Market Trends
Vacancy Rates and Unemployment Continue to Drop
The trend of an improving San Antonio office space market continues through 2016. The unemployment rate in the Greater San Antonio Area has dropped from 3.9% to 3.5% in the past 12 months.
The demand for San Antonio office space remains strong and the market is growing ever tighter. Great office lease deals have been becoming harder to find. This San Antonio Office Market Report newsletter is distributed as a means of informing our clients and commercial real estate tenants about ways to save time and money during the office leasing process.
The San Antonio office space market has absorbed over 200,000 square feet of office space this quarter. The NW San Antonio Submarket has recorded the most absorption, with nearly 70,000 square feet of office space absorbed. Due to the increasing demand, rental rates for San Antonio office space have been steadily rising higher. The current asking rates are over 4% higher now than they were at this time last year.
If you are seeking San Antonio office space for lease, you may want to consider signing the longest lease term which you are comfortable with. However, you’ll want to be sure not to limit your potential growth plans. Market rental rates have been rising faster than the annual rent escalations found in most leases. This trend is expected to continue as the office space demand continues to grow.
Vacancy and Rental Rates
Increasing demand for San Antonio office space has continued through 2016 with the citywide office space vacancy rate dropping to 18.0% from 18.5% last quarter. Rental rates have continued to rise steadily to an average of $21.79/sf for office space throughout the San Antonio market. This is up from an average $21.66/sf last quarter and $20.88/sf twelve months ago.
Additional Information
If you are interested in rental rates for a certain location or are seeking San Antonio office space for lease, please contact us with your requirement.
Information in this San Antonio Office Market Report has been obtained from sources deemed reliable. While considered accurate, we make no guarantee, warranty, or representation about it.