Exciting Developments in Austin: PayPal Expands Presence in Domain Tower 2
In the bustling city of Austin, big things are unfolding with the recent leasing activities in the Domain area. Known for its vibrant tech scene, Austin’s commercial real estate market just got a boost with two major fintech companies making moves in the trendy Domain Tower 2.
PayPal Doubles Down with a Huge Expansion
Let’s dive right into the action! First up is PayPal Inc., the recognizable online payment giant, which has made a significant leap by expanding its office space at the stunning Domain Tower 2, located at 1025 Alterra Parkway. PayPal didn’t just take a little extra space; they more than doubled their footprint from a sizable 60,262 square feet to a whopping 151,705 square feet.
Initially, back in May 2022, PayPal occupied the top two floors of the tower, taking up around 18% of the building’s total area of 332,265 square feet. Now, they’ve grown to nearly half of the entire rentable space in the tower, making this one of the brightest highlights in the commercial real estate ecosystem!
Wise Making Waves in Austin
But wait, there’s more! Joining in on this exciting news is Wise PLC, a London-based fintech company, which has just secured an impressive 60,682-square-foot lease at the same tower. Wise’s expansion marks the relocation of their U.S. headquarters to our capital city, Austin, bringing even more corporate clout to the area.
Wise signed on the dotted line this month, while PayPal took their space in September. Together, these leasing agreements have pushed Domain Tower 2 to be roughly 75% leased. With such dynamic tenants, it’s no wonder the interest in this tower is heating up!
More to Come in Domain Tower 2
Right now, besides PayPal and Wise, two other tenants are already making themselves at home: Samsung Electronics Co. Ltd. and Shiftkey. In total, about 80,000 square feet of space still beckons for new tenants, with 60,000 square feet of that being contiguous on floors 18 and 19—an enticing opportunity for any business looking to set down roots in Austin.
The Future Looks Bright!
Domain Tower 2 is part of a larger vision by Stonelake Capital Partners. This building is their third Class-A office development and the fifth overall in the expanding Domain South End district. Once the entire 15-phase development is complete, it will boast a grand total of 2,500 residential units, 1.6 million square feet of office space, a hotel, and a lively retail hub!
Talk about a booming future! The remaining land in the district has been entitled for an impressive 10 million square feet of additional development, which means even more opportunities are just around the corner for businesses and residents alike.
Who’s Behind These Leases?
As for the masterminds behind these impressive deals, they include Richard Paddock and J.D. Lewis from HPI and Stonelake’s Will Jenkins, who co-represented Domain Tower 2. PayPal had its negotiations handled by CBRE’s Nate Stricklen, Tim Donohue, and Kristi Simmons, while Wise worked with Aquila Commercial’s Chris Perry and Cresa’s Paul Delaney.
The excitement in Austin’s commercial real estate landscape is palpable. With major players like PayPal and Wise making their moves, it’s certainly an intriguing time for the city and all its aspiring businesses!
