For the third consecutive year, the San Antonio office market has posted positive net absorption, with 685,675 square feet through the year (the highest since 2006). While positive net absorption was strong, vacancy rates did rise somewhat, moving from 17.8% in the third quarter of 2014 to 18.3%. This rise was caused by new offices coming online as well as some shifts by large tenants – the UT Health Science Center vacated a 45,324 square foot space and UTSA vacated 11,168 square feet, as both worked to move operations to space they already owned.
There was quite a bit of activity in the construction side of the San Antonio office market, with 250,000 square feet launched in 2014 and over 900,000 square feet currently in differing stages of development. Reports are that nearly 260,000 square feet of that has already been preleased (nearly 30% of current construction), so 2015 should provide some good movement in the absorption rates as well.
image courtesy of amboo who?