Major Projects Shaping the Future of San Antonio in 2022
Q4 2021 San Antonio Office Outlook
As we enter into another year of uncertainty caused by new variants and forecasts of questionable economic conditions, we continue to remain optimistic about what this year has in store for us and our clients. With many major projects and developments on the horizon here in San Antonio and throughout Central Texas, it is hard not to be excited about the impact this will have on the local economy. From highway expansions and high rises to parks and theaters, let’s take a look at some of the projects that will soon be coming to life across different parts of San Antonio in 2022.
The San Pedro Creek Culture Park, which has been in the works since 2018, aims to be the collaboration of culture, art, and nature in the heart of our city. According to the website, the San Pedro Creek Culture Park is expected to spur a $1.5 billion economic impact by creating 2,100 new housing units, 1,428 new downtown employees, 7,300 new downtown residents, a 150 percent increase in new property value, and $227 million in ad valorem tax revenues upon completion. Situated along the San Pedro Creek will be part of the UTSA Downtown Campus expansion that will include the new School of Data Science, National Security Collaboration Center, and the expanded College of Business. This new expansion to the UTSA campus will be a powerful economic driver for downtown, bringing many new people, additional funding, and increased attention to this area. At an adjacent property to the north, Weston Urban plans to redevelop the Continental Hotel and construct a 15-story apartment tower in a partnership with Bexar County. Another Weston Urban apartment tower will also break ground this year just a few blocks further north. The $107 million 32-story high-rise was recently given final approval by the San Antonio Historic Design and Review Commission. Another large-scale development is expected to be coming soon to the same area, another few blocks to the north. A development known as Riverplace is expected to bring a 21-story Dream Hotel, a 20-story multifamily building, a 17-story condo building, and an office building of an undetermined height to a 3.2-acre piece of land at the 500 block of North Main Street with a cost of around $400 million.
Another one of the more notable projects with a high price tag coming to the central business district is the redevelopment of the Lone Star Brewery. According to the San Antonio Report, “Redevelopment plans call for at least 1 million square feet of housing, 186 hotel rooms, nearly 400,000 square feet of office and commercial space, and refurbished streets and new widened sidewalks along Lone Star Boulevard.” The project will be built in three phases over a 10-year period and will have a total cost of around $596 million, but is expected to create an assessed value of around $709 million. Other upcoming downtown projects include Broadway East, updates to Hemisfair Park, the new Federal Courthouse, redevelopment of the Scobey Complex, and the completion of the Jefferson Bank HQ.
In other parts of town such as the far west side and the far northwest side, we are also seeing substantial growth. Major construction will soon begin on significant portions of highway 1604 and I-35. North Loop 1604 is undergoing a transition from four lanes to 10 lanes, which will include HOV lanes, and I-35 will have new lanes and elevated roadways added in the northeast part of the city. On the far northwest side, Spurs Sports & Entertainment recently announced their plans for what they call a “human performance campus”. According to the San Antonio Business Journal, “The campus structures would span roughly 500,000 square feet, housing a mix of medical and research activity, as well as hospitality and other commercial spaces”, with a cost of over a half-billion dollars. In north central San Antonio, the historic Sunken Garden Theater, which is currently in a state of disrepair, is slated for a $62 million renovation if included in the city’s 2022 municipal bond. This makeover could up the city’s status as a destination where artists want to perform compared to other large cities. Kirk Feldmann, a consultant on the project, stated that within the first 10 years of operation the theater could return $239 million in economic impact and bring 170 full-time jobs. On the south side, the area around the Texas A&M-San Antonio campus will begin to look busier as well. According to TAMU-SA President Cynthia Teniente-Matson, “The hospital is key to this strategic development and will join 4,000 residential units, including single-family homes, townhomes, apartments, and student housing. With the university as its anchor, VIDA will welcome shops, restaurants, office spaces, and 40 acres of parks and trails,” referencing the 600-acre development VIDA and the future site of a new University Health hospital. This development is just one of at least three large-scale master-planned projects coming to the south side.
Out of Town:
Construction all around San Antonio is booming also. In Castroville, a 453-acre, $500 million master-planned development with commercial and residential uses known as Alsatian Oaks, recently broke ground and is expected to more than double the town’s population. In New Braunfels, the historic textile mill on the Guadalupe River could be seeing a large-scale redevelopment as well. According to the San Antonio Express-News, “Property owner Don Thomas is seeking city approvals to transform the property — the mill and surrounding land — into a mixed-use project that could include a hotel, multifamily housing, open community space and space for retail, restaurants, offices, and events.” In Boerne, an additional 850,000 SF of office, retail, and restaurant space will soon be coming online on 118 acres at Lemon Creek Ranch, yet another massive development happening just outside of town.
It is important to realize that even during this period of uncertainty, there are big things happening that will impact our city and transform our market. It is nice to have something to look forward to these days, and these projects are certain to have a positive effect on our local economy and sustained growth.
Download the Q4 2021 San Antonio Office Market Report