Jennifer S. Cowley · stays, San Angelo is a hub of economic activity for 13 surrounding counties. ... economic impact of $246 million. Texas Metropolitan Area Employment Change,

Jennifer S. CowleyAssistant Research Scientist

Texas A&M University

July 2001

© 2001, Real Estate Center. All rights reserved.

Real Estate Market Overview

San AngeloReal Estate Market Overview

San Angelo


San Angelo

Population

Employment

Job MarketMajor Industries

Business Climate

Transportation and Infrastructure IssuesPublic Facilities

Urban Growth PatternsMap 1. Growth Areas

Education

Housing

Multifamily

Manufactured HousingSeniors Housing

Retail Market

Map 2. Retail Building PermitsOffice Market

Map 3. Office and Industrial Building Permits

Industrial MarketConclusion

Contents

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San Angelo

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San Angelo

US 87

SH 306

US 67

US 277

Jennifer S. CowleyAssistant Research Scientist


San AngeloReal Estate Market Overview

San Angelo

Land Area of San Angelo MSA1,542 square miles

Population Density (2000)67 people per square mile

Area Cities and TownsCarlsbad

San AngeloTankersleyVancourt

WallWater Valley

CountyTom Green

The San Angelo Metropolitan Sta-tistical Area (MSA), located inthe Concho Valley of west cen-

tral Texas, lies between the Texas HillCountry to the southeast and the roll-ing plains to the northwest. San

Angelo was founded in 1867 as FortConcho in an effort to protect citizensand provide a medical center duringtuberculosis outbreaks. Today, be-cause of its strong health care, agricul-tural, educational and military main-

stays, San Angelo is a hub of economicactivity for 13 surrounding counties.The area is well known for its history ofsheep and goat production, whichadds more than $47.5 million to theeconomy each year.

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Kelly Air Force Base, San AntonioPOPULATION

San Angelo MSA Population

Year Population

1990 98,2571991 97,9231992 99,1071993 99,6611994 100,7761995 101,0771996 101,7891997 102,2851998 102,6851999 102,3002000 104,010

Source: U.S. Census Bureau

The San Angelo area populationgrew an average 0.5 percenteach year between 1990 and

2000. The area recorded a slight popu-lation decline during 1999 but re-bounded in 2000. Currently, morethan 100,000 people live in TomGreen County.

The City of San Angelo had a popu-lation of 88,439 for 2000, a 4.7 per-cent increase over 1990, according tothe U.S. Census Bureau. San Angelowas the 28th fastest growing city inTexas in 2000.

The San Angelo MSA has grown at aslower rate than the state as a whole

over the past ten years. The metropoli-tan area is expected to continue togrow at a moderate rate, averaging 1percent per year through 2020. TheTexas Water Development Board fore-casts a faster growth rate of 2 percentper year through 2020.

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

McAllen-Edinburg-Mission 48.5 Galveston-Texas City 15.1Austin-San Marcos 48.2 Tyler 15.5Laredo 44.9 El Paso 14.9Dallas 31.5 Corpus Christi 14.3Brownsville-Harlingen-San Benito 28.9 Victoria 13.1Brazoria County 26.1 Waco 12.9Houston 25.8 Texarkana 9.4Fort Worth-Arlington 25.1 Lubbock 9.0Bryan-College Station 25.1 Wichita Falls 7.8Texas 22.8 Longview-Marshall 7.7Killeen-Temple 22.6 Beaumont-Port Arthur 6.6San Antonio 20.2 Abilene 5.8Sherman-Denison 16.4 San Angelo 5.6Amarillo 16.2 Odessa-Midland 5.1


San Angelo MSA Projected Population

Texas State Texas WaterYear Data Center Development Board

2005 114,816 —

2010 120,239 130,224

2015 124,239 —

2020 127,679 144,696

Sources: Texas State Data Center and Texas Water Development Board

Projected Population Growth, 2000–2015(in percent)

Source: Texas State Data Center

19.3

40.2

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San Angelo MSA Texas

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Household Composition

San Angelo MSA Texas

Median household size (1990) 2.7 2.7

Population younger than 18(1999, in percent) 27.3 28.5

Population 65 and older(1999, in percent) 13.4 10.1


Ethnic Distribution(in percent)

San Angelo MSA TexasEthnicity 1990 2000 1990 2000

White 68.7 62.9 60.8 52.4Hispanic 25.9 30.7 25.3 32.0Black 4.0 4.0 11.7 11.3Asian 1.0 0.9 0.3 2.7American Indian 0.3 0.4 1.8 0.3Other 0.1 0.1 0.1 0.2Two or more races* _ 1.0 _ 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.


Hispanics were the fastest grow-ing minority group in TomGreen County between 1990

and 2000. The MSA’s ethnicity changes

follow trends found across the state.Residents of the San Angelo MSA hada $23,453 per capita personal income

in 1999 compared with the state aver-age of $26,834, according to the U.S.Bureau of Economic Analysis.

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San Angelo MSA Unemployment Rate(in percent)

Source: U.S. Bureau of Labor Statistics

Source: U.S. Bureau of Labor Statistics

EMPLOYMENT

San Angelo MSA Employment

40,000

42,000

44,000

46,000

48,000

50,000

52,00019

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Employment Growth by Industry San Angelo MSA Texas

Employment growth, 2000 (in percent) 0.9 3.2Unemployment rate (in percent) 3.2 4.2New jobs in 2000 400 288,900Employment growth by sector (in percent)

Services 0.8 4.7 Trade 1.0 3.1 Manufacturing -2.1 0.1 Mining 33.3 2.3 Finance, insurance and real estate 0.0 1.3 Construction 4.5 6.2 Government 2.2 1.7 Transportation, communications and public utilities -3.6 5.1

Sources: U.S. Bureau of Labor Statistics and Texas Workforce Commission

Bergstrom Air Force Base, Austin

Top Ten Employers Top Ten Private Employers

Sources: San Angelo Chamber of Commerce

Goodfellow Air Force BaseMilitary4,064 employees

San Angelo Independent School DistrictEducation2,184 employees

VerizonCommunications1,515 employees

Shannon Health SystemsHealth care1,397 employees

Ethicon (Johnson & Johnson)Medical supplies1,300 employees

Angelo State UniversityEducation1,044 employees

City of San AngeloGovernment1,000 employees

SITEL, Inc.Telemarketing980 employees

Community Medical CenterHealth care700 employees

San Angelo State SchoolEducation695 employees

VerizonCommunications1,515 employees

Shannon Health SystemsHealth care1,397 employees

Ethicon (Johnson & Johnson)Medical supplies1,300 employees

SITEL, Inc.Telemarketing980 employees

Community Medical CenterHealth care700 employees

Shannon ClinicHealth care500 employees

Blue Cross–Blue Shield of TexasCustomer service center435 employees

Hirschfield Steel Co.Fabricated structural steel400 employees

West Texas Medical AssociatesHealth care356 employees

Reece AlbertRoad construction330 employees

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The total number of people em-ployed in the San Angelo arearose between 1990 and 2000. In

2000, total nonagricultural employ-ment was 43,900, up 0.9 percent from1999, according to the Texas WorkforceCommission. The U.S. Bureau of LaborStatistics estimates civilian employ-ment at 48,234 — up 0.5 percent from1999. During 1999, area employmenthad dropped because three majormanufacturing operations — Levi

Strauss, Western Iron Works and SafeCare — had ceased operation.

Total employment has grown 10.7percent since 1990, a rate slower thanthe state as a whole. The 2000 averageunemployment rate in the San Angeloarea was 3.2 percent, down 1.1 per-centage points from 1999.

The military has a strong presence inSan Angelo. Goodfellow Air ForceBase, the largest employer in the SanAngelo area, is a consolidated location

for Air Force intelligence training andfire and rescue training for the Army,Air Force and Marines.

In 1998, Goodfellow had 9,312training wing graduates. Base housinghas been improved, a student loungehas been added and an $8.6 milliondorm renovation took place in 1999.Goodfellow has an estimated annualeconomic impact of $246 million.

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

Austin-San Marcos 58.8 El Paso 15.4Laredo 40.3 Waco 14.3McAllen-Edinburg-Mission 35.8 Lubbock 14.0Dallas 30.4 Sherman-Denison 12.5Brownsville-Harlingen-San Benito 30.1 Longview-Marshall 12.2Bryan-College Station 29.2 Abilene 11.4Killeen-Temple 28.7 San Angelo 10.7San Antonio 28.6 Corpus Christi 10.3Fort Worth-Arlington 23.7 Galveston-Texas City 8.2Texas 23.3 Wichita Falls 7.8Tyler 22.9 Odessa-Midland 6.5Victoria 22.4 Texarkana 4.5Houston 22.1 Beaumont-Port Arthur 3.5Amarillo 18.6 Brazoria County 2.3

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

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MAJOR INDUSTRIES

San Angelo has a diversified eco-nomic base. Services and trademake up the largest portion of the

nonagricultural workforce. Servicesrepresent 26 percent of the workforceand added 100 jobs between 1999 and2000. Trade makes up 23 percent ofemployment and also added 100 jobs.

Government represented 22 percentof area employment in 2000, up 200jobs from the previous year. Construc-tion employment was up 100 jobs.

Manufacturing represents 11 percentof the area’s employment but lost 100jobs during 2000. Transportation,communications and public utilitiesrepresents 7 percent of area employ-

ment. Mining gained 200 jobs duringthe past year, in part because of re-bounding oil prices. Mining represents2 percent of area employment.

Tom Green County’s agriculturalsector is changing. According to the1997 Census of Agriculture, land infarms decreased 6 percent from 1.03million acres in 1992 to 959,000 acresin 1997. In addition, the number offull-time farms decreased 13 percentfrom 472 in 1992 to 412 in 1997. Themarket value of agricultural productssold, however, increased 9 percent to$85.9 million in 1997.

Cotton generates 28 percent of agri-cultural receipts. Beef, the second larg-

JOB MARKET

BlueCross-BlueShield opened itsHMO claims processing andcustomer service departments in

San Angelo and now employs morethan 400. Logicon, a software develop-ment company located on the AngeloState University (ASU) campus,opened in 2000. The company initiallyhired 20 people but plans to grow us-ing graduates from ASU. Watt and

Stewart, a mining equipment manufac-turer, opened in 2000 and employsten.

American Halal Meat Processorsplans to open in 2001 in the formerMonfort Meat Packing building andwill initially employ 100, with plans toeventually employ 400. Ranchers’Lamb opened in February 2001.Monfort Packing opened in April

est agricultural product, accounts for27 percent. Goats and sheep generated19 percent of the area’s 1997–2000agricultural receipts, according to theTexas Agricultural Extension Service.For 2001, agricultural receipts are ex-pected to total $50.2 million, downfrom $52.8 million in 2000.

San Angelo is well known for its roleas a major sheep and goat market. TheProducer’s Livestock Auction Com-pany, the nation’s largest auction forsheep and second largest livestockauction in Texas, holds auctions twicea week.

2000. The goat processing facility willcreate 400 jobs over five years.

Lone Star Beef has continued togrow since it opened in 1997. Thecompany sells meat to fast food chainsacross the nation.

Steller Industries plans to open a hottub manufacturing facility during2001, initially employing 60.

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BUSINESS CLIMATE

Tax Rates, 2000

Tom Green County Tax Rate perTaxing Entity $100 Valuation

City of San Angelo $0.87San Angelo ISD 1.51Tom Green County 0.48Total $2.86

Source: Tom Green CountyAppraisal District

San Angelo MSA Retail Sales

Year Total Sales Sales per Capita

1990 $639,747,737 $6,5111991 673,152,216 6,8741992 741,687,918 7,4841993 836,041,013 8,3891994 857,326,041 8,5071995 966,348,992 9,5611996 955,081,879 9,3831997 924,261,299 9,0361998 980,378,456 9,5471999 1,156,781,610 11,3082000 1,269,934,238 12,210

State Average 2000 $12,612

Source: Texas Comptroller’s Office

Retail sales per capita in the SanAngelo area are slightly lowerthan for the state as a whole.

The sales tax rate in San Angelo is 8.25percent. The hotel-motel tax rate is 13percent.

Tourism brought $74 million into theSan Angelo economy during 1998.The city has an abundance of natureand cultural-heritage tourism. Thearea’s three lakes — Lake Nasworthy,

the O.C. Fisher Reservoir and TwinButtes Lake — draw tourists, as dotours of several area ranches.

San Angelo State Park has numerousnature exhibits, including dinosaurtracks and a longhorn cattle herd. FortConcho is America’s best-preservedfrontier fort. Block One, San Angelo’sfirst street, has a historical theme andincludes an old general store and sev-eral sidewalk stores. San Angelo’s

Hilton Hotel was the fourth hotel builtby Conrad Hilton. No longer a hotel,the historic building is open for tours.

In January 1999, a half-cent sales taxwas added and dedicated to two majorprojects: dredging Lake Nasworthyand the construction of an arena. The$11 million Lake Nasworthy projectwill improve the city’s water supplyand recreational facilities.

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TRANSPORTATION AND INFRASTRUCTURE ISSUES

San Angelo has access to U.S. 277,U.S. 67, U.S. 87, Texas Highway208 and Texas Highway 306.

South Orient Line is the rail carrierserving the area. Kerrville Bus Linesand Sunset States provide service to allmajor Texas cities. Concho Coachesprovides van service to and from theMidland-Odessa area.

San Angelo Regional Airport servesthe area with carriers American Eagleand Continental Express. AmericanEagle provides service to Dallas-FortWorth International Airport, and Con-tinental Express provides service toHouston.

The airport is making improvementsfor the U.S. Customs Service in an ef-fort to keep the service in San Angelo.The Federal Aviation Administration

provided the airport $500,000 to up-grade facilities.

At Mathis Field, a new aircraft res-cue and firefighting station is underconstruction and will replace the exist-ing structure.

San Angelo receives its water fromthe Twin Buttes Reservoir and theColorado River Municipal Water Dis-trict. An extra 186,000 acre-feet of wa-ter was added to the city’s supply byacquiring approximately 16.5 percentof the O.H. Ivie Reservoir.

A pipeline is under construction tobring water from the O.H. Ivie and E.V.Spence reservoirs. The project is ex-pected to cost $2.2 million. The pipe-line will carry 27 million gallons of wa-ter per day and was expected to becompleted by June 2001.

The city signed a contract with theUpper Colorado River Authority to usewater from the O.C. Fisher Reservoir in2000. In return, the city will pay$480,000 for watershed projects.

An undeveloped well field exists inMcCulloch County. Presently, con-flicts with the Hickory UndergroundWater Conservation District have pre-vented transferring water outside of thedistrict. The existing and planned wa-ter supply sources will adequatelyhandle San Angelo’s demand until2050.

The City of San Angelo is increasingthe average water bill by 60 cents toraise $4 million annually to help addresswater issues in San Angelo. This will alsoprovide funds to replace deterioratingwater lines over a six-year period.

San Angelo Airline Boardings

1997 1998 1999 2000

San Angelo Regional Airport 43,387 43,126 41,639 50,493

Sources: San Angelo Regional Airport

PUBLIC FACILITIES

Groundbreaking on the $4.9 mil-lion Spur Arena occurred inJanuary 2001. The 83,370-

square-foot facility has a 45,000-square-foot dirt floor and an accompa-nying 38,304-square-foot barn. Theproject will be completed by February2002, in time to host the San AngeloStock Show and Rodeo.

The City of San Angelo is building aCrash Fire Rescue and FirefightingStation on Knickerbocker Road. The$1.2 million facility broke ground inNovember 2000.

The Tom Green County Justice Cen-ter was completed in early 2001. Theexpansion included the addition of192 beds and administrative offices.The second phase will begin this yearand will include renovations on the ex-isting jail facility and will take six toeight months to complete. Phase IIIwill include the installation of court-room facilities.

Tom Green County is planning anexpansion of the county library. The

Edd B. Keyes Building will be ex-panded for the addition.

Goodfellow AFB broke ground inMarch 2000 on a 176-bed dormitory.The 50,000-square-foot facility is ex-pected to be completed in fall 2001 ata cost of $8.9 million.

The San Angelo YMCA plans tobuild a 43,140-square-foot buildingalong the Concho River near ParkDrive. The building will cost $4.76million to construct.

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SH 306US 67

US 87Map 1. Growth Areas

Source: Real Estate Center at Texas A&M University

San Angelo, TexasCensus PlaceWater AreaHighway

SH 208

US 277

US 87

Retail

Retail

Retail

Residential

URBAN GROWTH PATTERNS

Map 1 indicates San Angelo’sgrowth areas. Strong retailgrowth is occurring along

Sherwood Way, which runs northeastto southwest through the city. Residen-tial growth is expanding in east San

Angelo. Downtown is expanding andadding a new museum.

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EDUCATION

Fall 2005 2010School 2000 (estimated) (estimated)

Angelo State University 6,309 6,417 6,377

Howard College 952 2,210 2,180

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

ASU renovated the HoustonHarte University Center. The$10 million project was com-

pleted in summer 2000 and includes aconference center.

The Junnell Center at Jackson Streetand Varsity Lane will be completed infall 2001. The $20.1 million multipur-pose facility will house the StephensArena and athletic offices. Once theJunell Center opens, the Physical Edu-cation Building will be renamed theCenter for Human Performance.

A new intramural complex willbreak ground during summer 2001 andwill open in October 2001. The$390,000 project will include outdoor

playing fields and parking. The projectis located on South Jackson Street onthe ASU campus.

A new minor league baseball sta-dium was completed between theJunnell Center and the alumni center atASU. The San Angelo Colts’ startedtheir season in the new stadium in May2000.

During 1999, the Texas State Uni-versity System leased the Levi Straussbuilding for use as the West TexasTraining Center. The center will serveas a vocational training center and willbe operated by a consortium consist-ing of ASU, Howard College and theSan Angelo Independent School Dis-

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

Level of Education San Angelo MSA Texas

High school graduate 27.0 25.6Some college, no degree 22.2 21.1Associate’s degree 4.8 5.2Bachelor’s degree 12.1 13.9Graduate or professional degree 4.9 6.5


Local College and University Enrollment

trict. The facility will not be com-pletely operational until 2005 but be-gan offering its first classes in January2001.

San Angelo Independent School Dis-trict will spend $18 million in 2001 onseveral projects. New tennis courtsand landscaping will be added at Lin-coln Junior High. Bradford Elementarywill receive new offices. Newrestrooms will be added at San AngeloStadium.

Lake View High School was rebuiltin 2000 after the previous high schoolburned. The $13 million building wascompleted in May 2001.

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San Angelo MSA Single-family Permits


HOUSING

Housing Affordability – Fourth Quarter 2000

Percent ofHouseholds THAI for

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

San Angelo MSA 69 1.58 1.27

*The THAI is the ratio of median household income to the income required to buy the median-priced home using currentlyavailable mortgage financing. Standard financing is a 30-year loan covering 80 percent of the cost of the home. A THAI of1.00 indicates that the median household income is just enough to qualify for a loan sufficient to purchase the median-priced home.


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Single-family Home Sales Volume, San Angelo MLS



Average Sales Price of Single-family Home,San Angelo Area

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Price Distribution of MLS Homes Sold in San Angelo(in percent)


Price Range 1997 1998 1999 2000

Less than $60,000 45.3 38.6 35.0 34.360,000 – 79,999 22.8 21.7 22.8 23.280,000 – 99,999 13.5 20.6 18.4 17.3100,000 – 119,999 6.3 6.5 9.2 9.1120,000 – 139,999 4.8 3.9 5.3 6.2140,000 - 159,999 2.8 2.2 3.3 3.3160,000 – 179,999 1.4 2.0 2.1 2.2180,000 – 199,999 1.0 1.6 1.7 0.6200,000 – 249,999 1.0 1.6 1.2 2.4250,000 – 299,999 0.6 0.4 0.4 0.5

300,000 and more 0.4 0.8 0.5 0.8

According to Stribling-ProbantAppraisers, most of the single-family lot development in the

MSA occurred in southwest and westSan Angelo in 2000. There are a totalof 23 active subdivisions.

MSA new home construction de-creased from 267 homes permitted in1999 to 239 homes in 2000. At thesame time, the average value of a newhome increased to $120,800 from$105,900. In the first quarter of 2001,

74 new homes were permitted, ac-cording to the U.S. Census Bureau.

Within San Angelo 244 new homeswere constructed in 2000, down from275 in 1999, according to the City ofSan Angelo.

The average sales price for all MLS-listed homes increased to $83,800 in2000, an increase of $2,700 from the1999 figure. The total number ofhomes sold was 1,122, down slightlyfrom 1,133 in 1999. During 2000, the

San Angelo area had a 6.9-month in-ventory of existing homes for sale.

A $100 million golf course develop-ment has been proposed on 800 acreson Rio Concho Drive. Other activesubdivisions in San Angelo includeTwin Oaks, Country Club Lake Estates,Sunset Ranch Estates and Paul AnnWest Additions. In Tom Green County,The Oaks North subdivision southwestof Christoval will have 70 lots rangingin size from 2.5 to 100 acres.

Plats in San Angelo

Subdivision Location Acreage

Inside City LimitsSan Angelo Gateway Addition FM Hwy 308 and Route 306 406.7Lakeside Ranch Knickerbocker and South Orient Railroad 92.9Ellison Estates, Section 2 Loop 306 and Oak Grove Blvd 22.8Lake Nasworthy Addition, Shady Point Loop 306 and Turtle Drive 66.5 Group Section 1 and 2Windstone Park Addition, Section 1 Concho River and Loop 306 26.6Red Arroyo Hills Addition, Section 5 Sherwood Way 15.5Southland Park Addition, Section 1 Southland and Knickerbocker 15.0Lake Nasworthy Addition, Group Middle Jaycee Road and FD Road 8.8 Concho, Section 1

Outside of City LimitsJR Country Estates Blumentritt and Loop 306 14.5

Source: City of San Angelo

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MULTIFAMILY

San Angelo MSA Multifamily Building Permits(in units)


San Angelo Apartment Statistics, December 2000

San Angelo Texas Metro Average

Average rent per square foot $0.55 $0.75Average rent for units built since 1990 $0.58 $0.96Average occupancy (in percent) 93.3 95.7Average occupancy for units built since 1990 (in percent) 92.4 95.4

Source: Apartment MarketData Research

Occupancy rates for multifamilyhousing were unchanged be-tween 1999 and 2000, while

the average rental rate rose one cent.Occupancy rates for 2000 were at 83.1

percent, according to the San AngeloApartment Association. In 1999 and2000, no new apartments were permit-ted. In the first quarter of 2001, no newmultifamily units were permitted.

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A new 192-unit affordable apart-ment complex is planned just south ofthe Concho River, bordered by SurberDrive and Baker Street.

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MANUFACTURED HOUSING

San Angelo MSA Manufactured Home Sales

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

1997 133 40.91998 178 43.61999 187 41.22000* 104 35.0

*Through third quarter 2000Source: Texas Manufactured Housing Association

SENIORS HOUSING

Sagecrest Alzheimer’s Care Centeropened in November 2000. The50-bed facility is located adja-

cent to the Baptist Memorial Center on

Main Street. The $3.6 million projectwas designed with two sections, onefor early-stage and the other for late-stage Alzheimer's care. The City of San

Angelo will expand a seniors center,adding 13,750 square feet. Construc-tion is expected to begin in July 2001on the $1.12 million project.

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Retail Property Statistics

1997 1998 1999 2000

Total space surveyed 761,165 612,496 645,493 605,493

Occupancy rate (in percent) 89 86 91 91

Rental rates (per square foot) $6-$8 $6-$8 $6-$8 $6-$8

Source: Stribling-Probandt Appraisals

RETAIL MARKET

Hotel Occupancy and Rental Rates

1999 2000San Angelo Texas San Angelo Texas

Occupancy rate (in percent) 62.8 64.1 67.8 65.7

Average daily rental rate $46.79 $84.08 $50.21 $86.45

Source: PKF Consulting

No new multitenant shoppingcenters were constructed in2000, but big box and restau-

rants were under construction, accord-ing to Stribling-Probant Appraisals.Rental rates for speculative space re-main at $6 to $8 per square foot, triplenet. Smaller space may rent for as highas $8.50 per square foot. Larger retailspace rents for $4 to $6. Self Storageunits are 91 percent occupied for2001. See Map 2 for retail buildingpermits issued in San Angelo in 2000.

Restaurant sales are expected to in-crease 1.7 percent during 2001 to$114.6 million. Luby’s began con-

struction on a $1.1 million restauranton Southwest Boulevard in April 2000.Logan’s Roadhouse broke ground inJune 2000 on a restaurant on SherwoodWay. A new Subway is under con-struction on North Bryant Boulevard.La Scala opened in 2000 on SouthBryant Boulevard. Papa Enrique’sopened on Pulliam Street in 2000.Angelo Pizza Factory on HowardStreet closed in January 2001.

A three-story, 80-room HawthorneSuites broke ground in December2000. The $2.5 million hotel is locatedon Knickerbocker Road. Town andCountry Food is constructing a grocery

store. Two self-storage facilities are un-der construction, one on MockingbirdLane and the second on Bell Street.

A new baseball stadium was built in2000 to house the San Angelo Colts.The $2.5 million project seats 4,000and includes the Hard Ball Café . TheSpur Arena, which will host roping androdeo events, opened in spring 2001.

A new $800,000 shopping center isbeing developed downtown at ConchoAvenue and Oakes Street. ConchoCrossing shopping center has 17,000square feet with 12 shops and wascompleted in spring 2001.

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SH 306US 67

US 87

US 87

Map 2. Retail Building Permits, 2000

Source: City of San Angelo Building Permit Office


� Retail

SH 208

US 277

OFFICE MARKET

Class A office occupancy re-mained stable over the last yearat 98 percent. Class B occu-

pancy declined from 75 to 66 percentwith the addition of two Class B build-

ings. These buildings were large andhave low occupancy levels. The dropin Class B occupancy resulted in anoverall decline in occupancy of 10percent. Additionally, the consolida-

tion of state offices into a new buildingleft many smaller buildings with va-cancies. See Map 3 for office and in-dustrial building permits issued in SanAngelo during 2000.

Office Property Statistics

1998 1999 2000 2001

Total space surveyed 347,172 264,917 264,917 334,275Occupancy rate (in percent) 83 94 90 80Rental rates (per square foot) Class A $8.50–$12 Class B $6–$8.50

Source: Stribling-Probandt Appraisals

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�

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SH 306US 67

US 87

US 87

Map 3. Office and Industrial Building Permits, 2000

Source: City of San Angelo Building Permit Office


� Office

� Industrial

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US 277

No new multitenant office buildingswere constructed in 2000. There hasbeen new construction of owner-occu-pied or primarily owner-occupied of-fice buildings.

Shannon Health System is planningto make $30 million worth of techno-logical upgrades and clinic renovations.

The Monarch Tile building near FortConcho is being remodeled for stateoffices. Currently, 49,000 square feetare occupied. This figure is expected to

increase to 65,000 square feet by2001.

The old JCPenney Building down-town was renovated at a cost of$600,000 and reopened in spring2000. Myer Drug will use 7,000square feet on the lower floor, and theupper floor will be used as privateoffices.

The Old Trust Building is being reno-vated into office space. The first officeswere available by the end of 2000.

Tom Green County 4-H has con-structed a 14,000-square-foot facilityon U.S. 67/277. The facility includes ameeting room for 350 and feeding andholding pens for show animals. Con-struction was completed in spring 2001.

San Angelo Funland opened in July2001. The amusement park is locatedat the former Neff's Amusement Park.

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CONCLUSION

701-25-1488

San Angelo offers residents a lowcost of living, educational oppor-tunities and quality health-care

centers. The area has a growing popu-lation and has posted positive employ-ment figures for the past decade.

San Angelo’s primary retail andcommercial growth has been along

Sherwood Way. Strong residentialgrowth has occurred in south SanAngelo.

The area has a diversified economicbase. The top employers in the area arein the services and trade sectors, public

employment and manufacturing. Theexpansion of the meat processing in-dustry and the arrival of BlueCross-BlueShield are creating new jobs in thearea.

INDUSTRIAL MARKET

Bollman Industries is renovatingits 15,000-square-foot wool pro-cessing plant. An additional

3,750 square feet will be added during2001. Project cost is $700,000 andwill include new equipment.

The San Angelo Business and Indus-trial Center is a proposed 400-acre in-dustrial park. Construction on the parkis expected to start during summer2001. The City of San Angelo Devel-

opment Corporation will spend$850,000 for planned infrastructureimprovements.

American Halal Meat Processingwill locate in the former Monfort MeatPacking building. The company willprepare goat meat according to Islamiclaw so it can be sold for consumptionby Muslims. The company expects toprimarily export the product to Europe,

Asia and the Middle East. The plantwill initially employ 100 and plans toeventually employ 400.

Ranchers’ Lamb opened a new fabri-cation plant in February 2001. The10,000-square-foot building cost $2million and is connected to the exist-ing building on City Farm Road. Theproject is expected to increase the de-mand for lamb processing.

Documents

Jennifer S. Cowley · stays, San Angelo is a hub of economic activity for 13 surrounding counties. ... economic impact of $246 million. Texas Metropolitan Area Employment Change,