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Class B Office Gains in SA as Overall Market Softens
Although San Antonio’s office market overall experienced another quarter of negative absorption during the third quarter, the Class B market closed the quarter on a high note, CBRE reported. Class B product saw an 80-basis point decrease in vacancy and a $0.57 per-square-foot increase in average FSG asking rates quarter-over-quarter.
On the other hand, the Class A vacancy rate rose from 13.1% to 14.4% quarter-over-quarter. Additionally, Class A product registered over 157,000 square feet of negative sublease absorption in Q3. This was primarily due to USAA vacating Vista Corporate Center, where the Fortune 500 company occupied the entire 157,470-square-foot building.
On the bright side, the unemployment rate in the San Antonio-New Braunfels decreased significantly, from 13.3% in April 2020 to 8.0% in July 2020, showing positive signs that employees are returning to work and business activity is picking up.
Pictured: Vista Corporate Center.
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- ◦Economy
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