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SA Office Vacancies Drop 90 BPs in Q4
San Antonio’s office market finished 2018 strong, with a 90-basis-point drop in the vacancy rate during the fourth quarter, CBRE reported. Thanks to 289,105 square feet of positive absorption during the quarter, the Alamo City ended the year with a vacancy rate of 14%, compared to 15.8% at year-end 2017, while Class A vacancies fell to 8.8%.
“There is an increased demand for premium space in the market,” as Class A product was absorbed during Q4, according to CBRE’s market forecast. “Nearly 700,000 square feet of office space under construction is pre-leased across San Antonio.”
In particular, the Pearl Office Towers (pictured), which broke ground in Q3, experienced over 272,000 square feet of pre-leasing activity two years ahead of their Q3 2020 delivery date.
The highly-anticipated Frost Tower in the CBD is scheduled to deliver in the first quarter of this year. The 460,000-square-foot property broke ground in March 2017.
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