Marcus & Millichap: San Antonio office vacancy to tighten this yearMarcus & Millichap: San Antonio office vacancy to tighten this yearhttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=161122017-03-21T05:00:00Z2017-03-21T19:00:00Z

​​​​​​​SAN ANTONIO – Local office vacancy will tighten this year as new construction slows down, reports Marcus & Millichap in its latest market update.

"Tightening vacancy, rent gains attract investors to San Antonio," according to the report. "Steady hiring and a positive outlook for the metro’s office market are keeping investor interest elevated. Private local buyers are dominating deal flow, targeting office properties in the $1 million to $5 million range. Initial yields for these assets typically run from high 7 percent to low 8 percent. Strong absorption trends are also drawing a number of REITs and institutional funds to the market."​

Among the firm's projections for the remainder of the year:

  • Total employment will rise by 19,000 workers, including 3,200 office positions.
  • Builders will bring 200,000 sf of space online this year compared with 700,000 sf last year.
  • Vacancy plummeted 170 basis points last year, and a decline in 2017 pushes down the rate to 11.5 percent.
  • Tightening vacancy will spur healthy rent gains, raising the average rent to $20.89 per sf. Last year the average grew 2.1 percent.
  • Limited new construction bodes well for area office properties as vacancy declines and rent growth strengthens.
Marcus & Millichap Real Estate Investment Services
San Antonio-New Braunfels
Read more at {Source}

 Search NewsTalk Texas