Source: REOC San Antonio
The San Antonio industrial market enjoyed an unexpected bounce in the final quarter of the year. New leases and expansions generated 172,529 square feet of positive net absorption which raised the year-end total to 182,386 square feet. As a result, the citywide industrial market vacancy rate improved to 13.3% compared to 13.9% recorded last year at this time.
The Eagle Ford Shale, a new oil and natural gas producing field located just south of San Antonio, is starting to impact the city’s economy and commercial real estate market. Ideally positioned to benefit from the drilling activity, the area has already attracted some major players in the industry including EOG Resources, BP and Chesapeake Energy which have established offices here. Mission Well Services, LLC, an Eagle Ford servicer, recently purchased 11226 IH-10 East (31,500 sf) which is a sign of things to come. Oilfield services will continue to dominate the industrial market news, especially on the Southside, as an inventory of facilities is constructed to serve the Eagle Ford play for the next decade. It is reasonable to expect that we will see expanded activity in the overall industrial market as business picks up for general contractors, surveyors, environmental firms and heavy equipment operators.
[…] ANTONIO (NAI REOC San Antonio) – The San Antonio industrial market enjoyed an unexpected bounce in the final quarter of the […]