Two redevelopment sites on the eastern edge of downtown Austin are attracting attention as their future uses remain uncertain. The first site, previously home to the Frank Erwin Center at 1701 Red River Street, is a 19-acre parcel that was cleared last year. The University of Texas at Austin and MD Anderson Cancer Center had planned to build the UT Medical Center there, but the UT System’s board of regents is now considering an alternative location near The Domain in North Austin.
UT System’s board chairman, Kevin Eltife, said in November that the system is seeking “a district for the future,” which has led to more speculation about what will happen with the downtown property. With no hospital guaranteed for the site, sources suggest it could be used for academic or research facilities, civic projects, or cultural developments. Its size and proximity to both downtown and I-35 make it a significant opportunity for redevelopment, though challenges such as highway expansion and infrastructure limitations may affect potential projects.
Nearby, another major property—the former Teacher Retirement System of Texas headquarters at 1000 Red River Street—has also been positioned for new development. This month, Austin City Council approved rezoning that allows office, residential, commercial, and life sciences uses on this four-acre block. This change removes previous regulatory barriers to redevelopment.
Austin Real Estate Acquisitions LLC purchased this property in 2022 for $108 million. The company shares an address with Alexandria Real Estate Equities, a developer focused on life sciences properties based in Pasadena. While specific plans have not been announced by the owner, local business groups have indicated that medical or life sciences uses are possible given its proximity to Dell Medical School and Innovation Tower.
Both sites are located near several large-scale projects including the I-35 expansion project, plans to redevelop the Austin Convention Center, Waterloo Greenway improvements, and UT’s upcoming multipurpose arena north of where Erwin Center once stood.
The market context remains challenging for new office developments in Austin due to high vacancy rates above 26 percent as of the third quarter and significant available space remaining citywide. For example, UT’s Innovation Tower completed in 2022 is still largely unleased.
