San Antonio, TX

San Antonio has emerged as one of the most dynamic industrial markets in Texas, driven by its strategic position on the I-35 corridor, a large and growing population, and increasing industrial development activity.

Market Overview

San Antonio’s industrial market has absorbed significant new supply in recent years. The city’s position between Austin and the Mexican border makes it a natural distribution hub for both domestic and cross-border logistics.

Economic Growth

San Antonio’s economy has diversified significantly over the past decade. Military and government employment, historically the largest sector, has been joined by healthcare, manufacturing, and increasingly, technology. Toyota’s manufacturing presence has been a catalyst for supplier investment in the region.

Construction Activity

Industrial construction has surged in San Antonio, driven by e-commerce demand, nearshoring activity, and population-driven logistics needs. Build-to-suit and speculative development are both active segments of the market.

Investment Considerations

San Antonio offers scale that tertiary markets don’t, with better liquidity and a more institutionally understood risk profile. The opportunity is in identifying assets where the market’s growth hasn’t yet been fully priced in — typically secondary locations within the metro that benefit from the same demand drivers.