San Antonio Commercial Office Space for Rent

Q4 2025

San Antonio Commercial Real Estate Market Report

Focus: Q4 2025 Market Trends

Executive Summary

The San Antonio commercial real estate (CRE) market is showing signs of stabilization and affordability relative to other major Texas metros [5]. The Office sector saw positive net absorption in Q3 2025, marking a significant turnaround [2]. The Industrial market is successfully absorbing new supply, maintaining positive absorption despite elevated construction [2]. Retail remains a key strength, with exceptionally low vacancy [3, 4].

TenantBase Proprietary Data [12] highlights the distribution of active tenant demand over the last 90 days (175 total deals): Retail/Storefront dominated with 63.43% of all searches, Warehouse was the second most active sector at 25.14%, and Office accounted for 11.43% [12].

Office Market

Market Overview

San Antonio's office market experienced a stabilizing Q3 2025, with improving vacancy and a return to positive net absorption. The market is healthier than its Texas peers [5].

  • Vacancy & Availability: The overall vacancy rate decreased 10 basis points to 17.8% in Q3 2025 [2], and is considered healthier than in other major Texas metros [5]. This improvement was primarily due to positive absorption [2].
  • Net Absorption: Net absorption turned positive in Q3 2025, recording 30,551 SF for the quarter [2]. This was a significant increase from the negative absorption posted in the previous quarter [2]. Class A properties led the gains [2].
  • Rental Rates: The average full-service asking rent reached an all-time high of $27.92 per SF in Q3 2025, marking a 14.8% increase annually [2]. Class A rents are around $29.66 per SF [5].
  • Construction: The construction pipeline remained steady with 227,400 SF under construction and only 48,000 SF delivered in Q3 2025 [2].

TenantBase Activity [12]

  • Demand Share: Office accounted for 11.43% (20 deals) of total search volume [12].
  • Lease Term Preference: Demand is split between short-term flexibility and mid-term stability [12]:
    • Less than one year: 35% of deals.
    • 2-3 Years: 35% of deals.
    • 3-5 Years: 20% of deals.
  • Size Requirements: The average lower SF required for a Less than one year term is 500 SF, compared to 1,750 SF for a 3-5 Years term [12].

Industrial & Warehouse Market

Market Overview

San Antonio's industrial market is effectively absorbing new supply, posting positive absorption despite increasing construction deliveries. The market is balanced with rents around $6–$7 per SF [5].

  • Vacancy & Rent: The overall vacancy rate rose to 11.5% in Q3 2025, up from 10.7% the previous quarter, due to significant new deliveries [2]. The average monthly rental rate (NNN) increased to a record high of $9.12 per SF in Q3 2025, a 6.8% increase over the quarter [2].
  • Net Absorption: Net absorption remained positive in Q3 2025, recording 219,296 SF [2].
  • Demand & Supply: Construction deliveries totaled 1.5 million SF in Q3 2025 [2]. The under-construction pipeline decreased by 7.7% to 1.5 million SF [2].
  • Leasing Activity: Quarterly leasing velocity was 1.0 million SF [2]. Warehouse/Distribution space accounted for the majority (82%) of the leasing activity [2].

TenantBase Activity [12]

  • Demand Share: Warehouse accounted for 25.14% (44 deals) of total search volume [12].
  • Lease Term Preference: Demand is focused on the mid-term range [12]:
    • 2-3 Years: 35% of deals.
    • 3-5 Years: 25% of deals.
    • 1-2 Years: 20% of deals.
  • Size Requirements: The average lower SF required for a 5+ Years term is 6,250 SF, significantly larger than the average for shorter terms [12].

Retail Market

Market Overview

San Antonio's retail market remains robust and strongly landlord-favorable, characterized by critically low vacancy and steady rent growth [3, 4].

  • Vacancy & Availability: The overall vacancy rate is extremely low, holding steady at 4.0% in Q3 2025 [3, 4]. San Antonio has maintained a vacancy rate of 4% or lower for nine consecutive quarters [4].
  • Net Absorption: Net absorption for Q4 2024 was flat at 1,064 SF, but the total for 2024 was a healthy 561,601 SF [4].
  • Rental Rates: The average monthly rental rate (NNN) was $19.87 per SF in Q4 2024, up 6% over the past year [4]. Average rents for the market are approximately $20–$25 per SF [5].
  • Construction: The under-construction pipeline was 995,084 SF in Q4 2024 [4].

TenantBase Activity [12]

  • Demand Share: Retail/Storefront activity dominated with 63.43% (111 deals) of total search volume [12].
  • Lease Term Preference: Retail tenants show a strong preference for long-term stability [12]:
    • 5+ Years: 32.73% of deals.
    • 3-5 Years: 29.09% of deals.
    • 2-3 Years: 16.36% of deals.
  • Top Locations: Tenant interest is highly concentrated in the core metro [12]:
    • San Antonio (Core): 39 deals (22.29%).
    • Boerne/Bulverde/Far North: 9 deals (5.14%).
    • Northeast: 7 deals (4.0%).

Multifamily Market

Market Overview

San Antonio's multifamily sector is navigating a peak in supply deliveries, but strong long-term demand drivers and a shrinking pipeline suggest a recovery in 2026 [4, 1].

  • Vacancy & Occupancy: The occupancy rate in stabilized properties fell to 90.7% as of July 2025 [4]. Overall occupancy is expected to be weighed down throughout 2025 by lingering vacancies [4].
  • Rents & Concessions: Average advertised asking rates were up 0.1% on a trailing three-month basis through August 2025 [4]. By Q4 2025, rents are forecasted to post a slight increase of 0.9% [4].
  • Construction: Unit completions are projected to decrease by 60% in 2025 to 5,197 units [4]. Construction starts slowed dramatically in 2024 [1].
  • Investment: Year-to-date investment activity through August 2025 totaled $133 million [4].

Sources

  1. SPI Advisory: Q2 2025 Texas Multifamily: Rent Growth, Cap Rates & Investment Strategies
  2. Partners Real Estate: San Antonio Office | Q3 2025 | Quarterly Market Report
  3. Partners Real Estate: San Antonio Retail - Q2 2025 - Quarterly Market Report
  4. MMG Real Estate Advisors: 2025 San Antonio Forecast
  5. Terrydale Capital: Texas Commercial Real Estate Outlook November 2025
  6. Partners Real Estate: San Antonio Industrial | Q3 2025 | Quarterly Market Report
  7. CBRE: San Antonio Industrial Figures - Q3 2025
  8. Cushman & Wakefield: SAN ANTONIO Industrial MarketBeat Q3 2025
  9. Transwestern: SAN ANTONIO OFFICE MARKET - Q4 2024
  10. Yardi Matrix: San Antonio Multifamily Market Report – October 2025
  11. CBRE: Multifamily - U.S. Real Estate Market Outlook 2025
  12. TenantBase Proprietary Market Data (Last 90 Days)

Information in this report is aggregated from various third-party sources and synthesized using artificial intelligence and other research tools. While we believe these sources to be reliable, we cannot guarantee the absolute accuracy or completeness of the data. This report is intended for informational purposes to provide market insight and should be independently verified prior to any use in a real estate transaction or legal commitment.