Swanky new Austin high-rise to overtake Houston skyscraper as Texas' tallest tower

A new skyscraper breaking ground in downtown Austin is expected to usurp Houston’s claim to fame as hosting the tallest tower in Texas. Developers have started construction on a 74-story mixed-use high-rise near Austin’s popular Rainey Street district that is expected to become the tallest tower in Texas once completed in 2026. It will stand 1,022 feet high -- 20 feet taller than the JP Morgan Chase tower in downtown Houston, today the state's tallest. For now, Houston also has the state's second tallest tower, the Wells Fargo Plaza, also in downtown at 992 feet.

The new Austin skyscraper is yet another sign of how rapidly Austin’s commercial real estate market is bouncing back compared to Houston. The Texas capital remains a popular choice for investors, attracted by its population growth and burgeoning development opportunities. A closely-watched survey by the nonprofit Urban Land Institute and global consultancy PwC late last year ranked Austin No.4 on the list of top markets with the best overall real estate prospects this year – while Houston ranked. No. 24. The Rainey Street district– near where this newest Austin tower is planned – is just an example of Austin’s red-hot real estate growth in recent years. The district once known for its single-story craftsman-style bungalows converted into bars has become a hotbed for high-rise development with at least three new residential towers opening in the last few years, plus at least another eight skyscrapers planned or under some stage of development on Rainey Street and the adjacent streets including East Avenue and Red River. This latest addition to the Austin skyline, called Waterline, will add to Rainey Street’s transformation. Dallas-based Lincoln Property Company and San Antonio-based Kairoi Residential are partnering with Canadian pension fund PSP Investments for the project at 98 Red River. The base of the tower would rise 30-street above the street level so that passersby can wander through the 3.3-acre site to the adjacent Waller Creek. The project would have 352 luxury apartments, 700,000 square feet of office space and a 251-rooms under the 1 Hotel Austin, the brand’s first Texas location.