CBRE: San Antonio industrial finishes ’17 on ‘healthy note’

​​​​SAN ANTONIO – ​​​The city’s industrial market finished 2017 with just under 1.2 million sf of net absorption, reports CBRE in its fourth quarter 2017 market update.

Although that’s less than the 1.6 million sf reported in 2016, CBRE says demand remained above t​he trailing ten-year average of one million sf and just below the trailing four-year average of 1.4 million sf.

Class A space had an annual net absorption of 1.6 million sf in 2017, while Class B and C had a total of more than 400,000 sf of negative net absorption.

Vacancy held steady at 9.7 percent in fourth quarter 2017, well below the city’s cycle high of 15.5 percent in 2010.

Weighted average asking rents for Class A industrial warehouses grew 4.4 percent over last quarter and increased $0.86 above Class B asking rents. Asking rents for flex product dropped across all classes.

By the end of the fourth quarter, just under one million sf was in the development pipeline. It will deliver through fall 2018.