REOC San Antonio
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Kim_Gatley
Kim Gatley
S
enior Vice President & Director of Research at REOC San Antonio

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IKEA to buy 31 acres for SA-area location


ikeaIKEA
is moving forward with plans to open a San Antonio-area location as part of the company’s goal to “fill in the middle of the country with a little bit of Sweden.” The retailer is currently under contract for 31 acres of vacant land at the corner of I-35 and Loop 1604, the future home for its proposed location in the city of Live Oak.

The Swedish retailer will begin filing for permits to open the fifth Texas store, which is expected to open its doors by the summer of 2019. …Read Entire Post

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Houston REIT beefs up SA footprint with $7M retail buy

Hartman Income REIT has gotten an early start to the holiday shopping season, treating itself to a $7.1 million retail property. Village Pointe, located along U.S. Highway 281 at 15665 San Pedro Ave., is the latest addition to the REIT’s San Antonio portfolio, which also includes the One Technology Center office building. …Read Entire Post

Weston Urban brings out the shovels for $3.2M Savoy Building overhaul

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Street view of the Savoy building.

The buzz along downtown San Antonio’s tech-focused arterial is about to get even louder now that Weston Urban has set the framework for a $3.2 million Houston Street property overhaul — the Savoy Building.

The local developer has submitted filings for work on the three-story, 38,361-square-foot property, which had landed a major tech tenant that signed a lease for the top two floors. …Read Entire Post

REOC San Antonio Releases 3Q16 Office Market Update

Source: REOC San Antonio/Xceligent

Source: REOC San Antonio/Xceligent

Topping office market news, two large leases inked in the third quarter will take two new empty Northwest buildings off the market when San Antonio-based financial services company USAA occupies Westridge Two at La Cantera (129,000 sf) and Vista Corporate Center (150,735 sf), which is set to come online next quarter. USAA’s expansion further strengthens the San Antonio office market by reducing the overall vacancy rate and validating continued development.

Other notable leases included Booz Allan Hamilton (22,160 sf) at Weston Centre in the downtown market and Centene Management (21,116 sf) at One51 Office Centre in the Far West sector. In all, San Antonio’s office market experienced 391,324 square feet of positive net absorption in the third quarter which bumped the year-to-date total to 841,500 square feet, putting the market on track to top a million square feet by year-end which is double San Antonio’s historical annual average.

Overall, demand outpaced new supply which caused the citywide vacancy rate to tighten to 15.6% compared to 18.6% last quarter and 18.0%. Improvement came despite the addition of more than half a million square feet of new office space delivered over the past twelve months including two office buildings totaling more than 100,000 square feet delivered in the third quarter. Crownridge Office Building (43,500 sf) and the build-to-suit for Bank of San Antonio (57,000 sf) were both added to the Northwest submarket and came online with pre-leasing in place. …Read Entire Post

REOC San Antonio Releases 3Q16 Retail Market Update

3Q16_SARetSnap.xls

Source: REOC San Antonio/Xceligent

The San Antonio retail market continues to plod ahead despite limited new speculative construction options. Although demand for retail space remains strong in the Alamo City, local retail properties experienced a slowdown in absorption as prospective tenants set their sights on recently announced projects that are preparing to enter the development pipeline.
New leases inked in the third quarter featured pre-leasing at the proposed Brooks Crossing center located adjacent to Lowe’s along IH-37 just south of SE Military in the vicinity of Brooks City Base. Hobby Lobby (55,000 sf) and Burlington Coat Factory (50,000 sf) will anchor the center which will bolster absorption figures when the project is complete. Similarly, Singing Hills, a Walmart-anchored center located at US 281 & Hwy 46 in Bulverde, is nearing completion of the first of several planned shadow retail centers. The 12,588-square-foot center is 100% pre-leased and slated to come online in December.
Looking ahead, developers are moving ahead with new projects. Culebra Commons (53,160 sf), for example, is set to get underway in the Far West sector and expected to reach completion by next spring. The two-story project is reportedly 60% pre-leased and will feature Stonewerks and Salon Suites. Also on the horizon is The Shops at Dove Creek which is slated to deliver roughly 500,000 square feet at Loop 1604 & Potranco Road in the Far West sector as well. …Read Entire Post

REOC San Antonio Releases 3Q16 Industrial Market Update

3Q16_SAIndSnap.xls

Source: REOC San Antonio/Xceligent

The San Antonio industrial market experienced a marked slowdown in the third quarter reflecting the first real impact of reduced oilfield activity in the Eagle Ford Shale. Chalk Mountain, for example, recently vacated more than 50,000 square feet of warehouse space at Alamo Downs Distribution Center. It is expected that Chalk Mountain, a leader in the oilfield services industry which specializes in the transportation management of proppant, commonly known as frac sand, will vacate several sizeable leases located throughout the market as they expire over the coming year.
Although the loss of frac sand leases could potentially dump as much as a half million square feet or so of vacant space back on the market, the impact is not expected to be dramatic because the lease expiration dates are staggered which will allow the market time to adjust and backfill. New leases and expansions recorded between the beginning of July and the end of September featured Trane Supply (62,320 sf) at Eisenhauer 35 Business Park and Wisenbaker Builder Services (58,000 sf) at Interstate Business Park – both in the dominant Northeast sector.
Still, the losses will mitigate gains as they did in the third quarter which resulted in 118,478 square feet of negative net absorption. Negative absorption is not expected to be a trend and the third quarter loss did little to lessen the healthy 1.35 million square feet of positive net gain year-to-date. The third quarter loss did, however, cause the citywide vacancy rate to increase from 7.3% last quarter to 8.3%; yet, compared to the same quarter last year, the citywide vacancy rate is improved compared to 8.9% showing the overall positive trend over the year. …Read Entire Post

REOC San Antonio Releases 3Q16 Medical Office Market Update

3Q16_SA_MOBSnap.xls

Source: REOC San Antonio/Xceligent

Extending the positive performance demonstrated in the first half of the year, the San Antonio medical office market registered positive gains in the third quarter to further its growth cycle. The stable local economy and expanding demographics continue to spur healthy leasing activity and demand for medical office space.
New leases and expansions generated 36,926 square feet of positive net absorption in the third quarter which boosted the year-to-date total to 67,574 square feet of total net gain. New development delivered two new buildings to the expand the medical-only office inventory to nearly 7.1 million square feet. Pre-leasing activity within the two newly-delivered buildings contributed to absorption gains this quarter. The two-story Dominion Crossing Medical Office Building (30,000 sf), for example, came online with University Health System (4,201 sf) and a pediatric dermatologist (5,523 sf) in place. Similarly, the three-story Christopher Medical Office Building at Grace Point (54,648 sf) opened with its anchor tenant, Sage Bariatric. …Read Entire Post

Neighboring landlord buys former hail-damaged Target site

target_logoExtensive hail damage earlier this year may have shuttered one of Target‘s San Antonio locations, but for neighboring landlord Weingarten Realty (NYSE: WRI), the sky opened up with a new opportunity.

Commercial real estate giant Weingarten Realty has closed on the former Target site neighboring the firm’s Northwest San Antonio power center. The flooding and hail resulted in significant interior and exterior damage which sealed the fate for the retailer’s already underperforming location.

Click here to read the full article: Neighboring landlord buys former hail-damaged Target site San Antonio Business Journal 11-15-2016

CPA firm grows into the HQ building Joeris outgrew

Fast growing firm taking on property ownership.

Fast growing firm taking on property ownership.

San Antonio-based accounting firm ATKG LLP has closed on the building at 1390 E. Bitters Road. Accounting firm ATKG has closed on the 15,000-square-foot property that previously served as Joeris General Contractor’s headquarter facilities.

Joeris completed its current headquarters — a 41,073-square-foot property in the Arion Business Park — in December 2014. Legend Oaks Healthcare occupied the former facility prior to ATKG’s acquisition. …Read Entire Post

Weston Centre lands another major tenant

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Coca Cola takes up more space at the Weston Centre beginning the first quarter of 2017.

The Coca-Cola Co. (NYSE: KO) has signed a lease for 3,000 square feet on the downtown high-rises’ sixth floor, adding its name to a string of new and incoming tenants to the 32-story property at 112 E Pecan St.

The Atlanta-based beverage giant will work with local firm Insite Architects on a $180,000 finish-out project, and the company is anticipating a first quarter 2017 move-in date. Coca-Cola’s new address will be an extension of its Central San Antonio footprint, with its bottling facility located less than four miles away at 1 Coca Cola Place, which is to the east of downtown. …Read Entire Post