JLL Arranges Sale of Lavaca Plaza in Downtown Austin to Riverside

JLL Capital Markets has arranged the sale of Lavaca Plaza, an 11-story, 122,042-square-foot office building at 504 Lavaca St. in downtown Austin, Texas, to Austin-based real estate firm Riverside. The transaction was announced Sept. 30, 2026.

JLL marketed the property on behalf of the seller. The JLL Capital Markets Investment Sales Advisory team representing the seller included Managing Directors Ryan Stevens and Drew Fuller.

Property Overview

Originally built in 1981, Lavaca Plaza occupies roughly half a city block at the corner of Fifth and Lavaca streets in Austin's central business district. The building's design places parking on floors one through seven — approximately 475 spaces — giving it one of the highest parking ratios in downtown Austin. Four floors of office space sit above the parking structure, offering a range of suite sizes.

The property carried an occupancy rate of approximately 84.7% at the time of marketing, with tenants including WP Engine and government agencies. Government tenants accounted for roughly 37% of the leased space, while WP Engine represented approximately 51%. The weighted-average lease term stood at 1.9 years, signaling near-term leasing activity ahead for the new owner.

Lavaca Plaza holds a Walk Score® of 99. The surrounding area includes more than two million square feet of retail, 6,700 hotel rooms and 4,300 residential units. The building sits within blocks of the Second Street District, the Sixth Street Entertainment District and Lady Bird Lake, which offers more than 10 miles of hiking and biking trails.

Transaction Details and Investment Rationale

JLL characterized the asset as a value-add opportunity combining in-place cash flow with redevelopment potential.

"Lavaca Plaza offered investors the opportunity to acquire a cash-flowing property in the heart of Downtown Austin," Stevens said. "Given the immediate surrounding density and in-place cash flow, Lavaca Plaza presents an exceptional redevelopment opportunity."

The property's seven-story parking structure is considered a strategic differentiator in the downtown market, where parking supply is limited and the surrounding mix of residential, hospitality and entertainment uses could support alternative future configurations.

Austin Office Market Context

The transaction comes as Austin's office market continues to navigate elevated vacancy. Market vacancy stood at approximately 19.6% heading into 2026, with some estimates placing the broader figure closer to 24% to 25% depending on submarket and inventory definitions. Average asking rents were projected to reach approximately $31.15 per square foot by year-end, reflecting modest growth in a tenant-favorable environment where concessions remain common.

Lavaca Plaza's reported occupancy of roughly 85% outpaces the broader market average, though its short weighted-average lease term means Riverside will need to address rollover in the near term. The concentration of leasing to a single private-sector tenant, WP Engine, also represents a factor the new owner will manage alongside the government-tenanted portion of the building.

Shrinking new construction and gradual return-to-office trends have begun to improve demand conditions in Austin, even as tenants retain meaningful negotiating leverage across much of the market.

About the Parties

Riverside is an Austin-based real estate firm that has operated in the market since 1990. The firm's portfolio spans office, multifamily, retail, industrial, mixed-use and residential land, and includes properties such as 300 Colorado, Capital Ridge, Centro, Fifth & West and Sixth & Blanco.

JLL Capital Markets is a global provider of capital solutions for real estate investors and occupiers, with more than 3,000 specialists in offices across nearly 50 countries. JLL (NYSE: JLL) reported annual revenue of $26.1 billion and operates in more than 80 countries with a global workforce of more than 112,000 as of June 30, 2026.