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

Got a Commercial Real Estate Need or Question?


Ask One of Our Trusted Advisors

REOC San Antonio releases 1Q office market stats

Source: REOC San Antonio

Paralleling the steady stream of positive indicators reported in the U.S. economy, the San Antonio office market demonstrated encouraging signs of recovery in the first quarter.  

After a remarkably flat year in 2009, leasing activity signed in the first three months of this year generated 116,310 square feet of positive net absorption within the city’s 26.7 million square feet of office inventory.  New projects in the Northwest sector experienced the greatest gains led by insurance companies like Allstate (75,000 sf) at The Oaks at University Park and Nationwide (40,000 sf) at Farinon Office Building.  Medical-related activity such as XL Health (39,057 sf) at 4350 Lockhill Selma also continued to spill over into the traditional office market helping to fill vacant space. 

As a result, the citywide direct vacancy rate improved to 18.4% compared to 18.6% last quarter.  The overall citywide vacancy, including 580,700 square feet of sublease space, also showed improvement dropping from 21.0% last quarter to 20.5%.  Still, the significant amount of lingering vacancy in the market continues to support considerable incentives to attract tenant activity and works to keep quoted rental rates flat.  At the close of the first quarter, the citywide average quoted rental rate ticked up one cent over last quarter to $20.45 per square foot per year on a full-service basis – up only six cents or 0.3% compared to a year ago. 

Although speculative construction is still at a standstill, two sizeable projects started prior to the market’s turn are expected to come online in the second quarter including the vacant two-building Eilan project totaling nearly 206,000 square feet located at I-10 & La Cantera Parkway and the significantly pre-leased two-building Sentry Gateway project totaling 250,000 square feet located adjacent to the NSA campus in the Far West sector.

Share

Leave a Reply

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>