Cousins Properties, a leading real estate investment trust (REIT), has announced a major lease agreement with a Fortune 100 technology company for its Domain 12 property in Austin, Texas. The deal covers the entire 320,000 square foot property and marks a significant win for Cousins, adding a new high-profile tenant to its portfolio. This technology giant will take over the lease from Meta Platforms, effective January 1, 2026, and will extend the lease term until 2040.
The Domain portfolio, encompassing 2.5 million square feet of office space, is currently over 99% leased, highlighting the robust demand for office space in the Austin market. Delivered in 2020, Domain 12 sits in a prime location within The Domain, a vibrant hub of dining, entertainment, and retail. The property itself offers a range of amenities, including cafes, outdoor terraces, a fitness center, bike storage, and direct access to hiking and biking trails. These features provide a comprehensive and enjoyable experience for tenants.
Colin Connolly, CEO of Cousins Properties, expressed enthusiasm about the new lease agreement, stating that it showcases the company’s ability to attract leading global technology companies. He highlighted the appeal of The Domain as a desirable location for companies seeking to enhance employee recruitment, retention, and workplace culture. The Domain’s attractive amenities and strategic location contribute significantly to its success in attracting top-tier tenants.
Cousins Properties is witnessing a revival in demand for its high-quality office properties. This is evident in the company’s recent leasing activity, which has seen a surge in new lease volume. For the first half of 2024, Cousins secured 77 leases totaling 794,240 square feet of office space. The average lease term for these agreements is 7.8 years, which reflects the confidence tenants have in Cousins’ properties. This recent activity includes 404,011 square feet in new leases, 268,210 square feet in renewal leases, and 122,019 square feet in expansion leases.
Looking forward, Cousins Properties is well-positioned for continued growth. The company’s high-quality office portfolio, impressive tenant roster, strategic investments, and strong balance sheet provide a solid foundation for future success. Despite the ongoing shift towards hybrid work arrangements and a competitive office real estate market, Cousins Properties remains optimistic about its future. The company’s ability to secure high-profile tenants, cater to evolving workplace trends, and offer desirable amenities will continue to drive its growth and enhance its position in the industry.
Over the past three months, Cousins Properties’ stock has seen a notable surge of 24.3%, outperforming the industry average growth of 16.7%. This positive performance reflects the market’s confidence in the company’s strategy and its ability to navigate the evolving office market landscape.
