Texas Retail Sector 'Firing on All Cylinders'

San Antonio's retail sector is experiencing a post-pandemic resurgence, marked by the highest level of retail construction since 2019. In 2025, the city added 561,000 square feet of retail space, a 33% increase from the previous year. This construction is largely driven by demand and pre-leasing for anchor tenants like H-E-B, Dick's House of Sport, Academy Sports, and Topgolf. Despite the increased square footage, San Antonio maintains a high occupancy rate, with 95.3% of retail space occupied by the end of 2025. The city has maintained a retail occupancy rate of 90% or higher for 15 years, reflecting a stable and robust market. Storefronts are filling quickly, and closures are being offset by expanding retailers backfilling vacant spaces. Weitzman anticipates a continued healthy balance between supply and demand in San Antonio's retail market into 2026. San Antonio's low unemployment rate of 4.2% as of September 2025 contributes to this positive outlook. Rental rates are also increasing, particularly for new construction, with landlords asking in the mid-$40s to $50 per square foot for high-visibility stores.