CBD Demand Drops Office Vacancy Rates

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A building demand for office space in San Antonio’s downtown business district was one of the key drivers for a drop in vacancy rates to 12.7% in Q4 2016. And according to metrics from NAI Partners, vacancy continued falling in February 2017, while absorption climbed. Specifically, quarter to date direct vacancy was 12.3% in February (total with sublease was 12.6%), while total net absorption for the quarter to date was 53,707 (with sublet space, 37.447).

Asking rents didn’t budge much; in Q1 2016, direct asking rent was $20.72. In the quarter to date, direct asking rent was $21. Leasing transactions of note included USAA’s 100% occupancy of Vista Corporate Center and WestRidge Two at La Cantera.

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