Bet on Bexar

 

By Bypassers – Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=80313795

Overall vacancy is at 7.5%, up from this time last year at 5.9%. Of the 4.3 million sq. ft. that was delivered to the market in 2019, only 23.5% is available for lease.


Market Highlights

Vacancy up year-over-year. Overall vacancy is at 7.5%, up from this time last year at 5.9%. Of the 4.3 million sq. ft. that was delivered to the market in 2019, only 23.5% is available for lease. The vacancy rate for Class A properties is at 18.8%, up from 13.7% as of October 2018. Year-to-date net absorption is at 1.9 million sq. ft., up from 321,000 sq. ft. year-over-year, due in large part to the new 1.7 million-sq.-ft. TJ Maxx distribution center that opened its doors on the city’s south side in Q2 2019, adding more than 1,000 jobs to the city. While the asking price for industrial properties has steadily grown over the past few years, it is currently at an average monthly rate of $0.51 per sq. ft. with slight fluctuations during the time in between.

McCoy’s expands in Comal County. The McCoy Corporation is expanding its New Braunfels-based door and millwork operation by investing $5.75 million to modify an existing 102,940-sq.-ft. facility. The current facility supplies more than 70 McCoy’s Building Supply retail store locations in over 50 markets in Texas. According to the New Braunfels Economic Development Corporation, an additional $250,000 grant will be issued to McCoy Corporation in order to hire 38 additional local employees within five years. McCoy’s is one of the largest private building-supply companies in the nation with annual sales of $886 million in 2018. McCoy’s operates a total of 88 stores in five states; distribution centers in Burnet, Pharr and Midland; and millwork facilities in New Braunfels and McAllen.

The economy grew at a robust pace. Recent job growth rose despite tight labor markets. The unemployment rate ticked down to 3.0% in September, the state’s figure held steady at 3.4%, and the nation’s rate dropped to a five-decade record low of 3.5%. San Antonio jobs grew at a robust 4.6% annualized rate in the third quarter. Growth across industries during this period was mainly positive, with construction jobs leading expansion with a sizeable 29.1% increase (3,500 jobs), followed by leisure and hospitality growth of 3,800 jobs. Trade, transportation and utilities, health care, and professional and business services also saw net hiring, adding a combined 3,100 jobs.