Real estate construction projects have slowed down quite a bit, and there’s a perfectly good reason why; builders and developers are simply trying to fill up the space that they have already built. Which means that office and retail space in San Antonio is both abundant and reasonable. For leasers, this may be a prime opportunity to snag a great office space lease, and for developers, it may be a time to get businesses into their spaces.
Although the San Antonio commercial real estate market is strong, particularly when compared to other areas of the country, many developers are nonetheless looking forward to getting construction up and running once again; and to do that, they must first lease the vacant space they already possess.
Building Remains Stagnant, Leases in the Limelight
Currently, many office space developers are negotiating new leases with their clients instead of looking for more construction opportunities. And, considering that San Antonio continues to thrive in terms of new residents – 26,000 new residents moved into San Antonio from July 2007 to July 2008 alone – developers and builders of both retail and office space can look forward to continued activity. The San Antonio commercial real estate market, according to most industry analysts, will remain rather flat during the second half of 2009, although 2010 is expected to bring a new influx of commercial activity. Builders and developers, in the meantime, will play it safe by attracting new tenants into their commercial spaces.
Office vacancies reached 19.1 percent in the first quarter of 2009, while retail vacancies hovered around 13.8 percent during that same period. Because of San Antonio’s influx of commercial space, many business owners looking to lease space in San Antonio may be even more encouraged to make the move. Buying and selling commercial property is still at a stand-still, and will likely remain that way for the remainder of 2009, but for those interested in leasing commercial space, now may be the time to make a move.