Demand in the retail sector may still exceed supply.
GABE HERNANDEZ | SABJ
By Ramzi Abou Ghalioum and Karly Williams – San Antonio Business JournalApr 26, 2022
After a prolonged pandemic slump, San Antonio’s retail market has solidified a strong Q1 return in 2022.
According to a quarterly market report recently published by Houston-based NAI Partners, retail space net absorption, or “move-in” minus “move-out” rates, in the first quarter of 2022 sat at a total of 474,544 square feet — not quite the rate it achieved during the previous quarter (that number was over a million square feet) — but well into the positive.
In addition, leasing activity is up by about 25%, with 878,190 square feet of space leased in Q1. With 410,555 square feet of space delivered, and 763,491 under construction, demand in the retail sector may still exceed supply, even with 3 million square feet promised this year.
Demand for space outpaced supply in January 2022 for the first time in six years. Retail’s strong debut in the first month of the year is a good indicator that the industry is continuing to recover from the pandemic woes of 2020 and 2021.
The NAI report, using data from Real Capital Analytics, also indicated that there was $73 million in cumulative monthly sales volume as of the end of February, up from $19 million at the same point last year.
Other data from the report indicates that Guadalupe County, which experienced the most absorption in Q1, also averaged the highest per-square-foot rental rates at $21.97. The central business district, the northwest sector, and Comal County all experienced negative net absorption rates, indicating that tenants in the retail space are vacating those areas.
The rise in retail is continuing in conjunction with the city’s strong housing market. NAI has continued to report price-per-square-foot increases in the San Antonio region as both markets grow together.
Such data suggests retail activity in the San Antonio region should continue to grow, especially along the Interstate 35 corridor as cities like New Braunfels and Schertz boom.
Source: https://www.bizjournals.com/sanantonio/news/2022/04/26/san-antonio-retail-market-on-rebound.html