RealReal EstateEstate MarketMarket OverviewOverview SanSan AntonioAntonio

Jennifer S. Cowley Assistant Research Scientist

Texas A&M University

June 2001 © 2001, Real Estate Center. All rights reserved. RealReal EstateEstate MarketMarket OverviewOverview SanSan AntonioAntonio Contents

2 Population 5 Employment 8 Job Market

Major Industries 9 Business Climate

11 Education 13 Transportation and Infrastructure Issues 14 Public Facilities Urban Growth Patterns Map 1. Growth Areas 15 Housing 19 Multifamily 20 Map 2. Multifamily Building Permits 21 Manufactured Housing 22 Seniors Housing 23 Retail Market 24 Map 3. Retail Building Permits 26 Office Market 27 Map 4. Office Building Permits 28 Industrial Market 29 Map 5. Industrial Building Permits Conclusion RealReal EstateEstate MarketMarket OverviewOverview SanSan AntonioAntonio Jennifer S. Cowley Assistant Research Scientist

Interstate 10 Hill Country Village Selma Cibolo Helotes State Hwy 421 Live Oak Schertz

US Hwy 281 Interstate 35 Castle Hills Converse

Leon Valley Alamo Heights

Kirby Loop 410 Interstate 10 I35 San Antonio US Hwy 90 China Grove

State Hwy 13

Interstate 37

Interstate 35

Area Cities and Towns Counties Land Area of San Antonio MSA San Antonio Bexar 3,356 square miles New Braunfels Comal Seguin Guadalupe Population Density (2000) Schertz Wilson 474 people per square mile Universal City Converse Live Oak Leon Valley

an Antonio is the eighth largest dor, the fastest growing region of the Metropolitan Statistical Area (MSA) city in the United States and one state. San Antonio offers proximity to consists of Bexar (pronounced “bear”), Sof the fastest growing metropoli- other major Texas population centers Comal, Guadalupe and Wilson tan areas in the country. It is located in and is midway between the nation’s counties. south central Texas in the I-35 corri- east and west coasts. The San Antonio

1 POPULATION Kelly Air Force Base, San Antonio

San Antonio MSA Population Year Population 1990 1,327,378 1991 1,348,142 1992 1,375,455 1993 1,403,749 1994 1,426,838 1995 1,455,758 1996 1,480,936 1997 1,514,261 1998 1,540,113 1999 1,564,949 2000 1,592,383 Source: U.S. Census Bureau

County Population Growth Growth 1990–2000 County 2000 Population (in percent)

Bexar 1,392,931 17.5 Comal 78,021 50.5 Guadalupe 89,032 37.2 Wilson 32,408 43.1

Source: U.S. Census Bureau

Area Cities With 10,000 or More Residents Growth 1990–2000 City 2000 Population (in percent)

San Antonio 1,114,646 14.8 New Braunfels 36,494 31.5 Seguin 22,011 5.3 Schertz 18,694 75.8 Universal City 14,849 11.2 Converse 11,508 28.6

Source: U.S. Census Bureau

2 he population of the San Antonio rate mirrors that of the state as a whole through 2020, according to the Texas MSA increased at an average during the 1990s. Population projec- State Data Center. The Texas Water T rate of 2 percent per year during tions forecast an average growth rate of Development Board predicts a growth the past decade. San Antonio’s growth slightly less than 1 percent per year rate of 2.7 percent per year.

Texas Metropolitan Area Population Change, 1990–2000 (in percent)

McAllen-Edinburg-Mission 48.5 Galveston-Texas City 15.1 Austin-San Marcos 48.2 Tyler 15.5 Laredo 44.9 El Paso 14.9 Dallas 31.5 Corpus Christi 14.3 Brownsville-Harlingen-San Benito 28.9 Victoria 13.1 Brazoria County 26.1 Waco 12.9 Houston 25.8 Texarkana 9.4 Fort Worth-Arlington 25.1 Lubbock 9.0 Bryan-College Station 25.1 Wichita Falls 7.8 Texas 22.8 Longview-Marshall 7.7 Killeen-Temple 22.6 Beaumont-Port Arthur 6.6 San Antonio 20.2 Abilene 5.8 Sherman-Denison 16.4 San Angelo 5.6 Amarillo 16.2 Odessa-Midland 5.1

Source: U.S. Census Bureau

San Antonio MSA Projected Population

Texas State Texas Water Year Data Center Development Board

2005 1,787,667 — 2010 1,948,741 2,037,198 2015 2,089,053 — 2020 2,227,399 2,465,501

Sources: Texas State Data Center and Texas Water Development Board

3 Projected Population Growth, 2000–2020 (in percent)

50

40

30 40.2 20 10 14.3 0

SanAntonioMSA Texas

Source: Texas State Data Center

Household Composition Bexar County Texas

Median household size (1990) 2.81 2.73 Population younger than 18 (1999; in percent) 29.4 28.5 Population 65 and older (1999; in percent) 10.6 10.1

Source: U.S. Census Bureau

Ethnic Distribution (in percent) Bexar County Texas Ethnicity 1990 2000 1990 2000

White 42.0 35.6 60.8 52.4 Hispanic 48.9 54.3 25.3 32.0 Black 7.2 6.9 11.7 12.2 Asian 1.4 1.6 0.3 3.2 American Indian 0.4 0.3 1.8 0.3 Other 0.1 0.1 0.1 0.2 Two or more races* — 1.2 — 1.1

* For the 2000 Census, the Census Bureau changed the “race” options, allowing people to report their race as “other” or as two or more races. Source: U.S. Census Bureau

verall, the Hispanic popula- percentage points between 1990 and personal income in 1999, according to tion was the fastest growing, 2000. Residents of the San Antonio the U.S. Bureau of Economic Analysis. O with an increase of 5.4 MSA had a $24,716 per capita The state average was $26,834.

4 EMPLOYMENT

San Antonio MSA Employment

800,000

700,000

600,000

500,000

400,000

300,000

200,000 100,000

0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Source: U.S. Bureau of Labor Statistics

San Antonio MSA Unemployment Rate (in percent) 6

5

4

3

2

1

0 May May May May May May Sept Sept Sept Sept Sept Sept January-95 January-96 January-97 January-98 January-99 January-00 January-01

Source: U.S. Bureau of Labor Statistics

5 Top Ten Private Employers

CompanyBergstrom Air Business Force Base, Austin Employees USAA Insurance 17,069 H-E-B Grocery 17,805 SBC Communications Telecommunications 8,000 Frost National Bank Financial Services 3,541 Taco Cabana Fast-food chain 3,000 West Telemarketing Outbound telemarketing 2,850 Southwest Research Institute Research and development 2,733 QVC Order center 2,034 Ultramar Diamond Shamrock Petroleum refining 2,008 Boeing Aerospace Support Center Aircraft maintenance 2,000

Source: San Antonio Economic Development Foundation, 2001

Employment Growth by Industry San Antonio MSA Texas

Employment growth, 2000 (in percent) 2.5 3.2 Unemployment rate (in percent) 3.4 3.4 New jobs in 2000 17,400 288,900 Employment growth by sector (in percent) Services 3.6 4.7 Trade 2.7 3.1 Manufacturing 1.5 0.1 Mining 0.0 2.3 Finance, insurance and real estate 3.1 1.3 Construction 2.9 6.2 Government –1.0 1.7 Transportation, communications and public utilities 7.8 5.1

Sources: Texas Workforce Commission

6 Texas Metropolitan Area Employment Change, 1990–2000 (in percent)

Austin-San Marcos 58.8 El Paso 15.4 Laredo 40.3 Waco 14.3 McAllen-Edinburg-Mission 35.8 Lubbock 14.0 Dallas 30.4 Sherman-Denison 12.5 Brownsville-Harlingen-San Benito 30.1 Longview-Marshall 12.2 Bryan-College Station 29.2 Abilene 11.4 Killeen-Temple 28.7 San Angelo 10.7 San Antonio 28.6 Corpus Christi 10.3 Fort Worth-Arlington 23.7 Galveston-Texas City 8.2 Texas 23.3 Wichita Falls 7.8 Tyler 22.9 Odessa-Midland 6.5 Victoria 22.4 Texarkana 4.5 Houston 22.1 Beaumont-Port Arthur 3.5 Amarillo 18.6 Brazoria County 2.3

Source: U.S. Bureau of Labor Statistics, February 2001

onagricultural employment to 3.4 percent in 2000, compared with Antonio area. USAA, a major insur- increased 2.5 percent during 3.1 percent in 1999. The Bureau of ance company, expanded by con- N2000, compared with 2.8 Labor Statistics reports that civilian structing new headquarters buildings. percent in 1999, according to the employment was at 755,705 for 2000, The military has a strong presence in Texas Workforce Commission. up 1.8 percent from 1999. San Antonio, with four Air Force bases Employment growth in the area is Health care makes up the largest and Fort Sam Houston employing similar to employment growth across portion of employment in the San 67,896 people. the state. Unemployment rose slightly

7 JOB MARKET

pplied Solutions Technology division to San Antonio, employing employees from its diagnostic clinic. will open a manufacturing 150. TEFTEC Corporation is moving its Covenant Behavioral Health System A plant near Brooks Air Force wheelchair manufacturing facility to closed its inpatient psychiatric facility Base employing 100. Southwest San Antonio, employing 100. Rooster in November 2000, laying off 165 Concrete Products announced in Products, a leather and tool manufac- employees. January 2001 that they will open a turer, added 30 jobs. Coil Plus, a USAA laid off 151 people in its concrete block manufacturing plant custom steel manufacturer, added 75 information technology division that will employ 40. Telecom will jobs. Alcatel added 20 jobs. because of restructuring. EG&G open an operations center by the end Travelocity.com added 750 employ- Technical Services cut half its of 2001 that will employ 500. Nation- ees to its call center. Caremark workforce at Kelly Distribution Center, wide Insurance opened a 300- Prescription Service added 400 laying off 126 employees in 2000. employee call center in March 2001. employees, and OnPoint added 300 to Sitel Corporation is closing its San SecureInfo Corporation plans to hire its call center. Providian Financial Antonio call center in 2001, laying off 25 security analysts in 2001 because Corporation added 250 employees to 350 employees. Qwest Communica- of new U.S. Department of Defense its customer service center. Grande tions is closing its San Antonio call contracts. Nova Consulting group Communications added 250 employ- center and laying off 108 employees. plans to hire 20 engineers for its San ees, and SBC Communications added El Paso Energy Corporation is closing Antonio office in 2001. Laredo Coach 200. its regional office in San Antonio and Works Automotive, a limousine PacifiCare of the Southwest plans to moving to Houston, resulting in 250 manufacturer, plans to open a facility build an office building in Northwest people losing their jobs in 2001. USAA in 2001 and add 10 employees. San Antonio and will hire 200 employ- will cut 250 San Antonio jobs by Chase Manhattan Corporation ees. Amtek Engineering added 185 September 2001. Phillips Semiconduc- opened a customer service operation employees, Fairchild Aerospace tors shut down operations for 90 days employing 850 in 2000 and plans to Corporation added 27 and Sanmina in May 2001. grow to 1,800 employees. Qwest Corporation added 150. Neuman Distribution Company Communications opened a customer In Seguin, Auto Recyclers added 20 closed in 2000 after it was acquired by service center employing 700 in April employees. Story Communications is another company, resulting in 100 2000 but will close the center in 2001. relocating its printing facilities from jobs lost. Sol Frank Uniform closed, Allconnect.com opened a regional Dallas to Seguin, employing 115. laying off 139 employees. Pearl customer service center employing Millennium Teleservices is planning to Brewery closed in June 2000, laying 250. Billserv.com opened a customer open a 200-employee call center in off 161 employees. McKesson HBOC service center in summer 2000, 2001. In Schertz, Graebel Movers shut down its pharmaceutical distribu- employing 60. Moveforfree.com added 45 employees. tion center in December 2000. A total relocated its corporate headquarters to Christus Santa Rosa Healthcare laid of 50 jobs were lost. Kelly Air Force San Antonio. The company employs off 388 employees in 2000. Baptist Base has been phasing out over the last 30. Health System cut 6 percent of its several years with 1,100 jobs cut in Mikron Infocom Technology workforce, laying off 290 employees. It April 2001. Marketing Specialists Holding opened a cellphone produc- previously laid off 100 employees in closed its San Antonio office in June tion plant employing 400 in 2000. January 2000. PhyCor laid off 100 2001, laying off 90 employees. Frost and Sullivan is moving its HVAC

8 MAJOR INDUSTRIES

he services sector added the decline in government employment 30 hospitals. Tourism is a multibillion most jobs — 7,900 — to the has occurred over the past year dollar industry, making the city one of T San Antonio economy in 2000, because of Kelly AFB’s closing and the top tourist destinations in Texas. and accounts for the largest share of layoffs at Brooks AFB. The government In Bexar County, nursery products San Antonio’s workforce — 32 sector lost 1,300 jobs during 2000. and beef represent 59 percent and 14 percent. Trade follows closely at 25 San Antonio’s diversified manufac- percent, respectively, of agricultural percent of area employment. The trade turing sector, which makes up 8 receipts, according to the Texas sector added 4,600 jobs in 2000. percent of local employment, includes Agricultural Extension Service. Beef Government is the third largest sector, aircraft, apparel, electronics, food and and nursery products are the top accounting for 19 percent of area other manufacturing. Manufacturing agricultural products in Guadalupe employment. added 800 jobs in 2000. and Comal counties. In Wilson The large concentration of govern- San Antonio’s highly regarded County, 49 percent of agricultural ment workers stems from the five medical industry includes more than receipts came from beef. military bases located in the area. A

Projected 2001 County Total Agricultural Receipts

Bexar $68,478,000 Comal 11,164,980 Guadalupe 45,809,000 Wilson 39,851,600

BUSINESS CLIMATE

Tax Rates, 2000 Tax Rate per $100 Taxing Entity Valuation

City of San Antonio $0.58 San Antonio ISD 1.72 Community College 0.11 Hospital District 0.24 Bexar County 0.34 Total $2.99

Source: Bexar County Appraisal District

9 San Antonio MSA Retail Sales

Year Total Sales Sales per Capita

1990 $9,496,331,428 $7,154 1991 11,039,356,979 8,189 1992 12,105,945,320 8,801 1993 14,705,151,145 10,476 1994 15,369,980,292 10,772 1995 15,906,173,646 10,926 1996 16,490,712,367 11,135 1997 15,617,073,662 10,313 1998 16,309,977,475 10,590 1999 20,261,552,390 12,947 2000 21,312,825,574 13,384 2000 State Average $12,612

Source: Texas Comptroller’s Office

Exports to Selected Destinations – San Antonio MSA (in thousands) Market 1997 1998 1999 Percent of Trade

Canada 113,703 131,940 214,263 10.7 Mexico 772,330 1,097,303 1,270,394 63.4 Caribbean & Central America 15,471 11,048 26,152 1.3 South America 35,266 70,928 88,210 4.4 Europe 120,012 105,306 171,889 8.6 Asia 250,805 195,362 210,068 10.5 Africa 8,311 3,355 3,597 0.2 Near East 13,918 16,714 11,736 0.6 Australia 13,006 8,877 7,421 0.4 Total all Countries 1,342,965 1,640,833 2,003,729 100.0

Source: Office of Trade and Economic Analysis, International Trade Administration

xports were up 255 percent San Antonio is a business-friendly growth in the San Antonio economy. between 1993 and 1999. Since city. Economic development incen- International trade access from San E NAFTA was put in place in tives include expedited permitting, tax Antonio occurs via the U.S. border January 1994, exports to Canada have phase-in, job training and property tax with Mexico at Laredo, the ports of increased 192 percent, while exports reductions. The city is the eighth Corpus Christi and Houston. San to Mexico are up 397 percent. Mexico largest exporter in the state and is a Antonio is also home to a new Interna- is the country to which San Antonio major export sales location. In 1998, tional Center for Trade and Interna- exports the most products. Exports to the area had $1.6 billion in exports, tional Relations. The center works with Brazil were up the most during the and the figure grew to $2 billion in the North American Development 1993 to 1999 period, rising 2,253 1999. Bank (created under NAFTA), the percent from $2 million to $47 The North American Free Trade International Affairs Department, the million. Agreement (NAFTA) is fostering Free Trade Alliance, the Trade Com-

10 mission of Mexico, the Convention shoppers continues to boost San Missions. These attractions contribute and Visitors Bureau, as well as trade Antonio retail sales. The city hosts to the area’s high retail sales per and tourism offices for several Mexi- more than seven million visitors each capita. can states. The center, along with year. The San Antonio Riverwalk, the The City of San Antonio has a 15 KellyUSA’s existing and planned Alamo, Six Flags Fiesta Texas and Sea percent hotel-motel tax rate, while NAFTA facilities, will ensure that San World are popular attractions. In surrounding areas have a rate of 13 Antonio continues to be a hub of addition, the San Antonio Spurs, a percent. The sales tax rate in San international trade. National Basketball Association team, Antonio is 7.75 percent. The sales tax Increased spending by a growing play in San Antonio. San Antonio also rate in the surrounding area ranges population as well as by tourists and has a minor league baseball team, the from 7.75 to 8.25 percent.

EDUCATION

Educational Level, Persons Age 25 and Older (in percent)

Level of Education San Antonio MSA Texas

High school graduate 25.1 25.6 Some college, no degree 22.6 21.1 Associate’s degree 5.6 5.2 Bachelor’s degree 12.5 13.9 Graduate or professional degree 6.9 6.5

Source: U.S. Census Bureau, 1990

Local College and University Enrollment Fall 2005 2010 School 1999 (estimated) (estimated)

University of Texas at San Antonio 18,830 20,076 21,751 Alamo Community College District 39,878 41,983 44,932 St. Mary’s University 4,137 N/A N/A University of the Incarnate Word 3,702 N/A N/A Our Lady of the Lake University 3,474 N/A N/A Trinity University 2,622 N/A N/A University of Texas Health Science Center 2,543 N/A N/A Texas Lutheran University 1,486 N/A N/A Texas A&M-Kingsville at Palo Alto 150 N/A N/A

Sources: Educational institutions and the Texas Higher Education Coordinating Board, January 2001

11 t the University of Texas-San Research Park. The $19 million South 2001. St. Mary’s received a $2.1 Antonio (UTSA), a new engi- Texas Center for Biology and Medicine million grant from the U.S. Department A neering and biotechnology is an 87,000-square-foot building with of Education to fund high-tech class- building is planned. The City of San laboratories and offices. The SBC rooms. In November 2000, the $22 Antonio has contributed $1 million Teleconference Center provides a link million alumni athletics and convoca- towards the building, which will be to the South Texas Medical Center. tion center opened. The 130,000- constructed on the Loop 1604 campus. The University will add a bachelor’s square-foot center seats 3,500. Proposals for the $26 million project degree in emergency health sciences The University of the Incarnate are expected in 2002. A $4.3 million starting in fall 2001. Word opened a branch campus in building is planned as part of the phase The Alamo Community College Guangzhou, China in fall 2000. The three addition downtown. District consists of four colleges: China Incarnate Word Education The UTSA Institute for Economic Northwest Vista, Palo Alto, St. Phillip’s Center was created in conjunction Development received a $1.75 million and San Antonio College. St. Phillip’s with South China Normal University. grant from the U.S. Department of College began offering a real estate The center will offer intensive English Commerce in December 2000 to license program in January 2001. The study. construct new facilities for the institute school is also offering a certificate in The university opened a new at the downtown campus. The Texas railroad operations. location at Judson High School in Higher Education Coordinating Board The Alamo Community College Converse. The Adult Degree Comple- approved a $52 million academic District and the Edgewood Indepen- tion Program started in January 2001. building in October 2000. The dent School District opened the Texas A&M University-Kingsville building will serve as a front door to Westside Community Technology recently opened a branch on the Palo the campus. The new academic Center in February 2001. The center is Alto College Campus. The Palo Alto building will be one of three new at Southwest 40th Street and Old center enrolled about 150 students in facilities to be built in 2001. The board Highway 90 West. The district will fall 2000. also approved plans for a recreation begin the Alamo Area Aerospace The San Antonio Independent and wellness center and a child care Academy in summer 2001 at St. School District has $500 million in facility. Philip’s College Southwest Campus. construction projects planned or under In April 2000, construction began on Alamo Community College District way that will affect 92 schools. a third building on the UTSA down- will open a training center at KellyUSA Currently, 53 schools have projects town campus along with a $5 million in summer 2001. under construction. The district is underground parking garage. Trinity University is ranked number building a $5 million elementary UTSA is initiating a doctoral pro- one among Western universities school on West Quill Drive. gram in culture, literacy and language. according to U.S. News and World New gyms are under construction at At the UT Health Science Center in Report. A $23 million administration Herff, Lamar, Cotton, Highland Park, San Antonio, a $14.8 million center for and academic building is planned for Franklin, Knox, Pershing, Steele, longevity and aging studies is planned the university. The facility will be the Rogers Elementary, Stewart, White, with construction to begin in 2002. centerpiece of the 177-acre campus Wilson, Woodlawn Hills, Miller, The Sam and Ann Barshop Center for just north of downtown. The new Smith and Washington schools. Longevity and Aging Studies will be building will replace Northrup Hall The Northside Independent School housed in the Texas Research Park in but will retain the Northrup name. District is building a central school western Bexar County. A construction Construction of the four-story, 85,000- plant on Military Drive at a cost of date has not been set for the $20 square-foot building is expected to $495,000. At the same site, two million project. A $49.5 million begin in May 2002, with completion buildings are being constructed at a Children’s Cancer Research Center taking 18 to 24 months. cost of $9.4 million and $30 million. also is planned. U.S. News and World Report ranks The school district has proposed $495 In November 2000, two new St. Mary’s University as one of the best million in bond projects, including buildings were added to Texas universities in the West Region for nine new schools.

12 TRANSPORTATION AND INFRASTRUCTURE ISSUES

San Antonio Airline Boardings 1997 1998 1999 2000

San Antonio International Airport 3,484,141 3,505,372 3,538,243 3,647,094

Source: San Antonio International Airport

San Antonio Cargo Enplaned (Pounds) 1997 1998 1999 2000

San Antonio International Airport 79,409,742 92,958,859 87,736,109 83,103,078

Source: San Antonio International Airport

he San Antonio area is served by Antonio from the U.S. coasts and cities excess water from the Edwards Aquifer four Interstate highways: I-10, along the U.S.-Mexico border. or other source in a sandy aquifer in far T I-35, I-37 and Loop 410. U.S. Currently, San Antonio’s sole water South Bexar County for use during highways servicing the area are U.S. source is the Edwards Aquifer. Be- droughts or to meet peak summer 281, U.S. 90, U.S. 80 and U.S. 181. cause of limits on how much water can demand. The Texas Department of Transpor- be drawn from the aquifer, San The San Antonio Water System tation is widening Loop 1604 from Antonio is looking for other water (SAWS) signed a water supply agree- Culebra Road to U.S. 90. The project resources to meet the needs of the ment with the Guadalupe-Blanco River will begin in summer 2001 and be growing area. Authority and the Lower Colorado completed by the beginning of 2003. Water needs in San Antonio are River Authority (LCRA). The LCRA will The two-lane undivided highway will expected to double in the next 50 sell almost 49 billion gallons of water be turned into a four-lane divided years. At that time, the Edwards to San Antonio every year for the next highway. Aquifer is expected to supply slightly 50 years. San Antonio will pay the cost U.S. 281 will be expanded in less than half of the water San Antonio of building four 20-foot-deep, 1,200- northern Bexar and Comal counties. will need for homes and businesses. acre storage ponds. In addition, a 132- When completed the highway will In November 1998, the San Antonio mile pipeline will be constructed to look similar to an interstate highway. City Council approved a 50-year water transport water to Bexar County after it Construction on the first section, from plan, recommending a dual track to is diverted from the mouth of the Loop 1604 and moving northward, is follow in acquiring large amounts of Guadalupe River. The water is ex- expected to begin within five years. water, including sharing 4,000 acres of pected to start arriving in San Antonio The San Antonio International Canyon Lake and building a new water no later than 2010. SAWS opened a Airport, a full-service airport with an treatment plant. The San Antonio chilled water plant in downtown in international port of entry, has direct Water Authority assesses impact fees May 2001. service to all major hubs. Boardings for water and sewage service. The Bexar Metropolitan Water have continued to increase over the The San Antonio Water System District opened a $30 million water past three years. Twelve airlines obtains water from the Edwards- treatment plant in southwest San provide service out of two terminals, Balcones Fault Zone Aquifer. The Antonio in December 2000. The plant and 14 airlines provide cargo service. water system is evaluating other treats water from the Medina River. FlightSafety International added two supply alternatives, including develop- City Public Service is planning to flight-training programs and built a $1 ment of reservoirs. The Cibolo Reser- build a substation northwest of San million addition to its training center at voir is proposed for development by Antonio. The Van Raub electric San Antonio International Airport. The 2015. substation will serve the growing area addition was completed in November By 2003 an aquifer storage and in northwestern Bexar County and will 2000. recovery project will be completed. be located at Ralph Fair and Dietz- Union Pacific-Southern Pacific The $215.8 million project will allow Elkhorn roads. railroad provides rail service to San the San Antonio Water System to store

13 PUBLIC FACILITIES

n March 2001, the convention The sales tax will raise $65 million. Of Ground broke on the project in August center completed the second phase that, $45 million will be spent to 2000 with construction expected to be Iof its expansion, which included acquire between 6,000 and 9,000 completed for the start of the 2002–03 updates of the building's infrastruc- acres of park space located over the NBA season. ture, interior improvements and recharge zone. Bexar County purchased a 71,000- seating and carpeting. Phase one was In September 2000, construction square-foot building downtown at completed in 1999 and added 800,000 began on the Milam Park Memorial Iowa Street and Hoefgen Avenue. The square feet to the center. The third Fountain at 500 West Commerce building, after undergoing $600,000 in phase, which will start in 2001, will Street. Along the River Walk, several renovations, will house Bexar County extend the River Walk through the improvement projects are underway. records. convention center to HemisFair Park. Additional walkways are being added, The Texas A&M University System The $215 million expansion project and walls are being replaced. The plans to construct a $20 million Center will be funded by the hotel occupancy $12.5 million project is funded for Irrigation Technology on 500 acres tax. through county flood-control taxes and in south San Antonio. The facility will The city council approved $6.65 the city budget. help farmers and residents save water. million to purchase 1,034 acres of park Bexar County is planning a large The Salvation Army is planning to space at Windgate Ranch near the arena next to the old coliseum. The build a $4 million community center at Government Canyon State Natural rodeo will move to the new facility KellyUSA. The 40,000-square-foot Area. The project is being paid for along with the San Antonio Spurs and center will offer affordable child care, through a one-eighth-cent sales tax the San Antonio Iguanas ice hockey job-placement and after-school approved by voters in May 2000 to team. The $175 million SCB Center programs. protect San Antonio’s water source. will be located on East Houston Street.

URBAN GROWTH PATTERNS

Office I 10 Multifamily Retail SH 1604 I 35 US 281 Retail Industrial Single Family Office

Industrial SH 1604 Retail

I 10 I 410 Retail Industrial Retail

Single US 90 Family I 410

Retail I 37 Map 1. Growth Areas San Antonio, Texas Census Place Water Area Highway I 35 Interstate Highway Source: Real Estate Center at Texas A&M University

14 ap 1 shows the major growth Industrial expansion has been central area is expected to be stronger corridors within San Antonio. occurring on the north and northwest in the future. M Residential expansion has side of San Antonio. Retail expansion The downtown area continues to been occurring on the outer northwest has occurred on both the north and serve the tourism industry with a mix and west portions of the city. Office south sides of the city. of hotels and retail. expansion has occurred on the Single-family residential growth has northwest side of San Antonio and new been strong since 1993 and will office development is occurring on continue to be strong in the northwest Loop 410. area. Residential growth in the north

HOUSING

Housing Affordability – Fourth Quarter 2000

Percent of Households THAI for That Can Afford First-time Median-priced Home THAI* Homebuyers

San Antonio MSA 64 1.38 1.03

*The THAI is the ratio of median household income to the income required to buy the median-priced home using currently available mortgage financing. Standard financing is a 30-year loan covering 80 percent of the cost of the home. A THAI of 1.00 indicates that the median household income is just enough to qualify for a loan sufficient to purchase the median-priced home. Source: Real Estate Center at Texas A&M University

San Antonio MSA Single-family Permits

10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000

Source: U.S. Census Bureau

15 Average Sales Price of Single-family Home, San Antonio Area

$140,000

$120,000

$100,000

$80,000

$60,000

$40,000

$20,000

$0 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999

Source: Real Estate Center at Texas A&M University

Single-family Home Sales Volume, San Antonio Area

1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 May July April June March August October January February November December 1998 1999 2000 September

Source: Real Estate Center at Texas A&M University

16 San Antonio Plats Approved, 2000 Number Patio and Garden Number Single-Family Subdivisions of Lots Home Subdivisions of Lots

Bridgewood, Units 2B, 3, 6, 7, 8, 11 596 Sunset, Units 3,4,5,7 440 Caracol Creek, Units 3A, 3B 163 Mirasol Homes 118 Green Mountain Road, Unit 1 162 Woodthorn, Unit 1 111 Sunset, Units 2, 8A 162 Park Place, Unit 3 110 Raintree, Units 8, 9B 154 Highland Farms Two, Unit 1 103 Churchill Estates Phase B 151 Caracol Creek, Unit 4 94 Stonefield Units 6, 8 150 Blue Ridge 83 Tara West 144 Bridgewood, Units 4, 5 136 Hickory Hollow Unit 4 140 Villa Del Sol, Units 2, 3 135 French Creek Village 137 Marbach Gardens, Unit 4 62 El Sendero/Westlakes Unit 4 122 Candlewood Park, Unit 15 60 Spring Vistas, Units 9, 10 122 Villas of Fortuna 47 Dover Unit 3 120 Springview Unit 3, Phase 1 26 Sundance, Units 3, 4 105 Sunflower 17 Pinon Creek, Unit 1 89 Palm Lake 13 Villas Del Sol, Unit 1 70 Caterbury, Unit 1 70 Large Lot Subdivision Los Cedros East, Unit 2 70 Trails of Briggs Ranch, Unit 1 66 Becker Ranch Estates, Unit 2 60 Copper Ridge, Unit 1A 55 Las Lomas Phase IIIB 59 Fossil Ridge, Unit 1 45 Highland Farms, Unit 3 59 Windgate Ranch, Section 1 40 Moss Brook Estates North, Unit 1 58 Retablo Ranch, Unit 3 24 Promontory Pointe II, Unit 2 56 Champions Ridge, Unit 2A 19 Highland Farms, Unit 2 53 Chapala 10 Los Cerdos West, Unit 2A 48 San Pedro Hills, Unit 6B 44 Attached Townhomes Parklands, Unit 1 44 Carlson Park, Phase II 40 The Heights at Stone Oak, Unit 1 40 Historic Garden, Unit 2 24 Hunters Bend 40 DSGN Limited Townhouse 8 Century Oaks Estates, Unit 1A 35 Hills at West Creek, Unit 2 34 Hidden Oasis 33 Braunig Ranch Estates, Unit 1 28 Northampton, Unit 7A 28 Dellwood 25 Dell-Oak, Phase III 21

Source: City of San Antonio, Planning Department

17 Price Distribution of MLS Homes Sold, San Antonio Area (in percent)

1997 1998 1999 2000

Less than $60,000 22.7 23.2 21.5 19.5 60,000–79,999 19.9 19.8 20.2 18.8 80,000–99,999 16.1 16.2 16.4 16.4 100,000–119,999 10.3 10.5 10.8 10.4 120,000–139,999 8.6 8.8 8.6 9.1 140,000–159,999 5.7 5.6 5.8 6.2 160,000–179,999 4.1 3.9 3.9 4.4 180,000–199,999 2.7 2.9 2.8 3.4 200,000–249,999 3.2 3.8 4.5 4.8 250,000–299,999 2.2 1.9 2.1 2.6 300,000 or more 2.9 3.2 3.4 4.4

Source: Real Estate Center at Texas A&M University

n 2000, 8,407 single-family build- Antonio. The project at South surround the Briggs Ranch Golf Club, ing permits were issued, down from Zarzamora Street and I-35 will have with lots priced from $70,000 to I8,678 permits in 1999. The average homes priced from $75,000 to $130,000. $250,000. price of new home construction in Mirasol Homes is a 179-home On the northeast side at Woodlake 1999 was $86,200. In 2000, the planned development at General Parkway and Eisenhauer Road, average price of a new home was McMullen Drive and Old Castroville Northeast Crossing is a planned 1,499 $93,300. Road. The project is being developed home development. Homes will be Within the City of San Antonio, by the San Antonio Housing Authority priced from $70,000 to $100,000. 5,494 new homes were permitted in and will be completed in February In north central San Antonio, The 2000, down from 5,771 in 1999. 2002. Heights at Stone Oak is a 500-acre During 2000, 9,149 lots were platted, At Ingram and Culebra roads, a 23- master-planned community at Hardy up from 7,783. In the first quarter of acre mixed residential development is Oak and Wilderness Oak. Inside the 2001, 2,065 new homes were permit- planned by the San Antonio Housing development, Waterford Heights is a ted in the MSA. Authority. The site will have 51 single- 50-lot development with one-acre lots. A total of 15,392 existing homes family homes and 192 townhomes. In west Bexar County, Carlson Park were reported sold through the local Thirty-eight of the townhomes will be is under construction. The 200- Multiple Listing Service (MLS) during for low-income families. townhome and condominium devel- 2000, up from 15,083 in 1999. The An 86-lot, affordable-housing opment will have homes priced from average sales price for homes sold subdivision is expected to break $250,000 to $450,000. through the MLS in 2000 was $119,300, ground in summer 2001 at Loop 410 Near Schertz, construction started in with an average of five months of and Pearsall Road. the first quarter of 2001 on a 236-home inventory available. The average sales In west San Antonio, several new subdivision that will include an 18- price in 1999 was $112,300. subdivisions are planned. The Trails of hole golf course. The project is located At Fortuna Street and Horencia Briggs Ranch is a planned 2,500-acre on I-35. Drive, a 35-home subdivision is subdivision. The first phase, the Estates In Boerne, several new subdivisions planned with homes priced from at Briggs Ranch, will have 66 lots are under construction. Since 1996, a $65,000 to $75,000. averaging 2.5 acres in size. Construc- dozen high-end subdivisions have Lago Vista is a 650-home subdivi- tion on homes in the project began in been built in Kendall County. sion under construction in south San early 2001. The subdivision will

18 MULTIFAMILY

San Antonio MSA Multifamily Building Permits 12,000

10,000

8,000

6,000

4,000

2,000

0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000

Source: U.S. Census Bureau

San Antonio Apartment Statistics, March 2001 Texas Metro San Antonio Average

Average rent per square foot $0.70 $0.76 Average rent for units built since 1990 $0.83 $0.97 Average occupancy (in percent) 94.1 95.7 Average occupancy for units built since 1990 (in percent) 92.5 95.6

Source: Apartment MarketData Research

19 San Antonio Multifamily Plats Approved, 2000 Apartments With Ten or More Units Per Building Number of Acres

Springview, Units 1, 2 37.44 Mansion at Canyon Spring 32.43 Sendero Ridge Apartments 23.85 Costa Brava, Unit 1 23.69 Bristol Park at Encino Commons 21.10 Janar Westcreek 20.01 Summer City 19.87 Lodge at Sonterra 16.88 Ravinia 15.45 University Estates, Unit 17A 10.91 O’Keefe 3.97 Vista Verde, Unit 7A 1.68

Source: City of San Antonio, Planning Department

SH 1604 I 35 I 10 US 281

SH 1604

I 10

I 410 US 90 Map 2. Multifamily Building Permits, 2000 I 410 San Antonio, Texas Census Place Highway I 35 Interstate Highway I 37 Multifamily Source: San Antonio Building Permit Office

n 1999, new apartment construction minimal construction for several years. Within the city in 2000, 1,978 in the area made a major jump, San Antonio began to see an increase multifamily units were permitted, Iwith 5,027 building permits issued. in apartment construction in 1993. In compared with 4,352 in 1999, and This number fell to 2,063 in 2000. San the first quarter of 2001, 1,153 new 262 acres were platted for multifamily Antonio was one of many Texas cities multifamily units were permitted in the development, up from 242 in 1999. affected by apartment overbuilding in MSA. Rents and occupancy rates were the 1980s; the oversupply resulted in

20 unchanged from January 2000 to would include a four-story building and Lodge at Sonterra will have 326 units, March 2001 in San Antonio. Map 2 a parking garage. A construction date a clubhouse with a fitness center, a shows areas where multifamily permits has not been set. 36-seat theater and a billiard parlor. were issued. Encino Commons is planned at U.S. An $11 million, 229-unit apartment According to Grubb and Ellis, more 281 and Evans Road. The complex will complex broke ground in August than half of the city’s new construction have 324 units with completion of the 2000 on Huebner Road. is occurring on the city’s north side, first units expected at the end of Downtown, the San Antonio between Bandera Road and U.S. 281. summer 2001. Housing Authority is planning two In mid-2000, more than 5,000 units In southwest San Antonio at Loop projects. Rex Apartments will have were under construction. During 410 and Pearsall Road a 250-unit 200 units and Victoria Courts, 850 2000, 4,000 apartment units came on apartment complex is planned. Ground- units. Existing complexes at the sites line, according to the San Antonio breaking is expected in summer 2001. have been demolished. Apartment Association. In far west San Antonio at Garden The Friedrich Building on East The Villas of Westover Hills is a Brook a 78-unit apartment complex is Commerce Street will be converted planned multifamily project at Military planned for seniors and the disabled. into residential lofts that are expected Drive near Highway 151. Ground- Completion is expected in summer to open in 2001. In central San Antonio, breaking on the first 196 units was 2002. Construction began in November construction on a $13 million, 150- scheduled in spring 2001. The second 2000 on a 268-unit apartment complex unit apartment complex began in phase would add 200 units, but no on Ingram Road. January 2000 on Tree Line Park. construction date has been set. In north central San Antonio, apart- A 240-unit apartment complex A 175-unit apartment project is ments will be developed at Sonterra broke ground in October 2000 on planned along the San Antonio River at Boulevard and Stone Oak Parkway. The Prue Road. Nueva Street. The $18 million project

MANUFACTURED HOUSING

San Antonio MSA Manufactured Home Sales Proportion of New Manufactured Single-family Homes Homes Sold (in percent) 1997 2,433 26.5 1998 2,674 24.7 1999 2,945 26.2 2000* 1,818 22.9

*Through third quarter 2000 Source: Texas Manufactured Housing Association

21 San Antonio Plats Approved, 2000 Manufactured Home Subdivision Number of Lots

Foster Meadows Units 9, 14A 165 Honey Homes-Lackland City 77

Source: City of San Antonio, Planning Department

319-lot manufactured home March 2001. Woodlake, a 451-unit and I-10. A total of 140 homes are subdivision is planned at community in northeast San Antonio, planned. Construction started in spring A Southcross Boulevard near completed phase two in spring 2000. 2001. Loop 410 in southeast San Antonio. In Boerne, a manufactured home Infrastructure improvements began in subdivision is planned at John’s Road

SENIORS HOUSING

ndependence Hill Retirement and Flores Street. The 22,000-square- Antonio on Eisenhauer Road, con- Resort Community opened a $9 foot addition will have 42 beds. struction on a $29 million nursing Imillion assisted-living complex in Incarnate Word Retirement Commu- home began in May 2000. November 2000. The complex has 64 nity completed a 60,000-square-foot A 20,000-square-foot assisted-living suites. addition that includes 19 assisted- center opened in January 2000 in The Village At Rosillo Creek is an living units and 24 Alzheimer’s units in Seguin. The Seguin Assisted Living 84-unit seniors housing project to be spring 2001. Center has 30 units and cost $2 built at Eisenhauer Road and Walzem The San Antonio Freedom House million. Road. Construction is expected to will begin a $3 million, 27-bed The Lillian Hudspeth Nursing Home begin on the $10 million project in expansion during fall 2001. closed in Sonora in September 2000. summer 2001. On El Camino Real, construction on St. Francis Nursing Home broke a 51-unit seniors apartment complex ground in September 2000 on a $4 began in February 2000. In east San million addition at Woodlawn Avenue

22 RETAIL MARKET

Retail Property Statistics 2000 Power Centers Total Square Feet 4,914,950 Occupancy (in percent) 88.34 Neighborhood service Total Square Feet 14,854,087 Occupancy (in percent) 85.14 Community centers Total Square Feet 3,132,739 Occupancy (in percent) 83.52 Regional mall Total Square Feet 8,341,014 Occupancy (in percent) 84.27

Source: The Weitzman Group

Submarket Property Statistics, 4th Quarter 2000

Total Vacancy Rate Net Average Submarket Square Feet (in percent) Absorption Rent

North Central 8,857,492 9.67 –20,852 $13.88 North East 7,798,917 22.96 209,113 10.63 North West 9,204,967 12.49 –144,308 10.95 South Central 1,876,431 13.24 –18,999 9.82 South East 1,135,502 11.68 1,464 9.96 South West 2,069,481 19.09 –15,093 9.51 Total 30,942,790 14.86 11,325 $10.79

Source: The Weitzman Group

Hotel Occupancy and Rental Rates

1999 2000 San Antonio Texas San Antonio Texas

Occupancy rate (in percent) 66.2 65.0 66.2 65.7 Average daily rental rate $85.56 $85.67 $86.74 $86.45

Source: PKF Consulting

23 Hotel Occupancy and Rental Rates, Submarkets, 2000 Occupancy Average Daily Location (in percent) Rental Rate

Central business district 69.8 $105.84 North—airport 68.5 79.13 Northeast 58.0 52.58 Northwest—Fiesta 62.0 70.32 South San Antonio 56.5 48.24

Source: PKF Consulting

SH 1604 I 35 I 10 US 281 SH 1604 I 10 I 410 US 90 I 410 Map 3. Retail Building Permits, 2000 San Antonio, Texas I 37 Census Place Highway Interstate Highway I 35 Retail Source: San Antonio Building Permit Office

ap 3 shows the locations of centers are under construction on the On the River Walk, Manducas retail building permits issued Loop, two at Blanco and two more at opened in November 2000. During M in San Antonio during 2000. Bandera. The Forum, a new power 2001, Gallagher’s Steakhouse and The Weitzman Group reports that center at the northeast corner of I-35 Grand Central Oyster Bar will open. vacancy rates increased 1.7 percent and 1604, added 1.2 million square Roly Poly Rolled Sandwiches opened a during 2000. Rental rates increased 19 feet to the market. store in the food court at Methodist cents. Rents were up the most in the Hospital in September 2000. The north central sector, rising 49 cents. Restaurants company plans to add several loca- A total of 2.5 million square feet is San Antonio is expected to be the tions in San Antonio. expected to enter the market in 2001, fourth largest restaurant market in the Palm Restaurant, a steak and lobster including more than 1.9 million square state, with $3 billion in sales for 2001, restaurant, opened in October 2000. feet of space that was under construc- according to the Texas Restaurant Chili’s began construction on a new tion at the end of 2000. Association. Restaurant sales are restaurant on Bandera Road in October Loop 1604 is seeing major retail expected to grow 10.1 percent during 2000. A Red Lobster broke ground in construction activity. Four shopping the year. August 2000 on North U.S. 281.

24 Hotels-Motels at the southeast corner of I-35 and Pat Haverty’s Furniture plans to open Booker Road. two stores in San Antonio during fall A $230 million Sheraton Convention Home Depot opened a store in 2000 2001. One will be at DeZavala Road Center Hotel is planned for occupancy at the northeast corner of U.S. 281 and and I-10 West. Groundbreaking by late 2003. Sunset. Home Depot plans to open a occurred in April 2001 on an 8,000- The San Antonio Marriott Northwest store in Encino Park Shopping Center square-foot retail site at U.S. 281 and Hotel opened in December 2000. The at Evans Road and U.S. 281. Home Embassy Oaks. 11-story hotel has 296 rooms and is Depot also plans a store at Bandera The Forum, a $100 million shopping located on Loop 410. A Marriott Resort Trails Shopping Center at Bandera center, is planned for Selma at I-35 and 500-room hotel is planned at Bulverde Road and Loop 1604. Lowe’s Home Loop 1604. Retailers include Best Buy, and Evans roads. The resort will have Improvement is planning a store at I-10 Target, Ross Dress for Less, Office two golf courses, a 25-acre teaching and Callaghan Road. Max, Chili’s, Dress Barn, Super Cuts center and shops, in addition to 40,000 Wal-Mart is planning a 200,000- and Payless Shoes. The center com- square feet of meeting space and a spa. square-foot center at Loop 410 and pleted its 700,000-square-foot first The project is expected to cost more Rigsby Avenue, as well as an expan- phase in mid-2000. than $500 million when completed by sion to its supercenter at U.S. 281 and Encino Park Center is a 400,000- 2004. Loop 1604. square-foot project at U.S. 281 and La Quinta Inns is planning to tear A 700,000-square-foot shopping East Evans Road. The first phase was down two San Antonio hotels near the center called Bandera Point will open completed in late 2000 and includes airport to build a 270-room high-rise in 2001 at Bandera Road and Loop 200,000 square feet of space. replacement. The hotel will open in 1604. The center will include a On lower Broadway, a new self- December 2001 at Loop 410 at U.S. Lowe’s, SuperTarget, Ross Dress for storage project was developed on a 281. Less, Marshall’s, Old Navy, Barnes & former Ford dealership site. Another Budget Suites of America added 858 Noble and Linens n’ Things. self-storage project was developed on rooms in San Antonio in 2000. A $12.6 In north central San Antonio, phase the northeast side at Loop 1604 and million Budget Suites broke ground in three of the Northwoods Shopping Redland Road. Shurgard opened a March 2001 at Fredericksburg and Center broke ground in March 2001 at three-story ministorage facility on the Callaghan Roads. The hotel will have U.S. 281 and Loop 1604. Anchors northwest side of San Antonio and a 360 rooms. include Bed Bath & Beyond and two-story complex in Helotes in 2000. The Alamo National building Marshalls. The addition will add Construction began in spring 2001 downtown will be converted into a 116,000 square feet. on a 62,000-square-foot fitness facility 300-room hotel within three years. The Vineyard Shopping Center, a in north central San Antonio. The 24-story building is located on South 700,000-square-foot development at Spectrum Club at Rogers Ranch is St. Mary’s Street. The Riverwalk Vista Blanco Road and Loop 1604, will expected to open by the end of 2001 at is a 17-room bed and breakfast planned include a SuperTarget. Loop 1604 and Rogers Ranch Parkway. for the Dullnig Building at Losoya and The Strand shopping center will In north central San Antonio, Commerce streets. have 80,000 square feet of space at Academy Sports and Outdoors will By fall 2001, the Aztec Theater on Huebner and I-10 when it opens in build a store in the Northwoods the River Walk will become a 96-room 2001. Rector Shopping Center is a Shopping Center on Loop 1604. spa hotel. The project is at Crockett 38,000-square-foot center across from At U.S. 281 and Evans Road a and Commerce streets. North Star Mall on Rector Street. shopping center is planned at Stone Construction on the Alamo Suites Huebner Commons is an 82,000- Oak. Hotel began December 2000. The square-foot retail center under con- At Loop 1604 and U.S. 281 an ice $1.8 million, 65-room hotel is on El struction at Huebner and Vance rink project is under development. The Paso Street in central San Antonio. Jackson. $10 million project will have two NHL In southwest San Antonio, construc- Culebra Market Shopping Center regulation size ice rinks. The 85,000- tion began in April 2000 on a new will have a 75,000-square-foot H-E-B square-foot skating and entertainment motel on Military Drive Southwest at and an additional 85,000 square feet complex is scheduled to open in spring New Laredo Highway. In northeast of shopping space at Loop 1604 and 2002. San Antonio, construction began in Culebra Road. The center will be On the west side, a 24-acre retail January 2000 on a $12 million hotel on completed in fourth quarter 2001. center is planned at Callaghan Road Nacogdoches Road. A 121-unit hotel The Shops at La Cantera is a 1.2- and West Commerce Street. Down- broke ground on Culebra Avenue in million-square-foot mall planned at town, Goodwill opened a bargain January 2000. The northwest San Loop 1604 and La Cantera Parkway. center on West Commerce Street in Antonio hotel will cost $12 million. The mall will have 150 stores includ- September 2000. The Omni Hotel completed a $3.5 ing Foleys, Dillard’s, Nordstrom’s and On the northwest side at Loop 410 million renovation in June 2001. Neiman Marcus. and Highway 151, construction on the Microtel Inn & Suites opened in June Foley’s opened a department store in 200,000-square-foot phase II of 2001 on I-35 near Splashtown. South Park Mall in November 2000. Westside Commons is expected to Other Retail Burlington Coat Factory opened at I-35 start in early 2002. and Southwest Military Drive in spring In Boerne, Oak Park Village is a Ingram Ridge Theaters opened an 2001. 19,300-square-foot shopping center 18-screen theater, Live Oak Crossing,

25 on Bandera. The first shops opened in Avenue and Ramport Drive. The center 2000. Weiner’s closed one store in San spring 2001. Tenants include Block- will have 130,000 square feet. Antonio. Montgomery Ward closed buster Video, Wells Fargo Bank, Mail During 2000, Beall’s closed at the four San Antonio locations. Two Boxes Etc. and Pro-Cuts. Windsor Park Mall in addition to two HomePlace stores in San Antonio were Pedro Towne Center will break other locations. Handy Andy closed to close in spring 2001. ground in summer 2002 at San Pedro four stores in San Antonio during

OFFICE MARKET

Office Property Statistics

1998 1999 San Antonio central business district Total space (in square feet) 4,486,876 4,800,942 Average rental rate $13.55–$19.86 $14.21–$22.31 Occupancy (in percent) 87.8 85.9 North central Total space (in square feet) 6,657,654 7,220,232 Average rental rate $16.50–$20.10 $16.74–$20.00 Occupancy (in percent) 90.7 86.5 Northeast Total space (in square feet) 1,265,587 1,265,587 Average rental rate $14.42–$18.57 $14.25–$20.00 Occupancy (in percent) 88.9 87.9 Northwest Total space (in square feet) 5,930,271 6,377,589 Average rental rate $14.90–$20.28 $15.59–$20.51 Occupancy (in percent) 88.5 85.8 South Total space (in square feet) 126,753 126,753 Average rental rate $14.12 $14.12 Occupancy (in percent) 93.7 100.0 Total Total space (in square feet) 18,827,141 19,554,103 Average rental rate $15.40–$20.07 $15.18–$20.53 Occupancy (in percent) 89.2 86.3

Source: Grubb & Ellis

ap 4 shows the locations of percent at the end of 2000. Class A Medical Office office permits issued in the space vacancy fell from 12.9 percent At the University of Texas Health City of San Antonio in 2000. to 8.4 percent, according to Grubb and M Science Center, construction on a $60 San Antonio absorbed more than Ellis. million children’s cancer research 800,000 square feet of office space in During 2001, Class A vacancy rates center is expected to begin in spring 2000, according to Grubb and Ellis. are expected to fall and rental rates are 2001. The facility will be on Floyd Curl The citywide vacancy rate fell from expected to climb as fewer speculative Drive next to the ongoing $20 million 14.2 percent at the end of 1999 to 11.6 construction projects come on line. expansion of the Cancer Therapy and

26 Research Center, which includes two a $3 million ambulatory care canter at University Heights Boulevard. The new buildings with 70,000 square feet. Loop 1604. The center is expected to project will have two buildings with a A three-story medical office building be completed in February 2002. total of 126,365 square feet. Construc- broke ground in September 2000 at A 15,000-square-foot medical clinic tion was expected to begin in spring Ewing Halsell and Medical drives in was expected to open at KellyUSA in 2001. the South Texas Medical Center. Part June 2001. The KellyUSA Medical At University Park and De Zavala of the 105,000-square-foot building Center will offer family, pediatrics, Road, two flex-space buildings are will be leased to the Cardiology Clinic OB/GYN and occupational health under construction. The buildings are of San Antonio. services. adjacent to University Park Tech Christus Santa Rosa opened the five- Covenant Behavioral Health System Centers III and IV and total 165,000 story David Christopher Goldsbury on Huebner Road closed in November square feet. Center for Children and Families in 2000. North Central Baptist Hospital In North Central San Antonio at December 2000. The $19 million closed its pediatric intensive care unit Loop 1604 and Stone Oak Parkway, building includes a 17,500-square-foot in August 2000. four buildings totaling 100,800 square education conference center. Christus feet were started in January 2001. Santa Rosa’s downtown surgical tower Office Projects In north central San Antonio, La opened in January 2001. The 158,000- Harcourt Inc. is building a new Plaza Office Park will have buildings square-foot addition cost $25 million. corporate campus. The project is just ranging from 5,000 to 40,000 square A 30,000-square-foot medical office north of Loop 1604. The three- feet. Ground breaking was set to occur building is planned at Erie and Elmira. building, 558,000-square-foot com- in the first quarter of 2001. The project was expected to break plex will be completed in early 2001. Huebner Commons is a planned ground in early 2001. The building will house 700 employ- office and retail development at Vance South Texas OB/GYN completed a ees. Jackson and Huebner roads. The medical facility on McCullough at the In Northwest San Antonio, phase project broke ground in spring 2001 end of 2000. The building has 10,000 one of Tech Park broke ground at I-10 and will have 75,000 square feet of square feet. and De Zavala. The first building will office space. Ground breaking on a 48,000- have 70,000 square feet. Phase two The Nakoma Theater is being square-foot surgical center for San will consist of 60,000 square feet. converted to a 75,000-square-foot Antonio Orthopedic Group took place Phase one is expected to be completed office building called Cinema Plaza. in January 2001. The building will be in September 2001 with the second The project is located at U.S. 281 and called 400 Concord Plaza. phase of construction following. Nakoma Street. Methodist Health Care System will University Heights Tech Center is The Abbey is a planned 18,000- begin construction in summer 2001 on located at De Zavala Road and square-foot office building in Alamo

SH 1604 I 35 I 10 US 281 SH 1604

I 10 I 410 US 90 Map 4. Office Building Permits, 2000 I 410 San Antonio, Texas Census Place I 35 Highway Interstate Highway I 37 Office Source: San Antonio Building Permit Office

27 Heights on Austin Highway. Construc- The building is downtown on Covent struction began in September 2000 tion will begin during summer 2001. Street. and is expected to take a year to SBC Communications will move the McCombs Plaza, a 107,000-square- complete. headquarters of its high-speed Internet foot office building, is planned in north At KellyUSA, a 77,100-square-foot service subsidiary into the 206,000- central San Antonio at East Mulberry office building was completed in square-foot building that was once the Avenue and St. Mary’s Street. Con- August 2000. corporate offices of Builders Square.

INDUSTRIAL MARKET

Industrial Property Statistics 1999 2000

Standard Industrial Total space (square feet) 12,987,298 18,785,000 Average rental rate $4.08 $3.75 Occupancy (in percent) 85.0 83.4 R&D-Flex Total space (square feet) 7,875,272 3,977,000 Average rental rate $5.52 $7.10 Occupancy (in percent) 85.7 88.9 Totals Total space (square feet) 21,862,570 22,762,000 Average rental rate $4.08–$5.52 $5.52 Occupancy (in percent) 85.3 84.4

Source: Grubb & Ellis

ap 5 shows the locations of the Tri-County Business Park and located at Loop 1604 and Green industrial building permits 200,000 square feet by Zee Manufac- Mountain Road. M issued in San Antonio. The turing in the west submarket. Tristar Corporation plans to con- citywide vacancy rate is 15.6 percent, R.L. Worth and Associates has struct a $2 million, 60,000-square-foot according to Grubb and Ellis. In the broken ground on a fourth flex build- addition to its perfume manufacturing fourth quarter of 2000, 1.3 million ing in University Park Business Center. facility in Pleasanton. square feet of industrial space was The building will have 42,000 square An 800-megawatt power plant is under construction, compared with feet. being constructed in Seguin. Constel- 673,000 square feet at the same time At Loop 1604 and Highway 151, the lation Power Source expects the $340 in 1999. Rental rates for flex space are Vistas Business Park at Westover Hills million plant to be completed in June predicted to increase 5 percent in is planned. The 250-acre campus will 2002. 2001. have industrial, light office and Two industrial buildings are under Major construction projects under corporate users. construction in the Arion Business way at the end of 2000 included Green Mountain Business Park has Park. The park is located north of the 558,000 square feet for Harcourt in two buildings under construction, one San Antonio International Airport on north central San Antonio, 374,000 with 72,726 square feet and a second U.S. 281. Arion 16 will have 51,200 square feet by Block Distributing in with 38,951 square feet. The park is square feet, and Arion 17 will have

28 39,120 square feet. Arion 13 and Arion BudCo is developing a 288,000- Southwest Concrete Products 15 were completed during 2000. square-foot headquarters and ware- opened a concrete-block manufactur- A new steel factory is being devel- house facility just north of KellyUSA. ing plant in northeast San Antonio. The oped in northeast San Antonio. The The facility is expected to be com- 30,000-square-foot facility is on 68,500-square-foot facility is located pleted by November 2001. Ackerman Road. in the Woodlake Business Park.

SH 1604 I 35 I 10 US 281 SH 1604

I 10

I 410 US 90 I 410 Map 5. Industrial Building Permits, 2000 San Antonio, Texas Census Place I 37 Highway Interstate Highway I 35 Industrial Source: San Antonio Building Permit Office

CONCLUSION

an Antonio’s population is expected to expand job creation and Antonio MSA’s economy. Construc- expected to continue to grow. increase growth in the industrial tion activity is expected to remain S Most new job growth will come sector. strong in the multifamily and industrial from the services sector. The conver- NAFTA is expected to continue to sectors as many planned projects sion of Kelly AFB to private uses is have a positive impact on the San begin.

601-50-1482

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