AT&T is vacating its 400,000-square-foot office at 1010 North St. Mary’s Street in downtown San Antonio and will reduce its local presence to a 100,000-square-foot space at The Reserve in Westover Hills. The move was facilitated by CBRE, according to the San Antonio Business Journal.
At The Reserve, AT&T will join consulting firm Guidehouse, which leased 107,000 square feet there last year. Previously, the building had been empty for about three years after Nationwide left and sold the property in 2021.
This departure adds to challenges facing downtown San Antonio’s office market. JLL reports that while the citywide office vacancy rate has held steady at around 17 percent for over a year, vacancies downtown have reached as high as 27 percent. Other major tenants such as PwC, USAA, and Visionworks have also recently relocated from downtown to other parts of the city.
AT&T is considering a similar move in Dallas. The company currently leases 1.1 million square feet at Whitacre Tower in downtown Dallas with a lease expiring in 2030. Executives are reportedly exploring suburban sites like Park at Legacy in Plano but have not made any final decisions. Earlier this year, AT&T signed an agreement for office space in Richardson and plans to expand its workforce there from 400 up to 1,400 employees.
AT&T moved its headquarters from San Antonio to Dallas in 2008.
“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,” reported the San Antonio Business Journal.
“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 [a] 1.1 million-square-foot lease at the 37-story Whitacre Tower…in downtown Dallas.”
“The lease ends in 2030 but AT&T is pondering a move to the Dallas suburbs…”
“Executives have been touring sites like the Park at Legacy in Plano…”
“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…”
“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.”
