North - Northwest Edition | May 2023

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DEVELOPMENT

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As the economic situation in the United States con- tinues to hang in the balance, this trend is expected to continue with unforeseen consequences for the commercial real estate market on Parmer and beyond, Emerick said. Projects in progress From east of I-35 to SH 45 N, Parmer Lane is about a 20-mile stretch of road spanning East, Northwest and far North Austin. Apple moved to Austin in the 1990s, and found a home on Parmer in the early 2000s, according to com- mercial real estate company Aquila. Instead of leas- ing, Apple decided to create its own campus in 2012 and now has two campuses on Parmer with expan- sions on the way. Permits led with the city of Austin as recently as May 9 indicate the company intends to add on several more buildings to its newest campus at 6900 Parmer Lane, though nal site plans are still in the process of being nalized, according to the city. Despite Apple’s continued growth, projects such as The Parmer Innovation Center and 7700 Parmer are facing slower turnaround from interested tenants, real estate agents with the projects said. The Parmer Innovation Center, formerly owned by Dell, was purchased by Karlin Real Estate in 2013 with the intent to create exible and aordable oce space, according to previous Community Impact reporting. Since Karlin’s purchase, the park has expanded from three buildings to 17, representing over 2 million square feet of oce space. Despite this growth in the past decade, the project is now awaiting a major tenant to buy in and pull the trigger on at least 200,000 square feet of new develop- ment on the property, Emerick said. Development at 7700 Parmer is similarly slowed as real estate agents wait for tenants to make their move, said David Putman, Aquila managing principal with the 7700 Parmer project. The 7700 Parmer project is a 120-acre commercial park at the intersection of Parmer Lane and Ander- son Mill Road. Originally built in 2000 for Motorola, the property has 900,000 square feet of oce space in four buildings with tenants such as HP and eBay. The developer has plans to nearly double that in the future with an additional 800,000 square feet in six buildings. Despite the magnitude of these plans, the delivery depends on nding a tenant to buy into the project and push forward, Putman said. “We need a lead tenant or somebody that wants to buy a building to take the next steps. We’re not going to build it speculatively,” Putman said. Doing the math Both the increasing availability of sublease space and the overall decrease in urgency for space indi- cate a slowdown in the commercial real estate mar- ket, Putman said. Data from Aquila’s most recent report for Janu- ary-March 2023 shows for much of Parmer in Austin and Cedar Park, the total amount of space available is not being leased out to tenants as quickly as it has in the previous four years. This delay in the

PROGRESS

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There are several projects in progress along Parmer Lane. Some projects are partially complete and operational, but awaiting buy-in from tenants to nish out their build plans.

LAKELINE BLVD.

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Proposed

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ANDERSON MILL RD.

In progress

MCNEIL DR.

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Partially built, awaiting buy-in for next phase

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1 7700 Parmer Size of project: 900,000 completed, adding 818,100 square feet Estimated completion: TBD Description: This four-building commercial park is looking to add six additional buildings.

2 EastVillage Size of project: 1.5 million square feet of oce space Estimated completion: by 2030 Description: This mixed-use project will oer oce and retail space as well as single-/multifamilyhomes.

3 Pearson Ranch Size of project: 2.6 million square feet of oce space Estimated completion: 2032-2037 Description: This mixed-use project will provide oce, retail, residential and parks space.

4 Apple Campus expansion Size of project: TBD Estimated completion: TBD Description: Apple’s expansion could involve the construction of multiple buildings.

5 9500 Parmer Size of project: 33,669 for building 1, 46,250 square feet for building 2 Estimated completion: mid-2023 for building 1, building 2 TBD Description: The rst three-story building of this project is under development.

6 Parmer Innovation Center Size of project: 2 million square feet completed, adding 200,000 square feet Estimated completion: TBD Description: This 300-acre corporate park is looking to add an additional building to its site.

SOURCES: 7700 PARMER, 9500 PARMER, AQUILA COMMERCIAL, CBRE, CITY OF AUSTIN, EASTVILLAGE, PARMER INNOVATION CENTER, PEARSON RANCH COMMUNITY IMPACT

COMMUNITYIMPACT.COM