San Antonio Retail Market Report

Sector strength extends across the market. Retail vacancy entered April 2023 at just 3.8 percent, the lowest quarterly rate since 2016. Encouraged by a robust pace of population growth stoked by net in-migration, retailers are expanding their market footprints and fueling net absorption throughout San Antonio. As of the first quarter of 2023, all but one submarket posted a year-over-year vacancy drop or maintained a flat rate. Northwest San Antonio, which holds roughly one-third of the metro’s retail stock, registered an impressive 110-basis-point vacancy decline amid move-ins by consumer electronics and discount retailers, among others. The second-largest submarket by inventory, North Central San Antonio, also recorded a notable 80-basis-point vacancy contraction, with leases signed by a mix of experiential tenants and traditional retailers.