Economic Development

Introduction

The Brooks Area Regional Center had 13,400 jobs in 2016, anchored by health care, retail, and education. Nearly 36% of employment in the Brooks Area is in healthcare and social assistance, a much larger share than the 15% in the county overall. The next largest employment sector is retail trade, with close to 20% of area employment, followed by educational services with 14%, and 14% in accommodation and food services.

The Brooks Development Authority has been very successful at attracting large, net-new, single-user, greenfield development based on new employers to Brooks. This has helped to increase the diversity of employment opportunities and job types by providing more good paying jobs. New companies attracted to the area include Mission Solar, a solar panel manufacturing company, and Nissei, a plastics manufacturing company.

There has been minimal speculative industrial development in the Brooks Area in the recent past. However, efforts by Brooks Development Authority to attract larger manufacturers have been successful as Mission Solar, a solar panel manufacturer, opened in 2014, DPT Labs opened a research and development lab and pharmaceutical manufacturing plant in 2006, and Nissei Plastics, a plastics manufacturer, recently began operations on the Brooks campus. Development of Brooks Business Park is currently underway, with 350,000 square feet of industrial space planned in its first phase.

Commercial development in the Brooks Area Regional Center in the past decade has been primarily driven by retail expansion. The area is a major retail destination for the Southside, predominantly national chain stores located in large retail centers near the intersection of I-37 and Southeast Military Drive. However, the Brooks campus development is now starting to attract more locally-oriented and smaller retailers as well. Recently, the Brooks campus has also started to attract new office development, driven initially by demand for medical office space.

Economic Challenges to Address

Despite a number of strengths, the area does have some challenges that hamper its ability to attract business and develop economically. The area has a relatively small workforce shed (fewer people living in close proximity to the area) with more modest educational attainment compared to other employment centers in the city given its location on the southeastern edge of the city. The large employers in the area are an asset, but the area lacks a diversity of job opportunities and employers outside of major institutions (hospitals, schools) and retailers. Rental rates being achieved in the Brooks Area for office development are not high enough to support new development without incentives and financing tools, which makes attracting more office-oriented employers difficult and puts more pressure on attracting larger companies seeking build-to-suit space. Generally, industrial development is already supported by the market.

The area, however, has just begun its renaissance and growth into a major employment center in the city. As a new growth area, existing infrastructure and amenities needed to attract new businesses may not be present when certain opportunities arise. There are three main challenges in the Brooks Area Regional Center related to economic development:

  • Diversifying the employment base: The majority of workers work for the large, major employers in the area. Fostering more small business creation can help diversify the employment base, providing more opportunities for residents and creating a more stable Regional Center. This includes good paying jobs and low barrier to entry platform jobs to ensure residents of all education levels have access to proximate employment in the Regional Center.
  • Increase the appeal to live and work in the Brooks Area through housing, education, and amenities: Increase the desirability of living in the Brooks Area for employees and businesses of the area, compared to other major employment nodes. Continuing to attract diverse housing options can increase the size of the area workforce and bring in new residents. As well, improving education opportunities and options in the area for residents of all ages can help align the workforce with the jobs in the Brooks Area and also attract new residents.
  • Addressing gaps to development feasibility: The Brooks Development Authority has had to use multiple tools and incentives to attract employment to the area. Achieving rental rates that can support new office development is difficult. Continued use of strategic incentives and other tools is needed to generate sufficient market demand to support speculative development for targeted uses and employers.


Target/Opportunity Industries

Based on the analysis of existing conditions and the assessment of strengths and weaknesses, target industries and economic opportunities were identified for the Brooks Area. The target industries and economic opportunities are meant to help organize the city’s economic geography and provide guidance on the role the Brooks Area wants to play in the City’s overall efforts. They also give direction to the City and its economic partners as to what areas are best suited for certain opportunities when they arise. The target industries and economic opportunities for Brooks Area Regional Center are

  • Medical, Science, and Education Cluster - The redevelopment of the Brooks campus has successfully attracted a hospital and education uses. The area should continue to focus on attracting additional medical service providers and educational institutions and use these assets and the area’s legacy of innovation and research to spur economic activity.
  • Center for Advanced Manufacturing - Advanced manufacturing, in particular high-end light manufacturing and green technology is a target industry for the City of San Antonio. The Brooks campus is an attractive location for attracting additional light manufacturers. The recent success attracting Mission Solar and Nissei can help drive demand for additional manufacturers and the development of additional industrial space. The Brooks Area’s location near the oil and gas extraction activities in the Eagle Ford Shale region and Mission Solar within the Brooks campus makes it an appealing location for additional energy-related businesses.
  • Live, Work, Learn, Play, Stay Center - San Antonio currently lacks dense, walkable employment nodes that provide a live, work, play urban environment. The Brooks Area has the opportunity to become a model for other areas in the region by developing into a mixed-use center located outside the traditional downtown core. The proximity to the San Antonio River and San Antonio Missions National Historical Park and UNESCO World Heritage site provide an unmatched amenity that other areas do not have. The cultural heritage and natural resources of the Brooks Area need to be preserved, but can also be utilized to generate recreation opportunities and serve as amenities to attract new businesses and residents to the area.


Innovation

Innovation is a major theme of the guiding policy documents for the City of San Antonio including SA Tomorrow and Forefront SA. A goal for economic competitiveness in SA Tomorrow is to “create an economic environment that fosters business creation and innovation.” The Brooks Area Regional Center is a key location for business creation and innovation. The innovation economy is the connection of knowledge, technology, entrepreneurship, and innovation as a means to spur economic growth. To drive higher productivity and innovation, investments and policy interventions are needed to create partnerships between the public and private sectors.

In order to understand the economic strengths and weaknesses of the Brooks Area Regional Center as an environment that supports innovation, an innovation audit was completed to inventory and measure the attributes, which contribute to this culture. The Brooks Area innovation audit recommends focusing on attracting a greater diversity of residents, educational attainment, and jobs. The area currently has a lower-than-average proportion of residents and workers that have a bachelor’s degree compared to the city overall. Increasing the number of residents in the area, especially those with more education, will increase the attractiveness to employers.

The Brooks Area Regional Center strategy will be to continuously spur partnerships with current and new tenants by acting as the real estate option of choice for university and private sector partnerships seeking to commercialize research-based intellectual property.


Small Business and Amenities

In order to support service and amenity development that attracts both residents and small businesses to the area, an increased effort to organize and promote entrepreneurship activities in the area will be required. More formal events (e.g., monthly chamber/business community events) and informal programmed social activities or amenities (e.g., trails, plazas, and restaurants) brings together entrepreneurs, business owners, workers and residents more often and increases the opportunity for collaboration.


Recommendation #1:

Continue to invest in infrastructure and amenities that build the Live, Work, Learn, Play, Stay environment in the Brooks Area

Creating vibrant, mixed-use areas with the Brooks Area Regional Center will increase the opportunity for people to live and work in the area as well as the attractiveness to prospective employers/businesses. Increased mobility options and amenities that help increase activity and interaction between workers and residents will add to the vibrancy of the area, as will an increased diversity of retail and entertainment options.

Recommendation #2:

Diversify employers and job opportunities in the Brooks Area Regional Center.

The majority of employees in the Brooks Area Regional Center work for a few large, established businesses. Diversifying the type of employers and job opportunities in the area will involve attracting target industry companies of various sizes. Investing in a range of office space types and price ranges will also be critical to supporting the area’s job base and attracting a greater diversity of employers.

A more robust and successful network of small businesses and services in the area should also be fostered.There are opportunities for small businesses and neighborhood-serving commercial centers on Goliad Road, at McCreless Market, and along Southcross Boulevard.

Recommendation #3

Create an environment that fosters innovation and small business development by leveraging the health, science, and education networks present in the Brooks Area.

The Brooks Area Regional Center has attracted strong health, education, and science related anchors. Leveraging these assets through with educational partnerships, networking opportunities, and targeted job training initiatives will help generate new businesses and ideas and grow economic activity and opportunity in the Regional Center.