San Antonio Office absorption at highest January through July aggregate total since 2017.
VACANCY RATE INCREASES TO 11.1%
The overall vacancy rate in the San Antonio office market is at 11.1%, up 60 basis points from this time last year at 10.5%. The vacancy rate for Class A properties is at 14.1%, up from 13.0% in the prior period. Net absorption (move-ins minus move-outs) of positive 290,000 sq. ft. was up from negative 85,000 sq. ft. at this time in 2020. In addition, six properties with a combined total of 619,000 sq. ft. of new supply has been delivered to the market so far in 2021, with an occupancy rate of 54%. Year-to-date through July, the office market has recorded 1.2 million sq. ft. of leasing activity—which is comprised of both new leases and renewals—down 60% from one year ago.
PROPOSED MIXED-USE THAT COULD INCLUDE OFFICE SPACE
Members of the Black family, which operate Terry Black’s Barbecue in Austin and Dallas, have purchased a mostly vacant 1.4-acre site—roughly a city block of land, a few blocks north of the successful Pearl development. The property is located at 2110 Broadway and will possibly be developed into a combination of San Antonio office space, multifamily, a hotel and restaurant. It is a prime spot near downtown business, the Alamo Heights neighborhood, and proximity to the Pearl.
SAN ANTONIO LABOR MARKET
The metro’s unemployment rate dropped in June to 5.5%, the lowest since March 2020. The state’s jobless rate fell slightly to 6.5%, and the nation’s rate ticked up to 5.9%. Net payrolls grew in the second quarter, with leisure and hospitality leading growth (15.1%, or 4,190 jobs) followed by government (8.8%, or 3,650 jobs). In March and April 2020 combined, 130,511 jobs were lost due to the pandemic. As of June 2021, 83.3% of those jobs had been recovered. Click to read more at www.naipartners.com.