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TYLEROFFICEMARKETSURVEYFall-2018
TheannualBurnsCommercialPropertiesOfficeMarketSurveyindicatesthatthetrendsofthepastfewyearsarecontinuingintheofficesector.ThesurveyconsistsofdataobtainedfromLandlordsandLeasingAgentsforfiftyninebuildingsintheTylermarket.Thesepropertiescontainatotalof2,319,898squarefeet.Thedatashowsthatinexcessoftwentyninepercentofthespaceisvacant,withthetotalvacancystandingat467,067squarefeet.Thisisthelargestamountofvacantspaceeverrecordedinthetwentyyearsthesurveyhasbeenconducted.Theoccupancyratestandsat78.61%,downslightlyfrom79.8%in2017.Thedowntownsectorhasaoccupancyrateof74.5%,whilebuildingslocatedinsouthTylerareoccupiedatalevelof82.7%.Onaverage,Landlordsarequotingaleaserateof$15.86persquarefootperyear.Thisisupfromthe2017level,whichwas$14.42persquarefoot.Inspiteofthefactthatthevacancyrateforofficespaceremainshigh,thesupplycontinuestoincrease.TheincreaseappearstoprimarilybetheresultofsmallofficebuildingswhichhavebeenbuiltinthesouthernportionsofTylerbydevelopers.Thisisonetrendcontributingtotheoversupplyinthemarket.Othertrendsincludethefactthattechnologyandautomationhaveresultedinadecreaseintheamountofofficespacebeingutilizedperemployee.AccordingtoarecentstudybycommercialrealestatefirmAvisonYoung,thetypicalofficeuserhadanaverageof225squarefeetofworkspacein2010.Todaythatfigurehasdecreasedto151squarefeetperperson,anditispredictedthatby2020,theaverageofficespacewillbe120squarefeet.Thisisnotagoodtrendforofficelandlords.Additionally,anewstudybytheWorldEconomicForumresultedinapredictionthattheshareofworkplacetasksperformedbymachineswillincreasefromthepresentrateof29%to52%bytheyear2025.Thesetrendswillresultinadecreasingneedforofficespace.
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Alookbackatthe2008officemarketsurveyrevealsthatthereweretwobuildingsinTylerwhichhadmorethan10,000squarefeetofcontiguousspaceavailable.Thisyear’sstudyshowsthateightbuildingshavethismuchcontiguousspaceforlease.In2008,theclassAbuildingsboastedanoccupancyrateof93.8%.Todaythisfigurestandsat78.1%.Theoccupancyratefordowntownbuildingsstoodat89.2%in2008,versus74.5%in2018.TheincreaseintheamountofvacantspaceavailableinTyleroverthistenyearperiodis258,376squarefeet.WhiletheTylereconomyisstillingoodcondition,andothersectorsofcommercialrealestatearedoingwell,theofficesectorisinalongtermdecline.Largeofficeusersareflockingtosomeofthebigmetroareasofthestate,butnottothesecondarymarkets.OfficerentsinmarketssuchasAustinandthenorthernportionsoftheDFWmetroplexareinexcessofthirtydollarspersquarefoot,makingthelocalrateslooklikebargains.Unfortunately,theratedifferentialhasthusfarnotbeentemptingenoughtopersuadelargecompaniestomovetoTyler.Locallandlordscanonlyhopethatthistrendwillreverseitselfinthefuture,andthatdevelopers(andtheirlenders)willdosomemarketresearchpriortomakingthedecisiontoconstructadditionalofficebuildings.Thankstothebuildingownersandleasingagentswhocontributedthedataforthisreport,andtoRebeccaHittoftheBurnsCommercialPropertiesstaffforcompilingtheinformation.
TaylorBurns
Total Office Market Statistics
Number of Buildings: 59
Total Square Feet: 2,319,898Total Vacant Square Feet: 467,067Overall Occupancy Rate: 78.61%Average Annual Rental Rate Per SF: $15.86
Tyler CBD (Downtown) Office Market Statistics
Number of Buildings: 15
Total Square Feet: 801,984Total Vacant Square Feet: 204,115Occupancy Rate: 74.5%Average Annual Rental Rate Per SF: $14.72
Tyler Suburban (South Tyler) Office Market Statistics
Number of Buildings: 44
Total Square Feet: 1,517,914Total Vacant Square Feet: 262,952Occupancy Rate: 82.7%Average Annual Rental Rate Per SF: $17.01
Office Market SurveyPresented by Burns Commercial Properties
Tyler, TX - Fall 2018
Class A
Number of Buildings: 17
Total Square Feet: 1,009,596Total Vacant Square Feet: 246,551Occupancy Rate: 78.1%Average Annual Rental Rate Per SF: $18.58
Class B
Number of Buildings: 30
Total Square Feet: 1,070,062Total Vacant Square Feet: 169,744Occupancy Rate: 85.6%Average Annual Rental Rate Per SF: $14.94
Class C
Number of Buildings: 12
Total Square Feet: 240,240Total Vacant Square Feet: 50,772Occupancy Rate: 77.6%Average Annual Rental Rate Per SF: $13.09
Office Market SurveyPresented by Burns Commercial Properties
Tyler, TX - Fall 2018
7
8
9
10
11
12
13
14
15
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
$14.33
$11.61
$11.36
88%
$11.81
$12.10$12.26
$12.87
$13.36$13.44
$14.21
$14.51$14.44
$14.76
$15.24 $15.12
85.4%
2017
$14.42
86%86%86%87%89%87%90%90%88%86%90%89% 79.84%84.9%
2018
$15.86
78.61%
Central Business District(Downtown)
Office Market SurveyPresented by Burns Commercial Properties
Tyler, TX - Fall 2018
Property ContactNumber of
FloorsCurrent
Occupancy
CAM Add-On Factor
Expense Stop
Building Class
122 South College Bldg122 S. CollegeWhitehurst & Smith
Bill Whitehurst(903) 595-0470 7,000 SF 2 0% 7,000 SF 7,000 SF $10.00
(Negotiable) /SF N/A N/A C
200 Broadway Center (KLTV)105 W. FergusonTV-3, Inc
Taylor BurnsBurns Commercial Properties
(903) 534-120054,904 SF 4 51% 26,818 SF 16,313 SF $13.00 /SF N/A Base
Year B
210 South Broadway Building210 S. Broadway AveBroadway Rusty Nail, Ltd
Andy BergfeldBergfeld Realty(903) 592-1032
13,357 SF 2 100% 0 SF 0 SF $13.50 /SF 15.0% Base Year B
320 South Broadway Building320 S. Broadway AveMetro Asset Management, LLC
Andy BergfeldBergfeld Realty(903) 592-1032
19,202 SF 2 100% 0 SF 0 SF $13.50 /SF 5.0% Base Year B
777 Building777 S. BroadwayBroadway Hope LLC
Hagan BakerDrake Real Estate(903) 581-3737
8,522 SF 2 66% 2,906 SF 1,572 SF $11.00 /SF N/A N/A C
Austin Bank Building305 S. BroadwayBriarwood Group, Ltd
Martin HeinesReal Estate Services
(903) 593-236735,841 SF 12 85% 5,500 SF 1,250 SF $12.00 /SF N/A None C
Blackstone Building315 N. BroadwayTyler Chamber of Commerce
Allen BellAllen Bell Property Services
(903) 595-280526,620 SF 6 99% 260 SF 260 SF $13.00 /SF 20.9% $6.68 B
Energy Center, The719 W. FrontBriarwood Group, Ltd
Martin HeinesReal Estate Services
(903) 593-236741,560 SF 3 93% 3,000 SF 500 SF $12.00 /SF N/A None C
Fair Investment Building121 S. BroadwayInvest in Tyler, LLC
Hagan BakerDrake Real Estate(903) 581-3737
44,392 SF 8 52% 21,289 SF 6,397 SF $12.00 /SF N/A Base Year C
First Place100 E. FergusonCrest Properties, Ltd
Allen BellAllen Bell Property Services
(903) 595-2805187,387 SF 12 86% 26,818 SF 16,313 SF $16.00 -
$18.00 /SF 10.8% $9.72 A
Fountain Square401 E. FrontBriarwood Group, Ltd
Martin HeinesReal Estate Services
(903) 593-236729,484 SF 2 81% 5,500 SF 1,200 SF $11.00 /SF N/A None C
Total Size Annual Base RentCurrent Vacant
Largest Contiguous Available
Central Business District(Downtown)
Office Market SurveyPresented by Burns Commercial Properties
Tyler, TX - Fall 2018
Property ContactNumber of
FloorsCurrent
Occupancy
CAM Add-On Factor
Expense Stop
Building ClassTotal Size Annual Base RentCurrent Vacant
Largest Contiguous Available
People's Petroleum Building102 N. CollegePeople's Petroleum Building, LLC
Andy BergfeldBergfeld Realty(903) 592-1032
76,305 SF 15 97% 1,981 SF 1,981 SF $19.00 /SF N/A Base Year A
Plaza Tower110 N. College AveThe Genecov Group
Andy BergfeldBergfeld Realty(903) 592-1032
209,264 SF 19 54% 96,820 SF 12,085 SF $17.00 /SF 8.0% Base Year A
Tyler Office Center120 S. BroadwayIndividual
Art MullanSignature Management, Inc
(903) 526-088017,000 SF 2 71% 4,900 SF 3,000 SF $10.50 /SF N/A None B
Wadel-Connally112 E. Line St.BSGJ1, LLC
Allen BellAllen Bell Property Services
(903) 595-280531,146 SF 3 96% 1,323 SF 1,252 SF $13.00 -
$16.00 /SF 17.3% $5.33 B
TOTAL/AVERAGES: 801,984 75% SF204,115 $14.72 /SFSF
Suburban District
Office Market SurveyPresented by Burns Commercial Properties
Tyler, TX - Fall 2018
Property ContactNumber of
FloorsCurrent
Occupancy
CAM Add-On Factor
Expense Stop
Building Class
Alpha Centre3200 Troup HwyAberfeldy, Ltd
Russell PattersonPatterson Commercial Property
(903) 597-180045,632 SF 3 89% 5,230 SF 4,207 SF $14.00 /SF 20.0% Base Year B
Asher Park1042, 1043, 1058 Asher WayAsher Park, LLC
Hagan BakerDrake Real Estate(903) 581-3737
18,000 SF 1 8% 16,500 SF 8,000 SF $18.00 - $22.00 /SF N/A N/A A
Atelier Office Buildings3800 Old Bullard RdHarbor Properties
Carrie JohnsonHarbor Properties
(888) 792-030813,960 SF 1 100% 0 SF 0 SF $14.72 /SF N/A $6.68 B
Atriums1820 Shiloh RdAberfeldy, Ltd
Russell PattersonPatterson Commercial Property
(903) 597-180039,086 SF 1 85% 5,713 SF 2,375 SF $13.00 /SF 15.0% Base Year B
Bullard Rd Square5604 Old Bullard RdHarbor Properties
Carrie JohnsonHarbor Properties
(888) 792-030814,114 SF 1 100% 0 SF 0 SF $15.00 /SF N/A $5.33 C
Broadway Commons8288 S. BroadwayAndres Alarcon
Robert MeansInvestment & Real Estate
Services(903) 594-8880
16,000 SF 1 100% 0 SF 0 SF $16.00 /SF N/A N/A B
Broadway Hills Plaza7925 S. BroadwayCHB Interests, LLC
Hagan BakerDrake Real Estate(903) 581-3737
30,446 SF 2 76% 7,302 SF 3,463 SF $16.00 /SF N/A N/A A
Colonial, The5935 Old Bullard RdHarbor Properties
Carrie JohnsonHarbor Properties
(888) 792-030810,300 SF 1 100% 0 SF 0 SF $14.00 /SF N/A N/A B
Commerce Square3334 SSW Loop 323Wynne Interests
James Wynne, IIICommerce Square Corp.
(903) 509-979573,165 SF 1 100% 0 SF 0 SF $12.10 /SF N/A None B
Copeland Point6115 New Copeland Rd Copeland Point, LLC
Hagan BakerDrake Real Estate(903) 581-3737
27,360 SF 1 58% 11,400 SF 4,560 SF $18.50 /SF N/A N/A A
Corporate Green Office Park5751-5767 Eagles Nest BlvdPhil Burks
Matthew MarshallDrake Real Estate(903) 581-3737
19,945 SF 1 95% 1,080 SF 1,080 SF $16.50 /SF N/A N/A A
Total Size Current Vacant
Largest Contiguous Available Annual Base Rent
Suburban District
Office Market SurveyPresented by Burns Commercial Properties
Tyler, TX - Fall 2018
Property ContactNumber of
FloorsCurrent
Occupancy
CAM Add-On Factor
Expense Stop
Building ClassTotal Size Current Vacant
Largest Contiguous Available Annual Base Rent
Grande Centre6101 S. BroadwayDavid A. Lake
Taylor BurnsBurns Commercial Properties
(903) 534-120090,704 SF 5 62% 34,544 SF 18,383 SF $16.00 /SF 12.2% $6.68 A
Grande Plaza212 Grande BlvdPyle Properties
Brad DonleyPyle Properties(903) 509-8161
57,500 SF 1 85% 8,889 SF 7,679 SF Negotiable /SF N/A N/A B
Heartland Financial Center501 Shelley DrHibbs Financial
Brig NorthHeartland SIG
(903) 266-564758,578 SF 2 54% 26,818 SF 16,313 SF $15.00 /SF 15.0% Base Year A
Highlands Office2624 KensingtonBob Matush
Bob Matush(903) 561-7287 7,730 SF 1 93% 527 SF 527 SF $14.00 /SF N/A None C
Hollytree Professional Park6760-6770 Old Jacksonville Hwy
Cole IhrigPatterson Commercial Property
(903) 597-180020,314 SF 1 100% 0 SF 0 SF $15.50 /SF 0.0% $5.35 A
Independence Center100 IndependenceThe Genecov Group
Don SimmonsSimmons Real Estate
(903) 581-585854,337 SF 4 93% 3,927 SF 1,742 SF $14.00 /SF 13.7% Base Year B
Jordan Plaza104-115 Jordan Plaza BlvdVerian Investments, LP
Brian BurksLandbridge Commercial
(903) 561-952740,000 SF 1 100% 0 SF 0 SF $11.00 /SF $3.75 $6.68 B
Kinsey Plaza1420 WSW Loop 323ETX Tyler Properties
Marc IvyBridgewater Realty
(903) 881-317126,592 SF 1 88% 3,156 SF 3,156 SF $12.00 /SF NNN N/A B
Oakglen Office Building5620 Old Bullard RdHarbor Properties
Carrie JohnsonHarbor Properties
(888) 792-030814,463 SF 1 90% 1,408 SF 1,408 SF $15.00 /SF 15.0% Base Year B
Oak Leaf Building5528 Old Bullard RdHarbor Properties
Carrie JohnsonHarbor Properties
(888) 792-030812,360 SF 1 100% 0 SF 0 SF $14.00 /SF N/A $2.75 C
Oak Plaza Building*3300,3304, & 3310 S. BroadwayRoosth Properties* 3 buildings with 2 floors each
Dan SpiveyRoosth Properties
(903) 593-833359,610 SF 6 55% 26,818 SF 16,313 SF $16.00 /SF 13.5% $6.04 B
Suburban District
Office Market SurveyPresented by Burns Commercial Properties
Tyler, TX - Fall 2018
Property ContactNumber of
FloorsCurrent
Occupancy
CAM Add-On Factor
Expense Stop
Building ClassTotal Size Current Vacant
Largest Contiguous Available Annual Base Rent
Off Broadway II2301 S. Broadway AveNolan Manziel
Nolan Manziel(903) 592-4315 22,990 SF 1 0% 22,990 SF 22,990 SF Negotiable /SF N/A N/A B
Omega Building, The1901 Rickety Ln
Russell Patterson & Cole IhrigPatterson Commercial Property
(903) 597-180011,400 SF 1 75% 2,850 SF 659 SF $13.00 /SF 15.0% N/A C
One American Center909 ESE Loop 323Mesa Loans of Athens, LP
Taylor BurnsBurns Commercial Properties
(903) 534-1200113,708 SF 7 84% 18,545 SF 7,744 SF $17.50 -
$18.00 /SF N/A Base Year A
Paluxy Square3800 Paluxy DrThe Genecov Group
Aaron UncapherBurns Commercial Properties
(903) 534-120078,642 SF 1 81% 15,045 SF 3,403 SF $14.50 /SF N/A Base Year B
Pruitt Place Offices1007 & 1011 Pruitt Place
Cole IhrigPatterson Commercial Property
(903) 597-18007,556 SF 1 100% 0 SF 0 SF $15.50 /SF 0.0% $5.46 A
Pruitt Place Offices1014 Pruitt Place
Cole IhrigPatterson Commercial Property
(903) 597-18003,671 SF 1 100% 0 SF 0 SF $16.00 /SF 0.0% $4.38 A
Pruitt Place Offices 1015 Pruitt Place
Cole IhrigPatterson Commercial Property
(903) 597-18009,837 SF 1 54% 4,483 SF 2,256 SF $15.50 /SF 0.0% $4.38 A
Regions Bank Building1000 WSW Loop 323WSW Loop Partners, LLC
Taylor BurnsBurns Commercial Properties
(903) 534-120012,367 SF 1 100% 0 SF 0 SF $15.50 /SF N/A Base Year B
Scottish HighlandsTroup Hwy & KensingtonThe Genecov Group
Glenn EiknerBurns Commercial Properties
(903) 534-120032,847 SF 1 76% 7,935 SF 2,765 SF $12.50 /SF $1.14 Base Year B
Shiloh Office Park921 Shiloh RdAberfeldy, Ltd
Russell PattersonPatterson Commercial Property
(903) 597-180022,131 SF 1 73% 6,056 SF 6,056 SF $13.50 /SF N/A Base Year B
Southeast Center3301 Troup HwyRoosth Properties
Dan SpiveyRoosth Properties
(903) 593-833338,757 SF 4 99% 260 SF 260 SF $16.00 -
$18.00 /SF 13.5% $6.68 A
Suburban District
Office Market SurveyPresented by Burns Commercial Properties
Tyler, TX - Fall 2018
Property ContactNumber of
FloorsCurrent
Occupancy
CAM Add-On Factor
Expense Stop
Building ClassTotal Size Current Vacant
Largest Contiguous Available Annual Base Rent
Southgate Office Park722 WSW Loop 323The Genecov Group
Mark WhatleyBurns Commercial Properties
(903) 534-120011,893 SF 1 100% 0 SF 0 SF $15.00 /SF N/A Base Year B
Southpark Centre1828 ESE Loop 323Negem Investments, LLC
Glenn EiknerBurns Commercial Properties
(903) 534-120048,309 SF 3.5 100% 0 SF 0 SF $15.50 -
$17.00 /SF N/A $6.68 B
Southside Office Building1324 S. BeckhamPollard-Heines Buildings, LLC
Martin HeinesReal Estate Services
(903) 593-236715,837 SF 1 86% 2,200 SF 700 SF $12.00 /SF N/A None C
Threlkeld Building515 WSW Loop 323
Don Robert JohnsonTrust Property Management
(903)581-656015,929 SF 2 100% 0 SF 0 SF $15.00 /SF N/A N/A B
Trails Office Park, The5433 Donnybrook AveSAVB, LLC
Hagan BakerDrake Real Estate(903) 581-3737
3,747 SF 1 100% 0 0 SF $17.00 /SF N/A N/A A
Two American Center821 ESE Loop 323Aberfeldy, Ltd
Russell PattersonPatterson Commercial Property
(903) 597-180094,017 SF 5 100% 0 SF 0 SF $17.00 -
$19.00 /SF 16.0% Base Year A
Woodgate Centre1001 ESE Loop 323Woodgate Centre, LLC
Glenn EiknerBurns Commercial Properties
(903) 534-120095,507 SF 4 100% 0 SF 0 SF $16.50 /SF $6.33 $5.33 B
Woodgate I1121 ESE Loop 323
Brian BurksLandbridge Commercial
(903) 561-952732,776 SF 1 90% 3,438 SF 1,569 SF $14.50 /SF N/A $6.00 B
Woodgate II1021 ESE Loop 323Flowers Davis,PLLC
Russell PattersonPatterson Commercial Property
(903) 597-180033,040 SF 1 95% 1,501 SF 1,501 SF $14.50 /SF N/A Base Year B
Woodgate IV1101 ESE Loop 323Copeland Gate, LLC
Don Robert JohnsonTrust Property Management
(903)581-656050,757 SF 1 52% 24,337 SF 24,337 SF $13.50 /SF N/A $6.68 B
Winchester Office Complex211-215 Winchester DrHarbor Properties
Carrie JohnsonHarbor Properties
(888) 792-030812,000 SF 1 100% 0 SF 0 SF $13.00 /SF N/A N/A C
Suburban District
Office Market SurveyPresented by Burns Commercial Properties
Tyler, TX - Fall 2018
Property ContactNumber of
FloorsCurrent
Occupancy
CAM Add-On Factor
Expense Stop
Building ClassTotal Size Current Vacant
Largest Contiguous Available Annual Base Rent
TOTAL/AVERAGES: 1,517,914 83% SF262,952 $17.01 /SFSF
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