Behind the Scenes: Avnet's Build-to-Suit
Construction started on the 58k SF two-story Class-A Avnet Technology Solutions office building near the intersection of Loop 1604 and Hwy 281 in San Antonio. The company’s relocation and expansion is indicative of the solid economy and improved real estate market for office space, Ryan Cos SouthCentral region prez Hunter Barrier (far right at the groundbreaking) tells us. Market rents have increased to the point where a custom build-to-suit makes financial sense for companies. He’s expecting the build-to-suit market for both industrial and office buildings to increase in San Antonio during the next several years. Avnet’s project, on a five-acre site within the RidgeWood Business Park in northern San Antonio, is targeted for an August completion. (Groundbreaking ceremonies are a dry cleaner's best friend.)
Hunter tells us the declining availability of large blocks of space and market rent increases point to companies looking more seriously at build-to-suit projects. For office and industrial buildings today, there's not a premium for a company to develop and either lease or own a custom building, he says. Ryan Cos is providing the equity capital and Vectra Bank out of Denver is providing the construction loan. Ryan will provide development, architecture and engineering, construction, and capital market services for the project. Ryan is also partnering with three brokerage firms on this corporate build-to-suit project: Colliers International, Phoenix; Pruitt Realty, San Antonio; and Travis Commercial Real Estate Services, San Antonio.