As Meta moves to shrink its office footprint, the Facebook parent is backing out of a plan to fill a new building in downtown Austin.
The tech giant plans to sublease rather than occupy the 589,000 square feet it leased at Lincoln Property Company’s Sixth and Guadalupe, The Real Deal has learned.
The massive lease, announced in January, is for all of the office space at the under-construction, 66-story tower, and is one of the largest office leases in city history.
Lincoln Property Company declined to comment, but Andrea Beasley, a spokesperson for Meta, confirmed the decision.
Now, while that's not surprising, that is a rather large amount of office space being delivered without a tenant. I get Austin is exploding and companies are relocating/expanding there, but I wonder how quickly that can be filled up.
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Now, while that's not surprising, that is a rather large amount of office space being delivered without a tenant. I get Austin is exploding and companies are relocating/expanding there, but I wonder how quickly that can be filled up.
This will likely hinder other office projects from moving forward. It’s also being said that Google is reconsidering their lease at Block 185.
AUSTIN, Texas, Nov. 1, 2022 /PRNewswire/ -- Standing taller than any current building in Austin, Sixth and Guadalupe has topped out at its final height of 865 feet. This much-anticipated milestone has been two and a half years of a steady vertical climb and was met successfully, even with a backdrop of skilled labor shortages, a pandemic, and market inflation.
Sixth and Guadalupe is owned and managed by Kairoi Residential, Lincoln Property Company, and DivcoWest. Construction is led by JE Dunn Construction and designed by Gensler.
In a sign of how fast the market has turned down in some places, companies are giving up space that they leased only months earlier. Meta, the parent of Facebook, recently decided to sublet all the space that it signed up for about 10 months earlier in an Austin, Texas, office tower called Sixth and Guadalupe. Meta must still pay the rent on 589,000 square feet, but its decision to find somebody else to occupy the space could push rents down across Austin,
Edit: I didn't read the last few posts, so sorry for the repost.
Last edited by TempleGuy1000; Nov 17, 2022 at 3:29 PM.
Wow, that building looks huge compared to everything else.
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