Asking rents ended the first quarter of 2018 at $22.01- an all-time high. With a population growth of 2.0% last year, San Antonio’s economy continues to grow. Most recently, job growth increased at a 2.9% annualized rate over the three months through February, with the greatest job growth seen in manufacturing, mining and construction.
Total vacancy rates for office space in San Antonio remained flat but saw a slight rise of .1% since Q1 of last year. While total vacancy remained flat, the Central Business District saw vacancy rates shrink to 8.4% leaving approximately 2.5 million sq. ft. of Class A inventory.
Exciting new additions are heading to San Antonio’s downtown district. The most anticipated of these, Frost Tower, will be the first high rise office building since 1989. With Frost Tower leading the way perhaps more high rise office expansions will follow for San Antonio’s growing downtown market.