Source: REOC San Antonio / Xceligent
Tenants searching for industrial space continue to face tight market conditions. Projects currently under construction will provide some new options in the months ahead. According to the survey of more than 33 million square feet of industrial lease space, the San Antonio industrial market closed the third quarter with a citywide vacancy rate of 6.1% which is improved compared to 7.3% recorded in the same quarter last year. The vacancy that remains in the market is mostly older product challenged with some functional obsolescence.
Area industrial properties experienced 94,642 square feet of positive net absorption in the third quarter which raised the year-to-date total to 528,936 square feet of net gain. With 117,213 square feet of positive net absorption, the Service Center/Flex set of properties outperformed the Distribution Warehouse product type this quarter, which uncharacteristically experienced 22,571 square feet of negative absorption.
Rental rates for area industrial space continue to gain momentum in the wake of tightening supply. The citywide average quoted rental rate currently stands at $7.76 per square foot per year on a triple net basis, which is up $0.22 or 2.9% compared to a year ago.
Click to download REOC San Antonio’s 3Q 2014 Industrial Market Report
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