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Oracle Expands in San Antonio Following News of Potential Headquarters Move

Step Signals Central Texas Growth for Tech Firm Amid Tennessee Relocation
Oracle now occupies 35,000 square feet of office space at The Spectrum Building in San Antonio. (CoStar)
Oracle now occupies 35,000 square feet of office space at The Spectrum Building in San Antonio. (CoStar)

Oracle has committed to a larger footprint in Texas, signaling the company will maintain its presence in the Lone Star state for the near future as it weighs a headquarters relocation to Tennessee.

Oracle plans to move into an additional 17,500 square feet of office space in San Antonio about one week after the company’s founder said the tech giant plans to relocate its global headquarters from Austin, Texas, to Nashville, Tennessee.

A representative with Hartman Properties, the landlord at the Spectrum Building in San Antonio, confirmed to CoStar News that Oracle doubled its office footprint at 613 NW Loop 410 to about 35,000 square feet.

Oracle’s lease, first signed in 2022, now spans the ninth and 10th floors of the building, according to CoStar data.

An Oracle spokesperson did not immediately respond to a request to comment about the new lease.

The company's founder, Larry Ellison, said last week the tech firm would shift its corporate headquarters out of the Lone Star State and to a new office campus in Nashville.

Brokers last week told CoStar News that Oracle’s headquarters relocation, if it materializes, is a one-off occurrence for Austin, and does not mean the company is leaving the city altogether.

Central Texas Growth

Alex Taghi, an occupier services lead with Franklin Street, said Oracle has been expanding its Austin real estate and has secured permits for a new office and hotel slated to sprout up alongside its headquarters at 2300 Oracle Way.

This "signals the company’s continued growth in Central Texas," Taghi said.

San Antonio's office vacancy was 16.5% in the first quarter of 2024, according to Cushman & Wakefield. The city's central business district counts higher vacancy rates of 20.5%.

Oracle’s office is in the suburbs, a few miles north of downtown San Antonio and just west of the city’s international airport, where vacancy rates were around 14.5%.

Major leases signed in the San Antonio market last quarter include Wells Fargo’s 44,456-square-foot deal at 10999 West Interstate 10 and Raices' 29,923-square-foot commitment at 131 Interpark Blvd., according to Cushman & Wakefield.

New office construction, meanwhile, has slowed down considerably in San Antonio, according to CBRE. There were no groundbreakings of new office developments during the first three months of 2024 and one building is currently under construction. CBRE, in its first quarter office report, added pre-leasing activity in San Antonio has been “consistently low.”

The Spectrum Building is owned by Hartman VREIT XXI, a subsidiary of Hartman Properties.

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