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Overall vacancy is at 6.8%, up 60 basis points from this time last year at 6.2%. There is 870,000 sq. ft. of vacant space that was delivered to the market in 2019—only 25% of the total 3.6 million sq. ft. completed. The vacancy rate for Class A properties is at 14.4%, up from 12.0% as of August 2018.
SA growth with new distribution center on south side. Overall vacancy is at 6.8%, up 60 basis points from this time last year at 6.2%. There is 870,000 sq. ft. of vacant space that was delivered to the market in 2019—only 25% of the total 3.6 million sq. ft. completed. The vacancy rate for Class A properties is at 14.4%, up from 12.0% as of August 2018. Year-to-date net absorption is at 2.3 million sq. ft., up from negative 204,000 sq. ft. year-over-year, due in large part to the new 1.7 million sq. ft. TJ Maxx Distribution Center on the city’s south side opening its doors in Q2 2019, adding more than 1,000 jobs to the city. While the asking price for industrial properties has steadily grown over the past few years, it is currently at an average monthly rate of $0.50 with slight fluctuations during the time in between.
500,000-sq.-ft. facility coming to Cibolo. Japanese transmission maker AW Texas Inc.—owned by Fortune Global 500 company Aisin—is building a $400 million plant in the northeast suburb of San Antonio. The company plans to build the facility on a 159.5-acre parcel at South Santa Clara and Bolton road along Interstate 10. AW Texas will produce parts for several area auto manufacturers and bring 900 jobs to Cibolo. City officials stated that closing on the land will take place in early August and groundwork should begin in September.
Economy expanding at moderate pace. In the three months ending in June, the metro area added jobs at an annualized rate of 0.3%, slower than the previous three-month period at 1.7%. Growth was led primarily by the professional and business services sector, which increased by 7.4% (2,600 jobs), followed by health and education services, which grew by 4.7% (1,900 jobs). Areas of reduction included leisure and hospitality, which lost a net 3,900 jobs, and construction, which shed 1,350 jobs. The San Antonio unemployment rate inched up but remained at a still low at 3.0% in June. This is well below the state and national rates of 3.4% and 3.7%, respectively.
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