Recent data points to the office space market here in San Antonio experiencing multiple trends.
One of these trends is that the average cost of renting such office space is going up. According to the data, compiled by a local real estate company, between last year’s second quarter and this year’s second quarter, there was a 4.4 percent increase on average rent for San Antonio office space.
Increases also seem to be the recent trend when it comes to the amount of office space present in the city. The above-mentioned data indicates that the city’s total supply of office space went up 3 percent from second quarter 2015 to second quarter 2016.
It appears that the amount of office space going unused is also trending upward. In 2015’s second quarter, the city’s office space vacancy rate was 17.5 percent. As of 2016’s second quarter, the rate was up to 18.6 percent. The real estate company that compiled the data has indicated that, in the short run, continued increases in the vacancy rate might occur.
Trends in an area’s office space market can have significant impacts on individuals wishing to enter into a lease agreement regarding office space in that area, whether as a landlord or a tenant. Some trends, like rent increases, tend to be more friendly for prospective landlords. Others, however, like increased supply of office space and increases in office space vacancies, can potentially have benefits for prospective tenants (such as by making more choices available for prospective tenants). So, it appears San Antonio is currently experiencing a mix of potentially landlord-friendly and potentially tenant-friendly office space trends. Such a mix can have some interesting implications in office space lease agreement negotiation and formation.
Experienced real estate lawyers understand that many things can add levels of complexity to matters related to an office space lease transaction, including the unique mix of office space trends occurring in the area commercial real estate market. Such lawyers can help prospective landlords or tenants with taking such complexities into account when determining what approach to go with in lease agreement negotiations regarding office space.
Source: San Antonio Express-News, “San Antonio adding office space at steady pace,” Richard Webner, Aug. 12, 2016