Cousins Properties Leases Full Building at The Domain in Austin

Cousin Properties CUZ recently announced that it has entered into a lease arrangement with a Fortune 100 technology company for around 320,000 square feet of all of its Domain 12 property in Austin, TX.

The said customer is new to Cousins' portfolio and will take up the ongoing lease from Meta Platforms, effective from Jan. 1, 2026, extending its maturity from 2031 to 2040.

Cousins' Domain portfolio, spanning around 2.5 million square feet, is at present more than 99% leased, reflecting the solid demand for space. Delivered in 2020, Domain 12 exists near The Domain's main dining and entertainment district.

This Cousins lifestyle office property's offerings of amenities such as cafes, outdoor terraces, a fitness center and bike storage, with direct access to several hiking and bike trails, lead to a wholesome experience for its clients.

As per Colin Connolly, the president and chief executive officer of Cousins Properties, "We are excited that our teams found a creative solution to welcome another global technology innovator to a trophy property in The Domain." He also asserted, "The Domain provides a highly amenitized experience that leading companies recognize as a critical tool to drive employee recruitment, retention, and culture."

Cousins Properties Sees a Recovery in Demand

Cousins Properties is seeing a recovery in demand for its high-quality, well-placed office properties, as highlighted by a rebound in new leasing volume. For the six months ended June 2024, the company executed 77 leases for a total of 794,240 square feet of office space with a weighted average lease term of 7.8 years. This included 404,011 square feet of new leases, 268,210 square feet of renewal leases and 122,019 square feet of expansion leases.

Image Source: Cousins Properties

Going forward, Cousins Properties' high-quality office portfolio, impressive tenant roster, opportunistic investments and developments in best sub-markets and strong balance sheet are expected to drive its growth. However, a continuation of the hybrid work environment and high supply in the office real estate market is expected to adversely impact its pricing power.

Over the past three months, shares of this Zacks Rank #2 (Buy) company have risen 24.3% compared with the industry's upside of 16.7%.

Image Source: Zacks Investment Research

Other Stocks to Consider

Some other top-ranked stocks from the broader REIT sector are Paramount Group PGRE and Lamar Advertising LAMR, each carrying a Zacks Rank #2 at present.

The Zacks Consensus Estimate for Paramount Group's 2024 FFO per share has been raised marginally northward over the past three months to 78 cents.

The Zacks consensus estimate for Lamar Advertising's current-year FFO per share has been revised marginally upward over the past month to $8.09.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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