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 San Antonio releases 2Q 2013 industrial market update

Source: REOC San Antonio/Xceligent

Source: REOC San Antonio/Xceligent

The San Antonio industrial market closed the second quarter with a citywide vacancy rate of 8.1%.  For the ninth consecutive quarter, activity within local industrial properties generated positive net absorption.  Supported by a growing number of transportation and third party logistics companies local industrial properties experienced 564,220 square feet of positive net gain which raised the year-to-date total to more than 850,000 square feet.  Service Center/Flex properties experienced healthy gains but Distribution Warehouse facilities recorded the greatest increases.

 

Demand for industrial space continues to be supported by the growing oil production in the nearby Eagle Ford shale.  According to data released by the Texas Railroad Commission, the nine fields that make up the majority of the Eagle Ford yielded nearly 582,000 barrels of crude a day in May – that’s up 58% compared to the same month a year ago.  As a result, railroads in and near the oil field are busy moving crude oil and sand for hydraulic fracturing.  The region’s growing demand for rail-based logistics has prompted the development of two new rail parks in Southeast Bexar County and the industry’s need for frac sand storage and distribution led to the development of the recently-opened $50-million U.S. Silica/BNSF Logistics Center in the Freeport Business Center in Southwest Bexar County. 

With vacancy at an all-time low and demand for industrial space continuing, the market is positioned to grow but speculative development remains limited.  The only spec project currently underway is Building 3 (66,170 sf) nearing completion at Thousand Oaks Business Park in the North Central sector.  Meanwhile, several significant build-to-suit projects are nearing completion including the Amazon.com Fulfillment Center (1.2 msf) in Verde Enterprise Business Park situated in the Northeast sector, as well as Glazer’s Distribution (518,000 sf) and Maruchan (500,000 sf) – both located on the city’s southwest side. 

Click to download REOC San Antonio’s full 2Q San Antonio Industrial Market Report.

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