Source REOC San Antonio/Xceligent
At the close of the year, the citywide rental rate stood at $24.55 per square foot per year on a full-service basis marking a $0.06 increase from last quarter and $0.59 increase from the same quarter a year ago. New, higher-priced options typically work to push up average rental rates but the primary factor in increased rents over the year is the influence of higher operating expenses that get calculated into those buildings that quote on a triple net basis. Both the Far North Central and Far West sectors lead the medical market in terms of average lease rates – a strong indication of demand for space in the growing medical markets of the expanding San Antonio suburbs.
In all, medical-only office properties closed out 2015 with a relatively flat 6,873 square feet of negative absorption but considering that two major facilities (Victory Hospital and Forest Park Medical Center) fell into bankruptcy during the course of the year, the overall market did well to maintain relative stability.
Click to download REOC San Antonio’s complete 4Q 2015 Medical Office Market Report
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