By Anca Gagiuc, Associate Editor
Austin, Texas—Trammell Crow Co. and joint venture partner Principal Real Estate Investors announced that 500 W. 2nd St. has topped out construction and also added three additional tenants to its roster. Professional services firm Deloitte, international law firm King & Spalding and CBRE Group Inc. have signed long-term leases at the building.
The Class AA, speculative 29-story office tower features 500,436 square feet of space, including 11,000 square feet of street-level restaurant/retail space. Currently, the property is 60 percent leased and is scheduled for completion in February 2017.
“After nearly two years of construction, the ‘topping out’ of the tower marks an important milestone in the transformation of downtown Austin as well as the ongoing redevelopment of the former Green Water Treatment Plant (GWTP),” Adam Nims, principal of TCC’s Austin Business Unit, said in a prepared statement. “Our diverse tenant roster continues to grow with well-known and distinguished global corporations who are leaders within their respective industries.”
King & Spalding has signed a 22,404-square-foot lease for a portion of the 18th floor, relocating from the Frost Bank Tower at 401 Congress Ave. “The new larger modern office will be a great reflection of the energy and work in the Austin office,” said Mike Stenglein, office managing partner of King & Spalding’s Austin office. “We are excited to move into a dynamic new part of Austin that will foster even greater opportunity for collaboration with our clients in the area and around the country.”
CBRE’s Austin office will occupy 21,688 square feet on the 17th floor. The firm will relocate approximately 100 employees from 100 Congress in downtown Austin. The new office is part of CBRE’s global “Workplace360” initiative, the company’s approach to workplace strategy designed to promote flexibility, mobility and productivity through technology-enabled, 100 percent-free address and paperless offices.
“CBRE is committed to being the leader in emerging workplace strategies,” said Scott Senese, senior managing director for CBRE’s Central Texas region. “With state-of-the-art technology, and an increased emphasis on internal collaboration and flexibility, our new Workplace360 office at 500 West 2nd will provide an environment that enables our professionals to serve our clients better than ever before.”
The office tower is located in the middle of the 2nd Street corridor, adjacent to restaurants, retail, entertainment and live music venues, as well as residences and outdoor amenities, including the Ann and Roy Butler Hike and Bike Trail and Lady Bird Lake. The asset’s floor plates will be among the largest in downtown Austin, averaging approximately 32,500 square feet. Tenants will benefit from the seven outdoor terraces on six different levels throughout the building. Furthermore, the development team is seeking LEED Gold certification and an Austin Energy Green Building 2-Star rating.
Keith Zimmerman and Lexis Livengood with Cushman & Wakefield represented Deloitte. Tim Relyea, Ford Alexander and Holliday Hinckley with Cushman & Wakefield represented King & Spalding and CBRE’s Russell Young and Nate Stricklen represented CBRE in the transaction. CBRE’s Troy Holme, Casey Ford and Katie Ekstrom represented the landlord.
Image courtesy of 500 W. 2nd St.