Two significant redevelopment sites on the eastern edge of downtown Austin are drawing attention as uncertainty grows about their future use. These parcels, both near Interstate 35, could have a major impact on the area’s development.
The former Frank Erwin Center site at 1701 Red River Street, once home to the well-known drum-shaped arena, has been cleared and now sits as a fenced-off 19-acre lot north of 15th Street. The University of Texas at Austin and MD Anderson Cancer Center had previously planned to build the UT Medical Center there, according to reporting by the Austin Business Journal. However, this plan is now in question as the UT System’s board of regents considers an alternative location near The Domain in North Austin.
UT System board chairman Kevin Eltife said in November that the system is seeking “a district for the future,” leading to increased speculation about what might ultimately be developed at the downtown site. Without a guaranteed hospital project, sources suggest that options for the land include academic buildings, research facilities, or civic and cultural projects. Its size and location make it a prominent redevelopment opportunity, though highway expansion and infrastructure challenges could affect its progress.
Nearby, another major property is also being prepared for new development. The Austin City Council recently approved rezoning for the former Teacher Retirement System of Texas headquarters at 1000 Red River Street. This change gives the entire four-acre block a uniform mixed-use zoning designation for office, residential, commercial, and life sciences purposes—removing previous regulatory barriers to redevelopment.
Austin Real Estate Acquisitions LLC acquired this property in 2022 for $108 million; it shares an address with Alexandria Real Estate Equities—a Pasadena-based real estate investment trust specializing in life sciences developments. While no specific plans have been announced publicly by the owner, local business groups have heard that potential uses may complement nearby medical facilities like Dell Medical School and Innovation Tower.
Both sites are located near several large-scale projects: I-35 expansion work, planned changes to the Austin Convention Center, Waterloo Greenway construction, and UT’s forthcoming multipurpose arena north of where Erwin Center stood.
Market conditions will influence how these properties are developed. Office space remains challenging to fill in Austin; third-quarter vacancy rates were above 26 percent with substantial space still available citywide. Even UT’s Innovation Tower—completed in 2022—remains mostly unleased due to limited amenities around it.
