- A $177M CMBS loan tied to 7700 Parmer in Austin has been sent to special servicing due to declining occupancy.
- The office complex’s occupancy dropped from 99% in 2023 to 74% today, following major tenant reductions, including eBay halving its space and Dun & Bradstreet exiting entirely.
- Despite zoning approvals for major expansion in 2020, no new development has occurred at the 129-acre campus, which neighbors Apple’s $1B Austin campus.
Austin Trouble Spot
A $177M CMBS loan tied to 7700 Parmer has been transferred to special servicing, reports Commercial Observer. The property is a four-building, Class A office campus located in Austin’s Silicon Hills corridor. The move comes ahead of the loan’s December 2025 maturity, driven by a steep drop in tenant occupancy.
Tenants Out
Once nearly fully leased, 7700 Parmer has seen a 25% drop in occupancy over the past two years. eBay, its second-largest tenant, cut its footprint in half, while Dun & Bradstreet exited the property entirely. The building is now 74% occupied, down from 99% in 2023. Previous tenants have included PayPal, Electronic Arts, and Polycom.
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The Numbers
The loan — part of the JPMCC 2015-JP1, JPMBB 2016-C1, and DBJPM 2016-C1 conduit deals — is still current as of June 2025. Morningstar Credit notes the loan holds $37M in reserves, but the tenant losses and upcoming maturity have raised red flags for bondholders.
Unrealized Plans
Despite securing zoning approval in 2020 for a mixed-use expansion, no physical progress has been made. The approved plans include six new office buildings, 80K SF of retail, a hotel, residential units, and thousands of parking spaces. Accesso Partners, the owner, continues to promote the development online but hasn’t advanced construction.
Location, Location
The 911K SF office campus spans 129 acres. It sits adjacent to Apple’s $1B Austin campus, placing it in a traditionally desirable tech corridor.
Why It Matters
The 7700 Parmer situation underscores ongoing challenges in the US office sector, particularly in suburban tech hubs like Austin. Even Class A properties near high-profile developments are struggling to retain tenants amid hybrid work shifts and broader corporate belt-tightening.
What’s Next
With the loan set to mature in late 2025 and occupancy still declining, the spotlight is on Accesso Partners to either lease up the space or find alternative strategies to stabilize the asset. For now, the market is watching closely as special servicers assess the property’s future.
