RetailMeNot Considers Downsize In Downtown Austin Tower

A digital coupon provider is mulling over a potential downsize in downtown Austin, a move that would drive up the city’s record-high office vacancy rate.

RetailMeNot could shrink its footprint in the 301 Congress office tower when its 100,000-square-foot lease expires in January 2025, the Austin Business Journal reported. The building is owned and operated by HPI Real Estate Services & Investments.

While the company hasn’t disclosed how much space it plans to retain in the 22-tower, a significant downsize would deliver another blow to a struggling downtown office sector that’s still reeling from the pandemic. Remote work trends continue to linger, forcing a number of companies to shed office space. Austin’s vacancy rate rose to nearly 20 percent in the second quarter, and the amount of available sublease space reached 5.4 million square feet.

“While we aren’t planning to fully vacate the space, we are right-sizing our current office space to support hybrid working trends, while taking advantage of our office location in the heart of downtown,” RetailMeNot’s Elizabeth Moore told the outlet.

RetailMeNot has already worked to reduce its footprint by subleasing portions of its current space to NinjaOne and FinancialForce.

The 301 Congress office served as RetailMeNot’s headquarters until Ziff Davis acquired the company in 2020, after which it became a hub for all Ziff Davis’ Austin-area employees.

Recent upgrades at the site include a transformed alley with seating, new lighting and a six-story mural. A lobby renovation is also in the works, featuring a coffee bar that can transform into a cocktail lounge in the evening.

With 301 Congress being an older building constructed in 1985, rents are relatively low compared to newer buildings in the central business district at around $40 per square foot, according to HPI’s Richard Paddock, who handles leasing at the tower.

Class A office space in the downtown area costs an average of $71.24 per square foot, while Class B office space costs $49.52, the outlet reported, citing data from JLL.

—Quinn Donoghue