Commercial real estate is taking off
Web Posted: 11/08/2005 12:00 AM CST
Adolfo Pesquera
Express-News Business Writer
With the lowest vacancy rates in memory for retail centers and already booming levels of construction, San Antonio is ready to be compared with boomtowns such as Phoenix, Orlando and Las Vegas, a real estate broker told local industry leaders Monday.
Larry Baumgardner, president of Dominion Advisory Group, and other commercial real estate speakers at the 2006 forecasting symposium said San Antonio is becoming one of the premier markets in the nation.
Speaking Monday to the ballroom full of commercial real estate brokers at the Westin La Cantera resort, Baumgardner said investors from all over the country see San Antonio as the next Phoenix.
"They believe en led land and retail centers here are more valuable to them than any stocks or bonds," Baumgardner said.
Over the past four years, the city's Economic Development Foundation has attracted an average of 18 corporate moves a year, said Mario Hernandez, president of the agency.
There are currently 104 active prospects, he said, and the prospect list has been above 100 for eight consecutive quarters.
"This is our time," Hernandez said.
The city could see a massive increase in retail properties, Baumgardner said — as much as 6 million square feet in deals over the next 12 to 24 months. That is about double the average of the past few years.
The lion's share of investment, he said, is coming from out-of-town pension funds, real estate investment trusts and other large developers.
"Local money is strictly on the sidelines," Baumgardner said.
Land development is reflecting the major shift in participants, said Steve Raub of Investment Realty Co.
In the 1990s, most new housing was built by local companies that bought lots from developers. Today, major national firms have moved in and bought out the bigger local firms. They've acquired huge tracts and are doing their own development, squeezing out the traditional developers, Raub said.
Since 1998, housing starts have almost doubled to near 14,000 a year, he said. It's a huge shift that is benefiting San Antonio and its bedroom communities.
In the industrial properties sector, Hernandez noted that 16 percent of the Economic Development Foundation's prospects are looking for warehouse-distribution real estate.
"That is usually closer to 10 percent," he said.
http://www.mysanantonio.com/business....164c4bbd.html
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I just want lightrail damnit!
If that's true, great, but SA is going to have to lure the bigtime employers in order to sustain that growth. That's tough to do when there are two other cities larger than SA, not to mention Austin all trying to get jobs in their areas. The allure of Phx is the proximity to both Vegas and LA, as well as what used to be both cheap land and labor. Labor is still cheap, but the land is the fastest appreciating in the nation.
I hope not...its already hot enough.
It's a dry heat.I hope not...its already hot enough.
You know, a dry 114 degrees on a daily basis.
More like Phoenix would be Mexico if not for San Antonio... sorry but I have been there many times.. it's not that impressive. Nice clean town.. but it's no San Antonio.
They got no water.. no trees.. it's concrete jungle with a mountain view.. I think that new Manager is a waste of money... get someone local that does not need 250k to make ez decisions that are not stupid like giving esperanza center 80ger to hold political functions. Or 40ger toilets for bums downtown.
Those restrooms downtown will be for the general public as well.
And they are needed.
And she's not the one doing this, this was a city council idea from the get go almost two years ago.
Too bad they got cancelled.
Careful what you wish for.
Phoenix is a crapbag of sprawl.
What got cancelled?
The downtown restrooms?
No they didn't.
Yeah. In another forum I said this was either a very good thing or very bad thing.
All depends on how smart we grow.
Im here in Phoenix now, and I kinda like it here.
Some of the intersections are stupid, i hate how there is no green.
I hate how hot it is here NOW.
But there is alot of development.
New football stadium, new hockey, remodeled AWA, Arizona Mills mall with every store imaginable.
Claim Jumper - Best resteraunt EVER.
In N Out - Best hamburger EVER.
Also places like Scottsdale, Awatukee, and area is really nice.
If we could develop the corporate things they have and business there in SA?
Id love that.
Phoenix is an awesome city. It's similar to San Antonio already in a lot of ways. When I first moved here, I thought it would be a big culture shock for me coming from Los Angeles, but the transition was super easy for me because it's actually very similar to Phoenix (where I grew up).
Phoenix has a really awesome downtown. They didn't when I was growing up but they really cleaned it up nicely after I was already living in L.A. and it was a pleasure to go back to.
And TPark is right, suburbs are very very nice there .. Awatukee, Cave Creek, etc.
That place is awesome too, I was up there last week for dinner at a place called Cartwright's.Cave Creek
Awesome food, awesome town, and it was 12 degrees cooler!!!
It was like 50 something, had to have a jacket, that was nice.
My sister's house is in Cave Creek. She moved to that area a few years back from central Phoenix and her inlaws live in Awatukee. It's all very very nice.
Cave Creek from central Phoenix would be Bulverde from central San Antonio in terms of distance.
I don't know exactly how far Bulverde is, but it's about 30 miles from the Phoenix airport to my sister's house.
Sky Harbor?
If you're talking Sky Harbor then both places (Bulverde; Cave Creek) are pretty much an equal distance from the city cores.
Last edited by TheWriter; 11-09-2005 at 03:45 AM.
Yes Sky Harbor.
I'd say San Antonio is a boomtown comparable to the other Sunbelt cities, sure.
It's finally got that momentum going.
There will be some challenges ahead, for example, when the quaint little Latino neighborhoods close to downtown with the Craftsman cottages get "discovered," and the out-of-towners invade.
we still need to maintain our uniqueness in what we do. and i dont really mean that small town idiot mentality neither.
dont worry buddy, we shall still go toe to toe someday and you will again lose.we should still tear down the tower of the americas though. then and only then will we improve as a city
/buddy
Indeed. That is what San Antonio must be careful not to lose in the midst of explosive economic growth.we still need to maintain our uniqueness in what we do. and i dont really mean that small town idiot mentality neither.
Great. That means more college educated Yuppie Anglos for the poorly educated local Hispanics to serve.
The article neglected to mention that.
Buy real estate.
Always looking for a way to make SA look bad. Poor MB...
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