NAI Partners: San Antonio Office Market Report 2Q 2016NAI Partners: San Antonio Office Market Report 2Q 2016https://www.recenter.tamu.edu/news/newstalk-texas/?Item=140372016-08-04T05:00:00Z2016-08-04T18:40:00Z

​SAN ANTONIO - In second quarter 2016, net absorption was 232,000 sf, a demand for office space that is within the range of historic 2Q 2016 performance. 

However, leasing activity in 2Q 2016 was just 368,904 sf, significantly lower than historic 2Q performance.

Office supply, as measured by vacancy and availability, remained steady, with availability at 20.7 percent and vacancy at 15.8 percent. 

Deliveries in 2Q 2016 were 58,712 sf, a decrease of 81 percent quarter over quarter and a decrease of 40 percent year over year, with 391,000 sf under construction. 

Declining leasing activity suggests that coming quarters will see lower net absorption, as net absorption lags behind leasing activity.

Economic Overview

While the overall economic outlook has again declined for Texas as a whole, San Antonio continues its push forward in economic expansion with another strong quarter. 

Brexit has increased volatility in financial markets, but could lead to increased CRE spending in U.S. as investors shift from Central London. 

The oil and gas downturn is now manifesting throughout much of Texas, but San Antonio seems to be remaining stable. 

Job growth in San Antonio was a strong 2.3 percent annualized and the San Antonio Business-Cycle Index continues to show expansion at 5.4 percent.

NAI Partners
San Antonio-New Braunfels

​See 2Q 2016 San Antonio Office Market Report​ by NAI (full PDF)​.

Want more? Check out San Antonio Office Market Research​.​

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