San Antonio Healthcare Market Report Q3 2026

San Antonio’s growing population continues to support demand for healthcare services and medical office space throughout the region. The metro area is home to approximately 2.8 million residents and more than 1 million households, with a median household income of $81,016 and an unemployment rate of 4.1%. Continued population growth, an aging demographic, and expanding residential communities are increasing the need for accessible healthcare services, particularly in high-growth corridors such as Westover Hills and Stone Oak. Major healthcare systems, including UT Health, University Health, Methodist, and CHRISTUS, continue to expand their outpatient networks to serve the region’s growing patient base, supporting long-term demand for medical office properties.

 

Key Findings

• San Antonio’s medical office sector continues to demonstrate resilience amid broader commercial real estate uncertainty, supported by essential healthcare demand, an aging population, and continued regional growth.
• Limited new construction and tighter lending conditions are helping constrain competition, supporting occupancy and positioning existing medical office properties to benefit from stable tenant demand.
• Major healthcare systems, including UT Health, University Health, Methodist, and CHRISTUS, continue to expand outpatient services across growing corridors such as Westover Hills, Stone Oak, and the South Texas Medical Center.

 

San Antonio Demographics

Source: Oxford Economics

• Unemployment Rate: 4.1%
• Households: 1,034,983
• Current Population: 2,824,594
• Median Household Income: $81,016

 

San Antonio Medical Office Rents

Asking rents reached $30.07 per SF in Q3 2026, representing a 0.31% year-over-year increase. While rent growth remains modest, rising construction and tenant improvement costs continue to support pricing for existing medical office properties. Buildings near established healthcare systems, particularly the South Texas Medical Center, remain well-positioned to attract clinical tenants seeking proximity to major providers. Long-term leases and relatively high tenant retention further support rental stability, while newer medical office properties may command premium rates in high-demand corridors.

 

Market Asking Rent Per SF

Source: CoStar Group, Inc.

San Antonio Medical Office Vacancy

Vacancy declined to 10.9% in Q3 2026, supported by 223,538 SF of positive net absorption. The improvement reflects strengthening occupancy conditions as healthcare providers continue expanding outpatient services throughout the region. Demand remains concentrated near established medical hubs and growing residential corridors, including Westover Hills, Stone Oak, and the South Texas Medical Center. Limited new supply and consistent demand for essential healthcare services continue to support existing medical office properties, reinforcing the sector’s defensive position relative to traditional office space.

 

Vacancy Rate

Source: CoStar Group, Inc.

San Antonio Medical Office Construction

Development activity remained limited in Q3 2026, with 161,706 SF under construction and no new deliveries recorded during the quarter. Although the construction pipeline increased from earlier in the year, development remains well below historical peaks, limiting near-term competitive supply. Elevated financing and construction costs continue to create barriers for new projects, benefiting existing medical office properties. Meanwhile, healthcare system expansions and demand for outpatient facilities are expected to support leasing activity.

 

SF Under Construction

Source: CoStar Group, Inc.

 

San Antonio Medical Office Sales

San Antonio’s medical office investment market remained active in Q3 2026, recording 29 sales transactions at an average price of $379 per SF. Investor interest continues to be supported by the sector’s defensive fundamentals, including essential healthcare demand, long-term clinical leases, and relatively stable tenant retention. While elevated borrowing costs and tighter lending standards continue to influence investment decisions, limited new development and improving occupancy conditions support the appeal of existing medical office assets. Properties near established healthcare systems, particularly the South Texas Medical Center, remain attractive for their proximity to major providers and consistent patient demand. Looking ahead, continued regional population growth and expanding outpatient networks are expected to reinforce long-term investment demand across San Antonio’s healthcare real estate market

 

Sales Volume

Source: CoStar Group, Inc.

 

By the Numbers

Q3 2026 | Source: CoStar Group, Inc.

• # of Sales: 22
• Price Per SF: $379
• Vacancy Rate: 10.9%
• Rent Growth: 0.13%
• Asking Rent Per SF: $30.07
• SF Under Construction:161,706
• SF Delivered: –
• SF Absorbed:223,538