San Antonio’s Industrial vacancy rate shrinks 220 basis points year-over-year to a minuscule 3.5%.
Vacancy rate at 3.5%
Eleven months into 2022, overall vacancy in the San Antonio industrial market is at a tight 3.5%, dropping 220 basis points from last year at 5.7%. Availability is at 8.9%, up 200 basis points from November 2021 at 6.9%. The difference between this figure and the vacancy rate reflects expected future move-outs. The San Antonio industrial market has recorded 7.4 million sq. ft. of leasing activity, comprised of new leases and renewals, down 44% from November 2021 at 13 million sq. ft. Net absorption (move-ins minus move-outs) is at 10.8 million sq. ft., up over 250% from last year at 3.9 million sq. ft.
Healthy leasing activity
Notable transactions during 2022 include Tesla Inc. moving into 439,809 sq. ft. in Becknell-Foster Ridge 2 in the South submarket; a deal for 250,373 sq. ft. in Enterprise Industrial Park Building IV in Comal County; Caterpillar Inc. taking 207,492 sq. ft. in Cornerstone Business Park Building 1 in the Northeast submarket; and Nippon Express moving into 196,800 sq. ft. in Prologis Park D in the Northeast submarket.
Developers break ground on industrial park in Selma
Robinson Weeks Partners and Titan Development have broken ground on Selma 3, a new industrial park development in Comal County. They have started moving dirt on Selma 3, a roughly 430,000-sq.-ft. industrial park located at 17654 Ben E. Keith Way in Selma, with completion scheduled for Q3 2023. Selma 2, a roughly 305,000-sq.-ft. facility opened in July and has two tenants: Made In Cookware, which committed to 70,000 sq. ft. of space, and Berlin Packaging, which leased 120,000 sq. ft. of space. Partners—the commercial real estate services business of Partners Real Estate Company—are the exclusive leasing agents for Selma 2 and 3.
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