San Antonio’s retail market thrives due to consistently-strong population and job growth.
VACANCY TIGHTENS AT 4.4%
Over halfway through 2022, overall vacancy in San Antonio’s retail market is at 4.4%, dropping 90 basis points from last year’s 5.3%. Availability is at 5.9%, down 120 basis points from July 2021 at 7.1%. The difference between this figure and the vacancy rate reflects expected future move-outs. 1.6 million sq. ft. of leasing activity comprised of both new leases and renewals was recorded, while net absorption (move-ins minus move-outs) is at 1.2 million sq. ft., up over 200% from this time last year.
LEASING ACTIVITY STEADY
Leasing activity was on par at 1.6 million sq. ft. compared to July 2021 at 1.7 million sq. ft. The largest transaction year-to-date was 121,581 sq. ft. leased at Schertz Corporate Center in Guadalupe County. In addition, Pinstack leased 54,000 sq. ft. at Park North Shopping Center in the North Central submarket; Valor Healthcare subleased 41,117 sq. ft. at the former Walmart Neighborhood Market at 3418 E. Southcross Blvd. in the South submarket; and Ollie’s Bargain Outlet took 35,000 sq. ft. in Woodland Crossing in the Northeast submarket. Overall positive trends in leasing activity have driven average retail asking rents higher. The San Antonio metro NNN rent is at an all-time high of $17.28 per sq. ft., up 5.3%from $16.41 last year.
RETAIL AND ROOFTOPS
The San Antonio area saw a 9% decrease in home sales compared to last year. Closing the month of June, there were 5,399 new listings, 7,721 active listings, and 3,036 pending sales, according to the San Antonio Board of REALTORS®. Although there was a slight decrease in sales, there was an increase in median and average home prices. In June, there was an 18% increase in average home prices and a 20% increase in median prices compared to a year ago. The area also saw a 14% increase in price per square foot. 100% of homes sold for the list price and stayed on the market for an average of 29 days.
Director of Research
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