Brandywine Realty Trust is changing its approach to the Uptown ATX mixed-use campus in North Austin as IBM prepares to leave the site and the local office market remains weak.
The company, based in Philadelphia, had planned a major redevelopment of the 66-acre campus at 11501 Burnet Road. However, CEO Jerry Sweeney said during an earnings call on October 23 that Brandywine will now focus on renovating existing buildings rather than constructing new towers. The decision comes as vacancy rates stay high and demand for large office spaces has slowed across Austin.
IBM is set to vacate the property in mid-2027, which aligns with when Brandywine plans to start its next phase of development. The firm will renovate buildings 902, 904, and 906—totaling about 500,000 square feet—with renovated space expected to be available in early 2027. Sweeney did not rule out future demolition but indicated that current market conditions favor repositioning assets over new construction.
Other developers in Austin have also shifted strategies due to similar challenges in the office sector. According to CBRE data, average office rents are higher downtown than in North Austin.
Earlier this year, Brandywine listed one million square feet of its Austin office assets for sale. A company executive explained that this move was intended to assess pricing rather than signal a withdrawal from the city.
Uptown ATX remains one of the largest mixed-use projects in the region and has been described as “Austin’s second downtown.” To date, Brandywine has completed One Uptown—a 348,000-square-foot office tower—and Solaris House—a residential building with 341 units—on the southern end of the site.
Despite broader leasing challenges, One Uptown has seen some success. Nvidia Corp. and Axonius Inc., a cybersecurity firm, together occupy approximately 109,000 square feet. Brandywine is negotiating additional leases that could bring occupancy up to about 60 percent; Nvidia also holds rights to expand within the building. Solaris House is nearly fully leased after initial concessions were offered during its first year; renewal rents have increased by eight percent.
IBM’s future location plans are unclear following a failed pre-lease agreement with Hines for another property and after acquiring Meta’s former space at The Domain last year. IBM’s departure presents both a challenge for filling vacancies and an opportunity for Brandywine to reshape Uptown ATX moving forward.
“Uptown ATX remains one of the region’s largest mixed-use projects, envisioned as Austin’s ‘second downtown.’ So far, Brandywine has completed the 348,000-square-foot One Uptown office tower and the 341-unit Solaris House apartment building on the site’s southern end,” according to company statements.
