Retail Occupancy is Down 60 BPS Y-O-Y
San Antonio retail occupancy is at 94.1 percent, down 60 basis points from this time last year. Of the 1.1 million square feet currently under construction, the availability rate stands at 32.5 percent, according to a recent report from NAI Partners. Year-to-date through May, the San Antonio retail market has recorded almost 500,000 square feet of leasing activity, comprised of both new leases and renewals, down approximately 15 percent from one year ago.
In addition, the net amount of square feet absorbed stands at positive 191,000 square feet, with new supply delivering 25 properties totaling 341,000 square feet to the market this year (at 80 percent occupancy). The average asking rate of renting retail space in San Antonio is at $16.60 per square feet on a triple net basis, down slightly compared to this time in 2020 at $16.80 per square feet.
One of the star attractions will be the upcoming 32-acre Lone Star District, to feature retail stores, offices, apartments and hotel rooms. The total cost of development will be around $596 million and is expected to create an assessed value of roughly $709 million, according to the city. The project will take place in three phases during the next decade.