As one of the fast growing metro areas in Texas, San Antonio attracts commercial real estate investors and tenants nationwide. San Antonio is developmental friendly, and home to millions of people. In this post, we’ll examine why investors have been funneling their money into commercial real estate developments in San Antonio and show no signs of slowing down.
The State of Commercial Real Estate in San Antonio
Why Invest in San Antonio Commercial Real Estate?
San Antonio ties with Orlando as the lowest-cost market for real estate development. San Antonio boasts low land prices, low materials & labor costs, and greater pricing certainty than other national markets. Located in South Central Texas, San Antonio lies strategically between Austin and Houston. Home to The Alamo, the city began 300 years ago as a Spanish colonial outpost and has grown by leaps and bounds over the past 30 years. San Antonio anchors one leg of the Texas Triangle, a mega-region consisting of the San Antonio, Austin, and New Braunfels metropolitan areas. The commercial real estate market in San Antonio is powered by a robust blend of businesses, including manufacturing, military and defense, financial services, and the oil and gas sectors.
Regional Insights to San Antonio
San Antonio is one of the fastest growing cities in the United States with an estimated 70 people moving to the metro area each day on average. Residents and businesses alike are attracted to the low taxes, low cost of living, and low cost of business expenses. San Antonio is home to 1.5 million residents in the city, and over 2.5 million people in the surrounding metro area. It is the second most populated city in Texas, and sees population increases of nearly 2% each year.
Furthermore, there are jobs in San Antonio and the surrounding counties of Bexar, Medina, and Comal. And commercial real estate investors in San Antonio are benefitting because of the job growth seen in construction, trade, transportation, financial services, and information technology.
San Antonio Industrial Real Estate Market
Industrial real estate investments are proving fruitful to investors in San Antonio as well. Asking rents for industrial spaces increased by about 10% year over year, while leases for space increased by nearly 30%.
- There is 130,714,890 square feet of industrial inventory in San Antonio
- Asking Rent: $.56 per square foot
- 7% vacancy rate
San Antonio Office Market
Similarly, office rents are also on the rise in San Antonio, while vacancy rates remain relative stable. The suburbs surrounding San Antonio boast nearly five times more office space inventory compared to the downtown central business district.
- 63,022,794 square feet of office inventory
- Asking Rent: $23.64 per square foot per year
- Vacancy Rate: 10.1%
San Antonio Retail Market
The retail space market in San Antonio is not as bleak as elsewhere in the country. Vacancy rates remain relatively stable, however asking rents for retail spaces have declined recently.
- 1113,168,051 square feet of retail space in San Antonio
- Asking Rent: $15.96 per square foot per year
- 5.8% vacancy rate
San Antonio Multifamily Market
San Antonio multifamily real estate developers are seeing high yield on their investments. San Antonio ranks as one of the hottest multifamily real estate markets in the entire market.
- 914,421 total units
- Asking Rent: $989 per month
- Vacancy Rate: 6.4%
Casey Development, Ltd: San Antonio Commercial Real Estate Developers
The team at Casey Development, Ltd. have been developing commercial real estate properties in San Antonio for decades. We are THE experts commercial real estate investors turn to when looking in San Antonio for property development projects. Contact our team at Casey Development, Ltd. today to learn more about our commercial real estate development services in San Antonio.