San Antonio Medical: Vacancy Up, Absorption Down

Medical space absorption in San Antonio continued on a negative trek in Q1 2019. According to metrics released by NAI Partners, absorption for the quarter clocked in at -94,000 square feet. The previous run of positive net absorption lasted five consecutive quarters, from Q3 2017-Q3 2018. Absorption was at 175,429 square feet in the first quarter of 2018; by the end of the year, in the fourth quarter, absorption was -99,026 square feet.

Meanwhile, NAI Partners’ research noted that the vacancy rate for Class A and Class B medical office and properties stood at 16.8%, a 90-basis-point quarter-over-quarter increase, and a 220-bps increase year over year. Occupancy in Q1 2018 was at 14.2%, and in Q4 2018 was 15.9%.