Quarter-to-date, San Antonio’s office market leasing volume has posted close to 100 deals totaling more than 232,000 sq. ft., with the average deal size 2,400 sq. ft.
The largest recent lease signed is MCCI Medical Group, moving into 20,000 sq. ft. at Travis Park Plaza on 711 Navarro St. in the Central Business District. MCCI will absorb the entire sixth floor, occupying the building with other tenants including Linebarger Goggan Blair and Symphony Society of San Antonio.
San Antonio’s office market has reported more tenants moving out of space than tenants moving in; as a result, absorption is down quarter-to-date.
The trend of growing rental rates has continued throughout the San Antonio metro. The average gross rental rate continues to rise above $21.00 per sq. ft., the highest historical rates tracked for this market.
The construction pipeline is at 1.0 million sq. ft. across six developments located in the North Central and Northwest submarkets, including Frost Tower, in the CBD. The new office construction is about 57% preleased.
Two properties have come online year-to-date, with 150,735 sq. ft. at Vista Corporate Center 100% leased, and 29,795 sq. ft. at Teralta Corporate Park 20% leased.