In January, the Business Journal reported that Frost Tower, the 24-story downtown office tower, was going up for sale. A few months later, however, that is no longer the case.
“After running a very thorough process, we decided that now was not the time to transact,” said Randy Smith, CEO of Weston Urban who developed the building and is one of the owners, in an email to the Business Journal.
He declined to comment any further on why the building was no longer for sale.
Frost Tower’s other owners are Dallas-based KDC and TRT Holdings.
Weston Urban recently broke ground on 300 Main, a residential high-rise within view of Frost Tower.
When asked whether he thought the future of San Antonio’s central business district would be residential instead of office space, Smith said that the city needed both.
Office space tenancy has seen a decline in downtown San Antonio, however. Last week, the Business Journal reported data from NAI Partners which showed a decline in the absorption of downtown office space, with only 46,000 square feet currently under construction, the lowest of any section in the city.
Driving this office space decline are several factors, including the increasing prevalence of remote work, the increasing cost of office space tenancy in the Central Business District, and in the increased amenities offered to tenants in other parts of town, such as the La Cantera and Rim commerce centers.
Editor’s note: This story was published through a partnership between KSAT and the San Antonio Business Journal.