The office building that will be the tallest in Austin is now half pre-leased.
Pillsbury Winthrop Shaw Pittman inked a deal to lease a full floor at The Republic bringing the pre-leasing level to 50 percent, according to a news release. The law firm will occupy 28,000 square feet on the 32nd floor of the building.
The Republic is a 48-floor office building that’s being built by co-developers Lincoln Property Company, Phoenix Property Company and DivcoWest. It will be located at 401 West 4th Street in downtown Austin.
The 800,000-square-foot tower was designed by Durham, North Carolina-based Duda Paine Architects. The Republic’s 19th floor is being reserved for amenities like a fitness center, spin room and a club room with a lounge and bar. It will also include a 25,000-square-foot terrace. The space is being designed by Austin-based Michael Hsu Office of Architecture.
It’s expected to top out in January and open next summer.
Pillsbury’s fellow tenants at The Republic include law firms Kirkland & Ellis and O’Melveny & Myers in addition to Vista Equity Partners.
Pillsbury is headquartered in New York and opened its Austin office in 2014, the release said. Earlier this year, the firm’s Houston branch relocated to 28,000 square feet at Hines’ 609 Main, a 48-story trophy office tower in downtown Houston.
Pillsbury’s moves in Austin and Houston are examples of the “flight to quality” trend that’s defined the office market. Companies are moving from older properties to flashy new offices with top-tier amenities. It’s created a larger divide between trophy assets and vintage office space, resulting in an abundance of outdated, empty space.
Austin’s office vacancy rate hit a record 25.2 percent over the summer, as developers delivered more than 2 million square feet of space between April and July.
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