SA retail market gears up, vacant spaces gobbled up

SAN ANTONIO – The state of the local retail real estate sector is "gearing up," according to Kim Gatley, vice president and director of research for NAI REOC San Antonio. Developers are on track to add approximately 250,000 sf of multitenant space to the retail market over the course of 2013.

Although this number is a record low for the market for the past five years, it does not take into account the number of new Walmart Supercenters that have either opened or are slated to open before year’s end. Adding in those projects would bring the new development to around 830,000 sf, according to The Weitzman Group and Cencor Realty Services.

The rate at which vacant spaces in existing centers are getting “gobbled up” by retailers is another good sign that demand is picking up, Gatley adds. The current vacancy rate of the retail market is 10.6 percent, as of second quarter 2013.

Newcomers like Sam Moon Trading Co., Gander Mountain, and discount retailer Burke’s Outlet are entering in those spaces that have been left behind. New restaurants continue to pop up as well, according to The Weitzman/Cencor report.

See Texas Snapshot: Retail Report Mid-Year 2013 by The Weitzman Group.

For more San Antonio retail stats, see San Antonio Market Data Sources.