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 industrial market update for 2Q 2014

Tenant demand for industrial space continued to tighten the local market in the second quarter.  According to the survey of 461 industrial properties totaling nearly 33.7 million square feet of space, the San Antonio industrial market experienced 199,748 square feet of positive net absorption which marks a thirteenth consecutive quarter of absorption growth.

“Recent gains are even more impressive given that the citywide vacancy was already incredibly tight heading into the second quarter,” says Kim Gatley, Senior Vice President and Director of Research for REOC San Antonio, a locally-based, full-service commercial real estate company.  The citywide vacancy rate remained stable over the quarter at 5.9% but narrowed significantly compared to 8.1% recorded in the same quarter last year.

Vacancy within the city’s 25.8 million square feet of Distribution Warehouse space is even more constricted.  At the close of the second quarter, the citywide vacancy rate for Distribution Warehouse space contracted to 3.9% compared to 5.0% last quarter and 6.4% recorded a year ago.  “If you remove older buildings that make up most of that remaining vacancy and focus on the newer quality projects then the market is virtually full,” says John Greg Turcotte, CCIM, Senior Vice President and Partner, REOC San Antonio.

With available space being squeezed, rental rates are rising quickly and the scarcity of available space has prompted developers to move forward with speculative construction but caution still rules.

Click to download REOC San Antonio’s 2Q 2014 Industrial Market Report

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