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Jennifer S. CowleyAssistant Research Scientist
Mukta NaikGraduate Research Assistant
Texas A&M University
July 2001
© 2001, Real Estate Center. All rights reserved.
Real Estate Market Overview
Killeen-TempleReal Estate Market Overview
Killeen-Temple
Real Estate Market Overview
Killeen-Temple
Population
Employment
Job MarketMajor Industries
Business Climate
Transportation and Infrastructure Issues
Public FacilitiesEducation
Urban Growth Patterns
Map 1. Killeen Growth AreasMap 2. Temple Growth Areas
Housing
Multifamily
Manufactured HousingSeniors Housing
Retail MarketMap 3. Killeen Commercial Building Permits
Map 4. Temple Commercial Building Permits
Office MarketIndustrial Market
Conclusion
Contents
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5
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10
Real Estate Market Overview
Killeen-Temple
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20
1
Killeen
Harker Heights
Salado
Belton
Temple
Troy
Morgans PointInterstate 35
US 190
US 190
SH 36SH 317
Copperas Cove
Fort Hood
Jennifer S. CowleyAssistant Research Scientist
Mukta NaikGraduate Research Assistant
Real Estate Market Overview
Killeen-TempleReal Estate Market Overview
Killeen-Temple
CountiesBell
Coryell
Area Cities and Towns
The Killeen-Temple MetropolitanStatistical Area (MSA), locatedalong I-35 between Austin and
Dallas-Fort Worth, consists of two
counties. Killeen and Temple are lo-cated in Bell County while most of Ft.Hood is located in Coryell County. Ft.Hood, the largest active U.S. Army post
in the United States, is adjacent toKilleen. The military is a major influ-ence on the MSA’s economy.
BeltonCopperas Cove
GatesvilleHarker Heights
Killeen
Land Area of Killeen-TempleMSA
2,124 square miles
Population Density (2000)147 people per square mile
Morgans PointSaladoTemple
Troy
2
Kelly Air Force Base, San AntonioPOPULATION
Killeen-Temple MSA Population
Year Population
1990 255,7521991 251,0121992 254,9091993 268,9731994 288,1121995 291,0781996 294,6081997 295,2151998 296,9891999 296,3162000 312,952
*2000 figure is actual, others are estimatesSource: U.S. Census Bureau
County Population Growth
Growth 1990–2000County 2000 Population (in percent)
Bell 237,974 24.5Coryell 74,978 16.8
Area Cities With 10,000 or More Residents
Growth 1990–2000City 2000 Population (in percent)
Killeen 86,911 35.9Temple 54,514 11.9Copperas Cove 29,592 21.7Harker Heights 17,308 35.0Gatesville 15,591 30.5Belton 14,623 16.5
Source: U.S. Census Bureau
The Killeen-Temple MSA popula-tion had a 2.2 percent averageannual increase over the last de-
cade, equal to the growth rate of thestate as a whole.
The Texas State Data Center fore-casts the metro area will grow an aver-age of 1.8 percent per year over thenext 20 years. The Texas Water Devel-opment Board expects the MSA’s
Source: U.S. Census Bureau
population to grow 2.6 percent peryear through 2020.
3
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
Source: U.S. Census Bureau
Killeen-Temple MSAProjected Population
Texas State Texas WaterYear Data Center Development Board
2005 335,012 —
2010 365,592 394,555
2015 394,363 —
2020 424,248 457,928
Sources: Texas State Data Center and Texas Water Development Board
Projected Population Growth, 2000–2020(in percent)
Source: Texas State Data Center
35.6
40.2
32
34
36
38
40
42
Killeen-Temple Texas
4
Household Composition
Bell CoryellCounty County Texas
Median household size (1990) 2.7 2.9 2.7
Population younger than 18(1999, in percent) 28.9 27.7 28.5
Population 65 and older(1999, in percent) 8.8 5.9 10.1
Source: U.S. Census Bureau
Ethnic Distribution (in percent)
Bell County Coryell County TexasEthnicity 1990 2000 1990 2000 1990 2000
White 65.5 57.3 66.6 60.5 60.8 52.4Hispanic 11.8 16.7 8.2 12.6 25.3 32.0Black 19.2 19.9 21.6 21.3 11.7 11.3Asian 3.0 2.5 2.8 1.7 0.3 2.7American Indian 0.5 0.5 0.8 0.7 1.8 0.3Other 0.0 0.6 0.0 0.6 0.1 0.1Two or more races* — 2.5 — 2.6 — 1.1
*For the 2000 Census, the Census Bureau changed the “race” options, allowing people to report their race as“other” or as two or more races
Source: U.S. Census Bureau
Both counties in the Killeen-Temple MSA have a smallerportion of population age 65 and
older than the state as a whole. The av-erage per capita income in the Killeen-Temple MSA was $22,634 in 1999, ac-
cording to the U.S. Bureau of Eco-nomic Analysis. The state average was$26,834.
5
Killeen-Temple MSA Unemployment Rate(in percent)
Source: U.S. Bureau of Labor Statistics
Source: U.S. Bureau of Labor Statistics
EMPLOYMENT
Killeen-Temple MSA Employment
0
20,000
40,000
60,000
80,000
100,000
120,00019
90
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
0
2
4
6
8
10
12
Jan
uar
y-95
May
Sep
t
Jan
uar
y-96
May
Sep
t
Jan
uar
y-97
May
Sep
t
Jan
uar
y-98
May
Sep
t
Jan
uar
y-99
May
Sep
t
Jan
uar
y-00
May
Sep
t
Jan
uar
y-01
Killeen Temple
6
Ft. HoodMilitary42,322 employees
Scott & White HospitalHealth care6,000 employees
Killeen Independent School DistrictEducation4,200 employees
Central Texas Veterans’ Health Care SystemHealth care2,850 employees
Wilsonart InternationalLaminate and surfacing materials2,000 employees
McLane SouthwestDistribution center1,800 employees
ConvergysCall center1,400 employees
Temple Independent School DistrictEducation1,350 employees
Central Texas CollegeEducation1,100 employees
DynCorpCall center805 employees
Sources: Temple Economic Development Corporation and Killeen Chamber of Commerce
Top Ten Employers Top Ten Private Employers
Scott & White HospitalHealth care6,000 employees
Wilsonart InternationalLaminate and surfacing materials2,000 employees
McLane SouthwestDistribution center1,800 employees
ConvergysCall center1,400 employees
DynCorpCall center805 employees
Killeen MallRetail800 employees
P ACTIVContainers780 employees
Metroplex HospitalHealth care780 employees
Wal-Mart Distribution CenterDistribution750 employees
Texas HydraulicsHydraulic cylinders610 employees
Killeen-Employment Growth by Industry Temple MSA Texas
Employment growth, 2000 (in percent) 5.4 3.2Unemployment rate (in percent) 3.3 4.3New jobs in 2000 2,200 288,900Employment growth by sector (in percent)
Services 0.3 4.7 Trade 3.3 3.1 Manufacturing 2.1 0.1 Mining n/a 2.3 Finance, insurance and real estate 10.2 1.3 Construction 0.0 6.2 Government 0.0 1.7 Transportation, communications and public utilities 8.5 5.1
Sources: U.S. Bureau of Labor Statistics and Texas Workforce Commission
7
Nonagricultural employmentgrew 5.4 percent during 2000,compared with 1.2 percent in
1999. Total nonagricultural employ-ment for 2000 was 104,200, accordingto the Texas Workforce Commission.
The U.S. Bureau of Labor Statistics re-ports the area’s total civilian employ-ment to be 112,911 for 2000. Employ-ment in the area grew faster than in thestate as a whole for the decade of thenineties.
Unemployment in the area fell from3.5 percent in 1999 to 3.3 percent in2000. Military and health care are ma-jor employers in the area.
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
8
JOB MARKET
In Temple, Nextel Communicationsopened a call center in 2001 thatwill employ between 550 and 750
people. Maco Adhesives opened amanufacturing unit employing 17people, while LJT Texas expanded itswarehouses, adding 35 employees.Performance Food Groups created 300jobs. Temple Machining, a hydraulicequipment manufacturing unit, added10 jobs.
The Texas A&M Blackland ResearchCenter opened in 2000, employing136. The Veteran’s Administration
medical complex expansion projectadded 220 employees. The Wal-MartSupercenter added 150 employees.Temple-based Leading Edge Brandsplans to employ another five people inthe next two years. Best-Rite Manufac-turing expanded its production unitand will add 40 to 50 employees.
Private investment in Temple’sdowntown has created approximately175 jobs since 1998 through busi-nesses such as Nailworks, Nation’sPlan Insurance, In the Mood Ballroom
and Omega Homebuilders. TheTemple Towne Center, a retail facilityunder construction, is expected to em-ploy 300 people.
In Killeen, a new Burger King willemploy 50 people. A new Bennigansrestaurant is expected to bring 150 jobsto the area.
Service Merchandise closed as a re-sult of a nationwide shutdown. DesignComponents closed in Temple in Apriland moved to Mansfield, causing 16people to lose employment.
MAJOR INDUSTRIES
Services, government and tradeare the major employment sec-tors in the Killeen-Temple MSA.
These sectors represent 29 percent, 26percent and 23 percent of nonagricul-tural employment, respectively. Theservices sector added 100 jobs during2000. Trade added 800 jobs during
2000, largely through new retailers inthe area.
Government employment was un-changed in 2000. The government sec-tor is large because of Ft. Hood, whichaccounts for approximately 40 percentof the MSA employment. Civilian andmilitary payrolls total $1.5 billion
annually. The post’s total economicimpact on the area is $3.7 billionannually.
Construction employment was un-changed in 2000, while finance, insur-ance and real estate employmentadded 400 jobs.
9
Killeen-Temple MSA Retail Sales
Year Total Sales Sales per Capita
1990 $1,213,900,098 $4,7461991 1,272,003,803 5,0681992 1,433,332,685 5,6231993 1,586,184,091 5,8971994 1,975,742,022 6,8571995 2,599,968,741 8,9321996 3,027,601,147 10,2771997 2,189,215,952 7,4161998 2,178,438,433 7,3351999 3,576,784,519 12,0712000 4,169,302,190 13,322
State Average 2000 $12,612
Retail sales have steadily increasedin the area in the past decade.Ft. Hood personnel contribute
significantly to the area’s retail sales.The sales tax rate is 8.25 percentthroughout the area. Every city in theKilleen-Temple MSA assesses a 13 per-cent hotel-motel tax.
The area has several industrial parks.In Temple, the north and southeast in-
dustrial parks are part of the city’s en-terprise and tax reinvestment zone. TheTemple Reinvestment Zone was estab-lished in 1982 and will remain in effectuntil 2022. Taxes collected in the zoneare used for capital improvements inthe area.
Temple has created a new enterprisezone to attract businesses. The 9.38-square-mile EZ-3 enterprise zone will
offer incentives to businesses for sevenyears. It includes part of downtown,the southeast industrial area, AcerAmerica Co., the Nextel Communica-tion site and many others sites. Most ofthe area that was in the former EZ-2zone will be incorporated into the newzone. Incentives include permit feewaivers, tax abatements and taxrefunds.
BUSINESS CLIMATE
Tax Rates, 2000
Tax Rate per Tax Rate perTaxing Entity $100 Valuation Taxing Entity $100 Valuation
City of Killeen $0.68 City of Temple $0.59Killeen ISD 1.43 Temple ISD 1.65Community College 0.15 Community College 0.20Bell County 0.34 Bell County 0.34Total $2.60 Total $2.78
Sources: Bell and Coryell County Appraisal Districts
Source: Texas Comptroller’s Office
10
TRANSPORTATION AND INFRASTRUCTURE ISSUES
I-35 facilitates north-south transpor-tation through Temple and Belton.U.S. Highway 190 and State High-
ways 36, 53 and 195 also run throughTemple. U.S. Highway 190 and StateHighway 317 run through Belton.Killeen’s major highways include U.S.190 and State Highway 195. The city ofTemple is planning to construct a loopoutside of Loop 363. A Temple firm isunder contract to design the outerloop.
At Ft. Hood, a $32.5 million projectis under way to build a railroad trans-port system. The rail connection willbe to the Burlington Northern-Santa FeRailroad line. Seven buildings will beconstructed to house maintenance fa-cilities and a control tower. The systemwill help move military equipmentquickly during deployments.
The cities of Temple and Killeen arecooperating to operate a bus servicelinking the two cities. A pilot projectwas conducted in 2000.
The Killeen Municipal Airport hasservice to Dallas-Fort Worth Interna-tional Airport and George Bush Inter-continental Airport in Houston. Ameri-can Eagle, Atlantic Southeast andContinental Express provide service.
The City of Temple operates theDraughon-Miller Central Texas Re-gional Airport, a general aviation and
business airport with no commercialservice. The airport will receive $3.1million from the Texas Department ofPublic Safety for improvements to therunway, lighting and drainage.
The city is developing a master planfor the future development of the air-port. Construction began in January2001 on a $450,000 project for expan-sion and renovation of the terminalbuilding.
Ground was broken in October 2000on a new $50 million regional airportthat could open as early as 2004. Theairport will be located in Killeen at thesoutheast end of Robert Gray Army Air-field and will be shared with the Army.The City of Killeen will build a 70,000-square-foot terminal, fuel facilities, a$3.4 million, 3,700-square-foot airfieldtaxiway and 1,200 parking spaces.
The city has received $20 million instate and federal grants for the airportprojects and hopes to receive another$25 million from the federal MilitaryAirport Program. The city will issue$10 million worth of bonds to pay itsshare of the cost. In October 2000, thecity received an unexpected $3.3 mil-lion in federal transportation funds forconstruction of a taxiway apron, sitework and utility work.
Killeen, Temple and Belton receivewater from Lake Belton, which will
handle the area’s water needs through2050. Belton also receives water fromStillhouse Hollow Reservoir.
Municipal water use in Central Texasis expected to increase 54 percent by2050 and decline 34 percent for agri-cultural uses, according to the StateWater Plan. This is because groundwa-ter availability is not expected to meetirrigation needs. Bell County has cre-ated the Clearwater Underground Wa-ter Conservation District to deal withfuture water issues.
In approximately two years, Templewill need a new facility for sludge col-lection. Sludge is dirt collected by theclarifiers that clean water for consump-tion. One option would be to transportthe sludge to nearby landfills, thus in-creasing expenditures for labor andequipment. Temple is undertaking the$1.5 million Southeast Temple Waterand Sewer Project to run a sewer mainfrom Loop 363 to FM 117. The projectincludes a lift station.
Belton is acquiring a new sanitarysewer project costing $409,090 andfunded by a Community DevelopmentBlock Grant with participation fromBell County. Belton is also building a$750,000 booster pump station to in-crease water capacity.
Killeen Airline Boardings
1998 1999 2000
Killeen Municipal Airport 82,671 90,089 99,613
Source: Killeen Municipal Airport
11
PUBLIC FACILITIES
Killeen is constructing a 64,000-square-foot, $8.4 million con-vention center in hopes of
increasing tourism. The center isscheduled to open in March 2002.
Temple’s Park and Leisure servicesdedicated the Umpires’ Building inCalcite Park and dedicated the park it-self. The building has restrooms andshowers, and the park has play areasfor children. Temple opened Silver-stone Park in September 2000. Thefive-acre park has hiking trails, play-grounds and picnic areas. Design andconstruction of the park cost $210,000.
In downtown Temple, a $3.5 millionrevitalization effort is under way. Abandstand on the Santa Fe Depotgrounds opened in August 1999. Theold Woolworth building in Temple wasdemolished so that the site can beturned into parking and an outdoor
plaza with antique railroad cars and aveteran’s memorial.
The City of Temple is building a fa-cility to lease to the U.S. Department ofAgriculture, which currently leasesspace from the city in the Poage Build-ing in downtown Temple. The pro-posed 95,500-square-foot building istwo blocks from the Poage Buildingand will have a four-level, 320-spaceparking garage nearby.
Temple residents will get a glimpseof the revamped downtown when a“model block” is completed in 2001. Apark encompassing the restored SantaFe Depot is planned in downtownTemple and will feature the traindepot's historic theme. Temple plans aplaza and welcome center near thedepot.
The Arcadia Theater is being reno-vated in downtown Temple. The build-
ing was constructed in 1928 and hasbeen closed since 1978. An $80,000grant will be used for the renovation.
A $4.5 million building to house thecity’s operations and maintenance forthe public works, utilities, parks andpurchasing departments is under con-struction east of Loop 363.
The City of Belton is selling the Guffybuilding to Bell County for expansionof the Bell County Museum. The City ofHarker Heights plans a $2.3 million,27,000-square-foot municipal facilitythat will include city hall and a recre-ation center as well as a 35-acre park.The facility will open in spring 2002.
EDUCATION
Educational Level, Persons Age 25 and Older(in percent)
Level of Education Killeen-Temple MSA Texas
High school graduate 31.2 25.6Some college, no degree 24.8 21.1Associate’s degree 7.7 5.2Bachelor’s degree 10.7 13.9Graduate or professional degree 5.0 6.5
Source: U.S. Census Bureau, 1990
12
Local College and University Enrollment
Fall 2005 2010School 2000 (estimated) (estimated)
Tarleton University – Central Texas 7,545 n/a n/aCentral Texas College* 5,295 n/a n/aTemple College 3,405 3,689 4,041Mary Hardin-Baylor 2,566 n/a n/a
*Killeen Campus
Sources: Educational institutions and the Texas Higher Education Coordinating Board, January 2001
Tarleton University System Center–Central Texas opened in Killeenin fall 1999 after taking over the
now defunct University of Central Texas.The change brought lower tuition forstudents. One-third of the university’sstudents are pursuing master’s degrees.
Central Texas College offers techni-cal programs leading to an associate’sdegree or certification. Central TexasCollege offers a number of educationalprograms accommodating military per-sonnel, such as distance educationprograms for individuals away on activeduty. Central Texas College is buildingan $8.5 million, 64,000-square-foot,state-of-the-art planetarium and tech-nology complex. The first phase of theproject will be completed in fall 2002.
The University of Mary Hardin-Baylorstarted a master’s program in theologi-cal studies in fall 2000. Enrollment in-creases have prompted the universityto consider building more on-campus
housing. The Parker Academic Centerbroke ground in June 2001. The centerwill house the business and educationschools. The $4.5 million building isexpected to be completed by fall 2002.
Temple College built One CollegeCenter in 2000. The $2.5 million projecthouses admissions and records, finan-cial aid, counseling, a cashier’s officeand a student lounge. Computer labsare on the second floor. The collegeturned the former Alco Discount Storeinto the Cameron Educational Center.The 24,000-square-foot building servesas a branch of the college.
The Texas A&M University HealthScience Center includes third andfourth-year medical students from theTexas A&M University College ofMedicine. The center operates in Scott& White Memorial Hospital, CentralTexas Veterans Health Care Systemand Darnell Army Community Hospitalin Killeen.
Construction of the Texas A&M Uni-versity Health Science Center Collegeof Medicine medical research buildingin Temple was completed in March2000. The $12 million, 33,000-square-foot project is on Scott and WhiteMemorial Hospital’s main campus. Thecenter houses liver, cardiovascular andParkinson’s disease researchfacilities.
Temple ISD has an enrollment of8,700 students; Belton ISD, whichoverlaps with parts of Temple, has 6,600students. Killeen ISD has a total enroll-ment of 27,830 students and employsapproximately 4,150 people.
Belton ISD broke ground for a newintermediate school in 2000, after add-ing a new elementary school and a newhigh school leadership academy in the1999–2000 academic year. Killeen ISDis planning a new elementary school.
URBAN GROWTH PATTERNS
Maps 1 and 2 illustrate urbangrowth patterns in Killeenand Temple. Killeen is grow-
ing to the south and southeast out ofnecessity because it is bordered on thenorth and west by Ft. Hood and byHarker Heights on the south. Residen-tial growth is occurring in the south-
western section of the city. Most com-mercial growth is taking place alongStan Schlueter Loop and U.S. 190.Growth also is occurring in the indus-trial park.
Residential growth in Temple is oc-curring in the western and southwestern
sections of the city on the west portionof FM 2305 and south of 31st StreetSouth. Commercial growth has beenoccurring on the major roads along andsouth of Highway 363.
13
Map 2. Growth Areas
Source: Real Estate Center at Texas A&M University
Temple, TexasCensus PlaceInterstate HighwayHighway
I 35
SH 290SH 53
SH 36
SH 36
SH 363
Retail
Residential
Residential
Retail
Retail
HotelIndustrial
Office
MedicalOffice
SH 195
US 190
BUS 190
FM 439
Map 1. Growth Areas
Source: The Real Estate Center at Texas A&M University
Killeen, TexasCensus PlaceWater AreaHighway
Commercial
Office
OfficeRetail
Commercial
Commercial
SingleFamily
SingleFamily
13
14
HOUSING
Killeen-Temple MSA Single-family Permits(in units)
Source: U.S. Census Bureau
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
Housing Affordability – Fourth Quarter 2000
Percent ofHouseholds THAI for
That Can Afford First-timeMedian-priced Home THAI* Homebuyers
Killeen-Ft. Hood 76 1.75 1.59Temple-Belton 63 1.36 1.05
*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
15
Single-family Home Sales Volume, 2000
Source: Real Estate Center at Texas A&M University
Average Sales Price of Single-family Home,Killeen-Temple Area
Source: Real Estate Center at Texas A&M University
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
Temple-Belton Killeen-Fort Hood
0
50
100
150
200
250
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
Temple-Belton Killeen-Fort Hood
16
Price Distribution of MLS Homes Sold, 2000(in percent)
Source: Real Estate Center at Texas A&M University
Temple- Killeen-Belton Ft. Hood
Less than $60,000 23.0 30.460,000–79,999 18.5 32.180,000–99,999 19.8 17.7100,000–119,999 8.8 8.2120,000–139,999 9.4 5.0140,000–159,999 4.8 3.1160,000–179,999 4.9 1.7180,000–199,999 2.5 0.7200,000–249,999 3.6 0.8250,000–299,999 1.5 0.2300,000 or more 3.0 0.0
In 2000, a total of 1,399 single-familyhome permits were issued at anaverage value of $109,000 in the
MSA. In 1999, 1,264 single-familyhomes were permitted at an averagevalue of $99,300. In the first quarter of2001, 354 new homes were permitted.
The City of Killeen issued 811 single-family residential building permits in2000 and 252 in first quarter 2001. TheCity of Temple issued 216 single-fam-ily permits in 2000.
In Killeen-Ft. Hood, 1,836 homeswere reported sold through the MLSduring 1999; the number rose to 1,906in 2000. The average sales price rosefrom $76,700 to $78,200. During2000, there was a nine-month inven-tory of homes for sale.
In Temple-Belton, 1,046 homeswere reported sold through the MLS in1999 and 1,139 in 2000. The averagesales price rose from $99,200 to
$105,900. During 2000, there was a6.4-month inventory of homes for sale.
In Temple, Highland Terrace, atFowler Road and East Calhoun Av-enue, was dedicated by the TempleHousing Authority. A total of 91 homeswith approximately 1,200 square feeteach are being built on the site. TheTemple Housing Authority plans twosubdivisions for affordable housing.Heritage Addition will have nine lotsand Nugent Village will be a 20-lotsubdivision.
A number of new subdivisions havebeen created in the Temple area. TheOaks at Westwood has 44 lots. TheCrest has 46 lots and Westwood has57; both are located at Pearidge Rowand Hogan. Westridge phases eightand nine have 39 lots combined. A192-lot subdivision called Bentwood isplanned. The Campus at LakewoodRanch phases four and five will have
17 lots combined. Whistling Oaks willbe an eight-lot subdivision, while twolots have been permitted in the BunkerHill South Addition. Northcliffe phasesseven and eight will have eight lots inthe City of Temple and 37 lots in theextraterritorial jurisdiction. Most of thenew subdivision activity is occurring inwest Temple.
A total of 5,700 housing units will bebuilt at Ft. Hood by private contractors.The project could cost as much as$300 million.
In Killeen, most of the residentialsubdivisions are going up on the south-west side of the city. In 2000, new sub-divisions generated approximately2,000 lots. Subdivisions generally havefrom 100 to 300 lots each.
In Belton, a new subdivision calledRed Rock II is planned. It will have 156lots for homes costing between$100,000 and $300,000.
17
MULTIFAMILY
Killeen-Temple MSA Multifamily Building Permits(in units)
Source: U.S. Census Bureau
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,00019
80
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
Belton-Killeen-Temple Apartment Statistics, March 2001
Belton-Killeen- Texas MetroTemple Average
Average rent per square foot $0.63 $0.69Average rent for units built since 1990 $0.76 $0.95Average occupancy (in percent) 96.4 94.7Average occupancy for units built since 1990 (in percent) 97.4 92.3
Source: Apartment MarketData Research
Between May 2000 and March2001, apartment occupancyrates in the Belton-Killeen-
Temple area increased 0.2 percentagepoints overall and fell 0.3 percentagepoints for units built since 1990. Rentsincreased by one cent overall; the samewas true for units built since 1990.
In 2000, a total of 30 multifamilyunits were permitted in the MSA ac-cording to the U.S. Census Bureau.None were permitted in 1999. In first
quarter 2001, 16 new multifamily unitswere permitted.
The City of Killeen issued 62 permitsfor duplexes and 78 multifamily per-mits in 2000. In the first quarter of2001, 18 duplexes and 38 multifamilypermits were issued. In Temple, a num-ber of planned apartment projects willuse the low-income tax credit. RCIConstruction is building the $2.5 mil-lion Veranda Apartments with 88 units.The old Fawn Hotel in downtown
Temple may be redeveloped into mar-ket-rate apartments and some retail.
In Belton, Phase II of Turtle CreekVillage Apartments was permitted inlate 2000, adding 20 units to the devel-opment, which broke ground in 1998.The units are expected to be ready insummer 2001. Sixteen of the units willbe one-bedroom apartments, and fourwill be three-bedroom units.
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SENIORS HOUSING
The Temple Housing Authority isremodeling and adding 600square feet to the Friendship
House senior center. The project willcost between $70,000 and $90,000.
MANUFACTURED HOUSING
Killeen-Temple MSA Manufactured Home Sales
Proportion of NewManufactured Single-family HomesHomes Sold (in percent)
1997 766 39.51998 788 38.81999 683 35.12000* 418 29.5
*Through third quarter 2000
Source: Texas Manufactured Housing Association
Manufactured homes make upa significant portion of thesingle-family homes sold in
the Killeen-Temple area, a fact that canbe attributed to the large military popu-lation.
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FM 439
Map 3. Commercial Building Permits 2000
Source: City of Killeen Building Permit Office
Killeen, TexasCensus PlaceWater AreaHighway
� Commercial
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RETAIL MARKET
Hotel Occupancy and Rental Rates
1999 2000
Killeen-Temple Texas Killeen-Temple Texas
Occupancy rate (in percent) 71.0 64.1 72.9 65.7Average daily rental rate $52.26 $84.08 $54.80 $86.45
Source: PKF Consulting
Maps 3 and 4 show commercialbuilding permits issued during2000 in Killeen and Temple.
The Texas Restaurant Association fore-casts restaurant sales in Killeen-Templewill grow 5.3 percent during 2001 toreach $259 million. In 2000, restaurantsales grew 5.8 percent.
In Temple, Burger King and TacoBell opened in 2000. Burger King is onSouth Loop 363. In Killeen, a 4,000-square-foot Burger King is planned to
open in November 2001. A Bennigan’srestaurant is under construction alongCentral Texas Expressway and is ex-pected to open in summer 2001. ADomino’s Pizza is being built on Ft.Hood Street.
In Temple, a $900,000 Best WesternHotel was completed on GeneralBruce Drive in May 2001. In Killeen,Hampton Inn opened in July 2000 with62 rooms. A Holiday Inn was built in2000. Motel 6 built a hotel. Shoney’s
Inn & Suites opened in Killeen inMarch 2000. In Bellmead, a CountryInn and Suites was built in 2000.
In Killeen, an 86-room MarriottFairfield Inn & Suites began construc-tion in July 2001.
In Temple, a 276,000-square-foot re-tail center called Temple Towne Centeris under construction on Loop 363. Theproject is expected to cost $26 millionand will be anchored by Staples, RossDress for Less, Hobby Lobby and Shoe
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Map 4. Commercial Building Permits, 2000
Source: Temple Building Permit Office
Temple, TexasCensus PlaceHighway
� Industrial
� Office
� Retail
I 35
SH 290SH 53
SH 36
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SH 363
Carnival. The center is expected toopen by October 2001.
A 120,000-square-foot Wal-MartSupercenter with a Sam’s WholesaleClub opened in Temple in 2000. Thesupercenter cost $4.5 million. Acad-emy Sporting Goods opened a 70,000-square-foot store in Temple in 2000. Anew 100,000-square-foot retail centeris being built along Loop 363 and W.Adams Avenue. The anchor tenant willbe Albertsons and 15,000 square feetwill be available for other retailers andrestaurants. The center will open in2002. A Walgreens is under construc-tion south of Highway 190. H-E-Bopened a store in June 2001 on South31st Street in the Market Place Shop-ping Center.
Temple Mall is being updated by Co-lonial Properties in an effort to increaseoccupancy, currently 80 percent. Themall has been renamed Colonial Mall-Temple. Stein Mart opened in October2000. Other new tenants include CasaOle, Footlocker, Cingular Wireless,Sunglass Hut and Electronic Boutique.
The area around Marlandwood Roadis being considered by a number of de-
velopers for retail development. ThePatrick Mullens Company is develop-ing a $1.2 million, 22,000-square-foot,mixed-use retail center to be calledMarlandwood Central. Sears is relocat-ing from Temple Mall to a new sitenear Marlandwood Road on Loop 363.The 12,000-square-foot store will becompleted by May 2002.
A retail strip mall is being built onWest Avenue, and a meat market hasbeen permitted on Martin Luther KingDrive in central Temple. A 12-screen,$4 million movie theater will be builton 31st Street in Temple. Plaza 31 is a22,000-square-foot shopping centerthat will complete construction in fall2001 on 31st Street.
A child-care facility opened in No-vember 2000. Formerly the HarvestHouse Senior Center, the 11,000-square-foot center underwent a $1.1million renovation. It now has eightclassrooms, a computer lab, an outdoorplayground and many other facilities.
In downtown Temple, Cheeve’sBuilding, an old department store, isbeing redeveloped, and the TempleFloral Building is being remodeled into
an artist’s studio. Renovation of theDowntown Community Market will becompleted in 2001.
In Killeen, the new Killeen Market-place shopping center opened in early2001. Major tenants include Staples,Best Buy, Ross Dress for Less, South-western Bell, Eyemart and Jason’s Deli.A Discount Tire valued at $455,550 isunder construction along Central Ex-pressway. A Yes!Less grocery store wasbuilt in 2000 on Jasper Road, as was aretail strip mall.
Several car dealerships were built inKilleen. Mid-Tex Motors, Dennis EakinMazda, Enterprise Rent-A-Car, DodgeCountry and Patriot Pontiac have com-pleted new facilities. Many of the newdealers are building along the CentralTexas Expressway. Saturn of Templebuilt a new facility at FM 2305 and SWLoop 363 that opened in 2000.
In Belton, the River Oaks Centeropened in 2000. The $1.4 millionproject has seven tenants, includingBest Cuts, Take 1 Video, Kim Donutsand Nutritional Weight Loss Center.
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Office growth is occurring onthe northwest side of Temple.Nextel Communications, a
wireless telephone service provider,opened a 108,000-square-foot callcenter in early 2001. The company willeventually employ about 550 people.A corporate office building is beingbuilt for Temple-based Leading EdgeBrands, a soft drink maker. The$324,000, 5,100-square-foot buildingis on Industrial Boulevard and will becompleted in June 2001.
Texas A&M University completedthe $1 million, 125,000-square-footBlackland Research Center. Three newoffice buildings are under constructionin northwest Temple along EberhardRoad, on West Avenue and on EastAvenue.
More than $8 million has been in-vested to revitalize downtown Temple.The latest addition is a 75,000-square-foot office building planned for Roam-ing, Parker and Kasberg, an engineer-ing firm. The building will be ondowntown’s model block, where im-provements and renovations are sched-uled to be completed in 2001. A six-story, 19,000-square-foot building isbeing redeveloped downtown to beused as office space.
A $6.5 million Scott and White Cen-ter for Cancer Prevention and Careopened in Killeen in January 2001. A$200,000 dental office is under con-struction in Killeen.
A Veterans’ Administration nursinghome has been built on South First
OFFICE MARKET
Street in Temple at a cost of $100 mil-lion. The U.S. Congress passed a billthat will provide $11.5 million to builda Cardiovascular Research Institute atthe Olin E. Teague Veterans’ Center inTemple. Construction of the 35,000-square-foot building will be completedin December 2002.
The Stan Schlueter Loop is a popularlocation for office construction inKilleen with several new buildings un-der construction.
Scott & White Memorial Hospitalplans to construct a $22 million ambu-latory services building. The 61,000-square-foot building breaks ground insummer 2001 with completion in early2003.
INDUSTRIAL MARKET
Best-Rite Manufacturing hasadded 48,000 square feet to itsexisting facility in the Southeast
Industrial Park. Performance FoodGroup completed a 245,000-square-foot warehouse and distribution facil-ity. Macco adhesives completed a13,500-square-foot manufacturingunit.
Duke Energy has plans to build apower plant that could be operationalby summer 2002. Peterbilt Trucks is
building a parts and sales warehouse inTemple. LJT Texas will expand itswarehouse by 47,000 square feet. Thesteel tubing manufacturer is spending$1 million on the expansion that beganin January 2000. Wal-Mart is undergo-ing a $9.2 million expansion that willadd 94,000 square feet of cold storagespace.
Belton has developed a new busi-ness park. The Development Corpora-tion of Belton is building a 40,000-
square-foot speculative building in thepark. Belton is negotiating for aClearSource franchise, which wouldprovide cable television, telephoneand Internet facilities through fiber-optic networks. The company plans toacquire 5.3 acres valued at $159,000in the Belton Business Park and buildan 18,000-square-foot operations cen-ter as well as offices in Killeen andTemple.
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CONCLUSION
701-25-1495
The Killeen-Temple MSA contin-ues to grow because of its prox-imity to major Texas cities and
its location along I-35. Ft. Hood has atremendous impact on the area’s em-ployment, population and economy.
Because of efforts made by the citycouncil and citizens, downtown
Temple has seen an influx of new busi-nesses. Downtown revitalization is ex-pected to continue.
Both Temple and Killeen have newindustrial and business development.
Retailers and restaurants also havebeen moving into the area. The addi-tion of a new airport will aid the area’scontinuing growth.
