SAN ANTONIO-Vacancy rose 5.9% while the average rent citywide dropped for the first time in a decade. The dark cloud hanging overhead this year is SBC's threat to exit 90,000 sf in the CBD, action that would boost the 7.4% vacancy in class A to 12%.

AUSTIN-John-William Fine Furniture & Interiors exits 8,160 sf at 8750 Shoal Creek Blvd. for 9230 Research Blvd. in the north central submarket. The five-year deal also puts the office and warehouse under one roof.

AUSTIN-Angelos Angelou, a noted local economist, says 2003 won't be the year of the turnaround. Office will be weak for several years. Industrial vacancy could climb another 5% to 20%. For now, retail and multifamily are where the gains are being made.

AUSTIN-The actuarial firm of Rudd & Wisdom signs for the long term at 9500 Arboretum Blvd., a 187,385-sf building in the northwest submarket. The firm will relocate from within the submarket in May.

SAN ANTONIO-One of two stores in San Antonio are under contract, with a closing expected in the spring. In Austin, two bidders are jockeying for another Target. All are being closed to make way for Super Targets.

KERRVILLE, TX-A championship golf course, hotel and conference center would be the focal points for the mixed-use development, which also includes 400,000 sf of retail plus single-family homes. Talks are underway with hotel and retail developers.

SAN MARCOS, TX-Grande Communications has secured commercial and multifamily accounts in the 328-acre La Frontera as part of a buyout of TXU Communications. Grande recently raised another $15.2 million in venture funding.

AUSTIN-Ryder Systems leases industrial space in Tech Ridge for its longtime customer, Applied Materials. The 290,578-sf building is 50% leased with the new deal, which puts Ryder in control of 288,000 sf in Austin.