Consistent office demand in San Antonio is also supported by a diverse group of industries.
San Antonio vacancy at 12.1%
Eight months into 2022, overall vacancy is at 12.1%, up 170 basis points from last year at 10.4%. Availability is at 15.5%, up 130 basis points from August 2021 at 14.2%. The difference between this figure and the vacancy rate reflects expected future move-outs. The San Antonio office market has recorded 1.7 million sq. ft. of leasing activity, comprised of new leases and renewals, down 5.2% from last year, while net absorption (move-ins minus move-outs) is at negative 907,000 sq. ft., down from a positive 241,000 sq. ft. year-over-year.
Average asking full-service rents increase
Despite the year-over-year decrease in net absorption and leasing activity, significant 2022 transactions include Medtronic Inc. moving into 145,025 sq. ft. in Overlook at the Rim in the Far Northwest submarket; 88,520 sq. ft. leased in One International Centre in the North Central submarket; Spectrum moving into 69,000 sq. ft. in Crosswinds Technology Park in the Northeast submarket; and Alamo NEX Construction occupying 38,323 sq. ft. at 7330 San Pedro Ave. in the North Central submarket. In addition, due partly to the new construction added to the market, the average asking full-service rent in the San Antonio office market metro is at $24.22 per sq. ft., up by $0.30 or 1.3% from this time last year.
Jefferson Bank Tower near completion
The new 13-story Jefferson Bank tower, located at the intersection of Broadway and Josephine streets at 1900 Broadway, is scheduled for completion in Q4 2022. According to state filings, the bank began construction on the new headquarters in November 2020 with an estimated cost of $86.2 million. Jefferson Bank will occupy 118,000 sq. ft. of the building on levels 7 to 10 and partial space in the lobby for a customer banking center. The remaining Class A office space will be available for lease; at least one tenant, law firm Jackson Walker, has already signed a 17,692 sq. ft. lease for the 11th and 12th floors.
Leta Wauson
Director of Research
[email protected]
tel 713 275 9618