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

Got a Commercial Real Estate Need or Question?


Ask One of Our Trusted Advisors

REOC San Antonio releases 1Q 2013 retail market update

Source: REOC San Antonio / Xceligent

Source: REOC San Antonio / Xceligent

San Antonio-area retail properties, which continue to benefit from a stable local economy, are off to a slow start in 2013.  The market revealed a mixed bag of small losses and gains and closed the first quarter with a citywide vacancy rate of 11.2%.  Power Centers continue to dominate the market with a tight citywide vacancy rate of 6.2% reflecting the recent backfilling of several key big boxes.  Meanwhile, the vacancy rates within area Neighborhood and Strip centers are roughly double that.  

Lack of new product will continue to funnel new and expanding retailers and restaurants into existing product which will boost occupancy.  Rental rates remained relatively stable in the first quarter with rents in top-tier centers showing slight increases.  The citywide average asking rental rate for all types of space stands at $15.60 per square foot per year on a triple net basis.  Steady leasing activity and healthy retail sales are expected to have a positive impact on the local market over the coming year which will put upward pressure on rental rates.   

While new speculative development remains at historic lows, two new Walmart supercenters have recently opened at FM 78 & Foster Road on the city’s Northeast side and Bandera & Leslie roads in the Northwest community of Helotes.  Walmart has plans for several more supercenters as well as the smaller neighborhood market concept – both will bring jobs and create the potential for additional shadow space development.  Helotes Town Centre (27,000 sf), for example, broke ground this quarter adjacent to the new Helotes Walmart.

Click to download the 1Q 2013 Retail Market Report.

Share

Leave a Reply

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>