San Antonio, TX Industrial Market Report Q3 2026

2023 Delivery Peak Fades 62%; Vacancy Holds at 10.7%

Demand

San Antonio absorbed 434K SF in Q3 2026, against 409K SF in the same quarter last year. Vacancy is 10.7%, 5 bps looser than Q3 2025. Bandera County is the tightest submarket at 0.0% vacancy; Far North Central leads rent growth at +3.5%. Trailing-12-month absorption of 2.89M SF is up from 1.68M SF a year earlier. Asking rent of $11.30/SF is up 1.8% year over year and within 1% of the Q2 2026 peak of $11.32/SF.

Supply

San Antonio delivered 339K SF in Q3 and 3.58M SF over the trailing twelve months (-36% versus the prior TTM period). Space under construction equals 2.1% of inventory, concentrated in Medina County at 10.1% of its stock. Annual deliveries peaked at 9.49M SF in 2023. Q3 deliveries were less than half of last year’s 1.79M SF. The 4.18M SF pipeline equals about six quarters of absorption at the trailing pace.

Investment Market

San Antonio recorded $0.7B in sales over the trailing twelve months, -13% against the prior TTM period; Q3 accounted for $156M. The high-water mark in this series is $0.9B in 2021.

San Antonio cap rates average 8.14%, up for 19 straight quarters. Pricing sits at $130/SF, higher for 10 consecutive years. The cap rate is 132 bps above the Q4 2021 low of 6.81%.