Industrial market indicators remain strong closing out 2017. 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 920,637 sq. ft., with vacancy at 6.0% year-to-date compared to Q3 2017 at 5.6%. The current amount of space under construction is 869,207 sq. ft., with 35% of that space pre-leased. In a tight market, leasing activity is at 4.0 million sq. ft. year-to-date.
Manufacturing is a big deal in San Antonio. Based on a study by Trinity University, San Antonio’s manufacturing sector had an overall economic impact of $40.5 billion in 2016. In addition, with 1,544 companies counted as manufacturers in San Antonio, the sector employed 51,904 people with an average salary of $57,507, and close to $3 billion in wages and salaries last year.
Investment sales up 56% year-over-year. Sales of major industrial properties grew 58.6% on a year-over-year basis nearing the end of 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.
Area unemployment rate declined to a 16-year low. The San Antonio economy grew at a steady pace in October, as jobs surged and the area unemployment rate plunged from 4.0% in September to 3.6% in October, the lowest level since December 2000. San Antonio employment increased at a 6.0% annualized rate over the three months through October with construction job growth booming, due to an increase in specialty trade contractors and new building construction.
Director of Research
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