By: Sarah Carabias Rush, Chief Economic Development Officer
Unforgettable; this is the one word capturing my first few months here in the greater San Antonio region.
From the community’s warm welcome to working first-hand in this red hot real estate market, it’s clear why this dynamic community with deep Texas roots is blooming. The momentum here is supported by the region’s unapologetic commitment to growing its talent pipeline to support existing and incoming businesses. I see bright opportunities on the horizon for the San Antonio region, especially for those stakeholders looking to have an unforgettable positive impact on the long-term health of this place we call home.
There are a couple of trends that have swiftly become apparent in my short time here that I want to highlight and emphasize:
1. The San Antonio region should expect to be on the top of the list for commercial real estate developers.
There is a transformation happening in many critical sectors across the globe — many of which align strategically with the strengths of the greater San Antonio market. What I love about the San Antonio area is that the developers here can tap into the incredible history and culture to create unique spaces for the workplace of the future.
Developers seeking industrial investment opportunities who are willing to put in the site readiness due diligence and infrastructure can expect to have a multitude of potential manufacturing operations wanting to start production tomorrow. Logistics operations due to rapid e-commerce industry growth are also looking to tap into the fast-growing Austin-San Antonio corridor, and data centers will continue to be drawn to the region due to the continuous growth of technology and our area’s natural comparative advantages for those facilities.
Some data points to consider:
- A 2021 National Association of REALTORS® Report showed that the San Antonio area saw some of the highest positive net absorption in the office market in the U.S. over their 12-month reporting period ending in Q3 2021.
- CBRE recently reported 17 percent in total office vacancy and 9 percent in industrial vacancy for the San Antonio market.
2. San Antonio is an established major U.S. metro with ample room for growth.
The San Antonio-New Braunfels MSA population is estimated to grow to almost three million by 2026. Austin’s city limits are less than an hour’s drive north up IH-35 and the corridor between the two metros is thriving together. In fact, the San Antonio region is home to one of the nation’s fastest-growing cities, New Braunfels, which grew 56 percent over the last decade.
According to Redfin, the San Antonio area is seeing an influx of migration from Austin, Houston, and Dallas (yes, I am part of that in-migration!). Out-of-state relocations are coming from the West Coast, specifically California and Washington, and the East Coast, specifically Washington DC and New York City. At $336,490, the 2021 Average Home Sale Price in the San Antonio MSA was lower than Austin by 40.5%, Houston by 9.8%, and Dallas by 20.0%.
In closing, it’s no surprise to me that people are flocking to our region, and industry is taking note. I’ve heard directly from business leaders who have recently relocated to the region that the community’s genuine partnership and desire to work at the speed of business makes all the difference.
As the San Antonio region grows, our goal at greater:SATX is to ensure that we invest in smart growth to the benefit of all San Antonians, past, present, and future. Please reach out to me at firstname.lastname@example.org or my team if you have questions about locating or expanding your business to SATX. We look forward to welcoming you.