The San Antonio Commercial Real Estate Market

Shanti Ryle

December 16 2024

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As one of Texas's fastest-growing metros, San Antonio attracts commercial real estate investors and tenants nationwide with its plentiful undeveloped land and promising cap rates.

Crexi is thrilled to connect individuals interested in San Antonio commercial property with the tools they need to research, analyze, and acquire San Antonio investment assets.

Brokers nationwide and those specializing in the San Antonio market can harness Crexi's robust lead management and listing tools to expand their network, save time, and close more deals. As of this writing, Crexi's CRE tools have navigated over $615 billion in commercial property transactions to close and listed more than $7 trillion in assets.

Crexi is proud to serve San Antonio, New Braunfels, Boerne, Floresville, Pleasanton, and the surrounding areas as the region's fastest-growing online CRE platform.

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The State of Commercial Real Estate in San Antonio

San Antonio, Texas’s second-largest city, combines historical significance with a thriving economy. Positioned roughly 150 miles northeast of Laredo and 140 miles northwest of Corpus Christi, its location is integral to its role as a hub for cross-border trade and regional commerce. The metro area’s economic vitality is evident in its $144.4 billion GDP, which has grown by over 63% in the past decade.

The city’s economy is driven by diverse industries, including aerospace, healthcare, cybersecurity, biosciences, and financial services. The unemployment rate remains low at 3.8%, below the national average, reflecting a healthy labor market bolstered by job creation in government, manufacturing, and hospitality. Major employers, such as Joint Base San Antonio, H-E-B, USAA, and Rackspace, anchor the local economy while fueling residential and industrial real estate demand.

Education plays a pivotal role in San Antonio’s success. Renowned institutions like the University of Texas at San Antonio, Trinity University, and St. Mary’s University provide a well-educated workforce that sustains its economic growth. Paired with a cost of living 8% below the national average, the city remains an attractive destination for businesses and residents alike.

San Antonio Regional Breakdown

The San Antonio metropolitan area has experienced consistent population growth, reaching approximately 2.6 million residents this year and ranking as one of the fastest-growing cities in the country for two years running. This growth reflects its favorable cost of living, cultural vibrancy, and economic opportunities. The median household income stands at $66,775, closely aligned with the Texas average, while the median age of 35.7 reflects a youthful, dynamic demographic.

San Antonio has seen a significant and steady rise in its population over the years, making it one of the fastest-growing cities in the United States. This surge can be linked to various factors such as the city's thriving economy, affordable cost of living, and high quality of life. The region also boasts a rich cultural heritage, a vibrant arts scene, and excellent recreational facilities.

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San Antonio Job Market

San Antonio’s labor market reflects its strong economic foundation, with key industries like aerospace, technology, and defense providing resilience during challenging times. As of Q3 2024, the region added nearly 10,000 new jobs across multiple sectors, with manufacturing and government leading the way. Both a cost of living 9% below the national average and a high rate of educational attainment—86% of residents holding a high school diploma or higher—make the region appealing for employers and job seekers.

The GDP for San Antonio-New Braunfels MSA is nearly $182 billion, boasting a growth rate of 63% over the past ten years. Among the city’s top 10 employers are Joint Base San Antonio (3 military bases), H-E-B grocery, USAA insurance, Methodist Healthcare System, Wells Fargo, JP Morgan Chase, and Rackspace.

San Antonio’s transportation infrastructure includes key streets like Roosevelt Avenue and Mission Road, the I-35 corridor, a comprehensive public transit system, and the San Antonio International Airport (SAT).

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San Antonio Industrial Market

The industrial market in San Antonio remains robust, supported by the rise in e-commerce and logistics demand. As of Q3 2024, the city’s total industrial inventory reached 88.9 million square feet, with a 12.3% vacancy rate reflecting ongoing construction activity. Median asking rents rose to $7.53 per square foot annually. Recent major leases include DOCUmation’s 689,215 square feet in the North Central submarket and Southern Warehousing’s 83,250 square feet in the Northeast.

Market overview (Cushman & Wakefield Q3 2024)

Inventory: 88,895,557 SF
Vacancy rate: 12.3% overall
Absorption: -221,660 SF (YTD)
Key leases by tenant: MEI Rigging & Crating 138,365 SF, Southern Warehousing 83,250 SF, Cruising Kitchens 81,852 SF
Under construction: 4,596,189 SF
Largest submarkets: Northeast, South, Comal County

Crexi Insights

These are the most recent San Antonio industrial lease and sales trends from Crexi Insights (as of December 2024):

For Lease (active)

Asking rate/SqFt (median): $12 per year
Median SqFt/listing: 6,000
Days on market: 223
Total listings on Crexi: 245 spaces

For Sale (active)

Median asking price: $1.3 million
Price/SqFt: $158
Asking cap rate: 7.3%
Days on market: 267
Total listings on Crexi: 78 listings for a total of 1.5 million SF

Sales Comps (past 12 months)

Median sold price: $819,000
Sold price/SqFt: $124
Total sales volume: $245.5 million
Median SqFt sold/transaction: 9,910
Total SqFt sold: 2.1 million

Find San Antonio industrial space for rent.

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San Antonio Office Market

San Antonio’s office market is adapting to hybrid work trends and changing workplace demands. As of Q3 2024, vacancy rates stood at 16.7%, with leasing activity surpassing 1.7 million square feet year-to-date. Average asking rents for Class A spaces reached $27.16 per square foot, reflecting steady demand for high-quality office environments. Major tenants, including Hulu and UTSA, continue to expand their presence in the region.

Market overview (Cushman & Wakefield Q3 2024)

Inventory: 51,587,782 SF
Vacancy rate: 16.7%
Leasing activity: 1,792,890 SF
Absorption: -420,773 SF (YTD)
Key leases by tenant: Guidehouse 107,094 SF
Under construction: 182,000 SF
Largest submarkets: Northwest, North Central, Central Business District

Crexi Insights

Crexi provides up-to-date data on the San Antonio office market. Here are the most recent lease and sales trends (as of December 2024):

For Lease (active)

Asking rate/SqFt (median): $22 per year
Median SqFt/listing: 1,882 SF
Days on market: 233
Total listings on Crexi: 1,343 spaces

For Sale (active)

Median asking price: $1.4 million
Price/SqFt: $233
Asking cap rate: 7.0%
Days on market: 179
Total listings on Crexi: 139 listings totaling 2.7 million SF

Sales Comps (past 12 months)

Median sold price: $1.1 million
Sold price/SqFt: $197
Total sales volume: $431 million
Median SqFt sold/transaction: 6,946 SF
Days on market (median): 204
Total SqFt sold: 1.4 million

Find San Antonio office space for rent.

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San Antonio Retail Market

San Antonio’s retail market remains robust, with vacancy rates holding steady at a historically low 4.0% as of Q3 2024, marking eight consecutive quarters at or below this level. Demand for retail space continues to outpace supply, particularly for second-generation spaces, which has limited leasing activity but driven rents to new heights.

The average monthly rent reached an all-time high of $19.90 per square foot, reflecting a 5% year-over-year increase. Despite a 7% decline in construction activity from 2023, with 825,717 square feet currently under construction, the market remains strongly favorable to landlords due to sustained demand and tight inventory.

Market overview (Partners Q3 2024)

Inventory: 124,861,291 SF
Vacancy rate: 4%
Leasing activity: 579,415 SF
Absorption: 187,982 SF (YTD 2023)
Under construction: 825,717 SF
Largest submarkets: Northwest, North Central, Northeast

Crexi Insights

San Antonio retail lease and sales trends from Crexi Insights (as of December 2024):

For Lease (active)

Asking rate/SqFt (median): $20 per year
Median SqFt/listing: 2,401 SF
Days on market: 253
Total listings on Crexi: 1,034 spaces

For Sale (active)

Median asking price: $1.5 million
Price/SqFt: $232
Asking cap rate: 6.2%
Days on market: 180
Total listings on Crexi: 216 listings for a total of 4.5 million SF

Sales Comps (past 12 months)

Median sold price: $671,000
Sold price/SqFt: $153
Total sales volume: $165 million
Sold cap rate: 6.0%
Median SqFt sold/transaction: 3,468 SF
Days on market (median): 112
Total SqFt sold: 1.2 million

Find San Antonio retail space for rent.

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San Antonio Multifamily Market

San Antonio’s multifamily market continues to thrive, driven by a growing population and rising demand for rental housing. Vacancy rates as of Q3 2023 stood at 9.8%, reflecting steady absorption despite an influx of new supply. The city’s rental market has benefitted from its affordability compared to homeownership, with a 52% cost difference making renting a more accessible option for many residents.

Average effective rents are stable at $1.46 per square foot, offering affordability while still yielding healthy returns for investors. Developers are focusing on addressing undersupplied areas, particularly in the Far West and North Central submarkets, which have shown consistent demand for Class A and B properties. With a thinning pipeline of new units under construction, the market is positioned for gradual tightening, further supporting rental rates and occupancy levels.