The total average gross rental rate for the San Antonio metro continues to rise, standing at $21.38 per sq. ft. year-to-date—the highest rate ever tracked for this market.
Net absorption for the overall office market is at positive 258,818 sq. ft. year-to-date. Direct space absorbed 314,115 sq. ft., balancing the negative 55,297 sq. ft. from sublease space.
Hulu recently signed a 60,000-sq.-ft. long-term lease at 4511 Horizon Hill Blvd. at Fountainhead Park, in Northwest San Antonio. The company will initially occupy 45,000 sq. ft. on the third floor in the fall of 2017, and is expected to take over an additional 14,000 sq. ft. on the second floor by September 2018.
The amount of space delivered to the market year-to-date represents 180,530 sq. ft., of which roughly 25,000 sq. ft. is available for lease. As for the construction pipeline, close to 1.3 million sq. ft. is underway across eight properties, with 50% pre-leased. Almost 600,000 sq. ft. of current construction is scheduled for delivery in June and July of 2017.
San Antonio ranks No. 3 among U.S. cities for the largest one-year population increase from July 2015 to July 2016, according to the U.S. Census Bureau. Meanwhile, New Braunfels ranked No. 9 on the list of cities with more than 50,000 residents that had the highest growth rate over that one-year period.