Partners Real Estate (210) 384-2342

Northeast · Live Oak To Cibolo

Medical Office Space On The I-35 Northeast Corridor

Two systems adding inpatient capacity on the same eight miles of I-35, and about 100,000 square feet of attached medical office that has to be leased.

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University Health is building Retama Hospital on Lookout Road at Selma Parkway beside Retama Park: roughly 589,743 square feet, 166 acute-care beds, and about 100,000 square feet of connected medical office space, opening in 2027. Eight miles down the interstate, Methodist Hospital Northeast at 12412 Judson Road in Live Oak broke ground in January 2026 on a $146 million, 100,000 square foot patient tower adding 14 critical care and 64 medical-surgical beds.

Northeast Baptist Hospital on Village Drive already serves the corridor, and an emergency and urgent care cluster runs along FM 3009 and I-35 through Schertz and Cibolo. Randolph Air Force Base adds a military patient population that most brokers never factor in. For a physician, the live question is whether to sign near the hospital that exists today or position for the one arriving in 2027.

The 2027 question

A connected medical office building at Retama means about 100,000 square feet coming to market at once, which is both an opportunity and a supply event. Practices that engage during pre-leasing generally get terms that are not available afterward. We can tell you where that process currently stands.

One corridor, several cities

Live Oak, Selma, Schertz, Cibolo and Universal City function as one medical market even though patients think of them as separate towns. Where you sit inside it changes your draw more than the city name on the address does.

The military patient base

Randolph Air Force Base and the surrounding retiree population are a meaningful part of the payer mix out here, and they behave differently from a commercial population. That belongs in a site decision and it rarely makes it into one.

Product is thinner than the demand

This corridor has grown residentially faster than it has added purpose-built medical office, so the realistic options today include retail conversion and second-generation suites along FM 3009 and the access roads.

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Common Questions

Leasing in the I-35 northeast corridor

Should I wait for the new hospital or sign now?

It depends on your lease timing and your tolerance for uncertainty. Pre-leasing terms in a new connected medical office building are usually better than post-opening terms, but the building has to actually deliver on schedule. If your current lease expires before 2027, a short-term extension where you are can be the move that keeps both options open.

Is Schertz its own medical market?

Functionally it is part of one corridor running from Live Oak through Selma, Schertz and Cibolo to Universal City. Patients cross those city lines without thinking about it. Treating them as one market when you pick a site produces better decisions than focusing on a single city name.

How far is this corridor from the Medical Center?

Far enough that patients out here do not want to drive to it, which is the entire reason two systems are building beds locally. For a practice, that is the opportunity: a population that has been driving across town for care that could be delivered closer to home.

Part Of A National Healthcare Practice

Partners Healthcare Services

In July 2026 Partners Real Estate acquired Crown Tenant Advisors, an Atlanta-based firm specializing in tenant and buyer representation for healthcare practices, and launched Partners Healthcare Services, serving clients in the medical, dental, and veterinary sectors. Crown was founded in 2009 by Andrew Riepe and built its practice on the tenant and buyer side rather than taking landlord listings. We are the San Antonio and South Texas arm of the practice.

That matters when your practice grows past one market. Partners was founded in 1997 and reports more than 300 professionals, with offices in San Antonio, Austin, Houston, Dallas-Fort Worth, and Atlanta. The healthcare practice has people on the ground in Georgia, North Carolina, South Carolina, Indiana, and Florida, and Partners is expanding across the Carolinas, Nashville, and the Florida markets.

And where we do not have an office, we do not hand you to a junior broker in a branch. We bring in the best broker in that market, whatever firm they work for, and run the assignment with them. One relationship covers your second location, whether it is across 1604 or across the country.

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Looking At Space In the I-35 Northeast Corridor?

Tell us what you need and we will tell you what is actually available, including what has not been marketed yet.

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