Cloud computing service company Rackspace Technology signed the second-largest office lease of 2023 in San Antonio. Rackspace Technology signed on for 81,784 square feet at Worth & Associates’ new office building, Ridgewood Plaza II, located at 19122 N. U.S. Highway 281 within Ridgewood Park.
The project has been selected as the winner of the 2024 CoStar Impact Award for lease of the year for San Antonio, as judged by a local team of real estate professionals familiar with the market.
Rackspace Technology moved its headquarters from the San Antonio suburb of Windcrest, Texas, to Ridgewood Plaza II, where it committed to a portion of the first floor, the entirety of the second floor, a portion of the third floor and the entire fourth floor. The lease helped bring the building’s occupancy to 87%.
The new office space marks a significant downsize from Rackspace Technology’s former headquarters in Windcrest, yet the company said it sought to decrease its footprint of space to allow for greater collaboration.
The company added it was drawn to Ridgewood Plaza II because of its amenities and location. Other corporate tenants in the Ridgewood Park area include Marathon Oil and EOG Resources.
Ridgewood Plaza II is a four-floor, 121,000-square-foot office building in San Antonio’s North Central market.
What the Judges Said: “The efforts of Worth & Associates in securing such a fantastic tenant were through successful negotiation and execution of this lease required a remarkable level of tenacity, ingenuity, and creative problem-solving from everyone involved,” said Mike Reyna, president and CEO of TC Austin Realty Advisors.
About the Project: Rackspace Technology signed a long-term lease and is expected to take occupancy this spring.
They Made It Happen: Worth & Associates is the landlord and was represented in lease negotiations by Shawn Gulley, senior vice president of leasing & acquisitions. The tenant was represented by John Worthen and Jeff Miller of JLL.