Big deal

Austin’s tallest office tower opens door to new owner for $580 million

Austin’s tallest office tower opens door to new owner for $580 million

Indeed Tower in downtown Austin
Indeed Tower has a new owner. Courtesy rendering

In a $580 million deal, a Southern California company is buying Austin’s tallest office tower.

Newport Beach, California-based Kilroy Realty Corp. said June 16 that it’s scooping up the 36-story Indeed Tower, which was completed last month, for about $800 per square foot. The 730,000-square-foot high-rise sits at West Sixth and Colorado streets on land leased from the University of Texas System. A 35,000-square-foot former post office on the site is available for office or retail space.

Kilroy is purchasing the property from Dallas-based real estate developer Trammell Crow Co.

At a height of 542 feet, the Indeed Tower ranks as the city’s tallest office high-rise and the fifth tallest building. Its square footage makes Indeed Tower the biggest office building in Austin.

Fifty-seven percent of the space at Indeed Tower already is leased, with Austin-based job website Indeed.com occupying 42 percent of the space through 2034. Aside from offices, the project features 10,000 square feet of ground-floor food and beverage space and a 30,000-square-foot outdoor deck.

“I can’t overstate how well Indeed Tower fits with our strategic and property objectives. It is arguably the best building in Austin, is in one of the best locations, provides us with scale that will support future growth, is anchored by an investment grade technology tenant, and provides a value-add opportunity through lease-up in an office market that is strengthening,” John Kilroy, chairman and CEO of Kilroy Realty, says in a news release.