Jennifer S. Cowley - Texas A&M UniversityJennifer S. Cowley Assistant Research Scientist Mukta Naik...

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Transcript of Jennifer S. Cowley - Texas A&M UniversityJennifer S. Cowley Assistant Research Scientist Mukta Naik...

Jennifer S. CowleyAssistant Research Scientist

Mukta NaikGraduate Research Assistant

Texas A&M University

June 2001

© 2001, Real Estate Center. All rights reserved.

Real Estate Market Overview

Brownsville-Harlingen-San Benito

Real Estate Market Overview

Brownsville-Harlingen-San Benito

Real Estate Market Overview

Brownsville-Harlingen-San Benito

Population

Employment

Job Market

Major IndustriesBusiness Climate

Education

Transportation and Infrastructure Issues

Urban Growth Patterns

Map 1. Growth Areas, BrownsvilleMap 2. Growth Areas, Harlingen

Public FacilitiesHousing

Multifamily

Manufactured Housing

Retail Market

Map 3. Commercial Building Permits, Harlingen

Office Market

Industrial Market

Conclusion

Contents

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Real Estate Market Overview

Brownsville-Harlingen-San Benito

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Brownsville

Port Isabel

Harlingen

San Benito

Rancho Viejo

Rangerville

Rio Hondo

Bayview

Los Fresnos

South Padre Island

US 77

SH 100

SH 48

US 281

Jennifer S. CowleyAssistant Research Scientist

Mukta NaikGraduate Research Assistant

Real Estate Market Overview

Brownsville-Harlingen-San BenitoReal Estate Market Overview

Brownsville-Harlingen-San Benito

CountyCameron

The Brownsville-Harlingen-SanBenito Metropolitan StatisticalArea (MSA) is at the southern-

most tip of Texas. The MSA is bordered

by Mexico to the south, the McAllenMSA to the west and the Gulf ofMexico to the east. Corpus Christi liesabout 150 miles to the north. Accord-

ing to the Census Bureau, the MSA wasthe 28th fastest growing in the countryand fifth fastest growing in the state be-tween 1990 and 2000.

Area Cities and TownsBrownsville

CombesHarlingenLa Feria

La PalomaRancho Viejo

Rio HondoSan BenitoSanta MariaSanta Rosa

South Padre Island

Land Area of Brownsville MSA954 square miles

Population Density (2000)351 people per square mile

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Kelly Air Force Base, San AntonioPOPULATION

Brownsville MSA Population

Year Population

1990 261,6931991 269,1661992 277,1661993 287,9501994 296,9481995 304,4591996 311,5221997 317,7191998 324,0461999 329,1312000 335,227

Source: U.S. Census Bureau

Area Cities With 10,000 or More Residents

Growth 1990–2000City 2000 Population (in percent)

Brownsville 139,722 21.4Harlingen 57,564 20.4San Benito 23,444 12.2

Between 1990 and 2000, theBrownsville MSA’s populationhad a growth rate of more than

2.6 percent per year. In Brownsville,the MSA’s fastest growing city, the ma-jority of growth has been and is ex-

pected to continue to be in the north-ern portion of the city.

The Brownsville-Harlingen area’spopulation is growing at a rate signifi-cantly faster than the state as a whole.That trend is expected to continue with

Source: U.S. Census Bureau

the MSA’s population predicted togrow 3 percent per year through 2020,according to the Texas State Data Cen-ter. The Texas Water DevelopmentBoard predicts 2.1 percent growth peryear between 2000 and 2020.

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Source: U.S. Census Bureau

Projected Population Growth, 2000–2020(in percent)

Texas Metropolitan Area Population Change, 1990–2000 (in percent)

McAllen-Edinburg-Mission 48.5 Galveston-Texas City 15.1

Austin-San Marcos 48.2 Tyler 15.5

Laredo 44.9 El Paso 14.9

Dallas 31.5 Corpus Christi 14.3

Brownsville-Harlingen-San Benito 28.9 Victoria 13.1

Brazoria County 26.1 Waco 12.9

Houston 25.8 Texarkana 9.4

Fort Worth-Arlington 25.1 Lubbock 9.0

Bryan-College Station 25.1 Wichita Falls 7.8

Texas 22.8 Longview-Marshall 7.7

Killeen-Temple 22.6 Beaumont-Port Arthur 6.6

San Antonio 20.2 Abilene 5.8

Sherman-Denison 16.4 San Angelo 5.6

Amarillo 16.2 Odessa-Midland 5.1

Source: Texas State Data Center

Brownsville MSAProjected Population

Texas State Texas WaterYear Data Center Development Board

2005 400,364 —

2010 450,485 405,463

2015 494,547 —

2020 540,240 476,992

Sources: Texas State Data Center and Texas Water Development Board

126.0 40.20

20

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60

80

Brownsville-Harlingen-San Benito MSA Texas

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Household Composition

Brownsville MSA Texas

Median household size (1990) 3.57 2.73

Population younger than 18(1999, in percent) 35.3 28.5

Population 65 and older(1999, in percent) 11.3 10.1

Source: U.S. Census Bureau

Ethnic Distribution(in percent)

Brownsville MSA TexasEthnicity 1990 2000 1990 2000

Hispanic 81.7 84.3 25.3 32.0

White 17.6 14.5 60.8 52.4

Black 0.3 0.3 11.7 11.3

Asian 0.2 0.5 0.3 0.3

American Indian 0.0 0.1 1.8 0.3

Other 0.2 0.0 0.1 0.1

Two or more races* — 0.3 — 1.1

* For the 2000 Census, the Census Bureau changed the “race” options, allowing people toreport their race as “other” or as two or more races.

Source: U.S. Census Bureau

The population of the BrownsvilleMSA is made up of a larger per-centage of young people than in

other areas in Texas. The MSA’s aver-age household size is larger than thestate average.

Cameron County’s location alongthe border with Mexico in part ac-counts for the large Hispanic popula-tion in the MSA. The MSA’s Hispanicpopulation is the fastest growing ethnicgroup, as it is in Texas as a whole. His-

panics are expected to make up 38percent of the Texas population by theyear 2025. The per capita income forthe MSA was $14,280 in 1999. Thestate average was $26,834, according tothe U.S. Bureau of Economic Analysis.

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Brownsville-Harlingen-San Benito MSA Unemployment Rate(in percent)

Source: U.S. Bureau of Labor Statistics

Source: U.S. Bureau of Labor Statistics

EMPLOYMENT

Brownsville-Harlingen-San Benito MSA Employment

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101214161820

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Brownsville Harlingen

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Bergstrom Air Force Base, AustinTop Ten Employers Top Ten Private Employers

Brownsville

Brownsville Independent School DistrictPublic education6,400 employees

University of Texas – BrownsvilleEducation1,646 employees

Cameron CountyLocal government1,450 employees

H-E-B Food StoresRetail grocery1,102 employees

Convergys Corp.Call center954 employees

Brownsville Medical CenterHealth care925 employees

City of BrownsvilleLocal government900 employees

Valley Regional Medical CenterHealth care728 employees

AMFELSManufacturing652 employees

Levi StraussClothing manufacturing630 employees

Source: Brownsville Economic Development Council

H-E-B Food StoresRetail grocery1,102 employees

Convergys Corp.Call center954 employees

Brownsville Medical CenterHealth care925 employees

Valley Regional Medical CenterHealth care728 employees

AMFELSManufacturing652 employees

Levi StraussClothing manufacturing630 employees

Trico TechnologiesManufacturing548 employees

Wal-MartRetail538 employees

Horace Small ApparelClothing manufacturing493 employees

Allison ManufacturingManufacturing403 employees

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Bergstrom Air Force Base, AustinTop Ten Employers Top Ten Private Employers

Harlingen

Valley Baptist Medical CenterHealth care2,321 employees

Harlingen Consolidated Independent School DistrictSchool district2,286 employees

Fruit of the LoomClothing manufacturing1,029 employees

City of HarlingenLocal government554 employees

Wal-Mart SuperstoreRetail487 employees

Texas State Technical CollegeHigher education450 employees

H-E-B Food StoresGrocery407 employees

Rio Grande State CenterMental health370 employees

Southwestern Bell TelephoneTelephone287 employees

Q.C. OnicsElectrical assembly280 employees

Source: Harlingen Chamber of Commerce, first quarter 2001

Valley Baptist Medical CenterHealth care2,321 employees

Fruit of the LoomClothing manufacturing1,029 employees

Wal-Mart SuperstoreRetail487 employees

H-E-B Food StoresGrocery407 employees

Southwestern Bell TelephoneTelephone287 employees

Q.C. OnicsElectrical assembly280 employees

Su Clinica FamiliarHealth care260 employees

Acetylene Oxygen CompanyMiscellaneous gases205 employees

Sweezy ConstructionConstruction203 employees

Tex SteelSteel doors and frames179 employees

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Texas Metropolitan Area Employment Change, 1990–2000(in percent)

Austin-San Marcos 58.8 El Paso 15.4

Laredo 40.3 Waco 14.3

McAllen-Edinburg-Mission 35.8 Lubbock 14.0

Dallas 30.4 Sherman-Denison 12.5

Brownsville-Harlingen-San Benito 30.1 Longview-Marshall 12.2

Bryan-College Station 29.2 Abilene 11.4

Killeen-Temple 28.7 San Angelo 10.7

San Antonio 28.6 Corpus Christi 10.3

Fort Worth-Arlington 23.7 Galveston-Texas City 8.2

Texas 23.3 Wichita Falls 7.8

Tyler 22.9 Odessa-Midland 6.5

Victoria 22.4 Texarkana 4.5

Houston 22.1 Beaumont-Port Arthur 3.5

Amarillo 18.6 Brazoria County 2.3

Source: U.S. Bureau of Labor Statistics, February 2001

The unemployment rate in theBrownsville-Harlingen-SanBenito MSA has historically

been much higher than the state aver-age because of high immigrationgrowth rates. However, unemploy-

ment in the MSA was at relatively lowlevels in 2000, dropping by 1.1 per-centage points from 1999 to 8.7 per-cent in 2000, according to the TexasWorkforce Commission. During 2000,nonagricultural employment reached

109,200, according to the TexasWorkforce Commission. The U.S. Bu-reau of Labor Statistics reported civil-ian employment to be 118,189 in2000.

Employment Growth by Industry Brownsville MSA Texas

Employment growth, 2000 (in percent) 5.2 3.2Unemployment rate (in percent) 8.7 4.3New jobs in 2000 5,400 288,900Employment growth by sector, 2000 (in percent)

Services 8.2 4.7Trade 4.3 3.1Manufacturing –0.8 0.1Mining n/a 2.3Finance, insurance and real estate 2.6 1.3Construction 13.5 6.2Government 4.2 1.7Transportation, communications and public utilities 5.8 5.1

Sources: Texas Workforce Commission

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JOB MARKET

In Brownsville, Nardi Italia, an Italianfirm that makes wooden steeringwheels, is joining forces with Valley

Trucking Inc. and will hire 350 people.Operations began in February 2000.Tella Tool and Manufacturing openedin fall 2000 and employs 75. Neoplan,a bus manufacturer, will employ 600people when it opens in 2001. Thefirm makes components for the aero-space, telecommunications, automo-tive and medical industries.

Titan International tire companyopened in 2000 employing 370, thenlaid off 29 employees in July 2000. In-dustrial Fab opened a pipe fabricationplant employing 100. New ProcessSteel opened employing 50. VFImagewear opened a distribution facil-ity in Brownsville in 2000. The com-pany employs 50.

Scientific Molding Corporationplans to open a plastic injection mold-ing operation in Brownsville in Febru-ary 2002. Uniexcel Chemical Solu-tions plans to build a manufacturingplant at the Port of Brownsville in2001. The facility will result in 300jobs by 2004.

Trico expanded in 2000, creating anadditional 100 jobs. FlexiMat, which

makes mattresses for pets, will be em-ploying 40 additional people. DexterAdhesive and Coating Systems, auto-motive suppliers, will hire ten moreworkers, and Mervis metal recyclerswill hire eight additional employees.

The developer of the expanded Sun-rise Mall and Sunrise Commons ex-pects the retail facilities to create 620new jobs. T&C Stamping expanded,adding 30 employees. Excel Plasticsexpanded, adding 40 employees.Loera Customs Brokerage expanded,adding 45 employees in Brownsville.

In Harlingen, Sol Communications isexpected to bring 100 new jobs. FoxValley Molding Inc., a supplier to auto-motive maquiladoras (manufacturingplants) in Mexico, will hire 25 andbuild a 15,000-square-foot manufac-turing plant. Tennyson Group is acomputer firm that will hire 20 em-ployees, ten in each of the firm’s firsttwo years of operation. Valley BaptistHospital added a pediatric center em-ploying 40 in February 2001.

In Harlingen, Valley Race Park re-opened in 2000. The racetrack hired23 full-time and 23 part-time employ-ees for its simulcast-betting and dog-racing seasons. City commissioners

have agreed to provide the park with$150,000 in incentives. The park hadbeen closed since 1995.

A pipe fabrication company, Indus-trial Fab, is opening and will employ100 people.

Advanced Call Center Technologiesopened in Harlingen in June 2000, em-ploying 300. Tadim is expanding, add-ing 60 employees. RMH Teleservicesopened a call center in 2000 employ-ing 500.

In San Benito, Penske Logisticsadded 200 jobs in 2000. South TexasShrimpers opened in May 2000, em-ploying 200.

During 1999, two gambling boatsbegan operating in the MSA. CasinoDel Mar, a 420-foot vessel, employed140 but has since set sail for a more lu-crative location. A smaller ship, Ca-sino Padre, can carry as many as 320passengers and plans to remain in op-eration. A Schlitterbahn waterparkopened in May 2001 on South PadreIsland.

Builder’s Square and Lozano AutoParts went out of business in Browns-ville. South Texas Hospital is closingits inpatient clinic in Harlingen, cut-ting employment for 70 people.

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BUSINESS CLIMATE

Tax Rates, 2000

Tax Rate Tax Rate Tax RateTaxing per $100 Taxing per $100 Taxing per $100Entity Valuation Entity Valuation Entity Valuation

City of Brownsville $0.69 City of Harlingen $0.54 City of San Benito $0.67

School District 1.47 School District 1.55 School District 1.47

College 0.13 College 0.13 College 0.13

Cameron County 0.35 Cameron County 0.35 Cameron County 0.35

Total $2.64 Total $2.57 Total $2.62

Source: Cameron County Appraisal District

MAJOR INDUSTRIES

The major employment sectors inthe Brownsville-Harlingen-SanBenito MSA are services, which

accounts for 27 percent of theeconomy; government, which ac-counts for 24 percent; and trade, 24percent. The services sector has a largemedical services component. The ser-vices sector grew by 8.2 percent, add-ing 2,600 jobs, while the trade sectorgrew by 4.3 percent, adding 1,100jobs in 2000. The construction sectorposted strong job growth, adding 500jobs during 2000.

The government sector is large, pri-marily because of border patrol andcustoms offices jobs. Manufacturingaccounts for 12 percent of employ-

ment and consists of electronics, ap-parel, metal fabrication and food pro-cessing. This sector lost 100 jobs in2000, according to data from the TexasWorkforce Commission.

Maquiladoras are important to thearea’s employment levels and trade.Matamoros, the Mexican city acrossthe river from Brownsville, announcedthe addition of five new maquiladoraplants in its industrial park. The newplants will create 6,000 additionaljobs.

Agricultural receipts for 2000 totaled$170 million for Cameron County, ac-cording to the Texas Agricultural Ex-tension Service. In 2001, receipts are

expected to rise to $179.5 million.Nursery products (18.6 percent), cot-ton (14.4 percent) and sorghum (6.9percent) were the area’s primary crops.Aquaculture and fishing accounted for42.8 percent of receipts.

The Rio Grande Valley has been suf-fering effects from the drought. InBrownsville, rainfall was 3.57 inchesbelow average in 1999. In the LagunaAtascosa Wildlife Refuge, rainfall wasalmost ten inches below normal. Sugarproduction in the valley is predicted tofall from 45,000 acres to only 27,000acres because of the dry conditions. In1999, the Port of Harlingen shipped46,545 tons of sugar and molasses.

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Brownsville-Harlingen-San Benito MSA Retail Sales

Year Total Sales Sales per Capita

1990 $1,557,169,328 $5,9501991 1,672,729,723 6,2141992 1,793,970,186 6,4731993 1,946,553,004 6,7601994 2,079,423,067 7,0031995 1,928,108,028 6,3321996 2,018,725,307 6,4801997 2,139,324,827 6,7331998 2,270,390,442 7,0061999 2,439,175,471 7,4112000 2,653,452,245 7,915

State Average 2000 $12,612

Source: Texas Comptroller’s Office

Exports to Selected Destinations (in thousands)

Market 1997 1998 1999 Percent of Trade

Canada $467,753 $361,801 $397,733 15.5

Mexico 2,166,284 1,939,380 2,050,861 79.8

Carribean and Central America 14,318 18,183 39,686 1.5

South America 6,570 4,425 4,485 0.2

Europe 23,962 70,418 53,670 2.1

Asia 14,318 22,970 22,044 0.9

Africa 2,552 2,166 1,800 0.1

Near East 724 886 332 0.0

Australia 656 1,032 835 0.0

All Countries $2,697,106 $2,421,261 $2,571,435 100.0

Source: Office of Trade and Economic Analysis, International Trade Administration

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Brownsville-Harlingen-San Benito MSA Top Exports, 1999 (in thousands)

Product Export Value Percent

Electric and electronic equipment $731,676 28.5

Chemical products 337,208 13.1

Transportation equipment 250,332 9.7

Non-manufactured commodities 234,150 9.1

Refined petroleum products 184,681 7.2

Industrial machinery and computers 159,545 6.2

Textile and Apparel 141,776 5.5

Fabricated metal products 134,181 5.2

Primary metals 95,041 3.7

Rubber and plastic products 88,647 3.4

Source: Office of Trade and Economic Analysis, International Trade Administration

Exports were up 35 percent be-tween 1993 and 1999. Since theNorth American Free Trade

Agreement (NAFTA) was put in placein January 1994, exports to Canadaand Mexico have increased 1,018 per-cent and 12 percent, respectively.Mexico is the country to whichBrownsville exports the most products.Exports to Germany were up the mostduring the 1993 to 1999 period, rising1,189 percent from $937,000 to $12million. Between 1998 and 1999 totalexports rose 6.2 percent.

The Brownsville MSA’s retail salesper capita have been increasing since1995. Shoppers crossing the borderfrom Mexico boost sales in the area.The sales tax rate in Brownsville,Harlingen and San Benito is 8.25 per-cent. The hotel-motel tax rate is 13 per-cent in Brownsville and Harlingen and10 percent in San Benito.

Cameron County is one of four RioGrande Valley counties to qualify fortax breaks authorized by the legislaturebeginning in 2001. The counties areclassified as Strategic Investment Areasbecause of high unemployment andlow per capita income. Tax credits forresearch expenses, job creation and in-vestment expenditures will benefitsmall and large firms that qualify.

The Greater Brownsville IncentiveCorporation uses the city’s economicdevelopment half-cent sales tax tofund industrial, commercial, manufac-turing, distribution and wholesaleprojects. The money is dispersedthrough job creation credits, building-lease assistance, relocation credits andan interest rebate program. TheBrownsville Local Development Com-pany supports small business ownersapplying for loans from the Small Busi-ness Administration’s 504 Loan Pro-gram.

The City of Harlingen is currentlyupdating its comprehensive develop-ment plan. Firms locating in theHarlingen Industrial District canqualify for ad valorem tax abatementsand other financial incentives. The cityoffers a free development guide to any-one interested in building in Harlingen.Prospective developers may also setup an appointment to speak to repre-sentatives of major city departments,including planning, waterworks, pub-lic works, engineering and building in-spection.

The Brownsville-Harlingen MSA ishome to many “winter Texans,” a termused to describe people from colderclimates who live in the valley during

winter because of its mild climate.Harlingen is said to be the top destina-tion for winter Texans who visit for atleast 30 days. The area boasts an aver-age year-round temperature of 74 de-grees. The Rio Grande Valley WinterVisitor Survey found that the medianannual income of winter Texans hasincreased to $41,500. They stay in thearea for an average 3.5 months andspend an average $5,300 per house-hold. During the 1998–1999 season,124,000 winter Texans added $329million to the valley’s economy. Springbreak is also a big tourist time for theMSA, when as many as 125,000 visitSouth Padre Island and Mexico.

The Rio Grande Valley WhiteWings, a professional minor leaguebaseball team, have been based inHarlingen since 1996. City of Harlingenofficials are discussing constructing afield for the team.

Bird watching is a $100 million in-dustry in the Valley. The World BirdingCenter is to be completed by 2002,with satellite branches to be located inHarlingen and Brownsville. The RioGrande Valley Birding Festival drawsthousands of visitors to the area eachyear. Hunting and fishing are both $1billion industries.

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EDUCATION

Local College and University Enrollment

Fall 2005 2010School 2000 (estimated) (estimated)

University of Texas at Brownsville* 9,075 3,649 4,060Texas Southmost College* N/A 7,923 8,741Texas State Technical College - Harlingen 3,266 3,439 3,871

*The University of Texas at Brownsville and Texas Southmost College have a joint relationship and are located on thesame campus. The fall enrollment figure represents combined enrollment.

Sources: Educational institutions and the Texas Higher Education Coordinating Board, January 2001

The University of Texas atBrownsville (UTB) and TexasSouthmost College (TSC) share

the same facilities and faculty. TSC of-fers freshman and sophomore levelcourses, while UT Brownsville offersupper-level and graduate courses. TSChas begun construction on an new stu-dent union building.

Texas State Technical College atHarlingen has begun new programsleading to associate’s degrees in medi-cal assistance and telecommunica-tions. It has just completed the semi-conductor manufacturing technologybuilding that will house courses in sat-ellite communication and semicon-ductor technology.

Educational Level, Persons Age 25 and Older(in percent)

Level of Education, 1990 Brownsville MSA Texas

High school graduate 19.7 25.6

Some college, no degree 14.4 21.1

Associate’s degree 3.9 5.2

Bachelor’s degree 8.0 13.9

Graduate or professional degree 3.9 6.5

Source: U.S. Census Bureau, 1990

The Regional Academic Health Cen-ter, a teaching hospital for 48 third-and fourth-year medical students, willbe located in Harlingen and overseenby the University of Texas Health Sci-ence Center in San Antonio. The $25million facility is scheduled to be op-erational in 2002.

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TRANSPORTATION AND INFRASTRUCTURE ISSUES

Airline Boardings

1998 1999 2000

Brownsville-South Padre Island International Airport 74,066 71,296 67,869Valley International Airport (Harlingen) 466,728 469,214 468,358

Sources: Brownsville-South Padre International and Valley International Airports

Port Activity

1998 1999 2000

Port of BrownsvilleTotal calls 229 204 223Total tonnage (millions) 3.25 2.90 3.18

1997–98 1998–99 1999–2000

Port of HarlingenTotal tonnage (millions) 0.93 1.0 1.03

Sources: Brownsville and Harlingen Port Authorities

Border Crossings

1998 1999 2000

Rail Crossings Northbound 12,134 15,354 11,125 Southbound 32,717 31,780 33,868 Total 44,851 47,134 44,993

Vehicle Crossings Northbound 6,215,573 5,858,711 6,492,658 Southbound 6,951,202 6,159,143 6,912,341 Total 13,166,775 12,017,859 13,404,999

Truck Crossings Northbound 121,255 265,462 299,238 Southbound 290,746 237,189 218,226 Total 412,001 465,146 517,464

Source: Texas Center for Border Economic and Enterprise Development

Cameron County accommodatesa large amount of internationalshipping. U.S. Highways 77,

83 and 281 run through the MSA. Ex-pressway 77/83 is being expanded tosix lanes. State Highways 4, 48, 100,

107 and 345 are also located in theMSA.

In Harlingen, the relatively newLoop 509 provides a direct route fromthe eastern side of the city, includingthe Harlingen Industrial Parks and

Harlingen Airplex, to U.S. 77 and theFree Trade Bridge. In Brownsville, aproposed loop on the east side of thecity would connect the Gateway Inter-national Bridge to Expressway 77/83.

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URBAN GROWTH PATTERNS

Signs have been unveiled for thenew I-69 that will connect the lowerRio Grande Valley with the rest of theinterstate highway system. The high-way will split near the border to serveboth McAllen and Brownsville. Nodate for construction has been set. TheTexas Department of Transportation isplanning a $5.2 million inspection sta-tion in Brownsville.

The Free Trade Bridge at Los Indiosis the largest, most modern port whereas many as 75 trucks can be inspectedat one time. The new Veterans Interna-tional Bridge at Los Tomates inBrownsville opened in April 1999.Cameron County is currently doublingthe number of exit lanes to speed in-spection and improve traffic flow.

Harlingen and San Benito havelaunched a transit system for seniorsand the disabled. Vans provide trans-portation for $3 a ride.

The Brownsville-South Padre IslandInternational Airport is undergoingrenovations costing $4 million. Theproject will add a second boarding

gate and passenger facilities. Phasetwo was completed in spring 2001;phase three should be completed insummer 2001. The expansion will al-low another airline to service the airport.

Currently, Continental Airlines is theonly passenger carrier. General avia-tion services are provided by Hunt PanAm, Southmost Aviation andBrownsville Air Center. SouthwindAviation, Inc. is a flight school operat-ing out of the airport. Emery World-wide and Burlington Air Express pro-vide daily cargo service to the airport.

The Valley International Airport inHarlingen is serviced by AmericanEagle, Continental Express and South-west Airlines. Airline boardings weredown slightly in 2000.

Southern Pacific Railroad and UnionPacific Railroad have switching yardsin Harlingen. Southern Pacific Rail-road also serves the Harlingen Indus-trial Parks and Port of Harlingen.

The Rio Grande Valley receives itswater from the Rio Grande River, viathe Falcon and Amistad reservoirs. The

Brownsville Weir and Reservoir is inthe process of obtaining a final permitfor the $37 million project. A weir issimilar to a dam, but it contains de-vices that allow water to continueflowing downstream, while at thesame time raising the water level of theriver.

The Brownsville Public UtilitiesBoard (PUB) is scheduled to receive $2million this year from the Environmen-tal Protection Agency toward construc-tion of the weir and reservoir project.The allocation to PUB falls $8 millionshort of its request, however.

San Benito is known as “ResacaCity” for the 400-foot-wide dry creekbed that used to run through the city.The creek bed is now a major irrigationcanal. An $8.4 million state grant willprovide some 33,750 colonia residentsin the valley with water and wastewa-ter systems by the year 2002. SanBenito residents will benefit from thisproject.

Map 1 shows the growth pat-terns in Brownsville. Retailconstruction has been most

prevalent near Sunrise Mall. Hotelsand restaurants are being built alongU.S. Highways 77 and 83. Boca ChicaBoulevard is also experiencing retailgrowth. Residential development hasbeen occurring in every direction buthas been most prominent in the north,especially at Paseo de la Resaca alongFM 802.

Map 2 shows the growth patterns inHarlingen. According to Harlingen’splanning director, the southwest por-tion of the city is the primary site ofresidential growth. Several recre-ational vehicle parks catering to winterTexans are located on the west side ofthe city along Hwy. 83 toward LaFeria. Tropic Winds, a large, new mo-bile home-RV park, is located north ofLoop 499. Apartment growth has pri-

marily been small units located nearthe hospital.

In Harlingen, medical office growthhas been occurring near the hospital.Some small strip office buildings havebeen built throughout the city. Retailgrowth has been infilling throughoutthe city. Industrial growth is locatedprimarily along the north of the Loop509 corridor southeast of the airport.

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Map 1. Growth Areas

Source: Real Estate Center at Texas A&M University

Brownsville, TexasCensus PlaceWater AreaHighway

US 281

US 77

SH 48

SH 4

FM 802

Industrial

Retail

Retail

Retail

Retail

Retail

Multifamily

ResidentialResidential

Industrial

Office

Map 2. Growth Areas

Source: Real Estate Center at Texas A&M University

Harlingen, TexasCensus PlaceHighway

US 83US 77

SH 448

US 83

SH 374

SH 499

US 77SH 107

FM 801

Office

Retail

Retail/Office

Retail

Industrial

Apartments

Industrial

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PUBLIC FACILITIES

The Cameron County Sheriff’s De-partment will build a facility inthe new law enforcement com-

plex near Olmito that will include thecounty jail. Officials and privategroups are discussing redevelopmentof historic downtown buildings.

The MSA has been investing in itspublic park systems. The City ofBrownsville is renovating Dean PorterPark. A Children’s Museum will be in-cluded in the $7.5 million renovation,which should be completed in 2002.Construction has begun on the $1.5million Lincoln Park in southeastCameron County. St. Charles Park willbe built near downtown. The 17-court

Brownsville Tennis Center will be builtalong the new hike-and-bike trail.

The city is planning to build a 900-seat civic center and a recreationsports center for $4 million. InHarlingen, a $600,000 arroyo hike-and-bike trail was completed duringsummer 2000.

A $6.5 million natatorium is beingplanned on the north side of FM 802 atSeville Boulevard near the epicenter ofBrownsville’s construction boom, the1,000-acre Paseo de la Resaca devel-opment. Two of the three new elemen-tary schools being built are located inthe same area. The three elementaryschools, which are projected to cost

$16.8 million, are scheduled to openin fall 2001.

In 1999, the U.S. Fish and WildlifeService granted approval for the La-guna Atascosa National Wildlife Ref-uge to expand. The refuge can acquireup to 108,127 acres in Cameron andWillacy counties to add to its current45,187 acres.

The La Feria municipal complexadded 8,110 square feet of office spaceto the existing 4,902 square feet in thecomplex. The project was financed by$850,000 from grants and the city. Thenew building includes portions of cityhall, the police department and newfire department offices.

HOUSING

Housing Affordability – Fourth Quarter 2000

Percent ofHouseholds THAI for

That Can Afford First-timeMedian-priced Home THAI* Homebuyers

Brownsville 47 0.92 0.73Harlingen 63 1.43 1.07

*The THAI is the ratio of median household income to the income required to buy the median-priced home using currently available mortgagefinancing. Standard financing is a 30-year loan covering 80 percent of the cost of the home. A THAI of 1.00 indicates that the median householdincome is just enough to qualify for a loan sufficient to purchase the median-priced home.

Source: Real Estate Center at Texas A&M University

18

Average Sales Price of Single-family Home,Brownsville-Harlingen-San Benito Area

*Data unavailable for all years Source: Real Estate Center at Texas A&M University

Brownsville-Harlingen-San Benito MSA Single-family Building Permits

Source: U.S. Census Bureau

0

500

1,000

1,500

2,000

2,500

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

Brownsville Harlingen

19

Single-family Home Sales Volume, 2000

*Data not available for all monthsSource: Real Estate Center at Texas A&M University

0

10

20

30

40

50

60

70

Jan

uar

y

Feb

ruar

y

Mar

ch

Ap

ril

May

Jun

e

July

Au

gu

st

Sep

tem

ber

Oct

ob

er

No

vem

ber

Dec

emb

er

Brownsville Harlingen

Price Distribution of MLS Homes Sold in Brownsville, 2000(in percent)

Source: Real Estate Center at Texas A&M University

Price Range Harlingen Brownsville

$29,999 or less 4.3 7.230,000–39,999 7.1 7.740,000–49,999 6.8 7.750,000–59,999 7.9 12.660,000–69,999 11.1 11.770,000–79,999 10.0 6.680,000–89,999 9.3 12.690,000–99,999 7.1 6.6100,000–119,999 8.9 7.4120,000–139,999 6.8 5.5140,000–159,999 3.9 4.0160,000–179,999 3.9 2.6180,000–199,999 2.9 1.7200,000–249,999 3.9 2.8250,000–299,999 1.8 1.3300,000 and more 3.5 1.9

20

In 2000, 2,706 single-family homepermits were issued in the metro-politan area; 2,017 permits were is-

sued in 1999. The average value of anew home was $66,300 in 2000 and$68,300 in 1999. In the first quarter of2001, 558 new homes were permitted.

During 2000, 530 homes were re-ported sold through the BrownsvilleMultiple Listing Service (MLS) at an av-erage price of $89,900. There was anine-month inventory of homes forsale in 2000, down from 10.5 monthsin 1999. Approximately 60 percent ofMLS-listed homes in Brownsville soldfor between $30,000 and $89,999.

In Harlingen, 280 homes were re-ported sold through the Harlingen MLSin 2000 at an average price of$106,800. Home sales were down 8.5

percent in 2000. There was a 26.5-month inventory of homes for sale in2000. Approximately 56 percent ofMLS-listed homes in Harlingen sold forbetween $30,000 and $89,999.

The Texas Water DevelopmentBoard adopted rules that will requiresubdivision developers to install sew-age and water systems on their lots orto post bonds for the work. Cities andcounties must enforce these rules to beeligible for grants and loans from theEconomically Distressed Areas(colonias) Program. A Harlingen devel-oper believes that these rules will in-crease the cost of lots by $5,500 each,or $60 million collectively, over thenext ten years.

Hudson Farms’ Paseo de la Resaca islocated in Brownsville near Paredes

Line Road and FM 802. The master-planned community is expected togrow to 4,000 homes by 2012. Reportsshow that this residential developmentis four years ahead of schedule. TheCommunity Development Corp. ofBrownsville will build 375 homes inthe same area by 2002.

In San Benito, a 100-lot subdivisionis planned on Yost Road. A 300-lotsubdivision is in the planning stage aswell.

On South Padre Island, Bay Harbor,a 24-lot townhome project, was ap-proved in 2000. Phase two is plannedwith an additional 11 lots. Most of thesingle-family construction on the is-land is occurring on individuallyowned lots.

Final Plats Harlingen, 2000

Name of Subdivision Number of Lots Created

Los Alamos Estates Unit No 2 147Vista Verde 145Caoley Estates Phase III 133Summerfield Estates 56Las Colinas of Treasure Hill Phase I&II 55Treasure Hills Country Club Blk 3,4,5 54Town and Country Estates 50Stuart Oaks 50Summerfield Estate Unit No. 4 38The Oaks 38

Outside City LimitsLazy Palms Phase II & III 285Lazy Palms Phase 1B 106Vista Del Sol No. 3 103Villa Las Palmas Phase II 76Aloe Vera Section 1 46La Glofia Canal Phase II 40

Source: City of Harlingen

21

MULTIFAMILY

Brownsville-Harlingen-San Benito MSA Multifamily Building Permits(in units)

Source: U.S. Census Bureau

Brownsville-Harlingen-San Benito Apartment Statistics,December 2000

Brownsville Texas MetroMSA Average

Average rent per square foot $0.55 $0.75Average rent for units built since 1990 $0.67 $0.96Average occupancy (in percent) 95.0 95.7Average occupancy for units built since 1990 (in percent) 96.3 95.4

Source: Apartment MarketData Research

The apartment occupancy rate forthe area fell 1 percent from 1999to 2000. For units built since

1990, occupancy rates increased from89.9 to 95.2 percent. Rent per squarefoot rose one cent during 1999. In2000, 163 multifamily units were per-mitted, up from 160 in 1999. In the firstquarter of 2001, 26 multifamily unitswere permitted.

In Brownsville, Rancho del CieloPhase II, a 180-unit complex, is underconstruction in the northwest part ofthe city. Phase I has approximately 140units and was completed in 1999. LaMansion is a 168-unit apartment com-plex planned for FM 802 as part of thePaseo de la Resaca development.

In Harlingen, apartment develop-ment has primarily consisted of smaller

projects, such as fourplexes, dispersedthroughout the city. A 144-unit com-plex costing $6 million, the RiataApartments, is being planned on HaineDrive. Oak Terrace, a 64-unit apart-ment complex, is under constructionon South Loop 499. Sundance Apart-ments started construction in 2000.The 176-unit complex is located onVermont Street. An 18-unit complex is

0

200

400

600

800

1,000

1,20019

80

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

22

MANUFACTURED HOUSING

Brownsville MSA Manufactured Home Sales

The number of manufacturedhomes sold in the BrownsvilleMSA declined in 2000. About

60 manufactured homes were soldthrough third quarter 2000, represent-ing approximately 14 percent of newsingle-family housing.

Manufactured homes are popularbecause of their improving image andaffordability. For an average price of$37,500, an individual can purchase ahome averaging 1,380 square feet, ex-

under construction on Hale Avenue.Several small complexes are underconstruction in the 800 block of North26th and 27th streets.

On South Padre Island, a large apart-ment complex is under construction

on Gulf Boulevard. Two condominiumprojects are under construction andtwo more are planned. Las Zentanasand Las Arenas are 11-story condo-

minium towers. Lighthouse condo-miniums will include two 11-storytowers. Las Dunas is another plannedhigh-rise tower.

Proportion of NewManufactured Single-family HomesHomes Sold (in percent)

1997 315 16.41998 403 17.31999 380 17.72000* 223 14.0

*Through third quarter 2000Source: Texas Manufactured Housing Association

cluding the cost of land, according tothe Manufactured Housing Institute.The median income of manufacturedhome owners nationally is $24,500.

23

Hotel Occupancy and Rental Rates, 2000

Brownsville/ South PadreHarlingen Island Texas

Occupancy rate (in percent) 67.2 63.7 67.2Average daily rental rate $57.01 $105.63 $86.75

*Through November 2000Source: PKF Consulting

RETAIL MARKET

Retail Market – Rio Grande Valley

1999

DowntownAverage rent $4.70Occupancy (in percent) 60.0

Neighborhood Service CenterAverage rent $13.20Occupancy (in percent) 90.0

Community Power CenterAverage rent $17.40Occupancy (in percent) 90.0

Regional MallsAverage rent $10.40Occupancy (in percent) 95.0

Source: NAI 2001 Real Estate Planning Guide

Map 3 shows locations of retailbuilding permits in Harlingen.In Brownsville, an extended-

stay Hawthorne Suites opened in May2000, creating 30 jobs. Another ex-tended-stay hotel, a $10 million, 102-room Residence Inn by Marriottopened in 2000 at 2975 North Ex-pressway. The hotel is one of two com-pleted along the highway. A 74-roomHoliday Inn Express hotel was com-pleted just south of Ruben Torres Bou-levard and U.S. Hwy 83/77 intersec-tion in March 2001. The city’shotel-motel tax is already exceeding$1 million per year without the addi-tion of the newer hotel rooms.

Motel 6 is under construction atnorth Expressway 77 and Tyler Streetin Harlingen. Country Inn and Suitesopened in early 2001 at Expressway77/83 and New Hampshire. A numberof hotels in Harlingen have been un-dergoing remodeling.

On South Padre Island, several ho-tels are under construction. TravelLodge, Microtel and The Flamingo areunder construction on Padre Boule-vard. A Red Roof Inn is planned for2001. Howard Johnson opened in 2000.

The expansion of Sunrise Mall, lo-cated at Expressway 77/83 and FM802, Brownsville’s largest retail expan-

sion project, opened in July 2000. Theproject added one million square feetto the mall, as well as 300,000 squarefeet in nearby Sunrise Commons, apower center.

A 24,000-square-foot Staples in theSunrise Commons was completed insummer 2000, creating 40 jobs. A 16-screen movie theatre,Big Kmart, anIHOP, Johnny Carino’s, Chili’s andBlack-Eyed Pea restaurants are newSunrise Commons tenants. Otherstores opening in the new space in-clude Foley’s, Gap and Old Navy.Dillard’s will move into the new mallfrom Amigoland Mall. Wallbangers

24

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Map 3. Commercial Building Permits, 2000

Source: Harlingen Building Permit Office

Harlingen, TexasCensus PlaceHighway

� CommercialUS 83US 77

SH 448

FM 801US 83

SH 374

SH 499

US 77SH 107

and Tony Roma’s opened restaurantsalong the Expressway. A new sportsbar will be constructed in the area.

Wal-Mart built a Supercenter west ofExpressway 77/83, just south of TejonRoad in Brownsville. The new storeopened in March 2001, and the storeon Boca Chica Boulevard closed. Pre-liminary plans call for a Sam’s Whole-sale Club to be built on the site as well.The Builders Square on Boca ChicaBoulevard has closed. A Best Buy isplanned at Expressway 77/93. Anamusement park is planned on ParedesLine Road. A new credit union openedin Brownsville. The project cost$650,000.

Fast food chains are planned alongHighway 48 near FM 802 in Browns-ville. A Chick-Fil-A has opened inBrownsville, and there is a new H-E-Bgrocery on Paredes Line Road. EyearOptical opened a store on Boca ChicaBoulevard, hiring six employees. Tex-Mart opened a store on Boca Chicaand plans another for FM 511 and Ex-pressway 77/83. Circle K opened inearly 2000 at Old Port Isabel and East

Price roads. Downtown, a Dollar Gen-eral opened on East Elizabeth Streetalong with El Mago, a low-priced gen-eral merchandise store.

The City of Brownsville renovatedthe former Brownsville Country Clubgolf course. The $5.2 million projectwas completed in June 2000.

The Jackson Street District, home tomany antique shops, is in downtownHarlingen. A New York Deli openedon Jackson Street.

A Home Depot opened in Harlingenon Expressway 77/83, creating 127jobs. Boggus Ford has a new dealer-ship under construction on Express-way 83 at F Street. Rio Storage com-pleted a self-storage facility on EastPort Court.

An Exxon station is under construc-tion on Expressway 83. Texmart con-venience store was built in 2000 onEast Tyler street. A convenience storewas built on Loop 299. Hicks Oil is un-der construction on North Commerce.Lube N Wash is being built at Loop499 and Expressway 77. Precision

Lube and Tube was completed onSouth Expressway 77.

IHOP is under construction on Lin-coln in Harlingen. Jack in the Box isunder construction on Expressway 83.Borrego’s Restaurant is being built atSouth H Street. Wendy’s is being builtat Ed Carey Drive. McDonald’s was re-built on Sunshine Strip in 2000. El Patorestaurant was opened on South High-way 77 in 2000.

The First National Bank of SanBenito opened a Harlingen Branch onSunshine Strip in May 2000. HidalgoFederal Credit Union was built in 2000on West Lincoln. Texas State Bank wasbuilt on South US Highway 77.

On South Padre Island, two new res-taurants, Bigo’s and Las Brisas, openedin 2000 on Padre Island Boulevard. Anumber of T-shirt shops are under con-struction, including two large shops onPadre Island Boulevard. Schlitterbahnopened a new water park on South Pa-dre Island. The park started construc-tion in July 2000 and opened in May2001.

25

OFFICE MARKET

Office Property Statistics

Class A Class B

Central business districtAverage rental rate $12.90 $11.70Occupancy (in percent) 90 75

SuburbanAverage rental rate $13.20 $13.05Occupancy (in percent) 90 90

Source: NAI 2001 Real Estate Planning Guide

The U.S. Border Patrol’s new $14million, 50,000-square-footbuilding in Harlingen, located

on New Hampshire and Expressway77/83, was completed in 2000. TheCity of Harlingen and the U.S. Immi-gration and Naturalization Servicecompleted an $8 million annex on Ex-pressway 77/83 near Wal-Mart.

In Harlingen, offices are planned onWest Harrison. State Farm is planningan office at Camelot Plaza. BahanaReal Estate is planning an office onEast Harrison. Villareal Office Com-plex was built in 2000 on EastHarrison. An office complex was con-structed on East Harrison in 2000. An-other office complex was completedon East Tyler in 2000. Crossroad Officecomplex was completed on East Tyler.

The exterior of the former court-house, the Dancy Building, is being re-stored at a cost of $2.7 million. Fund-ing is still in process for renovation ofthe interior of the building, which is lo-cated on Madison Street. The Browns-ville Historic Museum also is undergo-ing a $500,000 renovation.

One Paseo Place, a six-story officebuilding, will be the centerpiece of theWildflower Office Park, part of thePaseo de la Resaca development inBrownsville. Construction is expectedto begin in 2001.

Southwestern Bell Wireless willopen at the former site of Wallbanger’srestaurant in North Brownsville by theend of 2001. The office at 1900 N. Ex-pressway in the Omni Pavilion will of-fer phone activations, customer ser-vice and equipment exchange.

Southmost Road will soon see thecompletion of a 13,000-square-footTexas Workforce Center, which willbegin operating in December 2001.The center will be located at South-most and Morningside roads and willcost about $300,000. The new centerwill have a special conference areaavailable for community gatheringsand will offer many facilities for jobseeking and educational information.

On South Padre Island, an officecomplex is under construction on Pa-dre Island Boulevard.

Medical OfficesThe Brownsville Surgical Hospital is

under construction near the Valley Re-gional Medical Center. The 34,000-square-foot facility is owned by a jointventure of 40 local doctors and is ex-pected to cost $8.5 million.

A six-story medical office buildingwas completed in 2000 in Harlingen.Medicare reductions have hurt localhospitals. Valley Baptist Medical Cen-ter estimates that through 2002 thehospital will lose $25 million as Medi-

care patients account for 32 percent ofthe hospital’s clientele.

The Dolly Vinsant Hospital currentlyhas 81 beds and has announced an ex-pansion project costing approximately$3 million.

Driscoll Children’s Hospital plans toconstruct a pediatric clinic in Browns-ville. The clinic will be located directlybehind Valley Regional Medical Center.

In Harlingen, the Regional Aca-demic Health Center broke ground. A$6 million Su Clinica Familiar isscheduled to be constructed west ofthe medical school and will comple-ment the $24 million facility. Medicalstudents will start in 2002.

The Valley Baptist Medical Center isplanning to build a $7.5 million pedi-atric care center that will create about60 jobs. The 61-bed facility willdouble the hospital’s capacity to treatseverely ill children. The 42,000-square-foot facility will be constructedon the fourth floor of the hospital’snew east tower.

Doctors' offices are under construc-tion on Ed Carey and Camelot Drive. Anew heart hospital is under construc-tion at Expressway 77 and Camelot inHarlingen. Silva Medical Plaza isplanned in Brownsville. The center onCentral Avenue is expected to startconstruction in 2001.

26

INDUSTRIAL MARKET

In the Rio Grande Valley, NAI/RiocoRealty indicates that bulk ware-house space rents for an average

$3.30 per square foot and manufactur-ing space for an average $3.48 persquare foot. Warehouse and manufac-turing space had 2000 vacancy rates of5 and 10 percent, respectively, in theMSA.

Dexter Adhesive & Coating Systemsis adding 5,000 square feet to its facil-ity near the intersection of FM 511 andHighway 48 in Brownsville. The part-nership of Nardi Italia and ValleyTrucking Inc. will move into a 50,000-square-foot speculative building lo-cated in the NAFTA Industrial Park atFM 511 and Highway 48. Tella Tool &Manufacturing is building its 30,000-square-foot facility in the park.Neoplan USA, a bus manufacturingunit, and New Process Steel, a steelprocessing unit, are opening inBrownsville in 2001. Scientific Mold-ing Corporation has purchased 50acres on FM 511 for a plastic injectionmolding plant. The facility is expectedto be completed by early 2002.

Trico Products is closing its facilityin Tennessee and leasing an additional

40,000 square feet in the Airport In-dustrial Park. YPS Mold and Engineer-ing makes and tests plastic injectionmolds for the automobile industry. Thefirm operates out of a 5,000-square-foot facility on 14th Street and employsfive.

In Harlingen, the Frito-Lay/RioGrande Snack Company plans to add a55,000-square-foot addition to its pro-duction plant. The $20 million expan-sion will create 40 jobs.

In Harlingen, Fox Valley Moldingplans to build a new facility on EastGrimes. Industrial Fab has a plant un-der construction on East Grimes. BalesMold Service completed constructionon FM 509. Malco Warehouse wasbuilt on North Expressway 77 in 2000.Gib’s Tool and Die was completed in2000 on Industrial Way. QConics wasalso constructed on Industrial Way. Atortilla factory was built in 2000 onNew Combs.

In San Benito, Penske Logistics isconstructing a 178,000-square-footwarehouse. The warehouse will holdgoods being transported between theUnited States and Mexico.

Brownsville has two major industrialparks, the Brownsville-South Padre Is-land Airplex and the Port of Browns-ville. The Port of Brownsville has18,000 acres available for develop-ment, 5,000 of which have infrastruc-ture in place. At the Port ofBrownsville, Uniexcel Chemical Solu-tions plans to build a manufacturingplant. The site is located on the northside of the ship channel.

Additionally, Brownsville has sev-eral smaller parks including NAFTA In-dustrial Park, Victoria Lake IndustrialPark and Brownsville Industrial Park.Development is occurring in the newVeterans International Trade Center.The Class A park is located adjacent tothe Veterans International Bridge. The101-acre park is designed to accom-modate light manufacturing, warehousedistribution and corporate offices.

The Port of Harlingen has 150 acresavailable for development, all ofwhich are included in the City ofHarlingen’s Enterprise Zone. TheHarlingen Channel is maintained to awidth of 125 feet and a depth of 12feet.

Industrial Property Statistics, 2000

Bulk Warehouse Manufacturing Flex

Average rental rate $3.30 $3.48 $5.10Occupancy (in percent) 95 90 95

Source: NAI 2001 Real Estate Planning Guide

27

601-25-1477

CONCLUSION

International activities and tradewith Mexico are extremely impor-tant to the Brownsville-Harlingen-

San Benito MSA. The North AmericanFree Trade Agreement has increasedBrownsville’s importance as a trans-

portation corridor to Mexico. Road ex-pansions continue to increase thetrade and transportation industries inthe area.

The MSA is experiencing growth inits educational facilities and in its

strong medical services industry. Retailgrowth is also occurring in Browns-ville. With new businesses movinginto the area and a relatively low un-employment rate, the MSA’s outlook isgood.