Texas is expected to lead the nation’s economic turnaround, beginning with slow and steady growth in 2010, and San Antonio is at the heart of this positive economic development. The San Antonio commercial real estate market will benefit as businesses and manufacturing try to meet the needs of an influx of new residents. Luckily the San Antonio commercial real estate market has fared better during the nationwide economic downturn than the rest of the nation, due largely to experiencing steady job growth while other places were facing rising unemployment. As we approach 2010, experts expect the overall economic health of San Antonio to improve, which will only serve to strengthen the San Antonio commercial real estate market.
New Businesses Bring More Jobs and New Residents
Several new businesses are moving to San Antonio, creating jobs in an area that is already experiencing some of the lowest unemployment rates in the country. Meridian Solar Inc., a developer of solar projects, has served San Antonio from its offices in Austin. Due to increased demand for solar power in homes and businesses, Meridian Solar Inc. is opening a new San Antonio office that will produce many new jobs in the area.
BBVA Compass, a regional bank headquartered in Houston, will move its call center from Alabama to Texas, including a new call center in San Antonio. This will create 200 new jobs. Two new hotels franchised under Marriott have opened adjacent to the Rim shopping center. The combined total of 155 new hotel rooms will serve the increase in visitors to San Antonio and fuel the need for even more commercial space for retail and entertainment. This fall, San Antonio colleges and universities are reporting record attendance levels. Due to the growth in enrollment, Concordia University Texas is doubling the size of its campus to accommodate all of the new students.
Population Growth Fuels Need for New Commercial Space
As the demand for products and services grows, so will the demand for San Antonio commercial real estate. Industrial, retail, and professional businesses will strive to meet the needs of an increasing population, which is expected to be spurred by a rising housing market. It is estimated that Texas will realize a 4.5 percent growth in home sales over the next year, and San Antonio is among the most popular of all Texas cities for those who are relocating to the Sun Belt.