San Antonio industrial record-breaking numbers 2013

SAN ANTONIO – For 2013, the local industrial sector experienced the best year yet, according to REOC San Antonio. As for fourth quarter 2013, the market was sitting at a vacancy rate of 6.8 percent — an all-time low for the sector.

Over the 12 months ended December 31, 2013, leasing activity led to the absorption of nearly 2.5 million sf of space — well above the previous absorption record of 1.5 million sf posted in 2007.

Looking ahead to 2014, San Antonio’s industrial market is facing a formidable challenge — a lack of new space. “The lack of large blocks of available space has begun to restrict positive growth,” observes Kim Gatley of REOC San Antonio.

The lack of space has put upward pressure on rents. The citywide average asking rental rate stood at $7.58 per sf as of 4Q 2013 — up from $7.06 the previous year.

Developers have begun to turn dirt on new projects, which means some new options for industrial tenants.