CBRE has released the Q1 2017 San Antonio Industrial MarketView, which is available for download at cbre.com/researchgateway. Below is a summary of key Q1 highlights.
Industrial warehouse demand, specifically Class A in the northeast, contributed most to net absorption through new deliveries and tenant relocations.
New speculative deliveries added upward pressure to the market vacancy rate, yet net absorption remained positive and industrial vacancy sat nearly 200 basis points below the historical average.
Weighted average asking rents for warehouse product have normalized below $5.00 per sq. ft. after reaching a record high in late 2015. Flex product asking rents saw continued steady growth above $10.50 per sq. ft.
Space under construction closed the quarter at 2.1 million sq. ft. with an expected occupancy of 45%. Similar to recent trends, the northeast accounted for the most space under construction (46%).
San Antonio's regional economy remained strong due to expanding demographics and diverse employment growth. During Q1 2017, the local economy added 3,200 net jobs while its unemployment rate remained below the state average at 4.1%.
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