San Antonio Retail Market Report
Retail Landscape Remains Bifurcated, But South San Antonio and the CBD Are Bright Spots
Uneven conditions indicate variation in rebound timetables. After a historically difficult period for retailers amid pandemic-related shutdowns and economic uncertainty, the vacancy rate in San Antonio this June rested 170 basis points above the trailing-10-year low. The pace of rising availability has slowed, however, with vacancy up just 10 basis points since September 2020. Additionally, some submarkets have been more resilient while others have a steeper recovery hill to climb. In the second quarter of 2021, availability was up year over year in half of the metro’s 12 submarkets, with eight different locales posting annual asking rent declines. Drops exceeded 5 percent in five of those submarkets. On the other end of the spectrum, the CBD has shown improvement, with vacancy tightening and the average rent surging by more than 13 percent from July 2020 to June 2021.