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.
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