San Antonio Retail Update: Q&A with Weitzman’s Marcus Shaffer

Weitzman’s year-end report for San Antonio’s retail sector showed an increase in occupancy, along with a notable decline in space, especially when compared to the previous decade. Marcus Shaffer, senior vice president with Weitzman’s San Antonio office, discussed the current market, the boost in building, and forecast for 2020.

Q. What are we seeing in the San Antonio retail sector at this time?
A. San Antonio’s retail market reports 94.5% occupancy, a healthy rate thanks, to steady retail demand and new tenancy for some of the market’s larger vacant spaces. For example, Burlington and Conn’s absorbed former Toys R Us spaces, and Bed Bath & Beyond and two other junior anchors backfilled a former Sears space. Retail demand, coupled with conservative construction, has helped boost occupancy in our existing retail centers.

Q. What do you mean by conservative retail construction?
A. We looked at the past 10 years of construction from 2019, and compared it to the previous decade’s totals. From 2000-2009, the market added 17,658,300 square feet. During this most recent decade, from 2010 to 2019, the total dropped by nearly 11 million square feet to a 10-year total of 6.7 million square feet. That’s one reason occupancy is up by nearly 5 percentage points compared to 2009.

Q. What do you expect for 2020?
A. San Antonio has always been a steady-as-she-goes market, and we expect to see that stability continue this year. We’ll see several active retail projects, like the IKEA-anchored Live Oak Town Center, add new phases, as well as a handful of new projects. Overall, we expect another healthy year.

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