SAN ANTONIO – The local office market had negative net absorption of over 86,000 sf and a quarterly vacancy increase of 140 basis points to 18.5 percent in first quarter 2023, according to CBRE’s latest market survey.
“The overall slowdown in the office market is largely attributed to USAA’s downtown departure at Bank of America Plaza and One Riverwalk,” the report said, “where over half a million sf was vacated and nearly 500 employees returned to its corporate headquarters on the northwest side.”
The central business district continued to take a hit, but the activity in the northern submarkets remained robust.
Most activity occurred north and northwest of downtown, where WellMed took occupancy at the new North Rim Corporate Campus and Jefferson Bank moved to its new HQ on Broadway near the Pearl.
New construction flattened, with only five buildings totaling 286,265 sf underway.