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The future of S.A. market is bright, real estate forum finds
San Antonio Business Journal - December 1, 2006
by Tricia Lynn Silva

San Antonio's population is growing and the city continues to show gains in terms of employment. A low cost of living is helping to make it attractive to an ever-growing list of corporations -- all findings of the 2006 Investment Real Estate Symposium presented by the San Antonio/South Texas Chapter of CCIM (Certified Commercial Investment Member).

Now it's time to look at how some more sectors of the local real estate market are contributing to the bigger, bright picture.

Land plays San Antonio is in the midst of a land bonanza, according to Phil Crane, who spoke on the state of the raw land sector. Over the course of 2005, for example, a total of 15,680 acres of land were platted for master development projects -- quite a jump from the 5,246 acres platted in all of 2004.
The activity in this sector has created a seller's market, adds Crane, who is a principal with locally based Providence Commercial Real Estate Services Inc. In terms of the real estate cycle, we are at the top of the curve, enjoying a booming market.

So when will the city reach the tipping point in this current cycle?

It could be a while. "If it's population and job growth (driving real estate), we could have a couple more years of the same type of market," said Crane, who pointed out that many of the big employers setting up shop here have yet to hire employees for their operations. Toyota may be up and running, but other projects, such as the planned National Security Agency (NSA) relocation, still have jobs to fill. "We have another year or two of jobs that have been created but haven't been filled. That can make for a pretty dynamic real estate market," Crane added.

Moving forward, one of the city's biggest challenges will be to find ways in which local government and the real estate industry can work together to encourage responsible growth. "We want to continue to encourage new companies to come to town; we want the city to grow and be profitable. And we want quality development," said Crane, who then posed this million-dollar question: "Are the city and the real estate industry working together to manage that growth?"

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