RETAIL MARKET SURVEY

2009 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

The occupancy rate for retail properties in Tyler has decreased from 94% to 89% in the past twelve months. According to the data compiled by Burns Commercial Properties in its annual survey, the annual lease rate being asked by Landlords went in the opposite direction, increasing from $13.14 per square foot in 2008 to $13.34 in the 2009 survey.

The survey gathered current data from forty five properties which contain a total of 2,444,754 square feet. This is an increase of three properties and 40,759 square feet from last year. The amount of vacant space available increased to 263,559, which is 115,160 square feet more than the amount available one year ago.

The numbers obtained in the study indicate that while Tyler has not been immune to the country’s economic slump, it is weathering the business dip much better than many cities. The occupancy rate is still at a high level when compared to historical figures. Fourteen of the forty five properties boast a one hundred percent occupancy level, while twenty centers are enjoying occupancy rates of ninety five percent or more. Only five of the retail properties quoted lease rates which are lower than last year’s numbers.

One reason the Tyler market is holding up well is due to the lack of construction of large retail centers containing a significant amount of speculative space in recent years. The centers constructed in the immediate past have tended to be very small, so the market has not been overbuilt. In the current economic and lending climate, it is doubtful that any large centers are likely to be constructed in Tyler in the immediate future.

The survey only focuses on multi-tenant properties and does not include free standing single tenant buildings or the Broadway Square Mall. A number of single tenant restaurant, financial, and retail buildings have been constructed in the past year, all of which are occupied. Additionally, Tyler continues to attract new hotel/motel projects. While many markets are experiencing alarming vacancy rates, Tyler continues to see construction of new small retail and restaurant facilities. The major focus for these buildings is in South Tyler, particularly along Old Jacksonville Road along with several on Troup Highway and South Broadway. The expected construction of a major new grocery store on Old Jacksonville Road is likely to spur increased retail interest along that corridor.

The health of the retail sector of the economy through the remainder of 2009 will determine the direction of the occupancy level and rental rates for the retail sector of the local real estate market. Barring a major downturn, it appears that the Tyler market is holding up well when compared to the remainder of the country.

Thanks to all the property owners, leasing agents, and property managers who contributed the data which makes this report possible. Thanks also to Peggie Jenkins of the Burns Commercial Properties staff for compiling it.

Taylor Burns

File Format (Size) PDF (205 KB)