Austin Business Journal shares, "East Austin is growing fast, but that growth may not include more office space after what's springing up is done.
A variety of topics related to development in East Austin — such as plans to pivot away from office construction, the region's attractiveness to businesses and new real estate projects, and what it could look like in the coming years — were tackled during a panel discussion at the East Austin Growth Summit that included developers and one of Austin’s go-to real estate attorneys.
One major discussion point was how to remain agile and adapt in an office market experiencing high levels of vacancy.
Austin’s office vacancy clocked in at an elevated 24.5% in the first quarter, according to commercial real estate firm CBRE. That has caused a pause in new projects, and experts say the under-construction pipeline of office developments in the city could be cleared out entirely by the end of the year.
For Presidium, that means a shift away for now from office development at its River Park project on East Riverside Drive, Piano said. As a result, the initial phase of that project will feature a mix of residential, hospitality, retail and entertainment uses.
“We used to have two office buildings in this plan, but we’re able to pivot to include more housing and retail,” he said. “We still plan to build office in this development over the long term.”
Kairoi also is planning to start work on the first phase of its 115-acre Bolm Riverfront District project along the Colorado River. Hang said remaining flexible on product mix is hugely important.
“We do have the hope and intend to bring on higher density leases and features,” Hang said. “We’re still hanging on. We believe that’s what the site deserves, but really it’s all market driven for us, with capital availability and what the supply and demand looks like in the market.”
Springdale Green, the Jay Paul Company’s office development where the growth summit was held, is another example of pivoting and remaining flexible in the face of changing market dynamics.
The office campus currently has no tenants. Lituchy said the company had been holding out for a single-building user but has since changed its tune.
“I think we have to pivot and realize this market is a little bit different, and the marketing’s a little bit different,” he said. “That’s why we’re now willing to split the building for full-floor users. Still sizable users, but really making this a multitenant project.”
What hasn't changed is that developers still view East Austin as enormously attractive.
The region wasn’t initially targeted by The Jay Paul Company, Lituchy said, but the availability of land and its status as "the path of growth" in the metro altered its view.
Piano added that much of Austin’s comprehensive planning has been geared toward East Austin, such as the ongoing expansion of Austin-Bergstrom International Airport and other large-scale infrastructure projects that include the widening of IH-35.
As for the future of East Austin? If you ask Suttle, growth trends eventually will turn it into Central Austin as development that's either planned or under construction pushes east toward Bastrop County.
Source: Austin Business Journal
Written by: Cody Baird
Published: May 2, 2025
Posted by Grossman & Jones Group on
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