Cleveland company to turn former Rackspace HQ into industrial park

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Industrial Commercial Properties LLC is spending $40 million to $50 million to acquire the building and refashion it for multiple tenants.

Rackspace Technology Inc.’s former Windcrest headquarters has a new owner. Industrial Commercial Properties LLC said Friday it has closed its purchase of the property, which it plans to turn into a business park with multiple tenants. The Cleveland, Ohio-based company is spending from $40 million to $50 million to acquire and refurbish the 1.2 million-square-foot building on 66 acres and pursuing industrial, manufacturing, office and retail tenants.

Rackspace lands a deal to sell its former headquarters to Cleveland-based industrial developer Windcrest and Bexar County are providing a $4.85 million grant — $2 million from the city and $2.85 million from the county — to the company for the project. The Windcrest Economic Development Corp. will hold the title and lease it to its new owner, making it exempt from property taxes. That exemption is valued at between $5.65 million and $6.

Rackspace revenue down after cloud computing restructuring; CEO expects ‘slow start’ in 2024 Rackspace announced last fall that it would leave the building, known among its employees as the Castle, amid the pandemic-era shift to more remote and hybrid work. The company is moving into from 75,000 to 90,000 square feet in a building near Stone Oak, a location that it said will result in shorter commutes for its workers.

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