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Market Report

San Antonio Office Market Report

2Q 2023

Office Sector Undergoing a Major Recalibration,
Amplified by an Enlarged Construction Pipeline

San Antonio among the nation’s most impeded office sectors. By the end of 2023, metro vacancy is expected to top 18 percent as an 11-year high pace of new supply inflames existing sector challenges. Comparing this rate to the pre-pandemic figure in 2019, availability will be up by 670 basis points, ranking among the 10 most extreme vacancy adjustments for major U.S. markets during that span. Some of the metro’s largest employers have been reshuffling space needs amid post-pandemic preferences and emerging economic pressures. USAA vacated its downtown leases late last year and relocated workers to its primary headquarters in Northwest San Antonio, while also undergoing several local job cuts. Customer service firm IBEX Global Solutions also plans to shut down its North Central call center in June, eliminating hundreds of positions and relocating others to its New Braunfels location. Downsizing and consolidation efforts will hinder San Antonio office fundamentals near-term. 

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