Increasing demand for more variety in San Antonio’s office market has finally been met, resulting in an influx of new construction and with it, higher vacancy rates.
But those aren’t expected to stick around for long.
According to REOC’s latest office market report, more than 263,000 square feet was added to the San Antonio market through three new office structures in the third quarter of this year. As a result of the new supply, the citywide vacancy rates ticked up from 17.5 percent last quarter to 18 percent at the end of September 2015.
However, due to explosive job growth and an increasing interest in companies planting roots in the San Antonio market, that vacancy rate is expected to turn right back around. REOC and the Xceligent Office Advisory Board, both of which surveyed more than 29.7 million square feet of office lease space for the report, expects recent job growth in the San Antonio-New Braunfels metro area to weigh down that rising vacancy. The increase of 35,000 jobs in the area over the past 12 months — an annual growth rate of 3.7 percent — will start to trigger jumps in the market’s occupancy levels.
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