San Antonio,TX.

A Must-Read for Investors

We're back with another comprehensive analysis of one of our main industrial focus markets. This time we're honing in on Austin’s favorite neighboring city, San Antonio.

Recent Developments

San Antonio's strategic location, providing a connection through Laredo to Monterrey, establishes it as a crucial center for continued industrial growth. This link has stimulated substantial investments and advancements in the industrial sector.

Building Trends

A vintage analysis reveals development patterns along the I-10 and I-35 corridors, with a significant surge in South San Antonio around 2010. This surge appears to taper off by 2020, however, the trend of growth persists, albeit at a reduced scale. Buildings constructed after 2020 have almost doubled in size, accounting for approximately a quarter of San Antonio's industrial inventory.

Key Insights

• Building Size Increase: Post-2020 new construction has seen a significant increase in average building size, nearly doubling compared to previous decades.

• Economic Growth: The correlation between real GDP and industrial space development shows that as financing became cheaper, more large-scale constructions were initiated. The 10-year treasury rate's decline has made borrowing more affordable, spurring development.

• Recent Surge: Approximately 25% of San Antonio's industrial inventory has been built post-2020, highlighting a recent construction boom.

Data Highlights

• Building Vintage: Pre-1970s buildings are predominantly located in the central and northern parts of the city. The 1970s and 1980s saw expansion along the I-10 and I-35 corridors, while the 1990s and 2000s continued this trend with increased development in the southern regions.

• Construction Surge: In 2010, there was a surprising amount of development in the Deep South of San Antonio. While the scale of new construction slowed down by 2020, there has been a noticeable increase in the size of buildings constructed post-2020.

• Square Footage Analysis: The average size of buildings has significantly increased in recent years. Post-2020 buildings are, on average, twice the size of those built in the previous decades, reflecting a trend towards larger industrial spaces.

San Antonio is not just a city with potential—it’s a city in motion. With its strategic location, robust development, and strong economic indicators, it stands as a prime candidate for industrial real estate investment. We're excited to continue monitoring this dynamic market and uncovering the opportunities it holds.

Let us know your thoughts on these insights. Should we continue sharing such detailed market analyses? Your feedback is invaluable.