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Industrial market indicators remain strong in 2018. Nearing the end of the first quarter, 203,663 sq. ft. of Warehouse/Flex space has been delivered, year-to-date net absorption is at 55,666 sq. ft., and vacancy is down slightly at 6.0% compared to this time last month at 6.1%. The current amount of space under construction is 620,592 sq. ft., with close to 80% of that space available for lease. In a tight market, leasing activity is at 555,438 sq. ft. year-to-date.
Investment sales up 60% year-over-year. Sales of major industrial properties grew 59.7% on a year-over-year basis through February 2018, totaling $17.1 million, based on Real Capital Analytics data. The buyer composition was made up of 100% private investors. The most recent significant year-to-date transaction in the local market took place in February: the acquisition by Steiner LLC of a 107,618-sq.-ft. industrial property, at 3323 E. Commerce St., in northeast San Antonio, from Nshe TX Cascarudo LLC.
Beginning of 1.3 million sq. ft. business park. Building 1, the 179,655-sq.-ft. speculative warehouse, located in Gateway 10 Business Park, is on schedule for completion in June 2018. The project is located on I-10 E. in Northeast San Antonio near Foster Road. The 100+ acre master planned development will ultimately offer retail, commercial and industrial land sites.
Economy expanding at a steady pace. The San Antonio unemployment rate increased slightly to 3.4% in January. The Texas and U.S. rates held steady at 4.0% and 4.1%, respectively. The jobless rate was revised down significantly last year, with a 17-year low of 3.1% last October. Local area jobs increased over the three months through January, with strong growth in goods-producing industries. In addition, mining added jobs at a fast pace and construction hiring picked up due to the demand for specialty trade contractors.
Director of Research
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