One of the last undeveloped full city blocks in downtown Austin has been leased to Houston-based developer Hines. The company has signed a ground lease with the Texas General Land Office (GLO) for the William P. Hobby Jr. State Office Building site, located at 333 Guadalupe Street, according to the Austin Business Journal.
The GLO had previously announced in July that it reached an agreement with a major developer but did not reveal the name until now. Hines confirmed its involvement this week, while the state agency did not provide additional details about the plans for the approximately 2-acre property, which currently contains a vacant 419,000-square-foot office complex.
The selection of Hines follows a competitive process involving several major firms, including Related Companies, Endeavor Real Estate Group, DHA Capital, and Urbanspace. The GLO stated, “Texas business with a sterling reputation,” in reference to Hines, noting that its decision was based on the developers’ experience and financial strength.
Although specific redevelopment plans have not been disclosed, previous statements from the state indicate an interest in a mixed-use project that includes both residential and commercial elements, with workforce housing as part of the proposal.
Marketing materials from CBRE suggest that the site could be redeveloped up to 1.9 million square feet, with no restrictions on building height or parking requirements. The materials indicate that maximizing density-bonus zoning could result in an 18-story office building, a 20-story hotel with 600 rooms, and 650 residential units in a tower up to 104 stories, along with retail and parking.
The location is adjacent to The Republic, an 800,000-square-foot office tower that recently opened, making it a significant redevelopment opportunity in Austin.
The Hobby Building, which has been in poor condition for years, was previously scheduled for demolition but remains standing. Once cleared, the site could contribute to increased development density on Austin’s west side, where private projects have started to fill gaps once occupied by government buildings.
Hines’ acquisition of the site adds to its growing presence in Austin. The company has developed projects such as the T3 Eastside mass-timber office building and several master-planned communities in the area. Hines also has plans for a 608,000-square-foot office project at The Domain after canceling a previous build-to-suit project for IBM.
