Brandywine Realty Trust is adjusting its plans for the Uptown ATX mixed-use campus in North Austin as IBM prepares to leave its long-term space and office market conditions remain weak.
During an Oct. 23 earnings call, CEO Jerry Sweeney said that the company will now focus on renovating existing buildings rather than redeveloping the entire campus, according to a report by the Austin Business Journal. IBM is set to vacate its 66-acre site at 11501 Burnet Road in mid-2027, which aligns with Brandywine’s timeline for beginning renovations on buildings 902, 904, and 906—together comprising about 500,000 square feet. The renovated spaces are expected to be ready for tenants in early 2027.
Sweeney noted that while demolition has not been completely ruled out for the future, current plans reflect ongoing challenges in the office sector. Vacancy rates have stayed high across Austin and few companies are seeking large new offices. This trend mirrors moves by other developers who have paused new projects or focused on updating existing properties instead. Recent data from CBRE shows average office rents were $64.29 per square foot in downtown Austin during the third quarter of this year, compared with $42.23 per square foot in North Austin.
Earlier this year, Brandywine listed one million square feet of its local office assets for sale—not as a sign of retreat from Austin but to assess current market pricing.
Uptown ATX remains one of Central Texas’ largest mixed-use developments and has been described as “Austin’s second downtown.” To date, Brandywine has completed One Uptown—a 348,000-square-foot office tower—and Solaris House—a residential building with 341 apartments—on the southern end of the property.
Despite broader leasing slowdowns across tech and commercial real estate sectors, One Uptown is attracting tenants: Nvidia Corp. and Axonius Inc., a cybersecurity firm, together lease approximately 109,000 square feet there. Executives say negotiations are underway for another tenant that would bring occupancy up to roughly 60 percent; Nvidia also holds expansion rights within the building. On the residential side, Solaris House reports it is now almost fully leased after initial incentives were offered during its first year; renewal rents have increased by eight percent.
IBM’s next move after leaving Uptown ATX remains unclear following a failed pre-lease agreement elsewhere earlier this year; however, last year IBM took over Meta’s former space at The Domain nearby. The company’s exit presents both vacancy challenges and new possibilities for Brandywine as it looks to reposition Uptown ATX going forward.
