Texas Teacher Retirement director grilled by state lawmakers over extravagant office lease

State lawmakers with the House Pensions, Investments & Financial Services Committee recently directed another round of intense questions at the head of the Texas Teacher Retirement System (TRS) over the agency's extravagant lease at Indeed Tower in downtown Austin.

Citing the uncertainty of the market in 2021, state Sen. Roland Gutierrez (D-San Antonio) questioned TRS Executive Director Brian Guthrie about the rationale of entering a lease at a cost of $326,000 per month.

“If we can get out now, we need to get out now,” Gutierrez said, according to a KXAN report. “We have to be stewards at every level, not just at TRS.”

Gutierrez said he had asked Attorney General Ken Paxton to investigate whether there was a way for TRS to cancel the contract with Indeed Tower.

However, even if there is a way to back out of the deal, it could still come at a high cost.

Guthrie told lawmakers that TRS “does not have the unilateral right” to end the lease, would probably be on the hook for brokerage cost, and might still have to pay Indeed Tower if they can sublease the property.

“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.”