Strong market movement ended the fourth quarter on a healthy note; pushing through the first quarter glut of negative 152,888 sq. ft. of net absorption to a year-end total of 322,500 sq. ft. absorbed.
Market-wide vacancy rates fell 90 basis points (bps) quarter-over-quarter, condensing the availability rate to 14.0%.
In just a 12 month period, the San Antonio office market vacancy rate has seen a decrease of 180 bps; from 15.8% in Q1 2018 to 14.0% at the end of Q4 2018.
The construction pipeline slowed down this quarter with only one 22,000-sq.-ft. building delivering in the North Central submarket. However, over 1.36 million sq. ft. remain underway with nearly 700,000 sq. ft. already pre-leased.