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The overall vacancy rate in the San Antonio office market is at 10.6%, up from this time last year at 10.0%.


Market Highlights

 Vacancy rate at 10.6%. The overall vacancy rate in the San Antonio office market is at 10.6%, up from this time last year at 10.0%. The vacancy rate for Class A properties is at 12.5%, up from 12.2% in the prior period. Net absorption (move-ins minus move-outs) of positive 25,000 sq. ft. was down from positive 435,000 sq. ft. at this time in 2019. In addition, 644,000 sq. ft. of new supply has been delivered to the market so far in 2020, of which 51% is occupied. Year-to-date through November, the office market has recorded 3.2 million sq. ft. of leasing activity—which is comprised of both new leases and renewals—up 61% from one year ago. 

San Antonio construction permits. The San Antonio Business Journal reported that November saw more than $554 million in commercial construction permits. Included is Skanska’s multiple permits totaling $59.4 million for interior work at the former Frost Bank tower it is redeveloping for the city of San Antonio at 100 W. Houston St. In addition, Southwest Research Institute is building an office building on its headquarters campus, separate from the office project announced this summer. The 70,000-sq.-ft. facility will include administrative, lab and testing areas for commercial spacecraft evaluation. 

San Antonio Economic Indicators. According to the Federal Reserve Bank of Dallas, in October, the metro’s unemployment rate decreased to a still elevated 6.6%, which is below the 6.9% in the state and nation. Net job growth in San Antonio was positive in October and increased an annualized 5.2% (12,785 jobs) in the three months ending in October, with generally positive performances across sectors. While job gains have been broad based since May, they have not been large enough to offset the losses in March and April. So far this year, employment has declined across all sectors, with total jobs down 8.0%. 

San Antonio Office - Data Graphs - Dec 2020

 


Leta Wauson
Director of Research
[email protected]
tel 713 275 9618

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