San Antonio Industrial Vacancy Stabilizes in Late ‘17

In 2010, the San Antonio industrial sector hit a cycle-high vacancy of 15.5%. A little more than seven years later, industrial vacancy slid below double digits, finishing 2017 off at 97%. In addition to being well below the current cycle’s high, the vacancy is 110 basis points below the trailing 10-year average of 10.8%, according to data from CBRE.

Q4 2017’s net absorption of 160,082 square feet ended up increasing the year’s total to just under 1.2 million square feet, which was below 2016’s total of 1.6 million square feet. However, demand remained above the trailing 10-year-aerage of 1 million square feet.

CBRE noted that weighted average asking rents also contracted slightly in the fourth quarter, mainly due to the large amount of Class B and C product that became available in 2017. Class A rents, however, did increase.

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