Growth in the fintech sector has brought two tenants to a Stonelake Capital Partners office asset in North Austin.
Online payments giant PayPal has expanded its footprint by more than 90,000 square feet, increasing its presence in Domain Tower 2, at 10025 Alterra Parkway, to 151,700 square feet, the Austin Business Journal reported. Wise PLC, a London-based financial services firm, also secured space in the tower, inking a deal for 60,700 square feet.
PayPal’s expansion is one of Austin’s biggest leases this year, and it would rank third among The Real Deal’s 2023 Austin office leasing rankings.
PayPal’s lease was co-represented by CBRE’s Nate Stricklen, Tim Donohue and Kristi Simmons, while Wise worked with Aquila Commercial’s Chris Perry and Cresa’s Paul Delaney. Representatives from HPI were also involved in the negotiations.
PayPal’s decision to double its office space follows its initial lease in May 2022, when it took the top two floors of the 332,300-square-foot tower. At that time, the company occupied about 18 percent of the building. With the new lease, PayPal now controls almost half of the building’s rentable space.
Wise’s office space, which will serve as its U.S. headquarters, will be located on the 16th and 17th floors.
Domain Tower 2, which is now 75 percent leased, also houses global tech giant Samsung and Shiftkey, a healthcare staffing company. About 80,000 square feet is still vacant in Domain Tower 2. An available contiguous space, spanning 60,000 square feet, is located across the 18th and 19th floors.
Nvidia is another tech firm seeking to expand its presence in the Austin area. The chip-making titan is in the market for about 300,000 square feet. If the company secures the mega lease, it would add to its existing offices in North Austin, which includes 52,000 square feet at 11001 Lakeline Boulevard and 5,000 square feet at 10801 Mopac Expressway.
Despite strong interest from the tech sector, Austin’s office landlords are struggling to fill empty office space. The city’s second-quarter office vacancy rate was 25.2 percent, a record high driven by the delivery of 2.1 million square feet of new office space, according to JLL.
— Andrew Terrell
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