TheWriter
11-19-2005, 10:55 AM
Retail sites need 'no vacancy' signs
Web Posted: 11/19/2005 12:00 AM CST
Adolfo Pesquera
Express-News Business Writer
Vast expanses of new retail space opened in the third quarter, with high opening-day occupancy rates that boosted citywide inventory and cut vacancy numbers.
The debut of the Shops at La Cantera bumped up an already healthy third quarter. It added 1.2 million square feet that came online 97 percent occupied.
"As exciting and significant as it is," multiservice brokerage firm REOC's research director Kim Gatley said, "more than 1.3 million square feet of retail projects reach completion this year in addition to the new mall."
Other openings included Culebra Market, the Oaks at Green Valley and expansions at existing centers such as the Vineyard and the Forum at Olympia Parkway.
Speculative building is at full capacity, with almost 4.7 million square feet in construction, including Brooks Corner and City-Base Landing at Goliad Road and Southeast Military Drive, Westover Marketplace at Highway 151 and Loop 410, the Rim of La Cantera at Interstate 10 and Loop 1604, and the Legacy at U.S. 281 and Loop 1604.
"Despite the tremendous amount of space added," said REOC Vice President Sandra K. Rogers, "demand is outpacing construction. Net leasing was positive by 895,000 square feet for the quarter compared to 349,128 square feet in the third quarter of 2004."
The vacancy rate fell 2.6 percent from the same period last year to 10.3 percent. REOC analysts attributed the driving forces to five steady years of record-breaking housing development, population growth, new jobs and strong consumer spending.
The outlook is good for the fourth quarter and beyond, said REOC President Todd A. Gold, "although a few bumps should be expected. Consumer spending may be curbed by higher fuel costs, spiraling debt and rising interest rates."
Ownership changes, such as the Federated Department Stores-May merger, also will bring significant vacancies, he said. Consolidation of stores will leave a 178,000-square-foot vacancy at North Star Mall next year.
Average rents went up year over year from $14.61 to $15.23 a square foot. LoopNet, a real estate information services company, reported investors are paying more than double what they paid for mall and big box properties a year ago.
LoopNet noted San Antonio has moved above parity with the major markets of the Southwest. A year ago, investors were paying $52 a square foot in San Antonio for mall and big box space, compared with an average $83 in the Southwest. Today, the average price is $123 in the Southwest and $124 in San Antonio.
http://www.mysanantonio.com/business/stories/MYSA111905.1C.retail.206a64e2.html
Web Posted: 11/19/2005 12:00 AM CST
Adolfo Pesquera
Express-News Business Writer
Vast expanses of new retail space opened in the third quarter, with high opening-day occupancy rates that boosted citywide inventory and cut vacancy numbers.
The debut of the Shops at La Cantera bumped up an already healthy third quarter. It added 1.2 million square feet that came online 97 percent occupied.
"As exciting and significant as it is," multiservice brokerage firm REOC's research director Kim Gatley said, "more than 1.3 million square feet of retail projects reach completion this year in addition to the new mall."
Other openings included Culebra Market, the Oaks at Green Valley and expansions at existing centers such as the Vineyard and the Forum at Olympia Parkway.
Speculative building is at full capacity, with almost 4.7 million square feet in construction, including Brooks Corner and City-Base Landing at Goliad Road and Southeast Military Drive, Westover Marketplace at Highway 151 and Loop 410, the Rim of La Cantera at Interstate 10 and Loop 1604, and the Legacy at U.S. 281 and Loop 1604.
"Despite the tremendous amount of space added," said REOC Vice President Sandra K. Rogers, "demand is outpacing construction. Net leasing was positive by 895,000 square feet for the quarter compared to 349,128 square feet in the third quarter of 2004."
The vacancy rate fell 2.6 percent from the same period last year to 10.3 percent. REOC analysts attributed the driving forces to five steady years of record-breaking housing development, population growth, new jobs and strong consumer spending.
The outlook is good for the fourth quarter and beyond, said REOC President Todd A. Gold, "although a few bumps should be expected. Consumer spending may be curbed by higher fuel costs, spiraling debt and rising interest rates."
Ownership changes, such as the Federated Department Stores-May merger, also will bring significant vacancies, he said. Consolidation of stores will leave a 178,000-square-foot vacancy at North Star Mall next year.
Average rents went up year over year from $14.61 to $15.23 a square foot. LoopNet, a real estate information services company, reported investors are paying more than double what they paid for mall and big box properties a year ago.
LoopNet noted San Antonio has moved above parity with the major markets of the Southwest. A year ago, investors were paying $52 a square foot in San Antonio for mall and big box space, compared with an average $83 in the Southwest. Today, the average price is $123 in the Southwest and $124 in San Antonio.
http://www.mysanantonio.com/business/stories/MYSA111905.1C.retail.206a64e2.html