Currently, San Antonio has over 1.6 million SF of class A office products under development with at least fifty percent of this space pre-leased. Most notably, Credit Human Tower at Pearl, The Oxbow on Broadway, and one of my favorites The Inwood Village at Bitters/1604. But with all of this growth it makes us consider if this occupancy is coming from new business development or a game of musical chairs moving from older products.
The demand for industrial and flex space product continues to rise into 2020. With new construction being completed along the I-35 corridor, vacancies are limited and rental rates continue to rise. The Texas Enterprise Fund initiative has enticed several manufacturing firms to move to the state, increasing demand for new industrial facilities. Continued economic expansion nationally and strong regional demographics are driving demand for industrial space in this highly sought after distribution market.