The northwest quadrant of San Antonio is one of the best examples of a neighborhood in a growth cycle. As highlighted in the previous blog article, this area has excellent linkages and several major employers have recently relocated to the neighborhood. In addition to the new office development there is significant retail, medical office, and light industrial development currently under construction.
Phase V of the RIM shopping center is in mid-development and will add 259,000 square feet of retail and specialty space. Hobby Lobby will anchor this portion of the development and the remaining tenant mix will include various national retailers and restaurants. Top Golf has also chosen the Rim for its first venue in San Antonio. The sport and entertainment facility is projected to open in the fall of 2014.
Two new medical office developments will also be located in the area. The Victory Medical Center has completed its hospital campus in the Landmark development. The hospital is a specialized facility that focuses on neurosurgery, orthopedic surgery, and neuro-spine surgery. The original project cost was estimated at $49 million. A second acute care hospital and attached medical office building is under construction at 5510 Presidio Parkway. The Forest Park Medical Center is being developed by Dallas based Vibrant Healthcare Management LLC. The hospital will include 12 operating rooms and a 24-hour emergency department. The construction cost was originally projected at $90 million.
The northwest market area is not generally thought to be a hotbed of industrial development; however, there are several light industrial projects in various stages of development. The largest project is in the Oaks at University Business Park. R.L. Worth has recently broken ground on a two-story building which will contain 80,000 square feet and is 50% pre-leased. Cavender & Hill Properties is also developing the University Oaks Corporate Center at Quarry Run and Tradesman Drive. Lot sizes range from 1 to 3.92 acres and the master planned business park will have direct access to Interstate Highway 10 and Loop 1604.
To conclude, neighborhoods experience cycles of development and activity. The Northwest sector of San Antonio is in a growth phase experiencing significant commercial development in each of the major property types. Strong residential demand will continue to support new commercial development.