As of early 2010, some 220,000 square feet of San Antonio office space comprising nearly 19 percent of available office space in the city remains vacant, posing a serious problem for commercial property owners.

Curiously, the per square foot cost of renting office space in San Antonio has increased some 17 cents per square foot since the last quarter of 2008, to a median cost of $20.41 per square foot as of this writing. However, under current market conditions landlords frequently will make concessions to a prospective tenant that may offset some of the rental cost.

An upturn in the nation’s economy coupled with the city’s friendly business climate and the commitment to San Antonio shown by such companies as Wells Fargo and the Tesoro Corporation, among others, bode well for the future of commercial property owners in San Antonio.

Certainly, when the office space glut in San Antonio is finally resolved, lenders will have to loosen their presently tight grip on credit so that new development can continue to provide the office space needed for future growth.

Leasing Office space

Leasing office space, particularly for a small company, deserves considerable thought and planning as well as expertise in negotiating with the landlord. The importance of knowing what will best suit your needs, budgetary constraints and requirements, both for the present and future, will unquestionably have a major impact on the profitability of your business.

Office space planning, negotiating a lease that will allow for future expansion or sub-leasing, and many more details should be undertaken by experts such as an interior designer, real estate attorney, etc. in order to obtain a lease that will provide the most short and long-term benefit.

No question the recession, as it has affected San Antonio. is showing definite signs of easing. Home prices, though slowly rising in appreciation are still affordable, and unemployment figures are slowly dropping.

As to foreclosure sales in San Antonio as of the latest statistics available at this time –and subject to continuous fluctuation- there are 4,401 foreclosures on the market offered at a median price of $93,738, down 0.8% from February.

The Foreclosure Process

• Pre-foreclosure: In pre-foreclosure the bank has served notice that the mortgage is in default, and the borrower is given a specific time to bring the mortgage payments up to date or face eviction and loss of the property (foreclosure.) During this time the property owner still has time to “cure” the default or enter into negotiations with a buyer. If the owner has sufficient equity in the property, the buyer may be able purchase the property from a “motivated” seller at a considerable discount

• Public Auction: Foreclosed property purchased at public auction can offer real bargains and real risks as well, unless the potential buyer has had a chance to title search, examine the property condition, etc. Public auctions can be tempting for would-be investors, but unless one has the knowledge and experience required there can be many pitfalls.

• Properties repossessed by the bank (REO) due to a mortgage default are resold to recover the loan amount due. These properties generally will have needed maintenance and repair and title clearance taken care of by the lender. Although not always the rule, REOs can sometime be purchased as a “short sale” meaning the property is offered for sale at a lower price than the amount still owed the bank. Negotiation outcomes are variable, depending on the particular property and prevailing market conditions

A multipurpose building project for Texas A&M University-San Antonio was approved on Friday, March 26th. The project is scheduled to begin in April, and planned for completion by July, 2011.

The building will occupy 700 acres of land between Zarzamora and Moursund Roads on the south side of Loop 410. The 91,000 square foot building will house the University library, the bookstore, student services, classrooms, faculty, administrative offices, a computer center, labs, and a food service facility.

Despite a slowly recovering economy, San Antonio expects to see a moderate increase in new construction (about 6 percent) in 2010, mostly public works and utility projects.

• More Real Estate Happenings Around Town

• Fort Sam Houston: A multimillion dollar contract has been awarded to the M.A. Mortenson Construction Company (based in Minneapolis) to build a new headquarters building at the Fort for the Army Installation Management Command (IMCOM).

• The San Antonio Shopping Center: Dating back to the 1950’s the San Antonio Shopping Center, located on El Camino Real, at San Antonio Road is one of the largest of its kind in Mountain View, and long due for modernization. A modernization and expansion is scheduled for startup in June or July, 2010. The project was awarded to the San Francisco based developer Merlone Geier Partners, and is expected to generate some 700 construction jobs and about 600 permanent jobs after its expected completion in a year to year-and-a-half.

• The coming summer should see the grand opening of two high-profile luxury condominium projects in San Antonio; the Broadway, located at the corner of Hildebrand Avenue and Broadway, adjacent to Alamo Heights, and the Alteza, atop the Grand Hyatt in the heart of downtown. These super luxury condo homes will range in price from approximately $300,000 for a one bedroom, to over three million for a penthouse

The San Antonio commercial real estate market, despite the upward momentum of the residential real estate market, is still struggling through the foreclosure mess. Unfortunately, the San Antonio commercial real estate market still makes up a large section of the San Antonio economy.

Where are the New Commercial Construction Projects?

Because the San Antonio commercial real estate market continues to decline due to the number of foreclosures, the number of new commercial construction projects continues to struggle. However, amidst all of the problems surrounding the slow rate of new commercial construction projects and the tight lending standards that have inhibited builders from starting new construction jobs, the medical industry has come to save the day.

Medical Industry comes to the Rescue

The $16 billion-a-year medical industry, which makes up a good portion of San Antonio’s economy, has allowed many commercial construction projects to move ahead, despite the tight lending environment.

The reason for this may lie with the fact that most lenders see the medical industry in the San Antonio commercial real estate market to be quite low risk. In fact, many lenders view construction for the medical industry to be less risky than other publicly funded projects.

Even with lenders turning a deaf ear to new commercial construction projects, doctors and developers have been able to make deals with the lenders to build necessary medical space. It doesn’t hurt, either, that most doctors have great credit.

The Medical Industry gets the Green Light from Lenders

Many lenders in the San Antonio commercial real estate market are requiring builders and developers to have minimum occupancy and equity requirements for new projects; however, if doctors have tenants lined up, lenders seem willing to let these requirements pass.

In addition to giving the green light for medical industry construction, lenders have also begun to offer very attractive and competitive loans.

As a result, the health care industry in the San Antonio commercial real estate market continues to grow, even as the commercial real estate industry otherwise continues to struggle.

In addition, the nation expects that under Obama’s new healthcare legislation millions more people will be able to obtain health insurance, thereby increasing the need for new medial space.

The Alamo Heights real estate market is healthy and active, and it seems as if the worst of the housing slump is behind us. Interest rates are low, home choices are plentiful and real estate prices remain low. So, what are you waiting for? Isn’t it time you found yourself a little piece of the Alamo Heights real estate market?

Many renters grapple with the decision to buy; and, let’s face it, buying isn’t for everyone.  However, for many renters, it just makes good sense to purchase a home in the Alamo Heights real estate market. And here’s why:

1. A home offers you pride in homeownership – Many homeowners state that they purchased their first home so that they can enjoy a better quality of life. Along with a better quality of life comes pride in homeownership. In short, there’s something inherently satisfying about purchasing your own home. The pride and enjoyment many people get out of owning a home is a large factor when choosing to purchase instead of rent.
2. A home is an investment – Sure, we’ve all heard our share of horror stories from the near collapse of the national housing market, but the reality is that a home is still one of the best investments you can make. If you purchase a home now in Alamo Heights and stay put for a few years, you will likely see an excellent return on your investment.
3. A home can provide you with tax savings – Many people don’t realize just how much you can save on taxes from mortgage interest alone. If you purchase a home with a mortgage payment of $1,000 a month and you fall into the standard 28 percent tax bracket, you can look forward to saving over $3,000 on your annual income taxes.
4. A home can provide you with freedom and privacy – The privacy you can enjoy owning a home is often a big determining factor for many renters. In addition, your home is unlike any leased property, as you enjoy the freedom to make any changes you want, without asking for anyone’s approval.

There are plenty of fantastic downtown San Antonio condos from which to choose. And, let’s face it, one is better than the other in terms of amenities, service and features.

Along with owning downtown San Antonio condos, many condo owners belong to condo associations. Many higher end properties have condo associations in place for their residents, thereby allowing the building and its residents to pay someone to manage and care for the property.

If you are interested in purchasing one of the downtown San Antonio condos, you may wonder what exactly is involved with belonging to a condo association. Here are just some of the advantages of owning a property that is managed through a condo association:

• A condo association takes the pressure off of maintaining and repairing the building and its common grounds. Instead, residents of downtown San Antonio condos that are under a condo association enjoy the convenience of leaving all of the building maintenance and upkeep to the professionals.
• A condo association can work in one of two ways: it can be professionally managed by a cooperative of owners associations or it can be managed by the resident, who simply reports any issues to the condo association.
• A condo association enforces the rules and bylaws of the condo community or building, thereby maintaining property values and the enjoyment of all the residents.
• A condo association can increase your property’s value, as buyers will appreciate the value of a professional organization maintaining the property.
• A condo association provides consistent and professional service for everything related to the building and common grounds. From the community swimming pool to the landscaped grounds, a condo association ensures that all aspects of the condo community or building are taken care of, thereby allowing residents to lead a truly maintenance-free lifestyle.
• A condo association may provide an added sense of security, as it will enforce all bylaws of the condo association, thereby eliminating potential problems before they begin.
• A condo association because it sets rules and creates a high standard for the community in which it is located, the property values remain high and the residents enjoy the benefits of a beautiful condominium community.