Another small-format office development is joining Austin’s sluggish development pipeline.
California-based Redcar Properties is making its debut in the city with a creative office development in the St. Elmo District, about 20 minutes south of downtown, the Austin Business Journal reported.
The 46,600-square-foot project is already under construction at 201, 205 and 207 St. Elmo Road. It will comprise three buildings geared to tenants needing 12,000 to 20,000 square feet, according to CBRE, which is marketing the property. Completion is slated for October.
The CBRE team leasing the project includes John Barksdale, Bo Beacham, Kyle Lewis and Paige Suvalsky.
The project marks one of the last new office developments still under construction in the metro, as Austin’s office pipeline has shrunk amid economic headwinds and elevated vacancy rates. Nearly all of the 2 million square feet of office space under construction is expected to wrap by the end of the year, with 264,000 square feet delivered so far.
Walkable amenities and growth in residential and retail developments attracted Redcar to the historically industrial St. Elmo area, the firm’s head of investments and development Gavin Greenblum said.
The office building will include an on-site restaurant with lunch and dinner service, patios and terraces, solar panels and EV charging stations.
The firm tapped Chioco Design as architect and White Construction as general contractor. It started on the project in October 2024.
Local tech and design firm Kaalo is also betting on creative office space in Austin with plans for a $34 million headquarters project in West Austin.
That 37,500-square-foot development, dubbed Kaalo Studio, is expected to cost $918 per square foot to build, according to a filing with the state.
Redcar said it has three other creative office sites in the Austin metro in the pipeline, though it has not yet provided specifics.
— Judah Duke
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