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San Antonio based Rackspace is planning on expanding its Austin presence and moving its operations into new office space at the Former Highland Mall where the ACC campus is located. The plan is to lease 185,000 sf of space that was formerly the Dillard’s Department store. Because they plan on adding over 500 new jobs they are seeking a state incentive package worth over $1.25 in tax rebates.
The location is ideal to Rackspace because of access to bus stops, light rail, and future urban rail that will allow them to attract talent from both North and South Austin. What is currently a depleted central Austin area will over the next 3-10 years become a thriving revitalized area.
In return for tax incentives Rackspace is proposing to invest $32 million in the new facility, and add an additional 500 jobs over the next decade with an average wage of $88,600.
