Leasing activity in the third quarter generated 54,291 square feet of positive net absorption which boosted the year-to-date total net gain to 107,888 square feet. At the close of the quarter, the citywide vacancy rate improved to 18.4% compared to 19.3% last quarter but new supply added over the past twelve months pushed vacancy up compared to 17.9% recorded last year at this time.
Over the same time, the average quoted full-service rental rate climbed $0.29 since last quarter to reach $22.60 per square foot per year – up $0.83 or 3.8% compared to a year ago.
The market continues to change and grow. Residential growth in the Far West sector, for example, has attracted practices to the emerging medical hub situated along Highway 151 where construction continues on Westover Medical Plaza II (60,500 sf). In the Northeast sector, construction is nearly complete on the two-building Schertz Parkway Professional Plaza. Looking ahead, the new $80 million Mission Trails Baptist Hospital is expected to bring about some changes in the Southeast quadrant when it comes online in June 2011 and replaces the decades-old Southeast Baptist Hospital currently located on Southcross Blvd.