Public-Private Partnerships in Austin

Opening Bell 🔔: It’s no secret Austin has boomed with development the decade. Growing nearly 1,000 new office buildings in that time alone. That sort of development doesn’t get done without both the public and private sectors working together. It’s not always pretty (see the Statesman Redevelopment project), but when done correctly, it can transform areas for the greater communal good (just look at the Domain’s transformation).

Let’s dive a bit deeper today into the current development project closest to completion, The Republic Tower.

Republic Square + The Republic Tower: If you’re keeping up with the ever changing Austin skyline, you’ve probably noticed The Republic over at 401 W 4th St. The Lincoln Properties development is set to be complete in the coming months of 2025 and there’s a looming question around the safety of the neighboring Republic Square park and what that means for those looking to move into CBD’s newest tower.

The park, once a former parking lot for nearly two decades in the mid 1900’s, has been transformed thanks in large part to the public-private partnership between the Downtown Austin Alliance, the Austin Parks Foundation, and the Parks & Rec Department.

Despite the strong partnership, locals see more to be done in terms of public safety. Being one of downtown’s few public green spaces, it’s acted as a hub for the unhoused over recent years (especially with all the construction in/around the block).

City officials are hopeful that the completion of both the Republic and ATX Tower will bring more foot traffic to the area. Between the two buildings, it’s not only nearly 1MSF of prime office space, but also over 350 apartments. That’s a major injection of life into this pocket of downtown. This in conjunction with the DAA’s push for more activations in the space draws parallels to the successful redevelopment of NYC’s Bryant Park from the 90’s to now.

Pro Insight 🧑‍🏫 : The Republic has been one of the more successful pre-leased projects we’ve seen so far in the city. Despite Vista Equity Partners placing a large chunk of their space on the sublease market, the building is at over 50% pre-leased and has shown great signs of activity.

Davon Barbour, DAA’s newest CEO, brings with him a history of community and economic development. He spoke last week at the Bisnow State-of-The-Market panel and shared their vision for continued activation in the park as a way to leverage private investment to enhance the public realm.

Tenants in today’s market are wanting spaces that are convenient to them and full activation of amenities during working hours. The Republic is hitting on this both within it’s own building with it’s hospitality focused amenity offering and just outside with what Republic Square has to offer.

Final Buzzer 🚨: The earlier in a project the developer can engage the local municipalities, the more likely a win-win development can be created. Aligning private and public interests helps remove unnecessary friction when creating valuable and desirable places.