Market Reports San Antonio[444]

Real Estate Market Overview 2004 San Antonio Once a small settlement founded by Spanish missionaries in the early 1700s, San Antonio is now the ninth largest city in the United States and is located in South Central Texas in the I-35 corridor, the fastest growing region of the state. The city offers proximity to other major Texas population centers and is midway between the nation's east and west coasts. San Antonio, the most visited city in Texas, is anchored by three key industries: health care-biomedical, tourism and the military. Quick Facts Land Area 3,326.40 square miles Population Density (2000) 478.7 people per square mile Counties Bexar, Comal, Guadalupe, Wilson Area Cities and Towns Converse, Leon Valley, Live Oak, New Braunfels, San Antonio, Seguin, Universal City Real Estate Center Market Overview 2004 San Antonio, Texas Table of Contents Demographics ..............................................................................................3 Education .....................................................................................................8 Employment .................................................................................................9 Economy ....................................................................................................14 Infrastructure ..............................................................................................15 Public Facilities ..........................................................................................16 Multifamily ..................................................................................................17 Housing ......................................................................................................19 Retail ..........................................................................................................22 Hotel...........................................................................................................28 Office..........................................................................................................29 Industrial ....................................................................................................32 -2- Real Estate Center Market Overview 2004 San Antonio, Texas San Antonio Market Overview 2004 Demographics San Antonio MSA Population Percent Year Population Change 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 1,324,749 1,348,596 1,377,938 1,406,878 1,438,981 1,468,690 1,494,296 1,519,874 1,546,947 1,572,570 1,592,383 1,626,871 1,660,205 0.4 1.8 2.2 2.1 2.3 2.1 1.7 1.7 1.8 1.7 1.3 2.2 2.0 Source: U.S. Census Bureau County Population Growth County Bexar Comal Guadalupe Wilson 2002 Population 1,446,333 85,109 94,215 34,548 Source: U.S. Census Bureau Growth 1990 - 2002 (percent) 22.0 64.2 45.2 52.5 -3- Real Estate Center Market Overview 2004 San Antonio, Texas Area Cities With 10,000 or More Residents City San Antonio New Braunfels Seguin Schertz Universal City Converse 2000 Population 1,114,646 36,494 22,011 18,694 14,849 11,508 Source: U.S. Census Bureau Growth 1990-2000 (percent) 14.8 31.5 5.3 75.8 11.2 28.6 -4- Real Estate Center Market Overview 2004 San Antonio, Texas Texas Metropolitan Area Population Change, 1990 - 2002 Metropolitan Area McAllen-Edinburg-Mission Austin-San Marcos Laredo Dallas Brownsville-Harlingen-San Benito Brazoria County Houston Fort Worth-Arlington Texas Bryan-College Station San Antonio Killeen-Temple Galveston-Texas City Tyler Sherman-Denison Amarillo El Paso Waco Victoria Lubbock Longview-Marshall Corpus Christi Texarkana Wichita Falls Odessa-Midland Beaumont-Port Arthur Abilene San Angelo 1990 2002 Percent Population Population Change 383,545 846,227 133,239 2,676,248 260,120 191,707 3,321,911 1,361,034 16,986,335 121,862 1,324,749 255,299 217,396 151,309 95,019 187,514 591,610 189,123 74,361 222,636 193,801 349,894 120,132 130,351 225,545 361,218 119,655 98,458 Source: U.S. Census Bureau 614,474 1,349,291 207,611 3,743,254 353,561 257,256 4,420,081 1,802,465 21,779,893 156,099 1,660,205 319,163 261,219 181,437 113,860 222,915 697,562 217,713 84,932 247,574 212,288 382,188 131,027 138,960 239,981 382,242 125,647 103,018 60.2 59.4 55.8 39.9 35.9 34.2 33.1 32.4 28.2 28.1 25.3 25.0 20.2 19.9 19.8 18.9 17.9 15.1 14.2 11.2 9.5 9.2 9.1 6.6 6.4 5.8 5.0 4.6 -5- Real Estate Center Market Overview 2004 San Antonio, Texas San Antonio MSA Projected Population Texas State Texas Water Data Center Year (Scenario 0.5) Development Board 2005 2010 2015 2020 1,695,030 1,795,559 1,895,424 1,990,258 2,037,198 2,465,501 Sources: Texas State Data Center and Texas Water Development Board Household Composition San Antonio MSA Texas Average household size (2000) Population younger than 18 (2000, in percent) Population 65 and older (2000, in percent) Source: U.S. Census Bureau 2.78 28.3 10.7 2.74 28.2 9.9 Distribution by Race and Hispanic or Latino Origin (in percent) San Antonio MSA 1990 White Black Asian American Indian Other Two or more races* Hispanic (of any race) 73.8 6.7 1.2 0.4 16.1 46.5 2000 70.6 6.6 1.5 0.8 16.9 3.5 51.2 Texas 1990 2000 60.8 11.7 0.3 1.8 0.1 25.3 71.0 11.5 2.7 0.6 11.7 2.5 32.0 * For the 2000 Census, the Census Bureau changed the "race" options, allowing people to report their race as "other" or as two or more races. Source: U.S. Census Bureau -6- Real Estate Center Market Overview 2004 San Antonio, Texas Projected Population Growth, 2000-2020 (in percent) Source: Texas State Data Center (Scenario 0.5) -7- Real Estate Center Market Overview 2004 San Antonio, Texas San Antonio Market Overview 2004 Education Educational Level, Persons Age 25 and Older 2000 (in percent) Level of Education High school graduate Some college, no degree Associate's degree Bachelor's degree Graduate or professional degree Source: U.S. Census Bureau, 2000 Census San Antonio MSA Texas 26.2 23.3 5.4 13.7 8.2 26.3 21.7 5.2 16.1 7.4 Educational Level, Persons Age 25 and Older 2000 (in percent) Level of Education Completed High School Bachelor's Degree or More Source: U.S. Census Bureau San Antonio PMSA Texas 81.1 15.9 79.2 23.9 Local College and University Enrollment School Alamo Community College District Baylor University Academy of Health Sciences - San Antonio St. Mary's University Trinity University Fall 2002 Spring 2003 Fall 2003 Spring 2004 44,964 48,984 48,726 *51,563 105 4,242 2,700 117 3,938 2,560 112 4,119 2,707 - Sources: Educational institution and Texas Higher Education Coordinating Board *estimated -8- Real Estate Center Market Overview 2004 San Antonio, Texas San Antonio Market Overview 2004 Employment Top Ten Employers Employer Fort Sam Houston USAA Lackland AFB KellyUSA Randolph AFB H-E-B Food Stores City of San Antonio Northside I.S.D. San Antonio I.S.D. Methodist Healthcare System Sector Military Insurance Military Employees 17,549 14,955 13,209 Aviation, Logistics, Business, Industrial 5,200 civilian; 7,000 gov. Military Grocery Government Public education Public education Health care 10,733 10,469 9,813 8,800 8,000 7,200 Source: San Antonio Economic Development Foundation Jul-2003 Top Ten Private Employers Employer USAA H-E-B Food Stores Methodist Healthcare System SBC Administaff, Inc. Baptist Health System Citicorp Taco Cabana, Inc. Cullen Frost Bankers Southwest Research Institute Sector Insurance Grocery Health care Telecommunications Employer organization Medical services Customer service center Restaurants Financial services Applied research Employees 14,955 10,469 7,200 6,700 4,300 4,225 3,200 3,000 2,886 2,550 Source: San Antonio Economic Development Foundation Jul-2003 -9- Real Estate Center Market Overview 2004 San Antonio, Texas Employment Growth by Industry - 2003 San Antonio MSA Employment growth (percent) Unemployment rate (percent) New jobs Employment growth by sector (percent) Manufacturing Construction Natural Resources and Mining Trade, Transportation and Utilities Information Financial Activities Professional and Business Services Educational and Health Services Leisure and Hospitality Government Total Nonfarm -4.6 -3.2 -4.2 -1.4 -3.7 1.5 -0.3 2.4 0.4 0.7 -0.3 -5.0 -3.0 0.6 -1.8 -5.8 0.9 -1.1 3.3 1.2 1.3 -0.5 -0.3 5.5 Texas -0.5 6.8 -2500 -49,800 Source: Texas Workforce Commission and U.S. Bureau of Labor Statistics - 10 - Real Estate Center Market Overview 2004 San Antonio, Texas Texas Metropolitan Area Employment Change, 1990-2003 Metropolitan Area Austin-San Marcos Laredo McAllen-Edinburg-Mission Brownsville-Harlingen-San Benito Bryan-College Station San Antonio Killeen-Temple Tyler Dallas Texas Fort Worth-Arlington Houston Victoria Amarillo El Paso Lubbock Waco Longview-Marshall Odessa-Midland Corpus Christi San Angelo Brazoria County Abilene Sherman-Denison Wichita Falls Galveston-Texas City Texarkana Beaumont-Port Arthur 1990 2003 Percent Employment Employment Change 454,618 48,766 128,560 90,866 58,292 587,550 87,724 70,970 1,467,668 8,071,312 721,875 1,720,152 34,648 92,967 229,358 107,823 86,347 86,048 104,401 150,142 43,587 93,552 52,389 43,804 56,897 105,423 51,575 157,435 746,750 77,065 197,870 131,457 82,368 796,235 117,801 93,561 1,916,607 10,284,203 915,919 2,180,719 43,652 113,051 274,926 128,854 102,310 100,952 120,374 172,705 49,798 105,320 58,513 48,866 62,812 114,327 55,658 167,915 64.3 58.0 53.9 44.7 41.3 35.5 34.3 31.8 30.6 27.4 26.9 26.8 26.0 21.6 19.9 19.5 18.5 17.3 15.3 15.0 14.2 12.6 11.7 11.6 10.4 8.4 7.9 6.7 Source: U.S. Bureau of Labor Statistics and The Real Estate Center - 11 - Real Estate Center Market Overview 2004 San Antonio, Texas San Antonio MSA Employment Percent Year Employment Change 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 587,550 594,836 619,007 640,537 668,235 688,646 696,192 712,224 728,379 743,056 754,784 763,766 770,157 796,235 1.2 4.1 3.5 4.3 3.1 1.1 2.3 2.3 2 1.4 1.3 0.8 3.4 Source: U.S. Bureau of Labor Statistics Annual Percent Change in San Antonio MSA Employment Source: U.S. Bureau of Labor Statistics - 12 - Real Estate Center Market Overview 2004 San Antonio, Texas San Antonio MSA Unemployment Rate (in percent) Source: U.S. Bureau of Labor Statistics - 13 - Real Estate Center Market Overview 2004 San Antonio, Texas San Antonio Market Overview 2004 Economy San Antonio MSA Gross Retail Sales Year Total Sales Sales per Capita $7,155 8,176 8,769 10,439 10,668 10,830 11,039 10,275 10,516 12,882 13,429 13,697 12,258 1990 $9,478,870,396 1991 11,026,166,857 1992 12,083,614,167 1993 14,686,189,543 1994 15,351,747,610 1995 15,906,173,646 1996 16,496,020,506 1997 15,617,073,662 1998 16,267,967,206 1999 20,257,493,392 2000 21,383,485,070 2001 22,284,034,849 2002 20,350,617,632 State Average 2002: $12,143 Source: Texas Comptroller's Office Mar 2004 - 14 - Real Estate Center Market Overview 2004 San Antonio, Texas San Antonio Market Overview 2004 Infrastructure San Antonio Airline Boardings Airport 1998 1999 2000 2001 2002 2003 Enplaned 3,505,372 3,538,243 3,647,094 3,444,875 3,365,333 3,250,741 Deplaned Total - 3,658,241 3,459,521 3,349,283 3,285,213 3,505,372 3,538,243 7,305,335 6,904,396 6,714,616 6,535,954 Source: San Antonio International Airport San Antonio Cargo Enplaned (pounds) Airport 1998 1999 2000 2001 2002 2003 San Antonio International Airport 98,256,780 93,008,883 91,505,339 69,737,240 82,687,287 79,302,604 Source: San Antonio International Airport - 15 - Real Estate Center Market Overview 2004 San Antonio, Texas San Antonio Market Overview 2004 Public Facilities San Antonio City Public Facilities Building Permits San Antonio City Building Permit Office - 16 - Real Estate Center Market Overview 2004 San Antonio, Texas San Antonio Market Overview 2004 Multifamily San Antonio Apartment Statistics 2003 San Antonio Average rent per square foot Average rent for units built since 2000 Average occupancy (percent) Average occupancy for units built since 2000 (percent) Source: Apartment MarketData Research Texas Metro Average $0.79 $0.91 92.1 90.8 $0.71 $0.79 94.0 95.4 San Antonio MSA Multifamily Building Permits (5+ Family Bldg. Permits in units) Source: U.S. Census Bureau - 17 - Real Estate Center Market Overview 2004 San Antonio, Texas San Antonio City Multifamily Building Permits San Antonio City Building Permit Office - 18 - Real Estate Center Market Overview 2004 San Antonio, Texas San Antonio Market Overview 2004 Housing Housing Affordability - Fourth Quarter 2003 Percent of Households THAI for That Can Afford First-time Median-priced Home THAI* Homebuyers San Antonio MSA Texas MLS Total U.S. Total 62 54 55 1.23 1.06 1.06 1.06 0.92 0.77 * The THAI is the ratio of median household income to the income required to buy the median priced home using currently available mortgage financing. Standard financing is a 30-year loan covering 80 percent of the cost of the home. A THAI of 1.00 indicates that the median household income is just enough to qualify for a loan sufficient to purchase the median-priced home. Source: Real Estate Center at Texas A&M University Price Distribution of MLS Homes Sold, San Antonio Area, 2003 (in percent) Price Range $29,999 or less 30,000 - 39,999 40,000 - 49,999 50,000 - 59,999 60,000 - 69,999 70,000 - 79,999 80,000 - 89,999 90,000 - 99,999 100,000 - 119,999 120,000 - 139,999 140,000 - 159,999 160,000 - 179,999 180,000 - 199,999 200,000 - 249,999 250,000 - 299,999 300,000 - 399,999 400,000 - 499,999 500,000 and more 1999 2000 2001 2002 2003 3.0 3.8 6.2 8.5 10.2 9.9 9.4 7.0 10.8 8.6 5.8 4.0 2.8 4.5 2.1 2.0 0.7 0.7 2.6 3.3 5.5 8.1 9.5 9.3 9.2 7.1 10.4 9.1 6.2 4.4 3.4 4.9 2.6 2.4 1.1 0.9 2.5 2.7 4.0 6.9 8.6 9.1 9.7 7.1 11.0 10.3 6.9 5.3 3.6 4.9 2.8 2.5 1.0 1.0 2.6 2.5 3.6 5.8 7.5 8.2 8.8 7.0 11.7 10.8 7.6 5.9 3.8 5.8 3.2 2.9 1.0 1.2 2.2 2.5 3.3 4.8 6.5 7.4 8.2 7.0 11.6 11.9 7.8 6.2 4.1 6.7 4.0 3.5 1.1 1.3 Source: Real Estate Center at Texas A&M University - 19 - Real Estate Center Market Overview 2004 San Antonio, Texas Property Tax Rates, 2003 Tax Rate per $100 Valuation $0.58 1.72 0.11 0.24 0.32 $2.97 Taxing Entity City of San Antonio San Antonio ISD Community College Hospital District Bexar County Total Source: Bexar County Appraisal District San Antonio MSA Single-family Building Permits (in units) Source: U.S. Census Bureau Average Sales Price of Single-family Home, San Antonio Area Source: Real Estate Center at Texas A&M University - 20 - Real Estate Center Market Overview 2004 San Antonio, Texas Single-family Home Sales Volume, San Antonio Area (Number of Units) Source: Real Estate Center at Texas A&M University - 21 - Real Estate Center Market Overview 2004 San Antonio, Texas San Antonio Market Overview 2004 Retail Retail Market Analysis San Antonio, Fourth Quarter 2003 All Types About Inventory Available % Vacant Average Rent 4Q Absorption YTD Absorption Regional Malls Inventory Available % Vacant 4Q Absorption YTD Absorption Power Centers (250K+) Inventory Available % Vacant Average Rent 4Q Absorption YTD Absorption 5,637,428 251,446 4.5 $20.83 150,932 577,813 5,267,588 308,254 5.9 $21.30 253,244 330,469 4,797,593 309,723 6.5 $21.09 N/A 766,701 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 7,657,016 1,286,292 16.8 (164,143) (147,540) 7,657,016 1,138,752 14.9 291,012 291,012 7,670,953 1,615,964 21.1 N/A (974,151) 2,326,629 306,026 13.2 0 21,800 2,326,629 327,826 14.1 0 0 2,326,629 327,826 14.1 N/A (148,526) 33,572,518 32,915,301 31,897,280 4,553,352 13.6 $14.05 83,598 767,901 4,248,026 12.9 $13.71 717,890 438,921 4,394,543 13.8 $13.35 N/A 103,261 4,725,467 490,761 10.4 $12.62 16,932 115,328 4,703,870 520,789 11.1 $11.66 64,323 87,402 4,561,505 525,419 11.5 $10.46 (80,457) Citywide 2003 Citywide 2002 Citywide 2001 CBD/South CBD/South CBD/South 2003 2002 2001 Community Centers (100K-249K) Inventory Available % Vacant Average Rent 4Q Absorption YTD Absorption 3,910,304 538,272 13.8 $14.08 49,669 12,483 4,150,689 628,909 15.2 $13.34 (8,143) (173,359) 4,143,439 455,550 11.0 $13.57 N/A 346,343 178,486 0 0.0 $9.85 0 0 178,486 0 0.0 $9.85 0 0 178,486 0 0.0 $9.85 0 0 Neighborhood Centers (30K-99K) - 22 - Real Estate Center Market Overview 2004 San Antonio, Texas Inventory Available % Vacant Average Rent 4Q Absorption YTD Absorption Strip Centers (Less than 30K) Inventory Available % Vacant Average Rent 4Q Absorption YTD Absorption 995,780 128,243 12.9 $12.39 44,928 32,354 912,743 100,747 11.0 $11.43 (16,108) (35,543) 852,984 60,835 7.1 $11.46 N/A * 24,000 0 0.0 $7.50 0 0 24,000 0 0.0 $7.50 0 0 24,000 0 0.0 $7.50 0 0 15,371,990 14,740,271 14,432,311 2,349,099 15.3 $11.66 2,212 292,791 2,071,364 14.1 $11.24 197,885 64,199 1,952,471 13.5 $10.82 N/A (35,632) 2,196,352 184,735 8.4 $12.91 16,932 93,528 2,174,755 192,963 8.9 $11.85 64,323 87,402 2,032,390 197,593 9.7 $10.55 N/A 68,069 Source: REOC Partners, Ltd. - 23 - Real Estate Center Market Overview 2004 San Antonio, Texas Retail Market Analysis San Antonio, Fourth Quarter 2003 Non-CBD/North Non-CBD/North Non-CBD/North 2003 2002 2001 All Types Inventory Available % Vacant Average Rent 4Q Absorption YTD Absorption Regional Malls Inventory Available % Vacant 4Q Absorption YTD Absorption Power Centers (250K+) Inventory Available % Vacant Average Rent 4Q Absorption YTD Absorption Community Centers (100K-249K) Inventory Available % Vacant Average Rent 4Q Absorption YTD Absorption Neighborhood Centers (30K-99K) Inventory Available % Vacant 28,847,051 4,062,591 14.1 $14.19 66,666 652,573 5,330,387 980,266 18.4 (164,143) (169,340) 5,637,428 251,446 4.5 21 150,932 577,813 3,731,818 538,272 14.4 $14.29 49,669 12,483 13,175,638 2,164,364 16.4 $11.45 28,024,437 3,727,237 13.3 $13.93 653,567 389,376 5,330,387 810,926 15.2 291,012 291,012 5,267,588 308,254 5.9 $21.30 253,244 330,469 3,972,203 628,909 15.8 $13.50 (8,143) (173,359) 12,565,516 1,878,401 14.9 $11.14 27,335,775 3,869,124 14.2 $13.64 N/A 183,718 5,344,324 1,288,138 24.1 N/A (825,625) 4,797,593 309,723 6.5 $21.09 N/A 766,701 3,964,953 455,550 11.5 $13.74 N/A 364,343 12,399,921 1,754,878 14.2 $10.87 - 24 - Real Estate Center Market Overview 2004 San Antonio, Texas Average Rent 4Q Absorption YTD Absorption Strip Centers (Less than 30K) Inventory Available % Vacant Average Rent 4Q Absorption YTD Absorption (14,720) 199,263 971,780 128,243 13.2 $12.51 44,928 32,354 Source: REOC Partners, Ltd. *Preliminary 133,562 (23,203) 888,743 100,747 11.3 $11.53 (16,108) (35,543) - N/A (103,701) 828,984 60,835 7.3 $11.58 * - San Antonio Retail Market Available Inventory, SF Source: REOC Partners, Ltd. San Antonio Retail Market Average Rent, $ / SF Source: REOC Partners, Ltd. - 25 - Real Estate Center Market Overview 2004 San Antonio, Texas San Antonio Retail Market Vacancy Rate, % Source: REOC Partners, Ltd. San Antonio Retail Market Absorption, SF Source: REOC Partners, Ltd. - 26 - Real Estate Center Market Overview 2004 San Antonio, Texas San Antonio City Retail Building Permits San Antonio City Building Permit Office - 27 - Real Estate Center Market Overview 2004 San Antonio, Texas San Antonio Market Overview 2004 Hotel Hotel* Occupancy and Rental Rates San Antonio Texas 2000 Rooms (000) Average daily rental rate Occupancy rate (percent) 2001 Rooms (000) Average daily rental rate Occupancy rate (percent) 2002 Rooms (000) Average daily rental rate Occupancy rate (percent) 2003 Rooms (000) Average daily rental rate Occupancy rate (percent) 32.1 320.8 31.2 314.3 30.5 307.1 29.7 296.8 $86.80 $71.56 61.8 59.3 $86.14 $70.27 60.7 57.3 $87.18 $70.11 61.0 55.4 $84.89 $68.78 60.4 54.3 Source: Office of the Governor Economic Development and Tourism and Source Strategies, Inc. of San Antonio *Only properties exceeding $16,600 in the current quarter are included; those units below $16,600 only result in 1.5% of the total state revenues, and have been excluded from this database. - 28 - Real Estate Center Market Overview 2004 San Antonio, Texas San Antonio Market Overview 2004 Office Office Market Analysis San Antonio, Fourth Quarter 2003 Citywide 2003 All Classes Inventory Available % Vacant (percent) Average Rent 4Q Absorption YTD Absorption Class A Space Inventory Available % Vacant (percent) Average Rent 4Q Absorption YTD Absorption Class B Space Inventory Available % Vacant (percent) Average Rent 4Q Absorption YTD Absorption Class C Space Inventory Available % Vacant (percent) Average Rent 4Q Absorption YTD Absorption 3,768,581 864,671 22.9 $14.86 (33,865) (72,791) 3,867,462 868,627 22.5 $15.02 38,006 (44,232) 663,182 253,982 38.3 $15.96 (4,794) (25,367) 664,182 228,615 34.4 $17.18 (5,842) (26,833) 3,105,399 610,689 19.7 $14.63 (29,071) (47,424) 3,203,280 640,012 20.0 $14.58 43,848 (5,107) 11,024,828 10,861,146 2,459,750 2,393,423 1,914,715 17.4 $16.53 60,816 35,072 1,841,816 17.0 $16.46 68,411 (186,581) 525,400 21.4 $15.52 11,383 13,305 502,931 21.0 $15.28 (1,044) 34,609 8,565,078 1,389,315 16.2 $16.83 49,433 21,767 8,467,723 1,338,885 15.8 $16.80 69,455 (221,190) 7,474,074 1,168,116 15.6 $20.57 (6,299) (152,452) 7,460,965 1,989,158 1,989,158 1,015,664 13.6 $20.85 (26,498) (247,748) 251,680 12.7 $21.36 (10,576) (105,271) 146,409 7.4 $21.53 (1,429) (44,881) 5,484,916 916,436 16.7 $20.29 4,277 (47,181) 5,471,807 869,255 15.9 $20.60 (25,069) (202,867) 22,267,483 22,189,573 5,112,090 5,046,763 17,155,393 17,142,810 3,947,502 17.7 $17.61 20,652 (190,171) 3,726,107 1,031,062 16.8 $17.69 79,919 (466,269) 20.2 $17.85 (3,987) (117,333) 877,955 17.4 $17.99 (8,315) (37,105) 2,916,440 17.0 $17.53 24,639 (72,838) 2,848,152 16.6 $17.60 88,234 (429,164) Citywide 2002 CBD 2003 CBD 2002 Non-CBD 2003 Non-CBD 2002 Source: REOC Partners, Ltd. - 29 - Real Estate Center Market Overview 2004 San Antonio, Texas San Antonio Office Market Available Inventory, SF, Year-End 2003 Source: REOC Partners, Ltd. San Antonio Office Market Average Rent, $ / SF, Year-End 2003 Source: REOC Partners, Ltd. - 30 - Real Estate Center Market Overview 2004 San Antonio, Texas San Antonio Office Market Vacancy Rate, %, Year-End 2003 Source: REOC Partners, Ltd. San Antonio City Office Building Permits San Antonio City Building Permit Office - 31 - Real Estate Center Market Overview 2004 San Antonio, Texas San Antonio Market Overview 2004 Industrial Industrial Market Analysis San Antonio, Fourth Quarter 2003 Citywide 2003 Combined Inventory Available % Vacant (percent) 4Q Absorption YTD Absorption Distribution/Warehouse Inventory Available % Vacant (percent) Average Rent 4Q Absorption YTD Absorption Service Center/Flex Inventory Available % Vacant (percent) Average Rent 4Q Absorption YTD Absorption 6,921,391 1,600,301 23.1 $8.92 118,335 159,132 6,645,319 1,652,119 24.9 $8.79 78,779 92,833 0 0 0.0 $0.00 0 0 0 0 0.0 $0.00 0 0 6,921,391 1,600,301 23.1 $8.92 118,335 259,132 6,645,319 1,652,119 24.9 $8.79 78,779 92,833 15,272,793 15,159,004 264,395 264,395 15,008,398 14,894,609 2,672,356 17.5 $4.00 151,775 (182,633) 2,376,793 105,204 15.7 $3.99 39.8 $3.14 48,108 18.2 $3.38 0 22,400 2,567,152 17.1 $4.01 194,597 (125,537) 2,328,685 15.6 $4.00 201,442 429,319 22,194,184 21,804,323 264,395 264,395 21,929,789 21,539,928 4,272,657 19.3 270,110 76,499 4,028,912 105,204 18.5 39.8 48,108 18.2 0 22,400 4,167,453 19.0 312,932 133,595 3,980,804 18.5 280,221 522,152 2002 2003 CBD 2002 Non-CBD 2003 2002 280,221 (42,822) 544,552 (57,096) 201,442 (42,822) 451,719 (57,096) Source: REOC Partners, Ltd. - 32 - Real Estate Center Market Overview 2004 San Antonio, Texas San Antonio Industrial Market Available Inventory, SF Source: REOC Partners, Ltd. San Antonio Industrial Market Average Rent, $ / SF, Year-End 2003 Source: REOC Partners, Ltd. - 33 - Real Estate Center Market Overview 2004 San Antonio, Texas San Antonio Industrial Market Vacancy Rate, % Source: REOC Partners, Ltd. San Antonio Industrial Market YTD Absorption, SF Source: REOC Partners, Ltd. - 34 - Real Estate Center Market Overview 2004 San Antonio, Texas San Antonio City Industrial Building Permits San Antonio City Building Permit Office - 35 - Real Estate Center Market Overview 2004 San Antonio, Texas This annual report is created free of charge by the Real Estate Center at Texas A&M University. We strive to provide the most accurate, up-to-date, and insightful data to paint a detailed picture of Texas’ Metropolitan Statistical Area’s. The Center also provides numerous publications, resources, and data on building permits, employment, population, and home sales at http://recenter.tamu.edu. Report compiled by: Administrative Coordinator Edith Craig Research Analysts Isilay Civan Blake Lacy Real Estate Center, 2115 TAMU, College Station, TX 77843-2115 Phone: 979.845.2031 | Fax: 979.845.0460 - 36 -