The downturn in the national economy has forced many businesses to close offices or to downsize current operations. Even the San Antonio office space market has felt the pinch and has lost a few major players in the commercial sector. Luckily, there have been other businesses ready and willing to step in and take over much of this vacated office space. Some of the largest office buildings occupied by corporate giants such as AT&T have seamlessly transitioned to new lease holders who are drawn to San Antonio’s economic stability.
Office Rentals Drop a Class
There are four classes of office space available to lease:
- Class A – Situated in the best locations, these offices offer quality and prestige. Many come with great amenities. These office spaces generate the most money per square foot in leases.
- Class B – These buildings may be second-generation leases, or may not quite offer the amenities or location to demand the highest rents.
- Class C – Visually acceptable buildings with few to no amenities, located in less prestigious areas.
- Class D – Normally in poor physical condition and located in the least desirable locations.
Recent trends in the San Antonio office space market show that leases in new construction are slowing, while second generation leases are becoming more popular. These allow tenants to lease in prime locations and maintain their image at lower costs.
San Antonio’s Successes Gain National Attention
While many companies slash jobs and close offices in other parts of the country, many businesses in San Antonio continue to grow. USAA’s announcement that it will expand operations in San Antonio is a boon to the local economy. New jobs will bring more residents and, along with them, and increased need for services. Such activity will fuel both the San Antonio office space markets and the housing market. Some analysts are expecting San Antonio to see more of this type of growth through 2009 and beyond as the city gains increasing national attention for its stable economy and lower than average unemployment rates.
Before, many corporations would overlook San Antonio for expansion. Now, they are now looking to the Alamo City as a feasible possibility. A low cost of living means a better opportunity for businesses in San Antonio to remain profitable, and for their employees to enjoy a high quality of life.