Source: REOC San Antonio
After six consecutive quarters of small but steady gains toward recovery, the San Antonio office market took a huge hit in the second quarter. The spike in vacancy may be disheartening but not surprising. Looming shadow space – leased but vacant – created a formidable challenge for a market that has averaged less than a half million square feet of annual positive absorption over the past five years.
One quarter’s poor performance cannot be interpreted as a reversal of the market’s positive trend, but it does hint to a protracted recovery period, especially in light of the large blocks of space anticipated to return to vacancy in 2012 upon completion of a handful of high-profile build-to-suit projects.
Download our 2Q 2011 Office market snapshot report. For more information, read Alamo City’s office market in the doldrums, report shows and Blog: Despite the challenges, San Antonio office market garnering much investor interest(San Antonio Business Journal, 7-22-11)
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