Industrial Vacancy Steady, Absorption on the Rise

NAI Partners’ March 2019 report for San Antonio’s industrial sector pointed to steady vacancy and increasing net absorption. Specifically, overall vacancy was 6.1% (versus 6% reported in March 2018), while year-to-date absorption stood at 132,911 square feet, a year-over-year increase from the 55,666 square feet.

The report also noted that, while asking lease rates have grown over the past few years, the average monthly rate of $0.52 per square foot in March was at an all-time high. Meanwhile, the year-to-date delivery of 772,227 square feet is outpacing net absorption, with an additional 4.2 million square feet under construction.

Overall, San Antonio’s unemployment rate increased to 3.4% in December, though some sectors remain weak, due to a tight jobs market. The NAI Partners’ analysts forecast that San Antonio’s overall job growth in 2019 should be similar to the state’s; between 1%-2%.

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