Technology giant IBM is taking over a big office lease within The Domain in Austin, Texas, from Facebook parent Meta in a building owned by Cousins Properties, an Atlanta-based real estate investment trust.
Armonk, New York-based IBM is set to assume Meta's lease for the entire building at 11800 Alterra Parkway known as Domain 12 on Jan. 1, 2026. IBM, which ranked No. 63 on the Fortune 500 list this year of the largest publicly traded U.S. companies, also extended Meta's lease term from 2031 to 2040 at the 17-story, roughly 320,000-square-foot office building in North Austin, according to Cousins.
Meta's decision to offload the office lease comes after consulting firm Accenture laid off about 900 employees working at Domain 12 last year because of a "change in client contract requirements," according to letters Accenture sent to the state.
An IBM spokesperson confirmed the lease with CoStar News, saying, "we expect to move Austin-based IBMers into new, modern offices in 2026. This investment will establish an even stronger ecosystem for IBM, its clients and partners, building on our more than 55-year tenure here."
IBM's lease at the Cousins-owned office building comes as the tech company has terminated its lease agreement with landlord Hines to serve as an anchor tenant of OneTerra, a proposed office project in The Domain, the IBM spokesperson said.
The OneTerra project is still planned and Hines is actively engaged in conversations with other potential tenants, according to a Hines spokesperson.
Cousins' President and CEO Colin Connolly said in a statement the REIT was excited to find a creative solution that adds another global tech company to the REIT's portfolio at The Domain, Austin's so-called second central business district.
Cousins' portfolio at the Domain comprises 2.5 million square feet and is currently over 99% leased, according to a statement from the REIT. Connolly added that The Domain provides an experience with the amenities that top companies recognize as a "critical tool" to help drive employee recruitment, retention and culture.
IBM's lease at Domain 12 is a homecoming of sorts for the technology company and brings the mixed-use development full circle. IBM sold the land that would become The Domain to developer Endeavor in 1999. Endeavor decided to build a walkable, mixed-use development that included 700,000 square feet of retail space, 80,000 square feet of office space and 425 multifamily units during phase one that opened in 2007, according to Endeavor's website.
Domain 12, a four-year-old office building, is adjacent to The Domain's main dining and entertainment district within the mixed-use development. The office building itself has its own cafe, outdoor terraces, fitness center, bike storage and has immediate access to hiking and biking trails.
"Austin is an extraordinary — and growing — center of talent innovation, and IBM remains committed to investing in new experiences for our clients and employees in this market," the IBM spokesperson added.
For the record
Cushman & Wakefield represented IBM in the deal.