Transwestern: Office Absorption Falls, As Do Vacancies

Net absorption for the San Antonio office market during Q1 2017 was in the red, totaling -15,301 square feet, compared to the 308,000 square feet of positive net absorption at the end of 2017. According to data from Transwestern, the pause in absorption was due to several large and long-expected space givebacks among Class B (-43,751 square feet) and Class C (-13,452 square feet) space. The rolling, 12-month citywide total net absorption was 984,046 square feet.

Meanwhile, Tranwestern noted that San Antonio’s overall vacancy rate continued its decline, ending up at 14.7% at the beginning of 2017. Vacancy stood at 15.7% at the end of 2016.

Meanwhile, new construction set a record in Q1 2017, with a total of 1.2 million square feet across eight buildings, and a pre-lease rate of 30%. Major projects include the Frost Tower in the CBD, Port San Antonio’s Project Tech, and Farinon Business Park’s Buildings 2 and 3.

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