Although the San Antonio office market struggled through a good portion of 2013, it was able to end the year with some positive news. During the first half of 2013, the San Antonio office market had about 300,000 square feet of positive net absorption, but that pace slowed into the second half. The slowdown was caused by job losses in industries connected with office markets. In the fourth quarter however, new leases and expansions by existing offices created 34,509 square feet of positive net absorption for a total gain of 325,994 square feet through 2013. New office space developments helped bring the net absorption rates lower with almost 287,000 new square feet of office space entering the market through the year. This in turn pushed the vacancy rate up from 18.8% to 19.5%. Class-A office space rents dipped $0.10 per square foot to $23.25, while the average full-service rental rate rose by $0.13 to $19.72.
image courtesy of John Tedesco