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San Antonio

Market Insight

San Antonio Q1 Market Stats

$23.60
Avg. Gross Rent
11.1%
Vacany Rate
718K
SF Delivered
2.2M
SF Under Construction

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Running the Road to a Bigger & Better Downtown

A resurgence of investment in downtown San Antonio is bringing new excitement and attention to the central business district. One of the key factors garnering this attention is the expansion of the University of Texas at San Antonio’s downtown campus, with the addition of the $90 million National Security Collaboration Center & National School of Data Science along San Pedro Creek and the relocation of the College of Business. The $15 million donation from Graham Weston to help secure funding for this new project, along with a $20 million donation from Shiner Brewery owner Carlos Alvarez to rename the business school and advance the University’s research capabilities, are expected to have a serious impact on the city’s economy.

This funding is part of UTSA’s campaign to raise $500 million in support of its 10-year vision for the downtown campus. The University is seeking to expand its downtown footprint on parcels of land adjacent to the existing downtown campus. The land was acquired from a combination of gifts from the city, county, Weston Urban, TxDOT, and the University’s own fund. The expansion will be conducted in four phases and include over 4.25 million square feet of academic, athletic, research, retail, and office space throughout more than 20 proposed buildings. The goal is to be the gateway that connects the west side neighborhood to downtown with pleasant walkable areas and inviting spaces while maintaining the historical and cultural influences of the area and adding the space that UTSA needs to accommodate the significant campus population growth in addition to their larger academic and research aspirations.

This expansion, accompanied by dozens of other developments and renovations will continue to help revitalize the central business district and bolster the local economy. With the easing of restrictions and an increasing number of vaccinations being distributed, we are expecting to see a rebound in the office market while most businesses plan to return to the office by the third quarter of this year.

On March 31st, the San Antonio Economic Development Foundation unveiled the All In SATX plan, which aims to add 140,000 jobs and generate $55 billion in economic impact by 2025. A team of major employers, small businesses, education and training institutions, economic development organizations, and public-sector agencies collaborated on the plan. The goal is to create economic opportunities for every San Antonian and stimulate the region’s ability to attract talent and to become economically competitive.

In the past, San Antonio has had a reputation of not being able to attract talent as well as other major metropolitan areas, but these types of initiatives will likely change that when it comes to recruiting and advance the city in a way that was just not possible before. There is so much opportunity for growth and with these resources, it looks like the city is finally capitalizing on that opportunity to achieve that in the coming years.

San Antonio Sublease Activity

Quarter Class A Office Class B Office Class C Office Total
2016 Q1 46265 2857 606 49728
2016 Q2 70512 2857 0 73369
2016 Q3 54457 0 0 54457
2016 Q4 54457 3054 0 57511
2017 Q1 64401 11958 0 76359
2017 Q2 34579 10431 0 45010
2017 Q3 51081 9981 0 61062
2017 Q4 32019 6958 0 38977
2018 Q1 34241 6819 0 41060
2018 Q2 50063 8659 0 58722
2018 Q3 44134 15324 0 59458
2018 Q4 46022 15324 0 61346
2019 Q1 121666 44145 0 165811
2019 Q2 122472 53489 0 175961
2019 Q3 136671 94717 0 231388
2019 Q4 133362 100297 0 233659
2020 Q1 169402 99738 0 269140
2020 Q2 321126 134035 1584 456745
2020 Q3 489878 208721 13398 711997
2020 Q4 511419 301832 43759 857010
2021 Q1 544111 342689 45110 931910

San Antonio In the News

The Tide is Turning Away from Sinking Office Footprints March 2021 Bisnow San Antonio Excels as Top Market for Affordable Housing March 2021 Culture Map Texas Earns National Recognition for Most Capital Investment for 9th Year in a Row March 2021 SABJ San Antonio Goes All In on $55 Billion Economic Development Plan April 2021 Culture Map

 

San Antonio Q1 2021 Development Pipeline

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San Antonio Submarket Map

 

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