REOC: San Antonio 2Q 2015 medical office market
SAN ANTONIO – The medical office market closed the quarter with a citywide vacancy rate of 19.5 percent — unchanged from last quarter but softened compared to 17.5 percent recorded 2Q 2014, in part, to the addition of nearly 200,000 sf of new inventory over the past 18 months.
The cost of renting medical office space stepped up $0.24 compared to 2Q 2014 to close the quarter at a citywide average rate of $24.05 per sf per year on a full-service basis which marks a modest annual increase of only 1 percent.
Increased vacancy and flat absorption combine to limit rental rate growth. Pre-leasing success in buildings such as Inwood Medical Office (20,887 sf) and Rogers Rd. Medical Plaza (32,390 sf) will bolster absorption figures in third quarter.
| All Types | Citywide | CBD | Non-CBD | |||
| 2Q 2015 | 2Q 2014 | 2Q 2015 | 2Q 2014 | 2Q 2015 | 2Q 2014 | |
| Inventory | 6,879,450 | 6,662,911 | 1,059,393 | 1,012,037 | 5,820,057 | 5,650,874 |
| Available | 1,339,748 | 1,167,178 | 142,553 | 82,960 | 1,197,195 | 1,084,218 |
| Vacant | 19.5% | 17.5% | 13.5% | 8.2% | 20.6% | 19.2% |
| Average rent | $24.05 | $23.81 | $20.23 | $20.78 | $24.74 | $24.35 |
| 2Q absorption | 1,874 | 72,376 | 18,902 | -900 | -17,028 | 73,276 |
| YTD absorption | -18,674 | 146,170 | 12,262 | -900 | -30,936 | 147,070 |
*Statistics based on all multi-tenant medical office buildings 20,000 sf and larger excluding single-tenant, owner-occupied and government buildings.
Source: REOC San Antonio
Click San Antonio Market Research, San Antonio NewsTalk for more quarterly reports.
You might also like
TG Magazine
Check out the latest issue of our flagship publication.