Market Trends
Rental rates continue to rise as vacancy remains stable
Demand for San Antonio office space has continued to grow throughout 2016. Thankfully Texas as a whole is doing well, even with the current oil slump. According to the Texas Workforce Commission, the State of Texas has added over 170,000 jobs in the past year. Over 25,000 of these jobs were created in the San Antonio statistical area.
With the increasing demand for San Antonio office space, the tight market is making great office lease deals harder to find. This 3rd Quarter San Antonio Office Market Report newsletter is distributed as a means of informing our clients and commercial tenants about ways to save time and money during the office leasing process.
The San Antonio office space market has absorbed over 150,000 square feet of office space since last quarter. The North Central San Antonio office space submarket recorded the most absorption, with a total of over 50,000 square feet of office space being absorbed. Due to the ever increasing demand, rental rates for San Antonio office space have been steadily increasing higher. The current asking rates are now over 4% higher than they were at this time last year.
If you are seeking San Antonio office space for lease, it may be in your best interest to sign the longest lease term which you are comfortable with. Market rental rates have been rising faster than the annual rent escalations found in most leases. This trend is expected to continue as the city continues to grow. You’ll want to be sure to not limit your future growth plans though.
Vacancy and Rental Rates
Growing demand for San Antonio office space has continued through 2016 with the citywide office space vacancy rate remaining steady at 18%, which has been fairly consistent since this time last year. However, office space rental rates continue to rise steadily to an average of $23.15/sf for office space throughout the San Antonio market. This is slightly up from an average $23.08/sf last quarter and a more significant increase from $22.18/sf twelve months ago.
Additional Information: San Antonio Office Market Report Q3 2016
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 Q3 2016 has been obtained from sources deemed reliable. While considered accurate, we make no guarantee, warranty, or representation about it.