Choppy waters in the tech world are continuing to ripple out into commercial real estate.
Intel is selling its 61-acre corporate campus in Southwest Austin, according to marketing materials from CBRE.
The office complex at 1300 South MoPac Expressway includes 424,000 square feet of space across three connected buildings. The development hosts a 47,000-square-foot lab and 6,800-square-foot data center.
The buildings, which range between three and five stories tall, have 35,000 to 40,000-square-foot floor plates and were built in the late 1990s.
Intel will remain in the office for now as it plans a short-term leaseback, according to the listing. But the materials promote the plot’s redevelopment and releasing potential, noting that it would have cash flow support from the tenant during planning and approval phases of a potential redevelopment.
“We are currently exploring more cost-effective workspace options for Intel’s Austin workforce, which will include right sizing our real estate footprint,” an Intel spokesperson said. The company employs about 2,100 people in the area and says it will take a hybrid-first approach to work.
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The property is marketed by a CBRE team including Russell Ingrum, Jared Chua, Troy Holme and Brad Zampa. Ingrum declined to comment.
Intel has been in cost-cutting mode, and the firm’s real estate footprint will play a key role in reductions. Last week, the firm said it was abandoning plans to build a $700 million “mega lab” in Hillsboro, Oregon, in favor of something more cost-effective. The chipmaker also canceled plans to build a $200 million facility in Israel, according to tech publication the Register. Chief Executive Pat Gelsinger told shareholders he aims to slash costs by $3 billion this year.