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San Antonio Office tenants still planning remote work strategies
SAN ANTONIO OFFICE VACANCY AT 12.1%
Two months into 2022, overall vacancy is at 12.1%, up 120 basis points from this time last year at 10.9%. Availability is at 13.7%, down 40 basis points from February 2021 at 14.1%. The difference between this figure and the vacancy rate reflects expected future move-outs. The San Antonio office market has recorded 542,000 sq. ft. of leasing activity, comprised of new leases and renewals, while net absorption (move-ins minus move-outs) is at negative 854,000 sq. ft., down from negative 82,000 sq. ft. year-over-year.
LEASING ACTIVITY UP YEAR-OVER-YEAR
Even with the increase in vacancy, leasing activity was up 44% year-over-year. The largest transaction year-to-date was 69,000 sq. ft. leased at Crosswinds Building B in the Northeast submarket. Net absorption remained negative during the first two months of the year due in part to 90,435 sq. ft. being added back to the market at 305-315 E. Houston St. in The Grant & Kress Building; 74,654 sq. ft. of vacant space in the Spectrum Building at 613 NW Loop 410; and 45,279 sq. ft. becoming vacant at Petroleum Tower 1 at 8700 Tesoro Drive.
FROST BANK EXPANDING ON EAST SIDE
Frost Bank is expanding with its new $6.6 million mobile banking facility on the East Side. The new, 4,150-sq.-ft. space at 1739 S WW White Road on the East Side will be near the full-service Frost WW White Financial Center. Construction on the drive-thru bank is planned to begin in March 2022, with a completion date in Q3 2022. In the San Antonio metro area, Frost Bank has 7% of the market share, the third-largest of any other bank in the area, according to the Federal Deposit Corporation.
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