Transportation, logistics power San Antonio industrialTransportation, logistics power San Antonio industrialhttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=57302013-11-14T07:17:00Z2013-11-14T00:00:00Z

SAN ANTONIO - Transportation and third-party logistics companies are flocking to fill San Antonio’s industrial space, according to John Turcotte, senior vice president at REOC San Antonio. In all, new leases and expansions in second quarter 2013 generated positive net absorption for the ninth consecutive quarter.

Local industrial properties experienced 564,220 sf of net gain, which raised the year-to-date total to more than 850,000 sf.

The citywide vacancy rate was further squeezed from 9.1 percent last quarter to 8.1 percent at the end of 2Q 2013. In 2Q 2012, the citywide vacancy stood at 10.3 percent.

The growing oil production in the nearby Eagle Ford shale is the major driving force behind the increased transportation-related activity. In addition, growing demand for rail-based logistics has prompted the development of two new rail parks in Southeast Bexar County — Alamo Junction Rail Park and Mission Rail Park.

In response to dwindling availabilities, rental rates are on the rise. The citywide average quoted triple-net rental rate for all types of industrial space increased to $7.51 per sf annually, up $0.12 compared to last quarter, which equates to a 1.6 percent increase.

Looking ahead, local industrial space is expected to remain in tight supply in the near term, which will continue to put upward pressure on rental rates.

Texas Real Estate Business
San Antonio-New Braunfels
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