August 11, 2017
San Antonio’s medical office market was on a “steady and positive” pace, according to a Q2 2017 report released by REOC San Antonio. The citywide vacancy rate among 7.2 million square feet of medical office space stood at 20%, unchanged from the 20.1% reported at mid-year, 2016. New inventory offset positive absorption.
Additionally, “average rental rates are on the rise, but more so due to the impact of increased operating expenses than demand,” explains Kimberly Gatley, senior vice president and director of research for REOC.
Also trending has been a spillover of medical-related tenants into non-medical facilities. Vighter Medical Group leased 4,464 square feet at the Sir Winston Office Complex, while Stone Oak Therapy took 3,440 square feet at Brookhollow Office Park, both of which are non-medical office buildings. Additionally, Results Physiotherapy leased 2,500 square feet at Shops at Lincoln Heights, a retail center.
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