In a significant shift within the tech industry’s real estate landscape, Meta has announced it will vacate its office space in Austin, Texas. This decision comes as part of a broader trend among major corporations reassessing their office needs in a rapidly evolving work environment. As Meta departs, IBM is set to step in, taking over 320,000 square feet of office space in The Domain, an area known for its vibrancy and modern amenities.
The Domain, a mixed-use neighborhood featuring high-rise office buildings, retail spaces, and accommodations, has recently attracted heightened interest from tech giants. Meta initially leased Domain 12, a striking 15-story glass tower, but has decided to relinquish its lease effective January 1, 2026. The new IBM lease will extend to 2040, securing a significant presence for the company in this prime location, which boasts attractive features such as outdoor terraces, a fitness center, and a café.
IBM’s history with The Domain dates back to 1999 when the tech giant sold its original 235-acre research campus. Despite previous plans to relocate by 2027 to a newly constructed campus, the company has opted to maintain its footprint in Austin, emphasizing its commitment to investing in the region and enhancing experiences for its clients and employees.
This transition underscores the growing demand for office spaces that integrate lifestyle amenities, as businesses recognize the importance of creating appealing work environments to attract and retain talent. According to Colin Connolly, the CEO of Cousins Properties—who owns the building—the shift reflects a rising trend in lifestyle office properties, vital for fostering company culture and employee satisfaction.
While Meta streamlines its office space, there’s a notable reflection of the changing dynamics in Austin’s office market. Over the past few years, Meta has sought to release around one million square feet of office space throughout Austin. This includes its decision not to occupy a recently completed 586,000-square-foot office in the Sixth & Guadalupe Tower, Austin’s tallest structure. The company also placed 120,000 square feet at 300 West Sixth Street on the sublease market. Despite these changes, Meta retains a presence with 320,000 square feet in the Third + Shoal building.
Outside of Austin, Meta’s strategy has led to similar downsizing efforts in Bellevue, Washington, and Fremont, California, where properties were either subleased or listed for potential new tenants. The ongoing evolution of the corporate workspace in Austin has resulted in a significant increase in vacancy rates, with some estimates suggesting that as much as 20% of the city’s office spaces are unoccupied. While smaller leases are still being secured, larger headquarters are being reconsidered by many tech firms, leading to a transformative phase in the market.
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As the office landscape reshapes itself in Austin and beyond, the shift of major players like Meta and IBM marks an important chapter in the ongoing dialogue about the future of work. The balance between remote flexibility and in-person collaboration continues to evolve, influencing how tech companies approach their real estate strategies in dynamic urban centers.