San Antonio’s Retail in Demand
- Apr 07, 2015
According to research data provided by REOC, San Antonio’s retail market saw a positive Q4 2014, yet a quiet one, with a vacancy rate of 9.4 percent. The rate remained steady compared to the previous quarter, but improved compared to the 10.3 percent recorded in Q4 2013.
Citywide average asking rental rate decreased by $0.05 from the previous quarter and settled at $16.60 per square foot, the same amount that was registered in Q4 2013. The citywide Neighborhood Centers ($15.66/sf NNN) posted an increase relative to last year’s average rate of $15.45/sf NNN, while Community Centers reported a decrease from the previous year’s rate of $19.79/sf NNN, ending the quarter at $19.31/sf NNN.
The excess retail space across the city was steadily absorbed by demand. In Q4 2014 retail properties experienced 52,317 square feet of positive net absorption, raising the year’s total to 566,917 square feet–a decrease compared to Q4 2013, when the market absorbed 164,904 square feet of space, but a solid increase compared to 2013’s total net absorption of 391,862 square feet.
In terms of retail space development, San Antonio is far from pre-recession levels, with most of the newly constructed retail space designated towards food-centered activity such as grocery stores and restaurants. Q4 notable completions include Forum Pointe with 69,978 square feet in the Northeast sector and Sonterra Village with 45,000 square feet in the Far North sector. Around 361,000 square feet of retail space are currently under development, such as The Rim with around 260,000 square feet of space scheduled to be completed in the first quarter of 2015.