Visionworks Moves Headquarters from Downtown to North Side: San Antonio Sees Another Blow to City Center
San Antonio’s Office Market Takes Another Hit
San Antonio– The struggling downtown office market in San Antonio, which is yet to recover fully after the pandemic hit, has received another blow. Visionworks of America, the leading eyewear retailer, is planning to move its headquarters back to the North Side of the city, after more than a decade in the city center.
The company plans to vacate its current office space, spanning more than 150,000 square feet in the IBC Centre complex at 175 E. Houston St. It aims to downsize to 30,000 square feet in an office building at 19100 Ridgewood Parkway, close to Stone Oak.
A Shift Towards Remote Work and Downsizing Office Space
“Like many companies who have transitioned part of their workforce to a remote model, we no longer need as much office space as we have today,” a Visionworks spokesperson stated. They further explained that the Visionworks headquarters will be relocating to a smaller space in San Antonio by the end of this year, which is optimized to accommodate onsite and hybrid employees.
History and Impact of Visionworks’ Downtown Presence
Visionworks had initially leased space at the IBC Centre back in 2011 and received subsidies to expand there from its previous location in Castle Hills. The downtown area, currently making up just about 6 million square feet of the approximately 46 million square feet of offices in the metropolitan area, has been hard hit by this downsizing. Currently, the vacancy rate in the city center stands at a high 24.3%, as compared to the 16.6% rate across the suburbs, according to Partners, a commercial real estate firm.
Effects of Office Downsizing in Downtown San Antonio
Large tenants have been consistently moving out or reducing their office footprints since the onset of the pandemic. “It’s a floor here, it’s a floor there,” said Steve Triolet, senior vice president of research and market forecasting at Partners. Visionworks’ move stands out, as most large corporations have chosen to remain in the same location, only opting to downsize their requirements.
Possibility of a Move Towards Coworking Spaces
As the office market downtown continues to grapple with high vacancy rates, coworking operators are seizing the opportunity to fill some of the now-empty spaces. This growing trend towards flexible and shared office spaces is also turning out to be an attractive option for companies uncertain about future leasing decisions amid this new era of hybrid work.
A Silver Lining in the Gloomy Office Space Scenario
Despite the noticeable trend of companies transitioning out of downtown, Triolet noted that the vacancy in San Antonio is not as severe when compared to Dallas, Houston, and Austin, where rates are upwards of 20%. While no new office spaces have been constructed in San Antonio in recent years, this may be leveraged as a positive point, hinting at “a flight to quality” where companies are favoring upscale offices close to restaurants and coffee shops to incentivize employees returning to the office.
Fallout of Visionworks’ Departure from Downtown
As Visionworks departs from its IBC Centre office, the full impact on the San Antonio downtown office market remains to be seen. However, it’s clear that shifts in work habits and changing company needs due to the ongoing effects of the pandemic continue to reshape the landscape of commercial real estate in the city.