The subject property is located within the Pan American Industrial Park of San Antonio’s northeast submarket, the most robust and prolific submarket in the San Antonio MSA. The annual average daily traffic count of Interstate 35, which connects to both Interstates 410 and 10 to the west and east, is in excess of 148,000 vehicles. This area has established itself as San Antonio’s primary distribution corridor due to its location only minutes away from Loop 410 and Downtown San Antonio.
Furthermore, the area is adjacent to Brooke Army Medical Center (BAMC), the United States Army’s premier medical institution. Located on Fort Sam Houston, BAMC is the Army’s largest and busiest medical center, with over 450 beds. Fort Sam Houston has had a close and harmonious relationship with the City of San Antonio since its existence. More than 27,000 military and civilian personnel work at the post. It is one of only three military facilities in Texas.
The industrial market in San Antonio has experienced a significant increase in demand, evidenced by the 1.2 million square feet of absorption in 2017. As such, over the past year, the occupancy rate for warehouse and flex space has increased, up to 92.6% from 90.7% in 2016. With industrial space in great demand in the San Antonio region, there is currently 1 million square feet of industrial space under construction. Demand is far outstripping supply for industrial space in San Antonio, and with average rents for industrial space at $5.25 PSF, the below market rental rate currently being paid by ReCommunity is a sustainable figure that should allow the tenant to be profitable at the location throughout the remainder of its initial term and options. Furthermore, the tenant’s investment of $10+ million in equipment upgrades at the facility is proof that it plans to operate at this location for the long term.
This property is listed in conjunction with Texas-licensed real estate broker Delta Commercial.
