Modest year-end net absorption in San Antonio’s tightening retail market did little to impede overall rising occupancy rates. Broad-based demand growth across the region ensured the backfilling of available space, while limited availability held down net demand growth.
A robust pre-leasing environment has alleviated construction concerns across the San Antonio market, bucking an emerging trend seen in the northern part of the state. Strong developer-lender relationships, made up primarily of local and regional players with strong track records in the area, have allowed for projects to continue being seeded.
In December, the U.S. Census Bureau released data showing a 10% increase in San Antonio population since 2011, second to Austin (16.1%) but outpacing Houston (7.2%) and Dallas (6.8%). Household incomes rose in most San Antonio neighborhoods, primarily north of the city.
Retail product in San Antonio continues to exhibit strength as high occupancy rates persist, rents continue to increase, and the construction pipeline remains robust. With multiple ground breakings, grand openings, and a strong economy, San Antonio closes out 2017 on a strong note, and will head into 2018 on a tailwind.