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Net Absorption is the Word of the Day for 1Q San Antonio Industrial Market, Report Says

The San Antonio industrial market opened the new year with over 4.7 million square feet of quarterly net absorption in Q1 2022, according to a CBRE San Antonio Industrial Report. The report says the space absorbed is the most the San Antonio industrial market has seen in a singular quarter. The net absorption rate was largely due to Project Star, a 3.8 million-square-foot built-to-suit project that completed and took 100 percent occupancy this quarter. This marks the 22nd consecutive quarter of positive net absorption.

Vacancy hit a new low in the first quarter, dropping more than 240 basis points quarter-over-quarter to 7.5 percent. This is the lowest vacancy rate the San Antonio industrial market has seen since 2013, when the rate was also at 7.5 percent.

The report pointed to demand outpacing supply, with vacancy rates expected to continue trending downward. Developers, however, have responded to the ever-growing demand for bulk warehouse/distribution space, adding nine projects totaling 2.1 million square feet to the construction pipeline in 1Q 2022.

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About Erik Hamilton

Erik Hamilton, who has more than 15 years in CRE journalism, is a former staff writer with the Los Angeles Times and the Orange County Business Journal. In addition to The Times and the OCBJ, he was also a reporter and editor for Crittenden Research, The San Bernardino Sun and UPI. Erik also worked six years in CRE public relations with Los Angeles-based Hoyt Organization, where he was a Senior Account Executive. He later joined Lee & Associates where he served as the Director of Corporate Communications. There ,in addition to his work with Lee’s CEO, he managed 57 offices nationwide and provided PR, social media and media training for the offices. A graduate of UC Irvine, with a BA in history, he is an avid record collector where he continues to search for a rare Joy Division single.

  • ◦Development
  • ◦Economy