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 4Q 2013 industrial market update

The San Antonio industrial market closed out 2013 with a citywide vacancy rate of 6.8% – the lowest on record and down compared to 7.3% last quarter and 9.9% recorded in the same quarter last year.  Steady tenant demand coupled with little new leasable inventory constructed over the past several years has tightened vacancy to its lowest point ever.

Tenant move-ins recorded between the first of October and the end of December generated 1,299,611 square feet of positive net absorption led by the delivery of the Amazon.com Fulfillment Center (1,260,000 sf) in the Northeast sector.  The healthy fourth quarter gain pushed the year-end total absorption figure to nearly 2.5 million square feet – another record set and besting the 1.5 million square feet recorded in 2007.

Recognizing the need for more leasable inventory, developers broke ground in the fourth quarter on two new projects – both located in the Northeast sector near the intersection of I-35 & FM 3009.

As new space is being constructed, market conditions continue to tighten which has supported increased rental rates giving landlords greater control in lease negotiations.

Click to download REOC San Antonio’s 4Q 2013 Industrial Market Report.

Click to read related articles: Industrial real-estate sector facing limited inventory (San Antonio Business Journal, 2-21-14); San Antonio garnering new interest among larger industrial users (San Antonio Business Journal, 2-20-14); Industrial developers upping their stakes in San Antonio (2-13-14); San Antonio’s industrial market posts record-breaking numbers in 2013 (San Antonio Business Journal, 2-12-14)

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