MARKETS:
Retail
San Antonio will experience a gentle increase in rents across all retail product types due to the slowdown in construction starts related to the interest rate environment beginning in 2020.
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As construction
Resumes
(currently at 50% of prior period volume) cap rates will expand but due to the backlog of leasing activity (which has slowed down, coinciding with the availability of space) rents will slightly increase.
Vacancy remains at an average of 3%, which is exceptional considering the current U.S. average of 5%. New construction is coming online at an average of 50% occupancy (with some submarkets reaching 100%) meaning if a project can achieve the right construction costs and financing, it is almost certain to succeed.