SAN ANTONIO—San Antonio's robust and steady economy is the biggest reason for its strong balance of retail supply and demand. Along with population growth, the metro is at near full employment with an unemployment rate of only 3.6%, which is keeping single- and multifamily markets healthy. All of that attracts retailers' interest and major concepts to the area, says Weitzman.

In terms of new space, San Antonio reflects the statewide, even nationwide, trend of new construction being dominated by anchors with very limited spec small-shop space. That keeps overall construction in check. New space additions are expected in 2018 and 2019 as large projects in the pipeline–such as the IKEA-anchored Live Oak Town Center–and the expansion of existing projects come on line.

For 2017, the market is on track to add only about 360,000 square feet of new space, based on a Weitzman review of conditions as of mid-year. During 2016, the market added approximately 1.2 million square feet of space in new and expanded projects. The entire market incorporates a total inventory of 45.4 million square feet of multi-tenant retail space in centers with 25,000 square feet or more.

San Antonio also is experiencing strong mixed-use activity, most notably in the continued expansion of The Pearl, with office, retail and residential space. Urban mixed-use in the works include projects downtown, along the River Walk and on the Broadway corridor.

This population boom has prompted grocers such as H-E-B and Walmart to begin construction during the past several years. Restaurants remain one of the stronger categories as well, such as New York-based Shake Shack and Dallas-based The Rustic and Gloria's, with expansions from concepts such as Stone Werks Big Rock Grille, Taco Palenque and others. Demand for space is also generated by beauty, health and wellness, fitness, medical and dental, and services.

As a result of this healthy housing and job environment, another retailer has jumped on board. Spec's Wine, Spirits, & Finer Foods, owned and operated by the same Texas family since 1962, has leased 18,383 square feet of junior anchor space in Ingram Festival, a power retail center located at 6003-6065 NW Loop 410, peripheral to Ingram Park Mall.

SFP Brokerage LLC represented the retailer. Weitzman's David Nicolson and Bryan Parman, senior vice president, handled negotiations as exclusive project representatives for the shopping center. Weitzman manages Ingram Festival.

“Spec's is a great addition to Ingram Festival, because it's another plus for the strong cross-traffic at the intersection. Ingram Festival totals 220,000 square feet of retail, and adjacent is another 100,000 square feet and everything is full,” Parman tells GlobeSt.com. “Spec's wants to be in a center that is busy and full and has a lot of traffic, and this intersection creates amazing synergy and is proof of the strength of San Antonio's destination retail intersections.”

With the new lease, Ingram Festival is now fully occupied, as Parman mentioned. Spec's joins a tenant list that includes DSW, Old Navy, Marshalls, Michaels, F21 Red and Barnes & Noble, among others. Its close proximity to Ingram Park Mall provides access to Sears, Dillard's, JC Penney and Macy's, and the adjoining HQ Shopping Center is anchored by Best Buy, Bed Bath and Beyond, Ross and Petco.

Weitzman is a division of Weitzman Management Corporation, a regional realty corporation.

Instant Insights /

Strong and Steady Economy Wins the Retail Race

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