Tenant demand in the San Antonio industrial market remains robust.
VACANCY RATE REMAINS TIGHT
Seven months into 2022, overall vacancy in the San Antonio industrial market is at a tight 3.7%, dropping 180 basis points from last year at 5.5%. Availability is at 7.8%, up slightly from July 2021 at 7.5%. The difference between this figure and the vacancy rate reflects expected future move-outs. The San Antonio industrial market has recorded 4.8 million sq. ft. of leasing activity, comprised of new leases and renewals, down 50% from July 2021 at 10 million sq. ft. Net absorption (move-ins minus move-outs) is at 8.3 million sq. ft., up 244% from last year at 2.4 million sq. ft.
NOTABLE PROJECTS AND TRANSACTIONS
The San Antonio industrial market has 7.9 million sq. ft. under construction, comprising 35 projects. The largest projects underway are Oakmont 410 (639,525 sq. ft.) at 542 SE Loop 410, Rosillo Creek Industrial Park 1 (560,500 sq. ft.) at 6042 IH-10 East, and Galleria Industrial Park (528,040 sq. ft.) at 7602 IH-10 East.
SECOND PHASE OF INDUSTRIAL PARK BREAKS GROUND
CenterPoint Logistics Park, a 719,225-sq. ft. five-building project has started construction on the second and final phase of the 64-acre master-planned industrial park. Ground broke on a two-building project that sits on 36 acres. One building is 139,427 sq. ft., and the other is 277,280 sq. ft. Phase one broke ground in late 2020 and is 40% leased. The first three-building phase involved 302,518 sq. ft. The two phases combined total five buildings and 719,225 sq. ft. of industrial space off Old Seguin Road at 4235 Milling Road in Northeast San Antonio.
Leta Wauson
Director of Research
[email protected]
tel 713 275 9618