Texas Commercial Real Estate Sales 3rd QTR Update 2025: San Antonio & Austin Focus

Texas Commercial Real Estate Sales 3rd QTR Update 2025: San Antonio & Austin Focus

San Antonio’s commercial real estate market over the past year, according to CoStar data, has experienced a clear cooling trend with buyers gaining leverage and transactions occurring at significant discounts to asking prices. Here’s a sector-focused breakdown with your supplied statistics and credible market context integrated:

Market Overview & Key Metrics

  • Asking Price Per SF: $286

  • Sale to Asking Price Differential: -13.4% (properties are selling, on average, 13.4% below their asking price)

  • Total Sales Volume (Past 12 Months): $114M

  • Number of Properties Sold: 322

  • Average Months to Sale: 10.2 (illustrates a slow transaction pace)

  • Active For Sale Listings: 269

  • Total For Sale SF: 3.9 million

These metrics confirm that San Antonio is a buyer’s market: longer average months to sale, a double-digit discount from list prices, and a large selection.

Sector Breakdown

Office

  • Vacancy rates are rising and demand remains muted, mostly due to a post-pandemic reset in space needs and higher financing costs.

  • Office assets take the longest to sell and often close with substantial discounts.

Industrial

  • The industrial sector posted negative net absorption in Q1 2025, pushed by new supply outpacing demand and leading to a historic high vacancy of 9.9%.

  • While the sector is usually resilient, an oversupply in warehouse/distribution means properties are lingering on the market and selling at discounts.

Retail

  • Retail is a mixed bag: Core locations retain some heat thanks to population growth, but neighborhood retail often faces longer timelines and steeper price negotiations.

  • A strong pipeline in new construction has led to some oversupply, especially in suburban areas, further increasing buyer options and leverage.

Multifamily

  • Multifamily sales are subdued; while rental demand remains ok, new deliveries and softer rent growth have lengthened sale cycles and led to more incentives for buyers.

Short-Term Rentals (STR)

  • STR opportunities are focused in neighborhoods with tourism or medical hubs, but stricter city policies and more supply mean pricing must be keenly competitive to close sales within a reasonable timeframe.

Market Temperature: Slow and Buyer-Leaning

Given a 13.4% average discount to asking, 10+ months to sale, and rising active listings, San Antonio’s CRE market is sluggish for sellers but full of opportunity for patient and strategic buyers willing to negotiate. Sellers should expect longer waits and may need to adjust pricing for success.

For further analysis, see 2025 San Antonio Real Estate Market Trends — LRG Realty and the Cushman & Wakefield MarketBeat.