San Antonio Industrial Loans: Warehouse & Manufacturing Financing [2026 Guide]

Why Is San Antonio Emerging as a Top Industrial Real Estate Market?

San Antonio's industrial real estate market is gaining serious momentum heading into 2026, driven by logistics expansion, manufacturing investment, nearshoring activity, and data center demand. The metro area now encompasses roughly 95 million square feet of industrial space, and its strategic location at the crossroads of Interstates 10, 35, and 37 makes it a natural hub for cross-border trade between the United States and Mexico.

The numbers tell a compelling story. San Antonio's industrial market posted 219,296 square feet of positive net absorption in Q3 2025, and 4.3 million square feet of new construction was completed year-to-date through that quarter. While the vacancy rate has risen to 11.5% as new deliveries outpace absorption in the short term, this rebalancing phase is creating favorable entry points for investors who can secure well-located assets with long-term upside.

For borrowers seeking financing on warehouses, distribution centers, manufacturing plants, or logistics facilities, San Antonio offers a combination of lower land costs than Austin or Dallas, proximity to Mexico's manufacturing corridor, and anchor tenants like Toyota and Boeing that signal institutional-grade demand. Whether you are acquiring a warehouse along the I-35 corridor, developing logistics space near Schertz and Cibolo, or refinancing a manufacturing facility at Port San Antonio, understanding how industrial loans work in this market is essential to locking in the best terms.

What Types of Industrial Properties Can You Finance in San Antonio?

San Antonio's industrial market spans a diverse range of property types, each with distinct financing considerations. Lenders evaluate these properties based on tenant quality, location, environmental factors, and revenue stability.

Warehouse and Distribution Centers are the most actively financed industrial property type in San Antonio. These facilities serve the logistics needs of retailers, e-commerce companies, and third-party logistics providers operating along the I-35 and I-10 corridors. The Core5 Logistics Center at Interstate 10, which debuted in early 2025, is a prime example of the modern Class A distribution space commanding strong tenant interest with 72 dock-high doors, 36-foot clear heights, and 84 trailer storage spaces.

Manufacturing Facilities range from automotive assembly operations to aerospace component production and food processing plants. Toyota Motor Manufacturing Texas, located on the South Side, employs over 3,700 workers assembling Tundra and Sequoia trucks, with an additional 5,600 employees working for on-site suppliers. Toyota recently announced a $531 million expansion including a new 500,000-square-foot drivetrain parts facility, underscoring the region's manufacturing strength.

Flex Industrial Space combines warehouse functionality with office or showroom areas. Port San Antonio is actively developing over 200,000 square feet of new flex and warehouse space across two industrial buildings at the intersection of 36th Street and Billy Mitchell Boulevard, targeting aerospace subcontractors, cybersecurity firms, and defense logistics operations.

Logistics and Cross-Dock Facilities are in growing demand as nearshoring accelerates. Averitt Express recently completed an 85,000-square-foot distribution and fulfillment warehouse with a cross-dock terminal in San Antonio to capitalize on the surge in U.S.-Mexico trade volumes flowing through the region.

Data Center and Tech-Adjacent Industrial Space represents an emerging category. Microsoft announced a $400 million data center investment in nearby Medina County, featuring a 195,670-square-foot facility. This type of development creates secondary demand for supporting warehouse and equipment storage space.

What Are Current San Antonio Industrial Loan Rates and Terms?

As of early 2026, San Antonio industrial loan rates reflect a stabilizing interest rate environment. The Federal Reserve held the federal funds rate at 3.50% to 3.75% at its January 2026 meeting, and the 10-year Treasury yield sits near 4.26%. These benchmarks directly influence commercial mortgage pricing for industrial properties across the San Antonio metro.

Conventional Commercial Mortgages for stabilized industrial properties in San Antonio start around 5.18% for the strongest borrowers with low-leverage deals. More typical rates fall in the 6.0% to 7.5% range depending on leverage, property quality, and tenant strength. San Antonio's lower cost basis compared to Austin or Dallas can result in stronger DSCR metrics at similar rent levels, which often translates to better loan terms.

Bridge Loans for value-add industrial acquisitions or properties in lease-up typically carry rates of 7.5% to 10.0%, with 12 to 36 month terms and interest-only payments. These are well suited for investors repositioning older warehouse stock or completing tenant improvements before securing permanent financing.

SBA 504 Loans offer owner-occupants rates as low as 5.5% to 6.5% with up to 90% financing and 25-year terms. San Antonio's manufacturing and logistics companies frequently use SBA programs to purchase their own facilities, particularly smaller operations supporting the Toyota or military supply chains.

Construction Loans for ground-up industrial development range from 7.0% to 9.0% with loan-to-cost ratios of 65% to 80%. With San Antonio's construction pipeline still active, lenders are requiring stronger pre-leasing commitments, with 49% of the current pipeline already pre-leased.

Lenders evaluating San Antonio industrial properties typically require a minimum DSCR of 1.25x, meaning the property's net operating income must be at least 125% of the annual debt service. Use our DSCR calculator to estimate your property's coverage ratio before applying.

How Does San Antonio's Position on the Mexico Trade Corridor Drive Industrial Demand?

San Antonio sits at the geographic heart of the most important trade corridor in North America. The I-35 corridor, already the nation's busiest inter-metro freight route, serves as the main artery connecting Mexican manufacturing centers in Monterrey and the Bajio region to distribution hubs across the central United States. This positioning has made San Antonio a direct beneficiary of the nearshoring wave that is reshaping global supply chains.

The impact is tangible and growing. Warehouses are filling up in Laredo, McAllen, El Paso, and San Antonio as companies shift production from Asia to Mexico and need distribution infrastructure on the U.S. side. San Antonio's location, roughly 150 miles north of the Laredo border crossing (the largest land port of entry in the Western Hemisphere by trade value), makes it an ideal location for cross-border distribution and fulfillment operations.

Toyota and Navistar established major manufacturing plants in San Antonio partly because of the proximity to their Mexican suppliers and customers. This cross-border integration creates a dense network of supporting industrial operations, from parts warehousing to finished goods distribution, that sustains tenant demand across the metro.

The I-35 NEX Program, a multi-phase highway expansion, along with the $1.4 billion widening of SH 46, are not just transportation projects. They are infrastructure catalysts that will unlock new industrial development sites in Schertz, Cibolo, and New Braunfels. For borrowers, properties along this corridor benefit from strong fundamentals that lenders find attractive: growing trade volumes, infrastructure investment, and a deep tenant pool tied to cross-border commerce.

Which San Antonio Industrial Submarkets Offer the Best Financing Opportunities?

San Antonio's industrial market is organized around several distinct corridors and redevelopment zones, each with characteristics that affect loan terms and lender appetite. Understanding these differences helps borrowers position their applications for the best possible terms.

I-35 North Corridor (Schertz, Cibolo, New Braunfels) has become the focal point for large-scale industrial and logistics investment. Hundreds of millions of dollars in new development are flowing into this submarket, anchored by projects like the 188-acre Frontera Logistics Supersite where Builders FirstSource acquired the first parcel and plans to construct a 93,000-square-foot manufacturing warehouse starting in early 2026. Lenders view this corridor favorably because of its access to both I-35 and the growing Austin-San Antonio megaregion.

I-10 East Corridor is attracting modern logistics facilities that serve regional distribution needs. The Core5 Logistics Center at Interstate 10 is a standout example, offering institutional-quality specs that appeal to national tenants. This submarket benefits from proximity to the eastern approach routes and connections to Houston's industrial market.

Port San Antonio is a 1,900-acre former military installation that now hosts more than 70 employers across aerospace, cybersecurity, manufacturing, defense, and global logistics. The campus encompasses approximately 10 million square feet of space and generates $5.6 billion in annual economic activity. Boeing operates over 1.6 million square feet here, including 940,000 square feet of hangar space. Cybersecurity firms including Lockheed Martin, CACI, Northrop Grumman, and Booz Allen Hamilton maintain secure operations on-site. Because Port San Antonio owns all its land and leases to tenants, financing here often involves leasehold structures rather than fee simple ownership.

Brooks (formerly Brooks City Base) is a 1,308-acre mixed-use redevelopment on the South Side that has attracted over $1.79 billion in completed development with an additional $328.6 million in the pipeline. Industrial tenants include Cuisine Solutions (a large-scale food manufacturing operation serving airlines and restaurants) and Nissei Plastics Industrial Co. Unlike Port San Antonio, Brooks sells land to developers, creating traditional fee simple ownership opportunities that are more straightforward to finance.

South Side / Toyota Corridor benefits from the massive economic anchor of Toyota Motor Manufacturing Texas. The plant's $531 million expansion and the 40,000+ jobs in its economic orbit create sustained demand for supporting warehouse, parts storage, and logistics space in the surrounding area.

What Do Lenders Look for When Underwriting San Antonio Industrial Loans?

Lenders evaluating San Antonio industrial properties focus on several key factors that determine loan approval, sizing, and pricing. Understanding these criteria helps borrowers prepare stronger applications and negotiate better terms.

Tenant Quality and Lease Structure is the most critical factor for investment properties. Lenders prefer long-term leases (5 years or more) with creditworthy tenants. A warehouse leased to a national logistics company on a 10-year NNN lease will receive significantly better terms than a multi-tenant flex building with month-to-month leases. San Antonio's major anchor tenants, such as Boeing, Toyota suppliers, and defense contractors at Port San Antonio, set the standard for the type of credit quality lenders seek.

Submarket Location and Corridor Access directly impacts loan pricing. Properties along the I-35 North corridor, near I-10 interchanges, or within established industrial parks receive more favorable underwriting than isolated locations. Lenders track submarket vacancy rates closely. While San Antonio's overall industrial vacancy stands at 11.5%, the manufacturing segment shows just 5.7% vacancy and flex space sits at 7.8%, both well below the metro average.

Cross-Border Trade Exposure is a factor lenders now consider in San Antonio, given the region's role as a nearshoring gateway. Properties with tenants tied to Mexico trade flows can be viewed positively (stable demand driven by structural economic shifts) or with caution (exposure to tariff policy changes). Borrowers should be prepared to discuss their tenant base's relationship to cross-border logistics.

Military and Government Tenant Considerations apply to properties near Port San Antonio, Joint Base San Antonio, and other defense installations. Government-backed tenants provide exceptional credit quality but may have unique lease structures, security requirements, or SCIF (Sensitive Compartmented Information Facility) buildout costs that affect underwriting.

Construction Pipeline Awareness is increasingly important as lenders monitor whether new supply will pressure rents and occupancy in specific submarkets. With 49% of San Antonio's current construction pipeline pre-leased, lenders are paying close attention to competing projects near any property under consideration.

How Can You Use a Bridge Loan for San Antonio Industrial Properties?

Bridge loans are among the most versatile financing tools for San Antonio industrial investors, particularly in the current market cycle where the rebalancing phase is creating opportunities to acquire well-located assets below replacement cost.

Value-Add Acquisitions represent the strongest use case for bridge financing in San Antonio's industrial market. With the vacancy rate at 11.5% and new deliveries continuing to outpace absorption, motivated sellers are offering concessions on older warehouse stock. Investors can acquire these properties at a discount, invest in upgrades such as increased clear heights, modern loading docks, LED lighting, and improved fire suppression systems, then re-lease the space at market rents before refinancing into permanent debt.

Lease-Up Situations are another prime application. Several newly delivered industrial buildings along the I-35 and I-10 corridors are still seeking tenants. A bridge loan provides the 12 to 36 months of runway needed to fill vacancy and demonstrate stabilized cash flow before converting to a permanent loan at better terms.

Acquisition Speed matters in competitive situations. Bridge lenders can close in 2 to 4 weeks compared to 60 to 90 days for conventional financing. When competing against other buyers for well-located industrial assets, particularly in the I-35 North submarket where institutional capital is increasingly active, faster execution can win the deal.

Nearshoring-Related Conversions are an emerging use case. As cross-border trade grows, some San Antonio investors are acquiring flex or light industrial properties and converting them to cross-dock or distribution configurations to serve Mexico-origin freight. Bridge financing provides the flexibility to execute these repositioning strategies.

Bridge loan rates in San Antonio's industrial market typically range from 7.5% to 10.0%, with loan-to-value ratios of 65% to 75% and interest-only payment structures. The key to success is a clear exit plan, either through refinancing into a permanent loan or selling the stabilized asset at a higher valuation.

What Is the Step-by-Step Process for Getting a San Antonio Industrial Loan?

Securing financing for a San Antonio industrial property involves several distinct phases. Working with an experienced commercial lender who understands the local market dynamics, including the cross-border trade component and military installation considerations, can streamline this process and help you avoid common delays.

The typical timeline from application to closing ranges from 45 to 90 days for conventional loans and 14 to 30 days for bridge loans. Construction loans may take 60 to 120 days due to additional documentation requirements including architectural plans, permits, and contractor vetting.

Throughout the process, having your financial documents organized and your property information readily available will accelerate the timeline. Work with your lender to identify potential issues early, such as leasehold vs. fee simple ownership structures at Port San Antonio, environmental conditions near former military sites, or tenant credit quality in cross-border logistics, so they can be addressed proactively rather than causing delays at closing.

How Do Port San Antonio and the Aerospace Sector Support Industrial Property Values?

Port San Antonio is one of the most significant economic engines in the region, and its presence directly supports property values and lender confidence for industrial assets across the metro. The 1,900-acre campus hosts more than 70 employers and nearly 16,000 workers, generating approximately $5.6 billion in annual economic activity.

Boeing is the anchor tenant, operating over 1.6 million square feet of facilities including 940,000 square feet of hangar space dedicated to aircraft maintenance, repair, and overhaul (MRO). StandardAero, Chromalloy, and Knight Aerospace also maintain significant operations on-site, creating a dense aerospace cluster that attracts supporting industrial tenants throughout the region.

The cybersecurity sector adds another dimension. San Antonio is recognized as one of America's leading cybersecurity hubs, with major firms including Lockheed Martin Cyber Solutions, CACI, Northrop Grumman, Booz Allen Hamilton, and Radiance Technologies operating secure facilities at Port San Antonio's Project Tech Building complex. This concentration of defense and security tenants provides the kind of government-backed credit quality that lenders prize.

For industrial property investors, the Port's economic gravity extends well beyond its campus boundaries. Subcontractors, parts suppliers, logistics providers, and technology companies supporting Port San Antonio tenants need warehouse and manufacturing space throughout the metro. Properties within a 20-minute drive of the Port benefit from this demand ecosystem, which translates into stronger appraisals, more competitive interest rates, and better loan terms.

Port San Antonio is also developing new space to accommodate growth, including two new industrial buildings totaling over 200,000 square feet for manufacturing, office, and logistics tenants. This ongoing investment signals that the campus will continue driving demand for decades to come.

What Tax Benefits and Incentives Are Available for San Antonio Industrial Properties?

Texas and the San Antonio region offer several significant advantages for industrial property investors that directly impact loan underwriting and investment returns.

No State Income Tax means investors keep more of their rental income and capital gains compared to states like California or New York. This advantage is factored into lender underwriting and supports higher property valuations and stronger debt coverage ratios.

Property Tax Abatements and Incentives are available through Bexar County, the City of San Antonio, and various reinvestment zones. The Brooks TIRZ (Tax Increment Reinvestment Zone) has been instrumental in driving $1.79 billion in development at the former Brooks City Base. Properties within designated reinvestment zones can benefit from tax increment financing that reduces the effective property tax burden during the initial years of ownership.

Military Installation Incentives provide additional support for industrial operations near Joint Base San Antonio and Port San Antonio. The Texas Military Preparedness Commission works to protect and grow military-related economic activity, and industrial properties serving defense supply chains may qualify for enhanced incentive packages.

Foreign Trade Zone Benefits allow industrial tenants to defer, reduce, or eliminate customs duties on imported goods. Given San Antonio's role as a cross-border trade hub, properties that can facilitate FTZ operations are particularly attractive to logistics companies and can command premium rents.

Cost Segregation Studies allow industrial property owners to accelerate depreciation on qualifying building components, reducing taxable income in the early years of ownership. This strategy is especially effective for warehouse and manufacturing properties with significant land improvements, specialized electrical systems, and loading dock equipment.

Opportunity Zones in certain San Antonio industrial areas, including portions of the South Side near Toyota and Brooks, provide additional tax benefits for investors who reinvest capital gains into qualifying properties.

What Are the Biggest Risks When Financing San Antonio Industrial Properties?

While San Antonio's industrial market offers compelling investment opportunities, borrowers should understand the risks that can impact financing outcomes.

Elevated Vacancy and Supply Absorption is the most pressing near-term concern. The vacancy rate has risen above the historical high of 10% to reach 11.5%, with warehouse and distribution space at 13.3% vacancy. Leasing velocity dropped 44.4% from Q2 to Q3 2025, falling to 1.0 million square feet. Lenders are monitoring these trends and may require lower leverage or additional reserves for properties in submarkets with heavy new supply.

Tariff and Trade Policy Risk is particularly relevant for San Antonio given the market's dependence on U.S.-Mexico trade flows. Changes in tariff policy, border enforcement, or trade agreements could affect the volume of goods moving through the I-35 corridor and the demand for cross-border logistics space. While the structural shift toward nearshoring provides a buffer, policy uncertainty is a factor lenders consider.

Military Base Realignment Risk affects properties whose value depends on proximity to Joint Base San Antonio or Port San Antonio. While the current outlook for these installations is positive, future BRAC (Base Realignment and Closure) rounds could impact employment levels and tenant demand in surrounding industrial areas.

Competition from Larger Texas Markets is an ongoing consideration. Houston, Dallas-Fort Worth, Austin, and San Antonio compete for the same logistics tenants and manufacturing investments. San Antonio's lower cost basis is an advantage, but it also means lower absolute rents, which can affect debt coverage on highly leveraged properties.

Environmental Considerations at Former Military Sites apply to properties near Port San Antonio, Brooks, and other former defense installations. Historical military operations may have left contamination that requires Phase I and Phase II environmental assessments, adding time and cost to the financing process.

What Are the Most Common Questions About San Antonio Industrial Loans?

What is the minimum loan amount for a San Antonio industrial property? Most commercial lenders have minimum loan amounts of $500,000 to $1 million for industrial properties. SBA loans can go as low as $250,000 for owner-occupied facilities. For larger institutional-quality assets along the I-35 corridor, many lenders prefer minimum loan amounts of $2 million to $5 million to justify the underwriting costs.

How does San Antonio's industrial vacancy rate affect my loan terms? The current 11.5% vacancy rate means lenders are more conservative than they were two years ago. Expect lenders to stress-test your property's cash flow against potential vacancy increases and to require reserves of 6 to 12 months of debt service. Properties with in-place tenants on long-term leases will receive meaningfully better terms than vacant or partially leased buildings.

Can I finance an industrial property at Port San Antonio? Yes, but the structure may differ from traditional financing. Port San Antonio owns all its land and leases to tenants, so financing typically involves a leasehold mortgage rather than fee simple ownership. Lenders will evaluate the ground lease terms, including length, renewal options, and rent escalations. Brooks, by contrast, sells land to developers, allowing for conventional fee simple financing.

Do I need an environmental assessment for a San Antonio industrial property? Yes. All lenders require at minimum a Phase I Environmental Site Assessment for industrial properties. Properties near former military installations like Port San Antonio or Brooks may need additional investigation. Budget $2,000 to $5,000 for Phase I and $10,000 to $50,000 for Phase II depending on the scope and site history.

What DSCR do lenders require for San Antonio industrial loans? Most lenders require a minimum DSCR of 1.20x to 1.30x for stabilized industrial properties. Properties with strong tenants on long-term leases may qualify at the lower end. Given the current vacancy environment, some lenders are requiring 1.30x or higher for multi-tenant industrial buildings. Use our commercial mortgage calculator to estimate your monthly payments and coverage ratio.

Are nearshoring-related tenants viewed favorably by lenders? Generally, yes. Lenders recognize that the shift of manufacturing from Asia to Mexico is a structural, long-term trend that benefits San Antonio's industrial market. However, they will evaluate the specific tenant's credit quality, lease terms, and exposure to trade policy changes. A well-capitalized logistics company with a 7-year NNN lease is far more attractive than a startup cross-border freight broker on a 2-year lease.

Are You Ready to Finance Your San Antonio Industrial Property?

San Antonio's industrial market sits at a strategic inflection point. The nearshoring boom is accelerating demand along the I-35 trade corridor, Toyota's $531 million expansion is strengthening the manufacturing base, and Port San Antonio's aerospace and cybersecurity cluster continues to attract defense-grade tenants. While the current rebalancing phase has pushed vacancy above historical averages, this environment is creating acquisition opportunities for borrowers who can identify well-located assets with strong long-term fundamentals.

Whether you are acquiring a warehouse near the I-35 North corridor, developing logistics space in Schertz or Cibolo, refinancing a manufacturing facility at Brooks, or securing bridge financing to reposition older industrial stock, the right financing structure can turn a good investment into an exceptional one.

Our team specializes in San Antonio industrial property financing, from bridge loans for value-add acquisitions to permanent financing for stabilized assets. We understand the local submarkets, the cross-border trade dynamics, and the unique underwriting considerations that come with this market.

Contact us today to discuss your San Antonio industrial financing needs and get a customized loan quote for your property.