The San Antonio Commercial Real Estate Market

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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 $540 billion in commercial property transactions to close and listed more than $5 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.

The State of San Antonio Commercial Real Estate 

San Antonio, Texas’s second most populous city, lies at the heart of a thriving metropolitan area. With a rich tapestry of history and culture, this vibrant city is much more than just a tourist destination. It’s an economic powerhouse, a melting pot of industries, and a hub for innovation.

The city’s strategic location, approximately 140 miles northwest of Corpus Christi on the Gulf of Mexico and 150 miles northeast of Laredo on the Mexican border, gives it a unique advantage. This positioning connects San Antonio to critical markets and trade routes, making it a prime spot for businesses looking to expand their reach.

San Antonio’s economy is as diverse as its population. The city has prospered from its agricultural and ranching activities, with recent advances in transportation and industry further bolstering its economic growth. Today, it is home to numerous thriving sectors, including biosciences, technology, and tourism.

Education also plays a significant role in the city’s dynamism and appeal. Institutions like Trinity University, San Antonio College, and UT-San Antonio lend an academic vibrancy to the city and supply a continuous stream of talent into the workforce.

The city’s natural beauty, with its many parks, rivers, and green spaces, adds to the quality of life. It’s a city that knows how to balance work with play, offering residents and visitors alike recreational and leisure opportunities. San Antonio is a shopper’s paradise, from the largest Mexican market in the U.S. to upscale boutiques and shopping malls.

In essence, San Antonio offers a blend of economic opportunity, cultural richness, and lifestyle appeal. Whether looking to invest, start a business, or embrace a new way of life, this Texan city certainly presents an attractive proposition.

San Antonio Regional Breakdown

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.

  • The metro area’s population is over 2.6 million, with nearly 1.5 million in San Antonio.
  • Metropolitan San Antonio is the 24th most populous metro in the US.
  • San Antonio is ranked as one of the fastest-growing cities by the United States Census Bureau.
  • Bexar County (where San Antonio is located) saw its population grow by 9% yearly, adding nearly 30,000 new residents.
  • The median age is 35.7, about 90% of the figure in the US.
  • Per capita income is $33,179, and median household income is $66,775, both figures about the same as the average in Texas.

The San Antonio Job Market

The metro area is experiencing significant economic growth, especially in industries like bioscience. The city’s economic expansion is reflected in its thriving job market, which continues to grow each year. 

Despite wages being slightly below state and national averages, the labor market is the strongest it has been in years. The economy consistently generates more jobs in both public and private sectors, solidifying San Antonio’s position as a city with a promising economic and employment future.

  • GDP for San Antonio-New Braunfels MSA is nearly $144.4 billion, boasting a growth rate of 63% over the past ten years.
  • The unemployment rate is 3.9% (June 2023), one of the lowest in more than 30 years.
  • Top 10 employers include Joint Base San Antonio (3 military bases), H-E-B grocery, USAA insurance, Methodist Healthcare System, Wells Fargo, JP Morgan Chase, and Rackspace.
  • According to the City of San Antonio, key industry clusters are aerospace, bioscience, cybersecurity, financial services, manufacturing, and technology.
  • The metro area is home to the headquarters of two Fortune 500 Global firms and seven Fortune 1000 companies.
  • The cost of living is 8% lower than the national average, with Niche.com awarding the city strong grades for public schools, housing, families, diversity, and nightlife.
  • Over 86% of residents are high school grads or higher, while more than 31% hold bachelor’s or advanced degrees.
  • The best colleges in the San Antonio area are Trinity University, Hallmark University, and St. Mary’s University.

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).

San Antonio Industrial Market

The industrial market in San Antonio is displaying robust growth, driven by sustained e-commerce demand and a booming population. Despite the rise in vacancy due to an influx of new supply and key construction completions, strong absorption rates reveal a thriving market. Rental rates continue to escalate due to persistent demand, with flex pricing showing a 25% year-on-year growth.

Market overview (Cushman & Wakefield Q2 2023

  • Inventory: 82,818,787 SF
  • Vacancy rate: 7.3% overall
  • Absorption: 1,205,080 SF (YTD)
  • Key leases by tenant: Southern Warehousing 273,344 SF, Wesco Distribution 119,200 SF, Dixie Floor & Floors 106,356 SF
  • Under construction: 6,705,534 SF 
  • Largest submarkets: Northeast, South, North Central

Crexi Intelligence

These are the most recent San Antonio industrial lease and sales trends from Crexi Insights (as of August 2023):

For Lease (active)

  • Asking rate/SqFt (median): $13 per year
  • Median SqFt/listing: 4,994
  • Days on market: 174
  • Total listings on Crexi: 303 spaces

For Sale (active)

  • Median asking price: $1.49 million
  • Price/SqFt: $129
  • Asking cap rate: 6.6%
  • Days on market: 207
  • Total listings on Crexi: 79 listings for a total of 2.9 million SF

Sales Comps (past 12 months)

  • Median sold price: $2.9 million
  • Sold price/SqFt: $95
  • Total sales volume: $11.6 million
  • Sold cap rate: 5.8%
  • Median SqFt sold/transaction: 34,000
  • Total SqFt sold: 139,000 million

Discover San Antonio industrial space for rent.

San Antonio Office Market

San Antonio’s office market is navigating the changing landscape of workplace needs and hybrid work trends. While overall vacancy rates have increased, a noticeable uptick in demand for office spaces indicates growing confidence among companies in their office requirements. 

The market has also seen steady construction activity, adding more office spaces. On the pricing front, average rental rates have remained stable, reflecting landlords’ efforts to maintain balance in the market amid these shifts.

Market overview (Cushman & Wakefield Q2 2023)

  • Inventory: 50,683,135 SF
  • Vacancy rate: 17.4%
  • Leasing activity: 1,305,422 SF
  • Absorption: -726 SF (current quarter)
  • Key leases by tenant: Physician Surgical Network 59,741 SF 
  • Under construction: 825,681 SF
  • Largest submarkets: Northwest, North Central, Central Business District

Crexi Intelligence

Crexi provides up-to-date data on the San Antonio office market. Here are the most recent lease and sales trends (as of August 2023):

For Lease (active)

  • Asking rate/SqFt (median): $21 per year
  • Median SqFt/listing: 2,508 SF
  • Days on market: 385
  • Total listings on Crexi: 1,395 spaces

For Sale (active)

  • Median asking price: $1.35 million
  • Price/SqFt: $230 
  • Asking cap rate: 6.0%
  • Days on market: 192
  • Total listings on Crexi: 128 listings totaling 2.43 million SF

Sales Comps (past 12 months)

  • Median sold price: $634,000
  • Sold price/SqFt: $133
  • Total sales volume: $3.83 million
  • Sold cap rate: 5.8%
  • Median SqFt sold/transaction: 5,669 SF
  • Days on market (median): 114

Discover San Antonio office space for lease. 

San Antonio Retail Market

The retail market in San Antonio shows stability with a consistent vacancy rate, mainly due to high costs slowing new construction. However, market fundamentals remain balanced, with net absorption and delivery statistics aligning closely year-to-date. Rent growth is tracking inflation, suggesting a resilient and steady market landscape.

Market overview (Partners Q2 2023

  • Inventory: 120,421,698 SF
  • Rent growth: 8% year over year
  • Vacancy rate: 3.9%
  • Absorption: 577,605 SF (YTD 2023)
  • Under construction: 920,084 SF 
  • Largest submarkets: Northwest, North Central, South, Northeast

Crexi Intelligence

San Antonio retail lease and sales trends from Crexi Insights (as of August 2023):

For Lease (active)

  • Asking rate/SqFt (median): $20 per year
  • Median SqFt/listing: 2,214 SF
  • Days on market: 255
  • Total listings on Crexi: 1,066 spaces

For Sale (active)

  • Median asking price: $1.14 million
  • Price/SqFt: $209
  • Asking cap rate: 5.8%
  • Days on market: 134
  • Total listings on Crexi: 193 listings for a total of 5.9 million SF

Sales Comps (past 12 months)

  • Median sold price: $1.0 million
  • Sold price/SqFt: $205
  • Total sales volume: $21.1 million
  • Sold cap rate: 5.1%
  • Median SqFt sold/transaction: 3,168 SF
  • Days on market (median): 95

Discover San Antonio retail property for lease.

San Antonio Multifamily Market

Due to homeownership challenges, San Antonio’s multifamily market is leaning towards rentals, leading to a rise in occupied units. This shift is driven by population growth and in-migration, boosting demand for Class A/B properties. The market is further bolstered by job growth in sectors like cybersecurity. Despite an increase in supply, developers focusing on under-supplied areas will likely aid availability through near-term headwinds.

Market overview (IPA Q2 2023)

  • Total housing units: 1,036,103
  • Multi-unit: 259,026
  • Vacancy rate: 7.5%
  • Average asking rent: $1,264
  • New construction: 18,000 units
  • Most active submarkets: Central, North Central, Far Northwest

Crexi Intelligence

Here are the most recent San Antonio multifamily insights from Crexi (as of August 2023):

For Sale (active)

  • Median asking price: $1.42 million
  • Price/SqFt: $181
  • Price/Unit: $186,000
  • Asking cap rate: 5.0%
  • Days on market: 84
  • Total listings on Crexi: 37 listings totaling 1.06 million SF

Sales Comps (past 12 months)

  • Median sold price: $373,000
  • Sold price/SqFt: $147
  • Sold price/unit: $158,000
  • Total sales volume: $1.57 billion
  • Sold cap rate: 5.6%
  • Total SqFt sold: 8.32 million
  • Days on market (median): 202

Discover San Antonio multifamily property for sale.

Get more in-depth San Antonio market data with Crexi Intelligence.

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Shanti Ryle
Shanti Ryle

Content Marketing Manager

Shanti leads Crexi's content marketing strategies with 7+ years of content development experience, creating everything from blog posts to award-winning podcasts. Previously, she worked on content teams at Snapchat, Weedmaps, and HopSkipDrive as well as developed copy, articles, and media for freelance publications.

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