San Antonio retail market vacancy on the rise

After being hit earlier this year with the closures of national retailers such as Circuit City, Mervyn’s and Linens N’ Things, the faltering economy continued to impact the local retail market over the past three months.

Sportsman’s Warehouse vacated its 47,000-sf location at The Legacy after having closed the location at Westover Marketplace last year.

According to the survey of nearly 44.5 million sf of area retail space conducted by NAI REOC Partners, the San Antonio retail vacancy rate climbed to 14.5 percent at the close of second quarter 2009, which is a marked increase from the 11.4 percent vacancy rate recorded a year ago.

The market grew by more than 3.5 million sf last year, but less than 849,000 sf of new retail space has been delivered to the area in the first half of the year with less than 250,000 sf expected to come online by year’s end.

In 2Q 2009, nearly 677,000 sf of new retail space came online led by the addition of Woodlake Crossing (305,231 sf) featuring Target, Ross Dress for Less, PetCo, Best Buy and several others.

Aside from the gains produced in the newly completed centers, activity within existing centers overall remains relatively slow, but leases are still being signed. Renewals and extensions led second quarter activity including Big Lots (29,875 sf) at Bandera Festival.

The impact of higher-priced new projects floated up average rental rates and now that the market is feeling the impact of a sluggish economy, quoted rental rates have begun to reflect the downturn. At the close of 2Q 2009, the citywide average quoted triple net rental rate for retail space in San Antonio inched up to $18.33 per sf annually.

Compared to a year ago, the average rent is up $0.86, a 4.9 percent increase, but the $0.10 gain over last quarter registers a growth rate of less than 1 percent.

From the TAMREC

HOME BUYER'S DOWN-PAYMENT ASSISTANCE IS AVAILABLE

Did you know that there are ways to get help with mortgage-related expenses in San Antonio? Home buyers in the Alamo City can accept both gifts and aid from nonprofit organizations and government agencies to assist in realizing the American Dream. Assistance programs vary by income and factors such as whether one is a first-time home buyer or a military veteran, but can provide thousands of dollars toward upfront expenses, fees, closing costs and the down payment.



Bexar County Department of Community Investment American Dream Downpayment Initiative: Provides up to $10,000 or 6 percent of the purchase price for first-time home buyers whose income does not exceed 80 percent of the median family income in the county. Excludes homes within the city of San Antonio. Buyer pays 1 percent of sales price.
Contact: (210) 335-6538, www.bexar.org/CDP/Housing.html

City of San Antonio’s Housing and Neighborhood Services Department’s Homeownership Incentive Program: Provides up to $12,000 to buyers earning less than 80 percent of the median Bexar County family income. Must buy a home up in the city limits worth no more than $110,000.

Down payment assistance for veterans: Includes up to $15,000 toward down payment and closing costs to veterans earning less than 80 percent of the median Bexar County income. No sales price cap. Monthly mortgage payment can equal up to 33 percent of monthly income, while total monthly debt payments cannot exceed 41 percent.
Contact: (210) 207-7881, www.sanantonio.gov/nad

Neighborhood Assistance Corp. of America: Charges no down payment, closing costs, points or application or origination fees; interest rate is 1 percent below base market rate; borrower must have 3 percent in escrow to cover prepaid fees and moving expenses; there are loan caps for Bexar County and all contiguous counties.
Contact: (210) 826-2828, www.naca.com

Neighborhood Housing Services of San Antonio Inc.: Provides up to $21,000 in second mortgage set at a 4 percent interest rate to cover fees and closing costs. Total loan package can be up to 105 percent of the purchase price. It helps buyers under 120 percent of the median family income in Bexar County. Buyers must attend home buyer classes.
Contact: (210) 533-6673, www.nhsofsa.org

Texas Department of Housing and Community Affairs Texas Lone Star Program: Provides up to 8 percent of the purchase price for down payment and closing costs as a 20-year second mortgage. CitiMortgage is the lender.
First Time Homebuyer Program: Provides up to 5 percent of the mortgage amount for down payment and closing costs to buyers with between 60 percent and 80 percent of the median family income. Repeat buyers cannot have owned a house within the last three years. Has higher interest rate.
Contact: (866) 535-2673 and (800) 792-1119, www.tdhca.state.tx.us/

Texas State Affordable Housing Corp. Professional Educators Home Loan Program: Provides 5 percent of the mortgage amount for down payment and closing costs to buyers with up to 140 percent of median family income. Must be full-time teacher, teacher aide, school librarian, school nurse, school counselor or full-time faculty member in a professional nursing or allied health program. Purchase price capped at $237,031 in San Antonio.
Contact: (512) 477-3555, www.tsahc.org

As with any important document affecting your legal rights, you should have an experienced real estate lawyer review your mortgage loan and related documents. San Antonio lawyer Trey Wilson and the law firm of R L Wilson, P.C. have significant experience in mortgage related transactions and litigation. Contact San Antonio attorney trey Wilson at 210/223-4100 or www.sa-law.com