Austin's big tech offices are starting to open up—to varying degrees.
Over a year of remote work later, some companies found it to be the perfect fit, while others experienced less productive employees. Overheard on Conference Calls, a workplace reviews site, ranked Austin as the third best city for remote work last year based on a variety of factors, including cost of living, average WiFi speed, commute time savings and coffee shops per capita.
Nevertheless, most tech companies are adopting a hybrid model, allowing more remote options than they did pre-pandemic but reinstating in-office minimums at the same time. Here's how six Austin offices are handling the transition. (Oracle declined to comment.)
In addition to its corporate office at the Domain, Amazon is also planning to open fulfillment centers in Kyle, San Marcos and Pflugerville. (Amazon)
Office: The Domain
Approximately 1,000 corporate employees
Amazon expects its U.S. office employees will return to the office through the summer, with most back in the office by early fall, according to companywide guidance issued March 30. At that time, about 10% of the company's corporate employees were working from the office full-time.
Office: Riata Vista Circle
Approximately 7,000 employees
Apple CEO Tim Cook sent out an email last week informing employees that they will return to the office three days a week starting in early September, according to multiple reports. Employees will be able to work remotely for up to two weeks a year, so long as management approves their requests.
Dell Technologies CEO Michael Dell believes remote working will be the new normal. (Stock photo)
Approximately 13,000 employees in Central Texas
Most Dell employees continue to work remotely, Senior Vice President Mark Pringe said in a statement to Austonia. Before the pandemic, 65% of the company's employees worked flexibly and 30% worked remotely on any given day. Last March, the company transitioned 90% of its team to remote work, and the majority are still remote today.
Moving forward, the company will continue to encourage flexibility and anticipates a hybrid model will emerge. "If employees can successfully do their job from home, they can work with their manager to make the choice to do so," Pringle said."
CEO and founder Michael Dell told the technology news site CRN in March that "remote working is absolutely here to stay," explaining that a company that offers flexibility will be more attractive to potential hires than one that doesn't.
Facebook's downtown office opened at Third + Shoal in September 2019. (Facebook)
Offices: The Domain, Parmer Innovation Center, West Sixth Street
Approximately 1,200 employees
Facebook's Austin employees have not yet returned to local offices, and the company is still developing its return-to-office plan, Head of Local Communications Tracy Clayton wrote in an email to Austonia.
The plan will likely include increased flexibility, with both in-office and remote options. "We believe people and teams will be increasingly distributed in the future, and we're committed to building an experience that helps everyone be successful, no matter where they're working," Clayton said.
Offices: West Second Street, Saltillo
Approximately 1,100 employees
Google declined to share Austin-specific return-to-office details through a spokesperson but referred to a recent blog post from CEO Sundar Pichai, which lays out a plan for all offices. It includes:
- A hybrid work week where most employees spend three days in the office and two where they work best, with in-office time focused on collaboration
- Employees will be able to apply to move to another office or to full-time remote work (compensation will reflect the base location)
Pichai "fully expects" the share of employees working remotely to increase in the coming months, according to the post. He estimates 60% will fall into a hybrid schedule, 20% will switch offices and 20% will work remotely.
An internal survey conducted by Google last June found that engineers reported feeling less productive than they did pre-pandemic, according to reports.
(Brandywine Realty Trust)
Office: Burnet Road
Approximately 6,000 employees
Around 90% of IBM's Austin employees are still working remotely as the company moves toward a hybrid office model similar to its pre-pandemic norm, according to a spokesperson.
CEO Arvind Krishna told Bloomberg in March that he expects 80% of employees to work in a hybrid model post-pandemic, with the remainder staying entirely remote. But he raised concerns about the impact such a split would have on the company's culture. "When people are remote I worry about, 'What's their career trajectory going to be?'" he told the business news site.
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Heading to Q2 Stadium? Four months ago, it would've been tough to do so without dropping a pretty penny, but by mid-September, season ticket holders were clamoring to sell their seats for as little as a $10 beer.
While Austin FC continues to sell-out crowds—their most recent match was at capacity despite their record and scheduling conflict with a Texas Longhorns game—demand has dipped as new factors continue to pull down prices.
Austin FC's rocky season has been met with unbridled fan support, but it's also lost that honeymoon-phase traction as they fell to the bottom of the standings, faced a third COVID surge and were met with school, work and good ol' Texas football.
On Sept. 15, Austin FC fan Tanis Olvedo was willing to strike a deal: two beers for a ticket.
Austin FC went from $200+ tickets to this 😪 we down bad pic.twitter.com/Q3yOr7UBiC
— Darth Concha (@davidhidalgo44) September 15, 2021
Although he later sold at cost to another season ticket holder, many fans have seen the value of their season tickets take a serious dip. By Wednesday, Sept. 15, tickets that were once no lower than $36 had dropped to as little as $14.
Austin Anthem member Phil Stanch used his accounting skills to map out the dip in his ticket sales prices.
Phil Stanch found that the predicted value of his season tickets (in orange) will continue to trend downward. (Phil Stanch)
Here are the main reasons why fans say Austin FC's ticket prices have taken a tumble:
Austin FC's first home game on June 19 seemed like perfect timing—by June 16, 51% of Travis County residents were fully vaccinated. Mid-May saw Austin lift its risk-based guidelines to Stage 2 for the first time since the pandemic's onset just in time for the brand-new Q2 Stadium to open at 100% capacity.
But with the third surge sending Austin back into Stage 5 and hospitalizations skyrocketing in late summer, some diehard fans reluctantly began opting for the couch over a 20,738-capacity stadium.
That safety-consciousness comes tenfold for parents of young children who are still ineligible to get vaccinated, at-risk fans and the older population.
School starting and unvaccinated kids. That’s why we haven’t gone in a while. We are season ticket holders, so we have just given ours away to friends and coworkers that can go.— jae (@jae98342926) September 23, 2021
Austin has stuck to capacity and hasn't added any masking or testing requirements, garnering some criticism from fans.
I stopped going because of the COVID surge. I tried to sell my tickets a couple of times and they didn’t move. Then I decided to eat them to make space. Not happy the club didn’t create a mask or vaccination requirement.— Ruben Cavazos (@rcavazos) September 24, 2021
Just as the surge reached its peak in mid-August, schools across Austin once again opened in-person, leaving many families unable to go to late-night games on weeknights. Ten of the club's 17 home games have been on Wednesdays, Thursdays or Sundays—days that have quickly transformed into "school nights."
With 9-5ers unable to justify 8:30 p.m. weeknight games and kids tucked in bed by 10, fewer fans have been able to make their way to the games.
And with school comes another conflict of interest- tried-and-true Texas football is fully underway, and though Sept. 18 saw a sold-out crowd, a few Verde seats were left empty as the two teams played at home at the same time for the first time.
A combo of a number of things:— Tom H (@hallockitup) September 23, 2021
- Wednesday or Sunday games that end around 10pm are not appealing to people with jobs or kids.
- Being in last place hurts, no matter how passionate people are about the team. Nothing on the line.
- This is still Texas, and it’s football season.
While COVID and fall responsibilities have played a factor, Austin FC is also dealing with the unfortunate reality of being a last-place team.
Season ticket holder Doug Mayo was one of the 4% of season ticket holders who didn't renew his deal with the team. Once confident that he would easily sell the coveted tickets for their original price, the team's record plummeted alongside his own ticket prices. Mayo said that the team's 5-4-16 record caused their honeymoon phase to end prematurely.
"The newness wore off fast," Mayo said. "Nobody wants to go to a sporting event when it's 99% certain the team they support will lose."
For Mayo, it'll take a better record and more passionate play on the field to get him back in the 20,000-member season ticket waitlist.
"Mainly (I want) them to start acting more like a professional team," Mayo said. "We were so excited to have something to look forward to throughout COVID and it's just been a disappointment."
I've been a big supporter in general, I went to 4 games in the first half of the season, but no amount of "fan camaraderie" makes me want to spend $30-40 to see a team that plays without heart. And that's bc the last game I saw we actually won (albeit Houston was down a man).— Brown and in Austin (@DisraelTV) September 23, 2021
Still other reasons abound: some fans say it's those $10 beers themselves that cause prices to dip, while others say tickets were overpriced in the first place. Although Austin FC says 96% of season ticket holders decided to renew for 2022, many did so with a grain of salt, including longtime fan Shawn Collins.
"I have tickets in 110 (the Lexus Club) and even when the demand was crazy high I couldn't get face for my tickets because they were so high to begin with," Collins said. "When I got them I figured I'd make back what I paid on games I couldn't attend."
Austin FC's dip in ticket sales may be more of an MLS problem than a unique issue: gameday employee and University of Texas sports business student Ben Patterson said that prices shot up due to pre-season excitement and are now at more normal levels.
"The initial hype of finally having a pro sports team is likely what drove up season ticket prices at the start of the year," Patterson said. "Now that excitement has cooled off, ticket prices have dropped in value steeply."
But while five straight losses are enough to drive at least some fans away, plenty are committed to staying Verde through thick and thin.
It might not be easy being green, but thousands of fans are now enjoying the benefits of $20 tickets as they continue to pack Q2.
Let's not question why tickets are NOT expensive.
Let's just keep buying tickets at $20. Whaddaya say? https://t.co/HkhOjczzZJ
— AC (@Arc34_) September 24, 2021
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In May, Circuit of the Americas chairman Bobby Epstein looked back on 10 years of Formula 1's U.S. Grand Prix at COTA confident that the race would be here to stay in Texas. But sources tell Austonia that securing another contract may be in jeopardy.
Some insiders worry that COTA's 2021 Grand Prix race might be its last.
The multi-day fest from Oct. 22-24 will include a 56-lap race over the 3.3-mile track, food and musical performances from two acts, including Billy Joel at COTA's 1,500-acre facility in Southeast Austin. But after this year, the U.S.' first F1-specific track could lose its headline event.
The facility's inability to secure a contract thus far comes down to the Texas Legislature, a new threat in Miami, and, most importantly, money.
The first F 1 race will take place in Miami next year. (Hard Rock Stadium)
Every year, Formula 1 receives roughly $25 million from Texas' Major Events Reimbursement Program, a taxpayer-funded initiative that helps bring big sporting events like 2017's Houston Super Bowl to the state. A 2019 report by the Reimbursements Program on that year's race said the "data is inconclusive" on if the event has a positive or negative economic impact on the state with the resources given. In 2018, the Austin-American Statesman reported that COTA had brought back a total of $75.7 million between 2015 and 2017 for hosting the U.S. Grand Prix.
Legal issues have also barred Epstein and Co. from securing another 10-year contract earlier: in 2018, the company lost its yearly $25 million bid after failing to submit a human trafficking prevention plan as part of its yearly application.
That same year, F1 managing director of commercial operations Sean Bratches told the Associated Press that the organization hopes to stay at COTA "for many years to come."
However, in May, the racing league announced that it had secured a 10-year contract to hold the Miami Grand Prix as American interest in the sport soared following the three-season "Drive to Survive" documentary, which gives behind-the-scenes looks at drivers and races of the Formula One World Championship.
Epstein is optimistic about the new U.S. location and told Autoweek in May that "more races in our time zones are good for the sport."
"I think we're getting double the impact this way," Epstein said. "Miami should sell out huge the first year and maybe the second year and then after that, I think we'd be spitting audience if we were around the same time on the calendar. So the spread is fantastic."
Bobby Epstein recognizes the 1 millionth customer of COTA in 2013. (COTA/Facebook)
The new F1 venture may impact COTA's contract, however: in an opinion piece for the Fort Worth Star-Telegram, writer Mac Engel said Texas is unlikely to fork over taxpayer money if the facility is no longer the only F1 track in the U.S.
According to Engel, the Major Events Reimbursements Program agrees to provide funding only "if Austin holds the only F1 race in the country."
Epstein hasn't addressed such claims; by contrast, he feels as though there's room for a third race in the U.S. as ticket sales rebound after COVID.
"In the first week, we sold pretty much all the tickets we put up for sale and we plan to break the 2019 attendance record," Epstein told Autoweek. "Texas was the first place to lift COVID-19 restrictions (in the U.S.) and put on sporting events, and we're full. We're at 100% capacity.
Despite ventures to diversify revenue at COTA—Epstein's USL soccer team Austin Bold has seen its own share of troubles, and the facility plans to develop into a multi-faceted entertainment arena complete with music venues, a waterpark, condominiums and an 11-story hotel—a loss of its primary event could be devastating for the $300 million complex.
F1 has rarely lasted more than a decade at venues in the U.S. over the last century; let's hope Austin breaks that curse.
COTA's media relations team did not immediately get back to Austonia for comment.
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