REOC San Antonio
Commercial Real Estate Since 1974   
Kim Gatley
enior Vice President & Director of Research at REOC San Antonio

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Positive Job Outlook and Housing Expansion Fuel the Retail Market

1Q17_SARetSnap.xlsAlthough currently well within a sub-10% vacancy rate, recent activity in the San Antonio retail market has some wondering where are all the retailers?  Despite leasing activity, tenant moves and closures yielded 108,621 square feet of negative net absorption.

While the large national retailers are impacted the growing demand of online shopping, smaller retailers, including the Mom & Pop shops are finding it more and more challenging to cover the costs of rent and operating expenses, especially in new construction. The San Antonio retail market closed the first quarter with a citywide vacancy rate of 7.8% which is relatively stable compared to 7.6% last quarter. …Read Entire Post


San Antonio Office Market Attracts Big Name Tenants

1Q17_SAOfcSnap.xlsNew office construction in the San Antonio area delivered three new multi-tenant buildings totaling 140,733 square feet in the first quarter. Gross leasing activity within office lease space translated into 234,545 square feet of positive net absorption marking a healthy start for the new year.

With demand outpacing new supply, the citywide vacancy rate improved to 18.0% compared to 18.5% last quarter. The vacancy is up, however, compared to 17.5% recorded a year ago. The over-the-year increase is primarily due to the addition of the more than 900,000 square feet of new office lease space delivered in 2015 which, as a group, came online at below market occupancy and continues to move through the lease-up process. …Read Entire Post

A Strong Year Awaits the San Antonio Medical Office Market

1Q17_SA_MOBSnap.xlsConditions improved in the San Antonio medical office market in the first quarter evidenced by a slight decrease in the citywide vacancy rate within the city’s inventory of more than 7.2 million square feet of medical-only office lease space.

Even as the healthcare business model continues to undergo significant change, fundamental factors, such as population growth and an aging population, continue to drive demand for medical office space.  The citywide vacancy dipped to 20.0% compared to 20.5% last quarter.  …Read Entire Post

Industrial Market Looking Forward to a Solid Year Ahead

1Q17_SAIndSnap.xlsAfter a vigorous performance in 2016, it seems as if the San Antonio industrial market paused in the first quarter to catch its breath.  Despite new leases and expansions, the market experienced 84,529 square feet of negative net absorption.

New supply easily outpaced demand with four projects totaling more than 323,000 square feet of industrial space delivered to the market before the end of March. The citywide vacancy rates for distribution warehouse facilities loosened to 11.0% compared to 8.4% last quarter while the vacancy rate for service center/flex properties increased to 8.9% compared to 7.6%. …Read Entire Post

IBC Bank’s commercial loan volume declines in first quarter


An economic slowdown across a South Texas border metro area, where the largest independent Texas bank has its headquarters, appears to have trickled down to its business lending.

As of March 31, IBC Bank underwrote only $565 million in commercial and industrial loans across its portfolio, roughly $490 million of which was to U.S.-based companies while $75 million was for non-U.S.-based businesses. …Read Entire Post

City Council to consider incentives for $150 million distribution center

fb_icon_sliceNext week, the San Antonio City Council will consider incentives for a proposed 1.5 million-square-foot distribution facility for retailer T.J. Maxx.

The facility would be the company’s sixth center nationwide and its largest. San Antonio is competing against other sites in Texas and in Louisiana. TJK, the brand’s parent company, is eyeing a 200-acre site on FM 1937 — South Flores Road — south of I-410 and east of Highway 281. …Read Entire Post

California tech company taps San Antonio for new office

FSAlogoThere’s a new player in San Antonio looking to build a large security operations center and hire dozens of agents over the next year to hunt cybercriminals and defend business networks in real time.

Freedom Security Alliance Inc., founded in San Diego about three years ago, plans to move the core of its operations to the Alamo City in the next six months. The team is narrowing its choices for the new office that will either be in the central business district or along Loop 1604. The company is looking for 20,000 to 40,000 square feet of space — with room to grow. …Read Entire Post

Local Medical Company Spending $3 million in Renovations

PVAlogoPeripheral Vascular Associates, a local medical company that specializes in arteries and veins, is spending $3 million renovating an aging office building downtown for use as its new headquarters. …Read Entire Post

Property values increase by double digits

Across Bexar County many property owners are finding their land is more valuable this year as the notifications for the latest property appraisals are being sent out.

The total value for commercial properties across the city is up nearly 11 percent in 2017 compared to 2016, according to the Bexar County Appraisal District. The value of all commercial property across Bexar County during 2017 was $36.6 billion, up from $33.1 billion in 2016. About $1.1 billion in new commercial construction was added to the market over the past year. …Read Entire Post

Mixed-use destination on ‘gateway’ medical center site

The San Antonio Medical Foundation has completed the sale of seven acres of land it controlled to Fulcrum Development LLC.

Fulcrum officials confirm that the plan will be to anchor the new project with a multi-story office building and parking structure, along with a two-story retail component. …Read Entire Post