71,192 square feet at Plaza 35 in 4Q 2023. The company has also leased warehouse space in Round Rock at Crystal Park Building D since 2019.
Infinitum, founded in 2016, has been expanding its footprint in Austin and has its sights set on Mexico next. The company hopes to increase its output to 300,000 units by the end of 2024.
Conclusion
The five largest Austin office leases of 2023 demonstrate the city’s continued status as a major tech hub. Large, established companies like IBM and AMD are planting roots and expanding, while also making room for younger companies to grow.
From semiconductors to biopharmaceuticals and electric motors, Austin’s tech scene spans a wide range of industries. With over 500,000 square feet leased amongst these major deals, Austin’s commercial real estate market continues to thrive thanks to the tech sector.
