IBM’s space at Parmer Impact Lab in Austin is getting a $20 million build-out.
Karlin Real Estate plans to customize the tech giant’s 47,000-square-foot space, according to a recent state filing. The cost works out to $425 per square foot.
IBM inked the deal to lease 50,000 square feet of lab space at 12829 Parmer Ridge Drive in January, less than a year after forming its regional hub near the Domain. CBRE and Cushman & Wakefield brokered the deal.
Work on the space is expected to start next January and be completed in November 2026. Gensler is the designer on the project.
The lab is part of Parmer Austin, a 297-acre, $1 billion master-planned technology and office campus developed by Karlin.
Tech companies have been shedding Austin office space since the pandemic, and IBM is downsizing, too.
Big Blue occupies 800,000 square feet of office space between two buildings at the Domain. It’s moving to a new Hines development in the Domain, at 11901 North MoPac Expressway, in 2027. IBM will occupy 320,000 square feet of the 500,000-square-foot complex.
Hines Domain Northside will consist of two 14-story office buildings.
Meanwhile, Google plans to finally move employees into the downtown “Sail Tower” by the end of the year. The building has sat empty since its delivery in 2022. Google signed the lease in 2019.
Though Google is leasing the whole 35-story, 804,000-square-foot building, it’s long been rumored that the tech giant is subleasing part of its Sail Tower space. Its lease expires in 2038.
The Sail Tower, at 601 West 2nd Street, traded hands in December, when developer Trammell Crow Company sold it to Atlanta-based Cousins Properties for $521.8 million.
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