Although currently well within a sub-10% vacancy rate, recent activity in the San Antonio retail market has some wondering where are all the retailers?  Despite leasing activity, tenant moves and closures yielded 108,621 square feet of negative net absorption.

While the large national retailers are impacted the growing demand of online shopping, smaller retailers, including the Mom & Pop shops are finding it more and more challenging to cover the costs of rent and operating expenses, especially in new construction. The San Antonio retail market closed the first quarter with a citywide vacancy rate of 7.8% which is relatively stable compared to 7.6% last quarter.

Overall, the local San Antonio economy remains strong and steady.  Job growth is also expected to hike up this year with Hulu, CaptureRX, and Scaleworks announcing their new future establishments within the city. As the population growth doesn’t show any signs of slowing down and all growth drivers remain widely available, we can expect a relatively stable future even as retailers adapt to changes in the industry.

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