AUSTIN/SAN ANTONIO (NAI REOC) – Momentum that has slowly carried the San Antonio office leasing market along a path towards recovery over the past 12 months continued in the fourth quarter with more than 400,000 sf of gross leasing activity, according to the research department of local commercial real estate firm NAI REOC San Antonio.
“In all, more than 1.5 million sf of leases were signed in 2010, which surpassed the 2009 performance of 1.2 million sf, indicating the general upswing of office market activity,” said Kim Gatley, senior vice president and director of research for NAI REOC San Antonio.
Meanwhile, Austin’s industrial leasing market, totaling more than 37.3 million sf, also showed signs of recovery in the second half of the year with a steady stream of leasing activity that tightened the citywide vacancy rate to 20 percent compared with the record high of 24 percent recorded at mid-year and 22 percent recorded a year ago, according to the year-end survey conducted by NAI REOC Austin.
“The lack of new construction coupled with an increase in leasing velocity worked together to lower vacancy rates,” says Mark Milstead, senior broker, industrial services & investments, NAI REOC Austin. All sectors of the Austin MSA had vacancy rates decline except for the east submarket.