AT&T is vacating its 400,000-square-foot office at 1010 North St. Mary’s Street in downtown San Antonio and relocating to a smaller, 100,000-square-foot space at The Reserve in Westover Hills. The move was brokered by CBRE and will see AT&T sharing the building with consulting firm Guidehouse, which leased space there last year after Nationwide left the complex vacant for about three years.
This decision marks another setback for downtown San Antonio’s office market. According to JLL, the citywide office vacancy rate has remained around 17 percent for over a year, but the downtown submarket has experienced rates as high as 27 percent. Other major companies such as PwC, USAA, and Visionworks have also recently moved their offices from downtown to other parts of the city.
AT&T is also considering a similar move in Dallas. The company currently leases 1.1 million square feet at Whitacre Tower in downtown Dallas, with the lease set to expire in 2030. Executives have been looking at sites like Park at Legacy in Plano, although no final decisions have been made. Earlier this year, AT&T secured 186,000 square feet of office space at Lakeside Boulevard Tower in Richardson and plans to increase its workforce there from 400 to up to 1,400 employees.
AT&T has been headquartered in Dallas since moving from San Antonio in 2008.
