Space race

San Antonio builds reputation as a top commercial real estate market

San Antonio downtown skyline skyscrapers

San Antonio is one of only two Texas cities to make the list.

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With all the recent hubbub about the rise in home prices and the growth San Antonio’s housing market, it may be easy to forget that Alamo City is among the country’s hottest commercial real estate markets.

In a recent report, the National Association of Realtors identifies San Antonio as one of the top 10 commercial real estate markets in the U.S. Austin is the only other Texas market to appear on the unranked list.

“While the office market is still broadly facing declining absorption, secondary markets are experiencing an increase in office occupancy, given the relatively affordable residential and commercial prices in these markets,” notes NAR’s Commercial Markets Insights report from September, with San Antonio being among such markets.

San Antonio’s proximity to boomtown Austin is part of what is benefiting the market.

“San Antonio is benefiting from the strong growth in the Austin market, given its proximity to Austin and its more affordable residential and commercial prices,” the report continues. “It has a lower vacancy rate than Austin, at 10.1 percent. As such, the area is experiencing faster office rent growth of 1.7 percent, compared to Austin’s 0.5 percent.”

Factors in San Antonio’s favor that the report outlines include:

Office occupancy has grown, rather than shrunk, in the past 12 months. Across the country, the COVID-19 pandemic has hammered the office sector, with millions of Americans telecommuting rather than heading to a workplace.
In the multifamily segment (part of the commercial real estate sector), San Antonio has seen a net increase of 14,631 apartment units since the second quarter of 2020.
The average transaction price of offices sales in the third quarter of 2021 was $145 per square foot, about a fifth of Austin’s.

“Even as the economy makes a steady recovery, the one sector still lagging behind has been the office market,” Lawrence Yun, chief economist at the National Association of Realtors, says in a news release. “Work-from-home flexibility looks to be the defining shift of the new post-pandemic economy.”

“Despite the overall challenges, however, some local markets are bucking the trend with more office occupancy and rising rents. A combination of strong in-migration and relatively lower cost of doing business is driving these growth markets,” Yun adds.

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Take A Walk

New multifamily community opens near Stone Oak restaurants and shopping

Rendering courtesy of Greyson Luxury Living

The new community offers 291 units.

A new multifamily community is now open to prospective residents in San Antonio. Greyson Luxury Living comprises 291 units at 1734 N. Loop 1604 West, with a focus on lifestyle amenities. But the location will be the main draw for many.

Apartment floor plans range from one to three bedrooms, starting at $1,317 for one bedroom and one bathroom, and working up to a base price of $2,611 for three bedrooms and two baths. The community's pet policy according to the website is: "We welcome all your furry friends at Greyson."

Residents will get reserved parking and a garage with EV charging stations, but it might not always be necessary to hop in the car. The apartments are directly adjacent to restaurants like Cover 3, Eddie V's Prime Seafood, and Blü Prime Steakhouse — not exactly everyday eats, but there's tons more at the Vineyard Shopping Center and the Stone Oak neighborhood's Blanco Market Shopping Center across the highway.

In addition to restaurants, the community is less than a five-minute drive from H-E-B Plus, Whole Foods Market, Target, fashion and furniture stores, and multiple fitness studios like StretchLab and LA Fitness.

A press release promises wood-style flooring, quartz and granite countertops, and ceramic tile backsplash. On the more utilitarian side, it offers single-basin sinks, kitchen islands, "spacious" pantries, a stainless-steel Energy Star appliance package, and washer and dryer connections. (Images shared by the complex so far appear to be more illustrative of the desired vibe than the actual space.)

Every floor plan also shows a private patio or balcony. The most expensive floor plan — the three-by-two — has a wraparound outdoor space.

For shared spaces, a resort-style pool with a tanning shelf (a very shallow area for placing lounge chairs) and bike storage encourage residents to get outside, and a dog wash station makes it easy to leave dirt and hair outside of apartments. There's also a fitness center, a clubhouse with wi-fi, elevators, and concierge services.

“We developed Greyson as a luxury multifamily community aimed to fit any type of lifestyle, and we are grateful for all of our partners that helped bring this project to life,” says Ed Garahan, partner and CEO at Carbon Companies, the development firm heading the project.

Carbon Companies also sold the Addison Medical Center Apartments, Ventura Ridge, Triomphe Apartments, and Pecan Springs Luxury Apartment Homes, with more in the works in San Antonio.

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