San Antonio Office Market Report

Downtown faces a hurdle as suburbs benefit from medical office ecosystem. Vacancy in the CBD dropped by more than 150 basis points in 2025. However, AT&T’s relocation from downtown to northwest San Antonio in 2026 will cut its footprint from 400,000 to roughly 160,000 square feet. That will create significant vacancy in the CBD, which already holds the highest rate among submarkets. This relocation, nevertheless, supports offices in northwest San Antonio, which benefits from other tailwinds as San Antonio leads major Texas metros in net absorption relative to inventory. Medical office deliveries in 2026 reflect the area’s expanding healthcare ecosystem, supported by demographic tailwinds and a strong talent pipeline anchored by the Medical Education and Training Campus. Meanwhile, north-central San Antonio saw vacancy rise last year, despite ongoing new leasing, as move-ins concentrated near highway loops and airport access. Smaller tenants led activity in 2025, with average deal sizes near 3,000 square feet.