San Antonio Retail Rates Stabilize After Growth Surge

SAN ANTONIO-Retail rental rates in San Antonio are beginning to level off for the first time in a number of quarters, according to a survey by the Weitzman Group’s San Antonio office. The 30.9 million sf of retail space here has an occupancy rate of 85.2%, with the highest concentration of vacancies in the northeast corridor. Rental rates currently range from $9.51 per sf in the southwest sector to $13.88 per sf in the north central corridor. Rental rates, Weitzman’s director of research Cale Hahn tells GlobeSt.com, are moderating.

“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.”