Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SAN ANTONIO-The positive absorption of 112,000 sf in the third quarter chipped away at San Antonio’s retail vacancy rate, taking it down to 14.8% from 15% in the second quarter, according to a market survey conducted by REOC Partners. The third quarter vacancy rate, however, is still up a point from the end of 2001.

REOC characterizes the San Antonio retail market and its overall economy as stable.While the third quarter showed a net absorption, the first nine months of 2002 show a negative absorption of 278,969 sf, according to REOC. More than 300,000 sf of the negative absorption was in the north part of San Antonio, which had a vacancy rate of 15.4%. The north had a positive absorption of 104,596 sf in the third quarter. The CBD and south part of town absorbed 23,079 sf for the year and 7,555 sf in the third quarter.

The average rent in the overall market rose to $13.50 per sf from $13.35 per sf at the beginning of the year, according to REOC. In the north area, the average increased to $13.72 per sf from $13.64 per sf and rose in the CBD and south to $11.30 per sf from $10.46 per sf.

The market was hit earlier this year when Boise, ID-based Albertsons Inc. closed 23 grocery stories in San Antonio, putting 1.3 million sf in the dark. San Antonio-based H-E-B quickly claimed five stores and two others were purchased for non-grocery uses. Another 15 of the Albertsons stores are under contract to a Dallas investment group in a deal that should close by the end of the year, said Kimberly Gatley, REOC’s research director. “This transaction could vastly improve the retail market picture over the next couple of quarters as activity unfolds,” she said.

REOC said new retailers Krispy Kreme and Kohl’s are entering the San Antonio market. Kohl’s plans to open three stores in the area in first quarter 2003. Other retailers including Wal-Mart, Target, Lowe’s and Costco continue to add stores in San Antonio.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.