IBM is stepping in to fill the 320,000-square-foot office space that Meta Platforms is vacating at The Domain office development in North Austin.
The tech giant will assume Meta’s entire office lease at the Domain 12 building, at 11700 Alterra Parkway, in January 2026, marking a major real estate shuffle in the city’s tech sector, the Austin Business Journal reported. In contrast, Meta, the parent company of Facebook, is currently shrinking its Austin-area office footprint as part of a broader move to cut costs.
The different approaches highlight Austin’s dynamic office landscape. The move is a positive sign for the market, which reached a record-high vacancy rate of 25.2 percent in the second quarter, according to JLL.
Developers completed 2.1 million square feet of office space in the second quarter. However, most of it remains unoccupied since the amount of space that came to market exceeded demand by 158,400 square feet, with completions more than tripling the five-year quarterly average.
Cousins Properties, the owner of Domain 12, initially kept the identity of the new tenant under wraps, revealing only that a Fortune 100 company would take over Meta’s lease. Later, an IBM spokesperson confirmed that Big Blue is the occupant.
IBM extended the lease maturity from 2031 to 2040, ensuring a substantial presence in The Domain for years to come and showcasing the company’s long-term commitment to the Austin market.
This lease assumption comes as IBM continues to cement its role in Austin’s tech ecosystem. Earlier this year, the company signed a 50,000-square-foot lease for lab space at Parmer Impact Labs.
The relocation to Domain 12 also puts an end to a previous agreement between IBM and Houston-based real estate developer Hines. IBM had planned to lease space in the upcoming OneTerra tower at the northern end of The Domain. IBM and Hines have since confirmed that they terminated the OneTerra lease but maintain a partnership for future projects.
As IBM solidifies its real estate strategy in Austin, Meta is taking the opposite approach. In an effort to reduce its office footprint globally, Meta has been shedding major leases in Austin. This includes backing out of moving to Lincoln Property Company’s 589,000-square-foot Sixth and Guadalupe tower downtown, which remains unoccupied.
Meta is seeking a subtenant for a 120,000-square-foot lease at 300 West Sixth Street, and it continues to occupy 320,000 square feet in the Third + Shoal office tower.
Meta’s strategic downsizing comes amid its plan to cut $3 billion in office-related costs. While the company is moving away from large office spaces, it still has a workforce of 1,500 employees in Austin, ranking it among the area’s top 30 employers.
IBM, with 6,000 local employees, is one of Austin’s top five employers and shows no signs of slowing its investment in the region’s growing tech landscape.
— Andrew Terrell
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