Downtown San Antonio’s office market could see renewed activity as Project Marvel, a $4 billion redevelopment anchored by a new Spurs basketball arena and entertainment district, advances. Office vacancies in the central business district remain high at nearly 27 percent, according to CBRE. However, brokers report that interest is growing among potential tenants following recent announcements about the project.
Large companies such as USAA, Visionworks, and PricewaterhouseCoopers have recently vacated significant amounts of space downtown. Despite this, inquiries from prospective tenants are increasing. Amegy Bank’s recent lease for 44,000 square feet at 300 Convent stands out as one of the few major deals in the area. Brokers believe that if momentum continues, more leases in the range of 5,000 to 20,000 square feet may follow.
Joe Bright, senior vice president at Partners Real Estate, noted that more corporate tenants are requesting tours and surveys downtown but many hesitate to commit. “It seems like there’s still a little bit of a hangup in the execution,” he said. Bright identified parking and traffic concerns as ongoing obstacles but added: “Once you start to see dirt moving … then it’ll switch.”
On the investment side, John Taylor, CBRE’s senior vice president in San Antonio, observed increased interest from buyers seeking quality buildings at competitive prices downtown. “I’ve actually received questions from a handful of clients saying, ‘Where are some really nice quality buildings for reasonable or aggressive economics right now?’” Taylor said. He indicated that downtown properties are becoming more attractive options.
The development aligns with a broader trend toward transforming central business districts into mixed-use neighborhoods rather than areas dominated solely by offices. However, leasing demand remains fragile and there is uncertainty about whether Project Marvel can significantly reduce vacancy rates.
Progress on Project Marvel depends partly on public funding decisions. In August, Bexar County Commissioners Court voted to send its portion of project funding to voters for decision this November. The San Antonio City Council has agreed to continue negotiations with Spurs Sports and Entertainment on key terms for the development; however, it remains unclear if Mayor Gina Ortiz Jones will maintain her opposition to the project.
For now, stakeholders are waiting for visible construction progress before expecting substantial changes in leasing activity or investment trends downtown.
