Tokyo Electron Leases 99K SF in Stream’s RiverSouth in Austin – The Real Deal
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Largest office lease in Austin so far this year; third-largest since 2022
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An Austin office building constructed last year will be home to Tokyo Electron’s North American headquarters.
The semiconductor manufacturing equipment producer has leased almost 99,000 square feet in the RiverSouth building at 401 South First Street, which was developed by Stream Realty Partners, the Austin Business Journal reported.
The lease comes more than four months after Tokyo Electron revealed plans to sell its 107-acre Southeast Austin campus, at 2400 Grove Boulevard.
The company’s RiverSouth space will be roughly half the size of its 189,800-square-foot campus, where it’s operated for the last 30 years. Despite the reduced footprint, Tokyo Electron assures that its operations will not diminish.
The decision to reduce its square footage comes in light of changing work dynamics, with some employees already working from client facilities like Samsung’s Austin campus. Tokyo Electron’s restructuring plan involves consolidating its corporate functions at the new headquarters while exploring options for its research, development and training arms.
The 15-story RiverSouth offers a modern and technologically advanced environment. It received a platinum rating from SmartScore for its innovative design and functionality. Features like energy monitoring, touchless operations, and individualized electric billing contribute to a sustainable and user-friendly environment.
The listing for the company’s southeast campus comprises two office buildings and 60 acres of undeveloped land, presenting potential buyers with diverse opportunities. Prospective buyers have the option to purchase the entire property or one of two sections.
The Tokyo Electron lease is Austin’s third-largest since 2022. The largest deal last year came from IBM snagging 320,000 square feet in Hines’ North Austin office development in the Domain. Trailing that deal was a 102,400 lease by Amazon, at 11601 Alterra Parkway, also in North Austin.
—Quinn Donoghue
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