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San Antonio Industrial Commercial Real Estate Economic Data

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Market Highlights

Construction pipeline yields plenty of available space. During 2017, 1.46 million sq. ft. has been delivered to the market, with 68% of that new supply available for lease. Overall net absorption is at 1.02 million sq. ft., nudging vacancy up 20 basis points to 5.9% year-to-date compared to Q3 2017 at 5.7%. The current amount of space under construction is 869,207 sq. ft., with 24% of that space pre-leased. In a tight market, leasing activity is at close to 3.8 million sq. ft. year-to-date.

Major technology company purchases data center. Microsoft Corporation acquired an $80-million data center in far west San Antonio, as part of an ongoing effort to amass data centers in the metro area. The 202,000-sq.-ft. property sits on 34 acres at 5200 Rogers Rd. in Westover Hills. Chevron Corp. had previously owned the flex/data center since 2011.

Investment sales up 66% year-over-year. Sales of major industrial properties grew 66.1% on a year-over-year basis mid-way through the fourth quarter, totaling $423 million, based on Real Capital Analytics data. The buyer composition is made up of 37% cross-border, 36% private, 12% REIT/listed, 8% institutional and 7% user/other. The most recent significant year-to-date transaction in the local market took place in August: the acquisition by Stonemont Financial of an eight-building, 184,589-sq.-ft. industrial/flex property, Weatherford – Eagle Ford Headquarters, at 19685 I-37 S., in south San Antonio, from Oak Street RE Capital.

Economy grows at a strong pace in September. The San Antonio economy continued to grow at a robust pace in September, as jobs grew moderately and the area unemployment rate declined to 3.9%, slightly below the state rate of 4.0 and the national rate of 4.2%. Unlike state and national job growth, which declined due to the impacts of the recent hurricanes, San Antonio saw a healthy 3.5% annualized increase in employment.

San Antonio Industrial Commercial Real Estate Economic Data

San Antonio Industrial Commercial Real Estate Economic Data

San Antonio Industrial Commercial Real Estate Economic Data

Leta Wauson
Director of Research
tel 713 275 9618

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