Elon Musk's X Eyes Austin for New 800K SF Office

Speculation is mounting about another of Elon Musk's companies potentially moving to Austin. X, Musk's social media platform previously known as Twitter, is planning to sublease its expansive 800,000-square-foot San Francisco headquarters. In parallel, the company has been exploring the possibility of securing substantial office space in Austin, estimated at around 500,000 square feet, according to Steve Triolet of Partners Real Estate.

Austin's Growing Tech Hub

Though no immediate deal is expected, the prospect of X expanding in Austin is gaining traction. Earlier this year, X announced plans to establish a 100-person content moderation team in Austin. Despite Musk's initial declaration in 2022 of having "no plans" to relocate the company to Texas, he has indicated openness to a dual headquarters in California and Texas. Triolet noted that this potential move aligns with Musk's strategy of consolidating operations and fostering a tech hub in Austin.

Musk's Increasing Texas Presence

Musk has been increasing the footprint of several of his ventures in Texas. Recently, Neuralink, Musk's computer implant company, applied to build an office in Del Valle, near other Musk-associated projects like the Boring Company site and the rumored "Project Amazing" housing development. Tesla, one of Musk's major companies, already employs nearly 20,000 people in the Austin area, particularly at its Gigafactory in Pflugerville.

Impact on Austin's Office Market

If X decides to lease space in Austin, it could significantly boost the city's struggling office market, which reached a record 25 percent vacancy rate last quarter. Austin has long been dominated by the tech industry, with major leases such as IBM's 320,000-square-foot deal at Hines Domain Northside last year. However, the tech sector's downturn has caused some firms to reevaluate their office needs. For example, Meta secured 589,000 square feet at Sixth and Guad in 2022 but later put the space up for sublease, and Google has yet to occupy its 800,000-square-foot site at 601 West 2nd Street.