Downtown Austin is entering a busy season of growth and investment. From major developments and new business activity to infrastructure improvements and long-term planning, here’s what’s shaping downtown’s economic future this September:
1. Downtown Developments to Watch
Waterline is officially complete and Austin now has Texas’ tallest tower. The 74-story, 1,025-foot mixed-use tower at 98 Red River includes 352 residences, a 252-room hotel, office space, restaurants, retail and parking. It now stands 23 feet taller than Houston’s JPMorgan Chase Tower. 1 Hotel Austin opened this month in the first 16 floors of Waterline, bringing a new luxury hospitality anchor, restaurants, rooftop programming and more than 300 jobs to downtown.
Google is beginning a $25 million renovation of the 35-story Sail Tower at 601 W. 2nd Street. The project includes improvements to approximately 69,000 square feet of shell office space, with construction running from August 2026 through May 2027.
Republic Tower: Law firm Jackson Walker LLP and financial firm Virtu Financial Inc. have each signed leases totaling 165,000 square feet at downtown Austin’s The Republic office building, according to an announcement. The two leases bring the tower, which was 53% leased when it was completed in October 2025, to 73% leased.
Austin Convention Center: the redevelopment of the Austin Convention Center continues to move forward. A contract worth up to $20 million was approved this week, and more materials have been delivered to the construction site. On August 27th, the Austin City Council approved the $20 million contract for furniture, fixtures and other equipment to fill out the new Austin Convention Center.
2. Downtown Austin Alliance released its position on Homelessness & Mental Health
Downtown Austin Alliance Board Advances FY 2026–27 Positions on Homelessness, Mental Health and Downtown Safety. The positions, which focus on top city and DAA priorities, call for sustained investment in homeless shelters and housing, expanded psychiatric crisis care, expanded involuntary commitment authority, increased downtown police staffing and increased enforcement of public order ordinances. DAA believes this combination of priorities reflects its charge to help address the needs of people experiencing unsheltered homelessness downtown while keeping public spaces safe and healthy for everyone’s use and enjoyment. Read more here.
3. Recap of Issues & Eggs – No Wrong Door: Breaking the Homelessness & Mental Health Cycle
On Tuesday, September 15 from 7:30-9AM at St. David’s Episcopal Church (301 E 8th Street), the Downtown Austin Alliance hosted a presentation and panel discussion called “No Wrong Door: Breaking the Homelessness and Mental Health Cycle”, where local leaders discussed current initiatives underway to address this pressing community issue.
Presenters and panelists included:
· Downtown Austin Alliance President & CEO, Davon Barbour
· Travis County Judge, Andy Brown
· APD Chief of Strategic Initiatives, Maris Herold
· Central Health President & CEO, Dr. Pat Lee
· City of Austin Director, Office of Public Affairs – Carrie Rogers
4. Congress Avenue 200 block moves to construction
Construction on the 200 Block of Congress Avenue began in mid-July and will run for about three months (July-September 2026). The work will be in four phases, starting at the southeast corner of 2nd Street & Congress Avenue, and advancing counterclockwise. Each phase will take approximately 2-3 weeks to complete. Follow construction updates here.
5. Storefront Facade Grant Applications are open
Building on a successful inaugural year of supporting investment in downtown businesses and properties, the Downtown Austin Alliance is excited to announce the launch of Round II of the Façade Improvement Grant Program! In the first round, we awarded $65,000 to five businesses along 6th Street and Red River, triggering more than $140,000 in total property investment and meaningful improvements to downtown storefronts. Application
6. Opportunity Zones 2.0
Census Tract 11.01 was included on the list of zones nominated by the Governor’s office for certification by the US Treasury Department. The zone begins at East 6th Street and continues up to 12th Street between I-35 and Shoal Creek (see map). If certified, the program offers capital gains tax abatement for those investing eligible capital into Qualified Opportunity Zone assets. Stay tuned as the Treasury is anticipated to officially certify the roster of zones by November 28.
7. Central City District Plan begins taking shape
The City of Austin is advancing the Central City District Plan, which will establish a new 10-year framework for downtown and surrounding central Austin. The planning process is now underway, with community engagement occurring this month. The City’s stated intent is to create a renewed vision for downtown and establish priorities for the next decade. Link
As always, you can contact us at economicdevelopment@downtownaustin.com for economic development opportunities in Downtown Austin.