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 San Antonio releases 2Q 2010 Retail stats

Source: REOC San Antonio

The anemic economy has many retailers languishing in the doldrums but the San Antonio market posted positive activity in the second quarter.  New leases and expansions within the city’s 45 million square feet of retail inventory produced 61,950 square feet of positive net absorption led by the re-tenanting of space in the North Central sector at San Pedro Crossing.  

The center landed a new Toys/Babies “R” Us combo store (60,687 sf) to help fill space previously occupied by now-defunct Circuit City and Linens ‘n‘ Things.  Tenants no longer able to ride out the economic downturn like Hollywood Video and Furniture Factory Warehouse work to offset positive gains but current market conditions provide strong tenants with ample opportunities for good deals.  Best Buy, for example, is in the process of vacating space at Ingram Festival and will move just down the road to fill 41,850 square feet at 6001 NW Loop 410 previously occupied by Circuit City. 

At the close of the second quarter the citywide vacancy rate of 14.0% remained stable compared to the same quarter last year but the citywide average quoted rental rate of $17.81 dropped back fifty-two cents or 2.8% compared to a year ago. 

Both investment activity and new development remain very limited.  The few sales that have closed have been mostly small, single-tenant retail properties purchased by local buyers.  Expanding local grocer H-E-B accounts for nearly all of the new construction that will be delivered to the area through the end of the year.  H-E-B recently opened a new center in the satellite community of La Vernia and is set to open the second New Braunfels location in the third quarter while the H-E-B Plus store being constructed at the former Westlakes Mall site is scheduled to come online before the end of the year.

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