Domain Gateway is a Class A office building consisting of
183,911 rentable square feet. The building was delivered to the market in 2009
with a USGBC LEED Core and Shell Silver certification. The interior features a
lobby with travertine stone floors, with walls and ceiling consisting of
limestone and wood with a travertine stone base. The top floor features a
high-valued atrium-like ceiling with an exterior balcony. Since acquiring the
property in 2011, KBS added an additional deck of parking to the building’s
parking garage to accommodate tenants like Indeed.
The surrounding neighborhood, known as The Domain, is a
dynamic submarket in northwest Austin that provides a true live-work-play
environment and is commonly referred to as Austin’s second downtown. Austin’s
Capital Metro commuter rail runs through the Kramer Lane station, which is
directly adjacent to the property and provides commuter service from northwest
Austin to the Central Business District (CBD) to the south. The property also
provides easy access to major thoroughfares, including Highway 183 and 1-35,
and is considered walkable to various shopping, dining, housing and
recreational options such as Nordstrom, Top Golf, multiple parks and the new
Major League Soccer stadium.
“The Domain provides a newer, cleaner and walkable option
for tenants that is much more central to where the majority of the population
lives,” said Giovanni Cordoves, senior vice president for KBS and asset manager
for the property. “We couldn’t ask for a better partner than Indeed for the
future tenancy of Domain Gateway. As an already large and growing company,
especially with regard to its growing footprint in Austin, we know that Domain
Gateway will provide Indeed with the appropriate location to continue to
attract and retain the best and brightest talent in the region.”
Over the last few years, Austin has risen to be considered
one of the most desirable office markets in the country. According to Cushman
& Wakefield’s Austin Office Q4 2018 report, unemployment and vacancy rates
remained low at 2.9 percent and 10.6 percent, respectively. In addition to the
business-friendly climate, the area provides a strong employee recruiting base
as a popular relocation option for the younger generation looking for jobs and
is home to major universities such as UT, Texas A&M and Texas State.
Leading companies like Google, Facebook, Amazon and Oracle have recently
expanded their footprints in the area, as well.
“Outside of downtown Austin, The Domain is the strongest
submarket in Texas,” said Rodney Richerson, regional president for KBS. “We
continue to have strong leasing success with our portfolio that is focused on
urban centers with walkable amenities, similar to The Domain. With strong
demand from a long list of the top names in technology and other industries for
this availability, we are extremely pleased to have landed a long-term lease
with Indeed, the top trafficked website for job searches.”
CBRE and Todd Chessher Commercial Leasing and Brokerage
represented Indeed Inc. in this lease transaction. Troy Holme and Katie Ekstrom
with CBRE represented KBS.
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended including statements relating to KBS REIT III’s ability to invest in and manage a diverse portfolio, and the performance of Domain Gateway and of the Austin real estate market. These statements are subject to known and unknown risks, uncertainties and other factors which may cause KBS REIT III’s and/or Domain Gateway’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.