Plans for Final Phase of Garza Ranch Look to Nature
Upon completion, building two will join building one, a 250,000-square-foot class-A office building owned by SHI International, which is set to be fully occupied in first quarter 2020.
AUSTIN, TX—Plans were recently announced for Garza Ranch building two, a 150,000-square-foot class-A office building. This is the last phase of the highly anticipated 34-acre mixed-use Garza Ranch development in Southwest Austin.
“The final phase of development at Garza Ranch marks not only a significant milestone for this mixed-use campus, but also demonstrates our continued investment and expansion in Austin,” said Jerry Sweeney, president and CEO of Brandywine Realty Trust. “Working alongside our talented group of partners, we have brought our vision for Garza Ranch to life by creating a connected community in an inspiring and natural setting.”
Brandywine selected architecture and engineering firm, Page Architects, for building two. Page’s design will feature floor-to-ceiling windows to create a light-filled interior and a lobby finished with stone and wood. Tenants will be immersed in the community setting that defines Garza Ranch, with direct access to Garza Commons, a two-acre park featuring shaded pavilions and lounge spaces designed for collaboration and relaxation.
The Violet Crown Trail, a 30-mile trail that links Zilker Park and the Barton Creek Greenbelt, and extends to Hays County, bisects Garza Ranch and joins a network of urban sidewalks and bike trails there. As a result, Garza Ranch’s public spaces will act as one of the major social and interactive hubs for this landmark city trail system.
“Garza Ranch will introduce a truly unique community to Southwest Austin,” said Lawrence Speck, senior principal at Page. “Inspired by the development’s prioritization of inclusivity, and the abundance of natural elements and vibrant spaces, we were able to design a building that embodies the spirit of Austin, while delivering the functionality required by today’s modern workforce. It has been a pleasure to work alongside a company that aligns so closely with our values and possesses a visionary outlook for impactful and sustainable development across the greater Austin region.”
Brandywine Realty Trust also selected JLL to support with leasing efforts. With plans to break ground on building two later this year, preleasing efforts are underway.
“As Austin submarkets continue to thrive, Garza Ranch introduces a premier opportunity, merging the most desirable elements of an accessible and modern urban workplace with the space and serenity of a suburban location,” said Kevin Kimbrough, managing director of JLL Austin. “The notable leasing commitment to the first commercial building on the site reinforces the market’s enthusiasm for expertly planned communities, and we look forward to introducing building two to tenants seeking the best of what the Austin market has to offer.”
Upon completion, building two will join building one, a 250,000-square-foot class-A office building owned by SHI International, which is set to be fully occupied in first quarter 2020; Alexan Garza Ranch, 370 luxury apartments developed by Trammell Crow Residential; and a 140-room boutique Aloft Hotel by hotel development and management company Pathfinder Development, which is set to break ground in early fall 2019.
“Building two is designed to attract large-scale tenants in all industries seeking to expand or relocate,” Bill Redd, Brandywine’s executive vice president and managing director for Austin, tells GlobeSt.com. “As the last remaining full building opportunity at Garza Ranch, building two can support single, or multi-tenant opportunities.”
Brandywine is one of the largest multi-tenant commercial real estate owners and developers in Austin with more than 2.8 million square feet of class-A office space among more than 23 buildings within six campuses. In addition to Garza Ranch in the Southwest submarket, Brandywine is currently developing some of Austin’s most notable projects, including 405 Colorado downtown, Broadmoor in North Central Austin and Four Points in the Northwest submarket.
With one more quarter left in 2019, the Austin office market is poised to have its strongest year ever, according to a recent report by CBRE. Positive net demand surpassed 446,000 square feet in third quarter 2019, while the citywide average asking rate climbed to $38.89 per square foot, a historic high.
Despite the historic high in average asking rates and the phenomenal development pipeline, the defining story of the quarter was 3M officially vacating its old campus in Northwest Austin, creating a dip of 1.1 million square feet in absorption. Pre-leasing activity in new product has remained strong, with more than 51% of the development pipeline having been taken.
With resounding tenant demand and ever-increasing operations costs, the citywide full service gross asking rate for third quarter 2019 hit a new record high for the market at $38.89 per square foot, says the CBRE report.