AT&T is leaving a 400,000-square-foot hole in downtown San Antonio’s office market as it considers making a similar move in Dallas.
The telecom giant is leaving its space at 1010 North St. Mary’s Street and shrinking its footprint to a 100,000-square-foot block at The Reserve in Westover Hills, at 9903 Westover Place, the San Antonio Business Journal reported. The outlet reported that CBRE brokered the deal.
AT&T will join Guidehouse at the Reserve, a consulting firm that leased 107,000 square feet there a year ago. The building was left vacant for about three years after Nationwide left the complex and sold it in 2021.
The announcement is another blow to downtown San Antonio’s beleaguered office market. For over a year, the city’s office vacancy rate has been stable at about 17 percent according to JLL. The downtown submarket, however, has seen vacancy rates as high as 27 percent. PwC, local insurance giant USAA and Visionworks have all recently parted ways with downtown for outer reaches of the city.
The move comes as AT&T considers a similar shift in Dallas.
The company currently leases 1.1 million-square-foot lease at the 37-story Whitacre Tower, at 208 South Akard Street in downtown Dallas. The lease ends in 2030, but AT&T is pondering a move to the Dallas suburbs, much to the dismay of Dallas politicians who say the massive vacancy left by AT&T would be a catastrophic blow to the downtown office market.
Executives have been touring sites like the Park at Legacy in Plano, but the firm’s plans remain unclear. AT&T already picked up office space in Richardson earlier this year, inking a deal to occupy 186,000 square feet at Lakeside Boulevard Tower in Richardson. The company has said it plans to grow its Richardson workforce from 400 to up to 1,400.
The company has been headquartered in Dallas since 2008, when the firm exited San Antonio for North Texas.
— Eric Weilbacher
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