As one of the fastest-growing metropolitan areas in Texas, San Antonio is a development-friendly city that attracts almost 70 people daily. Given the demand for more affordable, liveable living and working conditions, it’s no surprise that San Antonio has been ranked as one of the top ten U.S. office space markets most in demand.
The National Association of Realtors (NAR) identified San Antonio as one of the nation’s top 10 strongest office markets in the third quarter of 2021. Secondary markets like San Antonio have more demand for office space, given the relatively affordable residential and commercial prices in these markets, according to NAR’s September 2021 Commercial Monthly Insights Report.
NAR identified ten markets with the strongest office market conditions in the U.S. In alphabetical order, the markets are:
- Austin, Texas
- Boise, Idaho
- Chattanooga, Tennessee
- Daytona Beach, Florida
- Miami, Florida
- Myrtle Beach, South Carolina
- Omaha, Nebraska
- Palm Beach, Florida
- Provo, Utah
- San Antonio, Texas
NAR chose these top-ranked markets by comparing local indicators against national trends. Those factors include vacancy rate, 12-month net absorption, the year-over-year change in asking rent growth, leasing volume in square feet, the year-over-year change in business and professional jobs in the metro area, net delivered units over 12 months, sales transactions in dollars, transaction prices per square feet, and cap rate.
The San Antonio Business-Cycle Index expanded at its fastest rate over the past five years, with employment growth rising despite a shortage of employees. The commercial real estate sector in San Antonio is benefitting from job growth in industries such as construction, advanced manufacturing, aerospace and aviation, cybersecurity, financial services, healthcare, information technology, life science, military and defense, and new energy.
San Antonio is also benefiting from the strong growth in the nearby Austin market. The Alamo City has more affordable residential and commercial prices, a lower vacancy rate than Austin at 10.1%, and a faster office rent growth of 1.7% compared to Austin’s 0.5%. The average transaction price of office sales in the third quarter was $145/square feet, about a fifth of Austin’s, yielding a cap rate of 6.3%, about a percentage point higher than Austin’s.
The Alamo City’s low cost of living, high quality of life, and opportunity for business growth continue to position San Antonio, Texas, as a highly desirable place to launch or relocate your business.
Downtown San Antonio Office Brokers
If you’re thinking of moving to a downtown San Antonio commercial space for your business, we have a shortlist of experts specializing in our downtown business corridor (thanks to Ed Cross, who is retiring from commercial real estate).
Here’s who can help you with your search for a downtown office space in San Antonio, Texas.
Office leasing experts representing tenants, not landlords
- Steve Garza, owner of Providence CRE
- Dawn Hamilton of SACA
- Jeff Miller at JLL
- Gardner Peavy, managing director of CBRE – San Antonio
Brokers who represent buyers and sellers in investment real estate deals
The featured photo is of downtown San Antonio. Photo by Matthew LeJune on Unsplash.