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Much-needed industrial construction soaring. Nearing the end of the second quarter, 500,000 sq. ft. of Industrial/Flex space has been delivered, year-to-date net absorption is at 123,812 sq. ft., and vacancy rose slightly, registering at 5.8% compared to 5.7% at this time last month. The current amount of space under construction is skyrocketing at 4.7 million sq. ft., with half of that space already spoken for. This level of construction has not been seen in the Alamo City since 2005 when Toyota Motor Manufacturing Texas was completing construction of its new assembly plant, building second generation Tundra pickups.
Northeast distribution building part of portfolio sale. Mitchell Asset Group Inc. has acquired a 320,852-sq.-ft. industrial portfolio in Texas from private equity firm Pacific Avenue Capital Partners. The 104,000-sq.-ft. industrial property at 3101 Aniol Street in San Antonio is one of the three properties recently purchased. All three buildings are 100% leased by Guardian Building Products, which has signed a 20-year leaseback agreement.
Economic growth picked up in April. San Antonio jobs increased at a 0.7% annualized rate over the three months through April. Mining maintained its position as the fastest-growing industry; manufacturing was strong, adding 800 jobs over this time; while construction toned-down from last year’s healthy pace nonetheless expanding above its 20-year average of 2.0 %. The unemployment rate decreased to 3.4% in April, while the Texas rate edged up to 4.1%, and the U.S. rate fell to an 18-year low of 3.9%.
Director of Research
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