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Overall occupancy in the San Antonio retail market is at 94.7%, down 40 basis points from this time last year at 95.1%. Meanwhile, the triple-net average asking rental rate remains elevated at $16.36 per sq. ft., up slightly from $16.24 in February 2019.
Market activity. Overall occupancy in the San Antonio retail market is at 94.7%, down 40 basis points from this time last year at 95.1%. Meanwhile, the triple-net average asking rental rate remains elevated at $16.36 per sq. ft., up slightly from $16.24 in February 2019. Availability of the 1.2 million sq. ft. currently under construction stands at 48%. In addition, there has been 503,000 sq. ft. of leasing activity year-to-date—which is comprised of both new leases and renewals—more than three times as much compared to this time in 2019.
Stay-Home Order for San Antonio. In order to prevent spreading COVID-19, the CDC recommends practicing social distancing. People can still shop for groceries, pick up prescriptions, visit the doctor, fill up their gas tanks, and go to work if necessary, reported city officials. San Antonio-based grocer H-E-B has made several temporary changes to how employees work and what customers see in stores. One example is delivery service. The grocer rolled out free delivery for all pharmacy orders through all its stores that offer the service. The company’s digital service has also eliminated touch screen acknowledgment of orders and has added an option for customers to request that carriers leave items at their doorstep.
Economic indicators. The Federal Reserve Bank of Dallas reported that San Antonio’s economy saw steady growth in January. The metro unemployment rate ticked up to 3.1% in January, with the state jobless rate holding at 3.5% and the U.S rate declining to 3.5% in February. Although the unemployment rate ticked up slightly, job growth remained steady over the three months through January. Wages continued to climb, while home prices held at a high level. This data shows that the economy was strong prior to the coronavirus (COVID-19) outbreak in the U.S.
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