San Antonio, Texas, January 20, 2026
Retail construction in San Antonio has surged to its highest level since 2019, with over 600,000 square feet of new and expanded retail space expected. The city boasts a strong retail occupancy rate of 95.2%, driven by significant developments like the Live Oak Town Center expansion and new grocery store openings. This growth reflects a healthy balance between supply and demand, showcasing the city’s vibrant retail market and sustained investment interest.
San Antonio’s Retail Construction Reaches Pre-Pandemic Levels
San Antonio, Texas – Retail construction in San Antonio has surged to its highest level since 2019, with over 600,000 square feet of new and expanded retail space expected to be delivered by the end of 2025. This growth reflects a strong demand for retail space in the city, as the retail occupancy rate remains robust at 95.2%, marking the 15th consecutive year the rate has been 90% or higher.
Key Drivers of Retail Growth
The surge in retail construction is driven by several significant projects:
- Live Oak Town Center Expansion: Adding a 100,000-square-foot Dick’s House of Sport, enhancing the center’s appeal to shoppers.
- H-E-B Store at Shops at Babcock: A new 117,000-square-foot store is under construction, catering to the growing demand for grocery options.
- Potranco/CR 381 Expansion: A 19,800-square-foot addition featuring dining outlets and wellness services, set to open in late 2025.
- Lambda Crossing: A 50,000-square-foot retail space at Texas 211 and Lambda Drive, with a mix of national and regional tenants, expected to break ground next year.
High Occupancy Rates and Market Dynamics
Despite the increase in retail space, the city’s retail occupancy rate remains strong at 95.2%, indicating a healthy balance between supply and demand. This high occupancy rate is attributed to several factors:
- Rapid Tenant Absorption: New retail spaces are quickly filled by expanding retailers, maintaining low vacancy rates.
- Limited New Construction: The pace of new retail construction has been relatively slow, leading to a premium on existing spaces.
- Attractive Rental Rates: Average rental rates for small-shop spaces in new projects have reached up to $50 per square foot, reflecting strong demand.
Investment and Development Trends
The retail construction boom has attracted significant investment and development activity in San Antonio:
- Headwall Investments: Acquired The Colonnade Retail Center, marking a significant expansion in the city’s retail sector.
- CBG Commercial Real Estate: Announced plans for Lambda Crossing, a 50,000-square-foot retail development on the far West Side, highlighting the area’s growth potential.
- Sullivan Commercial Realty: Invested $2.5 million in the Shops at Ladera, a 25,000-square-foot project near major residential neighborhoods, with construction set to begin in October 2025.
Conclusion
San Antonio’s retail sector is experiencing a significant resurgence, with construction reaching pre-pandemic levels and occupancy rates remaining high. This growth is driven by major development projects, rapid tenant absorption, and strong investment interest, positioning the city as a vibrant hub for retail activity in the region.
Frequently Asked Questions (FAQ)
What is the current retail occupancy rate in San Antonio?
The retail occupancy rate in San Antonio is 95.2%, marking the 15th consecutive year the rate has been 90% or higher.
What are some major retail construction projects in San Antonio?
Notable projects include the Live Oak Town Center expansion, H-E-B store at Shops at Babcock, Potranco/CR 381 Expansion, and Lambda Crossing.
Which companies are investing in San Antonio’s retail sector?
Companies like Headwall Investments, CBG Commercial Real Estate, and Sullivan Commercial Realty are actively investing in San Antonio’s retail developments.
How does the retail construction surge impact the local economy?
The surge in retail construction contributes to job creation, increased consumer spending, and overall economic growth in San Antonio.
What factors contribute to the high retail occupancy rate in San Antonio?
Factors include rapid tenant absorption, limited new construction, and attractive rental rates for retail spaces.
Key Features of San Antonio’s Retail Construction Surge
| Feature | Details |
|---|---|
| Retail Occupancy Rate | 95.2%, marking the 15th consecutive year the rate has been 90% or higher. |
| Major Projects | Live Oak Town Center expansion, H-E-B store at Shops at Babcock, Potranco/CR 381 Expansion, Lambda Crossing. |
| Investment Activity | Headwall Investments, CBG Commercial Real Estate, and Sullivan Commercial Realty are actively investing in retail developments. |
| Rental Rates | Average rental rates for small-shop spaces in new projects have reached up to $50 per square foot. |
| Economic Impact | The surge contributes to job creation, increased consumer spending, and overall economic growth in San Antonio. |
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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.
