Save the drama for your mama, not San Antonio MOBSave the drama for your mama, not San Antonio MOBhttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=116082016-01-05T06:00:00Z2016-01-05T20:00:00Z

​SAN ANTONIO - There has been plenty of drama in San Antonio's medical office market over the past six months, but even with a few bumps in the road, it sailed through third quarter 2015 as stable as ever.

According to REOC's latest medical office market report, the citywide vacancy rate stayed below the 20 percent mark, closing out the quarter at 19.5 percent. 

While that is a 1.1 percent increase from the same period last year, the $0.70 increase in rents indicate the market is as strong as ever.

By the end of 3Q 2015, the citywide average quoted rent for medical-only space rose to $24.49 per sf. 

The leading submarkets were the Far North Central and Far West, which posted average rents at $29.41 per sf and $29.89 per sf, respectively.

But that is not to say it has not been tested.

When Victory Hospital declared bankruptcy this past June, there were plenty of concerns about what would happen with the Northwest San Antonio property. 

However, those were eased once Post Acute Medical affiliate Cumberland Surgical Hospitals LLC signed on to fill the 82,316-sf space.

Over at the $90 million Forest Park Medical Center (FPMC) — another bankrupt hospital facility located around the I-10 and Loop 1604 intersection — a proposed sale of the facility has hit a snag​. FPMC says it has a buyer for the Forest Park Medical Center building, but that Texas Capital Bank has neither accepted nor rejected the offer​, according to the January 4, 2016 edition of the ​San Antonio Express-News​​.

The REOC report found that, despite those headlines, the multitenant, medical-only office market remained true to its slow and steady reputation. 

Vacancy rates are expected to soften a bit given the volume of new developments slated to hit the market next year, but when all said and done, healthy preleasing will help to boost positive net absorption in the market.

San Antonio Business Journal
San Antonio-New Braunfels

​See REOC San Antonio for industrial, office, retail and MOB​​.

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