Indeed is scaling back again, adding more than 100,000 square feet of office space at the Domain to the Austin sublease glut.
The job-search firm confirmed Oct. 21 that it’s seeking a subtenant for 118,185 square feet at Domain Tower, an 11-story, 308,000-square-foot building at 10721 Domain Drive. The space spans the top four floors — each roughly 29,000 square feet — and is being marketed by Savills and independent broker Todd Chessher, the Austin Business Journal reported.Â
The move extends Indeed’s continued downsizing at the Domain, the North Austin business district that’s become a tech hub for firms such as Amazon, Meta and Vrbo. Indeed has full-building leases at both Domain Tower and the nearby 183,000-square-foot Domain Gateway building at 2900 Esperanza Crossing. It’s also the namesake tenant of the 36-story Indeed Tower downtown, where it’s trying to sublease nearly 98,000 square feet.
In all, Indeed controls just under 800,000 square feet citywide and is now marketing about 216,000 square feet for sublease — a sizable slice of the roughly 4.1 million square feet of sublease inventory currently on the Austin market.
Indeed said in a statement that it continuously evaluates the firm’s office footprint based on employee needs. The company already found subtenants for parts of Domain Gateway, including Dun & Bradstreet and real estate analytics firm Zonda. There are still three floors there that remained available until earlier this year, when CoStar data showed they were pulled from the market in February.
Indeed’s shifting office strategy is indicative of broader challenges facing Austin’s once red-hot office market. A flood of new deliveries and persistent hybrid work policies have fueled record sublease supply. Indeed’s retrenchment also follows a wave of tech cutbacks and real estate right-sizing across the tech sector, from Meta’s Austin exits to Google’s space consolidations in other major markets.
Indeed vice president of real estate, David Rudick said last year that the company’s two major Austin hubs — downtown and the Domain — were meant to give workers location flexibility and ease commutes. That dual-hub strategy remains intact for the time being.
— Eric Weilbacher
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