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Office market vacancy remains steady. Nearing the end of the third quarter, the vacancy rate remained at 9.8%, unchanged from this time last month. Year-to-date there has been 108,442 sq. ft. delivered to the San Antonio market, with 15,420 sq. ft. of that space leased. Meanwhile, 1.0 million sq. ft. is currently under construction, with less than 35.0% available for lease. Year-to-date net absorption totals 270,831 sq. ft., while there have been 465 deals accounting for close to 1.7 million sq. ft. of leasing activity. The average asking rate of renting office space increased slightly by $0.05 to $22.29 per sq. ft. on a full-service basis from $22.24 this time in August.
Investment sales down year-to-date through August. According to Real Capital Analytics, investment sales of office properties in the San Antonio area totaled $416 million, a -19.1% change from one year ago. Private investors have been the most active buyer type for 2018, comprising 58.0% of San Antonio’s total sales volume, followed by institutional capital at 41.0%.
Local developer trades NW office building. Boyd Watterson Asset Management purchased the Trinity Building in the Brass Professional Center at 4204 Woodcock Dr. for a reported $7.6 million, or $113.16 per square foot. Local developer Brass sold the 66,721-sq.-ft. office building that was built in 1982. The city of San Antonio is one of the Trinity Building’s anchor tenants.
Job growth in San Antonio mixed. Growth across industries was varied, with health care employment rising but leisure and hospitality employment dropping. Mining and other services grew at a healthy pace, while the remaining private services sectors were flush or lost jobs over the three months through July. Construction jobs accelerated, with a net addition of nearly 900 specialty trade contractor jobs alone.
Director of Research
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