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Overall vacancy is at 7.4%, up from this time last year at 5.8%. Of the 4.6 million sq. ft. that has been delivered to the market in 2019, 28.8% is available for lease.
Supply outpacing demand. Overall vacancy is at 7.4%, up from this time last year at 5.8%. Of the 4.6 million sq. ft. that has been delivered to the market in 2019, 28.8% is available for lease. The vacancy rate for Class A properties is at 19.6%, up from the prior period at 13.6%. Year-to-date net absorption is at 2.1 million sq. ft., up from 1.0 million sq. ft. year-over-year. While the asking price for industrial properties has steadily grown over the past few years, it is currently at an average monthly rate of $0.51 per sq. ft. with slight fluctuations during the time in between.
Alamo Group’s record sales. The San Antonio-area manufacturer, based in Seguin, has gained significant momentum in 2019. To start the year, Alamo Group announced it was rolling out a multifunctional tractor dubbed The Mantis. The announcement was followed by three quarters of historically high sales. Another major influence in the company’s record-breaking sales were the purchase of Dutch Power Co. BVA, Dixie Chopper, and Morbark. These latest developments only add to Seguin’s ever-growing manufacturing presence in an already strong existing industrial base in the San Antonio area.
Construction continued to lead job expansion. San Antonio’s economy grew at a strong pace with metro jobs added at a 6.2% annualized rate in the three months ending in October. Growth was led by the construction sector with a significant 19.9% increase or 2,700 net jobs. So far this year, employment has increased at a robust 2.8%. Tight labor markets persist in the metro and the state as the seasonally adjusted unemployment rates held at 3.0 and 3.4%, respectively. The nation’s rate increased but stayed historically low at 3.6%. Job growth, lower unemployment rates and increased private sector wages are all telling of the continued strength of the San Antonio economy.
Director of Research
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