San Antonio’s retail market has seen occupancy climb over the past 12 months, to a 93 percent rate.
Five key things to know about the San Antonio retail market are:
1.The market continues to see new retail construction, which topped 1.4 million square feet in 2014, but it is limited mainly to anchor space for users. Construction of small-shop speculative space continues to be limited for 2015, reflecting developers’ desire to ensure that retail construction does not outpace retail demand.
2.The market’s available space continues to shrink as leasing continues during a time of constrained construction. Several long-vacant boxes, like a former department store, have been backfilled in recent months. Other trade areas are seeing construction of small-shop neighborhood centers to meet demand for space in trade areas that are essentially completely leased.
3.Grocery stores continue to dominate the construction of new space. The most active is Walmart, which opened five Supercenters and four smaller Neighborhood Markets in 2014, and which has more locations on tap for 2015. H-E-B, the market’s No. 1 grocery, also added two new stores last year and has more in the works. The most high-profile non-grocery project, Dominion Ridge, opened with a high-end mix of office and retail/restaurant space for concepts including Silo Elevated Cuisine, Aldaco’s Mexican Cuisine, Di Frabo Italian, Posh Sushi, Toy Zone, iRun, CuppenCake, First American Title, Salons by JC and several others.
4.Walmart and H-E-B will dominate construction again this year. Walmart is opening at least three stores in 2015, and H-E-B has stores in the works to open this year and next.
5.Other retailer concepts expanding in 2015 include Top Golf, with a 65,000-square-foot entertainment concept, its first in San Antonio, and Gold’s Gym, LA Fitness and others.
[The Weiztman Group]