12296 US Highway 181
- 12296 US Highway 181 San Antonio, TX 78223
- Property Type:
- Single Tenant
- Cap Rate:
- 10.19% pro-forma cap
- Square Feet:
- 10,825 sqft
- Lot Size:
- 2.81 Acres
- Price Per Square Foot:
- Year Built:
- 10,825-Square-Foot Industrial Property Situated on 2.81 Acres
- Featuring Metal Construction, and Newly Installed Power and City Water
- Ideal for Owner-User or Value-Add Investment Opportunity for IOS
- Seller Financing Available with Below-Market Rates
- Great Location with Frontage to Highway 181 and Four Miles Away from I-35
- Situated in High Growth Submarket with Rents Rising 10.3 Percent
Marcus & Millichap is pleased to present the opportunity to acquire the property located at 12296 U.S. Highway 181 in San Antonio, Texas. The subject property consists of approximately 10,825 square feet of warehouse space and is situated on 2.81 acres of land. The single-tenant asset features metal construction, one grade-level door, and newly installed three-phase power with 400 amps and 120/208 volts. For sale as vacant, the property can be acquired for owner use or as an investment with seller financing at below-market interest rates. Given its low coverage ratio of just 9 percent, the property can be redeveloped for industrial outdoor storage (IOS) use; a feature that is highly sought after in the San Antonio market. For example, there is only one comparable property available for lease within a nine-mile radius of the subject asset. Situated just four miles from the onramp to Interstate 35, the property has frontage along U.S. Highway 181 in the South San Antonio submarket.
South San Antonio is a large submarket, containing 39.6 million square feet of industrial space. The submarket has experienced a significant amount of growth over the last year as net deliveries hit a record of 6.7 million square feet in 2022. Last year, industrial demand kept pace with new deliveries and the vacancy rate sat at just 2.8 percent going into 2023. However, new deliveries outpaced demand during the first quarter with the completion of large speculative warehouses, pushing the vacancy rate up to 7.9 percent. Despite the influx in new supply, annual market rent growth in South San Antonio bucked the national trend and hit a record high of 10.3 percent in Q1, outpacing the overall market by 120 basis points. With construction activity dropping to nearly a three-year low at 1.8 million square feet (representing 4.5 percent of inventory), new supply will have less of an impact on rents and vacancies going forward (CoStar).
Home to the Alamo and famous River Walk, San Antonio metro is the primary residence of 2.5 million people. San Antonio is the second most populous city in Texas behind Houston, housing more than 1.5 million residents. The local economy is anchored by the industries of healthcare, tourism, and national defense. An extensive transportation network provides shipping options to domestic and international markets. Additionally, the formation of the Eagle Ford Shale that runs through Atascosa and Wilson counties has cultivated a thriving energy sector. Valero Energy, one of the largest oil companies in the U.S., is headquartered in San Antonio. Major private employers include AT&T, Wells Fargo, USAA, and Toyota. San Antonio offers a high quality of life with a variety of entertainment including the NBA’s San Antonio Spurs, SeaWorld, and Six Flags.