CBRE: San Antonio office market's growing painsCBRE: San Antonio office market's growing painshttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=127482016-04-12T05:00:00Z2016-04-12T20:00:00Z

​​​SAN ANTONIO - Everyone knew it was coming, but now that rents are dipping and vacancy rates are bubbling up, it's clear that San Antonio's office market is having some growing pains.

In first quarter 2016, four projects added more than 320,000 sf. And with another 513,323 sf in the pipeline, the market is catching up with some of its growth as it heads toward becoming a higher quality market.

According to CBRE's San Antonio 1Q 2016 Office MarketView report, the amount of space delivered in 1Q2016 is nearly 50 percent of the total delivered throughout all of last year.

While that primes this year to be one of the most active in terms of delivered construction, it also means that the market will need some time to adjust.

​​​CBRE found that the overall occupier demand is beginning to wane, posting the lowest first quarter positive absorption since 2009 with nearly 127,600 sf. And the addition of more than 280,000 sf of vacant new product boosted vacancy rates up to 16.8 percent.

The small dip in rents is largely attributed to properties making the shift from full-service to the triple-net rates typical for higher-end buildings. San Antonio's rental average actually increased $0.35 per sf to $17.31 per sf.

Speaking of higher-end buildings, nearly 100,000 sf of the quarter's positive net absorption was for space in Class A buildings, indicating tenant demand for upscale product in San Antonio is strengthening. Rents in those Class A buildings also increased by $0.21 per sf to $26.17 per sf.

San Antonio Business Journal
San Antonio-New Braunfels

​Visit CBRE 1Q San Antonio Office​, ​​Austin CBRE 1Q2016 and Houston CBRE 1Q2016​ for quarterly office data. Keep checking back. The Real Estate Center is gathering quarterly data as it becomes available.

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