San Antonio Northwest Office Market Report — Q2 2026

The bifurcation between trophy Class A and the rest of the market widened again in Q2. La Cantera Heights, Sonterra Park, and the Stone Oak Parkway trophy assets are running tight enough that the better-credentialed tenants are seeing real competition for the corner suites and contiguous floor-plates over 25K SF.

Concession depth is the cleanest signal. We're seeing TI packages on Class A new deals settle around $45/SF — meaningful compression from the $55/SF range that dominated late 2025 — and free rent on 10-year terms typically lands in the 4-6 month band, down from 6-9 months a year ago. Landlords are testing the market for whether the next move is a rent push rather than a concession compression.

Class B asking rents look stable on paper at ~$24.80/SF FSG, but the realized rates after concession-adjusted analysis are 8-12% below asking in most Q2 2026 transactions we underwrote. Vacancy in the Class B set sits closer to 18%, and several mid-size Northwest B assets are quietly testing conversion-to-flex or medical-office repositioning.

For tenants with 3-10K SF requirements that don't need trophy address, Class B Northwest remains the best value in San Antonio — and the negotiation leverage is real.

Tenants with leases expiring in 2027 should consider locking in now — trophy concessions are unlikely to deepen from here, and the rent-push talk among landlords is more than rumor.

Owners holding stabilized Class A in primary Northwest locations should test the market for full payouts — cap rates have firmed and the buyer pool for $20-50M assets in this submarket is the deepest it's been since 2022.

Class B owners should run the conversion math seriously. The medical-office repositioning play has worked for several mid-size assets here in the past 18 months.