REOC San Antonio
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Kim_Gatley
Kim Gatley
S
enior Vice President & Director of Research at REOC San Antonio

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REOC San Antonio releases 3Q 2013 industrial market update

The San Antonio industrial market continued its solid performance in the third quarter.  According to the survey of more than 32 million square feet of area industrial space, leasing activity generated positive net absorption for a tenth consecutive quarter.  “The local industrial market continues to benefit from San Antonio’s economy which has been further strengthened by a growing business base related to oil production in the nearby Eagle Ford Shale,” says John Greg Turcotte, CCIM, Senior Vice President and Partner, REOC San Antonio, a locally-based, full-service commercial real estate company.

New leases and expansions in the third quarter generated 316,485 square feet of positive net absorption led by gains in the Northeast sector.  In all, area industrial properties have experienced more than 1.1 million square feet of positive net absorption year-to-date.

With little new speculative space added to offset the strong positive absorption, the citywide vacancy rate has tightened to 7.3% which is down compared to 8.1% last quarter and 10.6% recorded in the same quarter one year ago. Diminishing availabilities have supported increased rental rates and landlords are enjoying greater control in lease negotiations.

Looking ahead, existing industrial space is expected to remain in tight supply but the anticipation of new projects will create additional options for an expanded tenant base.  Meanwhile, tenants may be challenged with higher lease costs as the market continues its steady march forward.

Click to download the full 3Q 2013 San Antonio industrial market report.

Click to read related article: Demand rising in San Antonio’s industrial real-estate sector, REOC reports (San Antonio Business Journal, 11-1-13)

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