How the latest placemaking strategies are impacting the CRE market
It’s no secret that Austin has boomed with development over the decade, growing nearly 1,000 new office buildings in that time alone. That sort of development doesn’t get done without the public and private sectors working together. It’s not always pretty (see the Statesman Redevelopment project), but when done correctly, it can transform areas for the greater communal good (look at the Domain’s transformation).
Let’s dive deeper today into the current development project closest to completion, The Republic Tower.
Lincoln Property Company’s The Republic with Republic Square Park in the Foreground
Suppose you’re keeping up with the ever-changing Austin skyline. In that case, you’ve probably noticed The Republic over at 401 W 4th St. The Lincoln Properties development is set to be complete in the coming months of 2025. There’s a looming question around the safety of the neighboring Republic Square park and what that means for those looking to move into CBD’s newest tower.
The park, once a former parking lot for nearly two decades in the mid-1900s, has been transformed thanks mainly to the public-private partnership between the Downtown Austin Alliance, the Austin Parks Foundation, and the Parks & Rec Department.
Despite the strong partnership, locals see more to be done regarding public safety. Being one of downtown’s few public green spaces, it’s acted as a hub for the unhoused over recent years (especially with all the construction in/around the block).
City officials hope that completing the Republic and ATX Tower will bring more foot traffic to the area. Between the two buildings, there is not only nearly 1MSF of prime office space but also over 350 apartments. That’s a significant injection of life into this pocket of downtown. In conjunction with the DAA’s push for more activations in the space, this draws parallels to the successful redevelopment of NYC’s Bryant Park from the 1990s to the present.
The Republic has been one of the more successful pre-leased projects we’ve seen so far in the city. Despite Vista Equity Partners placing a large chunk of their space on the sublease market, the building is over 50% pre-leased and has shown significant signs of activity.
Davon Barbour, DAA’s newest CEO, has a history of community and economic development. He spoke last week at the Bisnow State-of-the-Market panel and shared his vision for continued park activation, leveraging private investment to enhance the public realm.
Tenants in today’s market want spaces that are convenient to them and full activation of amenities during working hours. The Republic is hitting on this both within its own building with its hospitality-focused amenity offering and just outside with what Republic Square has to offer.
The earlier the developer can engage the local municipalities in a project, the more likely a win-win development can be created.
Aligning private and public interests helps remove unnecessary friction when creating valuable and desirable places.