Industrial Vacancy Drops Due to Record-breaking Demand

San Antonio industrial vacancy decreased 30 basis points quarter-over-quarter to 6 percent and decreased 70 basis points year-over-year, according to the latest report from NAI Partners. The vacancy rate for class-A properties is at 16.7 percent, down from 18.4 percent this time last quarter. The drop in the vacancy rate is due in part to the record-breaking level of leasing activity in the first quarter 2021, at 6 million square feet.

Total inventory for class-A space represents 16.5 million square feet, up from 13.9 million square feet as of second quarter 2020, an 18.4 percent increase. Second quarter overall net absorption was at 506,000 square feet, with 73,000 square feet delivered during the same time period.

Triple net average monthly asking rents recorded $0.53 per-square-foot in the second quarter, unchanged from this time last quarter and slightly higher than last year’s $0.52 per square foot. Construction is at an all-time high with 8.7 million square feet in progress including Project Star at 3.8 million square feet, Amazon at 1 million square feet and Navistar at 900,000 square feet, says the report.