San Antonio Retail Market Report

Availability to match decade-low by year-end. Through March of this year, San Antonio recorded six consecutive quarters of positive absorption, totaling nearly 2.6 million square feet during that span. About 60 percent of that volume came in the past two quarters, evidence that momentum is accelerating. Vacancy entered April at 4.6 percent, on par with the pre-pandemic measure already. The rate is expected to go even lower as the year progresses, approaching 4.2 percent in the fourth quarter — a rate that is 140 basis points below the prior 15-year average. Alongside noteworthy demand tailwinds, construction is low by historical standards, helping facilitate downward pressure on availability as tenants turn to existing spaces. Roughly 70 percent of the 2022 pipeline is pre-leased as of April, headlined by a new 120,000-square-foot H-E-B in New Braunfels and an 80,000-square-foot Living Spaces in Schertz.