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WHY SAN ANTONIO? DISCOVER THE ALAMO CITY DEEP-ROOTED TEXAS HISTORY. TRACK RECORD OF ECONOMIC GROWTH. Q220 From Managing Director, Gardner Peavy: WHEN PEOPLE ASK WHY SAN ANTONIO, MY IMMEDIATE ANSWER IS, WHY NOT? TABLE OF CONTENTS With over 2.4 million residents, the San Antonio metropolitan area continues to be one of the fastest- OUR EMPLOYMENT 04 OFFICE MARKET 10 growing metros in the nation. It is ranked the 25th largest metropolitan area in the United States and third in the state OUR ECONOMY 05 RETAIL MARKET 11 of Texas. The area is home to a mix of industries that create thousands of jobs that make up a local gross domestic OUR PEOPLE 06 LAND MARKET 12 product (GDP) of $116.6 billion. OUR DIVERSITY 07 INDUSTRIAL MARKET 13 GARDNER PEAVY The strength of the city’s economic structure is its diverse MANAGING DIRECTOR business culture, making San Antonio’s economic OUR QUALITY OF LIFE 08 OUR CITY OF SAN ANTONIO 14 performance in recent years among the strongest of the large cities in Texas. Military, tourism, logistics, healthcare, MULTIFAMILY MARKET 09 business, and tech industries are key factors in helping the Alamo City maintain one of the strongest job markets in the nation. San Antonio is known as one of the most economically stable cities in the nation, boasting one of the lowest unemployment rates in the U.S., while maintaining a vibrant yet affordable lifestyle and business environment. The Alamo City has become a gravitational region for growth and development after having weathered the recent Great Recession and energy price volatility better than the state overall. Thanks to all the factors above, and its attractiveness to expanding and diverse industries, including Fortune 500 companies, the region is quickly transforming into one of the best places in the U.S. to work and raise a family. The Urban Land Institute's 2020 Emerging Trends Report features San Antonio as a “Top 25 Market to Watch” highlighting that San Antonio seems to be poised to take advantage of a key technology need as the local campus of University of Texas is ranked second in cyber security education. Investor sentiment must also agree, with investors now seeming to be circling such opportunity, as 2018 and early 2019 transaction flows were just above $7.3 billion, in the same ballpark with Nashville. While we hope you find this piece informative, our main goal is to make you curious enough to ask and explore why San Antonio is truly an economic engine that will continue to flourish. And when you’re ready to ask that question, CBRE’s leading sales professionals are ready to offer their insights and expertise and partner with you for your success. WHY SAN ANTONIO? Q2 2020 OUR EMPLOYMENT OUR ECONOMY OVERALL EMPLOYMENT REMAINS HEALTHY HEALTHY ECONOMIC INDICATORS SHOW CONTINUING GROWTH FOR SAN ANTONIO LIFE SCIENCES & HEALTHCARE TECHNOLOGY FINANCIAL SERVICES SAN ANTONIO LABOR FORCE & UNEMPLOYMENT 1200 8 7 18,100 1000 JOBS ADDED ECONOMIC IMPACT OF OVER $40 RANKED #15 IN HIGH TECH GDP BY EMPLOYS OVER 60,500 PEOPLE THE MILKEN INSTITUTE 6 MARCH 2019-MARCH 2020 BILLION BETWEEN 2017-2018 HOME TO USAA, THE LARGEST 800 5 ONE OF EVERY SIX EMPLOYEES TEXAS-BASED FINANCIAL FIRM 234,300 WORK IN LIFE SCIENCES AND #2 CYBER-SECURITY HUB 600 4 JOBS ADDED HEALTHCARE IN THE NATION HOME TO BANK HEADQUARTERS SINCE MARCH 2010 INCLUDING FROST BANK, BROADWAY 3 400 SAN ANTONIO IS HOME TO 900+ DEPARTMENT OF BANK, JEFFERSON BANK, BANK OF SAN LABOR-DESIGNATED IT COMPANIES 2 THE DEPARTMENT OF DEFENSE’S ANTONIO, USAA, SWBC, LONESTAR 200 LARGEST MEDICAL CENTER CAPITAL BANK, SECURITY SERVICE FEDERAL 1 OVER 56,000 JOBS IN THE SCIENCE CREDIT UNION 13 RESEARCH ORGANIZATIONS AND TECHNOLOGY WORKFORCE 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2,295 RESEARCH PROJECTS 35,000 PROFESSIONALS IN IT TOTAL EMPLOYMENT (NON FARM) UNEMPLOYMENT RATE (NON FARM) OVER 80 COMPANIES SERVING THE Source: Bureau of Labor Statistics, April 2020 105,713 HEALTHCARE & TECHNICAL OCCUPATIONS SAN ANTONIO DEFENSE CLUSTER 13,680 HEALTHCARE JOBS WERE OVER A $10 BILLION INCREASINGLY DIVERSIFIED ECONOMIC IMPACT ADDED FROM 2014-2019 SAN ANTONIO ECONOMY Sources: San Antonio EDF, Sabio Science Sources: Milken Institute, San Antonio EDF, Cyber Texas Sources: Business In Texas, 2020 HOSPITALITY & TOURISM AEROSPACE & AVIATION MILITARY & DEFENSE 6% MINING, LOGGING AND CONSTRUCTION 5% MANUFACTURING 17% TRADE, TRANSPORTATION, AND UTILITIES 2% INFORMATION ECONOMIC IMPACT OF $15.2 BILLION 18+ AEROSPACE AND AVIATION MILITARY CITY USA 9% FINANCIAL ACTIVITIES COMPANIES IN THE SAN ANTONIO MSA 13% PROFESSIONAL AND BUSINESS SERVICES OVER 37 MILLION VISITORS PER YEAR HOME TO JOINT 16% EDUCATION AND HEALTH SERVICES OVER 13,000 EMPLOYEES WORK IN BASE SAN ANTONIO THE AEROSPACE/AVIATION INDUSTRY 13% LEISURE AND HOSPITALITY 23.1 MILLION OVERNIGHT VISITORS (JBSA) 4 LOCATIONS WITHIN JBSA 4% OTHER SERVICES IN THE METRO AREA BOEING OPERATES WITH ANNUAL CONTRIBUTION OF OVER 16% GOVERNMENT OVER 140,000 EMPLOYED 1.6 MILLION SQUARE FEET $30 BILLION TO THE TEXAS ECONOMY OF FACILITIES INCLUDING ONE OF THE INDIVIDUALS IN THE HOSPITALITY WORLD’S LARGEST FREE-STANDING HIGH Source: Bureau of Labor Statistics, May 2020. INDUSTRY OVER 187,000 EMPLOYEES BAY HANGERS CORPORATE HQs AND REGIONAL OFFICES 284 HOTELS IN SAN ANTONIO SAN ANTONIO IS HOME TO THE LOCKHEED MARTIN, LARGEST JOINT BASE IN THE US CHROMALLOY, STANDARDAERO HEB LOCKHEED MARTIN SECURITY SERVICE FEDERAL CREDIT UNION HOTEL EMMA IS ONE OF TWO HOTELS DEPARTMENT OF DEFENSE AND GDC TECHNICS’ PRESENCE WHATABURGER TEXAS BIOMEDICAL RESEARCH INSTITUTE HOLT CAT IN TEXAS TO RECEIVE THE AAA FIVE SUPPORT THE INDUSTRY'S GROWTH IN RACKSPACE UT HEALTH FROST BANK DIAMOND AWARD LACKLAND AIR FORCE BASE HOSTS THE VALERO SOUTHWEST RESEARCH INSTITUTE NSA SAN ANTONIO LARGEST AIR FORCE INTELLIGENCE USAA SWBC CST BRANDS HULU JEFFERSON BANK ACELITY PORT OF SAN ANTONIO PROVIDES A FORT SAM HOUSTON HAS THE SPURS ENTERTAINMENT ACCENTURE HARLAND CLARKE 1,900 ACRE HOME FOR THE INDUSTRY DEPARTMENT OF DEFENSE’S LARGEST IHEARTMEDIA, INC. RANDOLPH-BROOKS FEDERAL CREDIT UNION HARTE HANKS WITH A $4.2 BILLION DOLLAR HOSPITAL AND ONLY LEVEL-ONE GLOBALSCAPE, INC. PAPE-DAWSON ENGINEERS ZACHRY HOLDINGS ECONOMIC IMPACT FOR THE CITY TRAUMA CENTER IN THE COUNTRY NUSTAR ENERGY, LP RUSH ENTERPRISES, INC. ORACLE WELLMED XPEL TECHNOLOGIES CORP. NATIONWIDE INSURANCE NSA HAS ITS CSS TEXAS BROADWAY BANK CREDIT HUMAN KINETIC CONCEPTS BOEING BOOZ ALLEN HAMILTON CRYPTOLOGIC CENTER (TCC) LOCATED IN SAN ANTONIO Sources: San Antonio EDF Sources: San Antonio EDF Source: Controller Texas Gov. Source: CBRE Research, June 2020 CBRE | WHY SAN ANTONIO? 4 Q220 Q220 5 WHY SAN ANTONIO? | CBRE OUR PEOPLE OUR DIVERSITY COST OF LIVING INDEX AMONG THE NATION'S MAJOR METROS DEMOGRAPHICS 2.52M 14.3% 300 SAN ANTONIO-NEW BRAUNFELS OF SAN ANTONIANS ARE POPULATION FOREIGN BORN 250 56.1% HISPANIC 32.7% ANGLO 7.2% BLACK 2.6% ASIAN 2.4% OTHER 200 Source: CBRE Fast Report, Census Reporter 150 100 POPULATION TRENDS CITIES WITH THE LARGEST NUMERIC POPULATION GROWTH BETWEEN 2017-2018 50 25,288 0 20,824 U.S. DFW 19,552 AUSTIN DENVER EL PASO BOSTON RALEIGH PHOENIX CHICAGO HOUSTON NEW YORK NASHVILLE LOS ANGELES 15,354 SAN ANTONIO SAN FRANCISCO 13,151 12,504 12,153 Source: C2ER, May 2020. 11,549 11,053 10,884 10,770 10,759 9,888 9,016 8,884 SINGLE-FAMILY HOUSING MARKET MIAMI FRISCO AUSTIN SEATTLE DENVER PHOENIX MCKINNEY LAS VEGAS COLUMBUS CHARLOTTE SAN DIEGO HENDERSON FORT WORTH SAN ANTONIO JACKSONVILLE Source: US Census, 2019 SINGLE-FAMILY $277,256 HOME VALUES AVERAGE HOME INCREASED BY 3.2 MONTHS $32,968 SINCE 2017 HOUSING INVENTORY 3,013 SINGLE-FAMILY HOME SALES IN 2019 Source: San Antonio Board of Realtors, March Area Home Sales Report 2020 CBRE | WHY SAN ANTONIO? 6 Q220 Q220 7 WHY SAN ANTONIO? | CBRE OUR QUALITY OF LIFE MULTIFAMILY MARKET MULTIFAMILY MARKET EXPANDS RAPIDLY OVER 20-YEAR PERIOD PARKS & RECREATION SPORTS SCENE FOOD & DRINK HISTORICAL MULTIFAMILY GROWTH UNITS $1200 160,000 137K UNITS TOTAL INVENTORY 140,000 $1000 120,000 $800 100,000 $1,000 AVG EFFECTIVE RENT $600 80,000 60,000 $400 40,000 OVER 300 SUNNY DAYS PROFESSIONAL TEAMS HOME TO THE CULINARY $1,015 $200 A YEAR ON AVERAGE SAN ANTONIO SPURS INSTITUTE OF AMERICA 20,000 AVG ASKING RENT SAN ANTONIO RAMPAGE 1 OF ONLY 3 LOCATIONS $0 0 15,337 ACRES OF PARK LAND SAN ANTONIO FC IN THE NATION SAN ANTONIO MISSIONS OVER 150 MILES OF WALKING, ONE OF TWO CITIES IN THE ENTIRE 2001 Q1 2002 Q1 2003 Q1 2004 Q1 2005 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020 Q1 2020 Q2 35 PROJECTS UNDER CONSTRUCTION HIKING, AND BIKING TRAILS SPURS ARE FIVE-TIME NBA NATION TO RECEIVE THE CREATIVE AVG ASKING RENT TOTAL UNITS Source: CBRE Research Q2 2020, Axiometrics CHAMPIONS CITY OF GASTRONOMY BY UNESCO MULTIFAMILY PERMITS GROWTH 15 MILES OF THE RIVER WALK DESIGNATION COLLEGE TEAMS UNITS 8,000 93.30% HILL COUNTRY DESTINATION UTSA ROADRUNNERS THREE SAN ANTONIO CHEFS OCCUPANCY RATE INCARNATE WORLD CARDINALS NAMED JAMES BEARD AWARD 7,000 ST MARY'S RATTLERS SEMIFINALISTS FOR BEST CHEF: TRINITY TIGERS TEXAS 6,000 5,000 Source: San Antonio Gov. Parks and Recreation, Source: Visit San Antonio Sources: Visit San Antonio, JamesBeard.org 4,000 Visit San Antonio 3,000 EDUCATION ART, CULTURE, & ATTRACTIONS CONVENTIONS & EVENTS 2,000 1,000 0 2000 Q2 2001 Q2 2002 Q2 2003 Q2 2004 Q2 2005 Q2 2006 Q2 2007 Q2 2008 Q2 2009 Q2 2010 Q2 2011 Q2 2012 Q2 2013 Q2 2014 Q2 2015 Q2 2016 Q2 2017 Q2 2018 Q2 2019 Q2 Source: CBRE Research Q2 2020, Axiometrics 160,128 STUDENTS 65+ MUSEUMS, GALLERIES, AND 741,798 SQ.
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