IBM leases 50K sf of lab space in Austin

Space in Karlin Real Estate’s Parmer Austin business complex to facilitate artificial intelligence software development

IBM Leases 50K SF of Lab Space in Complex Developed by Karlin

IBM CEO Arvind Krishna and Parmer Austin business park in Austin (Getty, IBM)

IBM is expanding its Austin operation at a sprawling business park near Samsung’s gigafactory.

The tech giant has leased 50,000 square feet of lab space in northeast Austin’s Parmer Impact Labs, less than a year after forming its regional hub near the Domain, the Austin Business Journal reported.  

The lab space is part of the Parmer Austin business complex, of which Karlin Real Estate is the developer.

“This new technical space will allow IBM to upgrade our Austin lab facilities to meet the needs of future development, continuing what our company has done since its founding, working with creators, partners and clients to put technology to work in the real world,” IBM’s Dexter Henderson told the outlet.

The space will facilitate functions integral to IBM’s business, including hybrid cloud, artificial intelligence software development. The deal, brokered by CBRE and Cushman & Wakefield, was finalized in December. Terms of the lease weren’t disclosed.

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IBM has historically had a significant real estate presence in Austin, and it occupies 800,000 square feet across two locations in the Domain area. However, the company intends to transition to an office building under development by Hines, at 11901 North MoPac Expressway. IBM plans to occupy 320,000 square feet of the 500,000 square-foot building, which is expected to be delivered in 2027. 

Despite that downsizing move, IBM remains a prominent employer in the region, ranking ninth among Austin’s largest companies in 2023.

IBM’s arrival reinforces Karlin’s vision for Parmer as a nexus for groundbreaking research and development, attracting startups and established corporations, co-founder Matt Schwab said. 

Karlin’s past projects include the Parmer RTP in North Carolina. It is home to Duke University’s Human Vaccine Institute and other life science companies, the outlet said.

—Quinn Donoghue

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