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 retail market update for 2Q 2014

New leases and expansions generated 108,746 square feet of positive net absorption for the period spanning the months of April through the end of June, according to the survey of more than 47 million square feet of retail lease space.  The second quarter gain raised the year-to-date total to 371,043 square feet.  As a result, the citywide vacancy rate tightened to 9.9% down from 10.1% last quarter and 10.6% recorded in the same quarter a year ago.

The citywide average quoted triple net rental rate stepped up $0.16 compared to the previous quarter to reach $16.58 per square foot per year which is up $0.63 compared to the same quarter last year for a confident annual increase of 4.0%.  Rates vary by location and product type but, on a citywide average basis, all property types showed increases in asking rents compared to this time last year even though vacancy rates did not improve in all property types.

“San Antonio’s stable economy and healthy retail market continue to attract investor interest but sales activity remains sluggish due to the scarcity of product on the market,” says Brian Harris, CCIM, Senior Vice President/Partner, REOC San Antonio.

“Although retail development remains well-below pre-recession levels, construction activity is heating up,” says Harris.  Several projects are underway to expand existing retail trade areas and well-established niche areas.

Population growth and pent up demand has also prompted expansion in the Far North satellite community of Bulverde where site work continues at Singing Hills.  The 250-acre mixed-use, master-planned community located in the northwest quadrant of the US 281 & Hwy 46 interchange will be anchored by Walmart which plans to open in September 2015.  Additional retailers, restaurants and service providers are currently negotiating to fill pad sites and inline retail space.

Looking ahead, available space will continue to dwindle, especially while development remains dominated by Walmart and other user-driven activity along with smaller, pre-leased niche projects.  As a result, rental rates are likely to continue to rise sharply through the remainder of the year.

Click to download REOC San Antonio’s 2Q 2014 Retail Market Report.

Read related article: Niche areas seeing the bulk of retail activity (San Antonio Business Journal, 8-29-14)

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>