Port San Antonio’s board of directors approved an agreement Thursday to develop a state-of-the-art office tower at the Southwest Side tech and innovation campus.
The building, depicted in conceptual drawings as a modern, multi-story tower, will provide Class A++ office space at the entrance to the former military installation.
The board vote gives the go-ahead for a project that Port leaders first teased last summer. They sought to build a place where talented people could lead the next technological revolution.
“Our customers’ success, from global names to home-grown tech entrepreneurs, has fueled our expansion, and we are ready for our next phase as one of the most vibrant places in our community,” stated Margaret Wilson-Anaglia, board chairwoman of the Port SA.
The office tower, a first for the campus, has been part of the Tech Port plan “from the get-go,” said Jim Perschbach, Port SA president and CEO, referring to the high-tech concert venue and e-sports center that opened at the Port in 2022.
“What we expressed last year was we were going to launch the three projects — the office tower, the research building and the vertiport — and we were going to move those forward,” Perschbach said. “This is our launching of the office building.”
The agreement approved by the board states that development firm Trammel Crow will work with Connecticut-based architecture firm Pelli Clark & Partners, designers of Frost Tower, to refine demand and design concepts.
Planned for the intersection of Billy Mitchell Boulevard and General Hudnell Drive, the building will provide about 300,000 square feet or more of office space in 12 to 15 stories, along with multiple amenities and a parking garage.
The preliminary design concept, of a building meant to look like it’s in motion, could be modified during the predevelopment stage, Perschbach said.
The exact size and construction cost, estimated to be in the millions of dollars, will be determined in the coming months along with a timeline for construction.
“I want the building up in four to five years,” Perschbach said, citing market demand for the space. “We had an office suite come available in one of our existing buildings. We had eight companies approach us about that space. There’s tremendous demand right now.”
But not just for any type of office space, he said. While the post-pandemic economy has led to office vacancies across the country, it has also fueled a “flight to quality.”
“We don’t believe that office buildings are a thing of the past,” Perschbach said. “We believe the way that offices have been built and operated is history.”
Employers are increasingly seeking out office space that aids them in recruiting and retaining top talent, he said, and that makes people want to work in the office versus remotely.
“This becomes a win-win situation — you don’t need to tell people to be in an office if the office is so inviting that people want to be there,” he said.
That will come at a premium, with rental rates expected to be among the highest in San Antonio, he added. “The reason I welcome that is, if there are employers out there that are willing to invest that much money in facility costs … then that means that the compensation … is going to be in line.”
That will then drive up the value of the jobs at the Port and cascade to the rest of the city, he said.
Port SA officials are already talking to potential tenants, though Perschbach would not disclose any names.
But they might not come from the usual sectors the Port tends to attract because of its airfield or the military or industrial aspects of the campus, he said.
“I am very confident that in this new building, you’re going to see the types of employers that are here to support the industries we have but are not technically within that high-tech world — law firms, accounting firms, professional services-type firms,” Perschbach said.
Since 2017, Port SA has grown by over 7,000 new jobs in aerospace, robotics, advanced manufacturing and more, bringing the total workforce to 17,000.
Major employers include Boeing, StandardAero, CNF Technologies, Plus One Robotics and the U.S. Air Force. More than 80 tenants operate out of the 1,900-acre Port SA.
The Port has also built and leased over 700,000 square feet of new facilities in the last six years, and leased more than 6 million square feet of renewed and expanded spaces.
Its most recent project is the Boeing Center at Tech Port, a multipurpose facility featuring a 3,500-seat arena, tech lab, gaming center and technology showcase that opened last year.
In addition to the proposed office building, Port SA officials are planning a veriport — a highly specialized airport facility that will serve traditional fixed-wing aircraft — helicopters and electric vertical take-off and landing vehicles.
Another project in the works is an advanced and applied research complex focused on aerospace and critical infrastructure technologies.
“Our mission is not really real estate,” Perschbach said. “Our mission is making sure that we’re providing opportunities for the community.
“We’re hoping it creates opportunities for people to see what a wonderful neighborhood we have [so we are] really doing our part to bring this level of value to what has been a traditionally underserved and traditionally somewhat marginalized portion of our community.”
