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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REOC Releases 4Q 2016 Industrial Market Report

Source: REOC San Antonio/Xceligent

Source: REOC San Antonio/Xceligent

The San Antonio industrial market closed out 2016 with a healthy fourth quarter performance, totaling 323,602 square feet which raised the year-end total net gain to nearly 1.7 million square feet. Large vacancies related to frac sand storage are still expected to be staggered throughout the upcoming years but shouldn’t cause any abrupt changes to the market.

Although the concentration of oil and fracing activity is focused in the South, this sector experienced 188,844 square feet of positive net absorption – the largest amount of any sector this quarter. Even though absorption was positive, the citywide vacancy rate remained unchanged from the previous quarter at 8.3% due to the addition of offsetting new inventory.

As the citywide vacancy rate remained unchanged, the average citywide quoted rental rate remained relatively stable as well at $5.86 per square foot on a triple net basis-down only $0.04 compared the same quarter a year ago.

As for the incoming year the industrial market can expect over 2 million square feet of space to be added to the inventory. San Antonio continues to be a rising competitor on a statewide scale which is signaling the need for larger space in order to accommodate potential tenants and buyers.

Click the following link to download REOC San Antonio’s complete report: 4Q 2016 Industrial Market Report

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