Oracle (NYSE:ORCL), a top-20 employer in Austin, is planning to expand its presence in the city by adding another office building and a hotel at its headquarters on South Lakeshore Boulevard, according to the Austin Business Journal. The company's proposed expansion includes a 287,500-square-foot office at 1301 Tinnin Ford (NYSE:F) Road and a 250-key hotel, along with additional amenities such as a gym and an event center.
The new office building is planned to be adjacent to Oracle's existing Austin campus, which already encompasses over one million square feet. The company has an estimated 2,800 employees in Austin and has said that the headquarters could expand to accommodate up to 10,000 workers.
The proposed expansion and hotel will be located on the site of the former Town Lake Village Condos. Oracle purchased this property for a reported $43 million in 2021 and secured permission to demolish the apartments last year.
However, before proceeding with these plans, Oracle needs to secure several governmental approvals. The zoning request for the project could take months to reach the city council, according to Oracle's land use attorney.
This expansion comes despite recent reports of high vacancy rates in Texas metros. However, occupancy metrics suggest that newer offices are struggling somewhat less than older buildings.
Oracle had previously proposed a land swap with the city, offering 48 acres on the Colorado River in exchange for nine acres at 2525 South Lakeshore Boulevard, which currently houses the Parks and Recreation Department's Central Maintenance Facility.
Oracle first opened its Austin campus in 2018 and designated it as corporate headquarters in 2020. The company owns about 50 acres on South Lakeshore Boulevard.
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