Office market indicators remain strong closing out 2017. The San Antonio office market vacancy rate was 10.2% nearing the end of the fourth quarter, with year-to-date net absorption at close to 1 million sq. ft. and deliveries at 1.35 million sq. ft. The amount of space under construction stood at 892,205 sq. ft., with 565,077 sq. ft., or 63.3% of that space available for lease. The quoted average gross rent remained at $21.72 per sq. ft. for existing space, while the asking rent for new space is around $30.00 per sq. ft.
San Antonio office sales volume up 145% year-over-year. Real Capital Analytics data reports year-to-date office sales volume in the San Antonio area at $720.3 million, resulting in a year-over-year change of 145%. The buyer composition is made up of 48% private, 20% institutional, 18% user/other, and 14% public listed/REITs. One of the biggest commercial transactions in San Antonio this year is the acquisition by Preferred Office Properties of Westridge at La Cantera from USAA Real Estate. The property is a 258,031-sq.-ft., Class A office campus comprised of two four-story buildings fully leased to USAA and the headquarters of Harland Clarke Holdings.
San Antonio home to fifth GM service center in North America. GM Financial opened its new 100,000-sq.-ft. facility that broke ground in April 2016. The center sits on 13.8 acres of land off of Raymond E. Stotzer Freeway at the intersection of Westover Link and North Ellison Drive. The service center has added more than 200 jobs in the region, with the ability to accommodate up to 700 employees.
Area unemployment rate declined to a 16-year low. The San Antonio economy grew at a steady pace in October, as jobs surged and the area unemployment rate plunged from 4.0% in September to 3.6% in October, the lowest level since December 2000. San Antonio employment increased at a 6.0% annualized rate over the three months through October with construction job growth booming, due to growth in specialty trade contractors and new building construction.
Director of Research
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