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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San Antonio Office Market Attracts Big Name Tenants

1Q17_SAOfcSnap.xlsNew office construction in the San Antonio area delivered three new multi-tenant buildings totaling 140,733 square feet in the first quarter. Gross leasing activity within office lease space translated into 234,545 square feet of positive net absorption marking a healthy start for the new year.

With demand outpacing new supply, the citywide vacancy rate improved to 18.0% compared to 18.5% last quarter. The vacancy is up, however, compared to 17.5% recorded a year ago. The over-the-year increase is primarily due to the addition of the more than 900,000 square feet of new office lease space delivered in 2015 which, as a group, came online at below market occupancy and continues to move through the lease-up process.

Office properties closed the quarter with a combined citywide average quoted rental rate of $22.08 per square foot on an annual, full-service basis. The citywide average rent is up a roughly $2.00 per square foot compared to a year ago reflecting higher rental rates quoted for new product. On average, the cost for renting Class A office space saw an annual increase of $0.87 psf to reach $26.80 while the average rent for Class B space rose only $0.03 for the same period and stands at $20.19.

Click here to access the full REOC San Antonio Office Market report

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