Significant leasing activity in the Northeast and South submarkets pushed market-wide absorption to over 1.1 million sq. ft. at the close of 2018.
San Antonio’s flourishing industrial market sparked increases in weighted average asking NNN rents, closing the quarter at an average of $5.88 per sq. ft. market wide.
A number of large tenants took occupancy in Q4 2018, decreasing the market-wide vacancy rate by 90 basis points (bps) from 9.7% in Q3 2018 to 8.8% in Q4 2018.
Deliveries cooled off in the fourth quarter with two speculative developments totaling 122,707 sq. ft. completing in Q4 2018. However, over 2.2 million sq. ft. remain underway with deliveries slated for 2019.