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San Antonio Finding Stability in Retail

SAN ANTONIO-Strip out the Albertsons impact and San Antonio posted to the positive with 120,000 sf of retail absorption. Still, the grocer's retreat can't be ignored. It pulled occupancy to 85%, two reports concur.

By Tim Green | Updated on September 15, 2002

SAN ANTONIO-Had it not been for Albertsons exiting the San Antonio market in the first half of 2002, the city’s retail real estate market would look a bit healthier, according to surveys.

When the Boise, ID-based national grocery chain abandoned San Antonio in April (it exited Houston at the same time), it left 1.3 million sf empty. The departure cut San Antonio’s retail occupancy to 85% at midyear from 86.2% at the end of 2001, according to San Antonio’s REOC Partners. That’s despite the quick hand of H-E-B picking up five stores with a total of 411,000 sf, which are to open soon under the company’s red banner.

Nine Albertsons’ stores, totaling 528,000 sf, in retail centers remain vacant as do five stand-alone stores. The stand-alone stores don’t figure in occupancy calculations, but contribute to weakness in the market “by adding vacant space which also must be absorbed,” said Kim Gatley, REOC’s director of research.

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