San Antonio charts 2Q 2013 medical office market

SAN ANTONIO – In spite of losing some tenants to other real estate sectors, the local medical office market ended second quarter 2013 on firm footing. San Antonio’s medical office market absorbed close to 60,000 sf between April and June, according to data compiled by NAI REOC San Antonio.

Average asking rents came in at $23.77 per sf for 2Q 2013 — up from $23.37 as of 2Q 2012. The vacancy rate for the sector was 16.8 percent — down from 19 percent in the year-earlier quarter.

Leasing activity by health care-related firms continues to “spill over” into the city’s general-office and retail properties, observes Kim Gatley, vice president and director of research for NAI REOC.

Because of this, the medical office market, like other commercial real estate sectors, continues to face a lending environment that is less-than-enthusiastic about new development.

Despite some lending challenges, the vital signs of the medical office market remain strong.

Read more at the San Antonio Business Journal. See 2Q 2013 entire Medical Report by NAI REOC San Antonio.