The San Antonio industrial market closed out the year with strong, positive absorption. The most move-ins occurred in Q4 2019 with over 391,000 sq. ft. of space absorbed, bringing the year-end total to 956,507 sq. ft. of net absorption.
Flex/R&D asking rates took a dip market-wide, with a quarter-over-quarter decrease of $0.73. This was due mainly to a slowdown in recent activity for tenants seeking Flex/R&D product.
Several large Class A move-ins occurred, causing the Class A vacancy rate to decline by 100 basis points (bps) quarter-over-quarter.
Over 1.2 million sq. ft. of warehouse/distribution space was added to the pipeline during Q4 2019, bringing the under construction total to over 2.5 million sq. ft.