Indeed is looking to sublease all five floors of Domain Gateway, putting 184,000 square feet of Class A space back on the market. The job search company, co-headquartered in Austin and Stamford, Connecticut, leased the building at 2900 Esperanza Crossing in 2019.
The move comes as Indeed plans to expand its footprint in downtown Austin, TRD has learned, a blow to the Domain, a newer area of office activity popular with technology companies but a 20 minute drive north of the urban core. It also means Austin now has more than 6 million square feet of sublease space, according to Steve Triolet, a researcher and market forecasting expert with Partners Real Estate.
The property, called Domain Gateway, was built by Endeavor Real Estate Group and purchased by KBS in 2011. KBS then sold it in 2021 to a Boston-based LP whose identity couldn’t immediately be confirmed.
Indeed still has several other offices in Austin, including a tower in the Domain just south of Gateway. It is the latest high-profile tech firm in the city to put office space back on the market, following in the footsteps of Meta, which has backed out of nearly 700,000 square feet in Austin in recent months.
Office vacancy is at its highest level in Austin since at least 2009, according to a recent report from JLL. On top of the general malaise in commercial markets across the country, Austin’s landlords have been hit hard by cuts to staff and office space by the major tech companies that are some of their biggest tenants.
Meanwhile, sub-subleases have become a significant market of their own in Texas, as would-be saviors back out of space that was already subleased.
Indeed plans to expand its footprint downtown at a “new, state of the art” office, according to a company spokesperson. While the exact building is not yet known, the spokesperson said Indeed has leased several floors already.
This post has been updated to include information about Indeed’s plans to expand in downtown Austin which came in after initial publication.
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