Weitzman’s new report for the San Antonio retail market highlights strong leasing demand that lifted occupancy during 2021. Robert King, senior vice president with Weitzman San Antonio, covers some of the report’s key findings.

Connect CRE: How does occupancy look?

King: After declining in 2020, occupancy reached reach 94 percent in 2021, which compares favorably to the pre-pandemic rate of 94.5 percent at year-end 2019.

Connect CRE: Why did occupancy improve?

King: Demand increased for existing space, with new leases ranging from restaurants to fitness to even a discounter that backfilled a vacant department store. Also, we only saw a couple of large new vacancies.

Connect CRE: What about new construction?

King: Pandemic delays and rising costs resulted in 2021 deliveries totaling only 354,000 square feet in new and expanded projects, primarily for a new H-E-B, plus neighborhood retail and community center expansions. Construction in 2022 will include new anchors like Floor & Décor.