REOC San Antonio
Commercial Real Estate Since 1974   
Kim_Gatley
Kim Gatley
S
enior Vice President & Director of Research at REOC San Antonio

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Local market update from Broadway Bank

The headwinds caused by COVID-19 and the related shutdowns of various segments of the national economy has impacted the local real estate market, including skyrocketing lumber prices and other related construction costs, manufacturing delays, a slowdown in municipal approvals, changing consumer habits, record homebuilding starts and closings as well as shifting construction priorities by developers.

Supply challenges continue to escalate; however, builders are adapting by placing orders early in advance and being flexible with substitution products.  Not as easy to adapt to is the rising cost of lumber.  For example, the spot market for random length lumber ($/1,000 board feet) increased from $354 in June 2020 to $975 in February 2021.

The trend of online delivery replacing traditional brick-and-mortar retail continues which has resulted in a decline of big box retail construction and an increase in last-mile distribution centers.

Despite the COVID headwinds, we have seen record sales within our homebuilder clients due to the combination of work from home, low interest rates and accelerated migration to San Antonio and the surrounding area.

Regardless of the uncertainties last year brought us, the commercial real estate market in San Antonio is looking promising and showing no signs of slowing down.

Read article: COVID-19’s Impact on the Commercial Real Estate Market in San Antonio, San Antonio Business Journal (5/1/21)

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