Tyler Annual Office Market Survey Fall 2017 · TYLER OFFICE MARKET SURVEY September, 2016 ... B...

TYLER OFFICE MARKET SURVEY

September, 2016

Burns Commercial Properties has completed its annual survey of the Tyler office market and the results indicate that no dramatic changes have

taken place in this segment of the commercial real estate sector.

The survey consists of data compiled from fifty seven buildings which contain a total of 2,244,123 square feet. The overall occupancy rate for

the properties surveyed came in at 85.4%, one half of one percent better than the 2015 numbers.

Significantly, the average quoted rates for the properties, decreased by $0.12 per square foot, showing an average rate of $15.12. The rates are

quoted on a gross rent basis, in which the Landlord pays for all utilities, janitorial service, maintenance, taxes, and insurance. There is a total of

327,288 square feet of space currently available in the market.

The most pronounced change was found in the downtown office sector, which experienced a decline in occupancy from 80.7% to 78.3%. The

average asking rate in this portion of the market is $13.05 per square foot.

In the South Tyler market, the occupancy rate is 89.1%, a two percent improvement over last year. Rates were down slightly in this area, with

an average of $15.85 per square foot.

Class A buildings improved their occupancy levels slightly, ending at 87.1%. Rates were virtually unchanged, down to $19.98 per square foot

from $20.04 last year.

Class B buildings are 84.3% occupied, up from 83.1% last year. Rates dropped from $14.25 to $13.93 per square foot.

Class C buildings fared worse, dropping by 4.8% to an occupancy level of 84.0% overall. Rates were virtually unchanged at $12.50 per square

foot.

The office market has been negatively affected by the slowdown in the energy sector plus the increased use of technology, which makes it

possible to achieve the same output level with fewer employees, while allowing companies to place more workers per square foot. Additionally,

more people are working from home which is also a result of technological changes.

Thanks to the building owners, managers, and leasing agents who supplied the information used to complete this report, and to Peggie Jenkins

for compiling it.

Taylor Burns

Table 1


SEPTEMBER 2016

Total Office Market Statistics

Number of Buildings: 57

Total Square Feet: 2,244,123

Total Vacant Square Feet: 327,288

Overall Occupancy Rate: 85.4%

Average Annual Rental Rate Per SF: $15.12

Tyler CBD (Downtown) Office Market Statistics


Total Square Feet: 760,945


Occupancy Rate: 78.3%


Tyler Suburban (South Tyler) Office Market Statistics






Table 2


SEPTEMBER 2016

Class A






Class B






Class C






CITY: Tyler

MARKET: Central Business District (Downtown)

DATE: September, 2016 COMMON

LARGEST ANNUAL AREA

BUILDING/ADDRESS TOTAL SIZE NUMBER OF PERCENT TOTAL SPACE CONTIGUOUS BASE ADD-ON EXPENSE BLDG

OWNER IN SF FLOORS OCCUPIED AVAILABLE AVAILABLE RENT FACTOR STOP CLASS CONTACT

Tyler CBD Office Market

First Place 187,060 12 91% 16,057 6,548 $16.00 - 10.8% $9.48 A Allen Bell

100 E. Ferguson Street $18.00 Allen Bell Property Svcs.

Crest Properties, Ltd. 903/595-2805

Plaza Tower 209,524 19 72% 60,597 11,086 $16.50 - 11.4% Base Yr. A Taylor Burns

110 N. College Avenue (incl 8,904 sf in basement) $17.00 Burns Commercial Properties

Genecov Group 903/534-1200

200 Broadway Center (KLTV BLDG) 54,904 4 62% 20,592 10,296 $13.00 N/A Base Yr. B Taylor Burns

105 W. Ferguson Street Burns Commercial Properties

TV-3, Inc. 903/534-1200

Tyler Office Center 17,000 2 71% 4,900 3,000 $10.50 N/A None B Art Mullan

120 S. Broadway Avenue Signature Management, Inc.

Individual 903/526-0880

United Heritage Bldg. 13,252 2 71% 3,900 1,492 $10.00 5.0% Base Yr. B Robert Means

522 S. Broadway Avenue Investment Real Estate Svcs.

Woldert Rentals, LLC 903/594-8880

People's Petroleum Building 76,305 15 74% 20,004 11,476 $16.00 16.0% Base Yr. B Andy Bergfeld

102 N. College Avenue Bergfeld Realty

People's Petroleum Bldg., LLC 903/592-1032

The Energy Center 41,560 3 85% 8,310 1,000 $12.00 N/A None C Martin Heines

719 W. Front Street Martin Heines Real Estate

Briarwood Group, Ltd. 903/593-2367

Fountain Square 29,484 2 90% 3,500 1,200 $11.00 N/A None C Martin Heines

401 E. Front Street Martin Heines Real Estate


Blackstone Building 26,620 6 100% 0 0 $13.00 20.9% $6.76 B Allen Bell

315 N. Broadway Avenue Allen Bell Property Svcs.

Tyler Chamber of Commerce 903/595-2805

BURNS COMMERCIAL PROPERTIES 2016 OFFICE MARKET SURVEY, TYLER, TEXAS

COMMON

LARGEST ANNUAL AREA




122 South College Building 6,028 2 0% 6,028 6,028 $10.00 N/A None C Bill Whitehurst

122 S. College Avenue 903/595-0470

Whitehurst & Smith

Wadel-Connally 30,808 3 89% 3,328 3,740 $13.00 - 17.3% $5.26 B Allen Bell

112 E. Line Street $16.00 Allen Bell Property Svcs.

BSGJ1, LLC 903/595-2805

Austin Bank Building 35,841 12 86% 5,018 1,500 $12.00 N/A None C Martin Heines

305 S. Broadway Avenue Martin Heines Real Estate

Briarwood Group, Ltd 903/593-2367

210 South Broadway Building 13,357 2 50% 6,733 1,205 $13.50 15.0% Base Yr. B Andy Bergfeld

210 S. Broadway Avenue Bergfeld Realty

Broadway Rusty Nail, Ltd. 903/592-1032

320 South Broadway Avenue 19,202 2 67% 6,409 1,315 $13.50 5.0% Base Yr. B Andy Bergfeld


Metro Asset Management, LLC 903/592-1032

Totals For CBD: 760,945 78.3% 165,376 $13.05 (avg)

CITY: Tyler

MARKET: Suburban


LARGEST ANNUAL AREA



Tyler Suburban Office Market

One American Center 113,708 7 88% 13,971 6,023 $19.00 12.6% Base Yr. A Taylor Burns

909 ESE Loop 323 Burns Commercial Properties

Mesa Loans of Athens, L.P. 903/534-1200

Two American Center 94,017 5 100% 0 0 $17.00 - 16.0% Base Yr. A Russell Patterson

821 ESE Loop 323 $19.00 Patterson Commercial Property

Aberfeldy, Ltd. 903/597-1800

Grande Centre 90,514 5 100% 0 0 $20.00 - 12.2% $7.35 A Taylor Burns

6101 S. Broadway Avenue $23.00 Burns Commercial Properties

David Lake 903/534-1200

Grande Plaza 57,500 1 90% 5,720 3,110 Negotiable N/A N/A B Brad Donley

212 Grande Blvd. Pyle Properties

Pyle Properties 903/509-8161

Heartland Financial Center 58,578 2 100% 0 0 Negotiable 15.0% Base Yr. A Brig North

501 Shelley Drive Heartland SIG

Hibbs Financial 903/266-5647

Woodgate Centre 95,007 4 86% 13,391 5,949 $16.00 13.2% Base Yr. B Glenn Eikner


Woodgate Centre, LLC 903/534-1200

Paluxy Square 79,438 1 69% 24,578 5,091 $12.50 - N/A Base Yr. B Aaron Uncapher

3800 Paluxy Drive $14.50 Burns Commercial Properties


Commerce Square 73,165 1 83% 12,081 3,020 $11.10 N/A None B James Wynne, III

3334 SSW Loop 323 Commerce Square Corp.

Wynne Interests 903/509-9795

Oak Plaza Building 59,610 2 80% 11,795 5,157 $16.00 13.5% $6.04 B Dan Spivey

3300, 3304 & 3310 S. Broadway Roosth Properties

Roosth Properties 903/593-8333

Shiloh Office Park 22,131 1 100% 0 0 $13.50 N/A Base Yr. B Russell Patterson

921 Shiloh Road Net Elec/Janitorial Patterson Commercial Property


COMMON

LARGEST ANNUAL AREA




Independence Center 54,337 4 93% 4,031 2,000 $13.50 15.0% Base Yr. B Don Simmons

100 Independence Place Simmons Real Estate


Alpha Centre 45,632 3 82% 8,005 2,880 $14.00 20.0% Base Yr. B Russell Patterson

3200 Troup Highway Patterson Commercial Property


Atriums 39,086 1 95% 1,759 1,086 $12.50 15.0% Base Yr. B Russell Patterson

1820 Shiloh Road Patterson Commercial Property


Southeast Center 38,757 4 80% 7,873 3,823 $16.00 - 13.5% $6.61 A Dan Spivey

3301 Troup Highway $18.00 Roosth Properties


Southpark Centre 48,309 3.5 97% 1,325 1,325 $15.50 - 11.0% Base Yr. B Glenn Eikner

1828 ESE Loop 323 $17.00 Burns Commercial Properties

Negem Investments, LLC 903/534-1200

Scottish Highlands Office 33,002 1 90% 3,253 1,716 $14.00 N/A Base Yr. B Glenn Eikner

Highway 110 S. at Kensington Net of Utilities Burns Commercial Properties


Oakglen Office Building 14,463 1 96% 705 705 $14.00 15.0% Base Yr. B Carrie Johnson

5620 Old Bullard Road Harbor Properties

Harbor Properties 888/792-0308

Threlkeld Building 15,929 2 100% 0 0 $15.00 N/A None B Don Robert Johnson

515 WSW Loop 323 Trust Property Mgmt.

903/581-6560

Atelier Office Buildings 13,960 1 100% 0 0 $13.72* N/A Base Yr. B Carrie Johnson



* Tenant pays for certain charges such as utilities and/or janitorial. Rate shown includes an estimate for these sevices.

COMMON

LARGEST ANNUAL AREA




Bullard Road Square 14,114 1 100% 0 0 $12.00* N/A Base Yr. C Carrie Johnson



Woodgate I 32,776 1 100% 0 0 $13.25 N/A N/A B Brian Burks

1121 ESE Loop 323 Landbridge Commercial

CG Investments, LP 903/352-3000

Woodgate II 33,040 1 95% 1,501 1,501 $14.50 15.0% Base Yr. B Russell Patterson

1021 ESE Loop 323 Patterson Commercial Property

Flowers Davis PLLC 903/597-1800

Woodgate IV 50,757 1 91% 4,700 2,700 $14.00 13.6% $6.00 B Don Robert Johnson

1101 ESE Loop 323 Trust Property Mgmt.

Copeland Gate, LLC 903/581-6560

Southside Office Building 15,837 1 90% 2,000 500 $12.00 N/A None C Martin Heines

1324 S. Beckham Martin Heines Real Estate

Pollard-Heines Buildings, LLC 903/593-2367

Oak Leaf Building 12,360 1 100% 0 0 $12.00* N/A $2.75 C Carrie Johnson



Winchester Office Complex 12,000 1 100% 0 0 $12.00 N/A None C Carrie Johnson

211-215 Winchester Drive Harbor Properties


The Colonial 10,300 1 100% 0 0 $13.00 N/A None B Carrie Johnson



Highlands Office 7,730 1 100% 0 0 $13.50 N/A None C Bob Matush

2624 Kensington 903/561-7287

Bob Matush


COMMON

LARGEST ANNUAL AREA




Southgate Office Park 11,893 1 100% 0 0 $15.00 N/A Base Yr. B Mark Whatley

720 WSW Loop 323 Glenn Eikner

Genecov Group Burns Commercial Properties

903/534-1200

Off Broadway II 22,990 1 0% 22,990 22,990 Negotiable N/A N/A B Nolan Manziel

2301 S. Broadway Avenue 903/592-4315

Nolan Manziel

Pruitt Place Building 10,000 1 55% 4,500 4,500 $15.50 N/A N/A A Don Carroll

1015 Pruitt Place NNN Landbridge Commercial

Abby Development 903/561-9527

1014 Pruitt Place 8,000 1 100% 0 0 $15.50 N/A N/A A Don Carroll

Abby Development NNN Landbridge Commercial

Building 1 903/561-9527



Building 2 903/561-9527

Old Jacksonville Professional Park 20,000 1 100% 0 0 $15.50 N/A N/A A Don Carroll

6760 & 6770 Old Jacksonville Road NNN Landbridge Commercial


Regions Bank Building 12,367 1 100% 0 0 $15.50 N/A Base Yr. B Taylor Burns

1000 WSW Loop 323 Burns Commercial Properties

WSW Loop Partners, LLC 903/534-1200

Jordan Plaza 40,000 1 94% 2,400 2,400 $11.00 $3.60/SF N/A B Brian Burks

104-115 Jordan Plaza Blvd. Landbridge Commercial

Verian Investments, LP 903/352-3000

Kinsey Plaza 26,592 1 96% 1,000 1,000 $12.00 N/A N/A B Marc Ivy

1420 WSW Loop 323 Bridgewater Realty

ETX Tyler Properties 903/530-1984

COMMON

LARGEST ANNUAL AREA




Blue Mountain Office 7,500 1 67% 2,500 2,000 $18.00 N/A N/A A Marc Ivy

Blue Mountain Blvd. Bridgewater Realty

Fleming Properties 903/530-1984

Broadway Commons 16,000 1 100% 0 0 $16.00 N/A N/A B Robert Means

8288 S. Broadway Investment Real Estate Svcs.

Andres Alarcon 903/594-8880

Plantation Center 20,000 1 100% 0 0 $14.00 N/A N/A B Robert Means

1402-1406 Rice Rd. NNN Investment Real Estate Svcs.

903/594-8880

ETS Building 3,600 1 0% 3,600 3,600 $10.00 N/A N/A C Brian Burks

419 Rice Rd. NNN Landbridge Commercial

903/352-3000

Corporate Green Office Park 19,945 1 100% 0 0 $16.00 N/A N/A A Matthew Marshall

5751-5767 Eagles Nest Blvd. NNN Drake Real Estate

Phil Burks 903/581-3737

Broadway Hills Plaza 16,234 2 49% 8,234 7,720 $16.00 N/A N/A A Matthew Marshall

7925 S. Broadway, Bldg. 11 NNN Drake Real Estate

CHB Interests, LLC 903/581-3737

Suburban Totals: 1,483,178 89.1% 161,912 $15.85 (avg)

Totals For All Properties: 2,244,123 85.4% 327,288 $15.12 (avg)


September, 2015

The annual Burns Commercial Properties Office Market survey was just completed and the results indicate that the gradual

decrease in the office occupancy rate in the City has continued over the past twelve months.

The Survey includes fifty six buildings which contain 2,233,733 square feet. The current overall occupancy rate stands at

84.9%, a decrease from 85.9% one year ago. Owner occupied buildings are not included in the Survey.

Going back to the year 2008, we find that the occupancy rate was 90.2%, with a total of 209,291 square feet of vacant

space. Currently, the local market contains 336,730 square feet of vacancy. This has occurred despite the fact that there

has not been a large speculative office building constructed in the City since 1986.

The occupancy rate has been trending downward for years, increasing slightly in 2010, but declining in all the other years

since 2008.

Theories as to the cause of this decline include several factors. Advances in technology have made it possible for office

users to operate with a reduced number of administrative workers, while the use of work stations has reduced the number

of individual offices needed in most office settings. Additionally, the current low interest rate environment has caused a

number of local firms to build their own office structures, decreasing the demand for lease space. Another item which

affects demand for office space in Tyler is the lack of large (30,000 square feet or more) spaces which might help attract

national companies to place a branch operation here. Currently only three buildings have spaces which can offer suites

with more than 10,000 contiguous square feet. The largest of these contains 22,990 square feet.

The Survey reveals that the average rate Landlords are quoting for vacant space rose slightly from last years’ $14.76 per

square foot to $15.24 per square foot.

Class A buildings experienced a decrease in occupancy from 89.3% to 86.5%, while Class B structures increased in

occupancy from 82.4% in 2014 to 83.1% in 2015. Class C building occupancy rates decreased from 90.7% to 88.8%.

The Tyler office market contrasts sharply with the retail sector, which is in a rapid growth mode. The total rent per square

foot paid by most Tyler retail tenants is well in excess of the rate office users pay. The fact that most office tenants do not

pay for utilities, taxes, insurance, and common area maintenance means that retail tenants (who normally are charged for

these items) are paying significantly higher rates than office tenants are enjoying.

Thanks to all the owners and managers who contributed data for this Survey, and to Peggie Jenkins for compiling it.

Taylor Burns Owner/Broker Burns Commercial Properties, LLC

Table 1


SEPTEMBER 2015



















SEPTEMBER 2013

Class A






Class B






Class C







Table 2

CITY: Tyler



LARGEST ANNUAL AREA












TV-3, Inc. 903/534-1200




United Heritage Bldg. 13,252 2 71% 3,900 1,492 $13.00 5.0% Base Yr. B Robert Means

522 S. Broadway Avenue Investment Real Estate Svcs.















COMMON

LARGEST ANNUAL AREA






Whitehurst & Smith



BSGJ1, LLC 903/595-2805




210 South Broadway Building 13,262 2 100% 0 0 $13.50 15.0% Base Yr. B Andy Bergfeld



320 South Broadway Avenue 18,304 2 100% 0 0 $13.50 5.0% Base Yr. B Andy Bergfeld




CITY: Tyler

MARKET: Suburban


LARGEST ANNUAL AREA




One American Center 113,708 7 82% 20,302 8,424 $17.50 - 12.6% Base Yr. A Taylor Burns



Two American Center 94,017 5 94% 5,425 3,589 $17.00 - 16.0% Base Yr. A Russell Patterson





David Lake 903/534-1200

Grande Plaza 57,500 1 98% 1,387 1,387 Negotiable N/A N/A B Brad Donley

212 Grande Blvd. Pyle Properties

Pyle Properties 903/509-8161




Woodgate Centre 95,007 4 90% 9,361 3,985 $15.00 - 13.2% Base Yr. B Glenn Eikner



Paluxy Square 79,380 1 67% 26,412 3,403 $13.50 - N/A Base Yr. B Mark Whatley









Shiloh Office Park 22,131 1 86% 3,011 3,011 $13.50 N/A Base Yr. B Russell Patterson



COMMON

LARGEST ANNUAL AREA



























903/581-6560




COMMON

LARGEST ANNUAL AREA







Woodgate I 30,937 1 85% 4,650 1,560 $14.50 15.0% $6.20 B Brian Burks

1121 ESE Loop 323 Landbridge Commercial

CG Investments, LP 903/352-3000




Woodgate IV 50,757 1 94% 3,045 982 $14.00 12.5% $6.00 B Don Robert Johnson















Highlands Office 7,730 1 100% 0 0 $13.50 N/A None C Bob Matush

2624 Kensington 903/561-7287

Bob Matush


COMMON

LARGEST ANNUAL AREA







903/534-1200



Nolan Manziel






Building 1 903/561-9527



Building 2 903/561-9527










Kinsey Plaza 26,592 1 88% 3,156 3,156 $12.00 - N/A N/A B Ray Newman

1420 WSW Loop 323 $16.00 Bridgewater Realty


COMMON

LARGEST ANNUAL AREA







Plantation Center 20,000 1 70% 6,000 6,000 $14.00 N/A N/A B Robert Means

1402-1406 Rice Rd. NNN Investment Real Estate Svcs.

903/594-8880

ETS Building 3,600 1 0% 3,600 3,600 $12.00 N/A N/A C Robert Means

419 Rice Rd. NNN Investment Real Estate Svcs.

903/594-8880

Corporate Green Office Park 19,945 1 75% 4,980 4,980 $16.00 N/A N/A A Matthew Marshall


Phil Burks 903/581-3737

Broadway Hills Plaza 16,234 2 49% 8,234 4,830 $16.00 N/A N/A A Matthew Marshall

7925 S. Broadway, Bldg. 11 NNN Drake Real Estate

CHB Interests, LLC 903/581-3737




September, 2014

The annual Burns Commercial Properties Office Market Survey reveals that the Tyler Office Market has experienced very little change

since the 2013 Survey was completed. Both the Occupancy Rate and the quoted lease rate have deviated very slightly from the

previous year.

The Survey reveals that the Occupancy Rate for the fifty three buildings surveyed stands at 85.9%, virtually unchanged from last year’s

results, in which the rate was 85.8%. The average quoted lease rate stands at $14.76 per rentable square foot, up slightly from last

year, when it stood at $14.44 per square foot.

The average lease rate is calculated on a “gross lease” basis, which is a lease in which the Landlord pays all expenses, including utilities,

taxes, insurance, janitorial service, and common area maintenance. Some properties listed in the survey are leased on a triple net

basis, in which the tenant pays for these expenses. For purposes of determining the average rental rate, an estimate of the expenses

was made and is added to the quoted lease rate.

The fifty three buildings included in the Survey contain a total of 2,162,125 square feet, of which 304,897 square feet is currently

vacant. The total absorption of space for the year was virtually stagnant, standing at 8,367 square feet.

The downtown Tyler office market experienced a slight drop in occupancy from 82.1% to 80.35, while the suburban market occupancy

moved upward slightly from 87.8% to 89.0%.

Class B & Class C buildings enjoyed a slight uptick in occupancy rates, while Class A buildings declined from 91.7% in 2013 to 89.3%

this year.

Tyler has experienced a trend in which a number of office tenants have purchased land and constructed their own office buildings as

the current low interest rate environment makes ownership more attractive than it has been in the past. This trend has resulted in

fewer tenants leasing space. The Survey does not include statistics for owner occupied properties.

We greatly appreciate all the building owners and managers who contributed the data necessary to complete this survey. Thanks to

Peggie Jenkins for compiling it.

Taylor Burns

Broker/Owner

Burns Commercial Properties, LLC

Table 1

TYLER OFFICE MARKET SURVEYSEPTEMBER 2014



















Table 2

TYLER OFFICE MARKET SURVEYSEPTEMBER 2014

Class A






Class B






Class C






CITY: Tyler



LARGEST ANNUAL AREA












TV-3, Inc. 903/534-1200




United Heritage Bldg. 13,252 2 71% 3,900 1,492 $14.00 - 5.0% Base Yr. B Russell Patterson

522 S. Broadway Avenue $15.00 Patterson Commercial Property















COMMON

LARGEST ANNUAL AREA






Whitehurst & Smith



BSGJ1, LLC 903/595-2805




210 South Broadway Building 13,262 2 100% 0 0 $13.50 15.0% Base Yr. B Andy Bergfeld







CITY: Tyler

MARKET: Suburban


LARGEST ANNUAL AREA




One American Center 113,708 7 89% 12,254 6,023 $17.50 - 12.6% Base Yr. A Taylor Burns








David Lake 903/534-1200




Woodgate Centre 95,007 4 92% 7,891 2,500 $15.00 - 13.2% Base Yr. B Glenn Eikner















COMMON

LARGEST ANNUAL AREA










Atriums 39,086 1 98% 614 614 $12.50 15.0% Base Yr. B Russell Patterson












Broadway Professional Building 25,510 2 85% 3,786 2,430 $14.00 N/A $6.00 B Brian Burks

2737 S. Broadway Avenue Landbridge Commercial

Motina Ltd. 903/352-3000






903/581-6560




COMMON

LARGEST ANNUAL AREA







Woodgate I 30,937 1 88% 3,734 954 $13.50 15.0% $6.20 B Don Robert Johnson


Woodgate I, Ltd. 903/581-6560

Woodgate II 33,040 1 100% 0 0 $14.50 15.0% Base Yr. B Russell Patterson












Winchester Office Complex 12,000 1 91% 1,113 1,113 $12.00 N/A None C Carrie Johnson






Highlands Office 7,730 1 89% 868 868 $13.50 N/A None C Glenn Eikner

2624 Kensington Burns Commercial Properties

Bob Matush 903/534-1200


COMMON

LARGEST ANNUAL AREA







903/534-1200



Nolan Manziel






Building 1 903/561-9527



Building 2 903/561-9527










Kinsey Plaza 26,592 1 97% 800 800 $12.00 - N/A N/A B Ray Newman

1420 WSW Loop 323 $14.00 Best Realty Services


COMMON

LARGEST ANNUAL AREA







Corporate Green Office Park 15,000 1 76% 3,656 2,500 $15.50 N/A N/A A Matthew Marshall


Phil Burks 903/581-3737




September, 2013

The annual Burns Commercial Properties Office Market Survey reveals that both the occupancy rate and the quoted lease rate for

office buildings in Tyler changed very little over the previous twelve months.

The 2012 survey found that the overall occupancy rate was 85.7%, while the 2013 survey shows that the current rate is 85.8%. The

average lease rate for the fifty three buildings surveyed is $14.44 per rentable square foot, which is virtually unchanged from last year,

and is only up slightly in the past three years, as the 2010 rate was $14.21/square foot.

The average lease rate is calculated on a “gross lease” basis, which is a lease in which the Landlord pays all expenses, including

utilities, taxes, insurance, and maintenance. Some of the properties in the survey are leased on a triple net basis, in which the tenant

pays its portion of the expenses, but for purposes of calculating an average rent, these numbers are adjusted to reach a rental rate

which is equivalent to a gross lease rate.

The fifty three buildings surveyed contain a total of 2,154,210 rentable square feet, of which 305,349 square feet is currently reported

as being vacant.

The downtown market improved its occupancy rate from 80% to 82.1%, with a drop in vacant space of 18,528 square feet. The South

Tyler market occupancy rate dropped by one percent from 88.8% in 2012 to a current level of 87.8%. The amount of vacant space in

South Tyler increased by over 10,000 square feet.

While Class A & C office buildings are experiencing occupancy rates in the 89.9% to 91.7% range, Class B buildings contain in

excess of 217,000 square feet of vacant space, which is more than seventy one percent of the total amount of vacancy.

We appreciate all the building owners and managers who contributed the data necessary to complete this survey. Thanks to Peggie

Jenkins for compiling it.

Taylor Burns



















Table 1


SEPTEMBER 2013

Class A






Class B






Class C







SEPTEMBER 2013

Table 2

CITY: Tyler



LARGEST ANNUAL AREA








110 N. College Avenue (incl 8,904 SF in basement) $17.00 Burns Commercial Properties




TV-3, Inc. 903/534-1200




United Heritage Bldg. 13,252 2 89% 1,492 1,492 $14.00 - 5.0% Base Yr. B Russell Patterson

522 S. Broadway Avenue $15.00 Patterson Commercial Property


People's Petroleum Bldg. 71,265 15 39% 43,590 5,891 $13.00 16.0% Base Yr. B Andy Bergfeld













COMMON

LARGEST ANNUAL AREA




122 South College Building 6,028 2 100% 0 0 $8.00 N/A None C Bill Whitehurst


Whitehurst & Smith

Wadel-Connally 30,808 3 100% 0 0 $14.00 - 17.3% $5.13 B Allen Bell


BSGJ1, LLC 903/595-2805




210 South Broadway Avenue 13,262 2 91% 1,205 1,205 $13.50 15.0% Base Yr. B Andy Bergfeld







CITY: Tyler

MARKET: Suburban


LARGEST ANNUAL AREA




One American Center 114,344 7 99% 1,028 1,028 $17.50 12.6% Base Yr. A Taylor Burns








David Lake 903/534-1200

Heartland Financial Center 58,578 2 88% 7,258 7,258 $14.00 15.0% Base Yr. A Brig North



Woodgate Centre, LLC 95,007 4 87% 12,077 6,844 $14.50 - 13.2% Base Yr. B Glenn Eikner















COMMON

LARGEST ANNUAL AREA






















Broadway Professional Building 26,000 2 88% 3,000 1,800 $13.00 N/A $6.00 B Brian Burks

2737 S. Broadway Avenue Landbridge Commercial

Motina Ltd. 903/352-3000




COMMON

LARGEST ANNUAL AREA






903/581-6560




Park Garden Offices 11,000 1 93% 800 800 $12.00 N/A None B Gordon/Patty Mosley

4411 Old Bullard Rd 903/534-5396

Gordon/Patty Mosley




Woodgate I 30,937 1 91% 2,708 1,700 $13.50 15.0% $6.20 B Don Robert Johnson


Woodgate I, Ltd. 903/581-6560














COMMON

LARGEST ANNUAL AREA










Highlands Office 7,730 1 89% 868 868 $13.50 N/A None C Glenn Eikner

2624 Kensington Burns Commercial Properties

Bob Matush 903/534-1200




903/534-1200



Nolan Manziel






Building 1 903/561-9527



Building 2 903/561-9527

Old Jacksonville Professional Park 20,000 1 89% 2,200 2,200 $15.50 N/A N/A A Don Carroll



COMMON

LARGEST ANNUAL AREA







Jordan Plaza 40,000 1 80% 8,000 6,000 $11.00 N/A N/A B Brian Burks



Southwest Plaza 26,591 1 100% 0 0 $12.00 - N/A N/A B Matthew Marshall

1412 WSW Loop 323 $14.00 Drake Real Estate


Broadway Commons 16,000 1 100% 0 0 $16.00 N/A N/A B Matthew Marshall

8288 S. Broadway Drake Real Estate




Tyler Annual Office Market Survey Fall 2017 · TYLER OFFICE MARKET SURVEY September, 2016 ... B...

Documents

Transcript of Tyler Annual Office Market Survey Fall 2017 · TYLER OFFICE MARKET SURVEY September, 2016 ... B...