KBS has brought the 515 Congress office tower in downtown Austin to market, offering investors a 26-story asset at the corner of Sixth Street and Congress Avenue. The high-rise, originally delivered in 1975, totals 267,956 square feet and is a longstanding fixture on one of Austin’s most prominent downtown intersections.
The property is being marketed for sale by a JLL Capital Markets team that includes Mike McDonald, Jonathan Napper, Ryan Stevens and Drew Fuller. According to reporting cited from the Austin Business Journal, there is currently no target sale price disclosed for the listing. KBS last traded for the asset in August 2015, when it purchased 515 Congress for $112,500,000.
Leasing performance at 515 Congress contrasts with broader conditions across the Austin office market. The building is reported to be 82% leased, with tenants that include WebAI, The Boeing Co. and Cloudera. Over the past decade, the tower has averaged more than 91% occupancy, underscoring its historical stability as a downtown office address even as market dynamics have shifted.
By comparison, metro-wide office vacancy in the first quarter of 2026 was reported at 24.5%, with some measures indicating that figure climbed to 28.8%. These elevated vacancy levels highlight the more challenging backdrop for office landlords across the metro, even as certain individual assets maintain stronger occupancy profiles. Within that context, the marketing of 515 Congress provides a data point on investor appetite for a downtown Austin office tower with both established tenancy and remaining lease-up potential.
The building’s current weighted-average lease term is cited at 3.4 years, suggesting a staggered roll schedule across the tenant roster. That profile may appeal to buyers seeking a mix of near-term mark-to-market opportunities and income continuity, depending on how they underwrite rent growth and demand in the Austin office sector. At the same time, the absence of a publicly stated pricing target means the eventual clearing level for the asset will depend on negotiations between KBS and prospective buyers in light of current capital markets and leasing conditions.
As the sale process moves forward, the listing of 515 Congress will be closely watched as another indication of how investors are valuing downtown Austin office properties in an environment of elevated vacancy rates and evolving tenant requirements.
