3 min read December 2023 — The supply chain disruption and the workforce shortages are still the main challenges the San Antonio real estate industry is facing, according to Stephanie Reyes, CEO for the Real Estate Council of San Antonio (RECSA). She sat down with Invest: to discuss the city’s housing market, larger growth and sustainable development.
What is your view of the housing market and the challenges it faces?
The industry is dealing with high interest rates, inflation and a low level of inventory in the market. People are staying in their homes. They are locked in at really low interest rates and don’t want to refinance right now. But on the upside, that creates demand for new construction, and I understand that’s picking. We meet with the city of San Antonio monthly to get briefed on permit requests, which demonstrates trends in the market for commercial, residential, industrial, etc. Permitting was on the decline but now we’re seeing that activity picking back up, which is great news.
How is your organization working to promote sustainable development in San Antonio?
RECSA’s mission is to support policies that promote responsible and sustainable development, so anytime we can leverage our technical expertise to engage in those policy discussions, we welcome a seat at the table. Doing so makes San Antonio more competitive in the economic development arena and helps support a thriving, sustainable city, which is good for everyone. There are numerous examples of how we promote sustainable development, primarily by working closely with our agency partners, the city, and the county to review, update and/or introduce sustainable design standards and codes on everything from streets to buildings to landscapes.
Keeping affordability in mind is key. RECSA and its members provide essential knowledge and expertise so that policymakers can make well-informed decisions and, in turn, foster greater affordability.
How is your organization participating in the growth of San Antonio?
RECSA provides our 300-plus member organizations and 1,200-plus industry professionals with vision, leadership, and resources to succeed in our industry. San Antonio should see continued growth in the near-term, as the value proposition has become attractive for both individuals and companies. The commercial real estate market is driving San Antonio’s economy. Its impact has never been greater. $38.2 billion in economic activity, employs more than 143,000 people and generates $263 million in local tax revenue.
RECSA is the industry’s biggest advocate. We keep our finger on the pulse, keeping up with local, state, and federal policies and regulations that will have an impact on our industry. We’re in the trenches, at the table talking about those issues. We are focused on streamlining the development process. If we’re going to be transforming this community, we need to eliminate barriers by collaborating with the city, the county, and our agency partners, and work towards sustainable and responsible development. That can only be done if there is an organization like RECSA that can get everyone to the table to have those conversations.
What are some of the most active areas in San Antonio for real estate investment?
There is a great deal of potential all across San Antonio. We have members who are doing transformational work in areas like South San Antonio and in the city’s urban core. San Antonio is growing exponentially. RECSA is working closely with the city, the county, and our agency partners to ensure growth and development is done responsibly, RECSA is at the forefront of making sure that our developers have all the resources they need to do that.
What are the developers looking to you for?
Right now, we are facing some pretty big challenges, many of the same challenges we have been facing over the last couple of years, including supply chain disruptions and labor shortages. RECSA has been funding scholarships and endowments to the local colleges and business schools to help create a strong pipeline of labor. In terms of supplies and materials, we are seeing delays up to 14 months on some of the commercial transformers and utility poles. We have been working with CPS Energy for over a year to address this issue. We meet regularly to discuss innovative solutions and ensure CPS Energy remains transparent about stock and how it’s being prioritized. For example, we successfully worked with CPS to develop a dashboard where everyone can see their position in the queue. Additionally, we receive regular updates on supply delays. That is just one example of the type of resources we provide our members.
Which business sectors are leading the development of San Antonio?
Developers are doing transformational work in creating communities all across San Antonio. There are some great examples of projects that include a mix of housing, retail, parks and trails. They are creating communities where people can live, work and play.
What are the most pressing needs for infrastructure in San Antonio?
Water and sewer infrastructure is critically important to development, especially in a city growing as fast as San Antonio. But it isn’t the first thing that comes to mind when you think about infrastructure needs. That is because you don’t see it the way you do roads and power lines. But the reality is, water and sewer infrastructure attract economic development. That is why RECSA works closely with SAWS, the city, and the San Antonio River Authority to ensure there is a safe and abundant water supply.
And of course, transportation infrastructure will always be a priority. Transportation and land use patterns are inextricably linked. Transportation facilities and networks have the power to shape development, influence property values, and improve neighborhoods. Integrated transportation and land use planning gives people more choices for getting around the city, and that makes San Antonio more attractive. That is why RECSA works closely with the city on land-use regulation and code. In fact, we worked closely with the city last year to update its unified development code, an exercise done every five years. We were engaged in the process from the very beginning, reviewing every proposed amendment, meeting with city staff and stakeholders to discuss the impacts, and helping to garner support from city officials.
What is next on the agenda for RECSA?
I am so excited about everything that RECSA has already been doing in 2023 already. We rebranded in 2023, relocated to a new headquarters, expanded staff, and launched a new website. There is a great deal of change in the industry, so it is important that RECSA adjust and adapt with it. We are working on fostering the next generation of
commercial real estate developers and industry professionals and we continue to do that through our leadership development program. Our goal is to build a pipeline of industry leaders that can contribute their technical expertise to help shape policy. Over the past 31 years, the Real Estate Council has become one of San Antonio’s most respected and influential business organizations. That did not happen by accident. It happened because our members have consistently stepped up as volunteers and leaders, year after year.
We are also focused on leveraging our technical expertise to give back. This year, we launched the Community Project Program. Through this program, RECSA members will roll up their sleeves and volunteer their time, skills and expertise to revitalize the outdoor spaces of the SAMMinistries’ Transitional Living and Learning Center. The project will increase the usability of the existing spaces and encourage year-round outdoor play and family bonding activities. This will be an annual program where we help a new nonprofit every year. We are looking forward to our first Build Day in October.
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