Investment Overview

Marcus & Millichap is pleased to offer for sale Onyx at the Airport, a multi-tenant office building located at 8700 Tesoro Drive in San Antonio, Texas. The property offers excellent access to Loop 410, I-10, I-35, and I-37, providing strong connectivity to both workforce and executive housing. Designed to accommodate smaller office users, the property aligns with San Antonio’s evolving market demands, featuring shallow bay depths that enhance space efficiency and reduce tenant improvement costs. Smaller tenants typically prefer shorter lease terms, providing leasing flexibility, maintaining strong occupancy, and limiting tenant leverage during renewals. Notably, 82 percent of the market occupies 6,000 square feet or less. San Antonio’s office market fundamentals remain strong, with a citywide vacancy rate of 11 percent and a submarket rate of 12 percent, supported by a limited construction pipeline of just 1.3 million square feet. In 2024, San Antonio ranked as the fastest-growing major metro, leading the top 25 office markets in rent growth, signaling a faster recovery compared to other Texas cities. The current owner has completed substantial capital improvements, including roof replacement, modernization of two elevators (in addition to the other four elevators by prior owner), upgrades to the HVAC system, and renovations of select restrooms. These improvements position a new owner to focus on remaining capital needs while implementing an aggressive lease-up strategy to boost occupancy and enhance long-term performance. The projected lease rate structure is below market value, allowing a new investor to attract tenants with competitive pricing, capitalize on this significant value-add acquisition and fully leverage the property's repositioning potential. The Property also provides a great opportunity for an owner/user to occupy a portion of the Property and having the other tenants offset the carry costs.