One of Austin’s most prominent office towers, the Sail Tower at 601 West Second Street, is now occupied after years of sitting empty. Google has moved into the 35-story, 804,000-square-foot building, ending a period in which the skyscraper remained vacant despite a full-building lease.
The move was confirmed by activity seen inside the building and by a building employee who stated that Google took occupancy late last year before the holidays. Although Google executives declined to comment on the move, this development fulfills their previous statement from March that they planned to occupy the tower by the end of 2025.
Google originally signed a lease for the entire Sail Tower in 2019, with an agreement lasting through 2038. The building was completed in 2022 but remained unused by Google until recently. During this period, estimates based on data from commercial real estate firm Avison Young suggested that Google paid approximately $53 million annually in rent for space it did not use.
Despite paying significant sums for an empty building, Google maintained other offices in Austin, including space at East Austin’s Saltillo development and much of a neighboring tower at 500 West Second Street. It is unclear if these additional leases will continue now that Sail Tower is active.
Investor interest in the property remained strong even during its vacancy. Cousins Properties of Atlanta purchased Sail Tower from Trammell Crow Company for $521.8 million in December 2024, citing confidence in Google’s long-term plans for Austin despite the unused space.
Although Google occupies all floors under its lease, it has been marketing the top six floors for sublease. Digital Realty Trust has expressed interest and filed plans to build out executive office suites and terrace space on these upper levels.
