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

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Investor momentum continues with another industrial buy in San Antonio

4715 Rittiman

4715 Rittiman Rd.

San Antonio’s investment streak has just been extended with the sale of another industrial facility in the city’s northeastern submarket.

Levy Construction, an electrical contracting firm based in San Antonio, has sold its 15,632-square-foot facility at 4715 Rittiman Road to Fort Worth-based Wilbarger St. LP. Wilbarger, which has a number of different business entities, will use the facility as a satellite office for its general contracting branch. Levy, which outgrew the space, will relocate to a facility in Selma, Texas.

Northeast San Antonio’s central location has long made industrial space there desirable, but with increased construction activity and some heavyweight tenants moving into the region, prices have shot up. Zach Dobin of San Antonio Commercial Advisor’s Investment Sales Team, who represented Levy in the sale, said that the city’s market is “extremely fluid when it comes to industrial product.”

“A lot of users are looking for space but are having trouble finding it because there’s not a lot of good product available,” Dobin said. “There are certainly some functionally obsolete products out there that stay on the market, but functional products close quickly.”

The Rittiman Road facility is a clear example since it closed within a 30-day timeframe.

Interest for space in Northeast San Antonio has increased so much over the past couple of years that sales have been few and far between simply because owners aren’t wiling to sell their properties. With a lack of new product on the market, landowners have been able to charge a premium if they have a useable space.

Dobin added that prices go up even more if the facility has a yard. Yes, a yard.

These users won’t be putting up swing sets or barbecue grills, though. Rather, a lot of industrial users use outdoor space as an inexpensive way to store large pieces of equipment.

Click to read entire article: Investor momentum continues with another industrial buy in San Antonio (San Antonio Business Journal, 06-23-15)

 

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