Texans across the state are up in arms after learning the Teacher Retirement System of Texas will spend at least $326,000 a month in rent for office space on Austin’s Sixth Street, all while continuing to raise costs on current and retired teachers.
Established in 1937, TRS provides retirement and related benefits for more than 1.6 million Texas teachers, college professors, and other educational employees. It is supported by the State of Texas and manages a $150 billion trust fund established to finance member benefits. TRS is the largest public retirement system in Texas and is the sixth-largest public pension fund in the U.S.
And the bureaucrats who run it are about to get a new expensive office.
First reported by Austin’s KXAN, a public records request reveals TRS has signed a 10-year lease for three floors of office space at the Indeed Tower, which is scheduled to be completed in 2021, on Austin’s Sixth Street.
Space in Indeed Tower is expected to be one of the most sought-after locations for companies seeking extravagant downtown accommodations in close proximity to the city’s bar district.
“Situated in the epicenter of Austin’s CBD, Indeed Tower will deliver a vibrant mixed-use environment with a prominent 6th Street address through its three main components: a 683,000-square-foot Class AA office tower with ground floor retail, a historic 1914 post office re-positioned into a 25,000-square-foot retail/restaurant destination, and a 20,000-square-foot urban greenspace.
At 36 stories tall, the office building will stand as the tallest and largest office tower in downtown Austin and offer tenants an unparalleled experience through its extensive office amenities, including a fitness center, dedicated conference center and outdoor terraces. Indeed Tower’s floorplates, at an average size of 33,000 square feet, will be among the largest in the market, making the project attractive to the growing tech tenant population while maintaining flexibility to appeal to more traditional office users.”
KXAN says that TRS Executive Director Brian Guthrie told them in a prepared statement that the massive charge is actually a great deal for the agency because they committed early to the Indeed Tower.
“We were able to stabilize the rent and negotiate favorable per-construction rates for the 100,000 square feet,” said Guthrie. “Today, 18 months later, those lease rates are well below current rents for comparable space in Austin’s tight rental market.”
Beginning in 2021, TRS will be charged just over $326,000 monthly for their rent of the space. That charge will increase to over $383,000 towards the end of the contract.
Does this sound like an organization that is putting teachers and taxpayers first?