San Antonio continues to rank among the top-performing secondary markets in the Sun Belt, supported by five active military installations, a rapidly expanding cybersecurity cluster anchored by Port San Antonio, and one of the most resilient healthcare economies in Texas. The metro's relative affordability compared to Austin and Dallas continues to attract both residents and businesses, fueling consistent population growth and broadening the commercial real estate demand base. Industrial and multifamily remain the two most active investment categories, while retail fundamentals have stabilized and office continues its slow restructuring. With strong household formation, a growing workforce in defense-adjacent tech, and significant infrastructure investment along Loop 1604 and Highway 90, San Antonio's CRE market is positioned for steady, durable growth through 2026 and beyond.

San Antonio Market Overview: Key Metrics

The San Antonio commercial real estate market in 2026 reflects a market shaped by Military and defense, Healthcare and biosciences, Cybersecurity and technology, Tourism and hospitality. Here are the key metrics investors and borrowers should know:

  • Multifamily Vacancy: 7.8% — above the national average as new supply is absorbed
  • Industrial Vacancy: 6.2% — normalizing as speculative development is absorbed
  • Office Vacancy: 19.4%
  • Retail Vacancy: 4.9%
  • Rent Growth: 2.8% year-over-year
  • Job Growth: 2.3% — outpacing the national average
  • Population Growth: 1.9% annually
  • Median Asking Rent: $1,480

Multifamily Outlook in San Antonio

San Antonio's multifamily market absorbed significant new supply over the past 24 months, pushing vacancy slightly above its historical average to approximately 7.8%, with the heaviest concession activity concentrated in the North Central and Far West Side submarkets where most Class A deliveries landed. Rent growth has moderated to roughly 2.8% annually, a healthy cooldown from the pandemic-era spike, and operators are finding stronger performance in Class B and C assets where affordability constraints are driving resident retention. Value-add acquisition activity remains strong across the South Side, Southtown, and older Wurzbach Road corridors where 1980s and 1990s vintage stock trades at meaningful discounts to replacement cost. As new supply tapers in late 2025 and into 2026, vacancy is expected to tighten and effective rents should recover ground across most submarkets.

Industrial & Logistics Market

San Antonio's industrial market is one of the tightest in Texas outside of Dallas-Fort Worth, with vacancy holding near 6.2% despite a wave of speculative development along the Highway 90 West corridor and the South Side near Toyota's manufacturing plant. Logistics demand from near-shoring activity tied to the Texas-Mexico trade corridor continues to push requirements for bulk distribution space, with tenants in the 50,000 to 300,000 square foot range most active. Port San Antonio on the southwest side remains the market's most strategically significant industrial campus, attracting aerospace, cybersecurity, and advanced manufacturing tenants with long-term lease commitments. Developers are pushing further along Loop 1604 South and into Bexar County's outer edges to find sites with the depth and infrastructure to support next-generation logistics and light manufacturing facilities.

Office & Retail Dynamics

San Antonio's office market continues to work through elevated vacancy near 19.4%, with Class B suburban product along the Northwest Expressway and Fredericksburg Road corridors experiencing the highest availability as tenants gravitate toward newer, amenity-rich product in Stone Oak, the Rim, and the Pearl District. Sublease space remains a headwind, though defense and healthcare tenants have provided a stabilizing floor for well-located Class A buildings near major medical centers and military corridors. On the retail side, the story is considerably more positive, with vacancy holding near 4.9% and grocery-anchored and necessity-based retail at Alamo Ranch, Westover Hills, and Stone Oak continuing to outperform. Tourism-driven retail along the Riverwalk and in the Pearl District maintains strong foot traffic and tenant demand, and neighborhood strip centers with strong Hispanic consumer bases on the South and West Sides are posting some of the market's best occupancy and renewal rates.

Financing Landscape in San Antonio

San Antonio benefits from a diverse and active lending community that includes regional and community banks with strong appetite for owner-occupied and small-balance commercial loans, agency lenders executing competitively on multifamily, and a growing presence of debt funds targeting value-add bridge opportunities in the $5 million to $30 million range. Life insurance companies remain active on stabilized industrial and grocery-anchored retail deals above $15 million, and CMBS execution has returned as a viable option for stabilized office and retail assets that struggle to attract portfolio lenders. SBA 504 and 7(a) volume is consistently high given the metro's density of small businesses, military-affiliated entrepreneurs, and healthcare operators seeking owner-occupied real estate solutions.

For borrowers in the San Antonio-New Braunfels area, current commercial mortgage rates range from 5.25% for agency multifamily to higher rates for transitional and value-add projects. Key factors that influence your rate include property type, leverage, sponsor experience, and asset location within the metro.

Top Submarkets to Watch

The San Antonio metro features several distinct submarkets that present unique investment opportunities:

  • Downtown
  • The Pearl
  • Stone Oak
  • Alamo Heights
  • New Braunfels
  • Boerne

Each of these submarkets has distinct characteristics in terms of tenant demand, development activity, and pricing. The top investment corridors in San Antonio include North Central/Stone Oak, Loop 1604 Corridor, Far West Side/UTSA, South Side/Brooks City Base.

Investment Outlook: San Antonio 2026

San Antonio's 2026 investment outlook is constructive, with industrial, multifamily, and necessity retail expected to attract the most capital as investors seek relative value compared to pricier Texas metros. The cybersecurity and defense expansion at Port San Antonio, continued population inflow from California and the Midwest, and a strong tourism base tied to the Alamo and Riverwalk provide a durable foundation for multi-sector demand. Borrowers who move decisively on well-located value-add assets in the first half of 2026 will benefit from a lending environment that is opening up as the rate cycle stabilizes, with agency execution on multifamily and regional bank appetite for industrial and retail deals both improving.

CLS CRE in San Antonio

CLS CRE provides commercial mortgage brokerage services throughout the San Antonio-New Braunfels metropolitan area, with access to 1,000+ lenders including banks, life insurance companies, CMBS conduits, agency lenders, debt funds, and credit unions. Whether you're acquiring, refinancing, or developing commercial property in San Antonio, our market expertise and lender relationships help you secure the most competitive terms available.

Explore our financing programs for San Antonio: