Market Trends
Vacancy rates drop as demand remains high
Demand for San Antonio office space has continued to grow throughout 2016. According to the Texas Workforce Commission, the San Antonio Metropolitan Area has created over 18,100 non-farm related jobs over the past year. Unemployment rates remain low throughout the city at 3.9%.
As demand for San Antonio office space continues to increase, the tight leasing market makes great office lease deals hard to find. This 4th 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 nearly 400,000 square feet of office space since last quarter. The Northwest San Antonio office space submarket recorded the most absorption, with a total of over 215,000 square feet of office space being absorbed. With the ever growing demand, rental rates for San Antonio office space have been steadily increasing. The current asking rates are now approximately 3.5% 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 that you are comfortable with. Market rental rates have been rising faster than the annual rent escalation clauses found in most commercial leases. This trend is expected to continue as the demand remains strong and the city continues to grow. It is important to plan for future growth needs though.
Vacancy and Rental Rates
Growing demand for San Antonio office space has continued through 2016. The citywide office space vacancy rate has dropped to 15.6%, which is a significant change from 16.9% at this time last year. Office space rental rates have increased to an average of $23.39/sf for office space throughout the San Antonio market. This is up from an average of $23.34/sf last quarter and shows a steady increase from the $22.58/sf twelve months ago.
Additional Information: San Antonio Office Market Report Q4 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 Q4 2016 has been obtained from sources deemed reliable. While considered accurate, we make no guarantee, warranty, or representation about it.