Demand for warehouse space continues to increase as Alamo City becomes a hub for large industrial tenants.
Vacancy rate drops to 3.5%
Ten months into 2022, overall vacancy in the San Antonio industrial market is at a tight 3.5%, dropping 180 basis points from last year at 5.3%. Availability is at 9.0%, up 200 basis points from October 2021 at 7.0%. The difference between this figure and the vacancy rate reflects expected future move-outs. The San Antonio industrial market has recorded 6.9 million sq. ft. of leasing activity, comprised of new leases and renewals, down 45% from October 2021 at 12.6 million sq. ft. Net absorption (move-ins minus move-outs) is at 10.3 million sq. ft., up over 200% from last year at 3.4 million sq. ft.
Strong leasing activity
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.
Tesla expands its industrial operations in San Antonio
Tesla leased 439,809 sq. ft. at 7015 Lancer Blvd., taking up the entire industrial building in San Antonio’s South submarket in Q3 2022. The warehouse is two hours from Tesla’s headquarters and electric manufacturing plant in southeast Austin. Demand for warehouse space continues to increase despite rising inflation and recessionary fears, as Alamo City has become a hub for large industrial tenants.
Director of Research
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