San Antonio added nearly 24,000 residents between July 2023 and July 2024—the fourth fastest-growing city in America.^1,2 The nation's seventh-largest city (1.53 million) is on track to surpass Philadelphia within the next few years, with a metro area of 2.8 million.^3,7

The growth is strategic, not random. Over 59% of the metro's 205,000 new residents since 2020 came from other states, drawn by affordability and opportunity.[4] The region's economy has surged past $190 billion—up 60% in a decade—while maintaining a cost of living 8-9% below the national average.^5,6

Economic diversity drives stability. Major employers like Joint Base San Antonio, H-E-B, USAA, and a growing tech sector anchor the market. At 3.7%, unemployment runs below state and national averages.⁸ Manufacturing, construction, and logistics sectors continue adding jobs—creating the exact conditions that drive IOS demand.

San Antonio's I-35 position is its superpower. The nearshoring wave from Mexico is already here—industrial inventory hit 88.9 million square feet with median rents at $7.53/SF annually.⁹ Union Pacific's 32,000-mile rail network provides direct access to U.S., Canadian, and Mexican markets without gateway city congestion.¹⁰ Vacancy rates for IOS facilities are a bit hard to track, but the industrial market in the area is hovering just below 9% as of Q4 2024.

Industrial outdoor storage serves critical needs that traditional warehouse space can't: equipment storage, vehicle parking, and materials staging. While the broader industrial market gets attention, IOS remains relatively underexplored.

Recent IOS lease transactions initiated between Q4 2023 and 2025 average approximately $4,700 per month per acre. The median price per acre of IOS sales during that same time period was approximately $750,000.

Lease rates have increased by roughly 10% year over year, reflecting sustained tenant demand. Of the leases reviewed, the median site size is about three acres, typically single-tenant occupied. Roughly one-quarter of leases reviewed were with nationally recognized, blue-chip operators, while the balance comprises regional and local service providers across the construction, logistics, and energy infrastructure sectors.

Northeast (I-35 corridor): Most active for IOS demand / sales, driven by proximity to distribution and manufacturing. Northwest (Loop 1604): Emerging growth area as interchange improvements progress. South (I-35 south): More affordable entry points with solid trade route access.

“Northeast San Antonio seems to have the most tenant activity with the growth in the San Antonio/Austin I-35 corridor being the driver. This holds true on the sale side as buyers seem more comfortable with the North / Northeast submarkets and are willing to pay a tighter cap rate for similar credit tenants. IOS has still shown to have lower vacancy and more activity than traditional industrial.” - Reid Halverson, Newmark

Demand drivers mirror regional strengths: construction companies need staging areas; logistics operators require trailer/container parking; military contractors need vehicle storage; energy sector (Eagle Ford, Permian Basin proximity) demands oilfield equipment space; food distributors serving H-E-B need trailer staging. There is good representation from stable, credit-worthy tenants across the market. 

Facilities offering concrete or asphalt paving, security fencing, 24/7 access, and utilities command premium rates and often attract good credit tenancy. Class A caliber properties are particularly sought after by investors in the San Antonio market.

647 N WW White Rd Infill IOS Redevelopment 16.8 Acres (I-2 Heavy Industrial zoning) | For Lease

Partners Real Estate, together with the landlord Outpost (https://outpost.us/), is in the process of demolishing over 230,000 SF of improvements to repurpose a 16.8-acre former steel plant in San Antonio, TX. Above is a high-level conceptual rendering of what’s possible for IOS build-to-suits. The property is zoned I-2 (Heavy Industrial) with close proximity to Interstate 10 East, Hwy 35, Loop 410, and Loop 1604.

Please note that the above conceptual plan is for illustrative purposes only and remains subject to change.

Please reach out to Stan Nowak, Andrew Alizzi, Eric Sheaffer, and Colten Courtney for more information.

101 Rancho Grande – Floresville, TX | For Sale

A ±14.40-acre IOS property located one mile north of US Highway 181 in Floresville, offering easy access to San Antonio’s southern industrial corridor. The site includes a ±3,500 SF warehouse with two drive-through bays, a fenced and stabilized yard, and sits outside city limits, providing flexible use potential. Built in 2013, the property is well-suited for contractors, equipment storage, or service operations needing large yard space with on-site improvements.

Please reach out to Stan Nowak, Andrew Alizzi, Eric Sheaffer, and Colten Courtney for more information.

10130 Jones Maltsberger Rd – San Antonio, TX | For Lease

A ±60,709 SF facility on 4.7 acres located adjacent to San Antonio International Airport within the North Central submarket. The property includes a 51,341 SF main building (with showroom and office space) plus 9,368 SF of detached buildings and approximately 2.5 acres of outdoor storage. Features include five dock-high doors, two ramped doors, 22’–25’ clear heights, a sprinkler system, and strong connectivity to US-281 and Loop 410. Ideal for logistics, distribution, or light manufacturing users seeking proximity to major thoroughfares.

Please reach out to Lee Jordan for more information.

Zarzamora Business Park – San Antonio, TX

Located at the signalized intersection of Kelly Parkway and Zarzamora Blvd along Highway 16, Zarzamora Business Park offers up to 117 acres of fully developed industrial land, divisible to suit. Utilities are in place (SAWS water and sewer, CPS electric), and the site is zoned I-1, allowing for Industrial Outdoor Storage (IOS) uses. With 25,100 vehicles per day, direct access to Loop 410, I-35, and US-281, and proximity to major manufacturers like JCB, Toyota, and Navistar, the park is ideal for suppliers, logistics operators, and industrial users seeking scalable land positions with excellent visibility and infrastructure.

Reach out to Brennan Foley for more information.

Big thanks to all the brokers who helped shape this week’s Market Monday in San Antonio. If you’re looking to buy, sell or lease in SATX, the people below are the ones to call!

Reid Halverson, Managing Director
E: [email protected] P: 972-715-4371

Lee Jordan, SIOR
E: [email protected] P: 210-507-2710

1: U.S. Census Bureau. (2025). San Antonio population growth data. Retrieved from Texas Public Radio, "U.S. Census: San Antonio may soon surpass Philadelphia as nation's 6th largest city" (May 20, 2025)

2: San Antonio Current. (2025). "San Antonio ranks as nation's fourth fastest-growing city, new Census numbers show" (July 22, 2025)

3: Axios San Antonio. (2025). "Census Bureau: San Antonio still a top city for population growth" (May 16, 2025)

4: Axios San Antonio. (2025). "Census: San Antonio population boom driven by out-of-state movers" (March 13, 2025)

5: Axios San Antonio. (2025). "San Antonio economy surpasses $190B" (August 13, 2025)

6: Crexi. (2024). "San Antonio Commercial Real Estate Market Report 2025"

7: Texas Public Radio. (2025). U.S. Census data showing San Antonio at 1,526,656 population, trailing Philadelphia by 47,000 residents. "U.S. Census: San Antonio may soon surpass Philadelphia"

8: Federal Reserve Bank of Dallas. (2025). "San Antonio Economic Indicators"

9: Crexi. (2024). San Antonio industrial market inventory and rent data. "San Antonio Commercial Real Estate Market Report 2025"

10: Prologis. (2025). "San Antonio Industrial Logistics and Warehouses" (May 7, 2025)

11: World Population Review. (2025). "San Antonio, Texas Population 2025" - Demographic data including median age.

Start with our guide: What is Industrial Outdoor Storage?