"We had a pretty significant upward climb for awhile that was a reflection of the demand in the market. We couldn't build space fast enough. We were talking about projects that were 90% pre-leased," Hahn says. "Now that those projects are developed, however, it's had an obvious effect on the rental rates in the market."

Hahn describes the coming months as "a dynamic time" in the San Antonio retail market. Over the next 12 months, the city will add between two million sf and 2.5 million sf of retail construction. That's an increase of 8.1% to the total market, which Hahn calls an "explosion of growth" in the San Antonio retail sector.

The Weitzman Group predicts the projects, especially larger projects such as Bandera Point and the proposed Palladium-Santikos Investments' proposed venture, will impact market rates. "I expect rental rates will increase in the short term for speculative space in many of these newer centers," Hahn says. "At the same time, the vacancy rates citywide are expected to increase, which will eventually level off rental rates." In the long term, Hahn expects rental rates to stabilize as vacancy rates citywide increase.