RETAIL MARKET SURVEY

2010 Retail Market Survey

The Retail Market Survey is an annual publication produced by Burns Commercial Properties. The Survey reviews the availability and demand all retail real estate in Tyler, TX Retail owners interested in acquiring operating space will find the survey an excellent tool for comparative research of lease rates and options. The survey can be downloaded by clicking the "download pdf" button below or can be viewed at the Burns Commercial Properties website.

OVERVIEW

Despite the downturn in the national economy, the Tyler retail market managed to post an improvement in the past twelve months. The annual survey canvassed forty six properties which contain a total of 2,456,352 square feet of space. The survey does not include the Broadway Square Mall or free standing retail and restaurant buildings.

According to the results, the occupancy rate increased from 89% one year ago to 91% in 2010. This is a strong turnaround as the 2009 rate showed a five percent decline from the previous year. The market had a positive absorption of 53,452 square feet, and the amount of vacant space declined to 220,607 square feet.

The average lease rate being quoted by Landlords was virtually unchanged from the previous year. This figure stands at $13.39, which represents the base rate. Typically, retail leases consist of a base rate plus pro-rata charges for common area maintenance, taxes, and insurance.

While several major chain store retailers closed stores in Tyler due to the bankruptcy of the chains, most of this space has now been leased. Additionally, several of the small centers which were constructed in 2008 have been successful in attracting tenants. These factors combined with a lack of new speculative space have resulted in a positive movement in the overall occupancy rate. Almost one half of the properties in the survey are reporting occupancy rates of ninety five percent or more, with seventeen centers enjoying one hundred percent occupancy.

The Tyler market has remained healthy due to a combination of a local economy which has not been as adversely affected by the recession as many larger cities and the fact that developers have not constructed a large amount of speculative retail space here in recent years. With the financing markets being tight, it is doubtful that a significant amount of retail lease space will be added to the inventory in the next twelve to eighteen months.

Thanks to all the property owners, leasing agents, and property managers who contributed the information which made this survey possible. Also thanks to Peggie Jenkins of the Burns Commercial Properties staff for assembling the information. Taylor Burns

Taylor Burns

File Format (Size) PDF (135 KB)