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BM has taken over Meta's lease at Domain 12 building, located at 11700 Alterra Parkway, Austin, as part of a major real estate shuffle in the city's tech sector. This move marks a significant shift in the Austin's tech landscape as Meta, the parent company of Facebook, is downsizing its Austin-area office footprint as part of a broader cost-cutting strategy. The contrast between these two approaches highlights the dynamic nature of Austin's office market. Despite reaching a record-high vacancy rate of 25.2 percent in the second quarter, developers completed 2.1 million square feet of office space during the same period, most of which remains unoccupied due to demand exceeding supply by 158,400 square feet.

    Cousins Properties, owner of Domain 12, initially kept the identity of the new tenant under wraps, revealing only that a Fortune 100 company would take over Meta's lease. Later, an IBM spokesperson confirmed that Big Blue is the new occupant of the 320,000-square-foot office space. IBM has extended the lease maturity from 2031 to 2040, ensuring a substantial presence at The Domain for years to come and demonstrating its long-term commitment to the Austin market.

    This lease assumption comes as IBM continues to solidify its role in Austin's tech ecosystem. Earlier this year, the company signed a 50,000-square-foot lease for lab space at Parmer Impact Labs. The relocation to Domain 12 also marks the end of a previous agreement between IBM and Houston-based real estate developer Hines. IBM had planned to lease space in the upcoming OneTerra tower at the northern end of The Domain. However, IBM and Hines have since confirmed that they have terminated the OneTerra lease but maintain a partnership for future projects.

    On the other hand, Meta is taking a different approach by shedding major leases in Austin. This includes backing out of moving to Lincoln Property Company's 589,000-square-foot Sixth and Guadalupe tower downtown, which remains unoccupied. Meta is currently seeking a subtenant for a 120,000-square-foot lease at 300 West Sixth Street, and continues to occupy 320,000 square feet in the Third + Shoal office tower. Meta's strategic downsizing comes amid its plan to cut $3 billion in office-related costs. Despite this, Meta still has a workforce of 1,500 employees in Austin, ranking it among the area's top 30 employers.

    IBM, with 6,000 local employees, is one of Austin's top five employers and shows no signs of slowing its investment in the region's growing tech landscape.