San Antonio industrial space is getting harder to find and more expensive when you can find it. A lack of new space being built on spec combined with strong positive absorption rates. A recent REOC San Antonio survey of more than 32 million square feet of industrial space finds that more than two-thirds of the buildings surveryed were reporting 100% occupancy. San Antonio industrial space is reporting a vacancy rate of 7.3%, down from 10.6% a year ago.
The survey found only one space that could handle a tenant looking for 100,000 square feet or more and only a very small number of upcoming opportunities for space requirements of that size. As with any market, as space becomes scarce, rents rise and San Antonio’s industrial space is no different. While the lack of available industrial space could slow the city’s growth in the industrial market and hurt the city’s ability to attract businesses, it does present an opportunity for speculative development, but as of yet, no one is really stepping up to the plate.
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