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

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SA retail development ramps up, but still nowhere near meeting demand

Major tenants promote expansion of retail sites.

Major tenants promote expansion of retail sites.

San Antonio’s retail market is on track to add 1.3 million square feet of new space. That may sound like a lot, but it is nowhere near meeting the city’s pent-up demand.

The market has bounced back however, either by backfilling unoccupied space or offsetting it through other fully leased construction projects. However, retail development in San Antonio continues to be driven by two major tenants. Yes, you guessed it — Wal-Mart and H-E-B.

Demand and rental rates jump dramatically for space anywhere near those retailers. However, their newer locations have provided little to no surrounding retail space, despite a period of steady demand for restaurants and service providers among neighboring communities.

On a brighter note, however, there are a number of retail developments on the table that are expected to provide some relief by breaking ground in late 2016 or early 2017.

With all demand increases, rental rates for every class of retail space has either held steady or treaded upward, especially among leading Class A retail centers, where rates can reach the $40-per-square-foot or higher level.

Click here to read the full article: SA retail development ramps up, but still nowhere near meeting demand San Antonio Business Journal (7-6-2016)

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