The San Antonio commercial real estate market has certainly experienced its share of ups and downs over the past couple years. It feels rather good, then, to say that 2010 will go down as the year of the rebound for the San Antonio commercial real estate market. This was, by far, the major theme of the 2010 San Antonio/South Texas CCIM Real Estate Symposium, which was recently held at the J.W. Marriott at the San Antonio Hill County Resort and Spa.
Goodbye to 2009
Much of the talk at this year’s Symposium was saying good-bye to the dismal 2009 and looking at the gains experienced during 2010. That’s not to say that 2010 wasn’t without its challenges but, when compared to 2009, it was a breath of fresh air, to say the least. To put the difference between 2009 and 2010 into perspective, consider this: during the 12 months ending December 31, 2009, the San Antonio commercial real estate market absorbed just 186 square feet of office space. Yep, that’s just 186 square feet.
Hello to a Brighter Future
However, looking to 2010, and it’s an entirely different picture: As of December 2010, the San Antonio commercial real estate market has absorbed nearly 472,000 square feet of office space. Even though this number is considered a downturn from an average of 350,000 to 500,000 square feet per year in previous years, it sure blows away 2009 and shows just how resilient the San Antonio economy really is. In addition to office space absorption, there are also several new developments that have real estate analysts excited about the commercial real estate market, including the new campus of NuStar and plans for a new campus for Nationwide. One of the challenges that continue to exist for the commercial real estate market is lending. The lack of lending slows new construction, which therefore has a negative effect on commercial space absorption. Analysts also expect to see a lot of “no vacancy” for commercial space, thereby halting any growth that can be anticipated.