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San Antonio

Market Insight

San Antonio Q4 Market Stats

$27.09
Avg. Gross Rent
16.9%
Vacany Rate
333k
Deliveries
690k
Under Construction

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Urban Downtown Office vs Suburban Office

The suburban office park still holds a sizable lead in office space in San Antonio. Office space in the suburbs lands at 26.4 million square feet compared to 4.9 million square feet of office space downtown in the central business district.

As offices re-open in 2021 and companies look long-term for what to look for in an office, more questions emerge on what is best for the coming year post pandemic. The coronavirus is causing many companies across an array of industries to reconsider their office needs. Here is the case to be made for both options:

 

The Case for Downtown

Recruitment: San Antonio was like many cities in recent years experiencing an urban renaissance, trying to entice a younger workforce downtown. Development with new housing downtown gives the ability to work, live and play within a more vibrant art, music and culinary scene.

Outdoor Space: The winding Riverwalk gives the city a heads up on walkable options for employees to grab lunch or coffee. Additional steps can be taken along the revitalized San Pedro Creek on the western edge of downtown with wider sidewalks, vistas and art. Outdoor meetings have a variety of meeting places with new parks and historic venues. Visiting clients from out of town get to visit your office or can choose between many walkable lunch options.

Climate Change: The average urban dweller in the US has about 1/3 the carbon footprint of the suburban dweller. Mostly because in the suburbs you drive everywhere and with every detached building there is more exterior surface to leak energy.

 

The Case for the Suburbs

Better Rent Price: Asking rents average $26.30 per square foot in the suburbs compared to $33.32 per square foot downtown, according to CoStar. A growing trend with companies is offering a hub-and-spoke model where they have smaller offices closer to their workforce outside of the city.

Affordable Homes: When work from home became the norm, more space was needed in the home for an office. There has been a migration among people ages 25 to 34 from urban areas to suburban areas. Research shows that 48 percent of millennials reported living in the suburbs in 2020, compared with 44 percent in 2019.

Space and Parking: The old suburban office park, dominant in the 1980s, feature larger floor plans that make social distancing easier with work spaces. More parking spaces gives the suburbs an advantage over downtown properties, where parking ratios are considerably lower. With such scarcity, the demand has resulted in paying a premium to accommodate parking for both employers and their employees.

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

San Antonio In the News

Bexar County projected to add 1 million residents by 2040 December 2020 San Antonio Current San Antonio is City No. 4 in the Nation for Minority-Owned Startups January 2021 Culture Map San Antonio Tech Grew in '20, Poised for More Expansion in '21 December 2020 MySA San Antonio Among the Top 15 Cities Where Businesses are Relocating October 2020 Forbes

 

San Antonio Q4 2020 Development Pipeline

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San Antonio Submarket Map

 

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