Downtown San Antonio is on the verge of another major transformation. AT&T has announced it will vacate its 401,516-square-foot office building at 1010 N. St. Mary’s Street by 2026, consolidating operations into its Westover Hills campus on the city’s far West Side. 

While the move represents another challenge for San Antonio’s downtown office sector, it also creates a rare redevelopment opportunity—one that could reshape the area’s skyline and inject new life into the city’s urban core. 

According to Tami Price, Realtor® in San Antonio, “When a company like AT&T exits, it’s a loss for office space demand but an opportunity for creative redevelopment. This building could become a mix of housing, retail, and entertainment that brings more life downtown.” 

Why AT&T Is Leaving Downtown 

AT&T’s decision reflects a broader trend among major corporations nationwide: consolidating space, reducing overhead, and adapting to new work models. 

Key factors behind the move include: 

• Operational efficiency: Centralizing employees at the Westover Hills campus, which offers modern amenities and better logistics. 

• Remote work trends: As hybrid work remains dominant, office space needs have decreased across many U.S. cities. 

• Rising downtown vacancies: Office occupancy downtown has struggled to recover post-pandemic, prompting companies to relocate to suburban campuses. 

This strategic downsizing mirrors the national shift away from traditional downtown corporate offices, presenting new challenges—but also bold redevelopment possibilities—for local real estate investors and developers. 

Impact on San Antonio Real Estate 

Commercial Real Estate 

The departure of AT&T adds to the existing office vacancy rates downtown, creating short-term pressure for landlords. However, it also opens the door for reinvention. 

Developers could explore adaptive reuse—a growing national trend that converts outdated office spaces into: 

• Mixed-use developments combining housing, retail, and entertainment. 

• Residential lofts or condominiums that bring more permanent residents downtown. 

• Boutique hotels or coworking hubs, leveraging walkability and River Walk proximity. 

These shifts align with San Antonio’s long-term vision for urban revitalization, where density and lifestyle replace traditional corporate office space as downtown’s primary draw. 

Residential Real Estate 

From a housing perspective, AT&T’s move could ignite a new wave of residential conversions and mixed-use projects. 

• Large office buildings are increasingly being repurposed into apartments or condos, particularly in revitalizing urban areas. 

• Redevelopment could bring new retail, restaurants, and entertainment that attract homeowners and investors. 

• As amenities expand, home values near downtown—especially in King William, Lavaca, and Southtown—may rise over time. 

For buyers and investors, this transition could create a new chapter of opportunity in urban living and adaptive reuse development. 

Expert Insight: A New Chapter for Downtown 

Tami Price, Realtor®, views AT&T’s relocation not as a setback but as a signal of potential: 

“Developers should see this as a golden opportunity. A 400,000-plus square foot building in downtown San Antonio doesn’t come available often. With the right vision, this could spark a new wave of downtown living.” 

Her insight highlights a broader truth: redevelopment drives renewal. Major corporate exits often pave the way for innovation, creativity, and growth that revitalizes city centers for the next generation. 

For Buyers, Sellers, and Investors 

Buyers 

• Keep an eye on downtown redevelopment projects. Future residential conversions may introduce unique condo or loft options with strong long-term appreciation potential. 

• Urban neighborhoods could offer affordable entry points before redevelopment accelerates demand. 

Sellers 

• Watch for rising buyer interest in urban-adjacent neighborhoods as revitalization projects take shape. 

• Homes near downtown may gain value as retail, restaurants, and cultural offerings expand. 

Investors 

• This is an excellent time to explore adaptive reuse or mixed-use partnerships downtown. 

• Vacancy challenges today may translate into prime redevelopment opportunities tomorrow. 

The Bigger Picture: Downtown San Antonio’s Next Phase 

AT&T’s exit is part of a larger evolution in San Antonio’s real estate market. Downtown’s identity is shifting—from a primarily office-based economy to a live-work-play ecosystem centered on residential density, tourism, and mixed-use development. 

Projects like the La Villita Food Hall, Grand Hyatt renovation, and River Walk revitalization already point toward this transition. As corporate offices leave, creative development and city planning efforts are expected to reshape San Antonio’s skyline in exciting, community-driven ways. 

Practical Takeaways 

• Buyers: Look for new condo and apartment conversions coming to downtown San Antonio in the next few years. 

• Sellers: Expect long-term value growth near revitalization projects as the downtown lifestyle gains popularity. 

• Investors: Focus on adaptive reuse and mixed-use opportunities—these will define the next phase of downtown development. 

The Bottom Line 

AT&T’s departure marks the end of an era for downtown San Antonio—but also the beginning of an extraordinary redevelopment chapter. 

While short-term vacancies may rise, the long-term vision is clear: a more vibrant, livable, and mixed-use downtown that reflects the evolving needs of San Antonio’s growing population. 

For developers, buyers, and investors, now is the time to watch closely—and plan strategically for what comes next. 

Frequently Asked Questions

Q: How does AT&T leaving affect downtown San Antonio? 
A: It increases office vacancies short-term but opens prime space for redevelopment into housing, retail, or entertainment. 

Q: Will this hurt home values near downtown? 
A: Unlikely. Over time, redevelopment projects and new amenities typically raise property values. 

Q: Could the building be converted into apartments? 
A: Yes. Office-to-residential conversions are becoming increasingly popular in cities nationwide. 

Q: Why is this important for San Antonio? 
A: It highlights a shift toward mixed-use, lifestyle-oriented development, making downtown more attractive for residents and investors. 

Q: When will the move be complete? 
A: AT&T plans to vacate the downtown property by 2026. 

For personalized guidance on navigating San Antonio’s changing real estate landscape, contact Tami Price, Realtor®.