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

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REOC Releases 4Q 2016 Retail Market Report

Source: REOC San Antonio/Xceligent

Source: REOC San Antonio/Xceligent

The San Antonio retail real estate market ended the year strong with over 950,000 square feet of positive net absorption. The Neighborhood Center submarket led with a positive net absorption of 132,640 square feet, while the North West sector led the city by creating 62,324 square feet of positive net absorption.

The citywide vacancy rate for the San Antonio retail market tightened throughout the year which ended with an impressive 7.6% compared to the 8.0% that was recorded in the previous quarter.

Neighborhood Centers anchored by HEB and Walmart are known to create retail clusters; however, new development for the grocery retailers is expected to take a break for the next year. While HEB and Walmart will be slowing new locations, major projects such as the Shops at Dove Creek, Brooks Crossing and Singing Hills, are expected to deliver almost 600,000 square feet of retail space.

Rising rents continued into the fourth quarter to reach a citywide average of $16.33, per square feet annually on a triple net basis. When considering rental rates it’s important to remember that they rely on numerous factors such as property types and location.

With steady population growth and an ever expanding housing market at the forefront of San Antonio’s appealing characteristics, the market should expect to attract more retailers. For example, San Antonio recently caught the eye of furniture retailer IKEA which announced plans for a nearly 300,000 square feet center the North East sector.

 

Click the following link to download REOC San Antonio’s complete report: 4Q 2016 Retail Market Report

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