San Antonio Retail Market Report

CBD tightens near term as Project Marvel could anchor outlook. After a year of net relinquishment, the CBD vacancy rate fell 50 basis points in the first half of 2026, aided by minimal speculative construction. Longer term, the multibillion-dollar downtown redevelopment Project Marvel, if executed as proposed, could reshape central retail. The city is assembling land for future mixed-use development and closed on a $30 million federal parcel assemblage in July. The city may acquire land for the new Spurs arena by year-end. However, mixed-use development around the target 2030 arena opening is stalled amid negotiations. This project could generate heavy pedestrian foot traffic, and the new space is likely to be pre-leased, reducing pressure on the submarket’s vacancy.