San Antonio Industrial vacancies shrink to record-breaking low.
VACANCY RATE AT ALL-TIME LOW OF 3.6%
Four months into 2022, overall vacancy in the San Antonio industrial market has tightened to a record-breaking low of 3.6%, dropping 230 basis points from last year at 5.9%. Availability is at 7.3%, down 60 basis points from April 2021. The difference between this figure and the vacancy rate reflects expected future move-outs. The San Antonio industrial market has recorded 3.1 million sq. ft. of leasing activity, comprised of new leases and renewals, while net absorption (move-ins minus move-outs) is at 7.1 million sq. ft. Notable projects completed that contributed to the above-average net absorption in 2022 include the 3.8 million-sq.-ft. Amazon SAT3 – Project Star at 6806 Cal Turner Drive, and the 900,000-sq.-ft. Navistar manufacturing facility at 14607 U.S. 281 S.
CONSTRUCTION LEVELS REMAIN ELEVATED
The San Antonio industrial market has 7.3 million sq. ft. under construction, comprising 40 projects. The largest projects underway are Amazon’s distribution center (1 million sq. ft.) at 10360 US-90, Oakmont 410 (639,525 sq. ft.) at 542 SE Loop 410, Rosillo Creek Industrial Park 1 (560,500 sq. ft.) at 6042 E. IH-10, and Becknell – Foster Ridge 2 (439,809 sq. ft.) at 7015 Lancer Blvd.
LARGEST-EVER INDUSTRIAL SPEC DEVELOPMENT IN SAN ANTONIO
Oakmont Industrial Group announced that its Oakmont 410 project has broken ground, with an expected completion date of December 2022. Oakmont 410 will deliver 639,595 sq. ft of cross-dock space upon completion. The development is situated on a 40-acre parcel in a prime logistics location near the critical I-410/I-10 intersection. NAI Partners was named the leasing agent for the industrial project.
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