February 6, 2020
Companies issuing Q4 2019 figures for San Antonio’s office sector pointed to overall good news, thanks to continued employment and corporate growth throughout the Alamo City. CBRE, in fact, went so far as to issue the big-picture proclamation that “the past decade was one for the books in the Alamo City,” between population growth, East Side renovation and Lower Broadway’s growth spurring “the city’s first-ever Midtown.”
NAI Partners’ report focused on record-breaking rents, along with “over half (the) space spoken for” when it came to construction. CBRE concurred, noting “all property classes experienced positive momentum in Q4 2019,” and while rents dropped from the previous quarter, they increased year over year. JLL, in the meantime, pointed out that leasing was down quarter over quarter, partly “due to the delivery of the mostly pre-leased Frost Tower last quarter.” However, absorption finished out the year in the black, and exceeded the total from the year before.
CBRE’s outlook is for continued good things. “With San Antonio being one of the top cybersecurity hubs in the nation, big things are coming for downtown San Antonio. This means more jobs, more talent and more opportunities on the horizon.” JLL, meanwhile, is forecasting “leasing activity to remain steady and rental rates to continue their upward climb.” Furthermore, as construction on Class A product in Midtown comes to completion, it “can be expected to add to absorption as they are delivered with tenants in tow,” CBRE researchers said.
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