Currently the real estate business all over America has been showing signs of picking up steam again, but not in the traditional sense. You might say that large warehouse manufacturing real estate is not the typical hot spot any longer, but short term leasing to fulfill local or federal contracts with the government have been helping build up the San Antonio commercial real estate market currently.
The reasons vary for large parcels not being needed any longer, but the main one is that outsourcing to other countries is still a less expensive alternative than creating the same products locally. San Antonio is starting to show up on the business real estate radar a little more frequently, as the city offers a combination of low cost of doing business, and a base of local talent that is highly educated, and has been out of work for most of the last three years. So marketing, sales, engineering, management, and core support personnel are in place and ready to work for a lower wage than say in Houston, or Dallas.
A shrewd developer would be looking at converting a lot of the manufacturing sector into modern industrialized office space for local, national, and international companies to rent for satellite locations. Currently it is going to waste, and creating a high tech, but industrial minimalist look would attract prospective businesses. This would also kill some of the urban blight seen by freeway, and Interstate travelers coming in and out of the city on a regular basis, and give the city a little tweak or makeover around the rough edges. Believe it or not one-room offices, and space for cafe’s and bistros are in high demand right now, and you will see an even larger demand soon. Many of those displaced workers from 2008 and on have had to create their own business enterprises on a small scale to just bring in a paycheck to feed their families.
These businesses were created out of desperation, but a large percentage have pulled out of their terrible two’s and have started to mature to the point where they need legitimate leased business space to operate with new employees coming onboard. Is the worst over for the commercial real estate sector in San Antonio? The answer is not completely, but there enough activity to create the momentum everyone has been waiting for, and the time is right start new business concerns, and expanding the older ones. In addition, the family entertainment venues keep traffic flowing into the Alamo City, and is most likely the deciding factor when it comes to needing more eating choices in the area.