San Antonio, Texas, January 1, 2026
In 2025, San Antonio’s commercial real estate market demonstrated significant growth across multiple sectors. Notable expansions in retail, office leases, and industrial developments showcased the city’s thriving economy. Major projects such as the Core5 Logistics Center and retail expansions contribute to this dynamic market while community-focused infrastructure like the Arboretum San Antonio highlights the city’s commitment to green spaces. Despite challenges like high vacancy rates in downtown offices, initiatives like ‘Project Marvel’ signal a promising revitalization for the area.
San Antonio’s Commercial Real Estate Market: A Year in Review
San Antonio, Texas – In 2025, San Antonio’s commercial real estate (CRE) market experienced significant developments across various sectors, highlighting the city’s dynamic growth and evolving landscape.
Retail Sector Expansion
The retail market saw substantial growth, with over 600,000 square feet of new and expanded retail space projected by the end of 2025. Major projects like the expansion of Live Oak Town Center, which added a 100,000-square-foot Dick’s House of Sport, were key contributors to this surge.
Office Market Developments
The office sector remained relatively stable, with a vacancy rate of 19.9% in the second quarter of 2025. Notably, Project Cowork signed a 19,000-square-foot lease at the Legal Professional Building, marking the largest new office lease downtown that year.
Industrial Sector Growth
The industrial market rebounded, with the completion of the Core5 Logistics Center at Interstate 10 in Schertz, offering 1 million square feet of modern logistics space. This development underscores the region’s appeal for distribution and logistics operations.
Notable Redevelopment Projects
Several redevelopment initiatives gained momentum, including the Continental Block Project, which involves rehabilitating historic buildings and constructing a 16-story tower with mixed-income apartments and commercial spaces. Additionally, the Tower Life Building is being converted into mixed-income apartments and retail spaces, contributing to downtown revitalization efforts.
Infrastructure and Community Developments
The completion of the Interstate 10–Loop 1604 interchange, featuring the state’s tallest highway flyover ramp, improved connectivity and supported regional growth. Community-focused projects like the Arboretum San Antonio, transforming the former Republic Golf Club into a 188-acre arboretum, highlight the city’s commitment to green spaces and community engagement.
Challenges and Market Dynamics
Despite growth, the market faced challenges, including a 27% vacancy rate in downtown office spaces. However, the announcement of “Project Marvel,” a $4 billion redevelopment anchored by a Spurs basketball arena and entertainment district, has sparked renewed interest and potential revitalization in the area.
Conclusion
San Antonio’s commercial real estate market in 2025 demonstrated resilience and adaptability, with significant expansions, redevelopments, and infrastructure projects contributing to the city’s economic vitality and urban transformation. Local entrepreneurs and stakeholders remain critical drivers of success and innovation in the marketplace.
Frequently Asked Questions (FAQ)
What is the projected retail space expansion in San Antonio by the end of 2025?
Over 600,000 square feet of new and expanded retail space is projected by the end of 2025.
Which office lease was the largest in downtown San Antonio in 2025?
Project Cowork signed a 19,000-square-foot lease at the Legal Professional Building, marking the largest new office lease downtown that year.
What is the vacancy rate in downtown San Antonio’s office market as of the second quarter of 2025?
The vacancy rate in downtown San Antonio’s office market was 27% as of the second quarter of 2025.
What is the Interstate 10–Loop 1604 interchange in San Antonio known for?
The Interstate 10–Loop 1604 interchange features the state’s tallest highway flyover ramp, standing at approximately 128 feet above grade.
What is the Arboretum San Antonio project?
The Arboretum San Antonio project involves transforming the former Republic Golf Club into a 188-acre arboretum dedicated to showcasing regional trees and other plants.
Key Features of San Antonio’s 2025 Commercial Real Estate Developments
| Sector | Key Developments | Impact |
|---|---|---|
| Retail | Expansion of Live Oak Town Center with a 100,000-square-foot Dick’s House of Sport | Significant increase in retail space, enhancing consumer options and economic activity |
| Office | Project Cowork’s 19,000-square-foot lease at the Legal Professional Building | Largest new office lease downtown, indicating demand for flexible workspaces |
| Industrial | Completion of Core5 Logistics Center at Interstate 10 in Schertz | Introduction of 1 million square feet of modern logistics space, supporting distribution and logistics operations |
| Redevelopment | Continental Block Project and Tower Life Building conversion | Revitalization of historic buildings into mixed-use spaces, contributing to downtown growth |
| Infrastructure | Completion of the Interstate 10–Loop 1604 interchange with the state’s tallest highway flyover ramp | Improved connectivity and support for regional growth |
| Community | Arboretum San Antonio project transforming former Republic Golf Club into a 188-acre arboretum | Enhancement of green spaces and community engagement opportunities |
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Author: STAFF HERE SAN ANTONIO WRITER
The SAN ANTONIO STAFF WRITER represents the experienced team at HERESanAntonio.com, your go-to source for actionable local news and information in San Antonio, Bexar County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Fiesta San Antonio, San Antonio Stock Show & Rodeo, and Dia de los Muertos. Our coverage extends to key organizations like the Greater San Antonio Chamber of Commerce and United Way of San Antonio and Bexar County, plus leading businesses in retail, insurance, and energy that power the local economy such as H-E-B, USAA, and Valero Energy. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HEREHouston.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
