The atmosphere in San Antonio downtown real estate is quite subtle these days.

It's not a market that is guaranteed to rise like before, but it's also hard to say that it has completely cooled off.

In short, there is a clear temperature difference by sector.

First, looking at the downtown office market, we cannot avoid discussing vacancies.

Since the pandemic, remote work and hybrid work have become established, and downtown offices are not as fully occupied as they used to be.

In particular, there seem to be noticeably more vacant offices in the downtown area.

Spaces that used to be occupied entirely by large corporations or institutions are now empty, and it's common to find tenants for entire floors.

Due to this trend, new office developments have almost come to a halt, and instead, there are more movements to remodel existing buildings or change their use.

On the other hand, the atmosphere in retail and commercial spaces is different. There is still demand for shops, restaurants, and cafes located in downtown and tourist routes.

Areas around the River Walk or those with many events rarely have long-lasting vacancies, and when a business leaves, another quickly takes its place.

So overall, retail vacancies are relatively low, and rental prices are quite stable.

Residential real estate is at the core of downtown redevelopment. In recent years, the supply of apartments and condos has increased significantly, and now the pace is definitely being adjusted.

Thanks to this, vacancies have not exploded, and rental prices are closer to adjustments and stability rather than skyrocketing.

The composition of people living in downtown has also changed from before. It's not just tourists; it includes professionals and retirees who prefer urban living, as well as short-term stay professionals.

Looking ahead, in the short term, the issue of office vacancies is likely to remain a burden.

However, in the long term, there is a possibility that downtown redevelopment projects, events and tourism infrastructure, and the influx of residential population will gradually find a balance.

San Antonio is not a market with extreme fluctuations like other major cities; it is a city that is slow but has a clear direction.

Therefore, downtown real estate is more suited for investments that take time rather than aiming for quick profits.

While having many vacancies can be a risk, I think it could also present opportunities if chosen wisely.