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Industrial market indicators off to a good start in 2018. Midway through the first quarter, 40,500 sq. ft. of Flex/Warehouse space has been delivered, total net absorption is at -58,503 sq. ft., and vacancy at 6.1% year-to-date compared to Q4 2017 at 6.0%. The current amount of space under construction is 793,027 sq. ft., with 72% of that space available for lease. In a tight market, leasing activity is at 178,113 sq. ft. year-to-date.
Rolls-Royce ramping up for Boeing 757s. Port San Antonio’s StandardAero will be expanding its local workload significantly. The company recently announced an agreement with Rolls-Royce to provide services for engines that power the Boeing 757 aircraft. The company’s site at the Port covers over 500,000 sq. ft. of highly specialized industrial facilities. The expansion underscores San Antonio’s economic strength and growth in the years ahead.
Investment sales up 56% year-over-year. Sales of major industrial properties grew 56.8% on a year-over-year basis through fourth quarter 2017, totaling $450 million, based on Real Capital Analytics data. The buyer composition is made up of 37% private, 35% cross-border, 11% public listed/REITs, 9% user/other, and 7% institutional.
Labor force grew the fastest of the state’s major metros. The San Antonio economy grew at a robust pace in December. Jobs surged, and the area unemployment rate dropped slightly to 3.8% after rising to a revised 3.9% in November. The state rate picked up marginally to 3.9%, while the U.S. rate held steady at 4.1%. The San Antonio labor force grew at a strong 3.4% last year, well above Texas’ 1.4% stride and the fastest of any of the state’s major metros.
Director of Research
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