San Antonio’s Visionworks Moves Headquarters: A Shift in the Office Landscape
In an interesting turn of events for San Antonio’s business scene, eyewear retailer Visionworks is packing up its bags and moving its headquarters from downtown back to the North Side. This change is yet another sign of the struggles the downtown office market is facing, particularly in the wake of the pandemic.
The Big Move
After over a decade of calling the city center home, Visionworks has decided to vacate more than 150,000 square feet at the IBC Centre complex located at 175 E. Houston St., choosing instead to downsize to a more manageable 30,000 square feet office space at 19100 Ridgewood Parkway, which is nestled near the Stone Oak area.
A spokesperson for Visionworks shared that, “Like many companies who transitioned part of their workforce to a remote model, we no longer need as much office space as we have today.” This is a sentiment echoed across many businesses adapting to changing work environments. The headquarters is set to officially make the move by the end of this year, focusing on a space designed for both onsite and hybrid employees.
The Downtown Dilemma
Visionworks isn’t alone in this migration. The downtown area has seen other notable tenants make similar decisions. For instance, specialty insurer Argo Group International Holdings Ltd. left behind 85,000 square feet in 2022, opting for a smaller 25,000-square-foot space in the Soto building at 711 Broadway.
With downtown San Antonio housing nearly 6 million square feet of office space, the current vacancy rate stands at a concerning 24.3%. This is significantly higher than the 16.6% vacancy rate found in suburban areas. As commercial real estate experts from Partners have noted, many large employers have downsized or relocated since the pandemic began.
Office Changes Nationwide
For comparison, other major companies have made notable moves as well. For instance, USAA vacated about 565,000 square feet of office space, leaving both One Riverwalk Place and 300 Convent St. mostly empty. To help fill this gap, the University of Texas at San Antonio is purchasing the huge 265,000-square-foot One Riverwalk Place to establish academic departments and support services.
Interestingly, while many traditional office tenants are moving out, coworking spaces are filling some of these vacancies. For example, a new Venture X franchise is set to take over nearly 15,804 square feet at 500 Navarro St., with plans to open later this year. Other coworking providers like Common Desk and Geekdom are also ramping up their offerings downtown, catering to the evolving needs of professionals who may prefer flexible work arrangements.
Shifting Trends
The trend towards flexible workspace solutions is becoming increasingly popular as companies navigate the volatility of hybrid work models. Steve Triolet, senior vice president of research and market forecasting at Partners, noted that many businesses are looking for suitable space to make quick transitions as their lease terms come up. This creates a favorable landscape for coworking operators, which currently have a total of about 50,000 square feet of space in downtown San Antonio. However, this pales in comparison to the 250,000 square feet available in the North and Northeast areas.
The Road Ahead
While the situation in San Antonio is concerning, it’s not as dire as in cities like Dallas, Houston, and Austin, where vacancies exceed 20%. San Antonio has not seen a surge in new office construction recently, leading to a slower trend of “flight to quality” as companies seek newer, more amenitized spaces that are attractive to potential employees.
In conclusion, as Visionworks makes its move back to the North Side, it’s clear that the commercial real estate landscape is shifting in response to the new normal of hybrid work. Only time will tell how these changes will affect San Antonio’s office market, but one thing is for sure: adaptability will be key for businesses navigating this evolving environment.
