July 10, 2017
New deliveries to San Antonio’s industrial market pushed vacancy rates upward, even as absorption hit a new high in Q2 2017. According to research from CBRE, speculative space meant vacancy increased by 120 basis points (bps) to 10.0%, with net absorption at just under one million square feet on a year-to-date basis.
The market received 1.5 million square feet of deliveries during the quarter, while close to 900,000 square feet is under construction. Class A warehouse product experienced more than 1.1 million square feet in net move-ins after the past 90 days, with several expected vacancies, most of which came from Class B and Class C buildings, impacted the absorption bottom line.
Even with new space coming to the market, CBRE analysts pointed out that the market is continuing on a trend to a strong 2017, especially with the regional economy and employment market continuing to expand.
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