The downturn in occupancy primarily is due to 85,000 sf ofsublease space plunked on the northwest submarket by USAA, thecity's largest employer. The northwest submarket took the biggesthit in the third quarter, Shawn Martin, research analyst for Grubb& Ellis in San Antonio, tells "But the rest of SanAntonio is doing alright, with positive absorption," he says,noting that the city overall rang up to the positive just threemonths ago.

The activity isn't great around the rest of town, but it isalright given conditions in other Texas metropolises. "San Antoniohistorically does not have as deep of a fallout," Martinexplains.

The numbers stack up with San Antonio having just under 4.6million sf of empty direct space, of which 705,279 sf arepositioned in the 4.6-million-sf CBD. The average rent in the heartof town is $22.77 per sf in comparison to a market average of$20.94 per sf or a suburban price of $20.27 per sf.

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