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 3Q 2014 Retail Market Report

Source:  REOC San Antonio / Xceligent

Source: REOC San Antonio / Xceligent

Demand for retail space has been steady and widespread, backfilling vacant space across the city.  Retail properties continue to benefit from both traditional and non-traditional retail uses.  In all, new leases and expansion generated 89,316 square feet of positive net absorption in the third quarter which raised the year-to-date total to 485,374 square feet of net gain.

As a result, the citywide vacancy rate tightened to 9.4%, down from 9.9% last quarter and 10.7% recorded in the same quarter a year ago.  The citywide average quoted triple net rental rate stepped up to $16.65 per square foot per year which is up $0.42 compared to the same quarter last year for a moderate annual increase of 2.6%.  

Rates vary by location and product type but, in general, all property types saw vacancy rates tighten compared to this time last year, except the Strip Center category which remained stable.  Improved vacancy supported increased rental rates in all property types except the Community Center category.

While retail development remains well-below pre-recession levels, construction activity is warming up.  More than 387,000 square feet of retail space is currently under construction.

Click to download REOC San Antonio’s 3Q 2014 Retail Market Report.

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