Here is how the Apple campus could look when totally finished, with about 3 million square feet. Construction began in November 2019 on the 133-acre site. APPLE

Austin Business Journal reports, "the second phase of construction at Apple Inc.’s Northwest Austin campus shows no sign of slowing down as the tech titan files to raise yet another building on the property.

It's welcome news for a city — and real estate sector — that has been put at risk by big tech employers lately as recession fears loom and the work-from-home model prevails. Facebook (Nasdaq: META) is slimming down in Austin, backing out of space it was to take in Austin's next tallest skyscraper. News of coming layoffs at Inc. (Nasdaq: AMZN) and Google Inc. (Nasdaq: GOOG) has left many real estate pros on pins and needles.

But Apple (Nasdaq: AAPL) appears to be bucking that trend. Executives did not respond to requests for comment about their new Parmer Lane Campus, but according to a Jan. 6 filing with the Texas Department of Licensing and Regulation, the company plans to begin construction on another large building at the property this year.

The latest construction filing is for a project known as Capstone Phase Two AC09. The scope of the work is for a new, 203,941-square-foot, four-story building core and shell. The project carries an estimated cost of $120 million. Construction is expected to begin Sept. 30 and complete March 30, 2025.

It's important to note that TDLR filings are often preliminary and details can change, but in this case they offer a glimpse into the iPhone maker's local real estate plans.

The filing comes just weeks after the company filed to build a 33,000-square-foot building on the property.

That project is expected to begin construction in October 2024 and be completed in August 2025. It carries an estimated cost of $22 million.

Additionally, the company filed on Sept. 29 to complete interior work on a 369,461-square-foot five-story building at the campus. That project carries an estimated cost of $46 million, with work expected to begin in less than a month on Feb. 1, 2023 and be completed in February 2024.

Dallas-based HKS Architects Inc. is attached as the design firm on all three projects. Other companies involved in the campus buildout include general contractor JE Dunn Construction Co., developer Generational Commercial Properties, Studio8 Architects, Nudge Design as landscape architect; Garza EMC as civil engineer; Cardno for structural engineering; and Bay & Associates for mechanical, electrical and plumbing engineering.

Apple announced plans for the $1 billion campus in 2018 and construction crews broke ground in 2019. Initial plans called for Apple to open the first buildings within 30 to 36 months, though it is unclear if that has happened yet.

There has been concern that Apple won't fill out its new buildings as executives intended pre-pandemic. The last word on hiring projections came in November, when Apple confirmed it would taper hiring plans. Apple ranked No. 7 on ABJ's list of the region's largest employers last summer, with about 7,000 local employees spread across locations in Austin.

Continued work on the campus is a welcome sign for many in Austin real estate, especially those concerned about how trends like the rise of remote work will impact office use. Apple is already a major tech employer in the Texas capital, with around 7,000 local workers at last count.

The Austin metro's office vacancy reached 15.5% in November, up from 14.1% at the same time last year, according to Partners’ monthly market snapshot. Availability was up to 21.4% from 18.9% a year ago, too.

As Apple builds more space, another of Austin’s tech titans is seeking less. IBM Corp. recently filed a request for proposal for new Austin office space, and though it’s unknown where the company will relocate, IBM is seeking to downsize from about 800,000 square feet to roughly 375,000. An executive told the ABJ IBM is still bullish on The Domain area, where it has resided for years.

Leasing activity is considered strong in Austin, carried by several leases of 100,000 square feet or more in 2022, according to Partners. That includes Texas Retirement System leasing 235,000 square feet in Mueller Business District, Whole Foods Market subleasing 188,111 square feet at 525 N. Lamar Blvd., TikTok subleasing 126,429 square feet at 300 Colorado St. and Atmosphere leasing 114,413 square feet at 2043 S. Lamar Blvd."


Source: Austin Business Journal

Written by: Cody Baird

Published: January 6, 2023

Posted by Grossman & Jones Group on


Email Send a link to post via Email

Leave A Comment

Please note that your email address is kept private upon posting.