Experts Concerned About I-10/1604 Submarket, But Not Much Else
San Antonio's submarkets are getting more distinct as the city grows and evolves. Conversation now centers around areas like South Town and The Rim, but industry experts gathered at the St. Anthony Hotel Downtown had a lot to say about the I-10/1604 Corridor...and it wasn't all good.
The I-10/1604 submarket is the only area that concerns NRP Group VP Mark Jensen. The area already has tons of multifamily units available with many more delivering soon. ARA Newmark managing director Matt Michelson says supply in the I-10 submarket is outpacing demand by 40% to 50%.
Pictured: RPITX's Trebes Sasser Sr., USAA Real Estate Co's Barrett King, Matt Michelson and Cypressbrook's David Meaden
Embrey Partners EVP Robert Hunt (above, middle) doesn’t see any concern in the long term. But in the near term, places like The Grand Dominion and other areas in the far Northwest are oversupplied. Robert thinks it will work itself out in the next 18 to 24 months.
While concessions may hang around for a bit (they've stretched past six weeks of free rent), Lynd Development president Daniel Zunker thinks the market should stabilize by the end of the year thanks to capital markets tightening new supply.