The Good, The Bad, The Ugly of Office Space in San Antonio

June 21, 2011

Office rents have been OK the past couple of years, with declines only with a few desperate owners and other holding fast. Vacancies have not been terrible but have increased. But we have Nu-Star Energy building their own new building, and likewise Nationwide Insurance and KCI. So in the next year there will be 500,000 square feet of new vacancies created by these new buildings. So large blocks of space will be available. That is good for 1) companies from outside San Antonio that are looking for space to move here, as they usually take a lot of space. And for leasing agents that handle these tenants. It is Bad for the owners, bad for these buildings and bad for owners of competing properties who will feel downward pressure on rents. Can’t please everyone. Brokers are praying for another AT&T to move to town. But with Uncertainty the word of the day, don’t expect corporate reallocations. But there is lots of activity from the Eagle Ford Shale.

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