Figures

San Antonio Industrial Figures - Q1 2025

April 9, 2025 5 Minute Read

Several consecutive quarters of occupier caution was reflected in suppressed absorption in Q1. Deal cycles have lengthened amid lingering economic uncertainty, and tenants have opted in many cases to renew in place rather than occupying newly delivered or newly finished-out space. Total Net Absorption fell to 195,031 sq. ft. in Q1, approximately consistent with the rolling four-quarter average trendline but a significant drop from 1.1 million sq. ft. in Q4.
2.7 million square feet of new deliveries hit the market in Q1, which helped to push vacancy up to 10.7% in a 170-basis point (bp) increase over Q4. Vacancy continues to be concentrated amongst new deliveries and in larger buildings, climbing 270 bps to 14.0% in buildings larger than 300,000 sq. ft. By contrast, properties under 150,000 sq. ft. are 8.1% vacant and have seen the majority of leasing activity.
Deal sizes are also trending downward: by deal count, the majority of leases signed in Q1 were under 100,000 sq. ft.
Rental rates dipped slightly but are expected to grow as speculative deliveries lease up and new construction slows.