Market Reports Tyler[540]

Real Estate Market Overview 2005 Tyler The Tyler Metropolitan Statistical Area (MSA), located between Dallas and Shreveport along I-20, is a manufacturing, health care, education and retail center for East Texas. Tyler ranked third nationally on a list of "Best small places for Businesses and Careers" published by Forbes magazine and the Milken Institute in 2002. Tyler is also considered "The Rose Capital of America" and sponsors an annual Azalea and Spring Flower Trail in March and April that draws thousands of tourists. Quick Facts Land Area 928.38 square miles Population Density (2000) 188 people per square mile Counties Smith Area Cities and Towns Arp, Big Sandy, Garden Valley, Lindale, Mount Sylvan, Tyler, Whitehouse, Winona Real Estate Center Market Overview 2005 Tyler, TX Table of Contents Demographics ..............................................................................................3 Education .....................................................................................................6 Employment .................................................................................................7 Economy ....................................................................................................12 Infrastructure ..............................................................................................13 Public Facilities ..........................................................................................14 Multifamily ..................................................................................................15 Housing ......................................................................................................16 Retail ..........................................................................................................19 Hotel...........................................................................................................20 Office..........................................................................................................21 Industrial ....................................................................................................23 2 Real Estate Center Market Overview 2005 Tyler, TX Tyler Market Overview 2005 Demographics Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Tyler MSA Population Population Percent change 151,309 0.3 153,705 1.6 155,336 1.1 158,717 2.2 160,898 1.4 163,440 1.6 166,087 1.6 168,531 1.5 171,033 1.5 172,758 1.0 174,706 1.1 177,554 1.6 180,771 1.8 183,851 1.7 186,414 1.4 Source: U.S. Census Bureau 3 Real Estate Center Market Overview 2005 Tyler, TX Texas Metropolitan Area Population Change, 1990 - 2004 1990 2004 Percent Metropolitan Area Population Population Change McAllen-Edinburg-Mission 383,545 658,248 71.6 Austin-San Marcos 846,227 1,412,271 66.9 Laredo 133,239 219,464 64.7 Dallas 2,676,248 3,886,553 45.2 Brownsville-Harlingen-San Benito 260,120 371,825 42.9 Brazoria County 191,707 271,130 41.4 Houston 3,321,911 4,587,092 38.1 Fort Worth-Arlington 1,361,034 1,878,334 38.0 Texas 16,986,335 22,490,022 32.4 San Antonio 1,324,749 1,722,117 30.0 Bryan-College Station 121,862 156,275 28.2 Killeen-Temple 255,299 325,398 27.5 Galveston-Texas City 217,396 271,743 25.0 Tyler 151,309 186,414 23.2 Sherman-Denison 95,019 115,933 22.0 Amarillo 187,514 227,472 21.3 El Paso 591,610 713,126 20.5 Waco 189,123 222,439 17.6 Victoria 74,361 85,777 15.4 Lubbock 222,636 251,018 12.7 Longview-Marshall 193,801 215,159 11.0 Texarkana 120,132 132,716 10.5 Corpus Christi 349,894 385,700 10.2 Odessa-Midland 225,545 244,832 8.6 Beaumont-Port Arthur 361,218 383,443 6.2 San Angelo 98,458 103,772 5.4 Wichita Falls 130,351 136,595 4.8 Abilene 119,655 125,108 4.6 Source: U.S. Census Bureau Year 2005 2010 2015 2020 Tyler MSA Projected Population Texas State Data Center Texas Water Development (Scenario 0.5) Board 181,404 188,462 201,028 195,944 203,729 227,931 Sources: Texas State Data Center and Texas Water Development Board Household Composition Tyler MSA Average household size (2000) 2.59 Population younger than 18 (2000, in percent) 26.6 Population 65 and older (2000, in percent) 14.1 Source: U.S. Census Bureau Texas 2.74 28.2 9.9 4 Real Estate Center Market Overview 2005 Tyler, TX Distribution by Race and Hispanic or Latino Origin, 2000 (in percent) Tyler MSA Texas White 72.6 71.0 Black 19.1 11.5 Asian 0.7 2.7 American Indian 0.4 0.6 Other 5.7 11.7 Two or more races 1.4 2.5 Hispanic (of any race) 11.2 32.0 Source: U.S. Census Bureau Projected Population Growth, 2000 – 2020 (in percent) Texas 33.8% Tyler 16.6 % Source: Texas State Data Center (Scenario 0.5) 5 Real Estate Center Market Overview 2005 Tyler, TX Tyler Market Overview 2005 Education Educational Attainment, Persons Age 25 and Older (in percent) Level of Education Smith County Texas High school graduate 24.8 24.8 Some college, no degree 25.4 22.4 Associate's degree 7.4 5.2 Bachelor's degree 15.3 15.6 Graduate or professional degree 7.2 7.6 Source: U.S. Census Bureau, 2000 Census Educational Attainment, Persons Age 25 and Older (in percent) Level of Education Tyler MSA Texas High School Graduate or Higher 80.2 79.2 Bachelor's Degree or Higher 22.5 23.9 Source: U.S. Census Bureau 2000 School Tyler Junior College U.T. Tyler Local College and University Enrollment Fall 1999 Fall 2000 Fall 2001 Fall 2002 Fall 2003 Fall 2004 8339 8,240 8,451 8,977 9,591 9,430 3,390 3,592 3,732 4,254 4,769 5,326 Sources: Texas Higher Education Coordinating Board School Tyler Junior College U.T. Tyler Local College and University Enrollment Spring Spring Spring Spring 1999 2000 2001 2002 7,521 7,621 8,086 3,357 3,395 3,827 Spring 2003 8,578 4,261 Spring 2004 8,979 4,759 Sources: Texas Higher Education Coordinating Board 6 Real Estate Center Market Overview 2005 Tyler, TX Tyler Market Overview 2005 Employment Top Ten Employers Employer Sector East Texas Medical Center Health care Brookshire Grocery Company Grocery distribution Trinity-Mother Frances Hospital Health care Tyler Independent School District Education The Trane Company Heating-cooling unit manufacturing University of Texas Health Center at Tyler Health care & research Tyler Pipe Cast iron pipe, iron fittings Carrier Corporation Commercial air conditioners Kelly-Springfield Tire Company Tire manufacturing Tyler Junior College Education Source: Tyler Economic Development Council Aug-2004 Employees 3,048 2,681 2,571 2,520 1,915 1,300 1,100 1,028 1,000 925 Employer East Texas Medical Center Brookshire Grocery Company Trinity-Mother Frances Hospital The Trane Company Tyler Pipe Carrier Corporation Kelly-Springfield Tire Company Target Distribution Center Howe-Baker Engineers Southside Bank Top Ten Private Employers Sector Health care Grocery distribution Health care Heating-cooling unit manufacturing Cast iron pipe, iron fittings Commercial air conditioners Tire manufacturing Retail distribution Engineering/Contractor Bank Employees 3,048 2,681 2,571 1,915 1,100 1,028 1,000 872 695 650 Source: Tyler Economic Development Council Aug-2004 7 Real Estate Center Market Overview 2005 Tyler, TX Employment Growth by Industry Employment growth 2004 (in percent) Unemployment rate 2004 (in percent) New jobs in 2004 Employment growth by sector 2004 (in percent) Total Nonfarm Natural Resources, Mining, and Construction Natural Resources and Mining Construction Manufacturing Trade, Transportation and Utilities Information Financial Activities Professional and Business Services Educational and Health Services Leisure and Hospitality Government All estimates are subject to revision March-2005 Source: Bureau of Labor Statistics and Real Estate Center at Texas A&M University Tyler MSA 2.1 5.3 1800 2.1 2.1 5.4 1.5 5.3 2.6 4.4 -1.2 3.8 1.6 Texas 1.3 6.1 120,600 1.3 3.2 -1.0 -0.2 1.2 -1.1 1.7 1.7 2.1 2.1 1.5 Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Tyler MSA Employment Employment Percent Change 70,970 72,005 1.5 73,441 2.0 74,884 2.0 78,045 4.2 80,372 3.0 81,274 1.1 83,398 2.6 85,292 2.3 86,393 1.3 88,219 2.1 88,720 0.6 90,091 1.5 92,327 2.5 94,780 2.7 Source: U.S. Bureau of Labor Statistics 8 Real Estate Center Market Overview 2005 Tyler, TX Texas Metropolitan Area Employment Change, 1990-2004 1990 2004 Metropolitan Area Employment Employment McAllen-Edinburg-Mission 128,092 231,224 Austin-Round Rock 452,961 738,706 Laredo 48,588 77,898 Killeen-Temple-Fort Hood 93,215 137,634 Brownsville-Harlingen 90,534 130,457 College Station-Bryan 69,738 97,038 San Antonio 620,868 833,331 Dallas-Fort Worth-Arlington 2,163,142 2,790,815 Texas 8,071,312 10,362,982 Amarillo 96,512 122,770 Tyler 70,712 89,186 Houston-Baytown-Sugar Land 1,926,731 2,411,653 Sherman-Denison 43,644 53,651 Lubbock 110,510 134,203 Waco 86,033 104,444 Midland 51,435 61,405 Abilene 64,278 76,330 Corpus Christi 156,681 184,573 Victoria 44,880 52,847 El Paso 228,522 267,419 Longview 80,290 93,867 Wichita Falls 61,226 70,608 San Angelo 44,183 50,604 Texarkana 51,476 57,743 Odessa 52,585 57,944 Beaumont-Port Arthur 156,860 164,663 Percent Change 80.5 63.1 60.3 47.7 44.1 39.1 34.2 29.0 28.4 27.2 26.1 25.2 22.9 21.4 21.4 19.4 18.7 17.8 17.8 17.0 16.9 15.3 14.5 12.2 10.2 5.0 Source: Bureau of Labor Statistics and Real Estate Center at Texas A&M University (2003 definition) 9 Real Estate Center Market Overview 2005 Tyler, TX Employment Growth Tyler MSA 4.5 4 % Change from Previous Year 3.5 3 2.5 2 1.5 1 0.5 0 1995 1996 2003 2004 1993 1994 2001 2002 1991 1992 1999 2000 1997 1998 Source: U.S. Bureau of Labor Statistics and Real Estate Center at Texas A&M University Distribution of Employment in Major Categories 1,200,000 1,000,000 Total Jobs 800,000 600,000 400,000 200,000 0 2001 2002 2003 2004 2000 Government Prof & Bus Serv Trade/Trans/Util Leis & Hospitality Financial Activities Manufacturing Educ & Hlth Serv Information Construction Source: Texas Workforce Commission Feb-2005 10 Real Estate Center Market Overview 2005 Tyler, TX Tyler MSA Unemployment Rate (in percent) 8 7 6 5 4 3 2 1 0 1994 1996 1997 1991 1992 1993 1995 2004 1998 1999 2000 2001 2002 2003 Source: U.S. Bureau of Labor Statistics and Real Estate Center at Texas A&M University 11 Real Estate Center Market Overview 2005 Tyler, TX Tyler Market Overview 2005 Economy Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Tyler MSA Gross Retail Sales Total Sales Sales per Capita $1,285,862,178 $8,498 1,351,609,159 8,794 1,460,219,931 9,400 1,622,335,938 10,222 1,811,577,598 11,259 1,910,000,610 11,686 1,979,648,405 11,919 2,036,581,314 12,084 2,214,711,557 12,949 2,511,976,041 14,540 2,586,577,685 14,805 2,479,095,532 13,962 2,503,866,572 13,851 2,560,118,898 13,925 2,753,692,326 14,772 State Average 2004: $14,546 Source: Texas Comptroller's Office 12 Real Estate Center Market Overview 2005 Tyler, TX Tyler Market Overview 2005 Infrastructure Tyler Airline Boardings Airport 1998 1999 2000 2001 2002 2003 Tyler Pounds Regional Airport Enplaned 72,616 77,795 74,563 63,834 55,578 60,284 Deplaned 69,009 73,041 70,402 58,916 54,530 58,773 Total 141,625 150,836 144,965 122,750 110,108 119,057 Source: Tyler Pounds Field Airport 2004 70,549 68,741 139,290 13 Real Estate Center Market Overview 2005 Tyler, TX Tyler Market Overview 2005 Public Facilities Tyler City Public Facilities Building Permits Tyler City Building Permit Office 14 Real Estate Center Market Overview 2005 Tyler, TX Tyler Market Overview 2005 Multifamily Tyler Apartment Statistics 2004 Tyler $0.62 $0.49 94.4 96.8 Texas Metro Average $0.79 $0.92 91.5 92.4 Average rent per square foot Average rent for units built since 2000 Average occupancy (in percent) Average occupancy for units built since 2000 (in percent) Source: Apartment MarketData Research Jan-2005 Tyler MSA Multifamily Building Permits 2500 5+ Family Bldg. Permits in Units 2000 1500 1000 500 0 1980 1982 1984 1994 1996 1998 2000 2002 2004 1986 1988 1990 1992 Source: U.S. Census Bureau and Real Estate Center at Texas A&M University 15 Real Estate Center Market Overview 2005 Tyler, TX Tyler Market Overview 2005 Housing Housing Affordability - Fourth Quarter 2004 Percent of Households That Can Afford MedianTHAI for First-time priced Home THAI* Homebuyers 53 1.05 0.90 0.99 0.91 50 0.99 0.72 49 Tyler MSA Texas MLS Total U.S. Total * The THAI is the ratio of median household income to the income required to buy the median-priced home using currently available mortgage financing. 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 household income is just enough to qualify for a loan sufficient to purchase the median-priced home. Source: Real Estate Center at Texas A&M University Price Distribution of MLS Homes Sold, Tyler Area, 2003 (in percent) Price Range 1998 1999 2000 2001 2002 2003 2004 $29,999 or less 5.3 6.4 5.0 3.8 3.9 2.9 4.1 30,000 - 39,999 4.3 4.3 4.2 2.8 3.1 3.1 3.0 40,000 - 49,999 6.1 5.9 5.6 5.5 4.6 2.6 3.1 50,000 - 59,999 9.3 8.7 6.9 5.4 6.0 4.5 4.4 60,000 - 69,999 8.2 9.6 8.8 7.1 7.5 5.7 5.2 70,000 - 79,999 8.6 7.0 8.6 8.6 7.8 6.7 6.1 80,000 - 89,999 10.0 9.4 8.0 8.3 8.3 7.6 6.5 90,000 - 99,999 7.1 6.3 7.4 7.3 7.1 7.9 5.9 100,000 - 119,999 10.0 11.5 10.5 12.0 12.1 13.9 12.0 120,000 - 139,999 9.1 7.9 8.8 10.4 10.2 11.3 12.2 140,000 - 159,999 5.6 6.1 6.0 7.2 6.9 8.6 7.8 160,000 - 179,999 4.3 4.2 5.6 5.5 5.3 5.9 6.4 180,000 - 199,999 2.8 3.3 3.9 3.7 4.4 4.7 5.0 200,000 - 249,999 3.8 4.3 5.4 5.3 4.8 5.9 7.3 250,000 - 299,999 3.8 2.7 2.2 3.2 3.2 3.4 4.8 300,000 - 399,999 0.9 1.3 2.2 2.6 3.4 3.9 3.7 400,000 - 499,999 0.8 0.7 0.5 0.9 1.3 1.1 1.6 500,000 and more 0.2 0.3 0.6 0.5 0.2 0.5 0.8 Source: Real Estate Center at Texas A&M University Tyler Total Sales Average Sales Price *Dec-not available Home Sales, Tyler 2002 2003* 2004 2,076 2,113 2,960 $124,400 $133,700 $140,600 Source: Real Estate Center at Texas A&M University 16 Real Estate Center Market Overview 2005 Tyler, TX Property Tax Rates, 2004 County, Major City, Major School District Tax Rate per $100 Taxing Entity* Valuation City of Tyler 0.248855 Smith County 0.25447 Tyler Independent School District 1.66 Total $2.16 * Only the typical taxing entities are listed. However, there are numerous numbers of taxing entities that need to be taken into account for an actual tax rate calculation. Source: Smith County Appraisal District Average Sales Price of Single-Family Home Tyler Area $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 1996 1998 2000 2002 2004 1990 1992 1994 Source: Real Estate Center at Texas A&M University 17 Real Estate Center Market Overview 2005 Tyler, TX Home Price Appreciation Tyler MSA* The HPI for each geographic area is estimated using repeated observations of housing values for individual single-family residential properties on which at least two mortgages were originated and subsequently purchased by either Freddie Mac or Fannie Mae since January 1975. *According to new 2003 MSA definition, including Smith County 8% 7% Change from Previous Year 6% 5% 4% 3% 2% 1% 0% -1% 4Q-96 4Q-03 4Q-97 4Q-00 4Q-04 4Q-95 4Q-99 4Q-94 4Q-98 4Q-01 4Q-02 Tyler Source: Office of Federal Housing Enterprise Oversight Texas Single-Family Home Sales Volume Tyler Area 350 300 250 Units 200 150 100 50 0 May Sep Feb Nov Jan Mar Aug Dec Oct Jun Apr Jul 2003 Source: Real Estate Center at Texas A&M University 2004 18 Real Estate Center Market Overview 2005 Tyler, TX Tyler Market Overview 2005 Retail Tyler City Retail Building Permits Tyler City Building Permit Office 19 Real Estate Center Market Overview 2005 Tyler, TX Tyler Market Overview 2005 Hotel Hotel Occupancy and Rental Rates 2003* 2004 Tyler Texas Tyler Texas # Rooms 000's 2.1 320.2 2.2 329.2 Average daily rate $55.73 $68.80 $56.69 $70.62 Occupancy rate (in percent) 57.3 54.2 58.9 55.2 * 2003 and later data according to new MSA definition including Smith County Source: Office of the Governor Economic Development and Tourism and Source Strategies, Inc. of San Antonio Tyler City Hotel Building Permits Tyler City Building Permit Office 20 Real Estate Center Market Overview 2005 Tyler, TX Tyler Market Overview 2005 Office Tyler Office Market - September 2004 Total Market CBD/Downtown Suburban/South Statistics Market Tyler Market Number of buildings 44 14 30 Total square feet 2,009,877 791,360 1,218,517 Total vacant square feet 208,692 109,489 99,203 Overall occupancy rate (in percent) 89.6 86.0 91.9 Average annual rental rate per sq. ft. $11.81 $10.48 $12.41 Source: Burns & Noble TYLER OFFICE MARKET SURVEY - SEPTEMBER 2004 Class A Class B Class C Number of buildings 8 24 12 Total square feet 798,146 873,433 309,104 Total vacant square feet 61,181 77,395 55,884 92.33% 91.00% 81.90% Occupancy rate (in percent) Average annual rental rate per sq. ft. $15.00 $12.00 $10.06 Source: Burns & Noble Office Market Trends Rates & Occupancy (Sept. to Sept.) $12.00 $11.80 Average Rental Rate Per Sq. Ft. 90% 89% 88% 87% 86% 85% 84% 83% 82% 1998 1999 2000 2001 2002 2003 2004 Rental Rate Occupancy Percent occupied $11.60 $11.40 $11.20 $11.00 $10.80 $10.60 $10.40 $10.20 $10.00 Source: Burns & Noble 21 Real Estate Center Market Overview 2005 Tyler, TX Tyler Office Market Survey – September 2004 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 Class A Class B Total Square Feet Source: Burns & Noble Class C Occupancy Rate 94% 92% 90% 88% 86% 84% 82% 80% 78% 76% 22 Real Estate Center Market Overview 2005 Tyler, TX Tyler Market Overview 2005 Industrial Tyler City Industrial Building Permits Tyler City Building Permit Office 23 Real Estate Center Market Overview 2005 Tyler, TX This annual report is created free of charge by the Real Estate Center at Texas A&M University. We strive to provide the most accurate, up-to-date, and insightful data to paint a detailed picture of Texas’ Metropolitan Statistical Area’s. The Center also provides numerous publications, resources, and data on building permits, employment, population, and home sales at http://recenter.tamu.edu. Report compiled by: Administrative Coordinator Edith Craig Research Analysts Isilay Civan Blake Lacy Real Estate Center, 2115 TAMU, College Station, TX 77843-2115 Phone: 979.845.2031 | Fax: 979.845.0460 24