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San Antonio industrial market hotSan Antonio industrial market hothttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=142722016-08-19T05:00:00Z2016-08-19T17:00:00Z

​​​SAN ANTONIO – Nearly 1 million sf of new industrial space was delivered to the market in the second quarter, according to the survey of nearly 37.4 million sf of industrial lease space conducted by the research department of REOC San Antonio and confirmed by the Xceligent Industrial Advisory Board.

Between the beginning of April and the end of June, new leases and expansions along with the leasing activity that accompanied newly completed projects resulted in more than 1.3 million sf of positive net absorption.

“To help put the second quarter performance into perspective, the industrial market experienced more absorption in three months than the annual totals recorded for seven out of the last eight years,” says Kimberly Gatley, senior vice president and director of research at REOC San Antonio, a locally-based, full-service commercial real estate company. 

The citywide vacancy rate tightened to 7.3 percent compared with 8.1 percent last quarter and 8.4 percent recorded in the same quarter last year. The average quoted rental rate was at $5.87 per sf per year on a triple net basis, down $0.16 from the same quarter a year ago.​

The citywide average cost for renting distribution warehouse space currently stands at $4.52 per sf annually, marking a $0.25 drop compared with a year ago, while the cost for service center/flex space in the area currently averages $9.11 per sf, which is up $0.34 from 12 months ago.

Looking ahead, nearly 1.3 million square feet of industrial lease space is moving through the development pipeline which will grow the local inventory by more than 3 percent. The majority of it is expected to reach completion before the end of the year and little has reported any preleasing to date.

REOC San Antonio
San Antonio-New Braunfels
Industrial
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