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Office market vacancy steady. The vacancy rate midway through the first quarter of 2019 is at 10.3%, up 10 basis points from this time last year. Occupancy of the 237,000 sq. ft. delivered to the market in 2018 stands at 55.8%, and of the 1.5 million sq. ft. currently under construction, 30.5% of that space is available for lease. The average gross asking rate of renting office space is at $22.44 per sq. ft., up 2.0% from this time last year at $21.99 per sq. ft.
The Spectrum building under new ownership. Hartman vREIT XXI, has acquired the Spectrum Building. The 10-story; 175,314 sq. ft. office property is located at 613 NW Loop 410 in the North Central submarket. Pace Proprieties sold the building for $16.5 million, or about $94 per sq. ft., according to CoStar. The Spectrum Building was 87% leased at the time of the sale to a mix of tenants, including anchor Oracle Corp.
Growth in local economy remained soft in December. The San Antonio unemployment rate increased slightly to 3.4% in December, up from 3.2% in October. This was still below the Texas rate at 3.7%, and the U.S. rate at 3.9%. Jobs grew at an annualized rate of 1.2% during the fourth quarter led by the leisure and hospitality industry adding 2,800 net new jobs, followed by mining. The government sector expanded somewhat, while the information and manufacturing sectors shed jobs in the three months ending in December.
Director of Research
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