REOC San Antonio releases 1Q 2016 industrial market update

​​SAN ANTONIO – Activity recorded in the first three months of the year set the San Antonio industrial market on track for another strong performance in 2016. 

New leases and expansions inked in the first quarter generated 354,150 sf of positive net absorption. 

As a result of new supply keeping pace with demand, the citywide vacancy rate remained relatively stable at 8.1 percent compared to 8.3 percent last quarter and 8.2 percent in the same quarter last year. 

The average cost for renting distribution warehouse space currently stands at $4.23 per-sf on an annual, triple net basis, which is up $0.09 compared to last year at this time.

By comparison, the average cost for service center/flex space in the San Antonio area is $7.79 which is up $0.18 over the same period.

The first quarter delivery featured Enterprise Industrial Park II (315,362 sf). The Northeast warehouse facility came online anchored by building materials supplier Wilsonart (40,950 sf). The Wilsonart lease was followed closely by Berger Transport & Storage (80,000 sf) – a harbinger for more positive absorption in the second quarter.