MARKET UPDATE
Checking In On The New Construction Pipeline
that are somewhere in the deby Jordan Brooks
Market Analyst | ALN Apartment Data , Inc .
Imarkets around the country , new supply has acted as something of a headwind in what has been a rough 2020 . As the end of the year draws nearer , now is a good time to check in on the current new construction pipeline for Greater San Antonio . All unit counts below will refer to conventional units for properties with more than 50 units . the units in the overall construction pipeline . ALN is tracking approximately 3,700 Lease-up units , and about 4,000 units in a Construction / Lease-up phase . The Stone Oak – Sonterra has the most new units entering the market , with more than 1,500 . The La Cantera - Dominion - The Rim submarket ’ s roughly 900 units are second most .
Units Entering the Market Under Construction
ALN uses two separate designations for properties coming online : Lease-up and Construction / Leaseup . The only difference being that some properties are still completing construction as they begin leasing , while others are completed and leasing . To be reassigned as stabilized , a property must reach 85 % occupancy or have been completed for 12 months , whichever comes first .
Properties in this category account for 25 % of
About 7,100 units are under construction but not yet leasing . These units represent 23 % of the overall pipeline for the Greater San Antonio area . This is down slightly from earlier in the year because a larger portion of the projects have now moved into a lease-up phase than have newly broken ground .
The Downtown – Riverwalk – King William region of the market leads the way in this category with just over 1,000 units under construction . Just behind is the Far West submarket with almost 900 units . The Northeast – Universal City – Live Oak area was the only other submarket to have more than 700 units in this category . In all , 18 of 25 ALN Greater San Antonio submarkets have at least one project currently under construction but not yet leasing .
Pre-Construction
Projects in this group are those