AUSTIN – During a state House Pensions, Investments & Financial Services Committee meeting, the Teacher Retirement System (TRS) of Texas' proposed Indeed Tower lease was subjected to questioning from lawmakers again.
State Rep. Roland Gutierrez (D-San Antonio) asked Brian Guthrie, TRS executive director, about subleasing Indeed Tower. In January 2020, KXAN News reported that space inside the Indeed Tower in Downtown Austin would cost a minimum of $326,000 a month.
“I’ve asked the Attorney General’s office to come up with a way to cancel this particular contract,” Gutierrez said during the meeting. “I would suggest that we do it now.”
Guthrie said TRS is looking at all possibilities.
“We’re looking at all options in that regard,” Guthrie said. “We’re working with the Indeed Tower and the company very closely in these negotiations.”
But TRS doesn't actually have the legal rights to end the lease on Indeed Tower, Guthrie's presentation to the committee said. TRS would also have to pay approximately 6% of the brokerage cost to sublease the tower.
The TRS doesn't have another tenant for the tower and is still looking to rent Indeed Tower, but is looking at options to pay the rent on the tower without subleasing it.
“If we can get out now, we need to get out now,” Gutierrez told KXAN News after the committee meeting. “We have to be stewards at every level, not just at TRS.”
"TRS would like to thank Chairman Murphy and the members of the Pensions, Investments, & Financial Services Committee for the opportunity to have an open discussion of our longterm space planning effort," TRS said in a news release. "We remain dedicated to ensuring transparency and open lines of communication with our members and the Legislature. Following our Board’s Feb. 20 decision to keep our investment team at their existing offices, we are actively committed to subleasing the space at Indeed Tower before the lease starts in March 2021."
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