Insurance and financial services giant USAA is moving out of downtown San Antonio.
The company will no longer have an office in the building at 300 Convent Street in the heart of downtown, the San Antonio Business Journal reported. The announcement comes with little surprise as USAA already listed a majority of its space in the building on the sublease market.
“Like many companies, the pandemic and a shift to hybrid and remote working have changed our real estate needs as we have ample space for current and future employees in our Home Office campus,” USAA CEO Wayne Peacock told the outlet. “San Antonio has been our headquarters for 100 years, and we will continue to grow here, bring in new talent and be a good corporate citizen in the San Antonio community.”
USAA has about 500 employees assigned to offices downtown and most of them follow a hybrid work model, working remotely some days and coming into the office on others, company spokesperson Roger Wildermuth said. USAA, which has more than 10,000 employees, has been vacating much of its office space across the country, with the exception of a newly opened office in Charlotte, North Carolina.
Earlier this year, the City of San Antonio, Bexar County and USAA agreed to end certain incentives that would have brought 2,000 employees to the downtown space. The company said at the time that it had enough space for its 1,000 hybrid employees and didn’t need more.
It is not yet known whether USAA Real Estate, which bought the building in 2017, will sell the property or continue to sublease it.
Downtown San Antonio’s net absorption of office space fell to a five-year low in the first quarter of 2022, even though no new space was delivered. The data suggested that tenants are vacating the area in increasingly higher numbers.
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Commercial
Texas
Downtown San Antonio’s office space availability is peaking
— Victoria Pruitt