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Market Report

San Antonio Office Market Report

2024 Investment Forecast

South San Antonio’s Strength Contrasts Market;
Urban Core Discounts Could Stoke Demand

Port San Antonio forges a backbone to endure sector headwinds. Among the metro’s six largest submarkets by inventory, South San Antonio’s positive office performance represents a considerable divergence from its peers. The area entered 2024 with a sub-7 percent vacancy rate, driving the local average asking rent up more than 6 percent last year. By comparison, the five other major submarkets each had vacancy rates in the double digits, and none of these locations had rent growth at even half that pace in 2023. One major project is helping set South San Antonio apart. An ongoing redevelopment initiative on former Kelly Air Force Base land, Port San Antonio has become home to several globally-renowned aerospace, defense and cybersecurity firms in recent years — a major draw for ancillary companies. Headline tenants here now include Boeing, Lockheed Martin, Northrop Grumman and DeLorean Motor Company, creating a compact ecosystem that allows for competitive advantages through collaboration and access to skilled labor.

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