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San Antonio industrial market continuing steady pace. Nearing the end of the third quarter the vacancy rate was unchanged from this time last month, at 6.2%. Of the 871,000 sq. ft. delivered to the market year-to-date, about 25.0% of that space is unoccupied. Of the 25 properties with 4.1 million sq. ft. currently under construction, 42.4% of that space is available for lease. Year-to-date net absorption totals 78,431 sq. ft., while there have been 240 deals representing 2.7 million sq. ft. of leasing activity. The average asking rate of renting industrial space was up $0.01 from last month at $0.52 per sq. ft. per month.
Investment sales down year-to-date through August. According to Real Capital Analytics, investment sales of industrial properties in the San Antonio area totaled $146.9 million, down -65.3% from one year ago as investors are having a difficult time locating assets to acquire in San Antonio. REIT/listed has been the most active buyer type for 2018, comprising 48.0% of San Antonio’s total sales volume, followed by private buyers at 23.0%, cross-border investors at 14.0%, user/other comprising 10%, and institutional investors representing the remaining 5.0%.
Growth in the San Antonio economy remained moderate in July. San Antonio jobs grew at a 0.4% annualized rate over the three months through July. Growth across industries was mixed, with health care employment rising but leisure and hospitality employment falling. Other services and mining grew at a healthy stride, while construction jobs picked up, with a net addition of nearly 900 specialty trade contractor jobs alone. San Antonio’s seasonally adjusted unemployment rate fell to 3.2% in July, well below the 4.0% rate for Texas and the 3.9% rate for the U.S.
Director of Research
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